Economy - The Korea Times

Wedding costs in capital area 1.7 times higher than in rest of country

The cost of getting married in Seoul and the greater capital area is 11.54 million won ($8,200) higher — or about 1.7 times more — than in the rest of the country, largely driven by prices in Seoul’s upscale southern districts, such as Gangnam, a report showed Tuesday. Based on a survey of 504 wedding service companies nationwide conducted from Aug. 18 to 29, the Korea Consumer Agency reported that couples in Seoul, Incheon and Gyeonggi Province spent an average of 26.65 million won on weddings. In comparison, couples outside the capital region spent an average of 15.11 million won — a difference of 11.54 million won, making a wedding in Seoul roughly 1.7 times higher in price. Compared to June, wedding costs in the capital region rose by 4.3 percent in August, while costs in regions outside the capital area fell by 1.9 percent. The pace of increase in the capital area also outpaced the national average, which saw a 4.1 percent rise to 21.6 million won. The agency said that the increase in capital-region wedding costs was largely driven by a 5.2 percent rise in Gangnam, where aver

Sep 30, 2025By Yi Whan-woo

Wedding costs in capital area 1.7 times higher than in rest of country

Korean investors flock back to US stocks over market uncertainty

Korean investors are increasingly turning to U.S. equities as volatility in the domestic stock and currency markets intensifies, fueled by stalled trade talks between Korea and the United States. According to data from the Korea Securities Depository, Korean investors poured $1.34 billion into U.S. stocks from Sept. 19 to 25. This represents a nearly 14-fold surge from just $96 million the previous week, highlighting a sharp pivot in investment behavior. In constrast, data from the Korea Financial Investment Association showed that investor deposits increased steadily in that same date range to reach 75.99 trillion won ($53.89 billion). Investor deposits refer to the total balance that investors hold in their brokerage accounts, meaning they are idle funds waiting to be invested in the stock market. They typically increase in proportion to expectations for future stock market gains. Analysts say the sudden capital shift reflects growing concerns over the Korean stock market’s stability, as expectations of a continued rally were undermined by rising uncertainties. The benchmark KOSPI, whic

Sep 28, 2025By Yi Whan-woo

Korean investors flock back to US stocks over market uncertainty

Chipmaker-led KOSPI rally raises questions about broader investor benefits

The benchmark KOSPI is on a record-breaking rally, but whether the gains are broadly benefiting investors remains uncertain, as more than one-third of the gains are driven by just Samsung Electronics and SK hynix, analysts said Wednesday. Since Sept. 15, the main index has largely closed above the 3,400-point mark — a level it had never previously reached — after breaking a record that held for more than four years with a close of 3,314.53 on Sept. 10. Notably, KOSPI recorded back-to-back all-time closing highs earlier this week, ending at 3,468.65 on Monday and 3,486.19 on Tuesday, before slipping 0.4 percent to 3,472.14 on Wednesday. According to Korea Exchange (KRX) data, KOSPI rose 52.6 percent as of Monday from its 52-week intraday low of 2,284.72 on April 9, which was caused by concerns over tariffs imposed by the U.S. government on Korean imports. Over the same period, the total market capitalization of roughly 830 KOSPI-listed companies rose by 975.31 trillion won ($698.45 billion), from 1,880.17 trillion won to 2,855.48 trillion won. “But such impressive gains can be mislea

Sep 24, 2025By Yi Whan-woo

Chipmaker-led KOSPI rally raises questions about broader investor benefits

Regional banks see delinquency rates rise as economic polarization deepens

Commercial banks that serve customers primarily in provincial areas are facing rising delinquency rates, as more borrowers fall behind on past due loan payments amid deepening economic divides. The challenging business environment for these regional lenders is in stark contrast with larger banks based in the Seoul metropolitan area, as well as fast-growing internet-only banks. Data compiled by four major regional lenders — Busan Bank, Kyongnam Bank, Jeonbuk Bank and Kwangju Bank — reported an average delinquency rate of 1.07 percent for the first half of the year. The rate rose from 0.61 percent from a year earlier, exceeding the 0.34 percent average recorded by the country’s four largest commercial banks operating nationwide — KB Kookmin, Shinhan, Hana and Woori. The 1 percent rate is widely considered the psychological red line for banking stability, industry officials said Wednesday. They said the breach reflects growing pressure on regional economies, where small and medium-sized enterprises (SMEs) and self-employed borrowers, the backbone of local lending, are increasingly st

Sep 24, 2025By Yi Whan-woo

Regional banks see delinquency rates rise as economic polarization deepens

Public sentiment cold toward bank employees’ planned strike

A nationwide strike planned by the Korea Financial Industry Union — composed largely of bank employees — is facing public backlash, as its demand for shorter working hours is being criticized as excessive. The union says it will stage a walkout Friday if management does not accept its proposal for a 4.5-day workweek. It is also calling for a 5 percent wage increase. The announcement has sparked negative reactions on social media, with many users criticizing the move as self-serving and neglectful of customer service responsibilities, while citing the high salaries and generous benefits enjoyed by its workers. According to the Financial Supervisory Service, employees at commercial, provincial and state-run banks earned an average annual salary of 112 million won ($80,400). Much of this income is driven by interest profits, which have often been labeled as windfall gains, especially at a time when many borrowers are struggling with high interest rates. Under the union’s proposal, banking hours could be reduced from the current 9 a.m. to 4 p.m. on weekdays, further limiting access to i

