[Editorial] Growth challenge

South Korea’s economic growth, long a hallmark of its transformation, appears increasingly constrained, a negative development that calls for more decisive policy action from the government. The International Monetary Fund on Wednesday projected that the country could post a modest 2 percent expansion for 2025, a downward revision from the 2.2 percent forecast issued just last month. The IMF’s revised forecast clearly signals diminished expectations, illustrating the mounting structu

Nov. 22, 2024

[Editorial] Security void feared

The leadership of the main opposition Democratic Party of Korea has said that the party will consider impeaching Minister of National Defense Kim Yong-hyun. A member of its supreme council said in a council meeting on Monday that the Defense Ministry is “amplifying tension with North Korea again by neglecting launches of anti-North Korean leaflets” by South Korean activists, adding that it is “playing with fire to save first lady Kim Keon Hee.” Claiming that the Defense M

Nov. 21, 2024

[Editorial] Outflow of capital

Two worrying trends are sweeping the financial market in South Korea. First, a growing number of investors are jumping on the feverish cryptocurrency bandwagon. Second, investors tend to increase their holdings of red-hot US stocks rather than putting their money in the lackluster local stock market. The daily trading volume of the country’s top five cryptocurrency exchanges surpassed 20 trillion won ($14.4 billion) last week, outpacing the combined 19 trillion won of the main bourse Kospi

Nov. 20, 2024

[Editorial] Absurd trial delay

The Supreme Court’s confirmation of conviction of former lawmaker Yoon Mi-hyang for embezzling donations, is a reminder of a legal maxim that justice delayed is justice denied. Last Thursday the top court confirmed the second-trial judgment that had given her a one-year and six-month jail sentence, suspended for three years, for pocketing money donated to the Korean Council for Justice and Remembrance for the Issues of Military Sexual Slavery by Japan. The final judiciary conclusion came f

Nov. 19, 2024

[Editorial] Uncertain outlook

With former US President Donald Trump having prevailed in his bid for a second nonconsecutive term, a host of effects are hitting countries across the globe, and South Korea is no exception. In particular, Seoul’s financial markets are fluctuating amid growing concerns about future shocks linked to Trump’s trade policies. The main bourse Kospi tumbled below the 2,500 level to close at 2,482.57 on Tuesday, down 1.94 percent from the previous day. Investors also worried about the weake

Nov. 15, 2024

[Editorial] Ruling in the spotlight

The main opposition Democratic Party of Korea is intensifying its pressure on the nation's courts ahead of their initial rulings on cases involving the party's leader. Decisions on two charges facing Lee Jae-myung -- violating election law and suborning perjury -- will be made tomorrow and Nov. 25, respectively. Lee is accused of violating election law by giving false information to voters in the 2022 presidential election. He claimed ahead of the election that Kim Moon-ki, senior mana

Nov. 14, 2024

[Editorial] Drastic changes in order

The first half of President Yoon Suk Yeol’s five-year term has largely been disappointing. Instead of pushing for key policy initiatives, Yoon has been dragged down by a host of controversies and challenges amid plunging approval ratings. More worrisome is that Yoon shows no sign of making fundamental changes in his stances on controversial issues, including the soaring public criticism over first lady Kim Keon Hee. Yoon did apologize at a rare press conference Thursday to mark the second

Nov. 13, 2024

[Editorial] Dangerous ties

The main opposition Democratic Party of Korea held a rally in Seoul on Saturday, substantially calling for President Yoon Suk Yeol to step down. The party was going to hold a rally in Daejeon after the first one near Seoul Station on Nov. 2, calling for a special counsel probe of first lady Kim Keon Hee’s alleged illegal intervention in state affairs. It changed locations by holding its rally near a separate rally by civic groups including the Korean Confederation of Trade Unions, which ha

Nov. 12, 2024

[Editorial] Remain cautious, proactive

The US Federal Reserve trimmed its benchmark rate by 0.25 percentage points, reflecting cooling inflation and other economic data. But the Fed's monetary easing comes at a tricky moment as President-elect Donald Trump signaled the coming of a host of drastic changes in fiscal and economic policies. Given the close economic and financial relations between South Korea and the US, the forthcoming changes offer a difficult choice for Korea’s policymakers and central bankers. The country c

Nov. 11, 2024

[Editorial] Brace for changes

As Donald Trump has won the high-stakes US presidential election, sweeping changes are expected to affect South Korea in fields including economy, trade, security, defense and inter-Korean relations. While Trump’s slogan, “Make America Great Again,” resonated among the majority of US voters, his core stance -- “America First” -- is likely to force many countries, including South Korea, to confront drastic challenges and costly decisions in their relations with the U

