Economy

Korea posts 1.3% Q3 GDP growth, faster than initial estimate: BOK

South Korea's economy expanded at the fastest pace in nearly four years in the third quarter, buoyed by strong exports and improving private consumption, central bank data showed Wednesday. The real gross domestic product (GDP) rose 1.3 percent in the July-September period from the previous quarter, 0.1 percentage point higher than the earlier estimate, according to preliminary data from the Bank of Korea (BOK). The reading marked the fastest quarterly expansion since the fourth quarter of 2021, when the economy grew 1.6 percent. It also accelerated from a 0.7 percent on-quarter rise in the second quarter and exceeded the BOK's prior projection of 1.1 percent. On an on-year basis, the economy expanded 1.8 percent in the third quarter, a sharp pickup from the 0.6 percent growth recorded in the second quarter. South Korea's GDP unexpectedly contracted 0.2 percent in the first quarter as a domestic political crisis triggered by former President Yoon Suk Yeol's martial law declaration and mounting uncertainty from U.S. President Donald Trump's sweeping tariff measures weighed on consumer sen

Dec 3, 2025By Yonhap

Korea posts 1.3% Q3 GDP growth, faster than initial estimate: BOK

Economy

OECD maintains S. Korea's 2025 growth outlook at 1%, projects improvement in 2026

The Organization for Economic Cooperation and Development (OECD) on Tuesday maintained its growth forecast for the South Korean economy at 1 percent this year, while projecting an improvement in 2026, according to Seoul's finance ministry. "Growth is picking up," the OECD said in a report released by the ministry, noting the country's real gross domestic product (GDP), a key measure of economic growth, is expected to weaken to 1 percent in 2025 before rising to 2.1 percent both in 2026 and 2027. The latest 2025 projection is unchanged from the OECD's previous outlook in September and aligns with the Bank of Korea's (BOK) most recent forecast. The forecast is slightly more optimistic than the 0.9 percent growth projected by the South Korean government, the Korea Development Institute (KDI) and the International Monetary Fund (IMF). Although the OECD outlook for next year was revised down by 0.1 percentage point from an earlier projection, it remains 0.3 percentage points higher than estimates by the IMF, BOK and the Seoul government, which had projected 1.8 percent. The OECD attributed the

Dec 2, 2025By Yonhap

OECD maintains S. Korea's 2025 growth outlook at 1%, projects improvement in 2026

Economy

IMF economist says Korea's economy to rebound in 2026 amid modest slowdown in Asia

An economist from the International Monetary Fund (IMF) said Tuesday that while Korea's economy is beginning to show signs of a rebound, downward pressures continue to challenge Asia's fourth-largest economy, even as the broader Asian market is expected to experience a modest slowdown next year. The assessment was made during an annual conference co-hosted by the Korea Institute for International Economic Policy (KIEP) and the IMF in Seoul, under the theme "Buffered Slowdown amid an Asymmetric World." According to the KIEP, the event was organized to examine structural changes affecting the global economy, including persistent trade tensions, the normalization of monetary policies in major countries and geopolitical risks, while discussing potential future policy directions. During the session, Sakai Ando, an economist in the IMF's Asia and Pacific Department, projected that the Asia's economic growth rate would gradually slow from 4.5 percent in 2025 to 4.1 percent in 2026. For Korea, the IMF forecast growth of 0.9 percent for this year and 1.8 percent for next year. "Growth has been res

Dec 2, 2025By Yonhap

Economy

Weak won fuels energy price hike concerns as state utility firms face FX losses

A weak Korean won is raising concerns about potential increases in electricity, gas and other utility prices, as state-run energy companies face growing foreign exchange losses, industry officials said Tuesday. These companies incur losses because they purchase energy resources, such as crude oil, in U.S. dollars but sell domestically in won, meaning that continued depreciation of the won against the dollar further amplifies losses. Raising utility prices to compensate is seen as a viable option. The affected companies include Korea Electric Power Corp. (KEPCO) and Korea Gas Corp. (KOGAS), whose annual foreign exchange losses are estimated at 200 billion won ($136.2 million) and 20 billion won, respectively, for every 10-won depreciation of the won against the U.S. dollar. The local currency has persistently remained in the 1,400-won level against the U.S. dollar, which is considered a worrisome threshold but is increasingly being seen as the “new normal.” According to the Bank of Korea, the average exchange rate for 2025 stood at 1,419.16 won per dollar as of Monday, slightly higher

