Economy - The Korea Times

Gov't to extend ban on petroleum hoarding for another 2 months amid prolonged Middle East conflict

The government will extend its ban on hoarding petroleum products for another two months amid continued supply concerns stemming from the standoff in the Middle East, Finance Minister Koo Yun-cheol said Thursday. In March, the government announced a temporary ban on the hoarding and stockpiling of petroleum products to prevent unfair practices. The measure was originally set to expire next Tuesday. "The notice banning the hoarding of petroleum products will be extended by two months through July to prevent unfair practices, such as refusing sales under the guise of the petroleum price ceiling," Koo said while presiding over a ministerial-level economic policy meeting. Koo also said the government would introduce additional measures, such as actively utilizing a reward program, to crack down on hoarding and other unfair practices. The latest measure is part of the government's ongoing efforts to ensure a stable supply of essential goods, including food and medical supplies. Earlier, U.S. President Donald Trump raised the possibility that a peace agreement with Iran could be reached before

May 7, 2026By Yonhap

Gov't to extend ban on petroleum hoarding for another 2 months amid prolonged Middle East conflict

Gov't to launch $412 mil. state-backed fund for retail investors in AI, chip industries

Retail investors will soon be able to invest in a government-backed investment fund aimed at fostering next-generation industries such as artificial intelligence (AI), semiconductors and biotechnology, officials said Wednesday. Of the broader 150 trillion won ($ 103.4 billion) state-backed Public Growth Fund — one of President Lee Jae Myung’s key economic initiatives targeting 12 strategic industries — 600 billion won annually over the next five years will be set aside for direct public participation. The subscription period will run from May 22 to June 11. According to the Financial Services Commission (FSC), retail investor money will be pooled into a fund of funds, or master fund, which will then allocate capital across subfunds operated by 10 selected asset management firms. To enhance returns, investors will receive tax incentives, including income deductions of up to 40 percent and separate taxation on dividends. Each sub-fund must invest at least 60 percent of its assets in companies tied to sectors such as semiconductors, secondary batteries, future mobility and AI. Within

May 6, 2026By Park Han-sol

Gov't to launch $412 mil. state-backed fund for retail investors in AI, chip industries

Finance chief, Uzbek president discuss cooperation in infrastructure, critical minerals

Finance Minister Koo Yun-cheol and Uzbek President Shavkat Mirziyoyev discussed ways to strengthen cooperation in critical minerals and infrastructure, the finance ministry said Tuesday. The talks took place in Samarkand on Sunday (local time), as Koo visited the Uzbek capital to attend a series of international meetings, including the annual meeting of the Asian Development Bank, according to the Ministry of Finance and Economy. During the talks, Koo emphasized the need for the two countries to expand cooperation in the bio industry, infrastructure projects such as railways and airports, and critical supply chains, the ministry said. Koo also called for opening more windows of opportunity for Korean companies to make inroads into the Central Asian country through joint projects. He further expressed hope that such cooperation would enable the two countries to jointly lead the development of high-tech industries as well as transportation and logistics across Central Asia, and achieve shared prosperity. In response, Mirziyoyev said the two countries have maintained a special friendship sin

May 5, 2026By Yonhap

Finance chief, Uzbek president discuss cooperation in infrastructure, critical minerals

Presidential policy chief forecasts slower housing price growth beginning in May

The local housing market may see slower price growth starting in May, when the government is set to end tax benefits to owners of multiple homes, the presidential chief of staff for policy forecast Monday. Kim Yong-beom made the forecast at a press conference ahead of the government's withdrawal of exemptions from aggravated real estate transfer taxes for owners of multiple homes, set to take effect Saturday. The measure has led owners of multiple homes to sell their properties, partially curbing runaway price hikes, but fears have also grown that the housing market may revert to sharp price increases. "I expect (price increases) may be slower," Kim said, adding that the market is registering the government's policy stance on real estate-related taxes. Following the announcement of the tax benefit withdrawal, the most affluent districts in Seoul, including Gangnam and neighboring areas, have seen a sharp increase in homes listed for sale, while prices have trended downward there, Kim noted. Over the past several months, home sales in Seoul have more than doubled compared with the average

May 4, 2026By Yonhap

Presidential policy chief forecasts slower housing price growth beginning in May

Trade minister meets Mexican ambassador to discuss FTA talks, tariff concerns

Yeo Han-koo, Korea's trade minister, met Thursday with Carlos Penafiel Soto, Mexico's ambassador to Korea, to discuss ways to expand economic and trade cooperation between the two countries. The meeting comes amid growing uncertainty in the global trade environment driven by the spread of protectionism. Mexico is Korea's largest trading partner in Latin America, and both sides said they sought to explore cooperation amid the challenging conditions. The two officials agreed that a Korea-Mexico free trade agreement will serve as a catalyst for activating bilateral trade and investments and pledged to continue high-level consultations to resume negotiations, which have been stalled since 2022, as soon as possible. Yeo conveyed concerns from Korean businesses over Mexico’s tariff increases that took effect in January, as well as the scheduled July review of the United States-Mexico-Canada Agreement (USMCA). He urged the Mexican side to ensure that Korean companies operating in Mexico can continue their business activities under stable and predictable conditions. "Mexico is a key gateway fo

