The Korea Times

BOK faces rate dilemma amid stronger growth, record household debt

The Bank of Korea (BOK) faces a dilemma over whether to raise its policy rate at a meeting later this week, as stronger-than-expected economic growth supports another hike while record-high household debt poses a growing concern, market watchers said Monday. The central bank will hold its Monetary Policy Board meeting Thursday to decide the policy rate, which currently stands at 2.75 percent after the BOK raised it by 25 basis points last month. Markets are closely watching whether the central bank will deliver a second consecutive rate hike or pause after last month's increase. Economists who expect another rate hike point to stronger-than-expected second-quarter growth and continued inflationary pressures. Korea's economy grew 0.6 percent in the second quarter from the previous quarter, supported by strong semiconductor exports. Park Jeong-woo, an economist at Nomura Securities, said the growth momentum remained strong. "Robust economic growth continues, with gross domestic product growth above 3 percent year-on-year for two consecutive quarters," Park said. "Although the growth composit

Aug 25, 2026By Lee Hyo-jin

BOK faces rate dilemma amid stronger growth, record household debt

Banking & Finance

IBK under scrutiny over internal controls after major fraud case at China unit

The Industrial Bank of Korea (IBK) is facing scrutiny over its internal controls after its Chinese subsidiary lost 83.4 billion won ($60.3 million) due to financial fraud that allegedly went undetected for months. According to documents submitted Monday by IBK and the Financial Supervisory Service (FSS) to Rep. Shin Dong-wook of the People Power Party, IBK's Chinese subsidiary provided non-face-to-face loans to local borrowers in partnership with a non-bank financial institution. The financial institution used an online lending platform to recruit borrowers and collect loan repayments. Borrowers sent their repayments to an account designated by the platform, which was supposed to transfer the money to IBK. However, the platform allegedly changed the repayment account without authorization and diverted the money instead of sending it to IBK. It also allegedly falsified records to make it appear that borrowers had repaid their loans. As a result, some borrowers were marked as delinquent even after making their payments, while IBK failed to receive the money. The incident started in December

Aug 24, 2026By Lee Hyo-jin

IBK under scrutiny over internal controls after major fraud case at China unit

Economy

KOSPI closes higher as chip stocks offset US Treasury yield rise

KOSPI edged higher Friday as gains in chipmakers, fueled by expectations for stronger shareholder returns, offset concerns over rising U.S. Treasury yields. The benchmark index closed at 6,912.95, up 0.88 percent, or 60.37 points, from the previous session. The index opened 1.35 percent lower but reversed course to close higher as semiconductor stocks led the rebound. Foreign investors and retail investors sold a net 170.7 billion won ($123 million) and 1.17 trillion won, respectively, while institutional investors bought a net 248.7 billion won. SK hynix rose 2.31 percent to 1.73 million won, while Samsung Electronics climbed 3.87 percent to 281,500 won, as expectations for stronger shareholder returns boosted demand for the chipmakers. SK hynix announced a 40 trillion won share buyback and cancellation program on Wednesday. The company also strengthened its shareholder return policy, pledging to return at least 50 percent of cumulative free cash flow to shareholders. Samsung Electronics is also reportedly planning to approve a shareholder return program worth more than 100 trillion won,

Aug 21, 2026By Lee Hyo-jin

KOSPI closes higher as chip stocks offset US Treasury yield rise

Economy

Growing number of foreigners tap NPS loophole for lifetime pensions

A growing number of foreign residents in Korea who have contributed to the National Pension Service (NPS) for only short periods are using a loophole in the retroactive payment system to secure old-age pension benefits, with Chinese nationals accounting for a significant share of such cases, insiders at the state pension operator said Friday. The cases are fueling scrutiny of the scheme, which was originally intended to expand pension coverage for people with interrupted careers, and prompting calls for reform. Under current measures, individuals must have at least 10 years, or 120 months, of contributions to qualify for a monthly old-age pension. The back-payment system allows people who were exempt from paying pension premiums for certain periods to pay those missed premiums later in a lump sum. The payments are then added to their contribution records. The system was introduced in 1999 to help people maintain their pension rights after career interruptions caused by unemployment, marriage, childbirth and other circumstances. Up to 119 months of missed contributions can be paid retroac

Aug 21, 2026By Lee Hyo-jin

Growing number of foreigners tap NPS loophole for lifetime pensions

Economy

Korea's growth outlook keeps improving, but people aren't feeling it

Lee Ji-eun, a clothing retailer in her 30s who runs a small shop in northeastern Seoul's Nowon District, says the country's improving growth outlook feels distant from what she sees in her own business, with foot traffic at her store yet to pick up. "It's hard to feel an economic recovery when prices are still so high. I've also been cutting back on cultural activities, leisure and other spending myself, so I can understand why consumers are cutting back," Lee said. For Park, an office worker in the manufacturing sector who lives in Seongnam, Gyeonggi Province, the economic growth driven by the semiconductor boom has done little to change her own financial situation. "My wages are the same, but when I hear about the big bonuses being paid at semiconductor companies, I feel kind of left behind," Park said. Shin, a small business owner in his 60s in Gyeonggi Province, said, "They say the economic figures are improving, but it's the big companies and exporters that are making the money. For people like us who make a living day to day, it feels like it's happening in another country." Their c

