Authorities warn of spread of livestock disease as Lunar New Year migration looms SEOUL, February 2 (AJP) - South Korea is on alert for the potential spread of livestock diseases ahead of the Lunar New Year holiday, when many people travel nationwide to their ancestral hometowns. Agriculture Minister Song Mi-ryeong on Monday convened a meeting at the government complex in Sejong to discuss stricter quarantine measures aimed at preventing outbreaks of highly pathogenic avian influenza, African swine fever and foot-and-mouth disease. Quarantine officials said that highly pathogenic avian influenza has been appearing sporadically this winter with the arrival of migratory birds, prompting authorities to implement preventive culling and impose movement restrictions around affected farms. African swine fever has also shown signs of spreading into some previously unaffected regions. Adding to concerns, foot-and-mouth disease has also returned after roughly nine months, with a case detected at a cattle farm in Ganghwa, Incheon, at the end of last month. Officials said that one to two weeks after the holiday, which begins late next week, will likely determine whether the diseases have spread, given their incubation periods. Government authorities are urging livestock farmers and related workers to step up surveillance and step up disinfection measures. 2026-02-02 16:53:56

K-economy analysis: hot chips, hot stocks — and a narrow growth base SEOUL, February 02 (AJP) -A booming semiconductor cycle and a frothy equity rally have lifted sentiment around the Korean economy, but the apparent strength rests on an increasingly narrow base, leaving broader growth and domestic demand lagging behind. Exports and stock prices are sending powerful bullish signals. Korea’s benchmark equity index surged to record territory in January, while outbound shipments continue with record-setting growth streak, fueling talk of a durable recovery. Yet headline momentum obscures a deeper imbalance: growth is being pulled forward by a handful of capital-intensive industries, while large swaths of manufacturing, domestic demand and employment remain stuck in stagnation. The divergence is most evident in international comparison. Korea’s real GDP growth rounded to 1.0 percent last year, among the weakest in Asia. Taiwan — also heavily exposed to semiconductors — expanded 8.63 percent, while China grew 5 percent, Singapore 4.8 percent, and Hong Kong 3.5 percent. Despite sharing a similar export profile with Taiwan, Korea has captured far less spillover into consumption, jobs and non-IT investment. Exports remain strong. Shipments rose 3.8 percent last year to $709.4 billion, crossing the $700 billion mark for the first time. January exports surged 33.9 percent on year to $65.85 billion, reinforcing expectations of another strong annual performance. But the rebound is highly concentrated. Semiconductor exports jumped 21.9 percent last year to $175.3 billion, riding a global chip supercycle amplified by artificial intelligence investment. Passenger car exports edged up 0.3 percent, while ship exports climbed 24 percent. The chip strength maintained over 20-percent growth in January. Traditional manufacturing tells a different story. Steel exports fell 4.5 percent, petroleum products 9.4 percent, auto parts 6.5 percent, wireless communication devices 6.2 percent, and home appliances 17 percent, reflecting global oversupply, rising trade barriers and weakening downstream demand. As a result, export dependence has deepened. Semiconductors accounted for 25 percent of total exports last year, up sharply from 16 percent in 2023. The top five export items — semiconductors, passenger cars, steel, petroleum products and ships — together made up 52 percent of total shipments, underscoring the growing concentration of Korea’s export engine. Stock-market strength outpaces the real economy Equity markets have amplified the sense of recovery. Chipmakers, shipbuilder and defense-related stocks have driven index gains, buoyed by strong earnings and optimistic forward guidance. But the rally has remained sector-specific, offering limited support to small manufacturers, service firms or regional economies. Domestic demand remains subdued. Retail sales rose just 0.5 percent last year, with spending gains concentrated in automobiles and communication devices. Sales of clothing, cosmetics and other everyday goods declined, highlighting the disconnect between asset prices and household sentiment. Industrial activity reflects the same split. Overall manufacturing output increased 1.6 percent, but total shipments were flat as domestic shipments fell 2.6 percent, offsetting export growth. The recovery is export-led, not consumption-led — a pattern that limits job creation and income growth. A K-shaped economy hardens The imbalance is becoming structural. Production at small and medium-sized manufacturers fell 3.3 percent last year, the steepest decline since records began a decade ago. Large manufacturers posted a 3.0 percent increase, pushing their output index to a record high. Growth accounting underscores the distortion. Without the semiconductor boom, Korea’s growth rate would have fallen to around 0.4 percent. The IT sector contributed roughly 0.6 percentage points to growth, with semiconductors alone accounting for about 0.9 percentage points, offsetting sharp contractions elsewhere. Construction investment dropped nearly 10 percent, shaving 1.4 percentage points off growth. Employment-intensive sectors such as construction, steel and petrochemicals continue to struggle, while job gains have been concentrated in services linked to aging demographics rather than productive investment. Policy constraints come into focus The chip-led surge leaves policymakers with limited tools. Broad monetary easing, the central bank argues, would do little to address sectoral polarization and could worsen asset and income inequality by further inflating stocks and property. Instead, authorities are relying on targeted credit programs and industrial support for vulnerable sectors, while holding interest rates steady. The strategy reflects a growing consensus that Korea’s challenge is not cyclical weakness, but structural imbalance — one that interest rates alone cannot fix. For now, booming chips and soaring stocks provide a powerful narrative of resilience. But the longer growth remains dependent on a narrow set of industries, the greater the risk that today’s recovery hardens into a prolonged K-shaped expansion — one that lifts markets but leaves jobs, incomes and domestic demand behind. As AI and semiconductor investment accelerate, Korea faces a paradox: the industries driving growth are also those least capable of spreading it widely. Without a broader revival in traditional manufacturing and consumption, the gap between headline strength and economic reality is set to widen further. * This article, published by Aju Business Daily, was edited by AJP. 2026-02-02 07:21:17