Nov. 8, 2024

[Editorial] Damaging consent

The Democratic Party of Korea on Monday decided to push through a bill to require the government to obtain consent from the National Assembly before allowing exports of defense articles. If the Defense Industry Development and Support Act is revised as written by Democratic Rep. Kim Byung-joo, the government will have to ask the Assembly if it assents to such exports. Lawmakers will then have 30 days to deliberate on the request behind closed doors and make a decision. Every instance of defense

Nov. 7, 2024

[Editorial] Intel, a cautionary tale

In South Korea, Intel and Samsung Electronics used to be mentioned together as the leading examples of innovative frontrunners in the global tech business. Yes, they were; however, they no longer enjoy such flattering comparisons. Trouble-laden Intel is set to be replaced by Nvidia on the Dow Jones Industrial Average index Friday, a shocking setback for the US-based chipmaker in a changing landscape where even a technology behemoth can get kicked out of the index of blue-chip companies. The deci

Nov. 6, 2024

[Editorial] Beat populism

The National Assembly on Monday started in earnest to deliberate on the 667.4 trillion won ($483.4 billion) government budget for next year. The budget increased a modest 3.2 percent year over year. Deliberation ends in the general meeting of the Special Committee on Budget and Accounts on Nov. 29. Voting on the budget bill is slated for Dec. 2 in the Assembly plenary session. The ruling People Power Party makes much of fiscal austerity, while the main opposition Democratic Party of Korea regard

Nov. 5, 2024

[Editorial] Face the reality

President Yoon Suk Yeol’s approval rating dropped to just 19 percent in a poll released Friday, marking its lowest recording since he took office in May 2022. The continued fall of his approval ratings illustrates public discontent about his handling of political disputes. According to the survey conducted by Gallup Korea, positive assessments of Yoon’s performance edged down 1 percentage point from the previous week. But negative assessments hit an all-time high of 72 percent, up 2

Nov. 4, 2024

[Editorial] Tackle tech roadblocks

The confrontation between the US and China over high-stakes technology sectors is expected to intensify next year as a new set of rules set up by the US will restrict investment in China. The question is how the rules will affect South Korea, which maintains close trade relations with both the US and China. In the short term, such rules are likely to have a limited impact on Korea’s technology industries, according to experts in Seoul, but in the long term, there are shifting factors that

Nov. 1, 2024

[Editorial] Fiscal expedient

The government forecasts tax revenue to be 29.6 trillion won ($21.4 billion) short this year. The Ministry of Economy and Finance said Monday that it will use 14 to 16 trillion won in three funds to make up for the shortage. The three are: the foreign exchange stabilization fund, the national housing and urban fund and the public capital management fund. It will not issue government bonds. The government plans to cover the rest of the shortfall by withholding some 6.5 trillion won in national ta

Oct. 31, 2024

[Editorial] Currency risks

South Korea’s financial authorities cautiously watch the fluctuation of the Korean currency’s value against the US dollar in recent weeks, a fresh warning sign that may threaten to undermine the recovery of the country’s economy. The Korean won against the dollar opened at 1,390.5 won on Monday before hitting an intraday high of 1391.5 won. It closed down at 1,385 won. On Tuesday, the Korean currency has ended at 1,386.5 won. In the short term, the fluctuations in the past two

Oct. 30, 2024

[Editorial] Multicultural era

The number of foreign residents living in the country for three months or longer as of November last year hit an all-time high of 2,459,542, a report by the Ministry of the Interior and Safety showed last week. The report defines all foreign nationals living in Korea for over three months, naturalized citizens who are not ethnically Korean and children born here to foreign national parents as "foreign residents." This record was attributed to a surge in the numbers of foreign workers a

Oct. 29, 2024

[Editorial] Poor approval rating

Gaining and maintaining popularity is not necessarily the top priority for a president. After all, the person who leads the nation often has to embrace policies that may generate protests but need to be enacted for the country’s future. However, data on the popularity of a president can be viewed from a different angle. If the president's approval rating remains near rock bottom, and the reasons for such dismal results are related to bad policies or unwise decisions, the data inevitab

Oct. 28, 2024

[Editorial] A glimmer of hope

It is a pleasant surprise that South Korea's number of newborn babies rose on-year for two months in a row in August, a development that offers a glimmer of hope for the country struggling to resolve its demographic crisis. Korea has long suffered a dismal birth rate, painting a negative picture of economic health in tandem with the rapidly aging population. But according to data compiled by Statistics Korea, 20,098 babies were born in August, marking a respectable 5.9 percent increase from

Oct. 25, 2024