Economy - The Korea Times

EXPLAINER What is '51% rule'? Bank-led stablecoin plan stalls Korea's digital asset legislation

The question of who should issue a won-denominated stablecoin has emerged as a key sticking point in deliberations over the tentatively titled Digital Asset Basic Act, government and ruling party officials said Tuesday. The Bank of Korea (BOK) argues that stablecoin issuance should be restricted to consortiums led by commercial banks holding a minimum 51 percent stake, stressing the need to safeguard financial stability. The Financial Services Commission (FSC), by contrast, says opening issuance to nonbank entities, including fintech and blockchain companies, is necessary to spur innovation and invigorate the digital asset industry. The ruling Democratic Party of Korea (DPK) has signaled opposition to the central bank’s so-called 51 percent model, arguing that a bank-centric framework would limit innovation and weaken potential network effects. Rep. Ahn Do-geol said most of the 20 external advisers serving on the party’s digital asset task force also raised concerns about the proposed governance structure. The governing party had originally urged the FSC, the country’s top financi

Dec 23, 2025By Jun Ji-hye

[EXPLAINER] What is '51% rule'? Bank-led stablecoin plan stalls Korea's digital asset legislation

Nuclear safety watchdog delays Saeul-3 reactor operation approval

Korea's nuclear watchdog on Friday decided to conduct a further review of the operation of the Saeul-3 reactor before granting official approval. The Nuclear Safety and Security Commission made the decision after holding a meeting on whether to approve the operation of the Saeul-3, a homegrown APR1400 reactor located at the Saeul Nuclear Power Site in the southeastern port city of Ulsan. If approved, the unit, whose construction began in 2016, will undergo a pilot run over the next six months. The Saeul-3 marks the first South Korean nuclear reactor designed to withstand aircraft attacks, featuring walls measuring 137 centimeters in thickness, 15 centimeters thicker than those of earlier reactors. The reactor has a spent nuclear fuel storage capacity of up to 60 years, sufficient to store the entire volume generated over its design life. The unit was formerly known as Kori-5 before being renamed in 2022.

Dec 19, 2025By Yonhap

Nuclear safety watchdog delays Saeul-3 reactor operation approval

BOK rolls out temporary foreign exchange relief measures as weak won persists

The Bank of Korea (BOK) will temporarily ease foreign currency-related regulations and offer incentives to financial institutions in a bid to stabilize the foreign exchange market, as the won continues to face downward pressure, the central bank said Friday. The average won-dollar exchange rate in December through Thursday stood at 1,472.2 won, the highest level since March 1998 during the Asian financial crisis, when it reached 1,488.87 won. The prolonged weakness of the domestic currency has heightened concerns over rising inflation and growing cost burdens for importers. Earlier in the day, the central bank's monetary policy board decided at an emergency meeting to temporarily waive the foreign exchange stability levy for financial institutions from January through June next year and to pay interest on foreign currency reserve requirements during the same period. The levy, imposed under the Foreign Exchange Transactions Act on institutions holding foreign currency liabilities above a certain threshold, raises borrowing costs. Its temporary suspension is expected to lower funding cost

Dec 19, 2025By Jun Ji-hye

BOK rolls out temporary foreign exchange relief measures as weak won persists

Overseas investment boom leaves retail investors with heavy losses: FSS

Securities firms have posted record-high brokerage fee income from overseas stock trading as retail investors increasingly turn to foreign markets, but rising volatility has left about half of those investors posting losses on overseas equities, the Financial Supervisory Service (FSS) said Friday. Against this backdrop, the financial watchdog said it will promptly escalate its reviews of overseas investment sales practices at brokerage firms into full-scale on-site inspections. It vowed to take tough measures, including the suspension of overseas stock business, if unlawful or improper conduct, such as deceptive marketing or insufficient risk disclosure, is identified. The FSS released interim results from its reviews of overseas investment practices, which have been underway since Dec. 3 at major brokerages and asset managers. The findings showed that brokerage commissions from overseas stock trading at the 12 largest securities firms totaled about 1.95 trillion won ($1.3 billion) during the January-November period, marking an all-time high and more than tripling from 581 billion won a

Dec 19, 2025By Jun Ji-hye

Overseas investment boom leaves retail investors with heavy losses: FSS

No-show penalty ceiling at fine dining restaurants raised to 40%

The ceiling for no-show penalties at reservation-based fine dining restaurants will be raised to 40 percent of the preordered menu, the antitrust regulator said Thursday. From now on, advance reservation-based upscale restaurants, such as omakase establishments, will be allowed to charge a no-show fee of up to 40 percent of the price of menu items for which consumers made reservations, according to the Fair Trade Commission (FTC). Previously, such restaurants could only impose a maximum 10 percent cancellation fee for no-shows. For general walk-in restaurants, the penalty may be set at up to 20 percent of the total amount charged. The FTC said it revised the penalty guidelines considering that cost ratios in the food service industry are typically around 30 percent. The watchdog also revised up the penalty guidelines for the wedding industry, allowing wedding venue operators to charge up to a 70 percent penalty of the total cost for cancellations on the day of the event, 50 percent for those made one to nine days prior and 40 percent for those made 10 to 29 days before the wedding. On the

