Economy - The Korea Times

Can Korea and China tackle aging together?

HONG KONG — Korea and China have had a turbulent relationship in recent years as they compete across a range of high-tech industries. But the two countries now appear to be bonding over a shared challenge: their rapidly aging societies. The issue has featured on the agenda at meetings between Korean President Lee Jae Myung and Chinese President Xi Jinping dating back to last year, with the leaders pledging to work together to deal with the economic changes being brought by their nations’ low birthrates. In November, following a bilateral summit held on the sidelines of the Asia-Pacific Economic Cooperation summit, the two nations signed a cooperation agreement on the “silver economy,” with Xi highlighting the need for mutually beneficial outcomes. During his state visit to China in January, Lee also named the silver economy — existing and emerging sectors catering to the elderly population — as an area with “limitless collaboration opportunities,” despite the two countries’ competitive status in other areas of the global market. Analysts broadly agreed with that assessm

Feb 20, 2026By Lee Yeon-woo

Can Korea and China tackle aging together?

Gov't to offer 4 to 6 month grace period before ending tax benefits for owners of multiple homes

The government will grant a grace period of four to six months for owners of multiple homes ahead of the planned end of a temporary exemption from heavy capital gains taxes, the finance ministry said Thursday. The temporary exemption will still end as scheduled on May 9, as President Lee Jae Myung has emphasized the need to stabilize rising housing prices and curb real estate speculation, particularly in the greater Seoul area. The policy has prompted owners of multiple properties to sell their homes to avoid hefty taxes. "All property sale contracts signed after May 9 will be subject to a heavy capital gains tax," Jo Man-hee, a senior finance ministry official, told reporters, adding that a grace period will be given depending on rental situations. The ministry said the latest measures have been prepared to improve consistency between systems and minimize public inconvenience, reflecting the practical difficulty of selling homes currently occupied by tenants and the need to strengthen protections for renters. Under the measure, a four-month grace period will be given for properties in Se

Feb 12, 2026By Yonhap

Gov't to offer 4 to 6 month grace period before ending tax benefits for owners of multiple homes

Gov't to tighten real estate purchase rules for foreigners to curb speculative deals

The government will begin enforcing tighter real estate transaction rules for foreigners this week to prevent speculative property purchases involving suspicious overseas funds, the land ministry said Monday. Under a revision to the enforcement rules of the Real Estate Transaction Reporting Act, foreign nationals who sign property purchase contracts starting Tuesday will be required to disclose their visa status and whether they qualify as legal residents when filing transaction reports to local authorities. Inclusion of information regarding overseas bank deposits, foreign loans and offshore financial institutions will be also be newly required. Currently, only local deposits and financial institutions are required for foreigners when reporting home purchases. Proceeds from stock and bond sales, as well as those from cryptocurrencies, will also be newly required when used as part of the funds to purchase a home here, according to the ministry. The measures follow a government probe last year that identified 416 suspected cases of illegal real estate transactions involving foreign buyers

Feb 9, 2026By Yonhap

Gov't to tighten real estate purchase rules for foreigners to curb speculative deals

Korea weighs delisting penny stocks to boost capital market

Financial authorities are reviewing measures to make stocks trading below 1,000 won ($0.68) per share subject to delisting, as part of the Lee Jae Myung administration’s push to revitalize the domestic capital market, government officials said Sunday. Data from the Korea Exchange show that the number of so-called penny stocks listed on the Kosdaq stood at 170 as of Friday, accounting for about 10 percent of the secondary bourse's 1,822 listed companies. While the figure has edged down slightly from 178 at the start of this year, it represents a sharp 38.2 percent increase from early 2024, when 123 such stocks were listed. Over the same period, the Kosdaq index climbed from 878.93 to 1,080.77, indicating that the increase in penny stocks happened despite a broader market upswing. On the country’s main bourse, the KOSPI, 56 stocks were classified as penny stocks as of Friday. These stocks are typically associated with high volatility and are often viewed as prone to speculative trading and price manipulation. Against this backdrop, authorities are reviewing whether penny stocks should b

Feb 8, 2026By Jun Ji-hye

Korea weighs delisting penny stocks to boost capital market

Gov't to announce measures to ease impact of capital gains tax on multiple-home owners: finance chief

The government will announce supplementary measures next week to mitigate the potential impact of its plan to end an exemption from heavy capital gains tax for owners of multiple homes, Finance Minister Koo Yun-cheol said Thursday. The temporary exemption will be terminated as planned on May 9, President Lee Jae Myung has warned, stressing the need to stabilize housing prices and curb real estate speculation. Lee has argued that soaring housing costs are forcing young people to abandon plans for marriage and childbirth. "We will end the exemption from capital gains tax for owners of multiple homes, while announcing supplementary measures next week to minimize inconvenience to the public, including those who own rental properties," Koo said in a post on X, formerly known as Twitter. The remarks are widely interpreted as an effort to address the practical difficulty of selling homes that are currently occupied by tenants, as well as to strengthen protection for renters. Many rental properties in Korea are leased under the jeonse system, in which tenants provide a large lump-sum deposit tha

