Economy - The Korea Times

Seoul prepares for possible release of oil reserves amid threats to close Hormuz strait

The state-run Korea National Oil Corp. (KNOC) said Monday it is closely monitoring the global oil supply and preparing for the possible release of oil reserves following reports that Iran is pushing to close the Strait of Hormuz. "We began 24-hour monitoring of changes in international oil prices and the circumstances surrounding the domestic and overseas petroleum markets, while checking our step-by-step response system," the KNOC said in a press release. The KNOC added it has conducted an emergency on-site inspection to prepare for possible release of national oil reserves. Korea currently has oil reserves that could last approximately 206.9 days, well above the recommended volume by the International Energy Agency, according to the KNOC. Concerns have been growing over possible disruptions in global oil supply after Iran's state-run Press TV reported that the country's parliament approved a plan to close the Strait of Hormuz, a key waterway for shipping crude oil from the Persian Gulf to the rest of the world, in response to attacks on Tehran's nuclear facilities by Israel and the Uni

Jun 23, 2025By Yonhap

Seoul prepares for possible release of oil reserves amid threats to close Hormuz strait

Korea’s gender pay gap is the world’s worst. Will transparency fix it?

Korea holds many firsts. But not all are worth celebrating. Since joining the OECD in 1996, the country has consistently ranked first among member nations for its gender pay gap. According to the most recent OECD data from 2023, Korea's gap stood at 29.3 percent— the widest in the organization. It means for every 1 million won ($725.32) earned by a man, a woman earns only 707,000 won. Although the disparity is shrinking, it still far exceeds the OECD average of 11.3 percent. This is not some obscure or irrelevant fact. A survey conducted by the labor rights group Workplace Gapjil 119 on March 8 — International Women's Day — found that Koreans already consider the gender pay gap the most serious gender-related issue in the workplace. "I was shocked to learn that a colleague with a lower title and less experience was earning almost the same salary," one respondent said. Another said, "I've heard people say that women shouldn't be promoted." Despite public awareness, the root causes of the gap remain difficult to trace. There is no clear statistical framework or government data to accur

Jun 19, 2025By Lee Yeon-woo

Korea’s gender pay gap is the world’s worst. Will transparency fix it?

Korea's living costs significantly above OECD average: BOK

Essential living costs in Korea are significantly higher than those in other major nations, hindering the recovery of consumer spending, the central bank said Wednesday. Korea's price indices for food, clothing and housing stood at 151, 161 and 123, respectively, based on the average price level of Organization for Economic Cooperation and Development (OECD) member countries set at 100, according to a report from the Bank of Korea (BOK). The BOK also cited 2023 data from the Britain-based economic analysis firm Economist Intelligence Unit (EIU), which showed that prices for fruits, vegetables and meat in Korea were more than 1.5 times higher than the OECD average. The cumulative increase in the prices of essential items from January 2021 through May 2025 stood at 19.1 percent, which is 3.2 percentage points higher than the country's overall consumer price increase at 15.9 percent. This growth was driven by high inflationary pressures during the COVID-19 pandemic, supply chain disruptions, the Russia-Ukraine war and adverse weather conditions, among other factors, which contributed to sig

Jun 18, 2025By Yonhap

Korea's living costs significantly above OECD average: BOK

Winners of the 21st Economic Essay Contest

The Korea Times is pleased to announce the winners of its 21st English Economic Essay Contest for university students. The winners of the Grand Prize are Dorothea Rosskopf, a German student at the University of Göttingen currently participating in an exchange program at Seoul National University, and Lee Jae-hyeong, a Korean student at Hanyang University. Each of the winners will be awarded 3 million won ($2,202) in prize money and an award plaque. The runners-up are Choi Yeong-ju, a Korean student at Kwangwoon University, and Hermayonie Centeno, a Panamanian student at Kyungpook National University. Each will receive 2 million won and an award plaque. Commendation awards went to Marwuko Felix, a Ghanaian student at Woosong University, Beata Viktoria Silfvernagel, a Swedish student at Ewha Womans University, and Kim Tae-young, a Korean student at Kyung Hee University. Each will receive 1 million won and a plaque. The contestants wrote essays addressing one of two subjects. The first topic was, "Korea has become a super-aged society, prompting banks and other financial services firms to bet

Jun 17, 2025By Lee Yeon-woo

Winners of the 21st Economic Essay Contest

Korea's global competitiveness falls 7 notches to 27th in 2025: report

Korea's global competitiveness ranking dropped seven notches in 2025, largely due to declines in corporate efficiency and infrastructure, a report showed Tuesday. According to the finance ministry, the latest report from the International Institute for Management Development (IMD) showed Korea ranked 27th among 69 countries surveyed, down from a record high 20th place last year. The IMD, a Switzerland-based business school, has published its annual World Competitiveness Ranking since 1989, evaluating countries based on four key indicators: economic performance, government efficiency, corporate efficiency and infrastructure. In this year's breakdown, Korea ranked 44th in corporate efficiency, a sharp decline of 21 notches from the previous year. Its ranking in infrastructure also fell by 10 spots to 21st. However, the country showed improvements in other areas. Its economic performance ranking rose to 11th from 16th last year, and its position in government efficiency climbed eight notches to 31st. Switzerland topped the overall 2025 list, followed by Singapore, Hong Kong, Denmark and the

