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Surprised by 2,000-won instant noodles, Lee gov't set to fight food price hikes

The fight against soaring food prices has become a top economic task for the newly launched Lee Jae-myung administration, with both the president and prime minister nominee targeting the increases as a major concern. According to officials from food products and restaurant industries Thursday, Prime Minister nominee Kim Min-seok summoned representatives of food and restaurant business associations to a closed-door meeting in Seoul the following day. It is rare for a prime minister nominee to hold such a meeting, which would usually be convened by the minister or vice minister of agriculture, food and rural affairs. The meeting comes as a follow-up measure of Lee’s order to take all possible measures to stabilize commodity prices. Earlier this week, Lee ordered economy-related ministries to present policies to curb inflation, expressing surprise over news reports that some instant noodle brands now cost more than 2,000 won ($1.50) per pack. His reaction prompted a 4.64 percent drop in the share price of Nongshim, which is more reliant on domestic sales than competitors such as Otoki and

Jun 12, 2025By Park Jae-hyuk
Surprised by 2,000-won instant noodles, Lee gov't set to fight food price hikes

Small businesses unnerved by possible minimum wage hike under Lee gov’t

Small businesses and self-employed individuals are unnerved by a possible hike in next year’s minimum wage, after liberal President Lee Jae-myung took office last week, according to market experts, Thursday. The increase in the minimum wage has been considered in recent years as a key source of burden for millions of small businesses and self-employed individuals nationwide, who are struggling to stay afloat, they said. On Wednesday, labor unions proposed the 2026 minimum wage be set at 11,500 won ($8.46), up 14.7 percent from this year. The management side is yet to come up with a counterproposal, but is widely anticipated to demand the rate remains unchanged from this year’s 10,030 won. A 2024 survey taken by the Federation of Korean Industries (FKI), a business lobby group, on 500 self-employed individuals showed that 48 percent of respondents found the minimum wage to be burdensome to the sustainability of their businesses. The most recent data from Statistics Korea showed that about 986,000 small businesses shut down in 2023 in the middle of prolonged economic slowdown. That figu

Jun 12, 2025By Yi Whan-woo
Small businesses unnerved by possible minimum wage hike under Lee gov’t

Financial authorities accelerate AI use guidelines in line with Lee's initiative

Financial authorities are accelerating efforts to revise guidelines on the use of artificial intelligence (AI) in the financial sector, in line with the newly launched Lee Jae-myung administration's push to make AI-related legislation a core policy, officials said Thursday. Lee has pledged to invest 100 trillion won ($73 billion) in AI and to position Korea as one of the world's top three AI powerhouses. He has also established a senior presidential secretary for AI within the presidential office. To align with the new administration's AI policy direction, the Financial Services Commission (FSC) recently signed an additional contract worth 20 million won to broaden an ongoing research project aimed at revising AI use guidelines in the financial sector. Initially launched in March, the study was extended to incorporate recent shifts in AI-related policies and to deepen its scope and focus. The existing guidelines, introduced in December 2021, are nonbinding recommendations that urge financial institutions to uphold principles such as fairness and accountability when deploying AI. However,

Jun 12, 2025By Jun Ji-hye
Financial authorities accelerate AI use guidelines in line with Lee's initiative

Ruling party's move to restrict operations of large offline retailers faces criticism

The ruling Democratic Party of Korea (DPK) is raising concerns over its push to revive operational restrictions on large offline retailers in the name of protecting small retailers, as experts say the measure will only aggravate an already sluggish domestic demand. The DPK said the controversial move is in line with President Lee Jae-myung’s attempt to spur domestic demand, a key driver of Korea’s economic growth, through expansionary fiscal policy and financial support for self-employed individuals. But the experts say that reinstating the mandatory closure rule for discount store chains and supermarkets will hinder consumers from buying goods and services. The rule was imposed in 2012, requiring discount store chains and supermarkets to shut down every second and fourth Sunday of each month. Such restricted business hours were intended to protect traditional markets and mom-and-pop stores from losing sales. The regulation, however, did not necessarily induce consumers to turn to smaller retailers, especially amid a spending shift from offline to online. As a result, the relevant gui

Jun 12, 2025By Yi Whan-woo
Ruling party's move to restrict operations of large offline retailers faces criticism

New vice finance minister vows swift implementation of extra budget focused on economic recovery

Lim Ki-keun, the newly appointed second vice finance minister, said Wednesday the government will swiftly draw up an extra budget aimed at revitalizing the economy and stabilizing the livelihoods of ordinary people. "Given the extremely difficult economic situation, the supplementary budget needs to be prepared with a strong sense of urgency," Lim, former chief of the Public Procurement Service, told reporters. President Lee Jae-myung earlier ordered the government to expedite preparations for an extra budget, directing relevant ministries to identify key projects that can support economic recovery and boost private consumption. Lim echoed the need for such an approach, highlighting the need to prioritize projects that can achieve both economic stimulus and stabilization of public livelihoods. During his presidential campaign, Lee pledged to implement a supplementary budget of at least 30 trillion won ($22.1 billion) to reinvigorate the sluggish economy. Industry watchers estimate the upcoming extra budget will amount to at least 20 trillion won, as the National Assembly already approved

Jun 11, 2025By Yonhap
New vice finance minister vows swift implementation of extra budget focused on economic recovery

