The Korea Times

Each citizen to get at least $108.80 in prepaid vouchers

The government will hand out prepaid vouchers, ranging from 150,000 won ($108.80) to 500,000 won per person, as a part of its 30.5 trillion won supplementary budget, it announced Thursday. The voucher program is a part of efforts to stimulate consumption amid a sluggish economy. The government confirmed the extra budget plan, the first of its kind under President Lee Jae Myung, during a Cabinet meeting. It will submit the extra budget bill to the National Assembly next Monday, hoping to win approval by early July. Of the 30.5 trillion won, 20.2 trillion won will be earmarked for direct spending aimed at stabilizing people’s livelihoods and revitalizing businesses. The remaining 10.3 trillion won will be allocated to issue treasury bonds and make other advance efforts to curb an anticipated shortfall in 2025 tax revenue. The government said that out of the 20.2 trillion won, 10.3 trillion won will be allocated to the vouchers. The method of payment can be chosen from gift certificates, prepaid cards, debit cards or credit cards. No cash payments will be available. Individuals in the top

Jun 19, 2025By Yi Whan-woo

Each citizen to get at least $108.80 in prepaid vouchers

Banking & Finance

Mirae Asset launches first AI-assisted financial product

Mirae Asset Global Investments has released its first artificial intelligence (AI)-assisted financial product to cope with a greater reliance on AI among international investors, the company said, Wednesday. The Seoul-headquartered firm said Global X Investment Grade Corporate Bond ETF (GXIG) was developed through collaboration between its United States-based ETF subsidiary, Global X, and its AI unit, Wealth Spot. An ETF is a collection of securities, such as stocks or bonds, that trade on an exchange like a regular stock. GXIG selects and invests in high-demand corporate bonds based on insights from AI. In particular, it refers to the Bloomberg U.S. Corporate Bond Index in classifying investment-worthy bonds by sector, credit rating and maturity. “AI-based investment strategies are still uncommon in the ETF market, despite the vast, highly liquid nature of U.S. corporate bonds,” Mirae Asset Global Investments said. It expressed hope that GXIG thus can be a potential “game changer” and even a "killer product,” which refers to a product that is exceptionally successful and dominat

Jun 18, 2025By Yi Whan-woo

Mirae Asset launches first AI-assisted financial product

Economy

Why consumer sentiment improves despite economic downturn

Consumers in Korea appear to be opening up their wallets over growing optimism toward the Lee Jae Myung administration despite a protracted economic downturn that has long weakened purchasing power, according to economists, Wednesday. In addition, consumer sentiment is possibly beginning to improve as the political uncertainty that has haunted the Korean economy for months substantially eased after Lee began his term, June 4. The experts also said the upward trend on the stock market and surging home prices in Seoul, both associated with the Lee government’s policy direction, may be stimulating consumer spending. “The honeymoon effect is believed to be spreading to consumer sentiment,” Inha University economics professor Shin Il-soon said, referring to short-term increased economic performance after a change in leadership. Shin referred to rise in sales in the retail industry in the second week of June, which, according to him, “was appropriate timing to get a quick glance at the economic expectation toward the new administration.” Citing data provider Aicel, the professor said

Jun 18, 2025By Yi Whan-woo

Why consumer sentiment improves despite economic downturn

Policy

Veteran customs officer at center of joint anti-drug operation with Thailand

Kim Jun-hyoung, a veteran customs officer, has been at the center of a special joint crackdown between Korea and Thailand on drugs since the operation began in 2022. Titled SIREN, the annual operation is crucial in Seoul’s bid to regain its status as a drug-free country, as Thailand accounts for nearly half of the drugs that are smuggled into Korea. According to the Korea Customs Service (KCS), 45.6 percent of 787 kilograms of illegal drugs that it seized in 2024 were from Thailand. “I take my job seriously in planning the overall operation, including the timing and scope of the mission, as well as selection and dispatch of the KCS agents, which all need to be carefully coordinated with the Thai customs authorities,” Kim told The Korea Times in a recent interview. The interview came shortly after the fourth annual joint operation was carried out from March 1 to May 31. An operation coordination unit is set up at the two countries’ main gateways — Incheon International Airport and Suvarnabhumi Airport — when a sweeping crackdown takes place during a certain time of the year. The

Jun 18, 2025By Yi Whan-woo

Veteran customs officer at center of joint anti-drug operation with Thailand

Banking & Finance

Financial firms capitalize on popularity of baseball

Financial services companies are capitalizing on the popularity of baseball in their sales campaign, as the country’s professional baseball league is expected to draw a record number of fans this year. The possible 12 million attendance record comes just a year after the number topped the 10 million milestone for the first time since the league was created in 1982. Under these circumstances, credit card companies and banks are offering services that are themed on teams they have partnered with. The services include discounts on tickets, apparel and other souvenirs, as well as a higher-than-market deposit rate. Samsung Card customers who have a credit card named after the Samsung Lions can get a 50 percent discount on tickets to the Daegu-based team’s home games and merchandise shop purchases. They can also buy food and beverages inside the Daegu ball park at a 10 percent discount. To support long-distance fans, the card offers a 5 percent discount on railway fares, and a 5 percent discount when using travel platforms such as Yanolja or NOL. These benefits are available to users who spen

