Economy - The Korea Times

Oceans ministry to begin preparations for relocation to Busan by year-end: minister

The Ministry of Oceans and Fisheries will begin interior construction of its new headquarters in Busan next month to complete its relocation by the end of this year, Oceans Minister Chun Jae-soo said Thursday, calling it the first step in transforming the southern region into a global maritime hub. "We will lay a solid foundation for developing a maritime capital region," Chun said in a press conference marking the first 100 days of the Lee Jae Myung administration. The planned relocation to Busan, Korea's largest port city located about 330 kilometers southeast of Seoul, was one of Lee's key election campaign pledges aimed at developing Busan into a global maritime hub amid the envisioned expansion of Arctic shipping routes. The ministry currently sits in the central administrative city of Sejong, along with most other central government ministries. The ministry will encourage local shipping companies to relocate to Busan, as well, partly by offering various incentives, while working to establish a new maritime court and an investment corporation for the southeastern region in the city

Sep 11, 2025By Yonhap

Oceans ministry to begin preparations for relocation to Busan by year-end: minister

Gov't to launch 15 public-private task forces to drive 'super-innovation economy'

The government will establish 15 task forces made up of members from both the public and private sectors to lead individual projects aimed at creating new growth engines, the finance ministry said Wednesday. The initiative was discussed and finalized during a ministerial meeting chaired by Finance Minister Koo Yun-cheol, as part of the Lee Jae Myung administration's five-year economic development blueprint to create what it calls a "super-innovation economy." The government views the next five years as the last golden time to achieve significant breakthroughs to achieve sustainable growth and aims to produce tangible results by 2030, the ministry said. The ministry emphasized the urgency of structural transformation, citing challenges such as population decline, reduced investment and stagnant productivity, which are contributing to a projected decline in the country's potential growth rate. With a goal of raising the country's potential growth rate to 3 percent, the government will push forward innovation projects in sectors such as energy, new materials and K-food. The government plans

Sep 10, 2025By Yonhap

Gov't to launch 15 public-private task forces to drive 'super-innovation economy'

InterviewTop OECD stats official finds Korea right on track to elevate Statistics Korea

Korea is right on track to enhance the role of its national statistical office with broadened responsibilities to meet the challenges of an artificial intelligence (AI)-driven future in data management, the OECD’s top statistics official said. Steve MacFeely, chief statistician and director of the Statistics and Data Directorate at the OECD, also said Korea’s substantial investments in AI could help the country consolidate its leading position in global AI indexes. “I think this is tremendous ... Korea is one of the first countries to really embrace the marriage and the core responsibility of statistics and data together,” he said in an exclusive interview with The Korea Times during his visit to Seoul for a global conference hosted jointly by Statistics Korea and the OECD. The two-day conference, which began Tuesday, was themed “AI for Data, Data for AI: Shaping the Future of Official Statistics.” MacFeely’s remarks came after the Lee Jae Myung administration announced Sunday a plan to elevate Statistics Korea to a higher-level agency under the Prime Minister’s Office

Sep 9, 2025By Yi Whan-woo

Top OECD stats official finds Korea right on track to elevate Statistics Korea

InterviewInnovative service sectors to power industrial shift toward 'KOSPI 5,000': KRX chairman

Korea Exchange (KRX) Chairman and CEO Jeong Eun-bo sees a sweeping industrial shift led by the innovative service sectors as key to propelling the benchmark KOSPI to an unprecedented 5,000 points. These promising sectors leverage knowledge, while supporting and integrating with manufacturing, to move away from decades of reliance on traditional brick-and-mortar businesses, according to Jeong. To this end, the chairman reaffirmed his commitment to crack down on underperforming “zombie companies” and promised to root out persistent unfair trading practices which have significantly contributed to the undervaluation of Korean equities. “We need to boldly pursue industrial structural transformation, as it is becoming increasingly difficult for traditional manufacturing industries to stay competitive,” Jeong said in a recent exclusive interview with The Korea Times, marking the midpoint of his three-year term that began on Feb. 15, 2024. The push for change under Jeong’s leadership is in line with President Lee Jae Myung’s call to elevate the KOSPI to the 5,000-point milestone as p

Sep 5, 2025By Yi Whan-woo

Innovative service sectors to power industrial shift toward 'KOSPI 5,000': KRX chairman

Tax agency launches tailored measures to address $79 bil. in unpaid taxes

Tax authorities on Thursday announced a new set of tailored measures to manage growing unpaid taxes that stand at over 110 trillion won ($79 billion), also deploying more than 2,000 officials. The newly formed task force will conduct in-person visits to the homes of all delinquent taxpayers to assess their financial circumstances and apply customized strategies, according to the National Tax Service (NTS). Unpaid national taxes stood at 102.5 trillion won in 2022 and climbed further to 110.7 trillion won as of last year, partly due to a prolonged economic slowdown and shortages in tax administration personnel, the NTS said. The new unit is set to be launched in March, and will visit each of the estimated 1.33 million delinquent taxpayers at least once to assess their economic status and classify them accordingly. "The new management unit will serve both as an auxiliary force in tax collection and as a support system for those facing genuine financial hardship," said Ahn Deok-soo, a senior NTS official. Delinquent taxpayers with no assets will be connected with welfare programs to support

