Economy - The Korea Times

Housing market sentiment hits 4-year high, raising questions over policy effectiveness

Consumer sentiment toward home prices has reached its highest level in four years, casting doubt on the effectiveness of the government’s recent measures to cool the housing market. In a consumer sentiment survey released Tuesday, the Bank of Korea (BOK) said the housing price outlook index for October stood at 122, the highest since October 2021, when it was 125. A reading above 100 means that more consumers expect home prices to rise than to fall. The BOK noted that the index rose 10 points from the previous month, marking the sharpest increase since April 2022, when it also climbed by 10 points. The findings come despite the government’s introduction of three major housing regulations — on June 27, Sept. 7 and Oct. 15 — and about four months after President Lee Jae Myung took office. The measures included stricter mortgage lending rules and the expansion of speculation-prone zones, particularly in Seoul and surrounding metropolitan areas where housing demand remains high. The central bank said the survey results “do not sufficiently reflect the effects of the government’s la

Oct 28, 2025By Yi Whan-woo

Housing market sentiment hits 4-year high, raising questions over policy effectiveness

Korea seeks to boost foreign investment through APEC meetings in Gyeongju

The Lee Jae Myung administration plans to use the upcoming Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Meeting in Gyeongju, North Gyeongsang Province, from Oct. 31 to Nov. 1, as a key opportunity to attract foreign investment, government officials said Friday. They said this year’s APEC events are expected to go beyond being a mere diplomatic gathering, serving instead as a practical stage for realizing the government’s vision of an innovation-driven economy. In particular, both the government and industry are ramping up efforts to accelerate foreign direct investment (FDI) in high-tech industries such as artificial intelligence (AI) and semiconductors. During the events, Lee plans to hold direct meetings with executives from global companies such as Amazon Web Services and Renault to attract investment in Korea’s industrial ecosystem. According to presidential office insiders, Lee views the APEC meetings as a turning point for expanding FDI in Korea. The four-day APEC CEO Summit, which begins Tuesday, ahead of the Economic Leaders’ Meeting, is expected to serve a

Oct 24, 2025By Jun Ji-hye

Korea seeks to boost foreign investment through APEC meetings in Gyeongju

Top gov't officials criticized over real estate investments

The top officials behind the recently introduced strict housing regulations are facing heavy criticism for double standards, as their personal real estate dealings appear to contradict President Lee Jae Myung's push to curb home prices, market watchers said Wednesday. Among them are Financial Services Commission (FSC) Chairman Lee Eog-weon, Financial Supervisory Service (FSS) Gov. Lee Chan-jin and Vice Minister for Land and Infrastructure Lee Sang-kyeong. The FSC has played a key role in tightening mortgage rules, while the Ministry of Land, Infrastructure and Transport (MOLIT) has expanded the designation of property speculation-prone zones. As the country’s financial watchdog, the FSS is tasked with ensuring that housing policies are faithfully observed in the market. Within just six months of taking office, the Lee administration has introduced three major housing regulations — on June 27, Sept. 7, and Oct. 15 — making it more difficult to purchase homes, particularly in Seoul and the surrounding areas. Against this new regulatory backdrop, the FSC chairman has come under fire fo

Oct 22, 2025By Yi Whan-woo

Top gov't officials criticized over real estate investments

More newlyweds delay marriage registration to keep housing benefits

Longtime real estate broker Lim Mi-ae says she was surprised in 2014 when she met and brokered a deal for a newlywed couple in their 30s who had postponed registering their marriage to maintain housing benefits for singles. “Although I didn’t say anything to their face at the time, I thought they were crazy —undermining the idea of marriage just for financial gain,” Lim said. “But over the years, I’ve started seeing more and more couples like them.” Lim’s observation isn’t wrong. The number of newlyweds delaying official marriage registration with the government has nearly doubled over the past decade, according to the Ministry of Data and Statistics. In this year’s National Assembly audit data submitted to Rep. Chung Il-young of the ruling Democratic Party of Korea, the ministry reported that 19 percent of couples in 2024 delayed registering their marriage for over a year after their wedding. That figure has steadily risen from the 10.9 percent recorded in 2014, hitting 12.5 percent in 2017, 12.8 percent in 2020, 15.3 percent in 2022 and 16.8 percent in 2023. “This t

Oct 16, 2025By Yi Whan-woo

More newlyweds delay marriage registration to keep housing benefits

Lee administration risks repeating Moon-era housing policy missteps as prices climb

The prolonged rise in Seoul’s housing prices is once again raising concerns as President Lee Jae Myung may be repeating the regulatory missteps of former President Moon Jae-in. Moon’s 2017–22 administration imposed multiple housing curbs but ultimately failed to stabilize the market. Less than six months into his term, Lee’s administration introduced two rounds of tightened lending regulations. The first came on June 27, capping housing loans in Seoul at 600 million won ($418,000). The second followed on Sept. 7, lowering the loan-to-value (LTV) ratio in regulated areas of the city from 50 percent to 40 percent. Nevertheless, data from multiple sources suggested that the real estate market in Seoul and the broader capital region continues to heat up. According to the government-affiliated Korea Real Estate Board, Seoul apartment prices rose 0.41 percent throughout August, while the metropolitan area saw a 0.14 percent increase over the same period. Growth accelerated in September, with Seoul rising 0.76 percent and the surrounding region 0.29 percent. Separate data from KB Land, a