Feb 5, 2026By Yonhap

Gov't to announce measures to ease impact of capital gains tax on multiple-home owners: finance chief

STOs emerge as key engine for pushing Kosdaq toward 3,000 level

Security tokens are emerging as a key engine to push the Kosdaq past the 3,000-point milestone following the realization of President Lee Jae Myung’s campaign pledge to lift the KOSPI above 5,000 points, according to National Assembly and industry officials on Tuesday. The government and the ruling Democratic Party of Korea (DPK) are reviewing measures to foster corporate finance-oriented security token offerings (STOs) as a way to expand capital-raising options for small and venture firms. STOs incorporate fractional investment — which allows shared ownership and profit rights in real-world assets such as real estate and art — into the formal financial system through blockchain-based infrastructure. With the legal groundwork for STOs finalized last month, industry participants broadly agree that the focus must now shift from legislation to the construction of practical market infrastructure. On Jan. 15, the National Assembly passed amendments to the Capital Markets Act and the Electronic Securities Act aimed at institutionalizing tokenized securities, without major disputes betwee

Feb 3, 2026By Jun Ji-hye

STOs emerge as key engine for pushing Kosdaq toward 3,000 level

Korea bolsters AI capabilities to tackle crypto market manipulation

The Financial Supervisory Service (FSS) is upgrading an artificial intelligence (AI)-powered platform for virtual asset surveillance as part of efforts to crack down on increasingly sophisticated market manipulation, the watchdog said Monday. The platform, Virtual Assets Intelligence System for Trading Analysis (VISTA), is designed to process massive volumes of trading data, automatically flag abnormal transactions and visualize trading behavior. The financial watchdog said VISTA has already become a core investigative tool in crypto-related enforcement cases. Last December, FSS expanded its computing capacity by installing two new servers equipped with high-performance central and graphics processing units. Leveraging this infrastructure, the agency has developed an automated detection model that identifies suspected price-rigging periods without manual intervention. The system scans every possible trading interval — from seconds to months — and calculates abnormal trading metrics across all segments, allowing authorities to uncover manipulation patterns regardless of how frequently

Feb 2, 2026By Jun Ji-hye

Korea bolsters AI capabilities to tackle crypto market manipulation

Financial watchdog chief's growing clout comes into focus after agency avoids public institution status

The growing influence of Financial Supervisory Service (FSS) Gov. Lee Chan-jin is once again in the spotlight following the government’s decision to postpone classifying the financial watchdog as a public institution, according to industry insiders Friday. For the FSS, public institution status has long been viewed as a worst-case scenario, raising concerns that it could erode the watchdog’s independence and autonomy in financial supervision. The agency was effectively spared from that risk after the finance ministry opted not to proceed with the designation. The FSS has also been backed by President Lee Jae Myung in its push to expand special judicial police powers, further reinforcing perceptions of the governor’s rising clout. Lee, who was appointed in August last year as the first FSS chief under the Lee Jae Myung administration, was a classmate of the president at the Judicial Research and Training Institute and previously served as a defense attorney in the president’s election law violation case and other cases. At a meeting on Thursday, the Ministry of Economy and Finance

Jan 30, 2026By Jun Ji-hye

Financial watchdog chief's growing clout comes into focus after agency avoids public institution status

Finance ministry adds 11 institutions to oversight list without FSS

The finance ministry said Thursday it has newly listed 11 state-run organizations on a surveillance list, leaving the country's financial watchdog off the list amid controversy over alleged lax supervision. A total of 11 state-run organizations met the criteria for public institution status this year, bringing the total number to 342, according to the Ministry of Economy and Finance. The ministry reviews about 500 organizations each year for designation as public institutions, a status that places them under strict government management and oversight. Under the system, the finance minister may also request the dismissal of an institution's chief. The Financial Supervisory Service (FSS), which had been under discussion as part of a broader government reorganization last year, was not included in the latest list, the ministry said. The ministry said it decided to defer designating the FSS after comprehensive discussions over the autonomy of financial supervisory functions. "While the authority of the FSS has expanded, there have been continued criticisms related to its public responsibility

Jan 29, 2026By Yonhap

Finance ministry adds 11 institutions to oversight list without FSS

Trade Minister Yeo Han-koo vows to resolve tariff issues through talks with US

Trade Minister Yeo Han-koo said Thursday he will make utmost efforts to find reasonable solutions to pending trade issues following President Donald Trump's recent threat to raise tariffs on Korea, as he plans talks with U.S. officials. "I plan to engage in multifaceted discussions to understand the situation within the U.S. government and Congress and find reasonable solutions," Yeo told reporters at Incheon International Airport before departing for Washington. His U.S. visit comes after Trump announced earlier this week that he will raise "reciprocal" tariffs and auto duties on Korea back to 25 percent, citing Seoul's lack of progress in the legislative process in ratifying a tariff deal finalized between the two countries in October. "It appears there was an impression that the agreements reached between Korea and the United States were not being properly implemented due to the legislative process in the National Assembly," Yeo said. "I plan to explain various aspects, including the political situation in the National Assembly and differences with the United States." In Washington, Ye