Korea's income gap widens by largest rate in 3 years SEOUL, December 04 (AJP) - South Korea’s income gap between the top and bottom 20 percent of households widened to 5.78 times last year, snapping a three-year trend of improvement as income growth slowed and gains increasingly concentrated among high-income earners and older asset-holding households. According to the 2025 Household Finance and Welfare Survey released by the Ministry of Data and Statistics on Thursday, average household income rose 3.4 percent to 74.27 million won ($54,900) in 2024, the slowest increase in five years. Average household assets stood at 566.8 million won and liabilities at 95.34 million won as of March 2025. Housing and property assets accounted for 75.8 percent of total household assets, with the largest holdings among those in their 50s and 60s. Income growth slowed sharply across major categories—wages, business earnings and asset income—pulling down overall gains. Public and private transfer income, however, swung back into positive territory after a decline the previous year. Gains were heavily skewed toward upper-income households. The top 20 percent saw income climb 4.4 percent to 173.38 million won, while the bottom quintile posted a 3.1 percent increase and the second-lowest quintile just 2.1 percent. The pattern also diverged by age. Households headed by people in their 50s recorded a 5.9 percent income increase, supported by strong labor and asset gains. Those led by seniors aged 60 and older saw income rise 4.6 percent. In contrast, 40-something households posted a 2.7 percent rise, and those headed by adults under 40 saw income inch up only 1.4 percent amid weaker wage and asset gains and a decline in business income. The Gini coefficient for disposable income rose to 0.325 from 0.323, worsening for the first time since 2021. The income quintile ratio—comparing average income of the top 20 percent with that of the bottom 20 percent—expanded to 5.78 from 5.72. While inequality widened among working-age households, retirees moved in the opposite direction. For those aged 66 and older, both the Gini coefficient and quintile ratio improved, reflecting higher senior employment, increased national and basic pension benefits, and stronger asset income. The relative poverty rate among retirees fell 2.1 percentage points to 37.7 percent, the lowest level since the data series began in 2011. Non-consumption household spending—including taxes, social insurance contributions and interest payments—rose 5.7 percent to an average of 13.96 million won. Surveyed households estimated their “adequate” average monthly living cost after retirement at 3.41 million won, slightly higher than a year earlier. 2025-12-04 15:14:17

Seoul lifts 2026 cap for foreign-currency sovereign bonds to $5 bn SEOUL, December 04 (AJP) - South Korea has raised the ceiling for next year’s foreign-currency denominated sovereign bond issuance to $5 billion from $3.4 billion offerings this year, giving authorities more firepower to stabilize the won as demand for U.S. dollars can intensify to finance the government’s pledged $20 billion in annual U.S. investments. The stretch marks the largest foreign-currency borrowing capacity since crisis periods—$6 billion cap in 2009 at the height of the global financial crisis and $4 billion in actual issuance in 1998 during the Asian liquidity crunch. The revision was included in the 2026 budget framework approved by the National Assembly on Tuesday, the Ministry of Finance and Economy (MOFE) said Thursday. The government issued $3.4 billion this year across dollar, euro, and yen tranches—just under the $3.5 billion cap that was raised in May from an originally planned $1.4 billion. In October, Seoul sold $1.7 billion in bonds at a record-low spread of under 2 percent across maturities from two to ten years. Korean sovereign foreign-currency debt continues to hold solid investment-grade ratings: AA from S&P, Aa2 from Moody’s, and AA- from Fitch. Under the FX stabilization bond program, the issuance ceiling may be adjusted depending on global financing conditions, repayment schedules, and movements in the foreign-exchange market. The increase comes as the won has weakened roughly 7 percent this year, hovering near crisis-era levels of 1,500 won per dollar, pressured by a stronger U.S. dollar, heavy Korean investment in dollar-denominated assets, and concerns surrounding the government’s $350 billion investment pledge in the United States. The dollar, which has been easing lately as institutional players complied with pleas from authorities to help defend the won, is trading at 1,466.20 won in Seoul as of 9.15 a.m. Thursday. Domestically, the