Journalist

Kim Yu-jin
  • South Korea revises rules for top procurement products to curb supply concentration
    South Korea revises rules for top procurement products to curb supply concentration The Public Procurement Service will refine technical review categories for its Excellent Procurement Products program and introduce a new “concentration management system” to prevent excessive deliveries being dominated by a single company.  PPS said it revised the “Excellent Procurement Products Designation and Management Rules” and the “Additional Special Conditions for Goods Purchase and Manufacturing Contracts,” with the changes taking effect from the 27th. The agency said the revisions reflect feedback from companies, strengthen review expertise, improve extension requirements and ease some rules to reduce burdens while supporting the growth of technology-focused firms. To improve the professionalism of technical evaluations, PPS subdivided review fields from eight to nine. The construction and environment field was split into civil and environmental works and building materials, and the electrical and electronics field was divided into electrical lighting and electronic devices. PPS also adjusted extension requirements, including export performance and the share of investment in technology development, to better match industry conditions. PPS said it will also broaden how delivery performance can be used to extend a designation. A delivery-performance item previously recognized only for new companies will be accepted for existing designated companies as grounds for extension if they meet certain requirements, such as the number of deliveries and customer satisfaction scores, to support continued growth of strong technology firms. To curb excessive concentration in deliveries to a specific company, PPS will apply the concentration management system to items with high market share and monopoly-like characteristics. After monitoring for one year, if concentration does not ease, PPS said it will introduce competitive procedures through supplier evaluations. To strengthen the effectiveness of satisfaction evaluations by purchasing agencies, PPS will raise the minimum grade threshold from 75 points to 85 points and disclose evaluation results so agencies can use more reasonable purchasing information. PPS said companies involved in serious industrial accidents will receive minus 5 points in credibility during designation reviews, and such companies will be added as a reason for exclusion from designation extensions, underscoring corporate responsibility for safety management. To prevent improper contract performance and promote fair procurement, PPS will require completion of Excellent Product training when reviewing extension applications. However, citing limited training capacity relative to demand, PPS said the requirement will apply to companies applying for extensions from 2028 after expanding the number of sessions and training institutions. PPS also announced measures to streamline field-centered regulations. Patent application confirmation documents had been issued only by the Korea Patent Technology Promotion Agency, but PPS added the Korea Invention Promotion Association as an issuing body to shorten processing times and reduce industry burdens. PPS said that when an Excellent Product designation is granted based on an Innovative Product status, and the Innovative Product designation period expires before the Excellent Product designation start date, the Excellent Product designation date may be shortened or changed to help ensure continuity in market access. In addition, PPS specified settlement methods for industrial safety and health management costs. For collaborative entities, PPS said it established a basis to recognize a participating company’s certification when the lead company cannot obtain certification due to legal restrictions. The Excellent Procurement Products program designates and publicly announces goods with outstanding performance, technology or quality to help small and venture businesses market technology-developed products. Designated items can be registered on the Nara Marketplace integrated shopping mall after signing unit-price contracts through private contracts. PPS Commissioner Baek Seung-bo said, “This system improvement is intended to create an environment where capable small businesses can continue to grow using public procurement as a springboard and to establish fairness in the market.” He added, “We will continue improving on-site regulations that hold companies back and create a business-friendly environment to support the growth of strong technology development companies.”* This article has been translated by AI. 2026-04-27 10:26:07
  • South Korea Weighs How to Use Expected Tax Windfall: Debt Paydown, Extra Budget or Reserves
