The Korea Times

Opposition leader criticizes gov't cash handouts scheme; president rejects 'populist' label

Main opposition People Power Party (PPP) Chairman Jang Dong-hyeok warned on Tuesday, that a plan for cash handouts in the government's latest supplementary budget bill could stoke pressure on inflation and the exchange rate. In response, President Lee Jae Myung rejected criticism that the policy was populist, saying it will help offset economic strains resulting from high oil prices amid the Middle East conflict. They exchanged views during a meeting that also involved ruling Democratic Party of Korea (DPK) Chairman Jung Chung-rae at Cheong Wa Dae in Seoul. It was the first meeting between the three since last September. Jang agreed on the need for the extra budget. Nevertheless, he disagreed with the cash support for the bottom 70 percent of Korea’s income earners, for which 4.8 trillion won ($3.19 billion) is allocated as part of the total 26.2 trillion won budget. The aid is aimed at helping people cope with rising energy costs and other expenses amid the prolonged U.S.-Israel war with Iran. The bill was endorsed by the Cabinet and now awaits parliamentary approval. The PPP chairman

Apr 7, 2026By Yi Whan-woo

Opposition leader criticizes gov't cash handouts scheme; president rejects 'populist' label

Foreign Affairs

Korea to send special envoys to Saudi Arabia, Oman, Algeria to secure alternative crude supplies

Korea will send special envoys to Saudi Arabia, Oman and Algeria to secure stable supplies of crude oil amid prolonged disruptions after the U.S. and Israel began their attacks on Iran Feb. 28, according to the government and the ruling party, Monday. The diplomatic move came as the Strait of Hormuz, the main passage for crude imports to Korea, has been effectively blocked, raising the need to secure alternative crude sources. “Securing alternative crude oil supplies is the most urgent task in the Middle East crisis,” Rep. Ahn Do-geol of the ruling Democratic Party of Korea (DPK) said after a meeting between the party and government officials from relevant ministries. “We will make every diplomatic effort to obtain crude oil. (As part of the efforts), the government and the party agreed to dispatch special envoys to three countries — Saudi Arabia, Oman and Algeria.” Ahn said Korean-flagged ships would be deployed on alternative routes for crude oil supply, noting the government plans to dispatch five Korean-flagged vessels to the Red Sea, specifically to the Saudi port of Yanbu

Apr 6, 2026By Yi Whan-woo

Korea to send special envoys to Saudi Arabia, Oman, Algeria to secure alternative crude supplies

Politics

President labels Korea's energy crisis as 'war-like situation' with no end in sight

President Lee Jae Myung described people’s livelihoods as being in a “war-like situation” amid a looming energy crisis stemming from the conflict in the Middle East, saying that the crisis shows no clear signs of ending. To help mitigate the risks on the Korean economy, the president called for bipartisan support for swift approval of a 26.2 trillion won ($17.24 billion) supplementary budget. Lee’s evaluation of the situation came in his Thursday budget speech at the National Assembly in Seoul. “The government recognizes this crisis as an economic ‘war-like situation’ and is mobilizing all available resources to overcome the challenges at hand,” the president said. “It is not a passing shower — it is a massive storm of uncertain duration," he said. "Even if the war were to end tomorrow, it will take considerable time to restore damaged energy infrastructure in the Middle East and return to supply stability.” He said the country must prepare a more thorough and resilient response, calling the budget a “breakwater” protecting people from the waves of the crisis, as

Apr 2, 2026By Yi Whan-woo

President labels Korea's energy crisis as 'war-like situation' with no end in sight

