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EXPLAINER How SKT data breach pushed inflation up by 0.6 percentage point

The fallout from SK Telecom's data breach last year has resurfaced in consumer inflation data a year later. In an unexpected twist, a 50 percent cut in mobile phone bills for more than 20 million subscribers at the time created a base effect that pushed up last month’s consumer inflation rate by nearly 0.6 percentage point, government data showed Wednesday. According to the Ministry of Data and Statistics, the consumer price index stood at 120.05 in August, up 3.1 percent from a year earlier. Inflation had accelerated from 2.6 percent in April to 3.1 percent in May and 3.2 percent in June before easing to 2.8 percent in July. It returned to the 3 percent range a month later. At first glance, the latest data may suggest that inflationary pressures are picking up again. But the August increase was largely driven by the fading impact of SK Telecom’s massive mobile bill discounts introduced last year following the incident, which potentially affected approximately 25 million customers. In August last year, the country’s largest wireless carrier cut mobile bills by 50 percent for all su

Sep 2, 2026By Jun Ji-hye
[EXPLAINER] How SKT data breach pushed inflation up by 0.6 percentage point
Economy

BOK says inflation to ease in Sept. but underlying pressures to persist

Inflation in September is expected to ease from the previous month as a base effect fades, but underlying price pressures will likely persist, particularly in core items, the central bank said Wednesday. "In August, the consumer price index rose at a faster rate than the previous month due to a base effect resulting from discount programs by a telecommunications company last year," Deputy Gov. Lee Ji-ho said during a meeting to review inflation trends. "In September, consumer price growth is expected to be lower than in August as the base effect fades, but the underlying upward trend is expected to continue, particularly in core items." Earlier in the day, government data showed that the country's consumer prices rose 3.1 percent in August from a year earlier as oil prices remained elevated. Higher mobile service subscription charges also contributed to the increase, due to the base effect from large-scale discounts offered last year following a hacking incident. The August figure marked a rebound from a 2.8 percent on-year rise in July, following increases of 3.1 percent and 3.2 percent

Sep 2, 2026By Yonhap
BOK says inflation to ease in Sept. but underlying pressures to persist
Economy

Seoul shares sharply down late Wed. morning on heightened Mideast tensions

Korean stocks traded sharply lower late Wednesday morning, weighed down by escalating military tensions in the Middle East. The benchmark Korea Composite Stock Price Index (KOSPI) was trading down 195.54 points, or 2.86 percent, to 6,640.26 as of 11:20 a.m. Overnight, U.S. stocks closed lower as inflation fears amplified due to higher oil prices after the United States and Iran exchanged strikes. The Dow Jones Industrial Average fell 0.79 percent, and the S&P 500 lost 0.71 percent. The tech-heavy Nasdaq composite dropped 1.03 percent. In Seoul, most shares went bearish across the board. Top-cap Samsung Electronics declined 2.97 percent, and SK hynix, the second-largest share in terms of market capitalization, tumbled 3.13 percent. Defense giant Hanwha Aerospace fell 3.02 percent, and leading shipbuilder HD Hyundai Heavy Industries slumped 5.08 percent. Hyundai Mobis, an auto parts affiliate under Hyundai Motor Group, sank 6.2 percent, and food giant CJ Cheiljedang slid 1.99 percent. The Korean won was quoted at 1,370.4 won against the U.S. dollar as of 11:20 a.m., up 3 won from the close of

Sep 2, 2026By Yonhap
Seoul shares sharply down late Wed. morning on heightened Mideast tensions
Economy

Consumer prices up 3.1% in August amid high oil prices

Korea's consumer prices moved up 3.1 percent in August from a year earlier as oil prices remained elevated. According to data from the Ministry of Data and Statistics, consumer price growth hovered above 3 percent in August, accelerating from a 2.8 percent on-year rise in July. The August increase was led by fuel prices, with diesel prices rising sharply by 19.6 percent and gasoline prices advancing 11.5 percent. Korea relies heavily on imports to meet its energy needs.

Sep 2, 2026By Yonhap
Consumer prices up 3.1% in August amid high oil prices
Economy

Corporate buybacks prop up KOSPI despite broad investor selling

Seoul stocks eked out modest gains Tuesday, as corporate buying helped the KOSPI hold above 6,800 despite net selling by retail, foreign and institutional investors. The benchmark index opened at 6,784.29, down 0.52 percent from the previous session, and extended its losses early in the day before gradually recovering to trade around the flat line. It ended at 6,835.8, up 0.23 percent. All three major investor groups were net sellers. Foreign investors offloaded 486.7 billion won ($355 million) worth of shares, while institutional and retail investors sold 634 billion won and 539.7 billion won, respectively. Companies, classified separately from the three main investor groups, provided a counterweight, purchasing a net 1.62 trillion won. Much of that buying was believed to have come from share buybacks by Samsung Electronics and SK hynix. Samsung Electronics rose 0.38 percent to 261,000 won, while SK hynix gained 1.14 percent to 1.69 million won. Analysts said corporate buying could provide a short-term floor for the market but was unlikely to drive a sustained rally. “Corporate investor

Sep 1, 2026By Park Han-sol
Corporate buybacks prop up KOSPI despite broad investor selling
Policy