    South Korea Weighs How to Use Expected Tax Windfall: Debt Paydown, Extra Budget or Reserves South Korea is again expected to post a large tax revenue surplus this year, and the government is weighing how to use it. Options under discussion include early repayment of government bonds, drafting a supplementary budget, or setting the money aside in a fund. Some analysts say the decision should hinge on what is driving the extra revenue. The choice is complicated by competing goals: restoring fiscal soundness while also responding to economic conditions. How policymakers proceed could depend on whether the revenue increase is structural or a temporary swing in the business cycle. ◆ “Use the surplus to cut debt first”: Fiscal discipline argument One view is that the surplus should be used to repay government bonds early to strengthen fiscal health, after national debt rose during the COVID-19 response. Supporters say paying down debt while revenue is strong would preserve medium- to long-term fiscal capacity and improve the government’s ability to respond if another crisis hits. Early repayment could also signal to international credit rating agencies and foreign investors that South Korea is actively managing economic fundamentals. Compared with injecting more money into the economy, debt repayment may help restrain the money supply and contribute, at least in part, to stabilizing high inflation, proponents argue. Some analysts also warn that using surplus revenue to expand spending could amplify economic volatility. The National Assembly Budget Office said surplus revenue stemming from underestimates can lead to higher spending in the same year or the next, potentially weakening fiscal policy’s countercyclical role during an upswing. An official at the office said, “If a supplementary budget is compiled as a tool to make up for underestimated tax revenue regardless of economic conditions, the likelihood of causing economic instability increases.” ◆ “Use fiscal spending to support growth”: Active fiscal policy argument Others argue for more active fiscal intervention to boost the economy. With domestic demand weakened by the effects of high interest rates and high inflation, they say government spending is needed to lift consumption and investment. Some call for cash-type support for vulnerable groups whose real incomes have fallen due to inflation, and for small business owners hit hard by the downturn, to strengthen the social safety net. Another argument gaining traction is preemptive investment in future growth industries such as semiconductors and artificial intelligence to spur private-sector investment. In this view, fiscal spending is a key tool to cushion near-term downside risks when consumption and investment are sluggish. A third camp says the government should build reserves in a fund rather than immediately expand spending or repay debt, as a hedge against volatility. Supporters describe it as a compromise that could serve as a buffer if sharp economic shifts occur or if large resources are needed during structural reforms. Critics note that setting money aside does not reduce debt as directly as early repayment and offers less immediate stimulus than a supplementary budget, making it less attractive politically. With the three approaches competing, the government has not set a clear direction. Park Hong-geun, minister of the Office of Planning and Budget, recently told reporters the government would proceed cautiously. Park said, “If a tax revenue surplus or surplus funds occur, we will execute them in an appropriate manner in accordance with relevant laws and procedures, including the National Finance Act.” Experts advise first determining the nature of the surplus before deciding how to use it. Kim Yu-chan, a professor of business administration at Hongik University, said it is important to distinguish whether the surplus is structural or temporary. He said the current increase appears largely temporary, driven by a strong semiconductor cycle, and that it would be desirable to pair fiscal spending that helps spread growth beyond semiconductors with a reduction in the amount of government bonds originally planned for issuance.* This article has been translated by AI. 2026-04-27 05:05:55
  • Finance Minister Koo Yun-cheol vows to boost local spending to help small businesses
    Finance Minister Koo Yun-cheol vows to boost local spending to help small businesses Koo Yun-cheol, deputy prime minister and minister of finance and economy, said on the 24th that the government will promote local spending and strengthen domestic demand to help small business owners struggling amid the war in the Middle East. Koo visited the venue of the Donghaeng (Companion) Festival being held in the Bupyeong Renaissance commercial district in Incheon, along with Lee Byung-kwon, second vice minister of SMEs and Startups. The festival is being run for 30 days starting on the 11th, linking 50 local festivals nationwide to encourage spending in neighborhood shopping districts and traditional markets. In Incheon, it is tied to the city’s “Bupyeong Black Day (BB-Day)” festival, with programs including tour buses for overseas cruise visitors arriving at Incheon Port, joint discount events among Bupyeong merchants and cultural performances aimed at attracting domestic and foreign tourists. Meeting with representatives of the Bupyeong Culture Street merchants association, Koo said he understood the area to be a strong example of revitalization, noting that merchants voluntarily organized street vendors and created a car-free street. He said the government will continue policy efforts to improve business conditions for small merchants facing difficulties from the Middle East war, including holding the festival and swiftly disbursing relief funds for damage from high oil prices. He reiterated the goal of boosting local consumption and domestic demand. Koo also visited a handicrafts booth and a clothing store at the venue and bought items, saying a strength of local shopping districts is being able to find quality handicrafts and apparel at reasonable prices. He urged the public to visit local shopping areas and festivals to enjoy them and spend money to help energize communities. Lee said the April Donghaeng Festival is being promoted in connection with 50 local festivals nationwide, including Bupyeong Black Day, to revitalize commercial districts and encourage local spending. He said the government will keep pushing consumption-boosting policies so small business owners affected by the Middle East war can regain momentum.* This article has been translated by AI. 2026-04-24 17:04:03
