Jung Won-o Urges Against Political Conflict Over Seosomun Incident Jung Won-o, the Democratic Party's candidate for Seoul mayor, firmly stated on the 28th that the political conflict surrounding the Seosomun incident should not be politicized. He called on his rival, Oh Se-hoon of the People Power Party, to stop the negative campaigning. Jung resumed his campaign activities, which had been paused for two days due to the aftermath of the Seosomun overpass collapse, during a press conference held at his election office in Sogong-dong, Seoul. Focusing on safety, Jung announced his safety policies, stating, "We must correct the safety complacency that remains in the public sector and on-site, prioritizing the lives and safety of citizens." He emphasized that politicizing an incident that resulted in casualties is unacceptable, adding, "I have instructed my campaign team not to use this for electoral gain." The People Power Party has criticized Jung's supporters for allegedly discussing how to leverage the incident in a KakaoTalk group chat shortly after the accident, referring to it as a "positive development" and suggesting it could be used for aggressive campaigning. Regarding the upcoming TV debate scheduled for that evening, Jung stated, "There will be no discussion that politicizes the Seosomun incident." However, he expressed hope for discussions on improving life safety in Seoul, noting that many safety incidents occurred during Oh's administration. Jung also criticized Oh's campaign for its negative tactics, asserting, "From the beginning of the election, I proposed a policy-focused campaign without negative attacks, but it has been nothing but slander against me." He rejected Oh's repeated requests for a one-on-one debate, stating that the responsibility for the negative campaigning lies with Oh's team. He urged, "Stop the negative campaigning now." On the narrowing gap in polling numbers, which has reached a tie from a double-digit lead, Jung remarked, "I expected a close race from the start, and I have been preparing for the consolidation of supporters as we approach the final stretch." Jung affirmed, "Regardless of the polls, I will remain truthful and do my best at every moment, aiming for victory in the end." A recent poll conducted by Embrain Public on May 26-27 among 805 Seoul voters showed both Jung and Oh with equal support at 39%. The survey was conducted via mobile phone interviews, with a response rate of 14.0% and a margin of error of ±3.5 percentage points at a 95% confidence level. For more details, please refer to the Central Election Survey Deliberation Commission's website. 2026-05-28 12:18:00

Bank of Korea Governor Shin Hyun-song Vows Firm Action Against Currency Volatility Bank of Korea Governor Shin Hyun-song stated on May 28 that he will take decisive action against the recent volatility in the won-dollar exchange rate. Following a monetary policy committee meeting where the base rate was held steady at 2.50%, Shin emphasized, "We will not tolerate exchange rate volatility, and we have the means and will to address it through various methods." He identified the ongoing conflict in the Middle East as the primary factor contributing to the weakening of the currency. "The situation in the Middle East triggers risk-averse sentiment and affects markets not only in Korea but also in countries that heavily import oil," he said. "Countries that import oil see their exchange rates significantly influenced by oil prices, and if the situation in the Middle East stabilizes quickly, there is a strong possibility that the won will appreciate considerably in the future." Regarding the recent surge in the exchange rate, Shin pointed to the non-deliverable forward (NDF) market, noting, "NDF transactions lack transparency and often require anonymity. Particularly, when NDF trading occurs in offshore markets during Korean nighttime, it necessitates hedging, which can impact the domestic market." He proposed that a key solution would be to promote the internationalization of the won, bringing it into the formal financial system. "This would involve securing won through swap market transactions with the U.S. dollar, allowing for the reinvestment of principal. To achieve this, the use of the won must be expanded and formalized," he explained. Shin also commented on remarks made by Kim Yong-beom, head of the Presidential Policy Office, who stated on May 24 that high interest rates, inflation, and exchange rates are unavoidable costs of success as the Korean economy transitions to a new phase. Shin interpreted this as a sign of foreign investors' confidence in Korea. He added, "From the central bank's perspective, the exchange rate is a crucial factor in terms of liquidity, financial stability, and its impact on import prices, which can stimulate inflation." On the recent rise in market interest rates, Shin attributed it to international conditions but emphasized the importance of balance among market participants. He noted, "The recent increase in Korean government bond yields is part of a global trend, primarily driven by the conflict in the Middle East. Concerns about inflation and fiscal stability in major countries have led to rising bond yields, and Korean bonds are following suit." He concluded, "Stabilizing the bond market fundamentally requires participants to find balance. It is desirable for buyers and sellers to reach a consensus on price determination."* This article has been translated by AI. 2026-05-28 12:06:00

