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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

Fear of mass corporate outflow, job loss escalating in Korea

Job seekers gather at a Seoul employment welfare center before the beginning of a briefing on unemployment allowances in this July 15, 2020 file photo. YonhapBy Lee Min-hyungMajor Korean conglomerates' big investment plans for the United States are prompting concerns over the job market here, which critics argue may end up raising the youth unemployment rate unless the government applies appropriate and required measures against possible mass “corporate outflow.”The country's top-four conglomerates ― Samsung, SK, Hyundai and LG ― are planning to invest up to 44 trillion won ($39.79 billion) in producing semiconductors, batteries and electric vehicles in the world's largest economy. The announcement was made on the sidelines of President Moon Jae-in's first face-to-face summit with U.S. President Joe Biden at the White House last week. But the planned investment initiatives in the United States does no good in terms of stabilizing the sluggish job market in Korea where more young people are finding it difficult to obtain quality jobs in the fallout from the COVID-19 pandem

Jun 1, 2021By Lee Min-hyung
Fear of mass corporate outflow, job loss escalating in Korea
Economy

Citibank Korea to focus on corporate banking

Citibank Korea headquarters in Seoul. Courtesy of Citibank KoreaBy Lee Kyung-min Citigroup, Citibank Korea's headquarters, announced April 15 that it will cease consumer banking operations in 13 markets, including Korea.It added that the move is intended for the U.S.-based bank to boost its global competitiveness and streamline its business structure in the long term.The group said it will review and implement optimal plans for customers and employees in Korea, while using the opportunity to reorganize and strengthen its Korean businesses to focus on corporate banking.Citibank Korea opened on Sept. 8, 1967, when Korea's rapid industrialization was picking up speed. The bank's first corporate banking branch was located in downtown Seoul.Built on the successful operation of the corporate banking business, Citibank Korea became the first foreign bank to offer consumer banking services in 1986.It also launched private banking services in 1989 for the first time in Korea, while offering 24/7 ATM access in 1990 and a 24-hour phone banking service in 1993 for the first time in Korea. All th

Jun 1, 2021
Citibank Korea to focus on corporate banking
Economy

Exports recovery extended to 7th month in May on rebounding global economy

gettyimagesbankSouth Korea's exports jumped 45.6 percent on-year in May to extend their gains to a seventh consecutive month due to strong demand for chips amid the global economic recovery, underscoring a rebound from the pandemic-caused slump, data showed Tuesday.Outbound shipments came to $50.7 billion last month, compared with $34.8 billion a year earlier, according to the data compiled by the Ministry of Trade, Industry and Energy.Imports rose 37.9 percent to $47.8 billion, resulting in a trade surplus of $2.93 billion. It marked the 13th consecutive month for the country to post a trade surplus.The May exports growth was slightly below the market estimate. According to a poll by Yonhap Infomax, the financial arm of Yonhap News Agency, the country's May exports were expected to have risen 47.5 percent on-year.By segment, exports of chips advanced a whopping 24.5 percent to $10 billion, extending gains to the 11th consecutive month. They rose above the $10 billion threshold for the first time since 2018.The ministry attributed the growth to demand for fifth-generation network sma

Jun 1, 2021
Exports recovery extended to 7th month in May on rebounding global economy
Economy

OECD ups 2021 growth outlook for Korean economy to 3.8%

Korea Times fileThe Organization for Economic Cooperation and Development (OECD) on Monday raised its 2021 growth outlook for the South Korean economy, citing the country's strong exports and fiscal support.The OECD forecast Asia's fourth-largest economy to grow 3.8 percent this year, faster than its March estimate of 3.3 percent. Still, the Paris-based organization revised down its 2022 growth forecast for South Korea to 2.8 percent from 3.1 percent."Strong export growth, rising investment and expansionary macroeconomic policy are boosting the (South Korean) economy," the OECD said in a report on the global economic outlook.The OECD joined other organizations that have jacked up their growth estimates for the South Korean economy amid a global economic recovery.The Bank of Korea (BOK) last week revised up its 2021 growth outlook for South Korea to 4 percent from its earlier estimate of 3 percent.The International Monetary Fund (IMF) expected the South Korean economy to grow 3.6 percent this year, and global credit appraiser Standard & Poor's Global Ratings (SP) also forecast a 3

May 31, 2021
OECD ups 2021 growth outlook for Korean economy to 3.8%
Economy

Samsung Heavy Industries stocks shunned by investors

Samsung Heavy Industries' shipyard on Geoje Island in Gyeongsang Province / Courtesy of Samsung Heavy IndustriesBy Anna J. ParkWhile Samsung Heavy Industries is planning to vote on its capital reduction plan as well as issuing new shares at its June 22 shareholders' meeting, the market hasn't yet responded positively to the news, as the firm's shares have continued to hover at around 6,000 won ($5.40) during the past few weeks. Samsung Heavy announced earlier this month that it was seeking to improve its financial status through both capital reduction without refund and the new capital increase of about 1 trillion won through issuing new shares, yet the market has been giving the cold shoulder to the plan. It's extremely rare for a major firm, like a Samsung subsidiary, to announce a plan for capital reduction without refund, publicly proving the company's dire financial situation. Also, the market participants view that unless there's a significant change in the firm's actual business models, the plans for both the capital reduction as well as the issuance of new shares will end up

