The Korea Times

'Everything's going up': Small business owners squeezed by rising fuel, ingredient costs

Kim Bong-hwan, who runs a barbecue restaurant in Myeong-dong in central Seoul, is feeling the brunt of rising costs, with wholesale beef prices climbing from about 28,000 won ($18) per kilogram to more than 40,000 won in recent weeks. "Everything's going up — beef, pork, eggs, vegetables and even disposable materials like plastic bags and containers," he said. "Prices have risen 20 to 30 percent in just a few weeks." Kim, who has operated the restaurant for more than 15 years, said raising menu prices is a last resort as he fears losing customers. "For now, I'm absorbing the hit to my margins," he said. "But I'm worried this is only the beginning and the worst is yet to come." Like Kim, many small business owners across Korea are grappling with rising fuel, ingredient and packaging costs as higher global oil prices ripple through the economy amid tensions in the Middle East. Global oil prices have surged amid the escalating conflict. U.S. West Texas Intermediate crude futures for May delivery rose 3.25 percent to $102.88 per barrel on Monday, surpassing the $100 mark on a closing basis

Apr 1, 2026By Lee Hyo-jin

'Everything's going up': Small business owners squeezed by rising fuel, ingredient costs

Politics

Labor Day set to become public holiday for all workers

The National Assembly on Tuesday passed a bill designating May 1 Labor Day as a public holiday, extending the right to take the day off to all workers in Korea. If approved at an upcoming Cabinet meeting, the revision to the Act on Public Holidays will take effect this year, granting all workers — regardless of employment status — a day off on May 1. Lawmakers approved the bill in a plenary session with 194 votes in favor, two against and three abstentions out of 199 members present. The amendment designates Labor Day as an official public holiday, expanding coverage to include public officials, teachers and workers in irregular employment arrangements such as platform- and contract-based jobs. Labor Day has been recognized as a paid holiday under the Labor Standards Act since 1994, but the law applied only to workers classified as employees under labor law. Public sector employees and many nontraditional workers were excluded. National Assembly Speaker Woo Won-shik said the move addresses long-standing gaps in labor rights coverage. "Labor Day had been applied only to the private sect

Mar 31, 2026By Lee Hyo-jin

Labor Day set to become public holiday for all workers

Policy

BOK chief nominee shrugs off concerns over weakening won

Bank of Korea (BOK) Gov. nominee Shin Hyun-song downplayed concerns over the weakening Korean won Tuesday, saying the exchange rate does not necessarily signal financial instability. "The exchange rate level itself should not be given too much significance," Shin told reporters on his way to the office. "Rather, it reflects how much risk the financial system can absorb. In that sense, there is no major concern at this point." "Unlike in the past, there is no need to directly link exchange rate movements with financial instability," he added. The nominee's remarks come as the Korean currency has hovered around the 1,500 level against the U.S. dollar in recent trading days, pressured by foreign selling of domestic stocks amid the ongoing Middle East crisis. Shin cited the Middle East conflict as the biggest near-term risk to the economy, warning that higher oil prices could fuel inflation while weighing on growth. "Given the high level of uncertainty over how the situation will unfold in the Middle East, it is difficult to say more at this point," he said. Hours after his remarks, the centra

Mar 31, 2026By Lee Hyo-jin

BOK chief nominee shrugs off concerns over weakening won

Banking & Finance

Hana Bank wins 2026 Best Bank of Korea award

Hana Bank has been named "2026 Best Bank of Korea" by Global Finance, a U.S.-based financial magazine, the lender said Monday. This marks the bank's 10th win and sixth straight year receiving the title. In addition to the top honor, the bank was also recognized as Korea's best foreign exchange bank for the 25th consecutive year and best trade finance bank for the 25th time overall. Global Finance cited Hana Bank's artificial intelligence-driven digital innovation, as well as differentiated services in the overseas market supported by its expanding global network. The magazine also pointed to the lender's stable earnings, effective risk management and customer-focused financial services. "The award reflects our customer-focused approach and growing competitiveness in the global market," a Hana Bank official said. "We will continue to pursue innovation and strengthen our position as a leading global bank." Hana expanded its global footprint in 2025 by launching new branches in the United States, Poland and India. It currently operates 144 overseas networks across 27 regions, marking the larg

Mar 30, 2026By Lee Hyo-jin

Hana Bank wins 2026 Best Bank of Korea award

Banking & Finance

Leveraged homeowners struggle with surging mortgage rates amid growing inflation pressure

A salaried worker in his 40s surnamed Park, who lives in Seoul's Yeongdeungpo District, is increasingly feeling the strain of rising mortgage payments. "I bought an apartment in early 2021 with a mortgage at a rate in the 2 percent range," he said. "After the loan switched to a variable rate earlier this year, it rose to 4 percent. I am now paying more than 2 million won ($1,320) a month, which is a significant burden considering my income." "With two children to support and grocery prices rising, I have little room to cut spending elsewhere," he added. Park is among many Koreans who stretched their budgets to buy homes at the peak of the real estate market. But as mortgage rates have climbed to a three-year high, they are facing rising repayment burdens. According to the financial industry, five-year reset mortgage rates at the country's five major banks — KB Kookmin, Shinhan, Hana, Woori and NH NongHyup — ranged between 4.41 percent and 7.01 percent as of last Friday. It marks the first time since October 2022 that the upper end of the range has exceeded 7 percent. Such mortgages typ

Mar 30, 2026By Lee Hyo-jin

Leveraged homeowners struggle with surging mortgage rates amid growing inflation pressure

