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Seoul to gradually phase out fuel tax relief by year-end SEOUL, October 22 (AJP) -South Korea will begin winding down the fuel tax relief that has been in place since the post-pandemic inflation surge, the Ministry of Economy and Finance said Wednesday. The measure, which had been scheduled to expire at the end of October, will be extended through the end of the year — though at reduced rates — to “avoid overburdening consumers,” the ministry said in a statement. Starting November, the gasoline tax cut will be lowered from 10 percent to 7 percent, while the diesel and LPG butane cuts will drop from 15 percent to 10 percent. The revised rates translate into tax savings of 57 won per liter for gasoline, 58 won for diesel, and 20 won for LPG butane — meaning consumers will see price increases of roughly 25 won, 29 won, and 10 won per liter, respectively. The government has maintained the fuel tax cuts since late 2021 to mitigate inflationary pressures and support household spending amid sluggish economic recovery. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-22 10:18:56 -
OPINION: As aging deepens, South Korea confronts growing consumption slowdown SEOUL, October 22 (AJP) - South Korea’s economy expanded modestly in the second quarter, with gross domestic product rising 0.6 percent from a year earlier, reflecting persistent weaknesses in consumer spending that threaten to slow long-term growth. According to government data, private consumption increased 0.9 percent from a year earlier, while government spending rose 2.6 percent. Construction investment plunged 11.4 percent, offset by a 3.4 percent gain in facility investment and a 4.5 percent increase in exports. But beneath those headline figures lies a troubling trend: households are spending less of their income than they once did. Household consumption, which accounted for 49.3 percent of GDP in 2014, fell to 46.4 percent by 2024 — a sign that consumers are tightening their belts even as the economy grows. Economists attribute the shift to rising non-consumption expenses such as taxes, housing costs, and social insurance contributions. A report by the Korea Chamber of Commerce and Industry found that the nation’s overall consumption propensity — the share of income spent rather than saved — dropped from 73.6 percent in 2014 to 70.3 percent in 2024. The decline has been sharpest among older adults. For people in their 60s, the figure fell from 69.3 percent to 62.4 percent, reflecting the steep fall in income many experience after retirement. Public pensions, experts note, rarely compensate for that loss. The gap between rich and poor households also reveals divergent spending behavior. In 2025, the lowest 20 percent of income earners spent 128.1 percent of their income, often by taking on debt, while the wealthiest 20 percent spent just 59.8 percent. Economists say this suggests that the rich are increasingly saving or spending on luxury goods abroad — a pattern that offers little boost to domestic demand. Over the past decade, South Koreans have shifted their spending toward health care, housing, and leisure, while cutting back on food, clothing, and education. The aging of the population, economists warn, will continue to dampen consumption. The Bank of Korea has noted that demographic shifts are weighing on household income and spending alike. Even in categories that have grown — such as entertainment and dining — much of the spending occurs overseas. South Korea recorded a $10 billion tourism deficit in 2024. Japan faces similar challenges, while in Europe and the United States, older adults tend to spend more freely. Cultural factors play a role: many South Korean seniors prioritize saving for their children or leaving an inheritance over enjoying their own retirement years. Government initiatives to encourage spending among the elderly have yielded limited results. Economists argue that what’s needed is not only policy change but also a shift in social attitudes — one that emphasizes the value of spending in the present rather than saving exclusively for the next generation. Yet such a shift runs up against another national concern: maintaining enough savings to sustain growth in an aging society. About the author -Ph.D. in Economics from Sungkyunkwan University -Former President of the Korea Institute for Health and Social Affairs -Former President of the Korean Economic Association -Former President of the Korean Fiscal Policy Association * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-22 10:17:40 -