May 31, 2021By Anna J. Park
Samsung Heavy Industries stocks shunned by investors
Economy

Budget surplus to finance 2nd extra budget this year

Democratic Party of Korea Floor Leader Yun Ho-jung, center, speaks at a meeting attended by the party, the government and Cheong Wa Dae officials at the National Assembly on Yeouido, May 28. YonhapBy Lee Kyung-min The government will be able to draw up a second extra budget this year, driven by a projected annual “surplus” of about 17 trillion won ($15.2 billion) in tax revenue.The greater-than-expected income is likely to come mostly from capital gains tax paid by real estate traders, the value of which has nearly doubled over the past few years.This will advance the discussion on how best to allocate state resources amid the COVID-19 pandemic, being narrowed down to whether across-the-board cash payouts would work better over targeted financial assistance to the hardest-hit, low-income earners.According to the Ministry of Economy and Finance, the country's tax revenue will increase by 15 trillion won from 285.5 trillion won in 2020. This will be 17 trillion won greater than this year's budget of 282.7 trillion won, pushing up the total to over 300 trillion won.The tax

May 31, 2021By Lee Kyung-min
Budget surplus to finance 2nd extra budget this year
Economy

Samsung Securities hit by envisioned US listing of Kurly, Yanolja

A Samsung Securities branch in Seoul is seen in this April 2018 file photo. YonhapBy Park Jae-hyukSamsung Securities has been viewed by market insiders as one of the parties most likely to lose out if Kurly and Yanolja go through with their initial public offerings (IPOs) in the United States instead of Korea as is widely expected.Earlier this year, the securities firm lost its status as the lead underwriter for Kurly's listing on the tech-heavy Kosdaq market, after the operator of the fresh food delivery platform Market Kurly hired Goldman Sachs, Morgan Stanley and JPMorgan in March as the lead underwriters for its listing on the New York Stock Exchange within this year.Given that no Korean securities firms are licensed to serve as underwriters in the U.S., Kurly's replacement of the underwriters was inevitable for its Wall Street debut.The contract cancellation led Samsung Securities to miss out on opportunities to earn billions of won in commission and build its reputation as a firm handling a unicorn startup's listing, despite the money and personnel it used for consulting and du

May 31, 2021By Park Jae-hyuk
Samsung Securities hit by envisioned US listing of Kurly, Yanolja
Economy

Industrial output falls by most in 11 months in April

gettyimagesbankSouth Korea's industrial output declined the most in 11 months in April as production in the chipmaking industry slumped due largely to a higher base effect, data showed Monday.But the country's service output and retail sales extended their gains last month as warm weather and eased social distancing rules spurred consumer spending.The industrial output decreased 1.1 percent in April from the previous month, a turnaround from a 0.9 percent on-month increase in March, according to the data compiled by Statistics Korea.Industrial output declined last month following the second straight month of gains. The reading also marked the largest on-month decline since May last year, when industrial production dropped 1.5 percent.From a year earlier, it rose 8.8 percent.The decline in industry output came as production in the manufacturing sector dipped, led by a fall in production in the chipmaking industry.Production in the semiconductor industry fell 10.9 percent on-month in April, the sharpest decline since April last year.But service output rose for the third straight month

May 31, 2021
Industrial output falls by most in 11 months in April
Economy

Ruling party desperate to play to voter base

Apartment complexes in Seoul. Korea Times file By Lee Kyung-min The ruling party plans to tax only the top 2 percent of owners of one home, in a major change to a previous policy concerning Comprehensive Real Estate Tax, imposed on housing with an officially appraised value of over 900 million won ($816,000).The much-rushed, politically motivated move ahead of the presidential election next year seeks to play to the ruling party's voter base, enraged by the rapidly diminishing prospects of owning a home ― let alone maintaining stable living arrangements as tenants.The tax code governing expensive housing was set in 2009 and has never been revised, but the course correction is inevitable since the number of homes that are over 900 million won in value has increased six-fold in recent years.The spike in Seoul's apartment prices resulted from two dozen botched real estate policies defined by heavier tax and tightened lending rules, the combination of which led to a growing number of landlords raising rent on their tenants or evicting them.Data from the People's Solidarity for Participat

May 31, 2021By Lee Kyung-min
Ruling party desperate to play to voter base
Economy

Hyundai Card, Hyundai Capital set trends in employee well-being during pandemic

Employees of Hyundai Card and Hyundai Capital attend a virtual meeting. Courtesy of Hyundai Card and Hyundai CapitalBy Lee Kyung-min Hyundai Card and Hyundai Capital have become model corporations because they were quick to adapt to changes brought on by COVID-19.They moved quickly to take care of their employees' well-being during the pandemic by allowing them to work from home from the very beginning of the pandemic.Also, the company introduced a paid time-off (PTO) program for vaccinations in March this year even before the announcement was made by the government.They are creating a working environment that adapts quickly to the current pandemic situation by replacing in-person meetings with video or audio conference calls.The companies implemented the changes not only to their corporate culture, but also to all areas covering the working environment and employee welfare, such as recruiting, onsite clinics and external events.Before the government announced "vaccination leaves" on April 1, the two companies had already introduced a PTO program for inoculations on March 18.All emp

May 30, 2021
Hyundai Card, Hyundai Capital set trends in employee well-being during pandemic
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