Gov't eases property tax reform amid public backlash

The government scrapped a plan to lower the basic deduction under the comprehensive real estate tax to 900 million won ($657,000) for nonresident single-home owners, deciding to retain it at the current level of 1.2 billion won, the Ministry of Finance and Economy said Tuesday. The original measure was intended to tighten property tax rules for homeowners who do not live in their properties, but it faced substantial public opposition. The decision to drop the measure came after leaders of the ruling Democratic Party of Korea called for the government to reconsider it. The changes, however, are still subject to parliamentary approval and could be revised during the legislative process. The finance ministry said the Cabinet approved the final versions of 11 tax-related bills earlier in the day after consultations with relevant ministries. The original reform package, unveiled last month, sought to differentiate the tax treatment of single-home owners based on whether they actually lived in their properties. Under the proposal, the basic deduction would have risen from 1.2 billion won to 1.4

Sep 1, 2026By Jun Ji-hye
Gov't eases property tax reform amid public backlash
Policy

State spending to top $729 billion by 2030 amid fiscal expansion

Korea’s annual government spending will surpass 1 quadrillion won ($729 billion) for the first time by 2030, driven by aggressive fiscal expansion under the Lee Jae Myung administration, government figures showed Tuesday. According to the 2026-2030 fiscal plan published by the Ministry of Planning and Budget, government expenditure will reach 820.9 trillion won next year before climbing to 957.4 trillion won in 2029 and reaching 1.005 quadrillion won in 2030. The spending expansion is largely fueled by surging tax revenues, driven by strong corporate earnings in the semiconductor sector. National tax revenues are projected to jump 49.8 percent to 584.4 trillion won next year, up 194.2 trillion won from this year. Over a five-year period, revenues are forecast to grow at an average annual pace of 13.4 percent, reaching 644.8 trillion won by 2030. Despite record spending, the government expects to keep its fiscal deficit under control, supported by steady nominal economic growth. The government projects the managed fiscal deficit to remain below 3 percent of nominal gross domestic product

Sep 1, 2026By Jun Ji-hye
State spending to top $729 billion by 2030 amid fiscal expansion
Policy

Gov't bets big on AI, chips for 2027 budget to compete in global tech race

The government plans to significantly ramp up investment in artificial intelligence (AI) and semiconductors to prevent structurally low growth from becoming entrenched and strengthen Korea’s position in the global tech race through its record-high 2027 budget of nearly 821 trillion won ($599 billion), the Ministry of Planning and Budget said Tuesday. It has designated semiconductors, physical AI and AI data centers as the three megaprojects in its plan to provide comprehensive support, ranging from key infrastructure to technology development, with an injection of 21.3 trillion won. President Lee Jae Myung said at a Cabinet meeting that a major shift is underway in the global industrial order as the AI revolution, energy transition and restructuring of global supply chains converge to reshape the global economy and industries. "Against the backdrop of these sweeping changes, next year’s budget should serve as a solid foundation for Korea to emerge as a global leader in cutting-edge technologies," Lee said. "We need a productive fiscal strategy that uses expanded resources for future

Sep 1, 2026By Jun Ji-hye
Gov't bets big on AI, chips for 2027 budget to compete in global tech race
Cryptocurrency

ContributionHow stablecoin infrastructure and won-based systems can advance together

Over the past half-century, Korea's economic rise has rested on something less obvious than exports alone: a consistent ability to spot the shape of the next global system before it becomes obvious to everyone else. Shipbuilding, automobiles, semiconductors, broadband networks, consumer electronics and, more recently, cultural exports each reflect the same pattern of adapting early to new systems of production, trade and connectivity, and turning that shift into national strength. A similar transition may now be taking shape, this time not in manufacturing or telecommunications, but in the infrastructure of money and cross-border settlement. That shift is easy to miss, because most people still associate stablecoins mainly with crypto trading. That's an understandable read, but an increasingly incomplete one. The more consequential role for stablecoins may turn out to be as a new settlement layer for global commerce, corporate treasury management, digital services and cross-border finance. The real question isn't whether stablecoins will replace banks, payment companies or national curre

Sep 1, 2026By Giles Dixon
How stablecoin infrastructure and won-based systems can advance together
Economy

Seoul shares down Tuesday morning on renewed military tensions in Mideast

Korean stocks traded lower late Tuesday morning as investor sentiment was dampened due to renewed military tensions in the Middle East. The benchmark Korea Composite Stock Price Index (KOSPI) was trading down 10.98 points, or 0.16 percent, to 6,809.04 as of 11:20 a.m. Overnight, major U.S. stocks closed lower weighed down by a resumption of military clashes between the United States and Iran, while investors bet on a rate hike at the Federal Reserve's rate-setting meeting later this month after Fed Chair Kevin Warsh's hawkish speech at the Jackson Hole Symposium. The Dow Jones Industrial Average fell 0.7 percent and the S&P 500 lost 0.33 percent, while the Nasdaq composite declined 0.12 percent. In Seoul, major shares traded in mixed territory. Top-cap Samsung Electronics fell 0.1 percent, while SK hynix rose 1.19 percent. Auto giant Hyundai Motor declined 1.36 percent, and major defense firm LIG D&A dropped 2.31 percent. However, leading battery maker LG Energy Solution added 0.26 percent, and steel giant POSCO Holdings rose 2.07 percent. The Korean won was quoted at 1,369.85 won against th

Sep 1, 2026By Yonhap
Seoul shares down Tuesday morning on renewed military tensions in Mideast
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