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Employment Insurance Subscribers Increase for Fifth Consecutive Month, Manufacturing and Construction Sectors Decline Last month, the number of regular subscribers to employment insurance increased by 268,000, marking the fifth consecutive month of growth in the 200,000 range. However, the number of subscribers in the manufacturing and construction sectors continues to decline, and the employment crisis among young people persists. According to the Ministry of Employment and Labor's report on labor market trends based on May 2026 employment administrative statistics, the number of regular employment insurance subscribers reached 15,848,000 at the end of last month, an increase of 268,000 (1.7%) compared to the same period last year. The increase in employment insurance subscribers has consistently been in the high 200,000s for five months since January. The rise in employment insurance subscribers is primarily due to steady growth in the service sector. The number of service sector subscribers reached 11,113,000, an increase of 284,000 (2.6%) from a year ago. The health and welfare sector saw the largest increase with 114,000 new subscribers, followed by accommodation and food services (55,000), business services (24,000), and educational services (22,000). In contrast, the manufacturing sector has experienced a decline for the past year. Last month, the number of manufacturing subscribers was 3,840,000, a decrease of 10,000 (-0.3%) from the previous year. While there were increases in shipbuilding and boat manufacturing (3,700), other transportation equipment manufacturing (5,100), and electronics (4,100), declines were noted in metal processing (4,000), textile products (3,200), and rubber and plastics (2,600). Notably, the automotive manufacturing sector, which had been on the rise, shifted to a decline in March and saw an expanded decrease of 2,000. Cheon Gyeong-ki, head of the Ministry of Labor's Future Employment Analysis Division, stated, "Both parts manufacturing and finished vehicle manufacturing are showing a declining trend. The large fire at an automotive parts factory in Daejeon in March likely impacted parts production." The construction sector also saw a decrease of 8,500 subscribers (-1.1%), bringing the total to 745,000, marking a decline for 34 consecutive months. The decrease is primarily centered in the general construction sector (8,600), although the rate of decline has been slowing, according to the ministry. By gender, male subscribers numbered 8,662,000, while female subscribers totaled 7,186,000, reflecting increases of 85,000 and 183,000, respectively. By age group, there were increases among those in their 30s (84,000), 50s (46,000), and those aged 60 and over (207,000), while there were decreases among those aged 29 and under (-65,000) and in their 40s (-5,000). The decline among young subscribers has continued for 45 consecutive months since September 2022. Cheon noted, "Typically, the population under 29 has been decreasing by around 100,000, so a decline of 65,000 in subscribers indicates that the employment situation is being maintained. However, the slight expansion of declines in manufacturing, information and communication, and transportation and warehousing sectors last month likely affected the youth as well." The number of new applicants for jobseeker benefits was 79,000, a decrease of 6,000 (-7.2%) compared to last year, marking a reduction for four consecutive months. The number of beneficiaries was 630,000, down by 40,000 from the previous year, and the total payout was 1.03 trillion won, a decrease of 78 billion won (-4.1%). The job vacancy ratio, which indicates the number of job openings per job seeker, rose slightly to 0.42 from 0.37 in the same month last year.* This article has been translated by AI. 2026-06-09 12:06:00 -
Public Sanitary Napkin Distribution Program to Launch in July Starting in July, the 'Public Sanitary Napkin Support Pilot Project' will be implemented, allowing anyone in need of sanitary napkins to access them at nearby public facilities. On June 9, the Ministry of Gender Equality and Family announced that it has selected 12 local governments across the country to participate in the pilot project, confirming the brand name for the public sanitary napkins as 'Everyone's Sanitary Napkins.' The pilot project will take place in the following areas: Gwangjin-gu and Eunpyeong-gu in Seoul, Gwangmyeong and Suwon in Gyeonggi Province, Seocheon-gun in South Chungcheong Province, Jung-gu in Daejeon, Jeongeup in North Jeolla Province, Mokpo in South Jeolla Province, Buk-gu in Gwangju, Gumi in North Gyeongsang Province, Geochang-gun in South Gyeongsang Province, and Jeju City in Jeju Special Self-Governing Province. The introduction of 'Everyone's Sanitary Napkins' aims to alleviate the burden of purchasing sanitary napkins, expanding support beyond vulnerable youth to improve accessibility for all. The sanitary napkins will be packaged hygienically in packs of two medium-sized napkins and will be provided through dedicated dispensers. The Ministry plans to install and operate dispensers in key public facilities such as administrative welfare centers and public libraries in the pilot areas, as well as near busy transportation and commercial hubs tailored to local characteristics. Additionally, dispensers will be placed near university areas with a high concentration of young single-person households and in industrial complexes for worker accessibility. A total of over 700 dispensers will be installed in the pilot areas, consisting of approximately 300 manual and 400 automatic units. The 12 local governments selected for the pilot project were chosen through a review committee from 32 applicants by the deadline of May 21. These governments will complete preparations for the installation and operational systems before launching the project in July. Minister of Gender Equality and Family, Won Min-kyung, stated, "The introduction of the government public sanitary napkin program, 'Everyone's Sanitary Napkins,' is a first step toward creating an environment where anyone can use sanitary napkins with peace of mind when needed. We expect it to contribute to enhancing public health rights and alleviating the financial burden of purchasing sanitary napkins."* This article has been translated by AI. 2026-06-09 12:06:00 -