Sep 4, 2025By Yonhap

Tax agency launches tailored measures to address $79 bil. in unpaid taxes

Restructuring of public institutions gains momentum to curb soaring national debt

State-run enterprises and other public institutions may undergo sweeping restructuring, including possible mergers and shutdowns, as the government seeks to rein in mounting debt, experts said Monday. They said the national debt-to-GDP ratio is projected to climb sharply during President Lee Jae Myung’s term, from 49.1 percent in 2025 to 58 percent by 2029. The warning comes on the heels of the Lee administration’s record-breaking budget proposal on Friday, which would raise next year’s government spending by 54.7 trillion won to a total of 728 trillion won ($522.53 billion). The 54.7 trillion won is the largest year-on-year increase in history, surpassing the 49.7 trillion won increase in 2022 under the Moon Jae-in administration, which faced criticism for excessive fiscal expansion. Despite growing concerns over fiscal discipline, the Lee administration argues that aggressive government spending is necessary to support economic recovery. At the same time, it has pledged to cut costs in other areas, particularly through reforms targeting publicly run institutions, which Lee has cal

Sep 2, 2025By Yi Whan-woo

Restructuring of public institutions gains momentum to curb soaring national debt

Cap on bank deposit guarantee to be hiked to $72,000 this week

The maximum amount of bank deposits protected by the state will be doubled to 100 million won ($71,919) starting this week, as the financial sector braces for a possible overheating of competition to attract more deposits, industry sources said Sunday. The increase in the ceiling from the current 50 million won to 100 million won is set to take effect Monday, marking the first hike since 2001. Under the revised regulation, passed by the National Assembly late last year, deposits of up to 100 million won will be protected in the event of contingencies, including the bank itself going bankrupt. Separately, it will also cover up to 100 million won in retirement pensions, pension savings and insurance payouts. The hike is expected to help ensure the safety of deposits, and also boost convenience for those who previously deposited their savings in separate accounts for protection. However, the increase has also raised concerns over the possible mass transfer of deposits to the secondary financial sector, such as savings banks and insurance firms that generally offer a higher interest rate than

Aug 31, 2025By Yonhap

Cap on bank deposit guarantee to be hiked to $72,000 this week

FSS chief prioritizes consumer protection in 1st meeting with bank CEOs

Financial Supervisory Service (FSS) Gov. Lee Chan-jin on Thursday stressed the role of banks in safeguarding financial consumers and restoring public trust, pledging to make consumer protection the top priority in all future supervisory and inspection activities. Lee urged the establishment of a preventive protection system to avoid a recurrence of large-scale losses, such as those from Hong Kong-tied equity-linked securities (ELS). He also called for stronger internal controls powered by artificial intelligence (AI) to prevent incidents such as personal data breaches and employee embezzlement. He made the remarks during a meeting with the heads of 20 domestic banks, where he discussed key challenges facing the banking sector and the direction the financial institutions should pursue. It was his first official move since taking office earlier this month. “From now on, the FSS will place consumer protection at the forefront of all supervisory and inspection activities, making it a core and unwavering principle,” he said. “Banks can achieve sustainable growth only when financial cons

Aug 28, 2025By Jun Ji-hye

FSS chief prioritizes consumer protection in 1st meeting with bank CEOs

National Assembly pushes bills to restrict foreign property purchasers

The National Assembly is pushing legislation to further restrict property purchases by foreign nationals by making permanent a policy requiring government approval before buying real estate in the greater Seoul area, industry officials said Wednesday. The legislation aims to codify the government policy that took effect on Tuesday. Although the measure is currently slated to remain in place for one year with the option of an extension, enshrining it in law would make it permanent. There appears to be little disagreement between the ruling and opposition parties over the move to tighten regulations on foreign real estate acquisitions, raising expectations that the legislation will advance quickly. As of Wednesday, a total of 12 proposed bills focus on establishing requirements for prior government approval, verified residence and full transparency in funding sources. On Monday, Rep. Yoon Joon-byeong of the ruling Democratic Party of Korea and nine other lawmakers introduced a bill requiring foreign nationals to live in the purchased property for three years. The bill includes penalty prov

Aug 28, 2025By Lee Yeon-woo

National Assembly pushes bills to restrict foreign property purchasers

Banks may face expanded liability to compensate voice phishing victims

Commercial banks may be asked to compensate victims of voice phishing scams even when the victims themselves transferred money, according to financial authorities, Tuesday. This move goes beyond the current practice of banks compensating only for deceptive or unauthorized withdrawals by scammers, implying broader responsibility for lenders to protect customers from financial crimes. “The Financial Services Commission (FSC), in a special task force involving other relevant financial organizations, is discussing the appropriate level of compensation when victims themselves send money to scammers,” a government official said, asking not to be named. “Nothing has been finalized yet, as discussions are still in the early stages, but various options are on the table,” he added. The discussion comes as voice phishing scams grow more organized and sophisticated, taking an increasing toll on consumers. Data compiled by the National Police Agency (NPA) indicates financial losses from voice phishing scams are expected to surpass 1 trillion won ($718.02 million) for the first time this year. L

Aug 26, 2025By Yi Whan-woo

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