Korea's finance minister touts AI, new growth sectors in talks with Moody's SEOUL, January 30 (AJP) - South Korea’s Deputy Prime Minister and Finance Minister Koo Yun-cheol met with a delegation from Moody’s Investors Service on Friday, outlining the country’s plan to bolster medium- and long-term competitiveness through artificial intelligence and new growth industries. Koo met the Moody's team, which included Anushka Shah, a director overseeing sovereign ratings, at the Government Complex Seoul to discuss recent economic developments and the policy outlook. Outlining the government’s growth strategy, Koo identified semiconductors, the defense industry and K-culture as core sectors, while citing “physical AI” and power semiconductors as next-generation growth engines. He said fostering new industries would be critical to sustaining and expanding the country’s competitiveness. “The government is providing broad-based support, including workforce training, capital supply and regulatory easing,” Koo said. Responding to questions from Moody’s on the impact of artificial intelligence on employment, Koo said opinions vary but that AI-driven transformation across key industries, along with the emergence of new sectors, could generate new jobs built on core technologies. On geopolitical risks, Koo said the Lee Jae Myung administration has worked to maintain peace and stability on the Korean Peninsula since Lee took office, adding that conditions have remained broadly stable. Koo also addressed the management of national debt over the medium to long term, ministry officials said. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-01-30 14:12:53

Korea Rural Economic Institute Announces New Appointments ◇Korea Rural Economic Institute △Appointments ▷Seo Dae Seok, head of the Agribusiness Innovation Research Division ▷Kook Seung Yong, head of the Agricultural Finance and Fiscal Policy Research Office under the Macroeconomic Agricultural Policy Research Division ▷Seong Jae Hoon, head of the AI Agricultural Policy Research Team * This article has been translated by AI. 2026-01-29 08:27:00

Rice consumption falls further in South Korea as dietary shift continues SEOUL, January 22 (AJP) - South Korea’s per-capita rice consumption declined again last year, extending a decades-long slide as household eating habits continue to shift, government data showed on Thursday. According to the National Data Center’s survey results, annual per-capita grain consumption in the household sector fell 3 percent from a year earlier to 62.5 kilograms. Rice consumption accounted for 53.9 kilograms, down 3.4 percent, or 1.9 kilograms, from the previous year. Annual per-capita rice consumption is now about half of the 106.5 kilograms recorded in 1995 and has been on a steady downward trend since 1981. Average daily rice consumption also declined, falling 5.2 grams from a year earlier to 147.7 grams. In contrast, rice use in the business sector rose, driven by demand from food manufacturers. Rice used as an ingredient in food and beverage production increased 6.7 percent to 932,102 tons. Within that total, rice consumption by food manufacturers climbed 12.6 percent, while usage in beverage manufacturing declined 5.2 percent. By industry, rice cake manufacturers accounted for the largest share of business-sector rice consumption at 28.3 percent, followed by distilled alcohol producers at 23.2 percent and makers of other processed and ready-to-eat foods at 16.6 percent. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-01-22 14:33:28