Coupang Fined $4.5 Million for Misleading Advertising Practices Coupang has been penalized by the Fair Trade Commission for misleading advertising regarding its membership pricing. The commission announced on June 9 that it would impose a corrective order and a fine of 500 million won (approximately $4.5 million) on Coupang for advertising its 'Wow Membership' prices as lower than regular retail prices while concealing that these prices were based on one-time coupons issued upon membership registration. According to the Fair Trade Commission, Coupang began this advertising practice between August 2020 and May 2022, during a period of rapid growth in the paid membership market for online shopping. Typically, consumers who subscribe to a paid membership for a specific online shopping platform tend to exhibit a 'lock-in effect,' leading to increased repeat purchases. Therefore, competitive strategies among businesses in the paid membership market became crucial. Coupang initiated its Wow Membership advertising in March 2020, adding product discount benefits for paid members. Initially, the term 'Wow Member Price' was used to indicate prices applicable to Wow members at all times, while one-time coupons were separately noted. However, after conducting tests to assess the effectiveness of this advertising, Coupang began to advertise prices that included the one-time coupon as the Wow Member Price. The company particularly obscured the distinction between the Wow Member Price and exclusive discount coupons, making it difficult for consumers to recognize that the advertised prices were based on one-time coupons. For example, advertisements stated 'Discount of 0,000 won with Wow Member Price,' 'Discount with Rocket Wow,' and 'Member-only special prices,' suggesting a separate pricing structure for ongoing discounts. In reality, the Wow Member Price was only applicable when a consumer used the one-time coupon after subscribing to the paid membership. Consumers could not repeatedly purchase products at the same Wow Member Price. Additionally, Coupang presented the discounted prices of general-use coupons as if they were applicable to all products at the Wow Member Price. The Fair Trade Commission determined that Coupang's advertising practices constituted 'deceptive advertising' under the Display and Advertising Act. The commission noted several aggravating factors, including the intent to create a lock-in effect through misleading advertising, the concealment of important information, the prolonged duration of the deceptive practices, and a significant increase in Wow Membership subscriptions following the advertisements. As a result, the commission decided to impose the maximum fine of 500 million won. Lee Young-hee, head of the Fair Trade Commission's Display and Advertising Monitoring Team, stated, "When calculating the relevant sales for imposing the fine, we will consider the sales that were directly or indirectly influenced by the violations. We estimate that approximately 4.5 million Wow members were added during the advertising period." However, she added, "Given the various pathways for joining the Wow Membership, it was challenging to directly quantify the sales. We deemed this a serious violation, leading to the imposition of the maximum fine." The Fair Trade Commission is currently pursuing amendments to the Display and Advertising Act to raise the maximum fine limit, citing that the current cap is insufficient relative to the severity of violations. Lee emphasized, "We will continue to improve the system to ensure that fines correspond to the degree of violations, thereby enhancing deterrence against legal infractions."* This article has been translated by AI. 2026-06-09 12:06:00 -
South Korea Designates First Water Circulation Promotion Zones The South Korean government has designated the cities of Gunsan, Jecheon, and Jeungpyeong in North Chungcheong Province, as well as Cheonan in South Chungcheong Province, as the nation’s first water circulation promotion zones. This initiative aims to address complex water issues exacerbated by climate change, including droughts and floods. The Ministry of Climate Energy and Environment announced on June 9 that it will officially designate these four local governments as water circulation promotion zones on June 10, initiating the establishment of tailored water management systems. This designation marks the first application of the 'Act on Promotion and Support of Water Circulation,' which was enacted in 2023. A total of 13 local governments participated in the application process for this initiative. After a comprehensive evaluation of the project plans based on excellence, implementation capacity, financial equity, and urgency, the final four were selected