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Yujin Kim and Seo Hye Seung ujeans@ajunews.com

South Korea Doubles Reusable Cup Points, Adds 300,000 Lodging Coupons for Depopulating Areas 정부가 중동전쟁에 따른 에너지 위기에 대응하기 위해 ‘친환경 녹색소비’ 확산에 나섰다. 다회용컵을 이용하면 적립되는 탄소중립포인트가 300원에서 600원으로 한시 상향되고, 비수도권 인구감소지역 숙박쿠폰은 30만장 추가 공급된다. 재정경제부는 28일 이재명 대통령 주재 국무회의에서 ‘친환경 녹색소비·관광 붐업 방안’을 발표했다. 정부는 다음 달까지 녹색소비를 집중 홍보하고 6월을 ‘녹색소비주간’으로 지정해 참여를 확대하기로 했다. 지역사회·기업·공공부문이 함께하는 ‘모두의 녹색소비’ 캠페인과 녹색제품 구매 인증 이벤트도 추진한다. 제로웨이스트 제품 판매 촉진을 위해 탄소중립포인트 2배 이벤트를 진행한다. 다회용컵 이용 시 적립되는 포인트는 다음 달 6일부터 17일까지 이벤트 기간에 600원까지 늘어난다. 이달부터 에너지 저소비 제품 판매 매장에서 구매하면 지역사랑상품권을 최대 5% 추가 할인한다. 지방정부가 매장을 발굴·신청하면 중앙정부가 심사해 추가 할인에 대한 국비 70%를 지원한다. 저소득층의 노후 창호·보일러 등 난방설비 교체 지원단가는 243만원에서 267만원으로 인상된다. 재생원료를 사용한 종량제 봉투 생산·보급을 늘리기 위해 생산설비 교체비 지원에 138억원을 투입한다. 전기차 전환도 가속한다. 공공기관 의무구매임차제 실효성 강화와 공공·민간 차량 전환 확대 방안은 6월 중 마련한다. 전기승용차와 소형 전기화물차의 정부 지원 물량은 각각 2만대, 9000대 확대한다. 대중교통 인센티브를 늘리고 유연근무 확대로 출·퇴근 수요 분산도 추진한다. 모두의카드 정액형 기준금액은 50% 낮추고, 기본형 시차 출퇴근 시간대 환급률은 30%포인트 높인다. 재생에너지 중심의 에너지 구조 개편도 속도를 낸다. 다음 달 중 재생에너지 기본계획을 마련하고 6월 중 한국형 녹색전환 전략을 준비한다. 건물·주택 태양광 보급 목표는 6000건에서 8000건으로 늘리고, 아파트 10만 가구에 베란다 태양광 설치를 지원한다. 민·관 릴레이 소비행사로 친환경·지역소비 분위기도 조성한다. 다음 달 10일까지 열리는 동행축제를 지역·친환경 축제로 운영하고, 전국 50개 지역축제·행사와 연계한 이벤트를 진행한다. 디지털 온누리상품권 할인율은 다음 달 1일부터 5일까지 한시 확대한다. 기업 업무추진비 손금 산입 특례 대상에 온누리상품권 지출분을 추가해 지역경제 활성화를 유도하고, 백년가게·전통시장·온누리가맹점 결제 시 10% 청구할인도 가능해진다. 정부는 중동전쟁 영향 품목인 나프타·석유·요소 등에 대한 관리도 이어간다고 밝혔다. 나프타 수입비용 지원에는 6744억원을 투입했고, 석유 비축물량 확대도 추진 중이다. 또 100억원의 추가경정예산으로 국산 농축산물 정부 할인지원을 실시한다. 노지채소·시설과채·닭고기 등은 최대 40% 할인 효과가 나며, 계란은 30구당 1000원을 정액 할인한다. 수산물은 주요 판매처와 협력해 제철 수산물을 중심으로 온·오프라인 최대 50% 할인한다. 관광 활성화 대책도 포함됐다. 숙박쿠폰 사용기간은 내달 초까지 연장하고, 5월 초 철도·항공 등 대중교통을 증편한다. 철도는 총 64회 늘려 3만3000석을 추가 공급하며, 항공은 20개 노선에서 2580편을 운항한다. 비수도권 인구감소지역 숙박쿠폰은 기존 20만장에서 30만장까지 확대하고, 5월 초 장기연휴를 활용해 공공부문의 연가·여행을 장려한다. 반값여행 환급 지원대상은 인구감소지역 내 식사·체험·숙박 이용금액에서 지역 내 대중교통 이용금액까지 넓힌다. 반값휴가 대상은 중견기업 근로자까지 확대한다. 인구감소지역 자유여행상품에는 열차운임 100% 할인쿠폰을 지급하고, 5개 테마열차는 50% 할인한다.* This article has been translated by AI. 2026-04-28 12:40:12
Kim Seong-beom resigns as Oceans vice minister, seen running in Seogwipo by-election Kim Seong-beom, vice minister of oceans and fisheries, submitted his resignation on the 28th and left public office. He held a farewell ceremony that day at the ministry’s building in Busan and formally stepped down. His resignation, however, had not yet been accepted. Political circles said Kim is expected to run in the June 3 by-election for a National Assembly seat in Seogwipo City. With the farewell ceremony held before his resignation was accepted, the ruling camp appeared to be moving quickly to recruit him. The current Seogwipo lawmaker, Wi Seong-gon, has been confirmed as a candidate for Jeju governor and is expected to resign on the 29th. Kim is widely seen as the pick to fill the candidate field in what is considered a Democratic Party stronghold. Kim, a Jeju native, spent his school years in Namwon-eup, Seogwipo, and has held a range of senior posts in the oceans and fisheries sector. Analysts have also credited him with handling key issues — including the ministry’s relocation to Busan — during a roughly four-month vacancy in the minister post. At the farewell ceremony, Kim exchanged final greetings with staff and expressed both apology and gratitude to employees who endured the move to Busan. * This article has been translated by AI. 2026-04-28 11:12:17
South Korea Weighs Second Extra Budget as Higher Rates Raise Debt-Funding Concerns With high oil prices and inflation pressures tied to the Middle East still unresolved, lawmakers are again raising the idea of a second supplementary budget. Unlike the first extra budget, which relied on higher-than-expected tax revenue, a second package would likely require issuing deficit-financing government bonds, adding to upward pressure on interest rates. The first supplementary budget used 25 trillion won in excess tax revenue, allowing spending to expand without issuing new bonds. Of that, 1 trillion won was allocated to repay government debt. A second supplementary budget would be different. With limited room in tax revenue, much of the funding under discussion would have to come from issuing deficit bonds. Because bond yields typically move inversely to bond prices, a larger supply of government bonds can push prices down and yields up. With U.S. Treasury yields already elevated, a rise in domestic deficit-bond issuance could further jolt South Korea’s bond-market rates, which some analysts say are already near a threshold. Analysts warn of a potential vicious cycle: If fiscal expansion aimed at supporting growth also drives market rates higher, the economy could slow, increasing the burden on public finances. The Korea Capital Market Institute said an increase in government bond supply driven by expansionary fiscal policy is a main factor weakening the market’s capacity to absorb