Opinion - The Korea Times

ED Ambition must be matched by reform

The newly unveiled "3-4-5" economic vision is as bold as it is ambitious. By setting three targets — a 3 percent potential growth rate, becoming the world's fourth-largest exporting nation and raising per capita gross national income to $50,000 — the government has signaled its determination to reverse years of economic stagnation and restore confidence in the country's long-term prospects. The optimism is not without foundation. A remarkable rebound in the semiconductor industry, fueled by surging global demand for artificial intelligence (AI) technologies, has transformed Korea's near-term economic outlook. The government has consequently revised its forecast for this year's real GDP growth from 2 percent to 3 percent, while projecting exports to reach an unprecedented $1 trillion and the current account surplus to more than double from last year. Nominal GDP growth is expected to record its strongest performance in three decades, reflecting the extraordinary strength of semiconductor exports. Such figures represent a welcome turnaround after years of sluggish growth. They also d

Jul 15, 2026

ED 'Future response fund' should be sustainable

The government will establish a "future response fund" using the additional tax revenue expected from the booming semiconductor industry. During a government fiscal strategy meeting, President Lee Jae Myung said that the excess tax revenue in 2027 will likely be "unprecedented," detailing the administration's earlier plans of using this to fund the nation's future growth. "Large-scale additional tax revenue will be used as strategic financial resources to prepare for the future," the president said, adding that it will be used to fund policies to support youth, regional development and education programs. Tax revenue for 2027 is forecast to surpass 500 trillion won ($330 billion), beyond the government's previous estimate of 412 trillion won. If that is the case, the fund will likely reach the 100 trillion won range. The fund should be carefully and sustainably distributed, without being wasted on "popular" programs or ad-hoc spending. The government's plan to pursue expenditure restructuring of about 50 trillion won so as to cut away at redundancies or ineffective spending should be s

Jul 14, 2026

[ED] 'Future response fund' should be sustainable

ED Trump threatens global maritime order

U.S. President Donald Trump's latest proposal regarding the Strait of Hormuz marks a breathtaking departure from the very principles the United States has long claimed to defend. By announcing the restoration of a naval blockade against Iran while declaring that the U.S. will impose a 20 percent toll on cargo transiting one of the world's most vital waterways, the U.S. president has crossed a line that should alarm adversaries and allies alike. For decades, Washington has argued that the Strait of Hormuz is an international waterway where freedom of navigation must be preserved against any attempt by Iran to exert unilateral control. Successive U.S. administrations have condemned Tehran whenever it threatened to interfere with commercial shipping or sought to leverage the strait for political or economic gain. Trump's proposal turns that position on its head. If the U.S. can charge ships for exercising the internationally recognized right of transit passage simply because its navy patrols the region, on what legal or moral grounds can it continue to criticize Iran — or any other coast

Jul 14, 2026

[ED] Trump threatens global maritime order

ED Defense minister must set record straight

Defense Minister Ahn Gyu-back is facing mounting pressure over allegations of perjury. Retired Lt. Cmdr. Kim Young-soo, head of the nonprofit group Center for Whistleblowers, has alleged that Ahn was arrested by military police for desertion while serving as a commuter soldier in the 1980s. According to Kim, Ahn was detained for one month and required to serve an additional seven months in the military. Commuter soldiers were part of an alternative military service system that existed from 1969 to 1996. Men deemed physically unfit for regular active-duty service — for example, because of poor eyesight — were assigned to serve while commuting between their homes and military units. At a news conference held at the National Assembly on July 6, Kim claimed that Ahn was drafted on Nov. 15, 1983, for 14 months of service as a commuter soldier and was originally scheduled for discharge on Jan. 4, 1985. Instead, Kim said, Ahn was not discharged until Aug. 31, 1985 — seven months later than expected. Kim argued that the extension resulted from Ahn's alleged desertion, requiring him to mak

Jul 13, 2026

[ED] Defense minister must set record straight

ED SK hynix's triumphant Nasdaq debut

SK hynix has achieved a milestone that extends far beyond the fortunes of a single company. By raising approximately $26.5 billion through its offering of American depositary receipts (ADRs) on Nasdaq, the semiconductor giant has completed the largest capital raising ever by a foreign company in the U.S. market. Even more remarkable was the pricing: The ADRs were offered at a premium to the closing price of the company's shares in Seoul, overturning the long-standing convention that large equity offerings require a discount to attract investors. The transaction is more than a financial success. It represents a powerful endorsement by global investors of SK hynix's leadership in the artificial intelligence (AI) era. Far from viewing the company as merely another memory chip manufacturer, the market has recognized it as a strategic technology leader whose future is closely tied to the explosive growth of AI. In securing a premium valuation from the world's deepest capital market, SK hynix has demonstrated that Korean tech companies can compete not only in manufacturing but also in earni