34 Businesses Caught Engaging in Unpaid Labor, Owing 448 Million Won 34 businesses have been caught by labor authorities for engaging in what is termed "unpaid labor" by misusing comprehensive wage systems, including fixed overtime pay. The Ministry of Employment and Labor announced on May 28 that it identified these businesses during a two-month oversight initiative aimed at eradicating the misuse of comprehensive wage systems, which began on February 26. The total amount of unpaid wages owed by these businesses is 448 million won. Comprehensive wage systems are intended for limited use in sectors where calculating working hours is challenging. However, they have faced criticism for being exploited as a means to evade paying overtime. This raises concerns about the normalization of excessive working hours through fixed overtime or flat-rate allowances. In response, the Ministry launched targeted oversight on 79 businesses suspected of misusing comprehensive wage systems, based on external complaints, petitions, and anonymous tips. Among these, 73 utilized fixed overtime, while six employed flat-rate pay systems. It was found that 43% of these businesses misused the comprehensive wage system. Of the 34 businesses that violated overtime limits, many failed to manage overtime properly. Additionally, 27 businesses did not accurately record actual hours worked, including overtime, night, and holiday hours, violating labor time record-keeping regulations. The government focused on confirming violations related to unpaid wages due to the misuse of comprehensive wage systems, as well as breaches of overtime limits and labor time record-keeping. For instance, a software development company paid only fixed overtime without verifying actual working hours. One cosmetics manufacturer failed to maintain any records of employee attendance while neglecting to pay over 100 million won in overtime and night work allowances. The Ministry has ordered these violating businesses to rectify their labor time violations and pay all owed wages. Failure to comply will result in legal action. Businesses that have completed corrections will be subject to repeated oversight until all legal violations are resolved. The Ministry of Employment and Labor plans to establish a continuous oversight system to prevent the misuse of comprehensive wage systems from being a one-time issue. Given the high detection rate of legal violations reported through the anonymous tip-off center, efforts to promote this reporting mechanism will be strengthened. Minister of Employment and Labor Kim Young-hoon emphasized, "Ensuring that workers receive fair compensation is a fundamental principle for normalizing the labor market. Compensation for labor must not be denied under the guise of comprehensive wages."* This article has been translated by AI. 2026-05-28 12:03:00

Wage Gap Widens Amid Performance Bonus Season Worker wages increased in the first quarter of this year, driven by expanded performance bonuses among large exporting companies. However, the improvement in real wages, adjusted for inflation, was limited. In March, the wage gap between businesses of different sizes exceeded 2.7 million won, indicating a growing polarization in the labor market.According to the 'April 2026 Business Labor Force Survey Results' released by the Ministry of Employment and Labor on May 28, the average nominal wage for employees in businesses with one or more regular workers was 4,555,000 won, a 3.4% increase (149,000 won) compared to the same period last year.However, real wages, which account for inflation, rose only to 3,847,000 won, reflecting a modest increase of 1.3% (49,000 won). The ongoing rise in consumer prices has significantly offset the nominal wage gains.In March, the total wage per worker across all sectors was 4,230,000 won, marking a 2.3% increase compared to the same month last year. This is a return to normal levels after a spike in February, when wage growth reached 17.8% due to the timing of holiday bonuses.March is typically a peak period for performance bonuses and special allowances, which highlighted the wage disparities based on company size.The average monthly wage for employees in businesses with 300 or more workers was 6,512,000 won, approximately 1.7 times higher than that of businesses with fewer than 300 workers, which stood at 3,743,000 won. While the wage growth rates for both categories were similar at 1.7% and 2.0%, the absolute wage gap reached 2,769,000 won.Special bonuses for regular workers averaged 526,000 won, reflecting a 4.4% increase from the previous year. This growth is attributed to the expansion of performance bonuses among large exporting firms in sectors such as semiconductors, automobiles, and shipbuilding.In contrast, small and medium-sized enterprises, facing sluggish domestic demand and high interest rates, have struggled to secure funds for performance bonuses, exacerbating the perceived wage gap. For instance, the total