Jun 17, 2025By Yonhap

Korea's global competitiveness falls 7 notches to 27th in 2025: report

Generational shift in labor market: Older adults catch up to youth in employment rate

The share of economically active Koreans aged 60 and older has climbed to match that of the country's youth, according to Statistics Korea data released Monday. While older adults are joining the job market due to insufficient finances for retirement, a growing number of young people are giving up on job hunting, pushing older workers to the forefront of the nation's labor force. The data showed that 49.4 percent of Koreans aged 60 and older were either employed or actively seeking jobs last month, meaning nearly half of older adults participate in the labor force. The rate rose by 0.8 percent from a year earlier, reaching its highest level since the government began tracking this data in June 1999. As the country's population ages, senior labor force participation has steadily risen since 2011. Over the past five years, the senior employment rate is up by 4.6 percentage points — nearly twice the 2.6 percent increase for all working-age people aged 15 and older in the same period. The employment rate of older Koreans is now nearly on par with that of young adults. Last month, employment

Jun 16, 2025By Jun Ji-hye

Generational shift in labor market: Older adults catch up to youth in employment rate

Is anyone willing to acquire Homeplus as its value drops?

Attention is focused on who will become the new largest shareholder of Homeplus, as the retail store chain, which filed for corporate rehabilitation proceedings in March, is now looking for a buyer to acquire or merge with the company to avoid bankruptcy, according to industry officials Sunday. This is expected to offer a rare opportunity to acquire the retail giant — valued at 3.7 trillion won ($2.7 billion) in liquidation — at a relatively low price, as MBK Partners, the private equity firm and current largest shareholder, decided to forgo its entire investment of 2.5 trillion won. In 2015, MBK acquired a 100 percent stake in Homeplus from the British retailer Tesco for 7.2 trillion won. Excluding the 1.2 trillion won in existing debt that Homeplus had assumed, the actual acquisition price was 6 trillion won. However, a series of unfavorable factors, including a prolonged slump in the retail industry, prevented MBK from selling Homeplus for over a decade. As the retailer continued to struggle with financial difficulties and faced credit rating downgrades, it ultimately filed for c

Jun 15, 2025By Jun Ji-hye

Is anyone willing to acquire Homeplus as its value drops?

ASEAN emerges as major export market for Korea amid global trade war

Korea's exports to the Association of east Asian Nations (ASEAN) countries are on the rise, helping offset recent drops in shipments to the United States and China amid a global trade war sparked partly by the U.S.' evolving tariff policies, data showed Sunday. Outbound shipments to the ASEAN region came to $47.88 billion in the January-May period, up 4.3 percent from the same period last year, according to data compiled by the Korea International Trade Association (KITA). Over the same period, Korea's exports to the U.S. went down 4.3 percent as effects of the Donald Trump administration's tariff policies began to materialize, while shipments to China dropped 5 percent. In February, exports to ASEAN economies recorded $9.56 billion, surpassing monthly shipments to China, which stood at $9.5 billion, for the first time in 23 years. Shipments to ASEAN exceeded those to China again in March, at $10.26 billion to $10.06 billion. In May, exports to the U.S. decreased 8.4 percent on-year to $10.05 billion, while those to China contracted 8.1 percent to $10.4 billion due to the effects of the T

Jun 15, 2025By Yonhap

ASEAN emerges as major export market for Korea amid global trade war

Acting finance minister vows all-out efforts to stabilize consumer prices

Acting Finance Minister Lee Hyoung-il said Thursday that all efforts will be made to stabilize consumer prices, adding that the government will announce related countermeasures as soon as possible. Lee, newly appointed as the first vice finance minister and currently serving as acting minister due to a vacancy, made the remarks while presiding over a vice ministerial meeting on consumer prices. "Consumer prices are the government's top priority, and the government will mobilize all available resources across ministries to stabilize prices felt by the public," Lee said, adding that relevant measures will be announced as soon as possible. In May, the consumer price rose 1.9 percent, growing at the 1 percent level for the first time in five months on falling global oil prices, while a weaker local currency continued to raise the cost of major industrial goods. "While the recent consumer price index shows a stabilizing trend around 2 percent, the overall price level remains high due to accumulated inflation over the past several years," said Lee, emphasizing that food prices, in particular,

Jun 12, 2025By Yonhap

Acting finance minister vows all-out efforts to stabilize consumer prices

Kang Sung-jin to lead Korean Economic Association for 2026

The Korean Economic Association said Wednesday that Kang Sung-jin, an economics professor at Korea University, has been elected president for 2026. The association conducted voting for its next president from May 12 to June 4. Kang was confirmed during the board meeting held to count votes on Wednesday. He will serve as senior vice president this year and will officially take office at the association’s general meeting in February 2026. Kang earned his undergraduate degree in economics from Korea University and a Ph.D. in economics from Stanford University in the U.S. He has previously served as president of the Association of Korean Economic Studies and the Korea International Economic Association. In a recent phone interview with The Korea Times, Kang promised to address Korea’s pressing economic problems through an interdisciplinary approach. "Economic issues today can’t be solved by economic variables alone. Take low birthrates and an aging population, for example, or environmental challenges and even infectious diseases. These all go beyond the traditional scope of economics,"

Jun 11, 2025By Lee Yeon-woo

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