The Korea Times

Gov't reviews credit scoring system to widen access for low-credit borrowers

The government is reviewing possible changes to the credit scoring system aimed at expanding access to financing for low- and middle-credit borrowers, according to the Financial Services Commission (FSC) on Thursday. The financial regulator said discussions are underway as part of broader efforts to strengthen the Lee Jae Myung administration's inclusive finance agenda. "We are discussing various measures to promote inclusive finance in a broader sense. The focus is on improving long-standing practices in the lending market toward a more inclusive direction," an FSC official said, noting that no concrete measures have been decided yet. The review comes a day after the president questioned whether regulators were relying too heavily on the voluntary efforts of financial institutions to support lower-credit borrowers. "Is there no way to evaluate how much inclusive financing lenders have provided to middle- and low-credit borrowers and impose disadvantages if they fall short of expectations?” Lee asked FSC Chairman Lee Eog-weon during a Cabinet meeting. Saying the current system relies to

May 7, 2026By Lee Hyo-jin

Gov't reviews credit scoring system to widen access for low-credit borrowers

Economy

Why stock wealth effect on consumption is weaker in Korea than in US, Europe

Stock market gains in Korea lead to less consumer spending than in the United States and Europe, largely because local households tend to use investment returns to purchase homes rather than spend on goods and services, a central bank report showed Thursday. According to a Bank of Korea (BOK) report on the wealth effect of stock market gains, only about 1.3 percent of capital gains from rising stock prices are spent on consumption in Korea, far below the 3 to 4 percent wealth effect typically seen in advanced Western economies. Based on household panel data covering 2012 to 2024, the BOK estimated that a 10,000 won ($7) increase in stock value leads to just 130 won in additional household spending. One reason for the weaker wealth effect is the relatively small role those equities play in household wealth compared with Western economies. Stock assets amounted to 77 percent of disposable income in Korea last year, sharply lower than 256 percent in the U.S. and 184 percent in major European countries, the report said. Another factor is retail investors' tendency to reinvest stock gains into

May 7, 2026By Lee Hyo-jin

Why stock wealth effect on consumption is weaker in Korea than in US, Europe

Economy

What's next for Korea's housing market after tax break for multi-home owners ends?

With a temporary tax break for multi-home owners set to expire, attention is now turning to whether the Lee Jae Myung administration's real estate policies will be able to stabilize Korea's overheated housing market going forward, according to market analysts Wednesday. The issue sits at the heart of the Lee administration's push to rein in soaring home prices as part of what it calls the "normalization" of the housing market. One of the key measures will take effect starting Saturday, when a temporary tax benefit expires, restoring steep capital gains taxes on owners of multiple properties. The move could impose an effective tax rate of up to 82.5 percent on home sales, depending on the number of properties owned — a sharp increase from the current 6 to 45 percent range. In principle, sellers must complete contracts and payments ahead of the Saturday deadline to avoid the tax hike, though the government has introduced limited grace periods for transactions already in process. While government officials insist that ending the capital gains tax exemption would encourage multi-home owner

May 7, 2026By Lee Hyo-jin

What's next for Korea's housing market after tax break for multi-home owners ends?

Economy

President criticizes banks' 'profit-first' mindset, calls for stronger public role

President Lee Jae Myung criticized financial institutions for prioritizing profits over their public responsibility, Wednesday, in the latest sign that the government may seek a bigger role in reshaping the country's financial system. "Financial institutions are also part of the state order necessary to maintain the financial system," Lee said during a Cabinet meeting. "They differ from other private companies because they generate profits by lending funds supported through the central bank and state-backed financial systems." "It is problematic in itself for financial institutions to think that making money is everything, or that it is their reason for existence," the president added, stressing that inclusive finance is a key obligation of the banking industry. Lee made the remarks while referring to a series of recent Facebook posts by Kim Yong-beom, presidential chief of staff for policy, who argued that Korea's financial system has become structurally biased against low-credit borrowers. In the posts, Kim said the current system effectively pushes low-credit and middle-credit borrowe

