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Majority of South Koreans distrust national pension system, survey finds SEOUL, November 05 (AJP) - More South Koreans say they distrust the national pension system than those who express confidence in it, according to a new survey highlighting deepening public skepticism toward the country’s social safety net. The poll, commissioned by the Korea Employers Federation and conducted by Mono Research, found that 55.7 percent of respondents do not trust the national pension system, compared with 44.3 percent who said they do. Distrust was most prevalent among workplace subscribers — those enrolled through their employers — with 57.8 percent expressing skepticism. Among regional subscribers, who pay independently, 51.8 percent said they did not trust the system. In contrast, 56.1 percent of voluntary subscribers, typically those more motivated to join, expressed trust in the pension. Generational differences were stark: respondents over 50 were more likely to trust the pension system, while younger adults in their 20s through 40s were significantly more doubtful. When asked about the burden of pension premiums, nearly seven in 10 respondents (69.7 percent) said they found the payments burdensome. Workplace subscribers, who split premiums with their employers, reported higher levels of strain (72.9 percent) than regional subscribers (62.2 percent), whose lower reported income and contributions may ease the perceived burden. As of late 2024, the average monthly premium stood at 306,985 won ($219) for workplace subscribers and 79,886 won for regional subscribers. Public sentiment also turned sharply negative toward the government’s recent pension reforms. Following an April amendment to the National Pension Act — which will raise contribution rates by 0.5 percentage points annually to 13 percent by 2026 — 73.4 percent of respondents viewed the changes unfavorably, while only 19.7 percent expressed support. Concerns about the system’s long-term sustainability were widespread. More than 80 percent of respondents said they worried that raising the income replacement rate to 43 percent by 2026 would expand benefits without addressing the pension fund’s looming fiscal shortfall. When asked what should be the top priority for pension reform, 30.7 percent of respondents cited ensuring the fund’s financial sustainability, followed by 27.6 percent who pointed to intergenerational fairness, and 18.4 percent who emphasized securing adequate retirement income. “Public trust is essential to any successful pension reform,” said Lee Dong-geun, executive vice chairman of the Korea Employers Federation. “It’s more important to assure people that they will receive benefits proportional to their contributions than to simply increase the payout rate.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-05 15:29:51 -
BOK governor to attend BIS meeting, Singapore fintech forum SEOUL, November 05 (AJP) - Bank of Korea Governor Lee Chang-yong will travel to Basel, Switzerland, on Thursday to attend a meeting of the Bank for International Settlements (BIS) governors. During his visit, Lee will join discussions with fellow central bankers on the global economy and financial markets. As a BIS director, he will also take part in meetings of the board and the Economic Consultative Committee. In his capacity as chair of the Committee on the Global Financial System, he is expected to lead talks on international financial stability and policy coordination. Following the meetings in Basel, Lee will head to Singapore to participate in the 10th Singapore FinTech Festival, one of the world’s largest gatherings for financial technology. Scheduled to speak on a panel, he plans to present the Bank of Korea’s digital currency project, and discuss the evolving role of central bank digital currencies in the global financial landscape. The festival, to be held from Nov. 12 to 14 at the Singapore Expo, will bring together central bank governors, policymakers, and executives from leading financial and fintech companies. Lee plans to return to Seoul on Nov. 13. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-05 15:16:02 -
KRW falls to weakest in 7 mo as forex data implies limited room for Seoul to defend currency SEOUL, November 05 (AJP) - The South Korean won’s recovery — fueled by the Korea-U.S. trade deal during APEC week and a bullish stock market — proved short-lived as the U.S. dollar climbed to a seven-month high amid renewed concerns over frothy AI-related stocks. The dollar hit 1,446.3 won on Wednesday, its strongest level since April, as foreign investors dumped more than 2 trillion won worth of KOSPI shares as of 2:00 p.m., dragging the benchmark index down more than 3 percent. While the heavy foreign profit-taking reflects the KOSPI’s staggering 70 percent gain so far this year, the upward pressure on the dollar-won exchange rate is largely driven by external factors — leaving Seoul