The Korea Times

Conflicting financial policies raise concern over banking operations

President Lee Jae Myung’s financial policies are drawing concern for being contradictory — tightening market controls on one hand, while underlining the need for co-prosperity among firms, investors and other market stakeholders on the other. According to economists and industry officials on Friday, these conflicting policy demands are hitting banking groups the hardest. They noted that the demands involve mortgage loans, deposit-loan interest rate gaps, shareholder dividends and debt forgiveness — all of which directly impact banking operations. “I’d say the Lee administration’s financial policies are simply a paradox of administrative control over finance,” an economics professor said on condition of anonymity. “Policies that try to regulate finance while also demanding market-friendly interest rate structures are significantly out of touch with reality," he added. He was referring to the government’s pressure on commercial banks to lower lending rates and raise deposit rates — a move that aligns with rising public criticism of banks for allegedly “reaping excessiv

Aug 8, 2025By Yi Whan-woo

Conflicting financial policies raise concern over banking operations

Policy

Foreign homeowners face scrutiny for suspected tax evasion in purchasing high-priced homes

The National Tax Service (NTS) has launched a crackdown on foreign homeowners who are suspected of evading taxes in purchasing and owning high-priced homes in Korea, the NTS announced Thursday. The tax agency said a total of 49 foreign nationals from 12 countries — with about two-thirds from the United States and China — are under investigation for allegedly exploiting loopholes in Korean housing regulations to avoid paying taxes. The amount suspected to have been evaded totals between 200 billion won ($144.86 million) and 300 billion won. More than 70 percent of the roughly 230 properties purchased by these individuals are concentrated in three affluent districts in southern Seoul — Gangnam, Seocho and Songpa. All of the properties involved were apartments, which remain the most popular form of housing in Korea. Some of these apartments are currently valued at over 10 billion won. The crackdown comes amid growing public anger and controversy over the fairness of home ownership between Korean citizens and foreign nationals. Korean home buyers face increasingly strict lending regulati

Aug 7, 2025By Yi Whan-woo

Foreign homeowners face scrutiny for suspected tax evasion in purchasing high-priced homes

Others

Main bourse operator faces challenges in extending trading hours

The Korea Exchange (KRX) is considering longer trading hours for its stock exchanges, but the shift would require a substantial overhaul of the operational system it has had in place for decades, according to industry officials, Friday. The KRX-governed benchmark KOSPI and secondary Kosdaq currently run from 9 a.m. to 3:30 p.m. on weekdays. The KRX wants to extend this window to 12 hours — from 8 a.m. to 8 p.m. — in what is seen as a bid to grapple with faster-than-expected growth of Nextrade as the country’s first alternative stock exchange. Nextrade, co-owned by the Korea Financial Investment Association and seven major securities firms, already accounts for more than 30 percent of the country’s entire stock trading volume since its launch on March 4. The number of traded stocks also increased from 10 to more than 800, including top-performing companies on both the KOSPI and Kosdaq. The pace of Nextrade’s growth was not widely anticipated after it started with the goal of breaking the KRX’s long-standing monopoly, in place since its launch in 1956. Nextrade runs for 12 hours,

Jul 25, 2025By Yi Whan-woo

Main bourse operator faces challenges in extending trading hours

Banking & Finance

MetLife chief underlines importance of Korea market

MetLife will stay focused on fulfilling the needs of Korean customers on its path to widen its customer base worldwide, according to company President and CEO Michel Khalaf. Khalaf made the remarks during his third visit to Korea, after serving as the head of the New York-headquartered, multinational insurer since 2019. MetLife has been eyeing Korea for its significant increase in life expectancy, which offers a wide range of sales opportunities concerning its products, including life insurance, health insurance and disability insurance. As of 2023, life expectancy in Korea was 83.5 years, some 3.2 years longer than the OECD average. "For 157 years, MetLife has focused on delivering value to our customers and on helping more people build confident futures,” Khalaf said. The company has approximately 90 million customers in over 60 countries. He said as people look to improve their health and well-being amid their longer lifespans, MetLife can offer its expertise and innovation to enhance the "healthspans" of Koreans. The Seoul branch of the company, MetLife Korea, has set the goal of bec

Jul 24, 2025By Yi Whan-woo

MetLife chief underlines importance of Korea market

Policy

Tax hike policies feared to derail Lee's pledge to push KOSPI above 5,000

The government is facing a dilemma over its plan to hike the capital gains tax on stock investments, which could undermine the benchmark KOSPI from reaching a 5,000-point milestone as pledged by President Lee Jae Myung, economists said Thursday. The Ministry of Economy and Finance is considering tighter rules on capital gains taxes by lowering the minimum gains from the current 5 billion won ($3.65 million) to 1 billion won. Aimed at securing tax revenues, this plan is a revival of the 2017-22 Moon Jae-in administration’s policy that went after major shareholders to collect more taxable income. A higher capital gains tax, however, has been considered a culprit behind the longstanding discount in stock market valuations, as major shareholders dumped their shares at year’s end to avoid taxation. The unloaded amount was large enough to rattle the market. In 2023, then-President Yoon Suk Yeol raised the capital gains tax threshold from 1 billion won to 5 billion won to enliven investor sentiment. “Against this backdrop, it is easily predictable that major shareholders will unload their