Sep 22, 2025By Yi Whan-woo

Public sentiment cold toward bank employees’ planned strike

Rising foreign tourist numbers help revive Myeong-dong’s storefront occupancy rates

A surge in foreign tourism is driving renewed demand for retail and office space in Seoul’s iconic shopping district of Myeong-dong, where the vacancy rate has plummeted from 52.5 percent to just 4.9 percent, data showed Sunday. Data released by real estate services firm Cushman & Wakefield Korea showed that only 4.9 percent of storefronts in Myeong-dong were vacant in the second quarter of 2025. This marks a significant improvement compared to the second quarter of 2022, when 52.5 percent of stores were vacant due to the COVID-19 pandemic and restrictions on overseas tourism. The current vacancy rate is now roughly one-tenth of what it was during the pandemic’s peak. The dramatic change comes as a result of the number of foreign tourists hitting a record 8.83 million in the first half of 2025. This surge in tourism represents a 14.6 percent increase from the same period last year and a 4.6 percent rise over the previous high of 8.44 million, set in the first half of 2019, before the COVID-19 pandemic. The welcome revival in storefront occupancy has been driven largely by beauty and li

Sep 22, 2025By Yi Whan-woo

Rising foreign tourist numbers help revive Myeong-dong’s storefront occupancy rates

Adding prestige to K-goods: 'Golden Pen' crafted with currency by-products

The global craze for K-goods is reaching new heights, following the worldwide popularity of K-pop, K-dramas, K-movies, K-beauty and K-food. Recently, the international success of Netflix’s animated film "KPop Demon Hunters" has further boosted demand for cultural products from Korea. As this demand grows, the market has shifted from simple souvenirs to premium goods that carry real meaning and value. In line with this trend, the Korea Minting, Security Printing & ID Card Operating Corporation (KOMSCO) launched its “Golden Pen,” setting a new standard for K-goods and winning a positive consumer response. The most distinctive feature of the Golden Pen is the inclusion of currency by-products equivalent to one 50,000-won banknote, embedded in the upper part of the pen. Traditionally, by-products generated during the banknote manufacturing process are destroyed by incineration. However, KOMSCO took an innovative approach by including them in a premium product. This rare material, attainable only through the currency-making process, was reimagined into a pen with an elegant golden desig

Sep 21, 2025By Woo Jin-goo

Adding prestige to K-goods: 'Golden Pen' crafted with currency by-products

Life insurers turn to asset management for new revenue stream

In response to declining profitability stemming from increased life expectancy and broader demographic shifts, life insurance companies are increasingly expanding into asset management as an alternative revenue stream, industry officials said on Thursday. The officials said the strategic shift toward asset management has been accelerated by stricter financial reporting standards, particularly the adoption of International Financial Reporting Standard 17 (IFRS 17) in 2023. Developed by the London-based IFRS Foundation, IFRS 17 places greater emphasis on the rigorous accounting and transparent reporting of asset management activities in the financial statements of insurance companies. According to the Financial Supervisory Service (FSS), the net profit of 22 life insurers nationwide amounted to 3.33 trillion won ($2.4 billion) in the first half of 2025. The amount was 311.6 billion won lower than the previous year, mainly due to a decline in underwriting profits — the core business function of assessing risks when providing coverage to policyholders. On the other hand, the life insurers h

Sep 19, 2025By Yi Whan-woo

Life insurers turn to asset management for new revenue stream

Counterfeit Chinese yuan surges in Korea as more Chinese visit

The circulation of forged Chinese yuan banknotes has increased in Korea, with the reported amount in the first half of this year already exceeding the total for all of 2024, data showed Tuesday. This rise coincides with a rebound in Chinese tourist arrivals, which have recovered to over 90 percent of pre-COVID 19 pandemic levels. According to data compiled by the Bank of Korea and submitted to Rep. Park Sung-hoon of the People Power Party, commercial banks reported a total of $800 in counterfeit Chinese yuan to the central bank in the first half of this year. The amount has already surpassed the $700 reported for 2024. The increase suggests this year's total could exceed the annual amounts recorded over the past four years, including $1,000 in 2021, $900 in 2022, and $800 in 2023. The upward trend in counterfeit yuan detected in Korea contrasts with an overall decline in reported counterfeit foreign currencies, totaling $38,300 from January to June this year and representing less than half of last year’s annual total of $87,800. The data also showed a significant increase in the number o

Sep 16, 2025By Yi Whan-woo

Counterfeit Chinese yuan surges in Korea as more Chinese visit

Breach of accounting rules could disrupt SK ecoplant's IPO plan

SK ecoplant has repeatedly been found to have breached accounting rules by overstating earnings, with a new judgment from the Securities and Futures Commission (SFC) adding to concerns over its plan to go public, according to industry officials Thursday. Operating under the Financial Services Commission, the country’s top financial regulator, the SFC said Wednesday that SK ecoplant committed “gross negligence” in reporting the sales and operating profit of its U.S. subsidiary for 2022 and 2023. This follows an earlier finding by the Financial Supervisory Service (FSS), which concluded that the company had “intentionally” exaggerated the same 2022-23 performance figures. Violations of accounting standards are classified by severity into three categories — simple negligence, which refers to minor mistakes without intent; gross negligence, which refers to serious carelessness; and intentional misconduct, which refers to deliberate falsification. Judged as having committed gross negligence, SK ecoplant will face disciplinary action, including a recommendation to dismiss the respo

Sep 11, 2025By Yi Whan-woo

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