Jul 12, 2026

ED Move to strengthen investor protection for more sound market

Amid the uncertainty and volatility seen on Korea's bourses, exports and trade balances managed to rise on chip-led growth, fueled by momentum in artificial intelligence (AI) investments. This points to a mixed bag of healthy indexes stacked against what has been described as a "roller coaster" of volatility for both KOSPI and Kosdaq. It is vital to steady the bourses, which serve as a healthy venue for firms to raise capital and provide investors with a chance to grow their assets. Korea's current account surplus posted $38.61 billion in May, according to Bank of Korea and the same index in June is expected to be larger. Exports rose in June to record $102.2 billion, an increase of 70.9 percent over the same period of the previous year, according to Ministry of Trade, Industry and Resources. Samsung puts its second quarter sales tentatively at 171 trillion won ($113.6 billion), and announced an operating profit of 89.4 trillion won on Tuesday, surpassing Nvidia's highest operating profit of around 82 trillion won. Further, the International Monetary Fund has revised Korea's growth for t

Jul 10, 2026

[ED] Move to strengthen investor protection for more sound market

ED Gwangju murder case reveals danger of unchecked power

A police officer's alleged attempt to conceal and destroy evidence in the murder case involving a fellow officer's son has sparked public outrage. On Wednesday, police arrested an unnamed detective in the homicide division of Gwangsan Police Station in the southwestern city of Gwangju on charges of colluding with a senior inspector, identified only by his surname Jang, to destroy evidence related to allegations of Jang's son's involvement in the premeditated murder of a high school girl. The alleged collusion came to light while the murder investigation was still underway. The case has since been transferred to prosecutors for review. The incident has fueled a heated debate over a proposal to overhaul Korea's criminal justice system by stripping prosecutors of their authority to direct and oversee police investigations. Under the proposal, the police would assume full responsibility for criminal investigations, while prosecutors would be limited largely to deciding whether to indict cases referred to them. The ruling Democratic Party of Korea (DPK) has submitted an amendment to the Crimi

Jul 9, 2026

[ED] Gwangju murder case reveals danger of unchecked power

ED Expanded ties with NATO require strategic balance

President Lee Jae Myung's participation in the NATO Summit Defense Industry Forum in Ankara carries particular significance. Rather than limiting cooperation to conventional arms exports, Lee proposed the "Korea-NATO Defense Industry Partnership 2.0," calling for joint research, production and operation of advanced weapons systems. He highlighted Korea's proven ability to maintain uninterrupted defense supplies while protecting sensitive technologies, arguing that resilient supply chains have become as vital to deterrence as military hardware itself. Even more importantly, Seoul and NATO agreed to launch negotiations on a Basic Procurement Agreement. If concluded, the agreement would establish the institutional foundation for Korean firms to participate in NATO's common procurement market, estimated to be worth around 15 trillion won ($9.95 billion) annually. Korea's participation in multinational NATO projects has also expanded beyond ammunition cooperation to include defense materials and space-related initiatives, while discussions on standardizing military specifications promise t

Jul 8, 2026

[ED] Expanded ties with NATO require strategic balance

ED Korea's 24-hour FX trading

The launch of the 24-hour won-dollar weekday trading for Korea's onshore market on Monday is a somewhat belated but appropriate push toward gaining developed market status in the MSCI global index and enhanced currency convertibility. Moreover, it should be a move toward stabilizing the weak Korean won. Monday's step would keep the spot trading open from 6 a.m. through Saturday at 6 a.m., allowing late-hour trading, except on Jan. 1 and during the weekends. It is an easing of a tightly monitored foreign exchange trading system largely set in place after the 1997-98 financial crisis, enhancing currency convertibility. Finance Minister Koo Yun-cheol said that it would be the "starting point for the won's global leap." Yet, the move has both foreseeable benefits and downsides that must be managed through vigilant oversight. Looking at the 24-hour trading through an optimistic lens, Korean firms will have better access to hedge against late-hour foreign exchange volatility. Korean retail investors who invest in the U.S. bourses would enjoy more convenient access to foreign exchange transac

Jul 7, 2026

ED Canada's submarine choice: alliances over merit?

Canada's decision to award its next-generation submarine program to Germany's Thyssenkrupp Marine Systems (TKMS) is more than the outcome of a commercial competition. It is a reminder that, in today's defense market, geopolitical alignment can outweigh technological capability, industrial competitiveness and delivery performance. For Korea, the result is disappointing. For the international defense industry, it raises broader questions about how open and competitive major procurement processes truly are. Canadian Prime Minister Mark Carney acknowledged that the choice was exceptionally close. Both TKMS and Hanwha Ocean, he said, satisfied the Royal Canadian Navy's operational requirements and submitted strong proposals. That admission is significant. It suggests that technical capability was not the decisive factor. Hanwha Ocean entered the competition with a compelling case. Its KSS-III Batch-II submarine represents one of the world's most sophisticated conventional submarine designs, combining air-independent propulsion, lithium-ion batteries and long-endurance underwater operations.