Trade officials head to Washington again for follow-up talks SEOUL, October 22 (AJP) - Senior government and trade officials headed back to Washington again on Wednesday, seeking to finalize prolonged tariff negotiations with the U.S. Trade Minister Kim Jung-kwan and presidential policy chief Kim Yong-beom, who returned from their U.S. trip earlier this week, are expected to meet their counterparts there for follow-up discussions, raising hopes that a breakthrough in the talks could be imminent. The two have already hinted that "progress" has been made on most issues, though some areas still require further adjustments. With U.S. President Donald Trump's upcoming visit to South Korea for the Asia-Pacific Economic Cooperation (APEC) summit in the country's historic city of Gyeongju next week, expectations are building that the two countries could finally resolve several contentious issues including how to fund a US$350 billion investment in the U.S., part of the deal reached last July to lower reciprocal tariffs from 25 percent to 15 percent. Some also speculate that revisions to the bilateral nuclear agreement, which currently prevents Seoul from reprocessing its spent nuclear fuel, could be made in response to North Korea's growing nuclear arsenal, while others suggest the possible opening of South Korea's agricultural market instead amid U.S. demands for increased imports of soybeans, following China's recent suspension. 2025-10-22 10:06:42 -
HUNTR/X trio and Saja Boys to come alive in Barbie forms, feature in Monopoly SEOUL, October 22 (AJP) -Netflix has partnered with global toy giants Mattel and Hasbro to turn its blockbuster K-Pop Demon Hunters into a full-fledged franchise spanning dolls, board games, and collectibles — marking a major step in the platform’s transformation into a creator of global intellectual properties. Under the new licensing deal, Mattel, famed for Barbie, and Hasbro, the maker of Monopoly, will roll out a wide range of products inspired by the hit anime. “The combined partnerships will introduce a full portfolio of toys, collectibles, games, and role-play products that allow fans of all ages to immerse themselves in the characters, music, and world of the film in new and fun ways,” Netflix said in a statement. The beloved HUNTR/X trio — Rumi, Mira, and Zoey — will debut next year as Barbie-style dolls, action figures, and game characters, with preorders opening in November. Meanwhile, Hasbro will launch “Monopoly Deal: K-Pop Demon Hunters,” available for preorder through major U.S. retailers including Amazon, Target, and Walmart. The collaboration between Mattel and Hasbro — fierce rivals and the two largest toy makers in the world — is rare, highlighting the market power of the K-Pop Demon Hunters franchise and its ability to bridge industries. The deal also underscores Netflix’s strategic evolution from streaming platform to an expansive entertainment ecosystem. With K-Pop Demon Hunters as a cornerstone, Netflix is building its own “IP universe” — spanning films, games, merchandise, and potentially theme parks — aiming to make its original creations a lasting part of fans’ daily lives. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-22 09:55:20 -
North Korea fires multiple short-range missiles ahead of APEC summit SEOUL, October 22 (AJP) - North Korea fired multiple short-range ballistic missiles on Wednesday, according to military authorities here. The Joint Chiefs of Staff (JCS) said it detected the missiles around 8:10 a.m., which were launched from an area south of Pyongyang. They flew about 350 kilometers and likely landed in North Hamgyong Province, rather than in the East Sea as the JCS initially speculated. Wednesday's launch, the North's first missile provocation since President Lee Jae Myung took office in June, came about five months after the reclusive country fired a couple of short-range ballistic and cruise missiles in May. The launch also comes ahead of the Asia-Pacific Economic Cooperation (APEC) summit scheduled to be held in Gyeongju next week. Shortly after the North's fresh missile provocation, an emergency meeting was convened with diplomatic and security officials here to discuss measures. In a statement issued after the meeting, officials said, "The government is closely monitoring the situation to implement necessary measures while maintaining military readiness to respond to any further provocations." 2025-10-22 08:58:36 -
S&P upgrades LG Electronics' credit outlook, citing India IPO SEOUL, October 22 (AJP) - Standard & Poor’s on Tuesday upgraded LG Electronics’ credit outlook to “BBB Positive” from “BBB Stable,” the company’s first improvement since October 2022. The ratings agency cited robust performances in LG’s home appliance and vehicle component businesses, stronger cash flow from its Indian initial public offering, and a rebound at its affiliate, LG Display. The move came months after Moody’s raised LG’s outlook to “Baa2 Positive" early this year. S&P’s revision signals expectations of financial improvement over the next one to two years, in contrast to the prior “Stable” rating that suggested steady but unremarkable conditions. “Despite U.S. tariff hikes, LG’s core businesses continue to show solid results,” S&P said in a statement, highlighting “a major cash influx from the India IPO and a turnaround at LG Display, where LG holds a 36.72 percent stake.” LG’s home appliance division has maintained its strong market position amid global economic uncertainty, while the company’s air conditioner business is expanding on demand for cooling systems used in data centers. Meanwhile, the vehicle component business continues to improve profitability, supported by a $100 billion order backlog and a more favorable mix of contracts. S&P said it expects LG Display’s recovery to further strengthen LG Electronics’ financial profile, as the company recognizes those gains through the equity method. According to LG, the India IPO will generate more than 1.8 trillion won ($1.3 billion), providing additional funds for debt reduction. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-22 08:16:13 -