Apr 30, 2026By Jhoo Dong-chan

Trade minister meets Mexican ambassador to discuss FTA talks, tariff concerns

Korea moves to cut food prices as holiday spending nears

The Ministry of Agriculture, Food and Rural Affairs (MAFRA) announced a sweeping series of discounts on processed foods, Wednesday, enlisting Korea’s largest food manufacturers in a campaign to blunt the impact of stubborn inflation during a month characterized by heavy family spending. The initiative will see 16 major food companies slash prices on 4,373 items throughout May. The discounts, which reach as high as 58 percent, arrive as the government seeks to stabilize a domestic economy increasingly pressured by volatility in the Middle East and fluctuating global commodity prices. May is traditionally a peak period for consumer expenditures in Korea, marked by a succession of public holidays including Labor Day (May 1), Children’s Day (May 5) and Buddha’s Birthday (May 24 and 25). Ministry officials noted that the timing was intentional, aimed at providing tangible relief to households whose purchasing power has been eroded by rising grocery bills. "This campaign is the result of active cooperation between the government and the food industry to stabilize prices despite difficul

Apr 30, 2026By Jhoo Dong-chan

Korea moves to cut food prices as holiday spending nears

Financial regulator's sanctions tested by mounting wave of courtroom battles

The Financial Services Commission (FSC) is facing a growing wave of legal challenges as financial firms increasingly contest its sanctions and fines, signaling a broader pushback against the regulator’s more aggressive enforcement stance, according to industry officials, Wednesday. This rise in litigation has coincided with a string of notable courtroom setbacks for authorities, putting the credibility and practical force of the country’s financial sanctions framework under pressure. Most recently, U.S. trading firm Citadel Securities secured a lower court victory after contesting an 11.8 billion won ($7.98 million) fine imposed in 2023 over ultra-short-term algorithmic trading. The case marked Korea’s first financial penalty targeting high-frequency trading and, at the time, represented the largest surcharge ever issued by the FSC. Regulators have since appealed, but the ruling exposed vulnerabilities in the legal rationale of the watchdog’s enforcement approach. The sharp increase in legal disputes began after amendments to the Capital Markets Act in 2023 substantially raised m

Apr 29, 2026By Park Han-sol

Financial regulator's sanctions tested by mounting wave of courtroom battles

Gov't launches inter-ministry council to bridge gaps in shipbuilding, shipping industries

The Ministry of Trade, Industry and Energy and the Ministry of Oceans and Fisheries jointly launched a public-private council Tuesday to strengthen cooperation between Korea’s shipbuilding and shipping industries, as concerns mount over weak coordination between the two sectors, despite their global competitiveness. The Shipbuilding-Shipping Mutual Growth Strategy Council was launched at Lotte Hotel Seoul, drawing about 100 participants, including the ministers of trade and energy and of oceans and fisheries, as well as the heads of Korea Gas Corp., the Korea Shipbuilding & Offshore Plant Association and the Korea Shipowners’ Association, along with senior executives from major shipbuilders and shipping firms. Korea holds the world’s second-largest share of shipbuilding orders and ranks fourth globally in shipping capacity, yet critics have pointed to weak coordination between the two industries. The initiative comes amid growing concerns over geopolitical risks to energy supply chains, including disruptions linked to the conflict in the Middle East. The council unveiled a four-pr

Apr 28, 2026By Jhoo Dong-chan

Gov't launches inter-ministry council to bridge gaps in shipbuilding, shipping industries

Finance chief highlights capital market reforms to boost growth

Finance Minister Koo Yun-cheol said Tuesday the government aims to further develop the capital market for economic growth, emphasizing ongoing reform efforts to advance the country's financial and foreign exchange markets. "The Korean government is making all-out efforts to position the capital market as a core engine of economic growth and to upgrade it in line with global standards," Koo was quoted by the finance ministry as saying during a meeting with James Kim, chairman of the American Chamber of Commerce in Korea (AMCHAM). The ministry cited a comprehensive road map aimed at securing Korea's inclusion in the developed market index of global index provider Morgan Stanley Capital International (MSCI). He highlighted plans to operate the country's foreign exchange market on a 24-hour basis and to establish an offshore won settlement system. "We will build momentum so that Korea's capital market can earn a fair 'Korea premium' by steadily implementing the tasks outlined in the MSCI road map," Koo said. In response, Kim said Korea needs to further strengthen the competitiveness of its ca

Apr 28, 2026By Yonhap

Finance chief highlights capital market reforms to boost growth

Tax agency collects $23 mil. unpaid taxes by uncovering hidden overseas assets

A foreign athlete who earned a high salary in Korea’s professional sports league left the country for an overseas team without filing taxes, only to be tracked down and forced to pay up overdue income tax, according to the National Tax Service (NTS), Monday. The agency identified the player’s assets through information-sharing with foreign tax authorities and recovered the unpaid taxes through cross-border collection. The athlete ultimately settled the arrears through a local representative. The case underscores a broader push by the tax agency, which has recovered a total of 33.9 billion won ($23 million) in delinquent taxes over the past nine months through cooperation with tax authorities in three countries. The amount, recovered since NTS Commissioner Lim Kwang-hyun took office in July 2025, accounts for the bulk of the agency's total cross-border collections of 37.2 billion won since 2015. In another instance, a foreign business operator left Korea during an ongoing tax audit, anticipating a hefty bill. The NTS traced its financial accounts in a third country along with high-val

Apr 27, 2026By Park Han-sol

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