  • Finance Minister Koo Yoon-cheol urges firms to keep innovating after Q1 GDP jump
    Finance Minister Koo Yoon-cheol urges firms to keep innovating after Q1 GDP jump Koo Yoon-cheol, deputy prime minister and minister of finance and economy, met on April 24 with executives from major South Korean companies and said the corporate sector made a major contribution to the improvement in gross domestic product in the first quarter. The meeting at the Government Complex Seoul included executives from Samsung, LG and Hyundai Motor, among others. Koo said that despite a worsening external environment, including the war in the Middle East, the economy was supported by a semiconductor boom, with the preliminary first-quarter GDP estimate rising 1.7% from the previous quarter. He said it was the highest quarterly growth rate since the third quarter of 2020, 5 years and 6 months earlier. He thanked major companies for their contribution and said business leaders had always been a reliable backer in times of crisis. He urged companies not to be satisfied with current results and to "keep innovating on top of innovation" so they can become "global ultra-innovative companies" and help foster second and third growth engines comparable to the semiconductor industry. Koo also said some companies at times try to secure profits in ways the public may view as undesirable. He said the era has changed as industrial paradigms shift, including through artificial intelligence, and that companies should expand the overall size of the economy by leading the world with top-ranked products and services, demonstrating the innovative entrepreneurial spirit they have shown in the past. He said he discussed investment and future-readiness efforts with the companies and added that the government would mobilize all available tools — including financial, tax and regulatory reforms — to fully support corporate investment and innovation efforts. * This article has been translated by AI. 2026-04-24 16:30:13
  • South Korea to Ease Public Procurement Rules for Non-Capital Region Firms
    South Korea to Ease Public Procurement Rules for Non-Capital Region Firms Companies outside the Seoul metropolitan area, especially those in depopulating regions, will face fewer hurdles in public procurement as the government expands negotiated contracts and preferential purchasing. Koo Yun-cheol, deputy prime minister and minister of economy and finance, announced the measures at an Emergency Economic Headquarters meeting and a National Startup Era Strategy meeting on the 24th. The plan aims to lower entry barriers and expand participation for non-capital region firms by widening the scope of small negotiated contracts for companies based in depopulating areas. For firms in those regions, the government will raise the ceiling for single-quote negotiated contracts to 50 million won from 20 million won, matching the treatment given to women-owned, disabled-owned, social enterprises and youth startups. For small negotiated contracts targeting companies in depopulating areas, the Public Procurement Service will act as a purchasing agent even when the amount is under 100 million won. The government will also revise the two-stage competition structure under the Multiple Award Schedule, or MAS, used for online shopping-mall listings. For products made by companies in depopulating regions, it will raise the threshold amount for two-stage competition, expanding exemptions and improving purchasing convenience. When requesting proposals for two-stage competition, the system’s automatic recommendations through the shopping mall will include two non-capital region companies. In concluding MAS contracts, authorities will give non-capital region firms priority review to speed processing and broaden early participation. In bid and award evaluations for goods and services, the government will introduce new bonus points favoring local companies and, when conditions are the same, will buy goods from local firms first to expand contract opportunities for non-capital region businesses. Separately from existing bonus points tied to the location of the ordering agency, the government will create new bid preferences for non-capital region companies, focusing on depopulating areas. It will add preferential items for non-capital region firms to credibility bonus points used in qualification reviews for goods and services and in MAS contracting. When bids are tied or performance-capability reviews produce the same results, the revised standards will give priority awards to companies in depopulating regions and other non-capital region firms. In MAS two-stage competition, companies in depopulating regions and other non-capital region