government trimmed next year’s won-denominated bond issuance target to 225.7 trillion won from the initial proposal of 232 trillion won. In a separate statement, the finance ministry stressed that Korea’s external liquidity remains sound despite the won’s slide. The liquidity coverage ratio—a measure of financial institutions’ high-quality assets available to meet short-term foreign-currency obligations—stood at 160.4 percent at the end of September, well above the 80-percent supervisory guideline. Net foreign assets exceeded $1 trillion, while the foreign-debt-to-FX-reserves ratio stayed at a manageable 40.7 percent. Korea held the world’s ninth-largest foreign-exchange reserve, totaling $430.7 billion as of November. 2025-12-04 09:23:04

UPDATE: Korea's factory output and investment slump Oct on stalled chip activity SEOUL, November 28 (AJP) - South Korea’s factory output in October shrank at the steepest rate in five years, while facility investment tumbled by double digits — all tied to stalled chip activity — further underscoring the country’s heavy reliance on the semiconductor sector for economic performance, data showed Friday. According to the Ministry of Data and Statistics, mining and manufacturing output fell 4 percent on month, the steepest drop since the 7.5 percent decline in May 2020. Output was also down 8.1 percent on year, the sharpest contraction since April 2023, when global supply disruptions hampered production lines. The slump was led overwhelmingly by semiconductors. Chip output plunged 26.5 percent on year, marking the biggest contraction in 43 years amid tightening in supply of legacy chips as Korean foundries redirect capacity toward long-term AI and data-center clients and shift resources to higher-performance lines. Excluding semiconductors, overall manufacturing output would have risen 1.1 percent. The dismal figures reverberated through financial markets. As of 1:30 p.m., the KOSPI had retreated 1.5 percent, while the Korean won weakened 2.8 won against the U.S. dollar. The yield on three-year government bonds jumped 6.7 basis points to end the morning trade at 3.08 percent. The downturn extended beyond manufacturing. Service-sector output slipped 0.6 percent on month, contributing to a 2.5-percent industry-wide decline, the steepest since February 2020 at the onset of the pandemic. Facility investment posted an even sharper drop. Investment fell 14.7 percent on month, the largest decline in four years since the 16.7-percent plunge in October 2020. Spending on machinery — including semiconductor equipment — decreased 12.2 percent, while investment in transportation equipment such as automobiles and ships fell 18.4 percent. The ministry cited a high base effect and suspended capital expenditure amid delays in tariff negotiations between Seoul and Washington. Construction investment was also weak, tumbling 20.9 percent, the largest contraction on record. Signaling a protracted slowdown, industrial orders dropped 41.6 percent on year. The ministry attributed the fall to sharply higher procurement costs from the weakened currency and subdued housing demand following tighter real estate regulations. Retail sales offered the sole bright spot, rising 3.5 percent on month partly driven by the second round of government stimulus vouchers. Cyclical indicators pointed to continued weakness. The coincident index fell 0.4 percent, indicating an ongoing slowdown, while the leading index remained flat, suggesting that the economic outlook ahead remains uncertain. 2025-11-28 14:07:47

Korea's Oct factory output dips steepest in 5 years on chipmaking cutback SEOUL, November 28 (AJP) - South Korea’s industrial output shrank at the steepest rate in five years in October on a sharp contraction in semiconductor activity that again underscored the economy’s heavy dependence on chipmaking, government data showed Friday. According to the Ministry of Data and Statistics Industrial Output data, mining and manufacturing output declined 4 percent on month, the steepest drop since 7.5 percent in May 2020, and 8.1 percent on year, the sharpest since 8.3 percent in April 2023 amid global supply disruptions. The slump was led by semiconductors, where output plunged 26.5 percent on year — the biggest contraction in 43 years. The fall reflects a tightening supply of legacy chips as Korean foundries divert capacity toward long-term AI and data-center clients and higher-performance semiconductor lines. Weakness extended beyond manufacturing. Service-sector output slipped 0.6 percent on month, contributing to a 2.5-percent overall industry-wide decline, the largest drop since February 2020 at the onset of the pandemic. 2025-11-28 09:27:25