Aug 20, 2026By Lee Hyo-jin

Korea's growth outlook keeps improving, but people aren't feeling it

Banking & Finance

Financial regulators' potential Sejong relocation stirs unease among employees

A growing number of workers say they are uneasy about the government's move to relocate public financial institutions out of Seoul, with the list of affected organizations expected to be made public as early as next week. "It feels like it's finally happening. There have been talks about relocation before, usually around elections, but this time the government seems to be seriously pushing it," said an employee surnamed Kim at a state-run bank. "It's not just about having to move our homes. We're also concerned that the relocation could affect the efficiency of our work, since we have to communicate frequently with businesses based in Seoul," he said. An official at the Financial Services Commission (FSC), who spoke on condition of anonymity, said the relocation to Sejong appeared to be a "done deal." "'I'm trying to come to terms with it and figure out what to do with my family, including whether we should find a new apartment in Sejong," the official said. The FSC and the Financial Supervisory Service (FSS) will likely be among the institutions considered for relocation to Sejong, the c

Aug 19, 2026By Lee Hyo-jin

Financial regulators' potential Sejong relocation stirs unease among employees

Banking & Finance

Franklin Templeton names Rene Buehlmann as Asia-Pacific chief

Global asset manager Franklin Templeton appointed Rene Buehlmann as its new head of Asia Pacific, effective Sept. 21, as the firm seeks to strengthen its presence in the region, the company said Wednesday. Buehlmann will oversee the firm's Asia-Pacific business, including its strategic growth plans, client relationships and business development. Franklin Templeton has more than 2,600 employees across the region and operates in major markets including Korea, Singapore, Hong Kong, India, Japan, China, Taiwan, Malaysia and Australia. Buehlmann said he was pleased to take on the role, which he said is important for both Franklin Templeton and the Asia-Pacific region. "Franklin Templeton has built an increasingly differentiated global platform in recent years by expanding its capabilities in exchange-traded funds, private markets and digital assets. The Asia-Pacific region offers significant growth opportunities, and I look forward to working with the firm’s talented teams across the region to deepen our relationships with clients," Buehlmann said. "We will bring Franklin Templeton's broad

Aug 19, 2026By Lee Hyo-jin

Franklin Templeton names Rene Buehlmann as Asia-Pacific chief

Banking & Finance

Woori Financial Group to launch mega life insurer through Tongyang, ABL merger

Woori Financial Group said Tuesday it will officially kick off the integration of Tongyang Life Insurance and ABL Life Insurance, aiming to launch an integrated life insurer with total assets of about 55 trillion won ($39 billion) in the second half of 2027. The group said the integration is part of efforts to strengthen its insurance business as one of its key pillars and launch a larger insurer amid a rapidly changing insurance market. Woori Financial brought both Tongyang and ABL under its wing in July and made Tongyang a wholly owned subsidiary through a comprehensive share swap on Aug. 11. The group plans to combine the two insurers' strengths while focusing on capital soundness and contract service margin, a key measure of the future profitability of insurance contracts, the company said. It also plans to invest in artifical intelligence to streamline sales and management operations, while drawing on the strengths of both insurers to enhance its products and distribution channels. Following the merger, it will explore new growth opportunities in areas such as senior care amid Korea'

Aug 18, 2026By Lee Hyo-jin

Woori Financial Group to launch mega life insurer through Tongyang, ABL merger

Policy

Young Koreans lose trust in Lee government's economic policies

A 33-year-old office worker in northeastern Seoul's Dongdaemun District surnamed Park has been using an individual savings account (ISA) for long-term investments, mainly in overseas stocks. But uncertainty over recent changes to the account has left her unsure about how to manage her money. "I saw reports in early August saying the rules would change to limit investment in overseas stocks, and then I saw that the plan was being reconsidered. It’s confusing to keep up with the news," she said. "The problem is not just about the changing rules, but that it is becoming harder to make long-term financial plans when policy directions shift so quickly." Another office worker in her 30s, surnamed Lee, said she felt frustrated by the government's housing policies. "Several housing policies have been announced recently, but none of them have really helped me. My goal is to buy an apartment within five years, but loan restrictions make that goal feel out of reach," Lee said. Their frustration reflects a broader sentiment among some young Koreans that government policies meant to help them save,

Aug 18, 2026By Lee Hyo-jin

Young Koreans lose trust in Lee government's economic policies

North Korea

Young people should shape future of unified Korea, says activist

Young people should play a greater role in shaping the future of the Korean Peninsula, according to Yoo Nam-sik, co-chairman at Alliance for Korea United USA. "We should never underestimate the role our generation can play. We were born into a divided Korea and inherited division as though it were simply a fact of life. But we do not have to accept that reality and pass it on unchanged to the next generation," Yoo said during a joint interview with local media, Wednesday. "Throughout history, young people and university students have often been at the forefront of major social change. If young people in Korea and around the world refuse to settle for the status quo and unite around a common vision, I believe our generation can help create a more peaceful, prosperous and unified Korea," he added. The interview was conducted on the sidelines of the One Korea Youth Forum 2026, where young people from South Korea, North Korean defectors, the Korean diaspora and overseas communities gathered to discuss peace and the future of the peninsula. Yoo, a second-generation Korean American from Seattl

Aug 18, 2026By Lee Hyo-jin

Lee Hyo-jin

Read more

BOK faces rate dilemma amid stronger growth, record household debt

IBK under scrutiny over internal controls after major fraud case at China unit

KOSPI closes higher as chip stocks offset US Treasury yield rise

Growing number of foreigners tap NPS loophole for lifetime pensions

Korea's growth outlook keeps improving, but people aren't feeling it

Financial regulators' potential Sejong relocation stirs unease among employees

Franklin Templeton names Rene Buehlmann as Asia-Pacific chief

Woori Financial Group to launch mega life insurer through Tongyang, ABL merger

Young Koreans lose trust in Lee government's economic policies

Young people should shape future of unified Korea, says activist

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