PHOTOS: Kazakhstan embassy marks Republic Day with strategic partnership dialogue in Seoul SEOUL, October 21 (AJP) - The Embassy of Kazakhstan in Korea hosted a roundtable discussion in central Seoul on Tuesday under the theme "Kazakhstan and South Korea: Advancing the Enhanced Strategic Partnership." The event marked Kazakhstan's Republic Day and the 35th anniversary of its Declaration of State Sovereignty, highlighting the shared commitment to deepening bilateral ties. 2025-10-21 23:46:48 -
INTERVIEW: Europe's largest Korean Cultural Center powers hallyu expansion in Budapest SEOUL, October 21 (AJP) - One in every 200 Hungarians has joined a Korean cultural program in recent years — a sign that Budapest has become the beating heart of the Korean Wave in Central Europe, according to the head of the Korean Cultural Center in Budapest. "In the past three years, more than 51,000 people have taken part in the center’s programs — an impressive figure in a country of only 9.6 million, meaning roughly one in every 200 Hungarians has joined a Korean cultural activity," said Yu Hye-ryeong, director of the center, in an interview with AJP. Opened in 2012, the Korean Cultural Center in Budapest has become a key bridge linking Central Europeans with Korean pop culture, language, cuisine, and traditional arts. Since her appointment last year, Yu has reorganized the center’s programs and expanded partnerships with Hungarian institutions to meet the surging demand. "Participation in our programs has increased sharply," Yu said. "Official data show that the number of classes has risen steadily — from 1,815 in 2022 to 1,928 in 2024 — while total participants have jumped 20 percent, from about 15,000 in 2022 and 17,000 in 2023 to more than 18,000 in 2024." She described Budapest as "the heart of Europe," where enthusiasm for Korean culture continues to grow. According to South Korea’s Ministry of Foreign Affairs, the Budapest center is now the largest of all Korean cultural centers in Europe. Hungarian engagement with Korean culture also ranks among the highest on the continent. Of some 440 active Hallyu fan clubs in Europe, about 130 are based in Hungary — and local media estimate the number has already surpassed 200. "Budapest is now the heart of the Korean Wave in Central Europe, and we are striving to contribute even more to this growing movement," Yu said. She noted that Hungary’s location at the crossroads of Europe — a hub for transport and logistics and home to 200 to 300 Korean companies — amplifies its role as a cultural and economic connector. "The popularity of Korean culture here is linked to Hungary’s geographical advantage and growing cooperation with Korean firms and government agencies," she added. Yu traced the start of the Korean Wave in Hungary back to the early 2000s, when the historical drama "Dae Jang Geum" (Jewel in the Palace) became the first Korean series broadcast in Europe. "It sparked a wave of curiosity about Korean culture," she said. "For a nation of fewer than 10 million, Hungary’s engagement with Korea is extraordinary — and much of that energy flows through our center today." The center offers a wide range of classes — from Korean language and calligraphy to folk painting and temple cuisine, a traditional vegetarian style emphasizing natural balance. "Our cooking classes are especially popular and fill up within minutes," Yu said. "Dishes like kimchi sandwiches and gochujang steak are now common in local restaurants, showing how naturally Korean flavors have blended into everyday life." The center also hosts numerous public events and festivals throughout the year. The annual KoreaON festival, now Central Europe’s largest Korean cultural event, drew more than 11,000 visitors in its sixth edition, covered by over 90 Hungarian media outlets. "The festival showcases the full spectrum of Korean culture — from traditional dance and folk music to K-pop concerts," Yu said. "Our live cooking shows featuring Korea’s traditional fermented sauces, known as jang — soy sauce, soybean paste, and chili paste — received particularly enthusiastic responses." She recalled one highlight: a performance by the K-pop Singers, a Hungarian choir trained by Kim Young-woo of Korea’s renowned vocal group Sweet Sorrow. "The audience stood and sang along — it was unforgettable," she said. This year’s events marking the 80th anniversary of Korea’s liberation also drew wide attention. One of the highlights was a commemorative run held in Budapest’s City Park on August 15, Korea’s Liberation Day, where participants carried Korean flags to celebrate freedom and unity. A piano concert by Korean artist Chin Soo-young, themed around independence and peace, sold out every seat. Looking ahead, Yu said the center plans to deepen its reach across Central Europe. "From the heart of the continent, we’ll continue to fulfill our mission — promoting Korean culture, building mutual understanding, and expanding Korea’s cultural presence throughout Europe," she said. 2025-10-21 21:18:48 -