Dec 18, 2025By Yonhap

No-show penalty ceiling at fine dining restaurants raised to 40%

Korea Zinc's Tennessee smelter emerges as potential target for $200 bil. US fund

Korea Zinc’s smelter construction project in Tennessee could be discussed as a potential candidate to tap a $200 billion fund dedicated to U.S.-bound investment, Minister of Trade, Industry and Resources Kim Jung-kwan said Wednesday. Addressing market concerns that the 11 trillion won ($7.4 billion) project could place a heavy financial burden on the world’s largest zinc smelter, Kim said he views the decision “positively” from his standpoint as the minister overseeing critical minerals, despite the costs involved. “The project has been strongly welcomed by the U.S. Department of Commerce,” he said. “How the U.S. investment fund might be utilized will be a subject for further discussions with the department.” He added, however, that discussions have not yet progressed to that stage, stressing that the matter remains at a preliminary level. Last month, Seoul signed a memorandum of understanding with Washington on U.S.-bound investment, under which Korea plans to establish a $200 billion fund to support commercially viable projects in the United States. Kim’s remarks are i

Dec 17, 2025By Jun Ji-hye

Korea Zinc's Tennessee smelter emerges as potential target for $200 bil. US fund

Korea to invest $20.4 bil. in AI, chip sectors via Public Growth Fund in 2026

The government plans to invest over 30 trillion won ($20.4 billion) next year to support artificial intelligence (AI) and other advanced sectors, funded by a newly launched mega-sized fund, officials said Tuesday. Last week, the 150 trillion-won Public Growth Fund, one of President Lee Jae Myung's key economic pledges, set sail with a focus on accelerating AI adoption across sectors and channeling resources into key industries, including semiconductors, secondary batteries and biotechnology over the next five years. According to the Financial Services Commission (FSC), over 30 trillion won will be initially invested next year, which includes 6 trillion won for the AI sector, 4.2 trillion won for the semiconductor segment and 3.1 trillion won in future mobility. Around 3 trillion won will be directly invested, while 10 trillion won will be allocated for infrastructure. Some 10 trillion won will be offered at low-interest rates, according to the financial regulator. The fund consists of a 75 trillion-won government-guaranteed fund for strategic industries and 75 trillion won in private inv

Dec 16, 2025By Yonhap

Korea to invest $20.4 bil. in AI, chip sectors via Public Growth Fund in 2026

FX authorities, NPS agree to extend $65 bil. currency swap deal

Foreign exchange authorities have agreed with the state pension operator to extend their $65 billion currency swap deal by one year, the central bank said Monday. The finance ministry and the Bank of Korea (BOK) have agreed with the National Pension Service (NPS) to extend their foreign exchange swap arrangement, with a limit of $65 billion, through the end of 2026, according to the BOK. The deal had been due to expire at the end of this year. The swap deal was first established in September 2022 with an initial limit of $10 billion. Since then, the limit has been increased to $35 billion in April 2023, $50 billion in June 2024 and further to $65 billion in December 2024. "The agreement is expected to contribute to stabilizing the foreign exchange market by absorbing the NPS' demand for spot dollar purchases during periods of market volatility," the BOK said in a release. Hedging foreign assets through swap transactions "would help the NPS mitigate exchange rate volatility risks associated with its overseas investments and support fund returns," the BOK added. The extension comes as the lo

Dec 15, 2025By Yonhap

FX authorities, NPS agree to extend $65 bil. currency swap deal

Gov't to expand K-Pass benefits next year

The government will expand the benefits of K-Pass, a monthly public transit pass offering fare discounts, by broadening the scope of discounts available to users starting next year. Introduced in May last year for subways, buses and the GTX, the existing K-Pass provides refunds of 20 to 53 percent of public transit fares, depending on users’ age groups and regions of residence. According to the Ministry of Land, Infrastructure and Transport on Monday, the new K-Pass introduces additional upper-limit standards that vary by users’ family status and regions of residence. Any amount spent beyond those limits will be refunded. While retaining the existing K-Pass framework, the updated system introduces new standards ranging from 30,000 won ($20) to 100,000 won. The capital region — Seoul, Incheon and Gyeonggi Province — will be subject to the highest thresholds, while less populated regions will have lower standards to provide greater discount benefits to residents. Users with three or more children, lower incomes or those aged 65 or older will also receive greater benefits than user

Dec 15, 2025By Ko Dong-hwan

Gov't to expand K-Pass benefits next year

Kosdaq blueprint draws attention ahead of presidential policy briefing, 1,000-point milestone

A potential blueprint for the secondary bourse Kosdaq is drawing keen attention ahead of this week’s policy briefing to President Lee Jae Myung, amid two contrasting developments in the index’s path toward reaching the unprecedented 1,000-point mark. The Financial Services Commission (FSC) will deliver a briefing, Thursday, marking the first policy presentation directly to the president covering ministries and affiliated organizations since he took office in June, intended to help him prepare for 2026, industry officials said Sunday. The FSC briefing comes as more investors expect Kosdaq stocks to continue rising — a positive development on the index’s 1,000-point path — with their available funds borrowed from brokerage firms reaching a yearly high of 10 trillion won ($6.76 billion), according to the Korea Financial Investment Association, Friday. On the downside, Kosdaq’s bellwether stock, Alteogen, announced on Dec. 8 that it will move to the benchmark KOSPI, while second-ranked EcoPro BM is also considering leaving — a continuing outflow of top-performing stocks that c

Dec 15, 2025By Yi Whan-woo

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