Sitcom at 70 and stage at 90, Korea's eternal actor Lee Soon-jae SEOUL, November 25 (AJP) - "I'm forever indebted to you," 90-year-old actor Lee Soon-jae told television viewers on Dec. 31 last year after becoming the oldest recipient of the KBS top acting award in 2024. Since his debut in 1957, he appeared in more than 100 TV dramas, embracing any role — comedy, historical epic, classical theater — so long as he could act. Lee, who passed away on Nov. 25 at age 91, was a “born actor” who never feared challenge and moved effortlessly across genres. From traditional historical dramas to sitcoms, films, and stage productions, he remained a model of passion for younger performers until his final days. Born in 1934 in Hoeryong, North Hamgyong Province, and raised in Seoul from age four, Lee discovered acting early. At Daejeon High School he staged plays with friends, and at Seoul National University he helped revive the theater club in 1956 alongside Shin Young-kyun, Lee Nak-hoon, and Hwang Eun-jin. That same year he made his stage debut in "Beyond the Horizon". The following year he appeared on Korea’s first television broadcaster, DBK, in the drama Beyond Horizon, introducing his face to the small screen. In his early career, as an exclusive actor for TBC, Lee performed in more than 100 dramas. Through the 1980s he remained prolific across television and film, though largely in supporting roles. His breakthrough came at age 57. In 1991 he portrayed Lee Byung-ho, a patriarchal print-shop owner, in the MBC drama "What Is Love." The show averaged a record 59.6 percent viewership, and the nation embraced “Daebal’s father.” Riding the drama’s popularity, Lee successfully ran for the National Assembly in 1992. Even during his political years, he continued acting in "Ambition", "Farewell", "Bathhouse Men", and other series. After leaving politics in 1996, he returned fully to the screen. In 1999 he played Yoo Ui-tae, the strict yet warm-hearted physician and mentor to Heo Jun, in the MBC historical drama "Heo Jun", marking a dramatic image shift and winning renewed acclaim. He went on to appear in a wide range of works — from historical blockbusters like Sangdo, Jang Hee-bin, Immortal Admiral Yi Sun-sin, and Lee San to contemporary dramas such as The Heungbo Family. Lee’s second golden era arrived with the 2006 MBC sitcom "High Kick!." Shedding his stern image, he played a cranky but harmless traditional-medicine doctor. A notorious scene where he is caught watching adult videos earned him the nickname “Yadong Soon-jae,” endearing him to the young generation. At 72, he won the MBC Entertainment Grand Prize for the role. Despite the grueling five-day-a-week shoot, he once said he worked harder after hearing that hospitalized patients found rare moments of laughter watching the show. In 2008 he moved audiences again as an oboe player battling dementia in "Beethoven Virus." In the 2011 film I Love You, he portrayed a prickly but tender elderly man whose love story left theaters in tears. He continued to show comedic chemistry in "High Kick Through the Roof (2008)", including a late-life romance with the late Kim Ja-ok and playful quarrels with on-screen son-in-law Jung Bo-suk. In 2013, Lee joined the cast of tvN’s travel variety show "Grandpas Over Flowers" alongside Shin Goo, Park Geun-hyung, and Baek Il-sub. His tireless energy — studying instead of sleeping on flights, shooting without complaint — earned him praise from young viewers as a “true adult.” He led the ensemble through the 2014, 2015 and 2018 seasons. In his later years, he returned frequently to his first love: the stage. Even in his eighties, he endured the physical and mental demands of live theater. In 2021, at age 87, he delivered a celebrated performance in "King Lear", performing barefoot with flowing white hair and reciting nearly 200 minutes of lines without falter, drawing critical acclaim. Last year, he appeared in "Waiting for Godot… Waiting," though health issues forced him to cancel some shows. He vowed to return “in healthy form,” but doctors recommended three months of rest, prompting concerns among the public. His lifetime of relentless work was rewarded late. In 2024, he won the KBS Drama Award for his role as a veteran actor who can hear a dog’s voice in Dog Sound, becoming the oldest-ever winner of the network’s top prize. “I always believed a chance would come someday, so I kept preparing,” he said tearfully in his acceptance speech. “Today I received this beautiful, precious award.” In 2025, he was named a Korea PD Award winner in the actor category, though worsening health prevented his attendance. Lee Soon-jae leaves behind a legacy unmatched in Korean performing arts — a career that spanned nearly seven decades, countless genres, and generations of audiences who grew up with his voice, his authority, his mischief, and above all, his devotion to the craft of acting. 2025-11-25 13:31:59