May 6, 2026By Lee Hyo-jin

President criticizes banks' 'profit-first' mindset, calls for stronger public role

Banking & Finance

Korea Eximbank forges strategic partnership with Uzbek ministry

The Export-Import Bank of Korea (Korea Eximbank) signed a memorandum of understanding (MOU) with Uzbekistan's investment ministry to establish a strategic partnership, the state-run lender said Tuesday. The signing ceremony took place Sunday in Samarkand, on the sidelines of the annual meeting of the Asian Development Bank. Under the agreement, the two sides will expand cooperation in industrial development and strengthen information sharing to help stabilize supply chains. The partnership will also cover investments in energy transition and green infrastructure, as well as collaboration in artificial intelligence (AI) technologies. The MOU follows an agreement reached last December between the two countries' deputy prime ministers for economic affairs. The signing ceremony was attended by Finance Minister Koo Yun-cheol and Eximbank CEO Hwang Ki-yeon. Uzbek officials in attendance included Deputy Prime Minister Khodjaev Jamshid Abdukhakimovich, Finance Minister Kuchkarov Djamshid Anvarovich and Deputy Minister of Investment, Industry and Trade Gulamov Shokhrukh Khasanovich. Eximbank said

May 5, 2026By Lee Hyo-jin

Korea Eximbank forges strategic partnership with Uzbek ministry

Banking & Finance

Parents skeptical about gov't decision to allow credit cards for minors

The government’s decision to allow the issuance of credit cards to minors aged 12 and older has drawn skepticism from parents Tuesday, with some raising concerns about early exposure to overspending and the potential for delinquency. Credit cards had previously been limited to adults aged 19 and older, but the minimum eligibility age was lowered through a revision to the enforcement decree of the Specialized Credit Finance Business Act, which took effect Monday. A woman in her 40s surnamed Kim, who lives in Seoul’s Gangseo District and has a 13-year-old daughter, expressed doubts about the move, questioning whether a credit card is necessary when her child already has a debit card. Her daughter currently uses KakaoBank's "mini card," a debit card designed for teenagers, through which she receives a monthly allowance of 100,000 won ($67). "I don't see the need for a credit card, since it's ultimately a system where I have to pay for what my daughter spends," she said. "It feels like a policy designed to benefit card companies. If misused, it could lead to delinquencies or other side e

May 5, 2026By Lee Hyo-jin

Parents skeptical about gov't decision to allow credit cards for minors

Banking & Finance

Korea Eximbank sets up $500 mil. critical minerals supply chain alliance with ADB

The Export-Import Bank of Korea (Korea Eximbank) has signed a $500 million (735 billion won) financing agreement with the Asian Development Bank (ADB) to support critical minerals projects in developing countries, the state-run lender said Monday. The agreement was signed by Korea Eximbank CEO Hwang Ki-yeon and ADB President Masato Kanda the previous day in Samarkand, Uzbekistan, on the sidelines of the ADB's annual meeting. Under the deal, Eximbank will participate in a newly established ADB-led financing platform called the Critical Minerals-to-Manufacturing Financing Partnership Facility (CMM FPF), aimed at strengthening critical minerals supply chains across Asia and the Pacific. Eximbank plans to commit up to $500 million by 2029 through its supply chain stabilization fund, using a mix of loans, guarantees and investments. ADB aims to scale up the overall financing pool to between $2 billion and $3 billion. The two institutions will jointly identify promising critical minerals projects in developing countries and provide cofinancing across the value chain, including exploration, ext

May 4, 2026By Lee Hyo-jin

Korea Eximbank sets up $500 mil. critical minerals supply chain alliance with ADB

