Record number of 30-somethings in Seoul unable to afford their own homes SEOUL, November 24 (AJP) - A triple whammy of soaring home prices, an increase in single-person households, and tighter loan regulations has pushed the number of households in their 30s without their own homes in Seoul to a record high. According to the Ministry of Data and Statistics, the figure rose by 17,215 from the previous year to 527,729, the highest since relevant statistics began in 2015. After a slight dip from 475,606 in 2015 to 456,461 in 2018, the number of households in their 30s without their own homes began climbing in 2019, rising by about 3,000 in 2021 and reaching 17,000 in 2023. Homeownership among 30-somethings has fallen for three consecutive years, with 193,456 households owning homes in 2024, down 7,893 from the previous year, and 2.9 times fewer than those in the same age group without homes. In Seoul, just 25.8 percent of people in their 30s owned homes in 2024, compared to 33.3 percent in 2015 and 30.9 percent in 2020. Across the country, the proportion fell to 36 percent for its sixth consecutive year, though it remains 10 percentage points higher than in Seoul, suggesting that soaring home prices in Seoul make it difficult for young people to afford their own homes. Delays in employment and marriage are also pushing back home purchases, while Seoul's high proportion of single-person households is seen as another factor lowering homeownership among young people. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-24 10:38:41

INTERVIEW: Korean economist sees AI as key to breaking out of low growth SEOUL, November 13 (AJP) - South Korea has a rare chance to escape years of sluggish growth if it can harness artificial intelligence as a new engine of productivity, according to Jeon Kwang-woo, chairman of the Institute for Global Economics and a former head of the Financial Services Commission. In an interview with Aju Business Daily, Jeon said the country’s economy — long constrained by an aging population, weak investment, and slowing exports — could find renewed momentum in the global race for AI leadership. “Artificial intelligence can be a catalyst for growth,” he said, adding that the challenge is to ensure that innovation “does not deepen inequality or social polarization.” South Korea’s economy expanded 1.2 percent in the third quarter, beating expectations. The Bank of Korea now estimates that if growth in the final quarter remains above minus 0.1 percent, full-year expansion could reach roughly 1 percent. The International Monetary Fund recently raised its 2025 forecast for South Korea from 0.8 percent to 0.9 percent, while global investment banks see growth in the 1 percent range. Even so, Jeon noted that South Korea continues to lag behind major economies, where growth averages 2 to 3 percent. “Low growth has become structural,” he said. To address it, he called for policies that boost labor productivity, technological competitiveness, and corporate investment, supported by a more dynamic financial system. Jeon pointed to recent developments in the AI industry as a promising sign. NVIDIA chief executive Jensen Huang’s plan to supply 260,000 GPUs to South Korea, he said, represents not only a technological opportunity but also a strategic hedge against U.S.–China tensions. “We must expand infrastructure such as data centers and energy supply to take advantage of this AI momentum,” Jeon said. South Korea’s government has pledged to make the country one of the world’s top three AI powers, but Jeon cautioned that fiscal prudence will be essential. “Spending must focus on areas with strong multiplier effects, such as AI infrastructure,” he said. “Excessive cash handouts could undermine financial stability.” He also warned of potential labor market polarization as automation advances. “AI will reduce labor demand in some sectors,” he said. “The government and businesses should prepare through retraining programs and stronger safety nets for vulnerable groups.” Despite concerns about a possible AI bubble, Jeon remains optimistic that the technology will continue to drive exports — especially in semiconductors — and lift South Korea’s growth to the upper 1 percent range next year. But he cautioned that policy uncertainty and geopolitical risks, including renewed U.S.–China tariff tensions, could still weigh on the outlook. “AI is not a guarantee of growth,” he said. “It’s an opportunity — one we must seize carefully, with both innovation and inclusion in mind.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-13 10:37:59