Korean consumer confidence most upbeat in eight years SEOUL, November 25 (AJP) - South Koreans turned markedly more upbeat about the economy in November, buoyed by the stock market’s record-setting rally, the settlement of a tariff deal with the United States, and stronger-than-expected third-quarter growth led by resilient exports. The Consumer Sentiment Index (CCSI) rose 2.6 points from October to 112.4, the highest since 113.9 in November 2017, the Bank of Korea said Tuesday. A reading above 100 signals optimism about current and future economic conditions. The strongest improvement came from future economic outlook, which jumped 8 points to 102. Current economic assessment and household-income expectations also gained, while views on current living conditions and household spending remained unchanged. The index measuring assessments of the economy compared with six months earlier stayed below the neutral 100 at 96, but the reading improved by five points from October and stands far above its long-term average of 72. Expectations for economic conditions six months ahead climbed eight points to 102, reflecting easing uncertainties after Korea finalized a trade agreement with the United States that had clouded export prospects to the world’s largest market. Job-market sentiment remained weak at 95, though improved from 91 a month earlier and well above the March trough of 72. Perceived inflation over the past year held steady at 2.9%, and expectations for inflation a year ahead were unchanged at 2.6%. Grocery prices—particularly agricultural and fishery products—were cited as the biggest inflation burden by 51% of respondents, followed by utility bills (36%) and fuel prices (30.5%). 2025-11-25 09:20:46

 NPS pushed to front line of FX defense as KRW sinks to crisis levels SEOUL, November 24 (AJP) - South Korea’s fiscal and monetary authorities, constrained in their ability to slow the won’s steep decline, are turning to an unlikely player for relief: the National Pension Service (NPS), the country’s largest institutional investor and one of the biggest structural movers of the dollar–won rate. Working-level officials from the NPS met finance ministry counterparts at the Sejong Government Complex on Monday. In a press statement, the finance ministry said it has formed a joint "council" with the NPS, the Ministry of Health and Welfare that oversees the pension, and Bank of Korea to "monitor" the foreign exchange impact of the fund's overseas investment portfolio. The irony is that the fund is one of the biggest sellers of Korean currency as it finances a record expansion of its overseas portfolio—especially U.S. equities concentrated in the same big-tech and AI names now at the center of global bubble concerns. The dollar has strengthened more than 3 percent over the past month, nearing 1,480 won—a level touched only during extreme stress periods such as the 2009 global financial crisis or this April’s political turmoil. The won’s weakness has persisted even as foreign investors were record buyers of Korean shares last month, only to abruptly reverse course amid renewed fears of overvalued AI stocks in the U.S. Finance Minister Koo Yun-cheol, after meeting with the Bank of Korea governor and top financial regulators earlier this month, underscored the need to “improve structural imbalances” in FX supply and demand. The government has been consulting with major exporters and the NPS to help “smooth” excessive won depreciation. A giant investor—and a structural source of dollar demand Policymakers’ concern centers on the sheer offshore footprint of the NPS, one of the world’s largest institutional investors. As of end-August, the fund managed 1,322 trillion won, with 486.4 trillion won—36.8 percent—allocated to global equities, according to official data. Separate U.S. SEC filings show that U.S. holdings now form the sharpest edge of this exposure. In a Form 13F filed on Nov. 4, the NPS reported $128.8 billion in U.S. equities across 552 companies, up 11.2 percent from the previous quarter as both buying and valuations increased. At the top of its holdings sit Nvidia, Apple, Microsoft, Amazon, and Meta—America’s AI and cloud heavyweights. According to Fintel, the NPS holds roughly 49.6 million Nvidia shares, making it one of the world’s largest institutional shareholders. From the government’s perspective, the NPS is simultaneously a potential stabilizer in