The Korea Times

Civil servant job demand among young Koreans falls to record low

The number of young Koreans aspiring to become civil servants — once coveted as an “iron rice bowl” for its lifetime job security — has dropped to a record low, data showed Monday. As of May, 129,000 Koreans aged 20 to 34 who were categorized as economically inactive were preparing for the entry-level Grade 9 and Grade 7 civil service exams, according to Korean Statistical Information Service (KOSIS), a website run by Statistics Korea. The figure marks a decline of 30,000 from a year earlier, extending a four-year downward trend and hitting the lowest level since data tracking began in 2017. Economically inactive individuals refer to people who are neither employed nor actively seeking work, a category that includes students as well as those preparing for exams. The 129,000 figure also represents a more than 50 percent drop from 2021, when entry-level civil service exam takers peaked at 313,000, driven in part by pandemic-era job insecurity in the private sector. The data indicates civil service jobs are losing appeal among young Koreans due to lower salaries compared to the priva

Aug 25, 2025By Yi Whan-woo

Civil servant job demand among young Koreans falls to record low

Others

Listed companies concerned about possible NPS pressure over fatal accidents

An increasing number of listed companies are concerned that the National Pension Service (NPS) may use its shareholder rights against them, as part of the government’s broader push to penalize firms involved in fatal workplace accidents, according to industry officials, Monday. The Lee Jae Myung administration has been considering new measures to enforce the Serious Accidents Punishment Act, which took effect in January 2022. The law dictates criminal liability for CEOs and senior executives in the event of one or more deaths, two or more injuries requiring over six months of treatment, or three or more occupational diseases within a year. In addition, the Lee administration has been reviewing non-criminal sanctions such as restrictions on corporate lending, exclusion from public procurement bids and other administrative actions that could severely impact company operations. Speculation is mounting that the government may leverage the NPS’ influence to press listed companies found responsible for fatal accidents. The NPS, a state-run pension operator, holds stakes of 5 percent or more

Aug 25, 2025By Yi Whan-woo

Listed companies concerned about possible NPS pressure over fatal accidents

Policy

Bill Gates' ODA request highlights Korea's inconsistent policy

Korea’s lack of consistency in official development assistance (ODA), which tends to shift with each change in government, is raising concerns following U.S. billionaire philanthropist Bill Gates’ request for increased contributions. ODA refers to foreign aid provided to developing countries, including grants, concessional loans and technical assistance aimed at promoting economic development and welfare. During a meeting with National Assembly Speaker Woo Won-shik, Thursday, Gates referenced the longstanding U.N. target, suggesting that Korea raise its ODA to 0.7 percent of its gross domestic product (GDP). He noted that Korea’s current ODA-to-GDP ratio remains below 0.3 percent and expressed hope that it would increase over time. Whether Korea can act on Gates’ request, however, remains uncertain, as ODA policy direction often fluctuates depending on the administration in power, according to experts. “The ODA policy varies between conservative and liberal administrations, making it difficult for Korea to meet the 0.7 percent target as a responsible member of the international

Aug 22, 2025By Yi Whan-woo

Bill Gates' ODA request highlights Korea's inconsistent policy

Economy

Korea to undergo sweeping AI integration for economic breakthrough

Korea will aggressively adopt artificial intelligence (AI) through 15 flagship projects spanning both public and private sectors, in a bid to help revitalize the sagging economy, the government said Friday. Private enterprises will lead the AI-driven transition in seven of the 15 projects — robotics, automobiles, shipbuilding, home appliances, drones, factory operations and semiconductors. The remaining eight projects will be led by the public sector, focusing on areas such as welfare, employment, taxation, clinical testing, talent development at home and abroad, public data sharing and research and development (R&D). The government said it chose AI integration as the centerpiece of the first economic policy initiative unveiled since President Lee Jae Myung took office on June 4, viewing it as the only viable path to reverse Korea’s accelerating economic decline. “The Korean economy may lose everything it has achieved over the past decades if we do not move quickly to pioneer an economic transition,” Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol said in

Aug 22, 2025By Yi Whan-woo

Korea to undergo sweeping AI integration for economic breakthrough

Policy

Companies linked to serious industrial accidents to be barred from public bids

Companies that have been involved in serious industrial accidents will be barred from bidding on government-contracted projects, the Ministry of Economy and Finance said Wednesday. The measure is in line with President Lee Jae Myung’s broader initiative to strengthen labor rights by improving workplace safety and increasing corporate accountability in cases of negligence. According to the ministry, the construction sector is expected to be most affected, as the nature of the work often exposes laborers to a higher risk of fatal accidents. Company executives have often been accused of evading responsibility for incidents. “A new qualification requirement related to safety will be added as a condition for eligibility in competitive bidding,” the ministry said in a statement. The ministry said the new rule was approved Wednesday during a committee meeting on public procurement policy chaired by Second Vice Minister of Economy and Finance Lim Ki-keun. “This approval reflects the government’s intent for the public sector to take the lead in strengthening safety measures in response t

Aug 20, 2025By Yi Whan-woo

Companies linked to serious industrial accidents to be barred from public bids

Others

Korea grapples with declining ATM use in rapid shift to cashless society

Park Eun-sook, a convenience store owner in Seoul’s financial district of Yeouido, says she increasingly considers removing the automated teller machine (ATM) that was installed in her store 15 years ago. “Back then, several people withdrew cash late at night on weekdays — usually for a couple of drinks at street stalls,” Park said, referring to vendors that serve snacks and alcoholic beverages from tents or other mobile structures. “But I hardly see those withdrawals anymore. Even the stalls, which used to accept only cash for convenience, now take credit cards or accept mobile bank transfers," she said. Park’s experience reflects a broader shift toward a cashless society, with ATM usage rapidly declining in Korea. According to data released by the Bank of Korea (BOK), Wednesday, the amount of cash withdrawn or transferred using ATMs and other cash machines totaled 12.07 trillion won ($8.62 billion) in June, a 10.7 percent decrease from a year earlier. The figure was the lowest since February 2000, when it was 10.97 trillion won. The number of ATM transactions also fell to 21