firms will be selected ahead of lower-priced bidders. The government also plans to strengthen support for domestic and overseas sales channels for non-capital region firms. Working with local governments, it will focus on identifying innovative local products and will include outstanding products from depopulating-region companies among those eligible for extended designation periods. It will provide tailored consulting, especially for early-stage non-capital region companies, and expand participation by holding regional editions of innovative product exhibitions previously held in the capital area. Companies designated as promising firms for entry into overseas procurement markets under the G-PASS program will receive bonus points. If selected for support programs, their priority allocation share will rise to 60% from 50%. The government plans to revise the Enforcement Decree of the National Contract Act and the Public Procurement Service’s instructions and guidelines within the second half of this year. A ministry official said the government will build a legal framework to support a major shift toward a “local era” and prepare bold preferential policies for non-capital region firms, adding that it will gather sufficient opinions and conduct deliberations to finalize detailed implementation plans and move them into legislation and制度ization.* This article has been translated by AI. 2026-04-24 09:35:03
  • South Korea to Auction 19 Trillion Won in Treasury Bonds in May; 1.1 Trillion Won FX Stabilization Bonds
    South Korea to Auction 19 Trillion Won in Treasury Bonds in May; 1.1 Trillion Won FX Stabilization Bonds The Ministry of Economy and Finance said it will issue 19 trillion won in Korean Treasury bonds next month through competitive auctions with primary dealers participating, citing improved market conditions including inflows tied to the World Government Bond Index. The amount is up 1 trillion won from the previous month. The ministry said Thursday the issuance by maturity will be: 3 trillion won in 2-year notes; 3.1 trillion won in 3-year notes; 3.2 trillion won each in 5-year and 10-year notes; 600 billion won in 20-year bonds; 5 trillion won in 30-year bonds; 800 billion won in 50-year bonds; and 100 billion won in inflation-linked Treasury bonds. Primary dealers and the general public may subscribe to a set amount on a noncompetitive basis at the auction’s awarded yield for each maturity. The ministry said it will separately announce whether it will conduct noncompetitive subscriptions through a subscription-based method in May, depending on market conditions. To support liquidity in the Treasury market, the ministry said it plans a 500 billion won switch operation between off-the-run 10-year, 20-year and 30-year issues and the 30-year benchmark issue. To cover temporary funding shortfalls caused by timing mismatches between revenue and spending within the fiscal year, the ministry said it will also issue 10 trillion won of 63-day fiscal securities in May. It said fiscal securities — short-term government debt that must be repaid within the fiscal year — and temporary borrowing from the Bank of Korea are used within a National Assembly-approved ceiling of 40 trillion won. The fiscal securities auctions will be open to 32 institutions, including Monetary Stabilization Bond auction participants, Treasury primary dealers, preliminary primary dealers and government cash management institutions, the ministry said. As of Thursday, the outstanding balance of fiscal securities was 22.5 trillion won, and temporary borrowing from the Bank of Korea stood at 5.3 trillion won, the ministry said. On an average outstanding basis for this year, the figures were 9.9 trillion won and 1.3 trillion won, respectively. The ministry also said it will issue 1.1 trillion won of one-year, won-denominated foreign exchange stabilization bonds in May through competitive auctions, up 300 billion won from the previous month. A total of 31 institutions, including primary dealers, preliminary primary dealers and eligible Monetary Stabilization Bond auction institutions, will participate, it said. * This article has been translated by AI. 2026-04-23 17:39:07
  • South Korea Raises Fines Fivefold for Illegal Fishing in EEZ, Allows Forced Removal of Abandoned Ships
    South Korea Raises Fines Fivefold for Illegal Fishing in EEZ, Allows Forced Removal of Abandoned Ships Foreign vessels caught fishing illegally in South Korea’s exclusive economic zone will face fines up to five times higher under legislation passed by the National Assembly. The government will also be able to forcibly remove long-idled ships left without authorization at port facilities. The Ministry of Oceans and Fisheries said revisions to the Act on the Exercise of Sovereign Rights over Foreign Fishing in the Exclusive Economic Zone, along with amendments to the Port Act and other related bills, cleared the National Assembly’s plenary session on the 23rd. The EEZ fishing sovereignty law revision is aimed at tougher enforcement against illegal fishing by foreign vessels by sharply raising maximum fines. For unlicensed vessels, the cap rises fivefold to 1.5 billion won from 300 million won, a move intended to strip away the financial incentive for illegal operations and strengthen deterrence. The ministry said it is also tightening on-site enforcement. Fisheries management teams and