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More than 40% of self-employed favor minimum wage freeze
Nearly 60 percent of Korea’s self-employed individuals said their business conditions have worsened this year compared with last year, while more than 40 percent said next year’s minimum wage should be frozen, according to a survey released Tuesday by the Federation of Korean Industries (FKI). The survey of 500 self-employed people nationwide was published as the Minimum Wage Commission began negotiations over next year's minimum wage at its eighth plenary meeting at Government Complex Sejong. The commission consists of 27 members — nine representatives each from labor, management and the public interest sector. Among respondents, 57 percent said their business situation had deteriorated from a year earlier, while just 8.4 percent reported an improvement. The share of respondents reporting deteriorating business conditions was highest in the wholesale and retail sector at 66.3 percent, followed by accommodation and food services at 65.8 percent. The proportion was also comparatively high in arts, sports and leisure services at 58.2 percent, and transportation and warehousing at 53.
2 MIN READBy Jun Ji-hye

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KOSPI hitting all-time high

A monitor at the dealing room of the headquarters of Hana Bank shows the benchmark KOSPI's closing level Wednesday. The KOSPI ended at 3,278.68 points, a 0.62 percent increase from the previous session, replacing its all-time high record for three consecutive days this week. The banking, transportation and healthcare sectors lead Wednesday's rally amid expectations of an economic recovery. The tech-heavy Kosdaq closed at 998.49 points, up 0.11 percent from the previous session. / Yonhap

Jun 16, 2021By Anna J. Park

KOSPI hitting all-time high

Bank of Korea tilting toward monetary tightening

Bank of Korea Governor Lee Ju-yeol hits a gavel during the latest monetary policy board meeting at its headquarters in Seoul, May 27. YonhapMinutes show some board members recommend key rate hikesBy Lee Min-hyungThe Bank of Korea (BOK) is repeatedly signaling an end to its year-long freeze in the key interest rate, as a post-pandemic economic recovery ― propelled by an export rebound ― becomes more visible.According to minutes from the latest BOK monetary policy board meeting, some members expressed the opinion that the central bank needs to send a cue for hiking the benchmark rate to keep inflation and rising household debt under control.“Given the future course of the economy and price levels, it is time for the BOK to consider adjusting its easing stance in monetary policy,” one board member said during the May 27 rate-setting meeting.After the BOK cut the key rate to a record low of 0.5 percent in May 2020, the central bank maintained a dovish stance by freezing it.And it was not until recently that the bank hinted at the possibility of increasing the rate, with BOK G

Jun 15, 2021By Lee Min-hyung

Bank of Korea tilting toward monetary tightening

ANALYSIS Investors find opportunity in 'metaverse' technology

Avatars created on Zepeto, a metaverse affiliate of Naver Z. Korea Times fileBy Lee Kyung-min Market participants are paying keen attention as to whether the “metaverse” will become a future growth investment, boosted by the soaring popularity of online platforms where they can play games using virtual reality (VR) and augmented reality (AR).A combination of “meta” and “universe,” the term refers to a collective, virtual, shared space, where space restrictions have disappeared due to a mixture of virtual and reality.KB Asset Management rolled out an exchange-traded fund (ETF) that will invest in up to 50 metaverse companies in Korea, China, Japan and the U.S. This is the first time a local asset management firm has introduced a product related to consumer activities in a virtual shared space.The product, KB Global Metaverse Economic Fund, will invest in the manufacturing of VR and AR devices, including Facebook, Apple and Microsoft, as well as software makers NVIDIA and Unity Software.Platform operators and content creators, including Roblox, Naver

Jun 15, 2021By Lee Kyung-min

[ANALYSIS] Investors find opportunity in 'metaverse' technology

Outback Steakhouse on track to find new owner

A steak meal of Outback Steakhouse Korea / Korea Times fileBy Anna J. ParkOwners of Outback Steakhouse Korea, the Korean unit of the U.S. restaurant chain, which again is up for sale, are reviewing final bids that have to be submitted by the end of the month.Credit Suisse, the lead manager in the sale, is set to receive binding offers from potential buyers, according to the domestic investment banking industry. The bank was chosen as lead manager early last year by local private equity firm (PEF) Skylake Equity Partners, which bought of the the Australia-themed restaurant in 2016 for 57 billion won ($51 million). While several local PEFs and strategic investors showed interest in acquiring the eatery during last year's attempted sale, none ended up signing a deal due to a failure to reach an agreement over the price. Skylake aims to sell it once again after another round of preliminary bidding was held successfully in April, with several firms participating. Most potential buyers for this year's bidding were also local PEFs or strategic investors that already operate their own restau

Jun 15, 2021By Anna J. Park

Outback Steakhouse on track to find new owner

Shinhan Life to focus on Vietnam, healthcare business after integration

Shinhan Life CEO Sung Dae-kyu speaks during a press conference in Seoul, Tuesday. Courtesy of Shinhan LifeBy Lee Min-hyungShinhan Life will expand its foothold in Vietnam and continue to scale up investment in emerging growth areas ― such as healthcare ― as part of efforts to reduce its reliance on conventional insurance sales in the rapidly saturating domestic market, the company's CEO Sung Dae-kyu said Tuesday.“We will focus on increasing our market share in the lucrative Vietnamese market for quantity-wise growth,” Sung told reporters during a press conference. “Shinhan Life will also keep expanding our healthcare-related businesses for qualitative growth.”The vision was unveiled about two weeks before the official launch of the integrated insurer, formerly Shinhan Life Insurance and Orange Life Insurance. After concluding all legal procedures, the new insurer will start doing business as of July 1, becoming Korea's fourth-largest life insurer with total assets worth 71.5 trillion won ($63.96 billion). The calculation is based on data as of the end of 2020.