Foreign Affairs

Korea, Indonesia to boost energy security cooperation

The leaders of Korea and Indonesia agreed to expand their bilateral partnership in energy security and defense, Cheong Wa Dae said Wednesday. The two nations also signed memorandums of understanding (MOUs) in 16 sectors, including critical minerals and renewable energy, in line with the summit between President Lee Jae Myung and Indonesian President Prabowo Subianto during the latter’s state visit to Seoul. The much-awaited deal on Indonesia’s purchase of Korean-made KF-21 fighter jets, however, was not announced this time, with expectations of the announcement in the coming months. Lee told Subianto that Indonesia’s stable supply of liquefied natural gas (LNG), coal and other key energy sources is “extremely reassuring” amid disruptions to global energy supply chains due to the conflict in the Middle East. “Our partnership is a blessing to both nations in times of global uncertainty and multiple challenges … It is crucial that we expand cooperation in energy security to minimize the impact of this crisis on our economies and people’s lives,” Lee said. In line with this,

Apr 1, 2026By Yi Whan-woo

Korea, Indonesia to boost energy security cooperation

Politics

From bakery cafes to sham relocations, Lee moves to close policy loopholes

President Lee Jae Myung is turning his attention to a string of policy loopholes being exploited against their original intent — from corporate loans used to bypass housing borrowing caps and family-run bakery cafes claiming inheritance tax breaks meant for long-established businesses to companies making token relocations to rural areas to claim regional tax exemptions. Analysts say the pattern reflects Lee's governing style, forged over a career that began in local municipal administration and later expanded through progressively larger regional roles before his election as president in June 2025. “Lee, compared with several previous presidents, is recognized for being well-informed about both the broad and narrow aspects of affairs,” a political analyst said, Tuesday, on condition of anonymity. The analyst said that this trait was built over Lee's political career, from serving as mayor of Seongnam and then governor of Gyeonggi Province, before being elected president. “This quality enables him not only to present general directions but also to provide detailed guidance, as see

Mar 31, 2026By Yi Whan-woo

From bakery cafes to sham relocations, Lee moves to close policy loopholes

Politics

President to hold summits with Indonesian, French leaders in Seoul

President Lee Jae Myung will meet the leaders of Indonesia and France this week to discuss bilateral topics as well as global issues ranging from defense and artificial intelligence development to supply chains and tensions in the Middle East. Cheong Wa Dae said Monday that Indonesian President Prabowo Subianto will visit Seoul from Tuesday to Thursday, followed by French President Emmanuel Macron from Thursday to Friday. Both will be on state visits. Lee’s bilateral summit with Subianto is expected to focus on defense cooperation, particularly on the KF-21, Korea’s first domestically developed fighter jet, which began mass production last Wednesday. Indonesia is expected to be the KF-21’s first export destination, with reports saying the country is likely to purchase 16 jets. Lee previously met Subianto at last year’s Asia-Pacific Economic Cooperation Economic Leaders’ Meeting in Gyeongju, North Gyeongsang Province, where the two discussed a special strategic partnership focusing on defense, trade, infrastructure and people-to-people exchanges. “This week’s meeting is expec

Mar 30, 2026By Yi Whan-woo

President to hold summits with Indonesian, French leaders in Seoul

Foreign Affairs

Korean ships' ties to US companies keep outlook bleak for Hormuz passage

The outlook for Korean ships' passage through the Strait of Hormuz remains bleak, as Iran’s envoy to Seoul said Korean vessels may pass only if they are not associated with the United States, while many domestic refiners are closely tied to U.S. companies, security and international trade analysts said Friday. As one of the world’s most critical energy chokepoints, the strait handles about 70 percent of Korea’s imported crude. According to the shipping industry, a total of 26 Korean‑flagged vessels, most of them oil and petroleum product carriers, are tied up in the Persian Gulf as Iran effectively controls the strait amid a widening conflict with the U.S. and Israel. The outlook followed Thursday's press conference in Seoul, where Iranian Ambassador Saeed Koozechi identified Korea as “non‑hostile,” in line with Tehran’s earlier announcement that coordinated ships from the country may transit the strait. But the envoy said passage would be conditional, noting that it is “only possible through prior agreement” and that “any activities serving the interests of the U

