KFTC to Overhaul Operations for AI-Driven Payments, Launch Agent-Payment Pilot The Korea Financial Telecommunications & Clearings Institute said it will support the financial sector’s AI transformation while reshaping its own organization around AI and moving to verify technology for an AI agent-based payment platform. On May 3 (local time), the institute said it will build a companywide “AI agent” work environment so employees can use AI agents in day-to-day tasks to improve efficiency. An AI agent refers to an intelligent system that goes beyond pro May 3, 2026

Seoul Gifts and Direct Home Sales Rise Ahead of End to Capital Gains Tax Break for Multi-Homeowners As a temporary suspension of heavier capital gains taxes for multi-homeowners nears its end, both gift transfers and direct, broker-free apartment deals are rising in Seoul. With higher tax rates set to return, some owners are moving beyond straightforward sales, turning to options such as debt-assumption gifts and discounted transfers within families to cut tax bills. According to the Supreme Court’s registry information system, Seoul recorded 1,980 gift-transfer registrations for “col May 3, 2026

Big 4 Korean Financial Groups’ Uncollectible Loans Near 3 Trillion Won as SMEs Struggle High interest rates and a prolonged economic slowdown have made it harder for banks to recover loans, pushing the Big Four financial groups’ estimated losses to nearly 3 trillion won by the end of the first quarter. Fact books released on May 3 by KB, Shinhan, Hana and Woori showed estimated losses totaling 2.9963 trillion won in the first quarter. That was up 5.8% from a year earlier and 16.8% from the previous quarter, the highest on record. Banks classify loan quality into five cate May 3, 2026

South Korea’s June 3 Local Elections Set: Ruling Party Stresses Stability, Opposition Seeks Referendum With a month to go until the June 3 local elections, South Korea’s rival parties have finalized nominations for the heads of 16 metropolitan and provincial governments and moved into full campaign mode. The vote is the first nationwide election held a year after the launch of the Lee Jae-myung government. The Democratic Party is pitching a message of “stable governance” and what it calls the removal of “insurrection forces,” while the People Power Party is framing the election as a judgmen May 3, 2026

Gold Prices Slide About 20%, Dragging Down Gold ETFs as Safe-Haven Appeal Wavers Gold, long seen as a key safe-haven asset, has fallen sharply in the wake of the war in the Middle East, drawing attention to shifting and potentially volatile money flows into gold-related exchange-traded funds. As gold weakens despite heightened geopolitical risk, analysts say investor sentiment appears to be changing. According to the Korea Exchange on May 3, as of April 30 the domestic gold price on the KRX Gold Market was 217,240 won per gram, the lowest level so far this month. Th May 3, 2026

Trump Threatens Higher Auto Tariffs, Deeper U.S. Troop Cuts in Germany, Raising Alliance Concerns President Donald Trump is escalating pressure on the European Union, pairing a threat to raise auto tariffs with a push to cut U.S. forces stationed in Germany. The moves come after Europe was seen as uncooperative with U.S. military operations against Iran, sharpening strains within the trans-Atlantic alliance. CNN reported that Trump told reporters in Florida on Friday, before boarding Air Force One, that the United States would “reduce troops significantly,” adding that the cut would b May 3, 2026

Trump Says U.S. Could Resume Strikes on Iran if It Acts 'Rudely' President Donald Trump said the United States could resume military action against Iran if it behaves “rudely.” According to Axios and other foreign media, Trump made the remarks May 2 (local time) at Palm Beach airport in Florida before boarding his plane. Asked by reporters whether he could restart attacks on Iran, Trump said, “If they (Iran) act rudely or do something bad,” it could happen. “For now, we’ll watch,” he added, saying the possibility “certainly” exists. Trump was also re May 3, 2026

Won-Dollar Exchange Rate Capped in the 1,480s as Fed, Inflation and Oil Prices Drive Volatility The won-dollar exchange rate, which swung in the 1,500-won range in early April, has recently struggled to break above the 1,480s. Analysts said expectations of easing Middle East tensions have increased downward pressure, but U.S. monetary policy and high oil prices remain upside risks. In Seoul’s foreign exchange market, the won closed at 1,483.3 per dollar in daytime trading on April 30, according to market data released Saturday. The rate stayed capped in the 1,480s even as interna May 3, 2026

Gyeonggi Governor’s Race Pits Choo Mi-ae Against Yang Hyang-ja in High-Stakes Contest With the People Power Party selecting Supreme Council member Yang Hyang-ja as its candidate for Gyeonggi governor, the race has come into sharper focus. Yang will face Democratic Party candidate Choo Mi-ae in a matchup that, on its surface, draws attention as a contest between two women. The symbolism is heightened because Gyeonggi Province is widely seen as the country’s biggest political battleground. But reducing the race to a simple narrative of “women’s political gains” risks missing the l May 3, 2026

South Korea’s Higher Capital Gains Tax on Multi-Home Sellers Returns May 10; Long-Hold Deduction in Focus A one-year temporary suspension of heavier capital gains taxes on home sales by multiple-home owners will end on May 9. Starting May 10, owners who sell homes in regulated areas are expected to face a sharply higher tax burden on gains. An exception remains. In some areas, sellers can keep the tax break through November if they complete an application for land transaction approval by May 9. According to the Ministry of Finance and Economy and other officials on May 3, once the suspension May 3, 2026