issuance and increasing rate volatility. Government bond yields affect funding costs across the economy and play a major role in pricing risk assets such as stocks and real estate. A sharp rise in rates could spill over into the real economy and financial markets, including wider corporate-bond credit spreads and higher household loan rates at banks, it said. A Korea Development Institute study found that for every 1 trillion won increase in Treasury bond issuance, the Treasury yield rises by 0.025 to 0.029 percentage points. It also found that for every 10% increase in government debt, bond yields rise by 0.43 percentage points. Whether rates rise further is expected to depend on how the Middle East war develops and whether a second supplementary budget is pursued. If the situation in which international oil prices do not fall below $100 a barrel persists, the government is more likely to press ahead with a second extra budget to support the economy. In that process, analysts say coordination between fiscal authorities and the Bank of Korea will be needed to avoid stoking rates. If the roles of fiscal and monetary policy fall out of balance, the costs could be borne most heavily by vulnerable groups. Experts say policymakers should be cautious about a second supplementary budget to avoid fueling interest rates. They also urge the government to craft policies based on longer-term economic prospects rather than focusing only on short-term relief. Yeom Myeong-bae, a professor of economics at Chungnam National University, said government policy consists of fiscal policy that spends money and financial policy that manages the money supply. “If the two are out of sync, the damage will be greater for vulnerable groups,” Yeom said. “When fiscal spending is financed with debt, in the short term the current generation suffers through things like higher prices, and it also creates debt that future generations must repay. Policy should be run with a long-term perspective.”* This article has been translated by AI. 2026-04-28 06:06:34
Deputy PM Koo Yun-cheol Pledges Broad Support for Korea’s Bio, Beauty Industries Koo Yun-cheol, deputy prime minister and minister of finance and economy, said on 27일 that the government is focusing on the bio and beauty industries as key growth engines for the South Korean economy and will support them through measures including research and development funding and regulatory streamlining. Koo made the remarks during a visit to Inist ST, a manufacturer of raw materials for chemically synthesized pharmaceuticals, where he inspected operations and held a meeting with representatives of small and midsize companies in the bio and beauty sectors, including firms based in the central region. He urged companies not to settle for the status quo, saying they should expand the economy by developing world-leading products and services. Sustainable growth, he said, requires a “win-win ecosystem” in which large companies lead global markets while small businesses and startups provide support. He also called for closer cooperation to drive shared growth as industries undergo paradigm shifts, including the rise of artificial intelligence. Koo said the public-private consultative body for supporting corporate innovation serves as a platform for ongoing communication among the government, companies and business groups to back investment and innovation. He said the government has prepared measures to foster a startup boom under a plan dubbed “National Startup Era,” reflecting requests raised at the group’s first meeting, including steps to simplify startup procedures for professors and students. In a subsequent meeting on the bio and beauty industries, Koo again stressed the need for continued investment in R&D and ongoing upgrades to quality and safety, rather than relying on existing products and brands. He asked participants to speak candidly about problems they face in the field and possible solutions. Company representatives described their businesses and requested government support in areas they said were needed. Participants said innovation and growth require policies tailored to conditions on the ground, thanked the government for creating a forum for dialogue, and urged officials to reflect the day’s proposals in government measures. The government said it will closely review the views raised at the meeting, provide prompt feedback to those who submitted proposals, and actively incorporate them into future policy and institutional improvements.* This article has been translated by AI. 2026-04-27 14:34:02
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 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 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 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 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 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