Lee Hyeong-seok, 75, remembers when the national pension scheme was first introduced back in late 1980s as a state-backed insurance plan for post-retirement life. He and his friends, then in their early 40s, were initially unconvinced. At that time, bank savings carried interest rates of well over 10 percent. What’s the point in chipping in a handsome amount of one’s monthly salary to the fledgling pension fund? But persistent persuasion by a National Pension Service official led

Economy Nov. 28, 2021

The ratio of South Korea’s household debt in comparison to its economy has become the highest among major economies, a report showed Monday, sparking concerns over its impact on an already sluggish consumption and the nation’s fiscal soundness. Asia’s fourth-largest economy was the only country that saw its household debt exceeding its gross domestic product among the 37 countries reviewed by the US-based Institute of International Finance. Debt grew at one of the fastest pace

Economy Nov. 15, 2021

In a studio decorated with colorful mascot dolls, NH NongHyup Bank CEO Kwon Joon-hak, who leads South Korea’s fifth-largest commercial bank, on Tuesday made his YouTube live debut. Co-hosting the one-hour event with a comedian, Kwon ditched the image of an unapproachable corporate representative, and transformed into a “guy next door” making jokes with customers online. “I’m a little nervous but will do my best to have a great time with our customers participating

Market Nov. 11, 2021

South Korea is expected to see its national debt grow at the fastest clip relative to the size of the economy among major countries, while its growth rate of potential output per capita will fall to the near-zero range without policy changes, according to economic reports Monday. Sparking concerns over a further loss of momentum for the country’s economy, the International Monetary Fund estimated that Korea’s general government gross debt to gross domestic product would increase t

Economy Nov. 8, 2021

The US Federal Reserve’s decision to dial back its bond-purchasing program in November will have a limited impact on the Korean financial market, the Korean government said Thursday while vowing to monitor market uncertainties surrounding the inflation outlook in the US. As widely expected, the Federal Open Market Committee, the US Fed’s monetary policymaking body, announced that it would reduce its bond purchases by a total of $15 billion a month starting in November. It left it

Economy Nov. 4, 2021

The South Korean government will make a fresh attempt to get its stock market included in the top grade of global market indices, the country’s top economic policymaker told global investors Tuesday. Considering the global status and recognition of the Korean economy by foreign investors, it is “justifiable” for the Korea equity market to be upgraded to “developed” status from current “emerging” status by New York-based index provider Morgan Stanley C

Market Nov. 2, 2021

Shinhan Financial Group said Monday that it has signed a deal to acquire BNP Paribas Cardif’s non-life-insurance subsidiary in South Korea in a bid to diversify its business portfolio to include the digital insurance sector. Through the share purchase agreement inked Friday, the Korean banking group will hold a 94.54 percent stake in BNP Paribas Cardif General Insurance, a firm that BNP Paribas Cardif and Shinhan Life jointly established in 2014. The transaction price was not disclosed,

Market Nov. 1, 2021

TAEAN, South Chungcheong Province -- Just before sunup, Lee Young-ho, a seasoned fisherman with over 30 years of experience, silently waits for boats carrying blue crabs as the season for the seafood reaches its height. Soon afterward, small and big boats sail into Sinjin Port in Taean County, South Chungcheong Province, the second-largest source of blue crab after Incheon, accounting for 29 percent of total production of the country. A crane lifts 28 boxes filled with blue crabs weighing 40

Travel Oct. 30, 2021

The government will slash fuel taxes by 20 percent and cut tariffs on liquid natural gas to near zero in November for six months to fend off inflationary pressure further building up with rising energy prices. According to the Ministry of Economy and Finance, taxes on gasoline, diesel and liquefied petroleum gas will be cut by 20 percent starting Nov. 12, marking the highest tax cut in history. The temporary cut will end in April, the ministry said after a meeting with the ruling party. Autho

Economy Oct. 26, 2021

Bank stocks in South Korea have long been regarded as an unappealing option for investors, but analysts say it may be their time to shine as the economy makes progress toward normalization and interest rates are no longer at record lows. The country’s big four banking groups -- KB Financial, Hana Financial, Shinhan Financial and Woori Financial -- are expected to see their combined profits grow by double digits in the quarter that ended in September, according to FnGuide, a financial inf

Market Oct. 24, 2021

Despite policymakers’ assurance of home prices having reached their peak, the government appears to have set tax revenue on a scenario of housing values rising further next year. Rep. Yoo Gyeong-joon of the main opposition People Power Party on Thursday, quoting a state-funded study, said that the government’s tax revenue next year has been drafted based on its own estimation of housing prices in Seoul and the surrounding area growing 5.1 percent, According to the study conducted

Economy Oct. 21, 2021

The implementation of the new global digital tax regime will lead to a small increase in tax revenue for the South Korean government, the country’s finance minister said Thursday. The two-pillar tax proposal on taxing the digital economy and ushering in a global minimum tax rate, spearheaded by the Organization for Economic Cooperation and Development, was endorsed by 136 countries Friday. Pillar one aims to reallocate some tax revenue from where multinationals post profit to where the

Economy Oct. 14, 2021

The government raised $1.3 billion by selling foreign exchange stabilization bonds at the second-lowest-ever rates despite heightened uncertainties in the global financial markets, the Finance Ministry said Thursday. It sold US dollar-denominated bonds worth $500 million with a maturity of 10 years to yield 1.769 percent, 25 basis points more than US Treasurys and five-year euro-denominated bonds worth 700 million euros ($809 million) with a negative yield of 0.053 percent. The bonds were iss

Economy Oct. 7, 2021

Shinhan Financial Group said Wednesday it has decided to invest 18 billion won ($15.1 million) into three startups offering cutting-edge technologies as part of its bigger plan to boost the group’s digital capabilities. Three startups that attracted the funding include Galaxy Corp. which owns intellectual property rights to virtual characters for metaverse platforms as well as Xinapse, an artificial intelligence technology-based startup. Shinhan plans to collaborate with the firms to e

Market Oct. 6, 2021

Finance Minister Hong Nam-ki came under fire during a parliamentary inspection on Tuesday for failing to stop the relentless rise in housing prices despite dozens of policy measures implemented in recent months. To address the nationwide outcry over soaring housing prices, the Moon Jae-in administration has introduced 26 sets of real estate policies. The latest centered on raising taxes on owners of multiple homes and rooting out property speculation. But there are signs these policies may ba

Economy Oct. 5, 2021