wage in the accommodation and food service sector in March was only 2,343,000 won, significantly below the overall average.The growth in real wages was also minimal. In March, real wages were 3,560,000 won, reflecting only a 0.1% increase compared to the same month last year. The persistent consumer price inflation, remaining in the 2% range, has limited the perceived improvement in wages.Employment trends continued to show a gradual increase. As of the last business day in April, the number of employees in businesses with one or more workers reached 20,702,000, an increase of 228,000 (1.1%) compared to the same month last year.Regular workers increased by 90,000 (0.5%), while temporary and daily workers rose by 121,000 (6.3%). By company size, businesses with fewer than 300 workers added 171,000 employees, while those with 300 or more added 57,000.By industry, the health and social welfare services sector saw the largest increase, adding 115,000 jobs. The finance and insurance sector added 32,000 jobs, and public administration, defense, and social security administration added 26,000. Conversely, the wholesale and retail sector lost 9,000 jobs, and the construction sector lost 5,000.Manufacturing, which employs the largest share of the workforce, saw an increase of 3,000 jobs, continuing its positive trend. Jeong Hyang-sook, head of the Labor Market Research Division, explained, "After adjusting the statistics to reflect the latest population data, manufacturing has shown a turnaround earlier than initially reported, marking its first increase in seven months."Last month, the number of new hires was 1,035,000, an increase of 109,000 compared to the same month last year, while the number of separations was 963,000, up by 107,000. Among these, voluntary separations totaled 339,000, an increase of 65,000 (23.7%).* This article has been translated by AI. 2026-05-28 12:03:00

Income Growth Fails to Keep Pace with Consumer Spending in Q1 In the first quarter of this year, household consumption showed signs of recovery, but income growth lagged behind, leaving many low-income families feeling significant financial strain. Notably, the trend of 'deficit spending' is deepening among lower-income households, where expenditures exceed income. According to the National Data Agency's "2026 Q1 Household Trend Survey" released on May 28, the average monthly income per household reached 5.481 million won, a 2.4% increase compared to the same period last year. However, the real income growth rate, adjusted for inflation, was only 0.4%. Household spending rose to 3.105 million won, marking a 5.3% increase that significantly outpaced income growth. Consequently, the average household surplus decreased by 3.1% to 1.239 million won, while the average consumption propensity rose by 1.7 percentage points to 71.5%. This consumption propensity indicates the proportion of disposable income spent, suggesting that households are left with less disposable income. The recovery in consumer spending, which began in the previous quarter, has become more pronounced. Notably, expenditures on transportation and logistics surged by 12.1%, while spending on entertainment and culture increased by 12.0%, and health expenditures rose by 10.4%. This reflects a simultaneous increase in car purchases, a rebound in overseas travel demand, and rising medical costs. Analysts suggest that the recovery in consumer sentiment, stock market rebounds, and rising asset prices since late last year have contributed to some increase in spending capacity. However, the benefits of this recovery are not evenly distributed across income levels. Households in the lowest income quintile saw their average monthly income rise by only 2.7% to 1.17 million won, while their spending increased by 7.3%. Their average consumption propensity stood at 155.3%, indicating that their spending exceeds their disposable income. This suggests that many households are relying on debt or depleting existing assets to cover living expenses. In contrast, households in the highest income quintile experienced a 4.2% increase in average monthly income to 12.378 million won, with disposable income rising by 5.1%. Their spending also increased by 6.9%, but their average consumption propensity remained at a stable 57.7%. This indicates that higher-income households are seeing faster income growth and relatively stable spending capacity. The income gap continues to widen, with the income quintile ratio based on equalized disposable income rising to 5.91 times, up from 5.82 times a year earlier. Equalized disposable income accounts for differences in household size, serving as a measure of actual living standards. A higher ratio indicates a deepening income polarization. Despite increases in government transfer income, the widening gap in market income remains a concern. Notably, the growth rate of earned income has slowed. In the first quarter of this year, earned income rose by only 0.3% to 3.422 million won. This reflects a base effect from last year's significant increases due to improvements in the semiconductor industry and expanded bonuses, as well as a slowdown in employment in manufacturing and construction. Conversely, transfer income increased by 9.7%, driving overall income growth. This rise is attributed to increases in public transfer income, such as national pensions and basic pensions, as well as expanded government support. In fact, a similar trend of rising transfer income was observed in the fourth quarter of last year, which helped sustain overall household income.* This article has been translated by AI. 2026-05-28 12:03:00