the Korea Coast Guard have formed joint mobile task units to strengthen responses, including seizures. For serious violations such as operating without a license or intruding into territorial waters, authorities are handing vessels over at sea to the Chinese coast guard so they can face penalties in both countries, the ministry said. Oversight of long-term non-operating ships abandoned at port facilities will also be strengthened. Under the revised Port Act, port authorities can order restoration to the original condition, and if an owner fails to comply, the authorities may carry out an administrative enforcement action directly. Revisions to the Act on the Entry and Departure of Ships will apply the same tugboat business registration and related standards to tugboats operating at port facilities outside designated port zones as those working inside port zones. The ministry said the change is expected to close gaps in tugboat oversight and supervision. Also passed were amendments to the Marine Waste and Marine Contaminated Sediment Management Act, clarifying that measures to block marine inflows of waste include waste collection activities, and revisions to the Port Transportation Business Act, specifying that mayors and provincial governors who operate locally managed ports may sign pier operation contracts. Minister of Oceans and Fisheries Hwang Jong-woo said the government will continue enforcement and institutional improvements to eradicate illegal fishing, adding that it will move to update subordinate regulations and ensure smooth implementation of the bills passed in the plenary session.* This article has been translated by AI. 2026-04-23 17:18:19
  • South Korea to Speed Arctic Shipping Route Plans as Supply Chain Risks Grow
    South Korea to Speed Arctic Shipping Route Plans as Supply Chain Risks Grow As the prolonged Middle East situation adds to global supply chain uncertainty, the South Korean government said it will accelerate key policies including efforts to expand use of Arctic shipping routes. Officials said major tasks such as port infrastructure expansion will be reflected in the 2027 budget, alongside stronger coordination among relevant ministries. The Office of Planning and Budget and the Ministry of Oceans and Fisheries on Wednesday inspected operations at the ministry’s Busan headquarters and visited major policy sites, including the Yeongdo marine cluster and Busan New Port. They discussed investment plans tied to building a “marine capital region” and promoting Arctic routes. In addition to uncertainty stemming from the Middle East situation, heavy reliance on specific passages such as the Red Sea and the Strait of Hormuz has emerged as a core risk for shipping and logistics, officials said. The joint visit was arranged to prepare in advance for policy shifts by promoting the Arctic route as an alternative and by concentrating development of the marine capital region — which has related infrastructure — as a forward base for entering Arctic shipping lanes. Officials said Busan New Port, located at the intersection of three major routes — the Americas, Europe and the Arctic — is expected to play a central role as a global logistics hub. The Yeongdo marine cluster is expected to serve as a key base for the marine capital region by bringing together research, education and industry support functions in the oceans and fisheries sector, including policy development, talent training and technology dissemination. Kim Tae-gon, the Office of Planning and Budget’s director general for economic budget review, said, “Building the marine capital region and promoting Arctic routes will help overcome the capital region’s one-pole system and become a new growth engine for our economy.” He added that the office plans to “listen closely to voices from the oceans and fisheries field and actively reflect them in the policy process.” Lee Sang-ho, the ministry’s director general for policy planning, said the ministry “quickly completed its relocation to Busan in December 2025 and launched the Arctic Route Promotion Headquarters,” adding that it has already built an implementation system to foster the marine capital region. He said the ministry will continue to work closely with the budget office and other agencies to develop the region and promote Arctic routes. The two ministries said they plan to incorporate measures discussed during the visit — including steps to speed development of the marine capital region and key tasks such as port infrastructure expansion to promote Arctic routes — into major policies, including the 2027 budget proposal.* This article has been translated by AI. 2026-04-23 17:03:10
  • Finance Minister Koo Yun-cheol to announce 4th fuel price cap at 7 p.m.; Q1 GDP up 1.7%