Jun 15, 2021By Lee Min-hyung

Shinhan Life to focus on Vietnam, healthcare business after integration

Where have all the 50,000 won bills gone?

Stacks of 50,000 won bills / YonhapBy Yoon Ja-youngFifty-thousand won bills, Korea's largest cash denomination, are disappearing. Many are believed to be held by individuals amid uncertainties over the economy.According to the Bank of Korea, 6.32 trillion won worth of 50,000 won ($45) notes were issued in the first quarter of this year. However, the 50,000 won bills that have been collected by the bank during the same period stood at a mere 1.29 trillion won, approximately 20 percent of the total supply. The first quarter figure fell further from the figure for the whole of last year, when only 6.99 trillion won out of 25.22 trillion came back, recording a 24-percent return rate. The central bank has been increasing issuance of the bills on growing demand, but it still seems to fall short. Those who try to withdraw 50,000 won notes from ATMs often end up receiving 10,000 won notes instead.The central bank estimates that the COVID-19 pandemic has pulled down the return rate.“Unlike during previous financial crises, the pandemic has decreased face-to-face transactions, such as in

Jun 15, 2021By Yoon Ja-young

Where have all the 50,000 won bills gone?

Kakao's merger with Kakao Commerce stokes stock price

By Anna J. ParkAs Kakao is set to merge with its e-commerce subsidiary, Kakao Commerce, the big tech firm's stock price hit a record high on Monday.Kakao's share price finished at 142,500 won ($127.60), 5.17 percent up from the previous session, as investors showed their optimism over the merger plan. During intra-day trading, its stock price hit the all-time high of 143,000 won, beating the previous record high of 136,500 won. Foreign investors have been net-buying Kakao stocks for the past five consecutive trading sessions, while on Monday, it was retail investors who net-purchased the stocks, reflecting expectations for their performance. Kakao's stock price has skyrocketed by more than 80 percent since the start of this year. Since the stock underwent a 5-for-1 split in mid-April, the price has risen by 27 percent. The company said that the merger between Kakao and its subsidiary, Kakao Commerce, has yet to be finalized, as the decision is subject to approval during its board meeting, scheduled for later

Jun 14, 2021By Anna J. Park

Kakao's merger with Kakao Commerce stokes stock price

Banks poised to raise lending rates

gettyimagesbankBy Lee Kyung-min Commercial lenders are likely to raise lending rates amid the government's efforts to curb soaring household debt. Korea has seen the fastest rise in household debt among member countries of the Organization for Economic Cooperation and Development (OECD).The government seeks to rein in the steep increase in borrowing over the past year amid the economic crisis triggered by the COVID-19 pandemic, as the economy shows clear signs of a rebound with the prospect of herd immunity being achieved sooner than expected.The pre-emptive move by lenders comes shortly before the implementation of the debt-service ratio (DSR) being capped at 40 percent as part of tightened lending rules to be overseen by the Financial Services Commission (FSC) starting July.DSR is measured by a borrower's annual income divided by the principal and interest on all household loans including mortgage, credit loans, card loans and stock loans. It is more stringent than the debt-to-income (DTI) ratio which factors in only interest payments on loans, with mortgage principal being the onl

Jun 14, 2021By Lee Kyung-min

Banks poised to raise lending rates

SsangYong Motor pressured to find 'viable' revival plans

Korea Development Bank Chairman Lee Dong-gull speaks during an online press conference at its headquarters in Seoul, Monday. Courtesy of Korea Development BankBy Lee Min-hyungSsangYong Motor should submit a “viable” revival plan to a possible investor before expecting any more financial support from the Korea Development Bank (KDB), the main creditor of the cash-strapped automaker, KDB Chairman Lee Dong-gull said Monday.“SsangYong's management and union are urged to keep in mind that their latest agreement is still not enough to attract investment from a potential buyer's viewpoint, even if it is a step in the right direction,” Lee said during an online press conference.The message came a few days after the automaker's union and management reached a belated consensus over a restructuring plan. Under the agreement, SsangYong employees will take unpaid leave for two years from July, as part of the automaker's measures to cut fixed costs for its revival. Executives at the company also agreed to accept an annual pay cut of 20 percent.But Lee did not rate the plan

Jun 14, 2021By Lee Min-hyung

SsangYong Motor pressured to find 'viable' revival plans

Finance ministry criticized for inaccurate tax revenue projections

Deputy Prime Minister and Finance Minister Hong Nam-ki attends a meeting at the Seoul Government Complex, June 4. Korea Times file By Lee Kyung-min The government is coming under criticism over about 30 trillion won ($26.8 billion) in expected excess revenue this year, a result of inaccurate tax revenue projections which some economists say limited fiscal discretion and effective debt management.The 30 trillion won accounts for about 10 percent of 282.7 trillion won in tax revenue the government expected last year to collect this year.The error ratio, the difference between total expected revenue and the amount collected divided by the total expected revenue, has risen to 10.6 percent, the first time ever for the figure to record a double digits.The government maintains that the figure exceeding 10 percent reflects the harsh economic and financial conditions last year when the projections were made in the midst of the COVID-19 pandemic.Yet such a large difference un

Jun 14, 2021By Lee Kyung-min

Finance ministry criticized for inaccurate tax revenue projections

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