Oct 12, 2025By Yi Whan-woo

Lee administration risks repeating Moon-era housing policy missteps as prices climb

Industry minister stresses policy implementation in meeting with key agency chiefs

Industry Minister Kim Jung-kwan met with the heads of key industry ministry-affiliated agencies on Friday and asked for their cooperation to thoroughly implement the government's key policy priorities. "Close cooperation with affiliated agencies is crucial for the Ministry of Trade and Industry to successfully accomplish the government's five policy priorities," Kim said during the meeting held in central Seoul, as he noted changes following the government's reorganization that took effect on Oct. 1. Under the reorganization, the energy departments of the industry ministry, as well as 21 government-affiliated agencies, have been transferred to the new energy ministry for the first time in 32 years. Its name also changed from the Ministry of Trade, Industry and Energy to the Ministry of Trade and Industry. Kim ordered the agency heads to restructure their organizations to successfully accomplish the government's five key initiatives, including an artificial intelligence (AI)-based transformation in the manufacturing sector and strengthening of economic security and trade capabilities. He a

Oct 10, 2025By Yonhap

Industry minister stresses policy implementation in meeting with key agency chiefs

Concerns rise over foreign landlords failing to return tenant deposits

Kim, who had recently completed graduate school and started a new job, needed to move out of his studio apartment near campus. He tried to contact his landlord to retrieve his deposit but received no response. He later discovered that the landlord, a Chinese national, had left Korea and was no longer reachable. With no way to recover his deposit directly, Kim turned to the Korea Housing and Urban Guarantee Corp. (HUG), a state-run company that compensates victims when landlords default on rental deposits. Nearly six months after his lease expired, Kim finally received his deposit back via HUG. But the troubling experience left a lasting mark. “The experience made me cautious about renting from foreign landlords, as I wouldn’t have gotten my deposit back without HUG’s help,” Kim said, requesting anonymity to protect his privacy. Kim’s experience is part of a growing number of cases involving foreign landlords who fail to return tenant deposits — a rising concern as more foreign nationals purchase property in Korea. According to HUG data obtained by Rep. Kim Hee-jung of the Peop

Oct 1, 2025By Yi Whan-woo

Concerns rise over foreign landlords failing to return tenant deposits

FSS faces tougher consumer protection scrutiny after government scraps overhaul plan

The Financial Supervisory Service (FSS) is facing mounting pressure to strengthen its consumer protection functions after the government scrapped plans to restructure the country’s financial policymaking and supervisory framework, government officials and politicians said Friday. The Lee Jae Myung administration and the ruling Democratic Party of Korea (DPK) had initially sought to establish a new financial consumer protection agency by carving out the relevant functions from the financial watchdog. However, the plan was withdrawn Thursday amid strong resistance from FSS employees and opposition parties over concerns about reduced efficiency. There were also fears that prolonged uncertainty caused by partisan conflict could destabilize financial markets. A proposal to dismantle the Financial Services Commission (FSC), the country’s top financial regulator, was also dropped for the same reasons. Following the withdrawal, the current dual regulatory structure of the FSC and the FSS will remain in place. FSS employees, who had staged rare protests against the reform plan, welcomed the d

Sep 26, 2025By Jun Ji-hye

FSS faces tougher consumer protection scrutiny after government scraps overhaul plan

Super-rich, financial experts caught in massive stock manipulation

Super-rich individuals, including hospital and private academy owners, have been caught colluding with financial professionals, such as a former senior executive at a major private equity fund, to carry out large-scale stock manipulation, financial authorities said Tuesday. These individuals allegedly mobilized around 100 billion won ($72 million) for market-rigging schemes, earning illicit profits of about 40 billion won. This marks the first case handled by the joint task force against stock manipulation, launched in July and comprising officials from the Financial Services Commission (FSC), the Financial Supervisory Service (FSS) and the Korea Exchange. The task force was established to detect and investigate illegal and unfair stock trading activities, a key policy emphasized by President Lee Jae Myung. According to the task force, authorities raided some 10 sites, including the residences and offices of seven individuals who manipulated stock prices over an extended period using substantial funds. The suspects include wealthy owners of general hospitals, oriental medicine clinics an

Sep 23, 2025By Jun Ji-hye

Super-rich, financial experts caught in massive stock manipulation

Korea, BlackRock forge partnership to build Asia’s AI hub in Korea

NEW YORK CITY — Korea and BlackRock, the world’s largest asset manager, have formed a strategic partnership to position the country as the "artificial intelligence (AI) capital in Asia" through large-scale joint investments in data centers and renewable energy. The agreement was made on Monday during a meeting between President Lee Jae Myung and Larry Fink, interim co-chair of the World Economic Forum and CEO of BlackRock. The president is visiting New York City for the United Nations General Assembly. During the talks, the Korean government and BlackRock signed an investment partnership memorandum of understanding, which highlighted a three-pronged approach to exploring combined development of data centers, establishing Korea as an Asia-Pacific base that can serve both domestic and regional needs and enabling Korea to participate in international AI infrastructure projects. "President Lee welcomed the opportunity to cooperate in making Korea the AI capital of the Asia-Pacific region, calling for close collaboration to deliver tangible results. The president also extended an invitat

Sep 23, 2025By Anna J. Park

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