The Korea Times

Civic groups rally against 'two Koreas' framework, call for unification

Lawmakers and civic groups gathered Tuesday to call for a unified Korea based on democracy, freedom and human rights, warning against growing discussions of a "two Koreas" approach to inter-Korean relations. The "One Korea Unification Rally" was held at the National Assembly ahead of the National Liberation Day holiday on Aug. 15. The event was organized by Citizens Solidarity for One Korea, a civic group advocating for Korean unification. The organizers said Liberation Day not only commemorates the end of Japanese colonial rule of Korea, but also serves as a reminder of the unfinished task of overcoming the country's division. Participants included lawmakers, civic activists, North Korean defectors and academics. They argued that discussions of establishing the two Koreas as separate states could lead to the permanent division of the Korean Peninsula and called for reunification based on constitutional principles. Song Seok-jun, chairman of the National Assembly’s Foreign Affairs and Unification Committee and a member of the conservative People Power Party (PPP), stressed that the Con

Aug 18, 2026By Lee Hyo-jin

Civic groups rally against 'two Koreas' framework, call for unification

North Korea

'We stand for One Korea': Young people gather to envision unified Korea

Young people from South Korea, North Korean defectors, the Korean diaspora and overseas communities gathered in Seoul on Wednesday to discuss peace and the future of the Korean Peninsula, leading up to the launch of an international youth alliance advocating for a unified Korea. The One Korea Youth Forum 2026 was held on U.N. International Youth Day, which falls on Aug. 12, under the theme "Startup for Peace: Global Youth for Building a Sustainable Korean Peninsula." The forum was hosted by the Global Peace Foundation Korea and organized with youth groups including the Korean Dream Crew, the Youth Association of the Korea CIS Diaspora Association and Muipan Sapan, a student organization for North Korean defectors. The event was sponsored by the Seoul Metropolitan Government, as part of its program supporting social integration of North Korean defectors. Participants shared their views on peace, human rights and social integration on the Korean Peninsula, while discussing how young people could contribute to building a peaceful and sustainable future. "The fact that young people from diff

Aug 18, 2026By Lee Hyo-jin

'We stand for One Korea': Young people gather to envision unified Korea

Civic groups rally against 'two Koreas' framework, call for unification

Policy

Budget, education ministries clash over education grant reform

A government plan to reform the country's local education grant system is facing delays as the budget and education ministries remain divided over the details of a funding formula that has been largely unchanged for more than five decades, despite agreeing on the broad framework for reform. The issue gained momentum as the Ministry of Planning and Budget pushed aggressively for reform amid expectations of a substantial increase in tax revenue on the back of the semiconductor boom. Education grants have continued to rise automatically with tax revenue even as the school-age population declines, fueling concerns that the system could lead to excessive or inefficient spending on education. The two ministries are also at odds over how to use the new "future response fund," which will be financed with excess tax revenue generated by semiconductor exports and could be unveiled by the budget ministry as early as this week. The two ministries have reached broad agreement on scrapping the current system, which automatically allocates 20.79 percent of annual domestic tax revenue to local educatio

Aug 17, 2026By Lee Hyo-jin

Budget, education ministries clash over education grant reform

Economy

Senior BOK official leaves door open for further rate hikes

A senior Bank of Korea (BOK) official said Tuesday that further interest rate hikes are likely unless a major economic shock emerges, keeping the door open for additional tightening. Ryoo Sang-dai, senior deputy governor of the BOK, made the remarks during a press briefing as the central bank weighs persistent inflationary pressures, stronger-than-expected economic growth and financial stability risks. In response to a question about the possibility of a rate hike in August, Ryoo said the BOK has "entered a tightening cycle" with its July hike. "If there is no particular shock or special factor, the possibility of further rate hikes can be considered high," he said. The BOK raised its benchmark interest rate by 0.25 percentage point last month to 2.75 percent, marking its first rate hike in three and a half years. The move came as the economy showed stronger-than-expected growth, while inflationary pressures stemming from Middle East tensions remained a concern. Ryoo said the timing and pace of any additional hikes would depend on economic data, particularly the outlook for growth and inf

Aug 11, 2026By Lee Hyo-jin

Senior BOK official leaves door open for further rate hikes

Banking & Finance

Hana Financial, veterans ministry join hands to improve national cemetery

Hana Financial Group signed an agreement with the Ministry of Patriots and Veterans Affairs to improve facilities at the country's national cemeteries, the company said Tuesday. The two sides signed a memorandum of understanding the previous day at the National Cemetery in Seoul's Dongjak District, with Hana Financial Group Chairman Ham Young-joo and Veterans Minister Kwon Oh-eul in attendance. They also discussed various ways to strengthen cooperation in preserving the memory of veterans' sacrifices and dedication, as well as promoting a culture of honoring those who served the country and their families. The agreement, signed ahead of the Aug. 15 Liberation Day holiday, was designed to honor veterans who dedicated themselves to the country by refurbishing aging grave markers at national cemeteries and providing a better environment for visiting families. Hana Financial will carry out maintenance work on about 2,000 grave markers at Daejeon National Cemetery, including those in the section for independence activists, and at Seoul National Cemetery, including the sections for military pe