South Korea sees births rise for 14th straight month SEOUL, October 29 (AJP) - South Korea recorded an increase in births for the 14th consecutive month in August, according to new government data released Wednesday. The National Data Office said 20,867 babies were born in August, a 3.8 percent increase from a year earlier. Births rose in 12 of the country’s 17 major regions, including Seoul and Busan, though declines continued in Daejeon, Sejong and several smaller provinces. The birth rate climbed to 4.8 per 1,000 people, up 0.1 percentage point from last year. The total fertility rate — the average number of children a woman is expected to have in her lifetime — rose slightly to 0.77 from 0.75 a year earlier, remaining far below the population replacement level of 2.1. Firstborn children accounted for most of the increase, up 2 percent from the previous year, while births of second and third or later children fell by 0.9 percent and 1.1 percent, respectively. Marriage rates also improved, a trend demographers say could signal modest stabilization in family formation. There were 19,449 marriages in August, up 11 percent year over year, while divorces fell by 5.5 percent to 7,196. Despite the recent uptick, South Korea continues to grapple with one of the lowest fertility rates in the world — a demographic challenge that threatens long-term economic growth and labor supply. Government efforts to reverse the decline, including childcare subsidies and housing incentives for young families, have so far yielded limited results. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-29 13:55:00

Seoul confident of Washington's "understanding" on Korea's FX situation SEOUL, Oct. 17 (AJP) – Seoul held firm against U.S. President Donald Trump’s demand that Korea’s pledged $350 billion investment be made in upfront cash, expressing confidence that Washington’s financial and trade officials understand Korea’s vulnerability to large foreign capital outflows. Deputy Prime Minister and Finance Minister Koo Yun-cheol said U.S. officials have shown understanding of Korea’s position. “I met Secretary Scott Bessent at the G20 meeting. He understands that stabilizing South Korea’s foreign exchange market benefits both countries,” Koo told reporters in Washington on the sidelines of the G20 Finance Ministers and Central Bank Governors Meeting, adding that Bessent was interested in cooperating with Korea to ensure market stability. Koo said Bessent recognizes the challenges Korea faces regarding the upfront payment issue and likely discussed the matter with U.S. Commerce Secretary Howard Lutnick. When asked if Washington may drop the upfront payment demand, Koo replied that the U.S. side “understands our position, which could be favorable for us.” He emphasized that while Korea seeks to accelerate tariff negotiations — ideally by the Asia-Pacific Economic Cooperation (APEC) summit — any agreement should not compromise national interests. He pointed to the 25 percent U.S. tariff on automobiles as a key area needing prompt attention but noted that progress depends on mutual understanding and flexibility. On a possible currency swap facility, Koo said the instrument is one option to maintain market stability, though it is not the sole focus at this time. Soon after, Bessent told CNBC that Washington was “about to finish up with Korea,” echoing Seoul’s stance on the need for a currency swap arrangement to ease exchange rate volatility amid the planned investment outflow roughly equivalent to Korea’s foreign exchange reserves. Trump, however, reiterated that he expects Korea to make the full $350 billion payment upfront. Meanwhile, other senior Korean policymakers in Washington — Industry Minister Kim Jung-kwan and Presidential Policy Chief Kim Yong-bum — met separately with Russell Vought, director of the Office of Management and Budget (OMB), which oversees U.S. shipbuilding efforts. The officials highlighted Korea’s role in the proposed investment package under the slogan “Make American Shipbuilding Great Again.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-17 07:48:06

Glass ceiling still persists for women in public-sector jobs SEOUL, October 2 (AJP) - Many women, particularly those in state-run and public-sector jobs, still struggle to climb the career ladder due to a persistent glass ceiling in South Korean society. According to data from the Ministry of Personnel Management submitted to lawmaker Kwang Hyang-yeop of the ruling Democratic Party, women accounted for only 12.9 percent of high-level government posts, with just 201 among 1,554 senior officials, as of December last year. Gender disparity is particularly stark in economic ministries. The Ministry of Economy and Finance has only 3 women among 61 senior officials (4.9 percent), while the Ministry of Trade, Industry and Energy has 3 women among 52 officials (5.8 percent). The Ministry of Oceans and Fisheries has only one woman among 41 officials (2.4 percent), and the National Tax Service also has just one woman among 39 officials (2.6 percent). But the Ministry of Agriculture, Food and Rural Affairs has four women among 29 officials (13.8 percent), slightly above the average, and the Ministry of Employment and Labor and the Fair Trade Commission's ratio for female public servants also surpasses 10 percent. One female official expressed concerns about her career due to the lack of female role models in senior positions, raising questions about whether promotions or advancement opportunities are as fair as in private-sector jobs. The government plans to strengthen relevant policies in hiring and managing personnel to tackle these disparities. "We will promote diversity and ensure greater balance in recruitment to better address these concerns," vowed Yoo Seung-joo, head of the Ministry of Personnel Management. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-02 09:22:48