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    Labor unions seek 16.3% minimum wage hike, employers push for freeze

    Labor and management began a fierce tug-of-war over next year's minimum wage Tuesday, with labor representatives seeking an increase of more than 16 percent and management representatives pushing for a freeze. The stark differences between the two sides are expected to complicate discussions in the coming months. The Minimum Wage Commission held its eighth plenary meeting at Government Complex Sejong, kicking off deliberations on next year's minimum wage, with labor and management representatives presenting their respective proposals. The commission consists of 27 members — nine representatives each from labor, management and the public interest sector. Ahead of formal negotiations, labor representatives submitted an opening proposal calling for the hourly minimum wage to be raised to 12,000 won ($7.8), up 16.3 percent from the current 10,320 won. “The minimum wage plays a critical role in protecting low-income workers and reflects the level of social equity in the country,” the Federation of Korean Trade Unions and the Korean Confederation of Trade Unions, the nation’s two larges

    2 MIN READBy Jun Ji-hye
    Labor unions seek 16.3% minimum wage hike, employers push for freeze
  • Economy

    Korean won slumps against US dollar on expectations of Fed rate hike

    1 MIN READBy Yonhap
    Korean won slumps against US dollar on expectations of Fed rate hike
  • Others

    Foreign sell-off in Samsung Electronics, SK hynix drags KOSPI down 10%

    2 MIN READBy Jun Ji-hye
    Foreign sell-off in Samsung Electronics, SK hynix drags KOSPI down 10%
  • Economy

    Mirae Asset likely to face fines, disciplinary action over SpaceX allocation fallout: experts

    3 MIN READBy Park Han-sol
    Mirae Asset likely to face fines, disciplinary action over SpaceX allocation fallout: experts
  • Economy

    Bourse operator issues circuit breaker for KOSPI on sharp fall

    1 MIN READBy Yonhap
    Bourse operator issues circuit breaker for KOSPI on sharp fall
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CEO & Publisher: Oh Young-jinDigital News Email: webmaster@koreatimes.co.krTel: 02-724-2114Online newspaper registration No: 서울,아52844Date of registration: 2020.02.05Masthead: The Korea TimesCopyright © koreatimes.co.kr. All rights reserved.

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Economy

Regulator summons crypto exchange operators to meeting

The office of the Korea Financial Intelligence Unit, located in central Seoul / Yonhap By Anna J. ParkAfter the government announced measures last week to strengthen the supervision and monitoring of the cryptocurrency sector, the Financial Services Commission (FSC) summoned the country's 20 digital coin exchange operators to a meeting Thursday, raising interest in its plans regarding them.The Financial Services Commission (FSC) said the Korea Financial Intelligence Unit (KoFIU) called the meeting to provide information and consulting on business reporting requirement procedures. This is the first official move by the FSC on regulating local cryptocurrency operators, and the meeting only involved the 20 exchanges that had already obtained Information Security Management System (ISMS) certification from the government. The Financial Security Institute and the Korea Internet & Security Agency provide ISMS certification to companies that have met over a hundred rigorou

Jun 3, 2021By Anna J. Park
Regulator summons crypto exchange operators to meeting
Economy

Salaried workers frustrated due to inflation

gettyimagesbankBy Lee Kyung-min Salaried workers are increasingly feeling the pinch of “inflation,” as clearly indicated by a surge in prices of goods and services as well as interest rates. The economic term is not only for use among academics, economists and central bankers, since many people are increasingly finding the price of everything to be on the rise ― except for their monthly paycheck. This common frustration is expected to intensify, because the cost of living will spike further amid the collective move by fiscal and monetary authorities in drawing down the expansionary policies put in place to weather the COVID-19 pandemic. This will translate into higher tax and heavier borrowing costs. Deputy Prime Minister and Finance Minister Hong Nam-ki maintains that inflation concerns will gradually dissipate in the latter half of the year, as soon as the temporary shock from last year's base effect recedes.But once the prices of goods and services start rising, the result is an overall depreciation of the currency, limiting the spending power of consume