the FX market and a structural driver of dollar demand. Korean individuals separately hold $99.85 billion in overseas securities as of September. The NPS features prominently in recent FX-related verbal intervention, but its mission is fundamentally long-term: sustaining retirement payouts in a rapidly aging society. Its mid-term allocation plan calls for a continued increase in overseas and risk assets while trimming domestic bonds to improve returns. Each incremental shift into foreign stocks requires fresh dollar buying—a persistent downward force on the won that no one-off FX operation can meaningfully offset. This dynamic also explains why movements in Korea’s FX reserves remain modest despite recent volatility. Authorities, however, cannot exert too much pressure without inviting accusations of politicizing the nation’s last-resort retirement savings. Still, the combination of record overseas allocation and an AI-heavy portfolio is one of the most sensitive macro-financial issues facing policymakers. Analysts doubt the NPS will bend easily to government wishes. Details of Monday’s meeting remain sealed, but the market’s verdict was clear: the dollar gained an additional 3.9 won to close at 1,475.90. 2025-11-24 16:47:00

Trump Burger and Silla gold crown in Gyeongju APEC-themed travel package SEOUL, November 21 (AJP) - A “Trump” hamburger named after the U.S. president who enjoyed it during his visit to South Korea for the Asia Pacific Economic Cooperation (APEC) event — along with a chance to view authentic Silla dynasty crowns instead of the replica that pleased the VIPs — are among the highlights of a new tourism package launched to capitalize on APEC summit week in late October. Gyeongsangbuk-do Culture & Tourism Corporation (GCTO) will be offering a two-day “Gyeongju APEC Trail” tour through domestic travel agencies. The program reproduces the key sites, meals, and cultural stops experienced by world leaders and their spouses during the APEC Summit held in Gyeongju. The tour begins at Gyeongju Expo Park inside the Bomun Tourist Complex, where travelers can enter a full-scale reproduction of the APEC summit venue — the same setting where leaders from 21 economies gathered to negotiate agendas ranging from supply-chain resilience to digital governance. Visitors then move to the Hilton Gyeongju, where the “Trump Cheeseburger Set,” specially ordered by the U.S. president during summit week, will be served. Inside the hotel’s Wooyang Museum of Art, travelers can explore the exact venue where the joint Foreign and Trade Ministers’ Meeting was held. In the afternoon, the group visits Bulguksa Temple, which hosted the program for leaders’ spouses and daughters during the summit, offering a hands-on encounter with Silla Buddhist heritage. After dinner, travelers enjoy night-time attractions newly installed at Bomun Lake Square, including the APEC symbolic sculpture, immersive media art at Yukbuchon, and a lakefront 3D light show. The itinerary also includes premium Korean dishes featured during summit week — including the seafood pancake from Kolon Hotel that appeared on Xi Jinping’s dinner table for two consecutive nights. On day two, breakfast is served at Gyeongju Jungang Market, where Hong Kong Chief Executive John Lee and his wife famously praised the local “sundae gomtang” and “somerigukbap.” Travelers then tour major heritage sites, including Daereungwon, Cheomseongdae, and the National Museum of Gyeongju, where six Silla gold crowns — including one shown only as a replica during the APEC spouses’ program — are now on special display. The tour closes with a visit to Hwangnidan-gil that hosted K-Beauty Pavilion, to which U.S. White House spokesperson Karoline Leavitt visited immediately after the Korea–U.S. summit and posted the unpacking of her shopping of Korean beauty products. Souvenir recommendations include APEC’s official dinner liquor, Gyo-dong Beopju, and Hwangnam-ppang, to which Chinese President Xi showed liking. The package, priced in the 100,000-won (around $70) range per person, includes round-trip chartered bus service from the Seoul metropolitan area, one night of lodging, three meals, admission fees, a guide, and insurance. “By transforming APEC’s most memorable moments into a travel experience, we aim to elevate Gyeongju’s cultural brand value,” said Kim Nam-il, CEO of GCTO. The city has already seen a measurable boost. According to Hana Card data, foreign visitors spent 3.22 billion won in Gyeongju between Oct. 27 and Nov. 2 — more than triple last year’s level. Beauty-sector transactions surged more than fourfold, while hotel spending tripled. Even after the summit ended, foreign visitor spending remained nearly 50 percent higher than a year earlier, suggesting that the APEC spotlight is delivering a lasting tourism windfall. 2025-11-21 14:10:54