Climate Ministry Reveals 158 Violations of Construction Waste Law, Including Major Firms Hyosung Heavy Industries, Daebang Construction, and the Korea Land and Housing Corporation (LH) are among the 158 entities publicly identified for violating the construction waste law last year. The Ministry of Climate, Energy and Environment announced that it will disclose the names of the corporations, project names, violations, and penalties for these infractions from January to December 2025 on its website for one year starting from May 28. This disclosure represents approximately 13.1% of the total 1,203 violations of the construction waste law recorded last year, a decrease of 14.1% from the previous year's 184 cases. The disclosed violations include administrative penalties, prison sentences, fines, and fines of less than 10 million won. The list includes private construction companies such as Hyosung Heavy Industries, Daebang Construction, Jungheung Construction, and Kyeryong Construction Industry, as well as public enterprises like LH's Southern and Northern Gyeonggi regional headquarters, Korea Electric Power Corporation, and Korea Expressway Corporation's Gimpo-Paju construction project team. Local public enterprises such as Gyeonggi Housing and Urban Corporation and Incheon Urban Corporation are also included. By type of violator, waste generators accounted for the largest share with 78 cases, followed by collection and transportation companies with 48 cases, and intermediate processing companies with 32 cases. In terms of penalties, there were 55 administrative penalties, 2 fines, and 101 fines. Among specific violations, waste generators had the highest number of infractions related to non-compliance with construction waste storage standards, totaling 61 cases. Collection and transportation companies reported 28 cases of violations, including exceeding waste acceptance limits and delays in processing, as well as environmental contamination. Intermediate processing companies had the most cases of failing to comply with permit changes, with 13 instances. Notably, many of the disclosed violations focused on inadequate site management, such as non-compliance with storage standards and delays in processing, rather than illegal dumping, highlighting the need for strengthened management systems at each stage of construction. Kim Go-eung, director of the Resource Circulation Bureau at the Ministry, stated, "Construction waste accounts for about 36% of total waste generation, so transparent and lawful management from the generation stage to final disposal is essential. We will prevent similar violations from recurring through the disclosure of violations and enhanced on-site training."* This article has been translated by AI. 2026-05-28 12:03:00

Tax Agency Targets Supercar Tax Evasion Among Corporations The National Tax Service (NTS) has launched investigations into individuals suspected of tax evasion by using corporate funds for personal luxury, including the private use of supercars registered under corporate names. Following the introduction of green license plates, there has been a resurgence in the purchase of high-value corporate vehicles, prompting the NTS to target these irregular tax practices involving 'corporate supercars.' On May 28, the NTS announced that it has selected 19 corporations suspected of supporting lavish lifestyles for their owners or engaging in improper gifting and fund misappropriation. The targeted companies collectively own 90 high-value vehicles, valued at approximately 30 billion won. The total amount of suspected tax evasion is estimated at around 300 billion won. The NTS plans to focus on several key areas during the investigation, including the use of corporate funds to support extravagant lifestyles, irregular accounting practices, and improper gifting to the owners' children. Despite the introduction of the green license plate system aimed at curbing the private use of high-value corporate vehicles, registrations have continued to rise. In fact, the number of new registrations for corporate vehicles valued over 100 million won increased from 48,894 in 2022 to 51,542 in 2023. Although the number dropped to 33,960 in 2024 due to the impact of the new license plate system, it has risen again to 39,429 this year. The NTS has also uncovered evidence that some owners have manipulated driving logs while using corporate supercars for personal visits to golf courses, entertainment venues, and luxury hotels. In one case, a corporation purchased six supercars worth 3.6 billion won using corporate funds for personal use by the owner’s family. Another company was found to have improperly classified approximately 1.5 billion won in entertainment expenses at a room salon as corporate costs over several years. Instances of overseas asset concealment and improper gifting have