following a review by the watershed management committee. The selected areas were assessed to have significant vulnerabilities in water management. Gunsan and Cheonan were identified as regions with high vulnerability in water circulation and management assessments. Jecheon and Jeungpyeong have faced recurring river flooding and unstable water supply issues, necessitating prioritized responses. Water circulation promotion zones are designated to comprehensively improve water usage, water-related disasters, and water quality and aquatic ecosystem issues. Following the designation, the ministry will develop a comprehensive water circulation promotion plan, with local governments participating as project implementers to carry out specific initiatives. Key projects will include infrastructure expansion to prevent flooding, establishing a stable water supply system, improving water quality, and restoring river ecosystems. The focus will be on integrating previously separate water supply and drainage systems with river and water resource facilities to enhance local water circulation systems. The ministry plans to form regional consultative bodies to gather opinions from local governments, related agencies, and experts, and to develop detailed execution plans for the water circulation promotion projects. Additionally, discussions will be held to explore institutional improvements and policy support measures. Furthermore, the government intends to begin the comprehensive planning process this month and will collaborate with local governments to refine project details. Jo Hee-song, head of the water management policy office at the ministry, stated, "The designation of water circulation promotion zones is the first step in integrated water management to respond to the climate crisis. We will ensure that projects tailored to local characteristics are implemented smoothly, allowing citizens to enjoy a safer living environment free from floods and droughts."* This article has been translated by AI. 2026-06-09 12:03:00 -
Ministry of Environment: Fish Deaths in Soyang Lake Caused by Low Oxygen and Disease In April, a mass die-off of carp in the upper Soyang Lake in Inje County, Gangwon Province, was found to be caused by a combination of environmental factors, including low dissolved oxygen levels. However, the investigation has sparked controversy regarding the potential impact of upstream pollution sources, such as highland farming and livestock waste.On June 9, the Ministry of Climate, Energy and Environment announced that a detailed investigation by the National Institute of Environmental Research concluded that the fish deaths were not due to specific pollutants but rather the result of multiple environmental factors.The die-off in April led to the suspension of operations at 49 nearby fish farms. To determine the exact cause, the government formed a committee involving relevant agencies, experts, and local fishermen to conduct a thorough investigation.The investigation revealed significant low oxygen levels in the bottom layers of the lake. This was exacerbated by high water levels, elevated temperatures, and low rainfall this spring, which intensified the stratification of the water, preventing adequate mixing and worsening the oxygen deficiency.Additionally, the ministry explained that adult carp, which were already stressed due to spawning, became infected with Aeromonas bacteria present in natural waters, further compromising their health. Most of the dead fish were confirmed to be adult individuals that feed near the lake bottom.In contrast, no external toxic substances, such as heavy metals or pesticides, were detected above acceptable levels, and hydrogen sulfide was found only in trace amounts in the pore water between sediments, not in the water column.However, concerns have been raised that the accumulation of organic matter in the bottom layers contributed to the low oxygen levels, suggesting that fertilizers from highland farms and livestock waste may be fundamental causes.A ministry official stated, "It is true that land use is a major contributor to nutrient runoff in the upper Soyang Lake basin, but there are various sources of discharge, including domestic wastewater and livestock waste. It is difficult to pinpoint a specific cause."The government plans to strengthen management of the upper basin to reduce the influx of organic matter identified as a factor in the low oxygen levels. This includes promoting crop rotation and terraced farming in highland fields, expanding public treatment of livestock waste, and enhancing community-based water quality management initiatives. The removal of sediments in areas with high organic matter concentrations will also be considered.Support for affected fish farms will be expanded. Inje County plans to increase funding for purchasing fishing gear and nets, as well as for the purchase of invasive species. The Korea Water Resources Corporation will assist in establishing infrastructure for resuming fishing activities, including creating spawning grounds for carp.Additionally, the ministry intends to enhance monitoring of dissolved oxygen and redox potential and establish a system to detect low oxygen levels in advance through the operation of water circulation devices.Jo Hee-song, head of the Ministry's Water Management Policy Office, stated, "This die-off was analyzed as a result of low oxygen levels in the bottom layers and various environmental factors, rather than pollution from specific substances. We will implement fundamental measures to manage upstream discharge sources and reduce sedimentary organic matter to prevent similar incidents in the future." 2026-06-09 12:03:00 -