Jun 3, 2021By Lee Kyung-min
Salaried workers frustrated due to inflation
Economy

ANALYSIS Talk of another round of disaster relief payouts sparks concerns

Finance Minister Hong Nam-ki speaks after the National Assembly passes a supplementary budget bill for a coronavirus relief fund in Seoul, March 25. Yonhap pBy Lee Min-hyungA debate is heating up among politicians on whether to provide another round of disaster relief payouts to all households in the country, amid lingering concerns that the move will end up worsening the soaring national debt burden.The government and the ruling party have brought up the idea of offering a fifth round of COVID-19 relief payouts, citing the need to revitalize the sagging real economy.But some economists view the move as “unnecessary” amid clear signs of an economic recovery for the rest of 2021. The central bank recently revised up Korea's 2021 GDP growth forecast to 4 percent on strong signs of an exports rebound and smooth progress in vaccinations. The prediction, if realized, is a noteworthy rebound given that the economy contracted 1 percent in 2020 in the aftermath of the pandemic-induced social distancing and global economic doldrums.Even if the economy may be on track for a solid r

Jun 3, 2021By Lee Min-hyung
[ANALYSIS] Talk of another round of disaster relief payouts sparks concerns
Economy

President's economic policy architect sworn in as new KDI chief

The newly appointed Korea Development Institute (KDI) President Hong Jang-pyo delivers a speech during a ceremony at the KDI in Sejong, Tuesday. YonhapBy Yi Whan-wooHong Jang-pyo, architect of the Moon Jae-in administration's income-led growth policy, was sworn into office as president of the Korea Development Institute (KDI) earlier this week, according to the institute, Thursday.He succeeds Choi Jeong-pyo for a three-year term.Hong emphasized the distribution of wealth during a ceremony for his appointment at the state-run institute in Sejong, stressing “the importance of inclusive growth characterized by cycles of growth and distribution in the post-COVID-19 era.”The KDI is a think tank responsible for presenting the government's long-term macroeconomic direction. He promised to enhance the role of the KDI, which operates under the Ministry of Economy and Finance, as “the hub of government policies.”To do so, he suggested bolstering joint research with other state-run think tanks on economic and social challenges that must be addressed to improve quality of

Jun 3, 2021By Yi Whan-woo
President's economic policy architect sworn in as new KDI chief
Economy

Korean economy back on track due to robust exports, consumption

Inflation jitters, polarization feared to stymie recovery By Lee Kyung-min The Korean economy is showing strong signs of getting back on track following robust growth in exports and consumption, in line with a rebound in global trade amid massive vaccination rollouts abroad. Experts say that the much-awaited signs of recovery are a valid cause for optimism. Yet they note celebrating seems premature given the varying impact across households and businesses, a reason why government support should be targeted to best help the most affected.Korea's exports reported a 32-year high of 45.6 percent in terms of year-on-year growth in May, lifted by semiconductors, automobiles and petrochemical products. The figure was the highest May figure to date. The country's retail sales in April reported a 2.3-percent month-on-month increase, an extension of the same robust monthly growth of March.The Organization for Economic Cooperation and Development (OECD) in its latest economic outlook report upgraded its 2021 growth forecast for Korea to 3.8 percent, up from the 3.3 percent projected in Mar

Jun 2, 2021By Lee Kyung-min
Korean economy back on track due to robust exports, consumption
Economy

Conglomerate arms push for IPOs in 2nd half

Lotte is the latest chaebol seeking a market debut of its key affiliate in the second half of the year as part of possible efforts to accelerate corporate restructuring. Korea Times fileBy Yi Whan-wooLotte, Hyundai Motor, Hanwha and Hyundai Heavy Industries Group are aiming for market debuts of their key affiliates in the second half of the year, in what are seen as bids to speed up corporate restructuring.Although none of the four family-owned conglomerates admitted it, industry sources reckon an initial public offering (IPO) of their respective affiliates ― Lotte Rental, Hyundai Engineering, Hanwha General Chemical and Hyundai Heavy Industries Co. ― will help the chairpeople or heirs apparent to raise cash by selling off stakes after the IPOs and solidify their management control.The planned listings, which have not been observed among chaebol for years, are anticipated to enliven the IPO market as each of the four affiliates is valued at trillions of won.According to the investment banking industry, Lotte Rental was the latest to kick off its IPO process.It filed for a preliminary