Banking & Finance

JB Financial to offer non-face-to-face banking for foreign residents

JB Financial Group will expand financial services for foreign residents in Korea through a pilot program enabling non-face-to-face account opening, the group said Sunday. The initiative, unveiled March 23 at a National Assembly forum, seeks to allow long-term foreign residents and overseas Koreans to open low-limit bank accounts remotely using passport information and biometric authentication before receiving an residence card. The move is aimed at closing a gap in access to basic financial services during the initial settlement period. As it can take up to two months for foreign nationals to obtain residence cards after arrival, many are left without bank accounts during that time, limiting access to essential services such as online shopping, telecommunications and delivery platforms. "While the number of foreign residents in Korea has already surpassed 2.6 million and is approaching 3 million, many still struggle to open bank accounts in the early stages of their stay," said Park Jong-choon, vice president and head of the AI transformation division at JB Financial Group. "Limited acces

Mar 29, 2026By Lee Hyo-jin

JB Financial to offer non-face-to-face banking for foreign residents

Policy

Impact of extra budget uncertain amid Middle East crisis

Surging energy prices and a series of downward revisions to Korea's growth outlook are raising questions about whether the government's planned 25 trillion won ($16.5 billion) supplementary budget will effectively cushion the economic fallout from the Middle East crisis. Analysts said Sunday the package could help ease the immediate burden on households, but would have a limited impact on growth if external volatility persists and inflationary pressures continue. The OECD last Thursday cut its 2026 growth outlook for Korea to 1.7 percent from its December projection of 2.1 percent, citing potential strains from the Iran crisis and rising energy costs. Global investment banks have made similar revisions. Citibank recently lowered its forecast to 2.2 percent from 2.4 percent, while Barclays trimmed its estimate to 2 percent from 2.1 percent. In a recent report, the Woori Financial Research Institute said that if international oil prices remain above $100 per barrel, Korea’s annual growth could fall by more than 0.5 percentage points given the economy’s heavy reliance on energy imports.

Mar 29, 2026By Lee Hyo-jin

Impact of extra budget uncertain amid Middle East crisis

Banking & Finance

NPS breaks from 'rubber-stamp' role in shareholders' meetings

The National Pension Service (NPS) is increasingly flexing its voting power at general shareholders' meetings of major conglomerates and financial groups, breaking from its long-standing reputation as a passive "rubber-stamp" investor. The shift, which appears to be prompting unease among company management, aligns with the government's push for the state-run pension fund to better represent minority shareholders and fulfill its role as an institutional investor, observers said. At Shinhan Financial Group’s shareholders’ meeting Thursday, the NPS, which holds about 9 percent of the firm’s shares, voted against the reappointment of Chairman Jin Ok-dong as an inside director. The fund cited his track record of “actions that undermined corporate value or infringed on shareholder rights.” In 2021, Jin received a “cautionary warning” from the Financial Supervisory Service while serving as CEO of Shinhan Bank for failing to adequately oversee the sale of fund products linked to a 1.7 trillion won ($1.1 billion) hedge fund fraud scandal involving Lime Asset Management. At Hanjin K

Mar 26, 2026By Lee Hyo-jin

NPS breaks from 'rubber-stamp' role in shareholders' meetings

Foreign Affairs

Seoul Venture University president named Romania's honorary consul

Seoul Venture University (SVU) President Kang Jun-mo has been appointed Romania's honorary consul in Korea, the university said Wednesday. The appointment ceremony, hosted by the Romanian Embassy in Korea, was held a day earlier at Hoseo University's Asan campus in South Chungcheong Province. Kang previously served as Hoseo University's vice president for external affairs. Attendees included Romanian Ambassador to Korea Cesar Manole Armeanu, Yoo Jae-ryong, senior policy adviser for the South Chungcheong Provincial Government, and Asan City Vice Mayor Kim Beom-su, along with officials from companies such as Korea Hydro & Nuclear Power and Hyundai Motor. As honorary consul, Kang is expected to serve as a bridge for cooperation between Korea and Romania across economy, education and culture. The appointment is also expected to pave the way for broader cooperation between the Chungcheong region and the European nation by creating new opportunities for trade and investment for local companies. "South Chungcheong Province and Asan City, with their dynamic industrial base and rich cultural herit

Mar 26, 2026By Lee Hyo-jin

Seoul Venture University president named Romania's honorary consul

Policy

Budget minister takes office with $16.7 bil. stimulus at top of agenda

Budget Minister Park Hong-keun took office on Wednesday, immediately confronting the task of assembling a 25 trillion won ($16.7 billion) supplementary budget to cushion the economic fallout from Middle East tensions. According to the Ministry of Planning and Budget, Park began his term with an online ceremony streamed on YouTube, forgoing an in-person event as officials focus on urgent issues such as the extra budget. "Amid deepening hardships facing people's livelihoods, we must act swiftly without hesitation," Park said in his inaugural address. "I will promptly draw up and submit a supplementary budget to ease the burden of soaring oil prices." He also said his ministry would serve as a control tower to strategically allocate resources across government agencies and generate value for the country as a whole. The planned stimulus package is expected to be submitted to the National Assembly by the end of this month, with passage anticipated at a plenary session on April 10. It will focus on easing rising fuel and logistics costs, supporting small businesses and farmers, and aiding expor

Mar 25, 2026By Lee Hyo-jin

Lee Hyo-jin

Read more

'Everything's going up': Small business owners squeezed by rising fuel, ingredient costs

Labor Day set to become public holiday for all workers

BOK chief nominee shrugs off concerns over weakening won

Hana Bank wins 2026 Best Bank of Korea award

Leveraged homeowners struggle with surging mortgage rates amid growing inflation pressure

JB Financial to offer non-face-to-face banking for foreign residents

Impact of extra budget uncertain amid Middle East crisis

NPS breaks from 'rubber-stamp' role in shareholders' meetings

Seoul Venture University president named Romania's honorary consul

Budget minister takes office with $16.7 bil. stimulus at top of agenda

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