Credit Card Complaints Surge 88% in Three Years Amid International Refund Delays A consumer, identified as A, purchased items from an overseas shopping site that subsequently closed, leaving A without the ordered products. After requesting a cancellation and refund from the credit card company, A was informed that the process could take several months. This delay is due to the requirement for disputes involving international transactions to be reviewed by global brands like Visa and MasterCard, rather than being solely determined by domestic card issuers. Complaints related to credit cards have surged nearly 90% over the past three years. The Financial Supervisory Service (FSS) reported on June 10 that complaints regarding international transaction disputes, alternative card issuance, revolving services, and annual fee refunds have significantly increased. Complaints filed with the FSS rose from 6,720 in 2022 to 12,661 in 2025, marking an 88.4% increase. Consumers facing disputes with overseas shopping sites or suffering from unauthorized use or double charges can file a dispute with their credit card issuer, which will then escalate the issue to the international brand. However, the investigation and compensation process is more stringent for international transactions, typically taking three to five months. To file a dispute, consumers must provide supporting documentation, including links to the closed overseas site, screenshots of advertisements, order details, receipts, and correspondence with the seller. Disputes should generally be filed within 90 to 120 days from the transaction date or receipt date. The FSS advises consumers to utilize services like 'International Use Safety Settings' and 'Card Payment Notifications' available through their card issuer's app or website to prevent potential losses. Consumers should also exercise caution regarding revolving services. This service allows users to pay only a portion of their monthly bill and carry the remaining balance to the next month. While it can temporarily ease payment burdens, high fees apply to the carried-over balance. As of late May, the average fee rate among card issuers ranged from 15.1% to 18.3%. It is important to note that enrollment in revolving services is not mandatory when obtaining a credit card. Prolonged use can lead to accumulating monthly charges, increasing both principal and fees, which may negatively impact credit ratings. The FSS recommends that consumers check their enrollment status through their card issuer's call center, statements, or mobile app, and cancel if they do not wish to use the service. Consumers should also verify the issuance of alternative cards in the event their existing card is discontinued. If a card is phased out upon expiration, the issuer may provide a replacement card after prior notification. Consumers can review the terms and benefits of the new card and can refuse it within 20 days if they do not wish to accept it.* This article has been translated by AI. 2026-06-09 12:03:00 -
KOREATECH Launches First Joint Master's Program with ILO for Digital TVET KOREATECH has announced a new master's program in Technical and Vocational Education and Training (TVET) in collaboration with the International Training Centre of the International Labour Organization (ITCILO) to train professionals in response to the digital economy.The program, titled "Master's in Digital Economy TVET," will commence in January 2027. This marks the first formal degree program established by ITCILO in partnership with overseas higher education institutions, aiming to share the Korean vocational training model and digital education experiences with the international community.The master's program will be conducted over one year, with an initial cohort of 30 students, including five from South Korea. Graduates will receive a Master of Science (M.Sc.) degree from KOREATECH, which will also bear ITCILO's certification.The first round of student applications will be open until June 30. The program will be taught entirely in English and is targeted at vocational training instructors, education administrators, policymakers in labor and employment, and workforce development experts.The curriculum will utilize a hybrid model combining online learning, intensive domestic training, and a capstone project. Participants will study vocational training policies, digital transformation, and labor market changes through ITCILO's digital learning platform before attending in-person training at KOREATECH. They will then engage in projects or practical research focused on vocational training issues in their respective countries.Key topics in the curriculum will include the TVET system and digital transformation, digital pedagogy, labor market information analysis, the use of educational technology, and TVET governance and policy. Notably, the program will incorporate generative artificial intelligence (AI) and machine learning as both educational subjects and practical teaching tools to enhance the applicability of vocational training.In-person training will take place at KOREATECH's campus in Cheonan, South Chungcheong Province. Participants will experience virtual laboratories and simulation-based training environments, as well as visit domestic vocational training institutions and industrial sites to observe the Korean vocational training system firsthand.Through this program, participants will seek to improve their countries' vocational training policies and education systems while developing models for vocational training that respond to digital transformation.KOREATECH President Yoo Gil-sang stated, "Korea has developed a vocational competency development system that closely links industry and education. I hope this program will combine KOREATECH's educational capabilities with ILO's international network to cultivate talents who will lead vocational training innovation in their countries."* This article has been translated by AI. 2026-06-09 12:03:00 -