President vows to confiscate gains from stock price rigging

President Lee Jae-myung expressed his intention to introduce a tough new policy targeting unfair stock trading, the presidential spokesperson said Wednesday. According to presidential spokesperson Kang Yu-jung, Lee ordered that heavy penalties be imposed on individuals involved in illicit trading practices in a "one strike, you're out" policy. The directive came during a field meeting held at the Korea Exchange’s (KRX) focus on eradicating unfair trading. "The new administration is preparing strong sanctions that will immediately expel individuals involved in unfair trading practices, such as stock manipulation, and fully reclaim their unjust gains through penalties," Kang said. "This marks a shift from lenient measures like warnings or administrative fines to a strict one-strike-out approach." During the meeting at the KRX, Lee pledged to actively pursue a range of reforms to revitalize the capital market, interpreting the 5.8 percent surge in the benchmark KOSPI index since his inauguration on June 4 as a sign of public trust in the new administration. "To revitalize the capital mark

Jun 11, 2025By Lee Yeon-woo
President vows to confiscate gains from stock price rigging

Lee administration pushes for 'bad bank' to aid small businesses

Discussions on establishing a "bad bank" to relieve debt burdens for vulnerable groups, including small business owners, are gaining momentum with the launch of the Lee Jae-myung administration, according to government officials and market experts Wednesday. Financial authorities have already begun identifying the scale of long-term, small-scale delinquent loans. Additional details, such as the amount of debt to be acquired and the target beneficiaries, are expected to be outlined soon. During his campaign, Lee repeatedly pledged to pursue debt relief and restructuring for small business owners hit hard by the COVID-19 pandemic. "Substantial debt forgiveness, not just restructuring, is needed," Lee said in a televised debate during the presidential race. At the time, he pointed out that while other countries had absorbed the cost of the pandemic through increased government spending, Korea's approach of offering loans only led to a heavier debt burden for its people. Indeed, pandemic-related debt remains a significant burden for many small business owners. Since 2020, the government and fi

Jun 11, 2025By Jun Ji-hye
Lee administration pushes for 'bad bank' to aid small businesses

CEOs appointed by ex-gov't rekindle leadership dispute at public organizations

The Lee Jae-myung administration may have to carry out state affairs with hundreds of CEOs and other top managers at state-run organizations who were appointed under the previous government, as they have considerable time remaining before their tenures expire. A finding from corporate tracker Leaders Index showed that more than seven out of 10 chiefs at 312 public entities have at least one year remaining in their terms. Out of the nation's 331 state-run organizations, the 312 include state firms, government-funded associations, research labs and think tanks. The top posts are vacant at the remaining 19 organizations. Leaders Index said 221 of the 312 public organization chiefs have more than one year left in their terms. Of the 221, 56 leaders were appointed after former conservative President Yoon Suk Yeol declared martial law on Dec. 3, 2024. Moreover, 53 of the 56 were appointed after the National Assembly passed a bill to impeach Yoon on Dec. 14. The finding suggests that Lee's government will need to work with these holdover leaders. But whether they will fully cooperate remains unc

Jun 10, 2025By Yi Whan-woo
CEOs appointed by ex-gov't rekindle leadership dispute at public organizations

Finance sector may become first to implement Lee’s 4.5-day workweek pledge

Financial services workers are pushing to adopt a 4.5-day workweek as pledged by President Lee Jae-myung in a bid for a better work-life balance, according to industry officials, Monday. If implemented, the finance sector will be the first industry in Korea where salaried workers will work fewer than five days a week, a norm for full-time jobs over the years. Comprised of more than 100,000 workers from banking, credit card and other financial firms, the Korea Financial Industry Union (KFIU) said it is currently in talks with management over key labor issues for 2026. “And we want to newly address a possible 4.5-day workweek on the agenda list for negotiations, in addition to wage, employment benefit and welfare,” the union said. It noted that it has promoted a four-day workweek since 2019, and identified a 4.5-day workweek as “a transitional step to reach the central objective.” It said Lee “brings further momentum for us to fulfill the goal,” thanks to the newly-elected president advocating for a 4.5-day workweek and gradually shifting to a four-day workweek. Lee’s pledge co

Jun 10, 2025By Yi Whan-woo
Finance sector may become first to implement Lee’s 4.5-day workweek pledge

Can local business vouchers spur domestic demand?

What if the government handed out 250,000 won ($184.05) to every person, no questions asked, on the condition that it be spent locally? Consumers would likely welcome the move. Local merchants, too, would stand to benefit. But its effectiveness remains a point of debate — among both politicians and also economists in Korea. As the country grapples with a prolonged slump in domestic consumption, the new Lee Jae-myung administration is considering a return to one of his signature policies: local business vouchers. "Fiscal spending alone can’t revive domestic demand, but right now the market is so dried up it’s about to crack," Lee said during a YouTube appearance on May 30. "People aren’t spending because they simply don’t have the money. Introducing local vouchers could get money circulating faster and more widely." Local vouchers are a type of regional currency issued by municipal governments. They can be used only for consumer spending and typically offer a 7-10 percent discount on the original price. Usable only within designated areas, they are designed to boost spending at

Jun 9, 2025By Lee Yeon-woo
Can local business vouchers spur domestic demand?
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