my timesThe Korea Times
EconomyPolicy

Policy

Korea Times
About Us
Introduction
History
Contact Us
Products & Services
Subscribe
E-paper
RSS Service
Content Sales
Site Map
Policy
Code of Ethics
Ombudsman
Privacy Policy
Youth Protection Policy
Terms of Service
Copyright Policy
Family Site
Hankookilbo
Dongwha Group
FacebookXYoutubeInstagram
CEO & Publisher: Oh Young-jinDigital News Email: webmaster@koreatimes.co.krTel: 02-724-2114Online newspaper registration No: 서울,아52844Date of registration: 2020.02.05Masthead: The Korea TimesCopyright © koreatimes.co.kr. All rights reserved.

Customs agency launches counter-drug response headquarters to curb smuggling

The Korea Customs Service (KCS) launched a comprehensive counter-drug response headquarters as part of government-wide efforts to combat the growing circulation of narcotics in Korea, the KCS said Wednesday. The customs agency said the headquarters will be overseen by Commissioner Lee Myeong-ku, underscoring its determination to root out drug trafficking at the front line of border control. The headquarters is made up of three teams, each tasked with a specific role in customs surveillance, investigation and intelligence and data support. It will mobilize all required KCS divisions at its headquarters and regional offices nationwide. The launch comes as the KCS steps up its crackdown on drugs, following a record number of seizures in 2025. “The headquarters will serve as the control tower for crackdown at the KCS, coordinating efforts across customs, inspections, investigations and other divisions,” Lee said during the launch ceremony at Seoul Regional Customs. “To ensure these measures are implemented systematically and promptly, I, as chief, will personally oversee the newly estab

Jan 21, 2026By Yi Whan-woo
Customs agency launches counter-drug response headquarters to curb smuggling

Tax agency launches outreach initiative to help overseas Koreans return home

The National Tax Service (NTS) said Tuesday it has launched an outreach initiative to clarify the country’s tax policies for Korean emigrants and corporations abroad and assist those considering bringing their assets back home. The tax agency said it has formed a special team, K-Tax Angel, of officials with top-level expertise in property, cross-border taxation and other tax policies relevant to interested parties. The team will provide tax consulting services in 10 countries, beginning in February in Thailand and the Philippines, and later expanding to the United States, Japan and other nations. The initiative comes as the Lee Jae Myung administration pursues an expansionary fiscal policy and aims to boost taxable income. Stricter measures on capital gains, inheritance and gift taxes, which are much higher than in other countries, have resulted in a tendency to keep assets abroad. “In that regard, I urge team members to approach their duties as guardian angels for every overseas Korean, acting attentively and responsibly to ensure that they do not experience hardships or disadvantage

Jan 21, 2026By Yi Whan-woo
Tax agency launches outreach initiative to help overseas Koreans return home

Gov't to ease regulations on cloud-based software at financial firms

Financial authorities are moving to ease network separation rules that have long constrained the use of cloud-based software by financial services providers, in a major step toward modernizing a tightly regulated financial IT environment, market watchers said Monday. The reform is expected to significantly lower compliance barriers for financial firms, accelerating digital transformation and elevating Korea’s regulatory framework closer to global standards. The Financial Services Commission (FSC) and Financial Supervisory Service (FSS) said they will run a notice period before the revisions to the law governing electronic financial supervision. The revisions will allow financial entities to use cloud-based software-as-a-service (SaaS) applications on internal business networks without going through the “innovative financial services designation” process, as long as they meet strict security requirements. Central to the move is a partial easing of Korea’s network separation rules stipulating that financial entities’ internal systems should be isolated from external networks. The

Jan 19, 2026By Lee Kyung-min
Gov't to ease regulations on cloud-based software at financial firms

Shinhan Asset Management, Pareto Securities fined for illegal short selling

The Securities and Futures Commission under the Financial Services Commission (FSC) has imposed a combined 3.97 billion won ($2.69 million) in fines on six domestic and foreign asset managers and securities firms for engaging in naked short selling, market watchers said Monday. Naked short selling refers to the practice of short-selling shares without first borrowing them from another party. The large scale of fines, the first since the full resumption of short selling last March, is indicative of a tougher regulatory stance in the coming months, reflecting a policy shift toward “zero tolerance” enforcement. Previous similar violations have been sanctioned, but penalties were negligible in size and impact. The authorities’ stringent measures are meant to illustrate that Korea’s short selling market is not only open but strictly managed, an approach intended to bolster investor confidence while strengthening the market’s credibility on the global stage. According to government sources, Shinhan Asset Management was fined 370.6 million won after authorities found it had placed sel

Jan 19, 2026By Lee Kyung-min
Shinhan Asset Management, Pareto Securities fined for illegal short selling

Banks likely to loosen lending criteria in Q1: BOK survey

Banks in Korea are expected to slightly ease lending standards in the first quarter amid authorities' continued efforts to rein in household lending, a central bank survey showed Monday. According to a Bank of Korea (BOK) survey of 18 commercial lenders, the index measuring banks' lending attitudes stood at 8 for the January-March period, up sharply from minus 21 in the fourth quarter of 2025. A reading below zero indicates that more lenders plan to tighten, rather than ease, credit standards. The first-quarter figure marked the first time the index has registered a reading above zero since the first quarter of 2025. By sector, the index for home mortgage lending came in at 6 for the first quarter, compared with minus 44 in the previous quarter. The indexes for loans to large companies and small- and mid-sized enterprises (SMEs) stood at 6 and 11, respectively. "Demand for housing-related loans is expected to rise slightly, driven by home purchases and demand for lease financing," a BOK official said. "For corporate loans, banks are likely to maintain an accommodative lending stance, though