30th International Consortium on Longevity Kicks Off in Gochang, South Korea The 30th International Consortium on Longevity (ICC) annual conference opens today in Gochang, South Korea. The event will run until June 12 at the Well Park City Hotel, bringing together longevity experts from around the world to discuss strategies for extending healthspan and addressing the challenges of an aging society. The ICC is a global academic network focused on research related to centenarians, aging, longevity, and healthspan. This year’s conference features over 50 scholars from 19 research teams across 13 countries, including the United States, Japan, China, France, Belgium, the Netherlands, Brazil, Australia, and Egypt. Participating research teams include those from New England, Georgia, and Iowa in the U.S., as well as teams from Tokyo and Osaka in Japan, and Beijing, Qingdao, and Hong Kong in China. European researchers from France, Belgium, and the Netherlands will also join, alongside teams from Brazil, Australia, and Egypt to share the latest findings in longevity research. This year’s conference theme is “Extending Healthspan and Transitioning to Next-Generation Healthcare Paradigms.” Discussions will focus on how to not only increase lifespan but also enhance the duration of healthy living without disease, as well as how to tackle the healthcare and welfare issues faced by super-aged societies. Gochang is recognized as a prominent longevity region in South Korea. According to local government data, of the total population of 50,148, 25,255 individuals, or 50.3%, are aged 60 and older. There are 6,927 people aged 80 and above (13.8%), and 1,220 individuals aged 90 and older (2.4%). The area’s well-preserved natural environment and rural community culture have made it a key location for longevity research. The academic program features world-class research presentations. The opening keynote will be delivered by Yousin Suh, a leading authority in women's longevity research from Columbia University. She will discuss the “New Concept of Longevity,” outlining recent trends and future directions in longevity studies. Following her, French demographer Jean-Marie Robine will present research analyzing global longevity trends and the changes associated with super-aged societies. The Georgia research team from the U.S. will introduce a study examining the impact of environmental and caregiving systems on the lives of centenarians. Japanese researchers will present findings from a long-term study tracking individuals aged 105 and older in one of the world’s longest-lived countries. One of the key presentations will be from the Korean Centenarian Research Team, which began in 2001 at Seoul National University and has been continued by Chonnam National University since 2018. Over the past 25 years, the team has accumulated extensive data analyzing the genetic traits, disease patterns, lifestyle habits, and social environments of centenarians in South Korea. They have particularly focused on the “Gugoksundam Longevity Belt,” which connects regions in Jeollanam-do, to analyze local longevity characteristics. The research team has also highlighted findings indicating that the average lifespan of Hansen's disease patients on Sorokdo Island is higher than that of the general population, suggesting new possibilities in longevity research. They are analyzing various factors contributing to longevity and the potential for extending healthspan among Koreans. During the conference, the team will also discuss how lifestyle, community culture, and dietary habits among the elderly in Korea influence longevity. Research results will be shared on how family-centered community culture and social ties, along with historical changes in Korean society, have impacted health in old age. Additionally, findings on the dietary culture centered around fermented foods like kimchi, doenjang, gochujang, and cheonggukjang, as well as vegetable-based diets, will be presented, exploring the relationship between traditional Korean diets and healthspan. Park Sang-cheol, Vice President of Genosis AI Healthcare, will serve as the ICC advisory chair, while Park Kwang-sung, head of the Korean Centenarian Research Team at Chonnam National University Hospital, will chair the conference, with Yoon Kyung-cheol, a professor at the same hospital, acting as the organizing committee chair. Park Sang-cheol stated, “The life and longevity research data of Korean centenarians can serve as important reference material for countries that will experience super-aged societies first. We hope this ICC annual conference will further expand global collaboration in longevity research.” The significance of this conference lies in the fact that longevity research has emerged as a crucial task in responding to the challenges of super-aged societies. South Korea entered a super-aged society in late 2024, when the proportion of the population aged 65 and older surpassed 20%. While life expectancy continues to rise, concerns remain that healthspan, or the period of life