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Lee Kyung-min

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Economy

Ruling party lawmaker seeks revision for greater labor voice in BOK rate decisions

A ruling party lawmaker is seeking to revise a law regarding the Bank of Korea’s (BOK) rate-setting monetary policy board to include a member representing the interests of the labor sector. Whether the renewed move would gain momentum remains unclear, since previous similar attempts all ended up in failure. According to National Assembly records, Rep. Jeon Yong-gi of the ruling Democratic Party of Korea (DPK) and 11 other lawmakers proposed a bill July 24 to revise the law governing the central bank. The bill seeks to reduce the number of BOK-controlled members from three to two, and instead install a labor representative. The labor representative will be, the lawmaker added, selected by a candidate recommendation committee to be set up according to relevant ordinances. Currently, three out of seven board members represent the central bank, including the governor, senior deputy governor and one member recommended by the governor. The remaining four are recommended by the finance minister, the head of Financial Services Commission, the head of the Korea Chamber of Commerce and Industry an

Aug 19, 2025By Lee Kyung-min
Ruling party lawmaker seeks revision for greater labor voice in BOK rate decisions
Economy

Will Korea introduce Monday holidays?

A recent study showed moving public holidays to Mondays could lead to 2.1 trillion won ($1.51 billion) of consumer spending per day, increasing expectations for the government to move some holidays in its efforts to revive the economy. The initiative was originally proposed under the Yoon Suk Yeol administration but lost momentum after the martial law fiasco last December. It remains to be seen whether the Lee Jae Myung administration will follow up on the initiative. The study, commissioned by the Ministry of Economy and Finance and conducted by the Korean Society for Public Personnel Administration, found that implementing Monday-designated public holidays to create more three-day weekends would result in consumer spending worth about 2.1 trillion won per day. Currently, Korea's public holidays are on fixed dates, so many of them fall midweek. The study also said that a corresponding three-day long weekend would lead to about 3.8 trillion won in economic output and nearly 1.7 trillion won in added value. Of this, the food and lodging industries would see a combined output of over 1.57 t

Aug 19, 2025By Lee Kyung-min
Will Korea introduce Monday holidays?
Economy

More listed firms cancel shares amid shareholder return drives

An increasing number of listed firms have been cancelling shares over the past three months, prodded by the Lee Jae Myung administration’s drive to enhance minority shareholder rights, data showed Monday. According to Financial Supervisory Service data, a combined 45 KOSPI- and Kosdaq-listed companies made disclosures on their share cancellation plans from June 3 to Aug. 14, up 50 percent from the same period a year earlier. About 145.27 million shares worth over 5.8 trillion won ($4.1 billion) will be canceled, up 256 percent and 164 percent from the same period last year, respectively. Of the 45 cases, 30 were cancellation of shares previously bought back. Share buyback for cancellation means the total number of shares lowers, which translates into higher share prices. However, some firms bought company shares not for cancellation but as a means to protect the managerial rights of major shareholders, often those with controlling stakes. This led to some lawmakers pushing for revisions to the Commercial Act, requiring such purchased shares to be cancelled by law. The businesses say the m

Aug 18, 2025By Lee Kyung-min
More listed firms cancel shares amid shareholder return drives
Economy

Wealthy Koreans increasingly play lottery

An increasing number of high-income households purchased lottery tickets during the January-March period, unlike their low-income peers, data showed Sunday. According to Statistics Korea, the average lottery spending per household in the first quarter was 7,683 won ($5.53), up 4.9 percent from the same period last year. About 10.7 percent of all households bought lottery tickets, up 0.6 percentage points from the previous year. Households in the 40-60 percent income bracket spent the most, averaging 9,589 won, followed by the top 20 percent income group (9,208 won). The 60-80 percent bracket spent 7,140 won, followed by the 20-40 percent bracket (6,704 won), and the bottom 20 percent (4,252 won). Lottery spending rose 20.4 percent among the top 20 percent income group over the past year. The increase was 13.5 percent among the 20-40 percent group, and 9.5 percent among the 40-60 percent group. In contrast, spending fell by 32.1 percent among the bottom 20 percent and by 7.8 percent among the 20-40 percent group. The data suggests that wealthier individuals are increasingly turning to lotter

Aug 18, 2025By Lee Kyung-min
Wealthy Koreans increasingly play lottery
Economy

Expansionary fiscal policy feared to increase debt

Government debt is expected to rise, accelerated by the expansionary fiscal policy under the Lee Jae Myung administration, observers said Sunday. Further straining the fiscal outlook is Korea’s low potential growth, coupled with tariff uncertainties. This, along with years of tax shortfalls under the previous Yoon Suk Yeol administration, leaves debt financing as a source of government spending. Whether the expansionary fiscal drive can lead to growth and a subsequent increase in tax revenue remains to be seen. According to the National Assembly Budget Office and the Ministry of Economy and Finance, interest on the government bonds came to 28.2 trillion won ($20.2 billion) last year, up more than 51 percent from 18.6 trillion won in 2020. This marks an increase of around 10 trillion over four years, with the annual increase averaging 13 percent. The pace of year-on-year increases also picked up, driven by expansionary fiscal spending during the COVID-19 pandemic in 2020. The figure stood at 19.2 trillion won in 2021. It surpassed 21 trillion won in 2022 and rose to 24.6 trillion won in

Aug 17, 2025By Lee Kyung-min
Expansionary fiscal policy feared to increase debt
Economy