Jan 19, 2026By Yonhap
Banks likely to loosen lending criteria in Q1: BOK survey

Commercial lenders, financial entities rush to counter weakening won

Financial authorities are strengthening coordinated efforts with banks, insurers and brokerages to prevent the Korean currency from weakening to 1,500 won relative to the U.S. dollar, part of a shift away from monitoring to supervisory intervention of both retail and corporate dollar demands, market watchers said Sunday. Financial service providers are instructed to curb dollar-focused marketing and incentivize dollar-to-won conversion, reflecting the belief that private-sector dollar hoarding is a significant issue driving the won's weakness. Whether this pressure will slow the won’s depreciation will become clearer in the weeks ahead. Skepticism lingers that financial institutions are able to reorient their business strategies, especially when factoring in currency stability considerations at the expense of near-term margins. According to financial market sources, the Financial Supervisory Service (FSS) and Bank of Korea (BOK) have had several meetings with financial institutions recently to discuss the won's sustained depreciation. The currency weakening is driven in part, they say,

Jan 18, 2026By Lee Kyung-min
Commercial lenders, financial entities rush to counter weakening won

BOK again holds key rate steady amid weak won, hints at prolonged pause

Korea's central bank again left its benchmark interest rate unchanged Thursday as a weakened won and rising inflation concerns limited room for further easing. In a widely expected decision, the Monetary Policy Board of the Bank of Korea (BOK) held the key rate at 2.5 percent at its rate-setting meeting in Seoul, marking the fifth consecutive on-hold decision since July. "Inflation is expected to gradually decline, though the elevated exchange rate remains a source of upside risk. Regarding financial stability, risks still remain related to housing prices in Seoul and its surrounding areas, to household debt and to the heightened exchange rate volatility," the BOK said in a released statement. Thursday's rate freeze decision was unanimous, while one of the board's six members voiced the need to keep open the possibility of further rate reductions in the next three months, BOK Gov. Rhee Chang-yong told a press briefing. The BOK dropped references to a possible rate cut from its policy statement for the first time since it entered an easing cycle in October 2024. "Beyond the three-month tim

Jan 15, 2026By Yonhap
BOK again holds key rate steady amid weak won, hints at prolonged pause

Procurement agency partners with KOTRA for SMEs’ overseas advancement

The Public Procurement Service (PPS) has partnered with the Korea Trade-Investment Promotion Agency (KOTRA) to boost Korean businesses’ expansion into overseas procurement markets, PPS said Wednesday. It said a joint seminar was held at The Ambassador Seoul — A Pullman Hotel, attracting more than 60 small and medium-sized enterprises (SMEs) to explore opportunities in around 190 countries. The seminar took place as part of a cross-ministry effort to lower barriers and enhance cooperation for SMEs, which have relatively fewer opportunities than larger companies. PPS operates under the Ministry of Economy and Finance and is in charge of procuring goods and services for all government agencies and state-run organizations. KOTRA is a state-run company responsible for promoting trade and investment under the Ministry of Trade, Industry and Energy. The seminar was a follow-up event to last year’s PPS-hosted Global Public Procurement Marketplace, the nation’s largest overseas procurement consultation fair. “The seminar is expected to encourage more Korean companies to enter overseas pro

Jan 14, 2026By Yi Whan-woo
Procurement agency partners with KOTRA for SMEs’ overseas advancement

Can Korea’s AI law stop deepfake crimes as Musk’s Grok comes under fire?

As Elon Musk's artificial intelligence company xAI faces backlash over deepfake images, Korea's Framework Act on the Development of Artificial Intelligence is set to take effect next week. All eyes are on whether this legislation — the world’s first comprehensive AI regulation — can effectively fulfill its role. However, skepticism is growing about the law’s effectiveness, with many predicting it will face practical hurdles in blocking xAI’s deepfake services or restricting access. Industry officials said Tuesday that xAI’s AI model, Grok, continues to offer features on Musk’s social media platform X that turn everyday photos into sexually explicit deepfake images. While Malaysia and Indonesia have restricted access to the platform and other nations have launched legal investigations — prompting xAI to limit the feature to paid subscribers — concerns remain. The act, which takes effect Jan. 22, was enacted to strengthen AI operators’ responsibilities and create a foundation aimed at fostering trust in an AI-driven society. Preventing deepfake crimes has been cited as

Jan 14, 2026By Hankookilbo
Can Korea’s AI law stop deepfake crimes as Musk’s Grok comes under fire?

BOK expected to keep interest rate unchanged this week: poll

The Korean central bank is widely expected to keep its policy rate unchanged this week in a bid to support the weakening currency and ease an unsettled property market, a poll showed Monday. According to a survey by Yonhap Infomax, the financial news arm of Yonhap News Agency, all 25 local analysts and experts polled said the Bank of Korea (BOK) will leave its benchmark rate unchanged at 2.5 percent at its policy meeting Thursday. A separate Yonhap News Agency survey of six additional experts also found unanimous expectations for a rate freeze this month. The BOK's Monetary Policy Board has held the key rate steady for four consecutive meetings through November, though the central bank entered an easing cycle in October 2024. "Factors undermining financial stability persist, including the weak won and overheated sentiment in the property market," Yoon Yeo-sam, an analyst at Meritz Securities, said. "Economic growth is expected to improve to above the 2 percent range this year, while inflation is running in the low to mid-2 percent range, making the current environment unfavorable for rate

Jan 12, 2026By Yonhap
BOK expected to keep interest rate unchanged this week: poll
previous page
1819202122
next page

Most Read in Economy