also been detected. One owner failed to report 17 billion won earned from overseas stock investments, hiding the funds in foreign accounts, while another individual is suspected of improperly gifting funds for the purchase of buildings worth several billion won to their underage children. The NTS noted an increase in irregular succession methods, such as transferring high-value vehicles to family companies at undervalued prices or providing large loans without interest. They plan to conduct thorough examinations of the overall flow of funds. Additionally, the NTS intends to verify fund flows through digital forensics, tracking financial accounts, and conducting on-site inspections. If intentional tax evasion is confirmed, they will pursue legal action under the Tax Offenses Punishment Act. An NTS official stated, "Using corporate vehicles and funds for personal purposes undermines tax fairness and creates a sense of relative deprivation. We will pursue luxury tax evasion relentlessly." 2026-05-28 12:03:00

Bank of Korea Governor Shin Hyun-sung Calls for Interest Rate Increase Bank of Korea Governor Shin Hyun-sung stated on May 28 that raising the benchmark interest rate in the future would provide an opportunity to manage various economic factors consistently. During a press conference following the monetary policy committee's decision to maintain the interest rate at 2.50%, Governor Shin noted, "Inflation has directly impacted consumer prices, and growth showed positive numbers in the first quarter. The exchange rate is leaning towards weakness, and issues related to real estate and household debt are resurfacing." He added, "The core inflation rate was 2.2% in April, but other indicators suggest that inflationary pressures are clearly present. The living cost index has the most direct impact on expected inflation, and considering the current economic situation and price trends, I believe there are ongoing upward pressures on prices." Governor Shin explained, "The most challenging aspect of policy implementation is that there are multiple objectives that can conflict, creating a dilemma. However, in this case, when looking at inflation, growth, exchange rates, and real estate, the path forward is clear. Raising the benchmark interest rate will provide an opportunity to manage these various factors consistently." He continued, "We need to consider three issues: how quickly to raise the rate, how far to raise it, and the answers to these questions will be reflected in the dot plot released today." The dot plot revealed that out of 21 projections, 10 indicated a level above the current interest rate of 3.00%, while 7 projected 2.75%. A total of 19 out of 21 projections were above the current rate, indicating that most committee members expect an interest rate increase within six months. Although the committee has held the rate steady for the eighth consecutive time, there were minority opinions advocating for an increase during the monetary policy meeting. Governor Shin remarked, "Considering the uncertainty, we only have statistics on core inflation up to April, so there was a suggestion to weigh the uncertainty more heavily. The minority opinions can generally be viewed as strategic differences under the same overarching perspective."* This article has been translated by AI. 2026-05-28 11:51:00

Ruling Party Calls for Thorough Investigation into Seoul Bridge Collapse Jung Cheong-rae, chairman of the Democratic Party, emphasized the need for a thorough investigation into the recent collapse of the Seosomun overpass and the missing rebar in the GTX-A line section at Samseong Station. "We must ensure that such incidents do not happen again by implementing effective preventive measures," he stated. On the morning of May 28, Jung convened an emergency forum with members of the Democratic Party's Land, Infrastructure and Transport Committee and the Administrative Safety Committee. He remarked, "To move toward a safer South Korea, we need to reassess our entire safety management system from top to bottom." He explained the forum's purpose, saying, "This is a critical issue that threatens the lives and safety of Seoul's citizens, and we must diagnose the causes to prevent similar accidents in the future." He added, "Those responsible must be held accountable." Jung also highlighted the need for legislative action, stating, "It was shocking to hear that there is no law regarding the dismantling of SOC (social overhead capital) in South Korea. This underscores the reality we face. We will review everything from immediate actions to long-term needs and take the lead in legislation and policy." After the forum, lawmaker Yoon Geon-young told reporters, "We discussed the issues arising from the lack of specific laws or procedures related to SOC dismantling. We will work on creating legislation and institutional improvements at the National Assembly level." Lawmaker Cheon Jun-ho criticized the Seoul city government's approach, saying, "There have been repeated safety issues at construction sites recently commissioned by the city. The belief that 'what the city does must be safe' has been shattered. Despite this, the city's attitude has been overly complacent." He continued, "The Seosomun collapse is also a reflection of safety negligence. Inspections were conducted without adequate safety measures, and there are concerns that the city approved the dismantling plan without sufficient review, selecting the construction company just six days later." Cheon concluded, "We can no longer rely solely on the city; we will discuss measures with the government." The forum was attended by lawmakers from the Administrative Safety Committee, including Yoon Geon-young, Mo Gyeong-jong, Park Min-kyu, Oh Gi-hyeong, Lee Hae-sik, and Chae Hyun-il, as well as Yeom Tae-young from the Land, Infrastructure and Transport Committee.* This article has been translated by AI. 2026-05-28 11:48:00