Jun 17, 2025By Yi Whan-woo

Financial firms capitalize on popularity of baseball

Banking & Finance

Banks rush to attract ‘young and rich’ with tailor-made services

Commercial banks are rushing to introduce tailor-made services for “young and rich” customers, a marketing term referring to those who are in their 40s or younger and have more than 1 billion won ($730,500) in financial assets. These customers accumulated wealth at a relatively young age, with some gaining fortune through successful business ventures, while others did so with high investment returns or inherited wealth. Lenders are seeking to woo them by identifying their lifestyle, hobbies and interests, as their numbers have grown in recent years. A KB Financial Group study showed the number of these customers reached 461,000 in 2024, a more than 30 percent increase from 2020. A separate study from Hana Bank showed that wealthy people in their 30s and 40s have been accumulating wealth twice as fast as older wealthy clients over the past five years. Under these circumstances, Woori Bank is offering a range of benefits for young, high-net-worth clients related to hotels, shopping and cultural experiences. For instance, targeted customers can receive a 5 percent discount on room packag

Jun 14, 2025By Yi Whan-woo

Banks rush to attract ‘young and rich’ with tailor-made services

Policy

Seoul housing market gets overheated over optimistic sentiment toward new gov’t

The housing market in Seoul is heating up, driven by optimism among would-be homebuyers that the new administration of President Lee Jae-myung will not rein in property prices with regulatory policies. But such hopeful sentiments can possibly go too far and result in a runaway housing market, experts warned Friday. They pointed to the Bank of Korea’s (BOK) rate-cutting cycle, an upward trend in the stock market and other favorable factors for increased liquidity that can push housing demand to outstrip supply. According to a Korea Real Estate Board survey, sales prices of apartments, the most popular form of housing in the country, rose 0.26 percent in Seoul in the second week of June from a week earlier. The survey was taken for the first time after Lee took office following the June 3 presidential election win. The 0.26 percent rise marked the steepest week-on-week increase in 2025. The board assessed that the increase was bolstered by the new government’s stance that, unlike previous liberal administrations, it would not try to control housing prices through taxation. The districts

Jun 13, 2025By Yi Whan-woo

Seoul housing market gets overheated over optimistic sentiment toward new gov’t

Policy

Small businesses unnerved by possible minimum wage hike under Lee gov’t

Small businesses and self-employed individuals are unnerved by a possible hike in next year’s minimum wage, after liberal President Lee Jae-myung took office last week, according to market experts, Thursday. The increase in the minimum wage has been considered in recent years as a key source of burden for millions of small businesses and self-employed individuals nationwide, who are struggling to stay afloat, they said. On Wednesday, labor unions proposed the 2026 minimum wage be set at 11,500 won ($8.46), up 14.7 percent from this year. The management side is yet to come up with a counterproposal, but is widely anticipated to demand the rate remains unchanged from this year’s 10,030 won. A 2024 survey taken by the Federation of Korean Industries (FKI), a business lobby group, on 500 self-employed individuals showed that 48 percent of respondents found the minimum wage to be burdensome to the sustainability of their businesses. The most recent data from Statistics Korea showed that about 986,000 small businesses shut down in 2023 in the middle of prolonged economic slowdown. That figu

Jun 12, 2025By Yi Whan-woo

Small businesses unnerved by possible minimum wage hike under Lee gov’t

Policy

Ruling party's move to restrict operations of large offline retailers faces criticism

The ruling Democratic Party of Korea (DPK) is raising concerns over its push to revive operational restrictions on large offline retailers in the name of protecting small retailers, as experts say the measure will only aggravate an already sluggish domestic demand. The DPK said the controversial move is in line with President Lee Jae-myung’s attempt to spur domestic demand, a key driver of Korea’s economic growth, through expansionary fiscal policy and financial support for self-employed individuals. But the experts say that reinstating the mandatory closure rule for discount store chains and supermarkets will hinder consumers from buying goods and services. The rule was imposed in 2012, requiring discount store chains and supermarkets to shut down every second and fourth Sunday of each month. Such restricted business hours were intended to protect traditional markets and mom-and-pop stores from losing sales. The regulation, however, did not necessarily induce consumers to turn to smaller retailers, especially amid a spending shift from offline to online. As a result, the relevant gui

Jun 12, 2025By Yi Whan-woo

Ruling party's move to restrict operations of large offline retailers faces criticism

Policy

CEOs appointed by ex-gov't rekindle leadership dispute at public organizations

The Lee Jae-myung administration may have to carry out state affairs with hundreds of CEOs and other top managers at state-run organizations who were appointed under the previous government, as they have considerable time remaining before their tenures expire. A finding from corporate tracker Leaders Index showed that more than seven out of 10 chiefs at 312 public entities have at least one year remaining in their terms. Out of the nation's 331 state-run organizations, the 312 include state firms, government-funded associations, research labs and think tanks. The top posts are vacant at the remaining 19 organizations. Leaders Index said 221 of the 312 public organization chiefs have more than one year left in their terms. Of the 221, 56 leaders were appointed after former conservative President Yoon Suk Yeol declared martial law on Dec. 3, 2024. Moreover, 53 of the 56 were appointed after the National Assembly passed a bill to impeach Yoon on Dec. 14. The finding suggests that Lee's government will need to work with these holdover leaders. But whether they will fully cooperate remains unc

Jun 10, 2025By Yi Whan-woo

Yi Whan-woo

Read more

Each citizen to get at least $108.80 in prepaid vouchers

Mirae Asset launches first AI-assisted financial product

Why consumer sentiment improves despite economic downturn

Veteran customs officer at center of joint anti-drug operation with Thailand

Financial firms capitalize on popularity of baseball

Banks rush to attract ‘young and rich’ with tailor-made services

Seoul housing market gets overheated over optimistic sentiment toward new gov’t

Small businesses unnerved by possible minimum wage hike under Lee gov’t

Ruling party's move to restrict operations of large offline retailers faces criticism

CEOs appointed by ex-gov't rekindle leadership dispute at public organizations

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