Aug 11, 2026By Lee Hyo-jin

Hana Financial, veterans ministry join hands to improve national cemetery

Policy

Why young Koreans are less interested in $420 mil. state-backed equity fund

Young Koreans showed relatively little interest in the country's state-backed growth fund launched earlier this year, despite strong overall demand for the 600 billion-won ($420 million) fund, data showed Monday. According to data obtained by Rep. Kim Sang-hoon of the main opposition People Power Party from the Financial Services Commission (FSC), the first round of the National Growth Fund program attracted 30,038 subscribers and sold out within a week of its launch on May 22. Investors in their 50s were the largest group by both the number of subscribers and the amount invested. A total of 10,173 people in their 50s invested 231.6 billion won, accounting for 33.9 percent of all subscribers and 38.7 percent of total investment. By comparison, 5,852 investors in their 20s and 30s invested a combined 80.2 billion won. The two age groups accounted for 19.5 percent of all subscribers, and 13.4 percent of total investment. Investors in their 40s numbered 9,357 and invested 170.6 billion won. Those aged 60 and above numbered 4,588 but had the highest average investment, at 23.36 million won th

Aug 10, 2026By Lee Hyo-jin

Why young Koreans are less interested in $420 mil. state-backed equity fund

Economy

BOK's collateral policy criticized for favoring high-carbon assets

A new study has accused the Bank of Korea (BOK)'s collateral system of favoring high-carbon assets over green bonds, arguing that the framework could effectively provide an "implicit subsidy" to fossil fuel and other carbon-intensive industries. The study, released Monday by London-based nonprofit Positive Money and Seoul-based Institute for Green Transformation (IGT), found that 53 percent of corporate and public-institution bonds recognized as collateral by the BOK in 2025 came from fossil fuel and other high-emission sectors. Green and sustainability bonds accounted for just about 2 percent. The analysis covered 1,368 bonds using BOK data obtained through Rep. Jung Tae-ho of the ruling Democratic Party of Korea, according to the researchers. The BOK accepts bonds and other assets as collateral when providing liquidity to financial institutions. It applies so-called "haircuts" to account for potential risks, meaning it discounts the value of an asset when determining how much it can be used as collateral. The study found that green bonds had an average haircut of 8.7 percent in 2025, ro

Aug 10, 2026By Lee Hyo-jin

BOK's collateral policy criticized for favoring high-carbon assets

Economy

No retirement? Why more Koreans work into their 70s

Park, a 62-year-old nurse at a long-term care hospital in Seoul, is in no hurry to retire. After raising her children, she returned to the workforce in her 50s, putting a nursing license she had obtained years earlier to use. Nearly a decade later, she still has no plans to retire. "I'll start receiving my pension in a few years, but it won't be enough to support the kind of retirement I'd like, so I'd rather keep working," she said. "Besides, work keeps me active. Staying at home all day isn't for me, and I enjoy meeting people. I'd like to keep working for as long as I'm physically able." Park is one of a growing number of older Koreans who want to remain in the workforce beyond what was once considered a retirement age. According to the Ministry of Data and Statistics, Thursday, the number of employed people aged 55 to 79 reached 10.13 million in May, surpassing 10 million for the first time since the annual survey began in 2005. The figure rose by 345,000 from a year earlier and has increased by about 50 percent over the past decade, from 6.72 million in 2016. The employment rate for th

Aug 6, 2026By Lee Hyo-jin

No retirement? Why more Koreans work into their 70s

Economy

Is Korea really becoming 'uninvestable'?

Korea's recent stock market turmoil has reignited debate over whether the country's equity market is becoming "uninvestable," but analysts said Wednesday the recent sell-off has done little to undermine its underlying fundamentals. The assessment follows a Bloomberg column published the previous day, which blamed the government's handling of single-stock leveraged exchange-traded funds (ETFs) tied to Samsung Electronics and SK hynix for undermining investor confidence. The sharp criticism prompted the Financial Services Commission (FSC) to issue a rare rebuttal late Tuesday, rejecting the article's claims and defending Korea's market fundamentals. "The column reflects some of the concerns foreign investors have, but I think it overstates the case," Shim Jong-min, head of Korea Research at CLSA, told The Korea Times. He said the introduction of single-stock leveraged ETFs became a major catalyst for the market's sharp swings, but stressed they were only one part of a much broader picture. According to Shim, the correction was driven by a combination of factors, including the unwinding of c

Aug 5, 2026By Lee Hyo-jin

Is Korea really becoming 'uninvestable'?

Economy

Sweltering heat takes toll on small businesses

Kim, a 54-year-old barbecue restaurant owner in central Seoul's Myeong-dong, said business had slowed sharply since late July. "It's not just dinner customers. Office workers used to come here for lunch, but we've seen a sharp drop since a few weeks ago," Kim said. "I think it's because of both the summer vacation season and the extreme heat. People just aren't coming out as much, while many are cutting back on dining out because of rising prices." Declining sales have come alongside rising operating costs, he lamented. His air conditioners have been running almost nonstop to keep the restaurant cool, pushing electricity bills to nearly double their usual level, while higher ingredient costs continue to weigh on profit margins. Similar concerns have surfaced across online communities for small business owners, where they say the prolonged heat has become yet another burden on top of weak consumer demand. "Delivery companies are charging higher fees because of the extreme heat. Business is already slow and now we're paying even more to get orders delivered," one user wrote on a Naver onlin

Aug 4, 2026By Lee Hyo-jin

Lee Hyo-jin

Read more

Civic groups rally against 'two Koreas' framework, call for unification

'We stand for One Korea': Young people gather to envision unified Korea

Budget, education ministries clash over education grant reform

Senior BOK official leaves door open for further rate hikes

Hana Financial, veterans ministry join hands to improve national cemetery

Why young Koreans are less interested in $420 mil. state-backed equity fund

BOK's collateral policy criticized for favoring high-carbon assets

No retirement? Why more Koreans work into their 70s

Is Korea really becoming 'uninvestable'?

Sweltering heat takes toll on small businesses

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