Dec 2, 2025By Yi Whan-woo

Weak won fuels energy price hike concerns as state utility firms face FX losses

Others

Share buybacks used to strengthen management control instead of shareholder returns: report

Nearly two-thirds of treasury shares of listed firms bought back under the stated goal of strengthening shareholder returns were actually used to bolster management control and employee compensation, a report by a business data provider showed Tuesday. The findings coincide with expectations that the third amendment to Korea’s Commercial Code would pass before the year’s end. The revision seeks to require companies to cancel newly acquired treasury shares within one year of acquisition. It also requires an approval from at least two-thirds of shareholders, in case a company seeks to change the reason for selling off those shares or use them for a different purpose than the original plan. According to Leaders Index, about 20 percent of listed companies bought back their treasury shares every year over the past five years. Of the total of 2,067 disclosed plans, over 93 percent, or 1,936, cited “enhancing shareholder value” as the goal. Only 3 percent cited employee incentives as the reason, followed by one plan where both shareholder value enhancement and employee compensation were

Dec 2, 2025By Lee Kyung-min

Share buybacks used to strengthen management control instead of shareholder returns: report

Economy

Is Korea's excess liquidity main culprit behind weakening won?

Korea's money supply is expanding at its fastest pace in years, intensifying a debate over whether excess liquidity is the real culprit behind the won's prolonged weakness, industry officials said Tuesday. According to data from the Bank of Korea (BOK), M2 — a broad gauge of funds circulating in the economy — rose 8.5 percent in September from a year earlier, pushing the total to a record 4,430 trillion won ($3.02 trillion). The gain, sustained for six straight months, is nearly double the U.S. rate of 4.5 percent. While the government has attributed the won's slide partly to a spike in overseas investments by individuals, critics argue that expansionary fiscal policy and abundant liquidity are the primary drivers. "The exchange rate is where it is because Korea expanded M2 far too aggressively, because the economy isn't growing, and because dollars are being reinvested in the U.S. instead of in Korea," wrote a finance content creator on Threads, gaining traction among younger investors. "Gov. Rhee's latest remarks are truly shocking." The post cited BOK Gov. Rhee Chang-yong's Nov. 2

Dec 2, 2025By Lee Yeon-woo

Is Korea's excess liquidity main culprit behind weakening won?

Economy

Labeling rule introduced for fried chicken franchises amid 'shrinkflation' concerns

The government unveiled Tuesday measures to prevent "shrinkflation" practices of fried chicken franchises and other processed food manufacturers, officials said. The measures, jointly announced by the Fair Trade Commission and the ministries of food safety, agriculture, finance and SMEs, came after a major fried chicken brand Kyochon 1991 recently came under criticism for shrinkflation after it reduced the portion size of its boneless fried chicken menu by 30 percent. Shrinkflation refers to a business strategy of companies reducing the size or quantity of a product, while keeping the price unchanged. Under the new measures, 10 major fried chicken brands will be required to indicate the weight of pre-cooked chicken on their menus, along with the price, starting on Dec. 15, according to the officials. The brands include bhc chicken, Genesis BBQ, Kyochon, Cheogajip and Goobne. They have around a combined 12,560 franchise stores across the country. Currently, the food service sector, including chicken brands, does not have a mandatory weight-labeling system. Penalties for other processed food

Dec 2, 2025By Yonhap

Labeling rule introduced for fried chicken franchises amid 'shrinkflation' concerns