Global Community

Korean adoptee to Sweden traces roots to founder of ancient kingdom

Jenny Dargren, 51, a Korean adoptee to Sweden, says her yearslong search for her biological family led to an unexpected discovery — a possible lineage linked to Dae Jo-yeong, founder of Korea's ancient Balhae Kingdom (698-926). Born in Korea under the name Tae Jeong-sun, Dargren was adopted to Sweden as an infant in 1975 with little known background. She had questioned her identity for most of her life and began actively searching for her origins around 2014. "I reached out to a lot of government agencies and submitted DNA to multiple databases, but to find my biological family needs their approval, so everything remained sealed," Dargren told The Korea Times in a recent interview. However, a different route led to a breakthrough. After multiple inquiries to adoption agencies and local governments, Dargren was eventually connected — through officials in Gyeongsan, North Gyeongsang Province — to members of the "Yeongsun Tae" clan. The Tae clan is centered in a small community known as "Balhae Village" in Gyeongsan, where dozens of families bearing the Tae surname, believed to be desce

May 3, 2026By Lee Hyo-jin

Korean adoptee to Sweden traces roots to founder of ancient kingdom

Banking & Finance

Woori Bank hosts US investment seminar for Korean firms

Woori Bank held an investment seminar for small and medium-sized Korean companies seeking to enter the U.S. market amid tariff uncertainty and shifting trade conditions, the bank said Thursday. The event, held at the bank's headquarters in Seoul the previous day, was co-hosted with the Ministry of SMEs and Startups and brought together a range of public and private institutions. Participants included representatives from Woori Bank's Global Investment WON Center and its U.S. subsidiary Woori America Bank, as well as the Korea SMEs and Startups Agency, the Korea Trade-Investment Promotion Agency (KOTRA), the law firm Jipyong and accounting firm Samil PwC. The program featured 11 sessions on U.S. market entry strategies and the local business environment, along with one-on-one consultations covering financing, legal and tax issues, real estate and investment procedures. U.S.-based experts also shared practical insights and on-the-ground perspectives. The seminar followed a similar event held last year on investment opportunities in Vietnam. "This seminar was designed to give companies acces

Apr 30, 2026By Lee Hyo-jin

Woori Bank hosts US investment seminar for Korean firms

Economy

BOK expected to hold rates in May after Fed pause

The Bank of Korea (BOK) is expected to hold its benchmark interest rate at 2.5 percent at its May meeting, following the U.S. Federal Reserve’s decision to keep its policy rate unchanged, local analysts said Thursday. Amid heightened economic uncertainty from the Middle East conflict and rising inflationary pressure driven by a surge in global oil prices, the central bank, like its U.S. counterpart, faces limited room for rate adjustments, they said. The Fed held its benchmark rate in the range of 3.50 percent to 3.75 percent for a third straight meeting, but a surge in dissent — with four members of the Federal Open Market Committee (FOMC) opposing the decision, the most since 1992 — brought a hawkish undercurrent to the meeting. Market watchers say the central bank is likely to follow suit with a similar “hawkish hold” in May, while keeping the door open to further tightening in the second half of the year. The BOK's Monetary Policy Board meeting on May 28 will be the first under Gov. Shin Hyun-song, who took office on April 21. "Given the Fed's trajectory, the BOK is likely t

Apr 30, 2026By Lee Hyo-jin

Lee Hyo-jin

Read more

Gov't reviews credit scoring system to widen access for low-credit borrowers

Why stock wealth effect on consumption is weaker in Korea than in US, Europe

What's next for Korea's housing market after tax break for multi-home owners ends?

President criticizes banks' 'profit-first' mindset, calls for stronger public role

Korea Eximbank forges strategic partnership with Uzbek ministry

Parents skeptical about gov't decision to allow credit cards for minors

Korea Eximbank sets up $500 mil. critical minerals supply chain alliance with ADB

Korean adoptee to Sweden traces roots to founder of ancient kingdom

Woori Bank hosts US investment seminar for Korean firms

BOK expected to hold rates in May after Fed pause

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