Government Launches Major Spending Restructuring to Enhance Budget Efficiency The South Korean government has initiated its largest-ever spending restructuring effort to reduce unnecessary financial expenditures. This move includes mandates for each ministry to implement spending restructuring at the project level, reinforcing the commitment to enhance fiscal efficiency. On May 18, the Ministry of Strategy and Finance notified various ministries of the results from the "Integrated Financial Project Evaluation" conducted over the past four months since January. As a May 18, 2026

Annual Business Closures Exceed 1 Million as Banks Increase Support for Small Enterprises As annual business closures surpass 1 million, the banking sector is stepping up to provide consulting and financial support for struggling small enterprises.Cho Yong-byeong, chairman of the Korea Federation of Banks, stated at the 'Joint Small Business Consulting Results Sharing Event' held on May 18 in Seoul, "Small business owners, our valued customers, are directly facing economic changes and cost burdens in the most immediate sectors of the economy." He emphasized the commitment to actively May 18, 2026

Samsung Life Insurance Eyes Overseas M&A as Thai Profits Surge 63% As the domestic insurance market faces growth limitations due to low birthrates and an aging population, the life insurance industry is increasingly focusing on expanding into overseas markets. Samsung Life Insurance is bolstering its international strategy based on strong performance from its Thai subsidiary. According to data from the Financial Supervisory Service on May 18, Samsung Life's Thai subsidiary reported a net profit of 10.4 billion won in the first quarter of this year, a 63% i May 18, 2026

Hanmi Pharmaceutical Expands Obesity Drug to Diabetes Treatment Hanmi Pharmaceutical is expanding the indications for its GLP-1 drug, epeglanatide, to include diabetes treatment. The company views obesity not as a standalone disease but as part of a complex metabolic disorder that includes type 2 diabetes and cardiovascular diseases. To this end, Hanmi is implementing a Life Cycle Management (LCM) strategy to broaden the use of epeglanatide, aiming to develop a 'metabolic disease integrated platform' that connects obesity, diabetes, and cardiovascular condit May 18, 2026

Shinhan Bank Provides 7.5 Billion Won in Guaranteed Loans to Incheon SMEs Shinhan Bank announced on May 18 that it will provide a total of 7.5 billion won in guaranteed loans to small and medium-sized enterprises (SMEs) and small businesses in the Incheon area.To support mid- to low-credit companies and e-commerce businesses, Shinhan Bank has signed a 'Specialized Inclusive Finance Guarantee Agreement' with the Incheon Credit Guarantee Foundation.The initiative aims to reduce the financial burdens faced by small businesses with mid- to low-credit ratings and to provid May 18, 2026

Rival Parties Clash Over Allegations Against Seoul Mayor Candidate in National Assembly Hearing On May 18, rival parties engaged in a heated exchange during a meeting of the National Assembly's Administrative Safety Committee, focusing on allegations against Jeong Won-o, the Democratic Party's candidate for Seoul mayor, as well as issues related to audit standards and the GTX-A rebar omission incident. The committee convened to discuss various allegations against Jeong, resulting in a contentious atmosphere. Members of the People Power Party displayed signs reading, "Jeong Won-o, w May 18, 2026

Doosan Construction Secures $733 Million Busan Mangmi 5 Redevelopment Project Doosan Construction has secured the construction rights for the Mangmi 5 District redevelopment project, a major urban renewal initiative in Busan's Suyeong-gu. With this contract, Doosan has surpassed 2 trillion won in new orders for the year. The company announced on May 18 that it was selected as the final contractor after receiving overwhelming support from members at the general assembly of the Mangmi 5 District redevelopment association held on May 16. Doosan had set a record-high order ta May 18, 2026

EU Moves to Diversify Supply Chains Beyond China, Potentially Benefiting South Korea The European Union (EU) is moving to reduce its dependence on China by mandating the diversification of supply chains for critical components. This shift could present opportunities for South Korean companies in the European market. The Financial Times reported on May 17 that the EU is developing a plan requiring European companies to source critical components from at least three different suppliers. According to EU officials familiar with the matter, the new regulations are being consid May 18, 2026

Ruling Party Urges Oh Se-hoon to Address GTX-A Rebar Omission Issue Directly Members of the Democratic Party's Administrative Safety Committee criticized Oh Se-hoon, the People Power Party's candidate for Seoul mayor, on May 18 for allegedly hiding behind attachments regarding the rebar omission during the construction of the GTX-A Samsung Station. This response came after a city official claimed during a committee meeting that they had reported to the Korea Railroad Corporation monthly. During a press conference at the National Assembly, including committee membe May 18, 2026

Jung Won-oh Proposes Housing Solutions for Youth and Newlyweds Jung Won-oh, the Democratic Party's candidate for Seoul mayor, announced on May 18 that he plans to reduce initial costs for newlywed housing and expand rent support for young people. During a press conference in front of Seoul City Hall in Jung-gu, Jung unveiled his "Three Major Housing Stability Measures for Youth and Newlyweds." According to his proposal, 10,000 affordable homes for newlyweds and 30,000 public rental units will be made available. The affordable homes will include equit May 18, 2026