Jun 2, 2021By Yi Whan-woo
Conglomerate arms push for IPOs in 2nd half
Economy

REIT prices enjoy bullish run amid rising inflation concerns

gettyimagesbankBy Anna J. ParkAmid growing signs of an economic recovery later this year hinging on expectations for the accelerating vaccination campaign and export upturn, real estate investment trusts (REITs) are enjoying a ride in their stock prices. Lotte REIT, one of the major listed REITs here, reached its 52-week high of 6,190 won ($5.57) during Wednesday's intra-day trading, and finished at 6,170 won. ESR Kendall Square REIT that mainly invests in prime logistics facilities also hit its all-time high of 6,940 won, Wednesday, since its listing back at the end of last year. Shinhan Alpha REIT also reached its 52-week high of 8,720 won during Wednesday's early trading hours, the highest level since November 2019 when it touched its all-time high level of 9,440 won. The REIT's Wednesday closing price was 8,670 won. Market experts view that the investment environment for REITs will continue to improve with visible signs of recovery in the global retail and real estate sectors. “The increase of offline activities will result in enhanced performances by REITs, as a recovery i

Jun 2, 2021By Anna J. Park
REIT prices enjoy bullish run amid rising inflation concerns
Economy

ANALYSIS Despite short-selling restart, markets stand strong

Dealers busily work at the dealing room of Hana Bank's headquarters located in central Seoul, Tuesday, as the benchmark KOSPI closed at 3,221.87 points. YonhapOut of 11 tril. won of short-selling transactions in May, Samsung Electronics tops the list By Anna J. ParkOne month has passed since short-selling of local stocks was partially resumed in early May, following a more-than-year-long temporary ban on the system amid the COVID-19 pandemic. The resumption that took place starting May 3 was not a complete measure ― only large cap companies stocks on the main KOSPI 200 and tech-heavy KOSDAQ 150 indices were subject to short-selling.Despite retail investors' resentment over the resumption, the market reaction generally wasn't that severe. In contrast to the markets' bearish moves on the first day of the resumption, during the past month they performed as usual ― the KOSPI even hit an all-time high of 3,255.90, May 10, just a week after the restart of short-selling.The local stock markets didn't seem to be much affected by short-selling, a system largely used by foreign or institutiona

Jun 2, 2021By Anna J. Park
[ANALYSIS] Despite short-selling restart, markets stand strong
Economy

Consumer price growth hits over 9-year high in May

gettyimagesbankSouth Korea's consumer prices grew at the fastest pace in more than nine years in May on higher prices of farm and oil products, data showed Wednesday, underscoring that inflationary pressure is building up amid an economic recovery from the pandemic-caused slump.The consumer price index rose 2.6 percent on-year in May, faster than a 2.3 percent on-year gain the previous month, according to the data compiled by Statistics Korea.It marked the fastest on-year increase since April 2012, when the price index rose 2.6 percent.Compared with a month earlier, the index grew 0.1 percent last month, slowing from a 0.2 percent on-month rise in April.Core inflation, which excludes volatile food and oil prices, rose 1.2 percent on-year in May."Prices of agricultural, livestock and fisheries goods extended their gains due to a tight supply and the impact of bird flu," Eo Woon-sun, a senior Statistics Korea official, told reporters. "Prices of petroleum goods also jumped (as oil prices rose) due to last year's low base."The country's inflationary pressure remained subdued last year a

Jun 2, 2021
Consumer price growth hits over 9-year high in May
Economy

Korea forcing Google, Netflix to pay 'digital tax'

Jobseekers listen to a career planning instructor at a small job fair at Google Campus in Seoul, Aug. 10, 2017. Korea Times fileBy Lee Kyung-min The Korean offices of Netflix and Google will have to pay higher corporate taxes, upon the agreement of over 130 participants in the OECD blueprints drawn up to tackle global tax challenges.Apart from the two firms, global IT giants including Amazon, Facebook and Apple will be subject to the so-called “Google tax,” whereby large digital companies will have to pay a certain amount of corporate tax, the rate of which is yet to be determined. “The government will have the grounds to tax them, if the agreement is reached. Nothing has been finalized yet,” a finance ministry official said, Tuesday. This is part of the global wave of efforts to tax the lucrative firms based on where their revenues are generated, not where their regional headquarters are located. Many global tech heavyweights have long managed to pay only a fraction of their profits as taxes here, largely by routing them to lower rate tax jurisdictions where

Jun 1, 2021By Lee Kyung-min
Korea forcing Google, Netflix to pay 'digital tax'
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