with limited policy options. According to central bank data released Wednesday, South Korea’s foreign reserves stood at $429 billion at the end of October, up $6.8 billion from the previous month. It marked the sixth straight monthly increase and the highest level in 21 months, occurring despite verbal interventions aimed at curbing excessive bias toward a weaker won. The rise in reserves suggests authorities have refrained from deploying significant firepower to defend the currency. Foreign currency deposits increased $7.4 billion to $25.9 billion, supported by robust export performance. Exports in October climbed 3.6 percent year-on-year to a record $59.6 billion, with the cumulative trade surplus already surpassing last year’s total — a factor likely boosting foreign-currency deposits. Improved investment returns at domestic pension funds and financial institutions also contributed. The National Pension Service’s Investment Management Division reported an 8.6 percent return on its overseas equity portfolio — including major U.S. stock market holdings — from January through August. Globally, South Korea moved up one notch to ninth place in foreign-reserve rankings, overtaking Hong Kong, whose holdings fell by about $2.5 billion in October. Despite strong exports and a buoyant stock market, the won has remained weak after briefly strengthening to 1,430 per dollar following Seoul and Washington’s final agreement on payment terms for Korea’s $350 billion investment package last week. The dollar, which averaged 1,453.39 won in January, had eased to 1,364.66 won in June before rebounding to a monthly average of 1,431.17 won as of Nov. 4. According to Park Sang-hyun, researcher at iM Securities, the pressure largely reflects a renewed risk-off mood. “The chance of another rate cut at the January 2026 FOMC meeting is diminishing,” Park said. “Concerns over the financial instability of U.S. regional banks and the prolonged federal government shutdown have restricted liquidity flows, pushing the dollar higher.” Park added that the U.S. Supreme Court’s review of the cross-tariff legality case has further supported the dollar. The court began hearings Wednesday on a lawsuit filed by Democratic-led states and small-business associations challenging the legality of the mutual tariff framework. A ruling against the policy could invalidate the bilateral tariff agreement, dimming prospects for future rate cuts and bolstering the dollar’s strength. The launch of Prime Minister Takaichi Sanae’s new cabinet in Japan — which reaffirmed a policy stance favoring a weaker yen — also weighed on the won-yen pair. Since South Korea and Japan compete directly in key export markets and product categories, Seoul has little choice but to partially align its monetary stance with Tokyo’s to maintain competitiveness. 2025-11-05 14:47:42 -
Crowds flock to Gyeongju museum after APEC summit SEOUL, November 5 (AJP) - A couple of exhibition rooms and halls at the Gyeongju National Museum, which were used as the main venues for last week's Asia-Pacific Economic Cooperation (APEC) summit in the southeastern city, are set to open for general admission, starting this week. Capitalizing on the momentum from the city's successful hosting of the multilateral gathering, the museum is running a special exhibition from Thursday through the end of next month, featuring the actual tables where global leaders met, official diplomatic protocol items, and memorabilia from various sideline meetings and events. Visitors will be allowed to tour the summit's various venues including those where President Lee Jae Myung met with U.S. President Donald Trump and Chinese President Xi Jinping. They can also take photos at several photo zones set up throughout the museum. Located in the heart of the city, once the capital of the ancient kingdom of Silla that flourished for over 1,000 years, the museum is known for its rich collection of artifacts and other relics of historical and cultural significance. "We are pleased to present this special exhibition, offering visitors an immersive journey into the spaces and atmosphere of the recently concluded summit," said the museum's director Yoon Sang-deok, expressing his excitement. Meanwhile, another exhibition there showcasing ornate, gold-plated ancient crowns has become a hit after news spread that a replica was among the lavish gifts given to Trump during his visit. Swamped with hordes of visitors, the museum has capped daily admissions at 2,250, allowing only 150 people per session. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-05 14:17:11 -