Record number of South Koreans reaped handsome profits from overseas stocks SEOUL, January 22 (AJP) - South Koreans who reported taxes on profits from overseas stock investments topped 500,000 for the first time, tax data reveals. According to data submitted by the National Tax Service to Park Sung-hoon of the main opposition People Power Party (PPP) and released on Thursday, some 523,709 people filed tax returns on profits earned in 2024, up from 207,231 a year earlier. Those who invest in overseas stock markets and sell them for profits are required to pay a 22 percent tax here on gains exceeding 2.5 million won (US$1,700). The increase was attributed to a bullish U.S. market that year, with the S&P 500 up 23.3 percent and the Nasdaq up 28.6 percent. Another factor is the growing interest in overseas stock investment among retail investors seeking higher returns, as profitability improved sharply. Total reported capital gains in 2024 reached 14.42 trillion won, up 303.1 percent from 3.58 trillion won the previous year, with average gains per person around 28 million won. U.S. stocks accounted for the largest share of their investment. According to the Korea Securities Depository, the value of U.S. stocks they held rose from US$44.2 billion in 2022 to $68 billion in 2023, $112.1 billion in 2024, and $163.6 billion by the end of last year. To encourage them to return to the domestic market, the Ministry of Economy and Finance is mulling a temporary tax incentive for those who sell overseas stocks and reinvest their profits in domestic assets, under a scheme to be tabled at the National Assembly next month. 2026-01-22 10:45:04

South Korea seizes record 1,150 tons of illegally imported Chinese farm goods SEOUL, January 12 (AJP) - South Korea has uncovered a large-scale scheme to illegally import Chinese agricultural products that bypassed quarantine procedures or included items banned from entry. The Animal and Plant Quarantine Agency said Monday it had identified 12 suspects — three brokers and nine importers — accused of bringing uninspected Chinese dried jujubes, raw peanuts and dried chili peppers, as well as prohibited items such as fresh fruit and apple seedlings, through Incheon port between December 2023 and January 2025. Nine of the suspects are expected to be referred to the Incheon District Prosecutors’ Office later this month, the agency said. Authorities said the seized and confirmed illegal imports totaled about 1,150 metric tons, the largest amount ever detected by the agency, with an estimated domestic wholesale value of 15.8 billion won. Investigators said they initially discovered 33 tons of Chinese dried farm products during a raid on a warehouse in Gimpo in January last year. A subsequent analysis of electronic data, including mobile phones belonging to the suspects, uncovered evidence of an additional 1,100 tons of illegally imported Chinese seedlings and farm products over roughly a year — equivalent to an average of about 10 container trucks a month. According to the agency, the suspects worked with Chinese exporters and used a concealment method known as “curtain covering,” disguising agricultural goods as pet supplies in shipping containers. Investigators said the group filed false customs declarations claiming the shipments contained only pet products, allowing them to evade quarantine inspections and customs checks. Chinese apple seedlings and fresh fruit are strictly banned from import because they can host fire blight, a highly contagious plant disease that has caused recent damage to South Korean apple and pear orchards, the agency said. Dried agricultural products such as chili peppers and jujubes are also subject to mandatory quarantine inspections to prevent the introduction of invasive pests and plant diseases. Under South Korea’s Plant Protection Act, illegally importing agricultural products without quarantine inspection carries penalties of up to three years in prison or fines of up to 30 million won. “Unregulated imports of uninspected dried farm products, seedlings and banned fresh fruit pose a direct risk of introducing invasive pests and diseases and can seriously harm agriculture and forestry,” Choi Jeong-rok, head of the Animal and Plant Quarantine Agency, said. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-01-12 14:10:56