Mar 27, 2026By Yi Whan-woo

Korean ships' ties to US companies keep outlook bleak for Hormuz passage

Politics

Korea to raise oil price cap starting Friday as energy crisis looms

The government will raise its ceiling on oil prices to take effect Friday, as increasing international oil prices are making it difficult to retain the current cap implemented two weeks ago. It announced the scheme to stabilize costs on Thursday, following a cross-ministerial meeting at Cheong Wa Dae to assess the impact of the heightened Middle East conflict on Korea’s economy. According to the government, the prices per liter will rise from 1,724 won ($1.15) to 1,934 won for gasoline, from 1,713 won to 1,923 won for diesel and from 1,320 won to 1,530 won for kerosene, in its second round of biweekly price updates since March 13. The decision was based on the international price increases and their impact on citizens’ daily lives. The new pricing comes alongside a series of measures to ease financial pressure on drivers and industries amid oil supply disruptions. These measures include expanded fuel tax cuts — from 7 percent to 15 percent for gasoline and from 10 percent to 25 percent for diesel — and efforts to secure alternative liquefied natural gas (LNG) suppliers, followin

Mar 26, 2026By Yi Whan-woo

Korea to raise oil price cap starting Friday as energy crisis looms

Politics

Where to draw line on Lee's push to bar officials with multiple homes from housing policymaking?

President Lee Jae Myung is pushing to exclude officials who own multiple homes from participating in housing policymaking, with analysts backing the move on credibility grounds while underscoring the need for clear criteria. Multi-home ownership among high-ranking bureaucrats has long been a source of controversy for housing reform in any administration, as such behavior is blamed for rising prices, fueling controversy over a perceived double standard. Barring such officials is crucial for credibility and transparency, political and real estate analysts said. However, they stressed that well-defined criteria are needed to determine which officials should be covered by the directive. They warned that without such guidelines, the move could lead to setbacks due to manpower shortage, with hundreds of officials potentially affected. “The president has a justifiable rationale — ‘I’ve sold mine, so you should too’ — in pushing bureaucrats with more than one home to sell, or be kept out of housing policy,” Shin Yul, a political science professor, said. Kwon Dae-jung, a real estate

Mar 26, 2026By Yi Whan-woo

Where to draw line on Lee's push to bar officials with multiple homes from housing policymaking?

Defense

KF-21 fighter jet begins mass production

Korea rolled out the first KF-21 Boramae fighter jet to come off the assembly line, Wednesday, marking the culmination of a 25-year development program and the beginning of a new chapter for the country's defense industry. President Lee Jae Myung attended a ceremony for the beginning of mass production on the domestically developed jet in Sacheon, South Gyeongsang Province, Wednesday, highlighting the achievement in the country’s long-standing aspiration for self-reliance in national defense. Sacheon is home to Korea Aerospace Industries (KAI), the defense company that has jointly led the project over the past 25 years with other stakeholders such as Hanwha Aerospace, Hanwha Systems, the Air Force and the Agency for Defense Development. The president said the government will capitalize on the KF-21's success as a “solid foundation” as part of the nation's vision to become one of the world’s top four defense-industrial powers, while expanding investment in relevant industries and strengthening cooperation with partner countries. “The fighter jet standing proudly before you embod

Mar 25, 2026By Yi Whan-woo

Yi Whan-woo

Read more

Opposition leader criticizes gov't cash handouts scheme; president rejects 'populist' label

Korea to send special envoys to Saudi Arabia, Oman, Algeria to secure alternative crude supplies

President labels Korea's energy crisis as 'war-like situation' with no end in sight

Korea, Indonesia to boost energy security cooperation

From bakery cafes to sham relocations, Lee moves to close policy loopholes

President to hold summits with Indonesian, French leaders in Seoul

Korean ships' ties to US companies keep outlook bleak for Hormuz passage

Korea to raise oil price cap starting Friday as energy crisis looms

Where to draw line on Lee's push to bar officials with multiple homes from housing policymaking?

KF-21 fighter jet begins mass production

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