Bear returns to the Asian market on AI bubble concerns SEOUL, November 05 (AJP) - Asian stocks slumped Wednesday as a wave of bearish sentiment swept through regional markets. South Korea’s benchmark KOSPI index plunged 4.1 percent to 3,950.96, falling back below the 4,000 mark just seven trading days after breaking it for the first time in history. The small-cap KOSDAQ tumbled even further, down 4.4 percent to 886.00. The downturn was led by heavyweight chipmakers. Samsung Electronics dropped 5.5 percent to 99,100 won ($68), while SK Hynix sank 7 percent to 545,000 won. Foreign investors sold a net 212.1 billion won worth of shares, while retail investors — who had bought more than 2 trillion won the previous session — continued to purchase stocks, adding 102 billion won, offering only limited support to the market. Analysts attributed the rout to overnight weakness on Wall Street, where concerns about stretched valuations in artificial intelligence stocks triggered a broad sell-off. The Dow Jones Industrial Average, S&P 500 and Nasdaq all retreated on Tuesday, while AI beneficiary Palantir plunged 7.9 percent amid warnings it had become overvalued. Adding to the pressure, reports emerged that Michael Burry — the investor famed for profiting from the 2008 subprime mortgage collapse — had placed bets against Palantir and Nvidia, two of the most high-profile names in the AI rally. Lee Kyung-min, an analyst at Daishin Securities, said that while the long-term outlook for Korea’s leading growth stocks remains strong, short-term corrections are becoming increasingly likely. “The market may test lower levels around 3,700 on the KOSPI, corresponding to a forward price-to-earnings ratio of about 10.3 times,” he noted. Japan’s Nikkei 225 also declined, falling 2.4 percent to 50,238.38, tracking losses in Seoul. CNBC reported that the slump in Asian equities followed warnings from Goldman Sachs and Morgan Stanley urging investors to brace for a market pullback over the next two years. “It’s likely there’ll be a 10 to 20 percent drawdown in equity markets sometime in the next 12 to 24 months,” Goldman Sachs chief executive David Solomon said at the Global Financial Leaders’ Investment Summit in Hong Kong. “Such pullbacks happen even in positive market cycles — they don’t rewrite fundamental convictions about capital allocation.” Morgan Stanley CEO Ted Pick, speaking on the same panel, echoed the view. “We should welcome the possibility of 10 to 15 percent drawdowns that are not driven by a macro cliff effect,” he said, calling them “healthy developments rather than signs of crisis.” The Shanghai Composite Index fell 0.6 percent to 3,936.53, while Hong Kong’s Hang Seng Index dropped 1.2 percent to 25,655.06. Taiwan’s TAIEX also declined 1.9 percent to 27,592.06. 2025-11-05 11:32:45 -
BMW overtakes Tesla as top-selling imported car brand in South Korea SEOUL, November 05 (AJP) - BMW has overtaken Tesla to become South Korea’s best-selling imported car brand, as demand for foreign-made vehicles continued to rise this year despite a slowdown in October sales. According to data released Wednesday by the Korea Automobile Importers & Distributors Association (KAIDA), registrations of new imported passenger cars totaled 24,064 in October, up 13.2 percent from a year earlier. The figure, however, marked a 26.7 percent decline from September’s 32,834 units, a drop attributed largely to fewer business days due to the long Chuseok holiday period. Cumulative sales from January through October reached 249,412 vehicles, a 15.5 percent increase from the same period last year. BMW led the pack with 6,177 units sold in October, followed by Mercedes-Benz with 5,838 and Tesla with 4,350. The top 10 brands also included Volvo, Lexus, BYD, Toyota, Audi, Mini, and Porsche — underscoring the continued dominance of European automakers in the market. The Tesla Model Y Long Range was October’s best-selling individual model, with 2,424 units sold, trailed by the Mercedes-Benz E 200 and the BMW 520. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-05 11:10:55 -
PHOTOS: Dried persimmons from Sangju — taste of centuries SEOUL, November 05 (AJP) - Late autumn transforms Sangju in North Gyeongsang Province into a spectacle of vivid orange. This is the season when the autumn sun-kissed persimmons are harvested and processed into the region’s renowned specialty: Gotgam, or dried persimmons. Sangju is traditionally famed for persimmons, rice and silk. While modern crops like grapes and cucumbers have joined its list of specialties, it is the gotgam that defines the region. Sangju's dried persimmons are particularly prized for their exceptionally high sugar content and soft, tender flesh. This superior quality is no accident; the region boasts the perfect climate, characterized by warm, sunny autumn days and crisp, cool evenings — ideal conditions for the slow, meticulous drying process. The prestige of Sangju Gotgam stretches back centuries. Historical records from the Joseon Dynasty attest to its excellence, noting its designation as an official tribute item presented to the king. Today, the tradition continues on a massive scale. Sangju is proudly the world's largest producer of dried persimmons, with an annual output of approximately 7,500 tons. The region accounts for more than 60 percent of