South Korea targets 2% growth, betting on boosted private consumption SEOUL, January 9 (AJP) - South Korea's economy is forecast to grow 2 percent this year, on the back of rising consumer spending and a recovery in construction investment following a prolonged slump, the government projected at a televised meeting of economic officials at the government complex in central Seoul on Friday It also pledged to make this year the starting point for an "economic leap" and to draw up a master plan for spurring growth and narrowing economic gaps. To achieve these goals, the government plans to roll out action plans by the first half of the year, setting growth targets through 2045, the 100th anniversary of the country's liberation from Japanese colonial rule and establishing a long-term vision to address mid- to long-term objectives. The 2-percent target is higher than the roughly 1.8 percent forecasts recently presented by major institutions such as the Korea Development Institute and the Bank of Korea. With external uncertainties and structural constraints weighing on the economy, the government's target appears ambitious. The government said domestic demand will be this year's main growth engine, projecting that private consumption, which grew 1.3 percent last year, will rise 1.7 percent in 2026, supported by improved consumer sentiment, policy measures, favorable employment conditions, and households' stronger purchasing power. Investment in construction is expected to rebound 2.4 percent this year after falling 9.5 percent in 2023. The government said the shift after a prolonged downturn should help boost the economy and domestic demand, though it expressed concern that unsold homes outside the capital and other provincial areas could limit the recovery. Exports are projected to rise 4.2 percent this year, supported by strong semiconductor demand, despite concerns that global trade could slow as the effects of U.S. tariffs intensify. Vice Minister Lee Hyeong-il said, "In recent forecasts, the growth rate of semiconductor sales has risen to 40 to 70 percent," adding that this increase is reflected in this year's outlook. The government forecast the current account surplus will widen to US$135 billion this year from $118 billion last year. It projected inflation will rise 2.1 percent, unchanged from last year, citing factors including lower international oil prices. Facility investment is also expected to rise 2.1 percent, driven by technology sectors including memory chips. With competition intensifying in advanced industries such as artificial intelligence (AI), the government projected a 3.3 percent increase in investment in intellectual property, driven by higher spending on research and development (R&D). But the job market is expected to slow due to structural factors such as a shrinking working-age population and an aging society. The government projected that the number of employed people will increase by 160,000 this year, about 30,000 fewer than last year. To meet its growth target, the government emphasized an expansionary fiscal stance, increasing total spending by 8.1 percent, the highest in four years. It also raised planned investment by public institutions by 4.3 trillion won, bringing the total to 70.5 trillion won. Based on this, the government plans to allocate 633.8 trillion won to support advanced strategic industries and small- and medium-sized businesses. To boost domestic demand, tax incentives for passenger cars will be extended until June, along with a 1 million won subsidy for those purchasing electric vehicles and other eco-friendly cars. More promotional and sales campaigns to support small business owners will also be organized to stimulate consumption. To spur corporate investment, the government will provide 54.4 trillion won in facility investment, while also encouraging foreign-invested companies to shift towards domestic R&D investment. While risks such as foreign exchange volatility, real estate market instability, household debt, and structural challenges remain, the government pledged to manage external risks and enhance the quality and sustainability of growth. "While focusing on economic recovery last year, we achieved visible results including strengthening growth momentum and the KOSPI surpassing 4,000 points," Lee said. "Based on these results, we will make an all-out effort for a major economic leap this year." 2026-01-09 16:14:21

South Korea seeks major economic leap through innovation-led growth SEOUL, January 07 (AJP) - South Korea will accelerate a shift toward an “ultra-innovation economy” to lift its potential growth rate, Deputy Prime Minister and Finance Minister Koo Yun-cheol said on Tuesday, describing this year as the starting point for a major economic leap. Speaking at a policy coordination meeting at the National Assembly, Koo said the ministry will deploy active macroeconomic policies, including measures to boost overall demand and to help revive activity among small business owners and the self-employed. Koo pointed to last year’s third-quarter economic growth, which he said was the strongest in 15 quarters, as well as gains in financial markets. He said South Korea’s exports exceeded $700 billion for the first time last year, while the effects of a supplementary budget — including the distribution of consumption coupons — helped expand job creation, particularly in service industries linked to domestic demand. "However, the economy faces mounting challenges amid a more difficult global environment and structural constraints at home," Koo said. The government plans to accelerate a transition toward an innovation-led growth structure by concentrating policy support on national strategic industries such as semiconductors, defense, biotechnology and K-culture, Koo said. He added that authorities will step up efforts in AX, or artificial intelligence transformation, and GX, or green transformation, to help revive potential growth. “Global competition has reached a stage where it is difficult to survive without becoming No. 1 in the world or an ultra-innovation economy,” Koo said. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-01-07 09:46:20

South Korea says financial markets stable despite Venezuela risks SEOUL, January 05 (AJP) - South Korea said on Monday that spillover effects on its financial markets and broader economy from recent U.S. airstrikes on Venezuela and North Korea’s ballistic missile launch have so far been limited. The assessment came after an emergency joint economic meeting convened to evaluate the potential impact of heightened geopolitical risks. The meeting was chaired by Kang Gi-ryong, assistant vice minister at the Ministry of Economy and Finance, and included officials from the foreign, trade and finance ministries, as well as the Financial Services Commission, the Bank of Korea, the Financial Supervisory Service and the Korea Center for International Finance. Officials said volatility in global markets, as well as in South Korea’s financial and foreign-exchange markets, remained manageable despite the recent developments. They added that any fallout for the real economy and overall trade conditions was unlikely to be significant in the near term. "Still, the government would maintain heightened vigilance," an official said, warning that geopolitical uncertainty could escalate. Authorities plan to step up monitoring of global oil prices, exchange rates, movements in international financial markets and shifts in export and import conditions. 2026-01-05 09:34:26