Economy

BOK to step up monitoring of prices amid growing inflationary pressure

The central bank said Tuesday it will closely monitor consumer inflation given recent rising living costs, though it projects inflation to gradually trend down near 2 percent. Bank of Korea (BOK) Deputy Gov. Kim Woong made the pledge during a meeting to review inflation trends, after government data showed consumer prices rose 2.4 percent on-year in November, remaining in the mid-2 percent range for the second consecutive month. "November's price increase was driven by higher petroleum product prices due to the weak currency and a sharp rise in prices of agricultural, livestock and fishery products. But core inflation eased amid falling service prices, and overall consumer price inflation is expected to gradually decline to near 2 percent," Kim said. "But the impact of the won-dollar exchange rate on future inflation needs to be monitored closely. We will maintain heightened vigilance in tracking inflation trends, as living costs have risen," he added. The Korean won has remained well below the psychologically crucial 1,450-won level per dollar in recent weeks due mainly to increased U.S

Dec 2, 2025By Yonhap

BOK to step up monitoring of prices amid growing inflationary pressure

Economy

Finance minister vows all-out efforts to curb food-related inflation

Finance Minister Koo Yun-cheol on Tuesday pledged the government's all-out efforts to rein in food-related inflation amid persistently high prices affecting people's daily lives. Consumer prices, a key gauge of inflation, increased 2.4 percent from a year earlier last month, surpassing the Bank of Korea's 2 percent target for three consecutive months largely due to a rise in the prices of agricultural and petroleum products. "With utmost vigilance, the government will make every effort to control food prices as price stabilization is both the beginning and the end of ensuring people's livelihoods," Koo said while presiding over a ministerial meeting on the economy. Koo vowed to mobilize all available tools, including tariff-rate quotas, to stabilize the prices of key items, while taking strict action against unfair practices that disrupt market order. As part of such efforts, the government will expand tariff-rate quotas on major food and feed ingredients, the minister said. The system allows a specified volume of imports to enter the country under reduced tariff rates for a specific per

Dec 2, 2025By Yonhap

Finance minister vows all-out efforts to curb food-related inflation

Economy

Consumer prices rise 2.4% in November, surpassing 2% target for 3 consecutive months

Korea's consumer prices grew over the Bank of Korea's 2 percent target for the third consecutive month in November, largely due to sharp increases in agricultural and petroleum product prices, government data showed Tuesday. Consumer prices, a key gauge of inflation, increased 2.4 percent from a year earlier last month, according to the data from the Ministry of Data and Statistics. In 2025, inflation had remained above 2 percent for four consecutive months through April before slowing to 1.9 percent in May. It later rose above 2 percent in both June and July before briefly slowing to 1.7 percent in August and again rising over 2 percent in September and October. The ministry attributed last month's increase primarily to a sharp rise in prices of agricultural, livestock and fishery products, which jumped 5.6 percent on-year, adding 0.42 percentage point to overall inflation. Petroleum product prices rose 5.9 percent, further adding upward pressure on inflation. The ministry noted that although global oil prices declined, the reduced scale of fuel tax cuts combined with a strong U.S. dollar

Dec 2, 2025By Yonhap

Foreign investors return to KOSPI buying, powering rally above 8,000

Rate hike seen as strongest tool to support won as FX measures lose impact

Fraudulent ChatGPT Pro charges spark alarm over unauthorized use of stolen card data

5 nations sign AI alliance pact to shape global tech rules

Korean won gains on renewed hope of U.S.-Iran peace deal, foreign net buying

Economy

Foreign investors return to KOSPI buying, powering rally above 8,000

Rate hike seen as strongest tool to support won as FX measures lose impact

Fraudulent ChatGPT Pro charges spark alarm over unauthorized use of stolen card data

5 nations sign AI alliance pact to shape global tech rules

Korean won gains on renewed hope of U.S.-Iran peace deal, foreign net buying

Read more

Korea posts 1.3% Q3 GDP growth, faster than initial estimate: BOK

OECD maintains S. Korea's 2025 growth outlook at 1%, projects improvement in 2026

IMF economist says Korea's economy to rebound in 2026 amid modest slowdown in Asia

Weak won fuels energy price hike concerns as state utility firms face FX losses

Share buybacks used to strengthen management control instead of shareholder returns: report

Is Korea's excess liquidity main culprit behind weakening won?

Labeling rule introduced for fried chicken franchises amid 'shrinkflation' concerns

BOK to step up monitoring of prices amid growing inflationary pressure

Finance minister vows all-out efforts to curb food-related inflation

Consumer prices rise 2.4% in November, surpassing 2% target for 3 consecutive months

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