The Korea Times

Senior living: Next frontier in Korea's silver economy

Korea’s population is aging faster than almost anywhere else in the developed world. More than 1 in 5 — around 11.25 million people — are now aged 65 or older, a demographic shift that is expected to propel the country’s silver economy from 72 trillion won in 2020 to 168 trillion won by 2030. Yet one corner of that economy remains strikingly underdeveloped: senior living. Unlike nursing homes, which are designed primarily around long-term clinical care, senior living communities combine housing with hospitality, wellness and social engagement. “Residents are customers choosing a lifestyle rather than patients receiving care,” said Josh Rose-Nokes, head of Asia Pacific living research at Cushman & Wakefield. While countries like Australia and Japan have built more mature senior living sectors supported by experienced operators and deep pools of institutional capital, Korea is still in the early stages of developing the asset class. “On penetration, independent senior housing and retirement living provision in Korea sit at a fraction of 1 percent of the older population, again

Jul 28, 2026By Park Han-sol

Economy

Banks push back against proposed no-fault compensation for voice phishing victims

The government is pressing ahead with plans to introduce a no-fault compensation scheme that would require banks and other financial firms to reimburse victims of voice phishing scams regardless of whether they were at fault, despite mounting industry opposition, according to officials Sunday. Banks argue the measure unfairly holds them liable for crimes they neither have the authority nor the means to investigate, warning that the additional costs could ultimately be borne by consumers through higher fees or less favorable lending rates. Financial Services Commission Chairman Lee Eog-weon reaffirmed the government’s commitment to the initiative at a meeting last month with the heads of Korea's five largest financial groups — KB, Shinhan, Hana, Woori and NH NongHyup. “We will actively pursue the introduction of a no-fault liability system to strengthen the financial sector’s accountability for phishing crimes and provide more effective relief for victims,” Lee said. Two bills incorporating the measure are pending in the National Assembly. With the financial regulator throwing i

Jul 27, 2026By Park Han-sol

Banks push back against proposed no-fault compensation for voice phishing victims

Banking & Finance

Hana Bank steps up financing for Incheon's small businesses ahead of headquarters relocation

Ahead of its headquarters relocation to Incheon in September, Hana Bank is stepping up financial support for the city’s small businesses and manufacturers, the lender said Sunday. As part of the initiative, the bank signed a memorandum of understanding with the Incheon Credit Guarantee Foundation, Thursday, before CEO Lee Ho-sung visited Sinpo International Market and the Namdong National Industrial Complex to meet business owners and discuss the challenges they face. The partnership reflects Hana Financial Group’s broader push to strengthen its presence in Incheon ahead of its move to Cheongna. Under the agreement, Hana Bank will contribute 5.5 billion won ($3.77 million) this year to the Incheon Credit Guarantee Foundation, enabling 84 billion won in guaranteed loans for small business owners. It will also extend preferential financing to merchants that accept local currency, “Incheon e-Eum,” or use the public food delivery platform Mukkebi. An additional 10 billion won in overdraft-style working capital loans is set to be made available to small businesses across the city. Sepa

Jul 26, 2026By Park Han-sol

Hana Bank steps up financing for Incheon's small businesses ahead of headquarters relocation

Economy

EXPLAINER Why real estate remains one of Korea's most sensitive issues

A live, nationally televised housing policy forum led Thursday by the president himself, a rarity in many countries, highlighted the outsized role real estate plays in Korea’s economy and society. Experts say housing has become more than just shelter for Koreans, serving as a primary store of wealth, a means of securing retirement and a pathway to social mobility amid scarce supply in the Seoul metropolitan area. President Lee Jae Myung convened the public discussion on real estate policy, bringing together some 140 participants, including Prime Minister Han Seong-sook, Finance Minister Koo Yun-cheol, as well as representatives from the financial and construction industries, academia, civic groups, real estate brokers and social media influencers. The level of public engagement was evident even before the cameras started rolling. Since the forum’s official website opened on July 12, people have submitted more than 6,300 policy proposals. What was scheduled as a 100-minute discussion ultimately stretched beyond three hours as participants continued to debate the country’s housing ch

Jul 23, 2026By Park Han-sol

[EXPLAINER] Why real estate remains one of Korea's most sensitive issues

Economy

Can MBK's last-minute Homeplus rescue mitigate regulatory sanctions?

As the financial regulator weighs sanctions against MBK Partners over its handling of the Homeplus acquisition, attention is turning to whether the private equity firm’s last-minute effort to keep the retailer afloat could influence the severity of the penalty. The Financial Services Commission (FSC) has recently begun reviewing disciplinary measures proposed by the Financial Supervisory Service (FSS) on July 2. The FSS recommended a three-month suspension on MBK’s management of the Homeplus buyout fund, along with an institutional warning against MBK in its capacity as the general partner managing the private equity fund. If upheld, the warning would mark the first major regulatory sanction imposed on a domestic private equity fund manager. An institutional warning could affect MBK’s ability to raise capital from major limited partners, including the National Pension Service (NPS). At the center of the case is the firm’s treatment of redeemable convertible preferred shares (RCPS) — a type of preferred stock that can be redeemed by investors under certain conditions — issued

Jul 22, 2026By Park Han-sol

Can MBK's last-minute Homeplus rescue mitigate regulatory sanctions?