Jul 24, 2025By Yi Whan-woo

Tax hike policies feared to derail Lee's pledge to push KOSPI above 5,000

Others

Companies cautious about going public despite bull market

Not a single company moved toward initial public offering (IPO) so far this month — a surprise considering the stock market has been bullish and supposedly offers a favorable atmosphere for IPOs, government data showed Wednesday. Industry officials said unlisted companies are prudent about going public due to toughened rules on IPOs, which took effect on July 1 to prevent fraudulent firms from deceiving investors. Data compiled by the Financial Supervisory Service (FSS) showed that the financial watchdog has not received any submissions of a required preliminary document for an unlisted company to go public since July 1. The document, called a securities registration statement, includes detailed information about the company, its operations, financial health, management and associated risks, and enables potential investors to make informed decisions. Prior to an IPO, companies should submit a preliminary review application to the Korea Exchange. The company must also undergo other processes, such as institutional investor-led demand forecasting, public offering subscription and allotmen

Jul 23, 2025By Yi Whan-woo

Companies cautious about going public despite bull market

Policy

More foreigners own homes in Seoul as Koreans face tightened lending rules

More foreigners are buying homes in Seoul in the wake of the government’s latest lending rule that only makes it tougher for Koreans to own a house, government data showed Wednesday. Compiled by the Supreme Court, the data deals with registered transactions, legal ownership rights and other information concerning real estate nationwide. It reported a total of 120 cases of foreigners purchasing homes in the capital city from July 1 to 18, up 14.3 percent from a month earlier. By nationality, the buyers included 57 Chinese, 35 Americans and eight Canadians. In contrast, the number of home purchases by Koreans dropped 27.2 percent to 7,632 over the same time period. The drop came after government measures to limit the cap on mortgage loans up to 600 million won ($435,500) came into effect on June 27. It was intended to curb rising home prices in Seoul, which soared as part of a “honeymoon effect” after President Lee Jae Myung took office on June 4. The measure was unusually aggressive, because, unlike previous lending rules, it restricted the maximum loan amount regardless of buyers’

Jul 23, 2025By Yi Whan-woo

More foreigners own homes in Seoul as Koreans face tightened lending rules

Economy

Lee government moves toward tax hike policies

The government is on course to hike various types of taxes in a bid to finance President Lee Jae Myung’s campaign policies, according to economists Tuesday. A return to higher tax policies for “the haves” has been outlined by Lee’s top economic policymaker, Koo Yun-cheol, in the administration’s first move to increase tax revenue after years of shortfalls in taxable income. In addition, speculation is growing that the government will levy taxes in areas currently excused from taxation, such as investments in digital assets and purchases through overseas online malls. Koo addressed the need to raise the cap on the corporate tax rate from the current 24 percent to 25 percent during his confirmation hearing last week to become the deputy prime minister and minister of economy and finance. He also mentioned the need to tighten the rules for stock investments, enforcing capital gains taxes by lowering the minimum gains from the current 5 billion won ($3.6 million) to 1 billion won. The maximum corporate rate of 25 percent and capital gains tax threshold of 1 billion won were previous

Jul 22, 2025By Yi Whan-woo

Lee government moves toward tax hike policies

Banking & Finance

KB Insurance invites recognized physician for hands-on lecture on well-being

KB Insurance invited a widely recognized sports medicine physician for a special hands-on lecture aimed at teaching effective stretching exercises to its new recruits, the company said Monday. With participation from 20 new employees, the lecture was organized under a belief that healthy minds and bodies empower employees to deliver greater value to customers with confidence. The lecture was run by Kim Jin, a seasoned veteran who has trained more than 1,000 physicians and fitness professionals over the past 15 years after earning a doctoral degree in sports medicine at Kyung Hee University. He has built extensive expertise on helping people correct and reinforce their postures, especially for those who work long hours at a desk, based on years of data compiled from the fitness center he runs. In particular, he regularly runs wellness programs for companies in both private and public sectors. The lecture lasted for an hour at the corporate training center in Suwon, Gyeonggi Province. The lecture was divided into three stages — physical assessment, self-correction and a before-and-after c

Jul 21, 2025By Yi Whan-woo

KB Insurance invites recognized physician for hands-on lecture on well-being

Economy

Torrential rain adds to concerns over soaring food prices

Record-breaking torrential rain is raising concerns that food prices could increase further after they were previously affected by scorching heat, putting upward pressure on consumer inflation, according to economists, Monday. The heavy rainfall lasted from Wednesday to Sunday. The average amount of rain per day in many regions nationwide was unusually massive — an amount that occurs only once in 200 years, according to the Korea Meteorological Administration. The Ministry of Agriculture, Food and Rural Affairs estimated that a total of 24,247 hectares (242.47 square kilometers) of farmland across the country were flooded. The size of these farmlands is equivalent to 39.6 percent of the size of Seoul. They produce a range of vegetable and fruit crops, which already experienced rising prices after yields were disrupted by one of the country’s most intense heat waves earlier this month. “The damage from heavy rain following the heat wave is feared to accelerate price hikes of temperature-sensitive foods and add to the woes of the people’s livelihoods,” said Jung Ho-chul of the Cit

Jul 21, 2025By Yi Whan-woo

Yi Whan-woo

Read more

Conflicting financial policies raise concern over banking operations

Foreign homeowners face scrutiny for suspected tax evasion in purchasing high-priced homes

Main bourse operator faces challenges in extending trading hours

MetLife chief underlines importance of Korea market

Tax hike policies feared to derail Lee's pledge to push KOSPI above 5,000

Companies cautious about going public despite bull market

More foreigners own homes in Seoul as Koreans face tightened lending rules

Lee government moves toward tax hike policies

KB Insurance invites recognized physician for hands-on lecture on well-being

Torrential rain adds to concerns over soaring food prices

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