Samsung narrowly steals back No. 1 DRAM rank from SK hynix Q3- CFM SEOUL, November 20 (AJP) - South Korea's Samsung Electronics has narrowly reclaimed its No. 1 rank in global DRAM sales in the third quarter after yielding the position to its home rival SK hynix in the first half for the first time amid the surge in high-bandwidth memory (HBM) demand. The shift underscores rapidly strengthening DRAM prices due to frantic stockpiling of memory chips that power servers and a wide range of electronic devices, driven by fears of supply shortages as manufacturers prioritize output for AI servers, a latest market study showed. According to China Flash Market (CFM) data posted earlier this week, Samsung Electronics accounted for 34.8 percent of global DRAM sales in the third quarter, up 29.6 percent on quarter and edging SK hynix at 34.4 percent, whose quarterly gain slowed to 12.4 percent. Micron also logged a big of 27.1 percent, closely trailing in third place with a 22.4 percent share. The latest DRAM data mirrors a cut-throat market without the clear, decisive winner seen in past cycles, as AI reshapes the DRAM segment amid structural output shortages from hyperscale servers to laptops, intensified by growing demand for high-performance chips and sanctions on Chinese producers of legacy memory. The global DRAM market expanded 24.7 percent on quarter and 54 percent on year to $40.037 billion in the third quarter, while the NAND Flash market grew 16.8 percent to $18.422 billion. Combined, the semiconductor memory market reached a record $58.459 billion and is expected to continue its record-setting streak in the fourth quarter, the Chinese market watcher said. Both DRAM average selling prices and bit shipments increased in the past quarter, lifting quarterly revenues for all suppliers. Samsung returned to the No. 1 position, driven by an 85 percent quarter-on-quarter surge in HBM bit shipments and strong pricing in conventional DRAM, pushing its total DRAM revenue to a historic high. Chinese memory suppliers also accelerated capacity to offset the supply gap left by some competitors exiting older product lines, expanding their market presence amid rising prices. Samsung Electronics, which also produces smartphones, comfortably retained the top spot in the sales of NAND Flash powering mobile devices with a 29.1 percent share, followed by SK hynix at 19.2 percent and Japan’s Kioxia at 16.5 percent. Global NAND Flash revenue reached $18.422 billion in the third quarter, rising 16.8 percent on quarter but declining 3.1 percent on year. Although bit shipments continued to increase, rapid inventory reductions and migration to more advanced nodes have constrained output for some suppliers heading into the final quarter, the report said. 2025-11-20 10:07:19

Seoul finally puts Lone Star saga behind after ICSID declares complete win SEOUL, November 19 (AJP) -South Korea has finally put to rest its years-long investment dispute with U.S. private equity firm Lone Star, after the International Centre for Settlement of Investment Disputes (ICSID) overturned its earlier ruling that ordered Seoul to pay $216.5 million in compensation plus interest over the fund’s 2012 sale of a Korean bank. “The government's compensation liability — about 400 billion won at today’s exchange rate — has been retroactively cancelled,” Prime Minister Kim Min-seok said late Tuesday, announcing the final ruling by the Washington-based tribunal. Instead, Lone Star has been ordered to cover South Korea's legal expenses of 7.3 billion won ($5 million) within 30 days. The nullification marks a rare reversal by ICSID: only eight such cases have been overturned out of 503 settlements since the tribunal’s establishment in 1972. Seoul appealed the arbitral court’s 2022 decision, which had partially sided with Lone Star’s claim that it incurred losses of $4.67 billion due to alleged government interference in the sale of Korea Exchange Bank (KEB). The presidential office welcomed the ruling as a “correction” of the earlier interpretation. Lone Star purchased KEB in 2003 for 1.38 trillion won during the banking failures that followed South Korea’s Asian financial crisis and 1998 International Monetary Fund bailout. After multiple failed attempts to offload the lender, the fund sold KEB to Hana Financial Group in 2012 for 3.92 trillion won. The two sides have been locked in legal battles ever since, with Lone Star alleging that Seoul’s heavy involvement in the sale process depressed the bank’s value. 2025-11-19 07:25:39