Aug 20, 2025By Yi Whan-woo

Korea grapples with declining ATM use in rapid shift to cashless society

Others

Dormant credit cards nearly double over fierce competition to woo customers

The number of credit cards that go unused after being issued has nearly doubled over the past five years, driven by fierce competition among card issuers to attract a larger and more diverse customer base through partnerships with top-tier business brands. According to the Credit Finance Association on Monday, the number of dormant credit cards — defined as those unused for over a year and temporarily suspended — reached 20.01 million across 19 financial firms in the first half of the year. This represents a near-twofold increase from 10.68 million in 2020, largely attributed to the surge in co-branded cards, or private label credit cards (PLCCs), which are designed to offer tailored benefits for purchases at specific partner companies with strong customer loyalty. Prominent partner brands include e-commerce giant Coupang, leading beauty retailer CJ Olive Young and coffeehouse chain Starbucks, among others. PLCCs typically feature the logo or design of the partner brand and provide deferred payment options, favorable payment terms, generous reward points and discounts on future purch

Aug 19, 2025By Yi Whan-woo

Dormant credit cards nearly double over fierce competition to woo customers

Policy

BOK governor draws criticism for 'overstepping' bank's traditional jurisdiction

The Bank of Korea (BOK) has been dispatching a larger number of employees to government ministries, the National Assembly, Korea’s diplomatic missions abroad and other institutions across both public and private sectors since Gov. Rhee Chang-yong became head of the central bank in 2022. The move reflects Rhee’s more outspoken approach, compared to his predecessors, in addressing the need for structural reforms to boost Korea’s growth potential. However, the initiative is also drawing criticism, with some arguing that the central bank chief may be overstepping the BOK’s traditional jurisdiction on monetary policy. According to BOK data, the number of employees dispatched to external organizations increased from 39 in 2021 to 49 in 2025. Notably, several institutions received BOK staff for the first time this year. Among the new destinations were the Presidential Committee for National Cohesion; Presidential Committee on Ageing Society and Population Policy; Ministry of Land, Infrastructure and Transport; and Ministry of Trade, Industry and Energy. These additions joined long-standin

Aug 18, 2025By Yi Whan-woo

BOK governor draws criticism for 'overstepping' bank's traditional jurisdiction

Policy

KOSPI remains in trading range, raises concern over momentum in 2nd half

The benchmark KOSPI is raising concerns about whether it is losing upward momentum, after recording its steepest rally in 26 years during the first half. So far this month, KOSPI has gained just 0.32 percent, trading sideways in a narrow range between 3,100 and 3,200 points. It currently ranks 22nd in performance among 30 major global indices. This lackluster showing stands in stark contrast to the first six months of the year, when KOSPI surged 28.04 percent, its quickest growth since 1999 and the strongest among all 30 global markets. Analysts said Sunday that the Korean stock market may lose steam for the remainder of 2025 unless the government delivers a consistent policy direction to address the longstanding “Korea discount” on valuations. “A return to higher capital gains taxes clearly defied market expectations and is now weighing on investor sentiment,” Roh Dong-gil, an analyst at Shinhan Securities, said. Roh was referring to the government’s recent tax code revision, which has drawn backlash from retail investors for reviving a controversial threshold on capital gains

Aug 17, 2025By Yi Whan-woo

KOSPI remains in trading range, raises concern over momentum in 2nd half

Policy

9 tourist destinations included in 'second home' policy to bolster housing markets with waning populations

Nine popular tourist destinations will be added to the list of rural cities and smaller regions with housing tax exemptions for second property purchases, according to government officials on Thursday. The new locations are Gangneung, Donghae, Sokcho and Inje in Gangwon Province; Iksan in North Jeolla Province; Gyeongju and Gimcheon in North Gyeongsang Province; and Sacheon and Tongyeong in South Gyeongsang Province. Announced during an economic ministers’ meeting on Thursday, these areas will join the existing list of 83 regions covered under the so-called “second home” policy. First introduced in 2024 under the Yoon Suk Yeol administration, the policy is aimed at combating depopulation in rural communities. It offers exemptions on three types of housing taxes — property tax, capital gains tax and the comprehensive real estate tax — to homeowners from outside the designated regions who purchase a second property in one of the areas covered by the policy. While all 83 regions are considered at risk of extinction, authorities were initially cautious about including popular touris

Aug 14, 2025By Yi Whan-woo

Yi Whan-woo

Read more

Civil servant job demand among young Koreans falls to record low

Listed companies concerned about possible NPS pressure over fatal accidents

Bill Gates' ODA request highlights Korea's inconsistent policy

Korea to undergo sweeping AI integration for economic breakthrough

Companies linked to serious industrial accidents to be barred from public bids

Korea grapples with declining ATM use in rapid shift to cashless society

Dormant credit cards nearly double over fierce competition to woo customers

BOK governor draws criticism for 'overstepping' bank's traditional jurisdiction

KOSPI remains in trading range, raises concern over momentum in 2nd half

9 tourist destinations included in 'second home' policy to bolster housing markets with waning populations

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