lived without disease or disability, is not keeping pace. Consequently, longevity medicine is increasingly recognized as a key area for enhancing quality of life in old age and reducing healthcare costs. For the past 30 years, the ICC has served as a leading international academic platform connecting centenarian research from various countries. Researchers have compared and analyzed the impacts of genetic traits, living environments, dietary cultures, and social relationships on longevity, accumulating scientific evidence in the field. This year’s 30th conference not only reflects on past research achievements but also seeks to explore next-generation longevity research directions incorporating artificial intelligence and precision medicine technologies. South Korea is noted as one of the countries experiencing the fastest aging rates globally. As a result, the centenarian research data accumulated by domestic researchers is garnering international attention. The Korean Centenarian Research Team has built a substantial database over the past two decades, analyzing genetic traits, lifestyle habits, and socio-environmental factors among centenarians. Academics believe these research findings could inform future global aging response policies and strategies for extending healthspan. Experts anticipate that this conference will serve as a platform for international collaboration to seek solutions to the challenges posed by super-aged societies. As the reality of a 100-year life expectancy approaches, there is growing interest in the healthy aging and longevity strategies, as well as the future directions of medical technology proposed by researchers from around the world. Meanwhile, Genosis AI Healthcare plans to continue advancing its precision medicine initiatives, including research on Human Digital Twins (HDT) and the development of AI-based medical technologies, leveraging this conference as a catalyst.* This article has been translated by AI. 2026-06-09 11:57:00 -
Korea's Q1 GDP strongest in more than 5 yrs, nominal growth 50-yr high *Updated with additional data, comments, and market response SEOUL, June 09 (AJP) - South Korea's economy turned out strongest three-month performance in more than five years in the quarter ended March with nominal growth at a 50-year high, according to the finalized first-quarter figure, but the bigger surprise came from income — up record 9.2 percent — as booming chip prices amplified the gains from the AI-driven semiconductor boom. Real gross domestic product expanded 1.8 percent from the previous quarter in the January-March period, according to the Bank of Korea on Tuesday. Real gross national income, a broader measure of purchasing power, jumped 9.2 percent over the same period, more than five times the pace of GDP growth and the strongest on record. The data further underlined how the global race to build artificial intelligence infrastructure is reshaping South Korea's economy, with soaring semiconductor prices boosting national income far faster than production itself. The economy grew 3.8 percent from a year earlier, up from a preliminary estimate of 3.6 percent released in April and marking the fastest annual expansion since the first quarter of 2021. The quarterly growth rate was the strongest since the third quarter of 2020, when the economy expanded 2.3 percent. The upward revision reflected newly available data for the final month of the quarter, which showed stronger facilities investment and private consumption than initially estimated. Facilities investment was revised upward by 1.8 percentage points from the advance estimate, while private consumption was raised by 0.1 percentage point. The gap between GDP and GNI reflected improved terms of trade and rising income earned abroad. Real net factor income from overseas climbed to 11.6 trillion won ($7.56 billion) in the first quarter from 8.2 trillion won in the previous quarter, while higher semiconductor export prices boosted the purchasing power of income generated from the same volume of exports. A key factor behind the surge was real gross domestic income (GDI), which measures the real purchasing power generated from domestic production. While GDP shows how much the economy produced, GDI shows how much real income that production created after changes in export and import prices. Real GDI rose 8.7 percent on quarter and 13.2 percent from a year earlier. "Real GDP shows the volume of goods and services produced by a country, while real GDI shows the real purchasing power of income," Kim Hwa-yong, director general of the BOK's national accounts department, said during a briefing. "Even if the same volume is exported, higher export prices and lower import prices increase the resources available for consumption and investment." Kim compared the economy to a semiconductor company. "GDP would show how many chips were produced, while GDI would reflect how much income was actually earned from selling them," he said. He added that higher export prices and lower raw material costs would push up real GDI. The strong data supported the Korean capital markets after suffering one of the worst Black Monday sessions. Yields on both the three-year and 10-year government bonds fell more than 4 basis points in morning trading, while the benchmark KOSPI rose more than 3 percent. The U.S. dollar, which had climbed above 1,550 won, retreated sharply to 1,516.70 won. Korea's broad economic performance in the first quarter was literally defined by semiconductors. The central bank said information and communications technology