South Korea's total national production. Stepping into a processing facility is an unforgettable travel experience. The air is thick with the sweet, earthy scent of fresh fruit. Persimmons, glowing a vibrant orange, cascade from machines into sorting areas. Workers swiftly peel the fruit and then string the pale spheres onto skewers. From there, the magic begins: the strung persimmons are carefully hung, filling vast, three-story warehouses from floor to ceiling in what appears to be a gigantic, edible curtain. The transformation takes patience. For about 50 to 60 days, the persimmons undergo a natural drying process in the cool, circulating air. This slow method is key to preventing spoilage and maximizing longevity, yielding the chewy, sugar-dusted treat that has delighted Koreans for generations. As global interest in hansik (Korean cuisine) and its traditional foods surges — demonstrated by the global recognition of Korean food practices and the inclusion of persimmons in high-profile events like the APEC summit — Sangju Gotgam stands ready for its moment in the international spotlight. It's a testament to the community's commitment to preserving a time-honored tradition while embracing a global future. For travelers seeking a taste of Korean history, culture, and nature, a visit to Sangju in late fall offers a truly golden experience. 2025-11-05 10:49:58 -
INTERVIEW: Korean biz at home and abroad must unite to leverage and lengthen K-power:OKTA chair SEOUL, November 05 (AJP) -An economic bloc representing 50 million South Koreans and 7.5 million ethnic Koreans overseas — built on a self-sustaining trade and supply-chain network that links the manufacturing base at home with capital and distribution capabilities abroad — is the vision of the World Federation of Overseas Korean Economic and Trade Association (World-OKTA), its chair said. Korean entrepreneurs at home and abroad have risen to global prominence and must now “build a system where exports and imports co-exist,” creating a firmer foundation for the next generation of business leaders to grow under “one Korean identity,” said Park Jongbum. Park, recently re-appointed to lead the organization for a second term — the first back-to-back leadership in its 44-year history — oversees 155 overseas chapters run by more than 7,000 ethnic Korean entrepreneurs across 75 countries. To unite Korea’s domestic and overseas business assets, Park is championing a bill that would grant World-OKTA legal status as Korea’s seventh official business association — a long-pursued agenda he says is crucial to elevating the organization’s role. “It is not easy, as it would mean providing government-level support to businesses based overseas,” he said. “But a unified Korean business network is essential to withstand global headwinds such as supply-chain disruptions.” Park stressed that Korean SMEs continue to face major hurdles in entering foreign markets. “This is a challenging global environment. Koreans at home and abroad must widen cooperation through consistent, physical exchanges and communication,” he said. That urgency, he added, was reflected in the scale of last month’s expo in Incheon. The 2025 Korea Business Expo Incheon, held Oct. 27–29 in Songdo, brought together more than 1,100 members from 58 countries, 150 buyers from 21 countries, and 434 Korea-based companies. The event generated 3,809 business meetings involving projects valued at $228 million. Park underscored the symbolic significance of Incheon as the gateway of Korean migration. “Korean migration began in Incheon in 1902, when 120 people boarded a ship to Hawaii to work in sugar cane fields. Now, 123 years later, their descendants are returning to Incheon to buy Korean products. This is the second wave of Korean migration,” he said. Of World-OKTA’s roughly 7,000 members, about half are under the age of 39. These young entrepreneurs, Park noted, have built strong networks with youth-led Korean startups and actively share insights, experiences, and pride in Korean identity. Around 100 young business founders were invited to showcase their ideas, innovations, and products during a weeklong startup program held alongside the Songdo expo, giving them first-hand experience pitching to potential buyers and investors. While early-stage funding remains modest — $500,000 for one startup and $150,000 for another — Park believes opportunities will broaden as exchanges deepen and K-power rises globally. “K has become synonymous with a legacy brand,” he said. “We now attach ‘K’ to everything — K-defense, K-shipping, K-steel, K-chip, and of course K-food and K-content. Global familiarity with Korean products and culture has expanded, and it is the role of Korean businesses to keep that glow alive.” 2025-11-05 10:47:01 -