Companies

Homeplus' rehabilitation revived after court reverses termination

Homeplus won a reprieve on Tuesday after a court reversed its decision to terminate the retailer’s rehabilitation proceedings, concluding that a newly secured 200 billion won ($135 million) emergency loan had restored the viability of its turnaround plan. The Seoul Bankruptcy Court overturned its July 3 ruling and extended the deadline for creditors to vote on Homeplus’ rehabilitation plan until Sept. 4, giving the cash-starved retailer another chance to complete its court-led restructuring. The decision came just a day after Homeplus appealed the earlier ruling, having secured the full debtor-in-possession (DIP) loan from its largest creditor, Meritz Financial Group. The financing may have pulled the company back from the brink of liquidation, but it does little to resolve the deeper issues behind its decline. Ultimately, Homeplus’ survival will depend on attracting a strategic buyer or fresh investment — an outcome industry observers say remains far from certain. One immediate obstacle is the company’s mounting administrative claims, which take priority over other debts under

Jul 21, 2026By Park Han-sol

Homeplus' rehabilitation revived after court reverses termination

Economy

Asset manager's rare warning reaffirms risks of single-stock leveraged ETFs

Bae Jae-kyu, CEO of Korea Investment Management, has issued a rare warning, urging investors to “pull out of” single-stock leveraged exchange-traded funds (ETFs) tied to Samsung Electronics and SK hynix before mounting losses deepen. The remarks, made in a now-deleted Facebook post on Monday evening, were highly unusual as they came from the head of an asset management company which had launched some of the very products he was cautioning against. “I regret having to say this as the CEO of an asset manager that operates single-stock leveraged ETFs,” he wrote. “With volatility in the underlying shares this high, losses can compound day after day. Even if the stock itself eventually returns to where it started, the ETF may never fully recover. No one anticipated volatility on this scale.” Leveraged ETFs are designed to deliver two or three times the daily return of an underlying asset, typically a broad market index such as the KOSPI or the S&P 500. Single-stock versions take that concept a step further, allowing investors to make amplified bets on the direction of an individu

Jul 21, 2026By Park Han-sol

Asset manager's rare warning reaffirms risks of single-stock leveraged ETFs

Companies

Homeplus appeals court's rehabilitation termination, faces uphill battle for turnaround

Homeplus, once Korea’s second-largest discount store chain, formally appealed a court decision to terminate its rehabilitation proceedings, Monday, after securing a 200 billion won ($135 million) emergency loan. Although the last-minute financing may have pulled the company back from the brink of liquidation, its return to normal business remains far from assured. To stay afloat, Homeplus must rebuild supplier confidence, secure fresh liquidity and win back customers after months of disruption. The appeal follows Meritz Financial Group’s approval of the financing on July 16, after private equity firm MBK Partners, Homeplus’ owner, and its chairman, Michael ByungJu Kim, agreed to provide joint personal guarantees for the full amount of the debtor-in-possession (DIP) loan. While the Seoul Bankruptcy Court ended the retailer’s rehabilitation proceedings on July 3, it left the door open to reconsidering the decision if Homeplus obtained the minimum funding needed to carry out its turnaround plan before Monday’s appeal deadline. The company’s first hurdle is convincing the court t

Jul 20, 2026By Park Han-sol

Homeplus appeals court's rehabilitation termination, faces uphill battle for turnaround

Economy

Policy-driven insurance products fall flat with consumers

A 62-year-old business owner surnamed Park, who has been behind the wheel for 34 years, recently learned he could have qualified for a discount on his auto insurance by participating in the government’s vehicle rotation program, a temporary energy-saving measure introduced during heightened concerns over global oil supplies following the U.S.-Iran conflict. But he doesn’t think he missed much. “I didn’t see much point in going through the hassle for a temporary policy rider that could disappear at any time,” Park said. “And even if I qualified, the discount would have been only about 10,000 won ($6.80) a year. It simply wasn’t worth it.” Introduced by nonlife insurers in May at the request of financial authorities, the special rider offered a 2 percent discount on annual auto insurance premiums to motorists who voluntarily complied with the government's five-day vehicle rotation program, under which private vehicles were asked to stay off the road one designated weekday based on their license plate numbers. To qualify, drivers had to submit proof of compliance, but for m

Jul 20, 2026By Park Han-sol

Policy-driven insurance products fall flat with consumers

Companies

MBK, Meritz strike last-ditch deal to rescue Homeplus

Homeplus, once Korea's second-largest discount store chain, secured a 200 billion won ($135 million) emergency loan, Thursday, giving itself a chance to revive its court-led rehabilitation after its largest creditor, Meritz Financial Group, approved the financing. The decision came a day after private equity firm MBK Partners, Homeplus' owner, and its chairman, Michael ByungJu Kim, agreed to provide joint personal guarantees for the full amount of the debtor-in-possession loan. The funding allows Homeplus to appeal the Seoul Bankruptcy Court's earlier decision to terminate its rehabilitation proceedings. The court ended the restructuring process on July 3, ruling that the company had failed to secure the minimum 200 billion won needed to carry out its turnaround plan. It nevertheless left the door open to reconsidering the case if the financing was secured before the July 20 appeal deadline. The breakthrough follows months of deadlock between Meritz and MBK over the size of the loan and the guarantees required to secure it. Meritz had previously agreed to lend up to 100 billion won, provi

Jul 16, 2026By Park Han-sol

Park Han-sol

Read more

Senior living: Next frontier in Korea's silver economy

Banks push back against proposed no-fault compensation for voice phishing victims

Hana Bank steps up financing for Incheon's small businesses ahead of headquarters relocation

EXPLAINER Why real estate remains one of Korea's most sensitive issues

Can MBK's last-minute Homeplus rescue mitigate regulatory sanctions?

Homeplus' rehabilitation revived after court reverses termination

Asset manager's rare warning reaffirms risks of single-stock leveraged ETFs

Homeplus appeals court's rehabilitation termination, faces uphill battle for turnaround

Policy-driven insurance products fall flat with consumers

MBK, Meritz strike last-ditch deal to rescue Homeplus

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