South Korea to Release 12 Million Barrels of Strategic Oil Reserves With about ten days remaining until the deadline for releasing strategic oil reserves under the International Energy Agency (IEA) joint resolution, the South Korean government has decided to lower the mandatory private stockpile days. This decision comes as refiners accelerate the import of alternative crude oil, and approximately 15 million barrels of strategic oil swap are already circulating in the market, leading to the conclusion that government releases would be less effective. Yang Gi-wook, head of the Ministry of Trade, Industry and Energy's Resource Security Division, announced on May 28 during a briefing at the Sejong Government Complex, "We have decided to implement the IEA international cooperation by adjusting the mandatory private stockpile days. We will issue a notice to reduce the requirement from 40 days to 20 days, effective from May 29." Previously, on March 11, shortly after the outbreak of war in the Middle East, the IEA decided to release a record 400 million barrels of strategic oil. South Korea's share of this release amounts to 22.46 million barrels, which must be completed by June 9. According to the Ministry of Trade, the IEA's release conditions differentiate between government releases from strategic oil storage facilities and private releases through the adjustment of mandatory stockpile days. Initially, the government had informed the IEA that it would utilize both government and private releases equally. This new approach indicates a preference for proceeding primarily with private releases. Yang emphasized, "We made this decision based on three factors: the national interest, the current domestic crude oil supply situation, and the prolonged uncertainty in the Middle East. Given that there are no significant issues with the current domestic supply situation, we are moving forward with private releases to comply with the IEA joint resolution." The estimated volume for the private release under the joint resolution is 12 million barrels. The government believes that reducing the mandatory private stockpile will allow refiners to manage their inventories more effectively. However, since refiners currently have sufficient stock, the release of private reserves is not expected to happen immediately. Yang noted, "This means that the private sector will have more flexibility in how they utilize their reserves, but it does not imply that they will be released right away. We also considered that the private stockpiles are not significantly different from pre-war levels in the Middle East." The government estimates that the private sector holds about 90 million barrels of crude oil and products, exceeding the mandatory holding requirement. Given the heightened uncertainty surrounding the Middle East conflict, the government plans to conserve its strategic reserves as much as possible. Yang stated, "During discussions with refiners, it was suggested that since they have secured alternative supplies, it would be prudent to proceed with strategic oil swaps for the time being, and to release government reserves only if the situation worsens. This was a comprehensive assessment considering the supply situation of the nation and refiners." Among the 22 million barrels to be released under the IEA joint resolution, the 10.46 million barrels not allocated for private release are unlikely to be released. Yang explained, "Of the 32 IEA member countries, four have not participated in the joint resolution, and as of June 8, ten countries have yet to release any strategic oil. Each country has considerable discretion in this matter." He added, "Since each country has flexibility regarding their situation, release methods, timing, and volumes, there are no penalties for not releasing. We believe that if we communicate our intentions adequately, the non-release of about 10 million barrels will not become a major issue." Yang also mentioned, "The strategic oil swap is being viewed as a new method for government reserves to enter the market, and we will be able to explain this adequately to the IEA in the future." Meanwhile, the government expects to secure crude oil at about 85% of the previous year's levels by July and anticipates no significant issues with crude oil supply in August. Yang remarked, "As we continue to secure alternative supplies, the supply situation does not seem to be difficult, and we do not expect significant differences from June and July."* This article has been translated by AI. 2026-05-28 11:39:00