industries contributed a record 19.9 percent of overall economic growth during the quarter, fueled by surging demand for AI-related chips and related investment. Manufacturing output rose 3.9 percent from the previous quarter, led by computers, electronics and optical products. Production of computers, electronics and optical products jumped 12.5 percent, while ICT manufacturing surged 15.4 percent. In contrast, non-ICT manufacturing contracted 0.9 percent, highlighting the widening gap between semiconductor-related industries and the rest of the economy. The divergence points to an increasingly uneven recovery in which a handful of AI-linked industries are driving growth while broader manufacturing remains comparatively subdued. Exports rose 5.9 percent from the previous quarter, led by semiconductors and other IT products, while imports increased 3.9 percent on stronger purchases of machinery, equipment and automobiles. Facilities investment jumped 6.6 percent, reversing a decline in the previous quarter as companies stepped up spending on machinery and transportation equipment. Private consumption rose 0.6 percent as spending increased on both goods and services, including clothing and finance-related services. Construction investment increased 1.4 percent, snapping a prolonged downturn as both building construction and civil engineering projects improved. Construction output itself rose 2.2 percent from the previous quarter, the first meaningful rebound after a string of quarterly declines, although the sector remained 3.9 percent smaller than a year earlier. Government consumption fell 0.4 percent, mainly due to lower health insurance benefit payments. On the production side, services expanded a modest 0.6 percent, supported by wholesale and retail trade, accommodation and food services, and finance and insurance. Financial and insurance activities rose 2.4 percent, reflecting strength in financial investment institutions and related services, while transport and information and communications services contracted. The semiconductor boom also generated a sharp increase in corporate earnings. Nominal GDP expanded 10.5 percent from the previous quarter and 17.1 percent from a year earlier, while nominal GNI increased 11.0 percent quarter-on-quarter and 17.1 percent year-on-year. Employee compensation rose 4.0 percent from the previous quarter, but total operating surplus, a broad measure of corporate profits, surged 17.0 percent, indicating that much of the windfall accrued to companies rather than households. The GDP deflator climbed 12.9 percent from a year earlier. Kim cautioned against interpreting the surge in nominal GDP as a sign of runaway inflation. "The expansion in nominal GDP growth was not due to a surge in domestic prices, but was driven by higher export prices centered on semiconductors," Kim said. "It is different in nature from the periods in the 1970s and 1980s, when nominal growth rose because of cost-push inflation." The income surge also transformed the nation's saving and investment profile. Korea's gross saving rate rose to 41.7 percent in the first quarter from 36.0 percent in the previous quarter, while the gross domestic investment ratio fell to 25.3 percent from 28.2 percent. The household net saving rate, however, slipped to 8.8 percent from 9.1 percent, as high interest rates and a weaker won reduced room for savings. 2026-06-09 11:55:26 -
Capital Group Increases Stake in KT&G from 5.6% to 7.2% The American asset management firm Capital Group has significantly increased its stake in KT&G. The surge in the overseas cigarette business and the anticipated strong shareholder return policy in the second half of the year are believed to have attracted the interest of global investors. According to a disclosure on June 9 from the Financial Supervisory Service, Capital Group now holds over 7.49 million shares of KT&G, raising its ownership stake to 7.21% of the total issued shares. With assets under management totaling $3.3 trillion, Capital Group is recognized as a leading global asset management firm with a strong inclination toward long-term investments. The expansion of this global investor's stake is attributed to KT&G's solid performance. In the first quarter, KT&G reported consolidated revenues of 1.7036 trillion won and operating profit of 364.5 billion won, marking increases of 14.3% and 27.6%, respectively, compared to the same period last year. The tobacco division generated revenues of 1.1559 trillion won, a 17% increase, while operating profit rose by 27.2% to 321.6 billion won. The overseas cigarette business saw uniform growth in sales across key regions, including Asia-Pacific and Eurasia. First-quarter revenues reached 559.6 billion won, a 24.6% increase year-on-year, setting a new quarterly record. With cost and administrative expense reductions contributing to a 56.1% surge in operating profit, KT&G achieved a "triple growth" in revenue, operating profit, and sales volume simultaneously. KT&G plans to announce a new shareholder return policy focused on enhancing dividends in the second half of the year, driven by qualitative growth led by its global business. A KT&G official stated, "Following BlackRock, the continued acquisition of shares by long-term investment-oriented global asset management firms like Capital Group recognizes the company's fundamental competitiveness. We aim to establish a virtuous cycle of profit growth and shareholder returns centered on our global business to enhance shareholder value."* This article has been translated by AI. 2026-06-09 11:51:00