Insurance for short-term, minor incidents gain ground

Short-term small coverage insurance products, including travel insurance, golf insurance and pet insurance, are gaining popularity in the 20-39 age group, driven by low premiums and simple, mobile-mediated subscription processes, market watchers said Friday. According to the insurance industry, over 171,000 people subscribed to ALICE, a small-coverage insurance platform operated by Lotte Insurance, as of the end of June. Nearly half were in their 20s and 30s. Also popular is pet insurance offered by Carrot Insurance and Seoul Metro delay insurance offered by Samsung Fire & Marine Insurance. Meanwhile, the traveler's insurance market has grown 19 times over the past three years, driven by pent-up postpandemic demand for overseas tourism. Over 1.73 million subscribed to new travel insurance packages provided by nine non-life insurers in the first half of this year, up 32 percent compared to the same period last year. More than half of subscribers, or 54.6 percent, were in their 20s and 30s, followed by those in their 40s (21 percent). Domestic airports are also reporting a steady increase in

Aug 9, 2025By Lee Kyung-min
Insurance for short-term, minor incidents gain ground
Economy

Retail investors suffer poor returns in US market after KOSPI exodus

Retail investors who increased their holdings of U.S. stocks as an alternative to a bleak short-term outlook for the main bourse KOSPI are suffering losses due to high volatility in prices, market watchers said Friday. Many left for the U.S. market, frustrated by the recent tax law revision in Korea, including a return to stricter rules on capital gains taxes for “large shareholders.” The revision expands the scope of the definition to include investors holding 1 billion won or more in a single stock. Previously, the threshold was 5 billion won or more, eased during the former Yoon Suk Yeol administration. According to Korea Securities Depository, retail investors in Korean bought over $343.3 million (476 billion won) worth of U.S. stocks from Aug. 1 to 6. This was almost half the monthly total purchase of over $684.9 million in July. The U.S. stock market continues to hit new record highs. The S&P 500 index reached 6,427.02 on July 31 (local time) but has since been taking a breather for the past four days. The most popular U.S. stock purchased by retail investors in July was Bitmin

Aug 8, 2025By Lee Kyung-min
Retail investors suffer poor returns in US market after KOSPI exodus
Economy

Hopes rise for end to longest slump in Korea's domestic demand

Expectations are growing that Korea's weak domestic consumption will bottom out in the third quarter, as retail sales — one of the key barometers of consumer spending — are beginning to show signs of a rebound after remaining in negative territory for a record-long period, according to data released Sunday by Statistics Korea. Adding to the optimism is the Lee Jae Myung administration’s drive to boost spending through a cash equivalent handout of at least 150,000 won ($115) per person. According to Statistics Korea, the country's retail sales index for the April-June period declined 0.2 percent compared to the previous year. The year-on-year decline was the smallest since the slump in retail sales began in earnest in the second quarter of 2022, following the COVID-19 pandemic. The 13 consecutive quarters of decline mark the longest period of contraction since the statistics agency began compiling related data in 1995. The latest quarterly drop of 0.2 percent is considered relatively flat, especially compared to the steeper declines of 1 percent to 3 percent recorded between 2023 and

Aug 4, 2025By Lee Kyung-min
Hopes rise for end to longest slump in Korea's domestic demand
Economy

Foreign buying on KOSPI hits 17-month high, but market faces headwinds

Foreign investors net bought over 6.2 trillion won ($4.4 billion) on Korea’s main KOSPI bourse last month, the highest figure in 17 months, the Korea Exchange (KRX) said Sunday. However, market analysts expect a correction this month due to continued U.S. tariff uncertainties and weak earnings from domestic companies. According to the KRX, July’s foreign purchases of 6.28 trillion won was the highest monthly figure since February last year, when it surpassed 7.8 trillion won. The July figure is more than double June’s total of over 2.69 trillion won. After peaking at 7.8 trillion won in February last year, foreign investors’ net purchases slowed gradually, eventually turning to net selling in August that year. This selling trend continued for nine consecutive months until April this year. However, foreign buying resumed in May with net purchases of around 1 trillion won, marking a net-buying position for three straight months through July. According to Daishin Securities, the three months of optimism can be explained by the Lee Jae Myung administration’s drive to boost the stock

Aug 3, 2025By Lee Kyung-min
Foreign buying on KOSPI hits 17-month high, but market faces headwinds
Economy

Korea to expand tax incentives to bolster AI, future tech growth

The government will expand tax incentives for research and development and investments in three strategic future growth driver industries — artificial intelligence (AI), next-generation mobility and transportation — the Ministry of Economy and Finance said Thursday. This is part of the first tax revision announced by the Lee Jae Myung administration, which also includes adding five AI-based technologies to the list of Korea’s strategic asset technologies. It will classify data centers as industrial facilities to induce corporate investment in the AI sector. The government also seeks to expand long-term investment in innovative technologies and secure sustainability by fostering the AI sector. The revision will increase tax revenue by 35.6 trillion won ($25.6 billion) over the next five years. “Tax revenues have declined sharply over the past three years," First Vice Minister of Economy and Finance Lee Hyoung-il said during a press briefing at Government Complex Sejong on Tuesday. "Next year's tax plan will focus on restoring tax revenue while striking a balance between fiscal sus

Jul 31, 2025By Lee Kyung-min
Korea to expand tax incentives to bolster AI, future tech growth
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