    Finance Minister Koo Yun-cheol to announce 4th fuel price cap at 7 p.m.; Q1 GDP up 1.7% Koo Yun-cheol, deputy prime minister and minister of finance and economy, said April 23 the government will announce a fourth round of maximum prices for petroleum products at 7 p.m. and apply them starting April 24. Koo made the remarks while convening the seventh meeting of the interministerial task force on special management of consumer prices at the Government Complex Seoul. He said gross domestic product grew 1.7% in the first quarter from the previous quarter, the highest growth rate in five years and six months. The government attributed the rebound mainly to strong exports driven by a semiconductor boom, capital market activation and policy steps to support consumption. Still, it said it will focus on macroeconomic stability and easing household burdens as ceasefire talks in the Middle East war are delayed and uncertainty over an end to the conflict remains high. To stabilize crude supply, the government said it has secured 118 million barrels of alternative crude for April and May and will smoothly provide 32 million barrels of stockpile oil swaps requested by refiners. Koo said the fourth price cap, to take effect April 24, will be announced at 7 p.m. after consultations with relevant agencies, including discussions at the meeting, taking into account international oil price trends, petroleum consumption, the fiscal burden and the impact on households. On measures for items under special consumer-price management, the government said it has operated a “public suggestion window” with a council of consumer groups since February and received 117 proposals. Areas cited as imposing heavy price burdens included food, energy, and housing and communications costs. The government said it has reflected the input by preparing price-stabilization steps such as improving the system for non-apartment maintenance fees and revising mobile phone plans. From this month through June, it will spend 32 billion won to offer discounts of up to 50% on major agricultural, livestock and fisheries products. It also said it will expand the cut in the idle tax on LPG butane, a common fuel for low-income households, to 25% from the current 105 and extend the application period by two months through the end of June. To stabilize supplies of raw materials for construction materials, the government said it will strengthen monitoring through special on-site inspections and support supply-chain diversification, including simplifying import procedures. Koo said items requiring price adjustments due to supply disruptions will be promptly reflected in unit prices for public construction projects, and financial support for the construction industry, including new funding and discounts on guarantee fees, will proceed without disruption. The meeting also discussed findings from inspections and investigations into collusion in the printing paper sector and measures to prevent repeat collusion. The government said it caught six paper companies colluding on printing paper prices and decided to impose a total of 338.3 billion won in penalties, order independent price resets and refer the case to prosecutors. To push repeat offenders out of the market, the government said it will improve the system so that penalties for repeat collusion are increased by 100% and, if necessary, registrations and permits can be revoked. Koo said the government will restrict eligibility to participate in public bids not only for bid rigging but also for non-bid collusion such as price fixing. He said the restriction period will be extended by six months for both ringleaders and minor participants to “eradicate collusion at its source.” 2026-04-23 10:29:39
  • Foreigners Net Buy 8.5 Trillion Won in Korean Treasuries After WGBI Inclusion
    Foreigners Net Buy 8.5 Trillion Won in Korean Treasuries After WGBI Inclusion Foreign inflows have picked up since South Korea began its inclusion in the World Government Bond Index, helping stabilize domestic financial markets, the government said. Officials cautioned, however, that external risks remain, including uncertainty tied to the war in the Middle East. The Ministry of Finance and Economy said Thursday it held the fourth meeting of its “WGBI standing monitoring and investment promotion task force” on Tuesday at the Government Complex Seoul. Related agencies reviewed capital-flow trends before and after the index inclusion. From the start of WGBI inclusion through Monday, foreigners’ net purchases of Korean Treasury bonds totaled 8.5 trillion won on a trade basis and 6.4 trillion won on a settlement basis, the ministry said. Inflows from Japan were somewhat limited, but funds from existing investors have continued to come in. The ministry said smoother foreign inflows since the April start of WGBI inclusion have contributed to market stability, including declines in Korean Treasury yields. With larger inflows expected next month, it said, authorities should prepare carefully. Hwang Sun-gwan, director general for government bonds, said, “With uncertainty from the war in the Middle East and risks from major countries’ monetary policies still present, we must thoroughly manage external risks and concentrate all capabilities so there is no disruption to foreign inflows.” He added that major large investors he met during last week’s investor relations meetings in Japan “fully trust” the government’s commitment to capital-market advancement. He said the task force’s role is to identify foreign investors’ difficulties and resolve them jointly to make Korea a more attractive place to invest. The government said it shared with relevant agencies the concerns raised during the Japan meetings and agreed to discuss improvement measures together. The ministry said it will continue to regularly monitor foreign inflows through the task force and maintain investor outreach to communicate with investors and address issues proactively.* This article has been translated by AI. 2026-04-23 10:05:58