North Korea likely to pursue talks with US early next year, spy agency speculates SEOUL, November 5 (AJP) - North Korea will likely respond to U.S. President Donald Trump's repeated overtures after all, South Korea's spy agency believes. According to lawmakers who were briefed in a closed-door parliamentary audit at the National Intelligence Service (NIS)'s headquarters in southern Seoul on Tuesday, Pyongyang is expected to "pursue dialogue" with Washington sometime in March next year when South Korea conducts its annual joint military exercise with the U.S. But the NIS later clarified that it did not predict a summit at that time. It instead speculated that a turning point for the talks could come in March, coinciding with the exercise, as North Korea may want to leverage its close ties with Russia and improved relations with its traditional ally of China. Backing up this assessment, the NIS said it detected several signs that North Korean leader Kim Jong-un had been preparing for a meeting with Trump until the last minute just ahead of last week's Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, although their much-anticipated first rendezvous since Trump's inauguration for his second term did not ultimately materialize. Trump had repeatedly expressed his desire to meet Kim during his trip to South Korea on the sidelines of the multilateral gathering, but Kim remained silent, and Trump's overtures were met only with a couple of missile launches. "North Korea stressed its close relationship with Trump, suggesting that it considered a summit until the very last moment and may pursue talks later once conditions are met," said Park Sun-won of the ruling Democratic Party (DP), quoting the NIS. "Evidence obtained through various channels and sources suggests that North Korea had apparently been preparing for talks with the U.S. behind the scenes," added Lee Seong-kweun of the main opposition People Power Party (PPP). Since late September, North Korea has deliberately refrained from claiming its "nuclear power" status, a shift in its rhetoric and stance, while hinting at an intention to engage in talks with the U.S., provided that denuclearization is not included on the agenda, according to the NIS. Pyongyang has also been gathering intelligence on senior officials and other key figures involved in North Korean affairs in Washington, another signal of possible talks, although it still remains to be seen. Trump met Kim three times during his first term -- their historic first meeting in Singapore in June 2018, a second summit in Hanoi in February 2019 that ended in failure, and a brief, largely symbolic meeting at the border truce village of Panmunjom four months later. Since then, Trump has claimed on several occasions that he maintains a "good relationship" with Kim. 2025-11-05 10:16:08 -
South Korean, Japanese firms consider joint venture for next-generation chip materials SEOUL, November 05 (AJP) - Samsung Electro-Mechanics said on Wednesday that it had signed a memorandum of understanding with Japan’s Sumitomo Chemical Group to explore establishing a joint venture for producing glass cores, a key component in next-generation semiconductor packages. The agreement comes as they are seeking to strengthen their foothold in the fast-evolving semiconductor packaging industry, where new materials are increasingly critical to supporting artificial intelligence and high-performance computing. Glass cores are viewed as a breakthrough material for next-generation chips. Unlike conventional organic substrates, they offer superior flatness and lower thermal expansion, allowing for more densely packed circuits and improved performance in large-area semiconductor packages. Under the agreement, Samsung Electro-Mechanics, Sumitomo Chemical, and Dongwoo Fine-Chem — a Korean materials affiliate of Sumitomo — plan to combine their respective expertise and global networks to accelerate the development and commercialization of glass-core technologies. Samsung Electro-Mechanics will hold a majority stake in the proposed venture, with Sumitomo Chemical as a key investor. The companies said they plan to finalize share structures, business timelines, and a corporate name by next year. The joint venture’s headquarters and initial production site will be located at Dongwoo Fine-Chem’s facility in Pyeongtaek, south of Seoul. “Glass cores are a game-changer for the future substrate market,” said Jang Deok-hyun, president of Samsung Electro-Mechanics, in a statement. “This agreement brings together the cutting-edge capabilities of the three companies and lays the groundwork for new growth in advanced semiconductor packaging.” Sumitomo Chemical Chairman Keiichi Iwata said the partnership would “create significant synergy in the advanced semiconductor post-processing sector” and help build a “long-term strategic alliance.” Samsung Electro-Mechanics is currently producing glass package substrate prototypes at its Sejong facility and expects full-scale production through the new venture to begin after 2027. * This article, published by Economic Daily, was translated by AI and edited by AJP. 2025-11-05 10:05:40