Seoul fears rise of new ultra-conservative government in Tokyo may bring out old skeletons SEOUL, October 21 (AJP) - As Japan welcomes its first female state leader, Sanae Takaichi, elected Tuesday as the country’s 104th prime minister, Seoul is watching closely — wary that a rightward turn in Tokyo’s politics could rekindle old tensions. The 64-year-old conservative and head of the ruling Liberal Democratic Party (LDP) won 237 out of 465 votes in the lower house, comfortably surpassing the 233-seat majority threshold. Although the LDP holds 196 seats, Takaichi secured victory in the first round with backing from the Japan Innovation Party (Ishin) and several independent lawmakers. A protégé of the late ultraconservative prime minister Shinzo Abe, Takaichi has pledged to strengthen security ties with the United States and take a harder line against China and North Korea — a stance that contrasts sharply with the Lee Jae Myung administration’s diplomatic approach centered on dialogue, regional inclusivity, and what Seoul officials call “pragmatic diplomacy.” While she has promised continuity with her predecessor Shigeru Ishiba’s policies, her ascent marks a clear ideological shift to the right. Takaichi has long championed “patriotism” in education and asserted stronger sovereignty claims in territorial disputes — positions that could test the fragile thaw between Seoul and Tokyo that began under Ishiba through resumed shuttle diplomacy. For the Lee administration, which came to power in June 2025, the leadership change in Tokyo adds a new layer of uncertainty. President Lee made Japan for his first bilateral visit after taking office, signaling intent to stabilize relations with Tokyo and Washington. Yoshihiro Makino, visiting professor at Hiroshima University, said Seoul hopes to maintain the current momentum but is concerned about possible provocations under Takaichi. “There are concerns that with Takaichi in office, sensitive moves could re-emerge — such as visits to the Yasukuni Shrine, renewed claims over Dokdo, or discussions on the continental shelf agreement,” Makino said. He noted that many of Takaichi’s political allies are deeply attached to historical and territorial issues, heightening the risk of confrontation. “If Japan acts too provocatively, the Lee administration will have no choice but to respond firmly, since public opinion in South Korea reacts strongly to matters of history and sovereignty,” he added. Still, Seoul and Tokyo are expected to find common ground on economic and technological cooperation, particularly in supply chain resilience and semiconductor coordination. Takaichi’s rise also introduces a new variable into the regional power equation among Washington, Tokyo, and Seoul. Both Japan and the United States are now under conservative leadership, but their approaches to North Korea diverge. U.S. President Donald Trump has expressed willingness to reopen dialogue with North Korean leader Kim Jong-un, while Takaichi is expected to pursue a more hardline policy toward Pyongyang. In this shifting regional dynamic, Seoul’s ability to balance between Washington’s unpredictable diplomacy and Tokyo’s tougher stance will be critical in defining South Korea’s role on the Korean Peninsula. 2025-10-21 18:05:25 -
Red-hot streak of Korean chip stocks spills over to downstream suppliers SEOUL, October 21 (AJP) - South Korea’s semiconductor rally shows no sign of slowing, as record gains by memory giants ripple through the broader chip value chain, drawing in downstream suppliers and equipment makers amid growing concerns over a looming memory shortage in the AI era. Memory bellwethers Samsung Electronics and SK hynix both came close to symbolic six-digit milestones—100,000 won and 500,000 won, respectively. Samsung Electronics closed Tuesday 0.4 percent lower at 97,700 won ($68) after touching 99,800 won, while SK hynix fell 0.9 percent to 481,000 won after reaching an intraday high of 502,000 won. Their bull run lifted suppliers across the Kosdaq and main exchange KRX. Wonik Holdings, which makes chipmaking equipment and materials, slipped 2.7 percent to 25,250 won on profit-taking after soaring 77 percent this month and more than tenfold from its December low of 2,135 won. Hanmi Semiconductor, a key backend equipment producer, gained 55 percent this month on strong demand for its advanced tools used in high-bandwidth memory (HBM) production. Eugene Tech, which supplies to all three DRAM majors—Samsung, SK hynix, and Micron—ended Tuesday at a record 89,600 won after an intraday high of 92,000 won, tripling from a 52-week low of 30,300 won. Analysts widely agree that the sector is entering a new chip super cycle, fueled by surging AI-related demand, constrained supply, and state-led investment in advanced industries. A recent government task force unveiled a 5.7 trillion won national growth fund to support AI and deep-tech startups and strengthen semiconductor and robotics ecosystems. “Artificial intelligence is rapidly reshaping the global economy, and South Korea’s semiconductor industry will remain at the center of this transformation,” said Kang Sung-jin, professor of economics at Korea University. “The rise of AI in the Fourth Industrial Revolution has made semiconductors indispensable, sustaining bullish momentum in equities. Ongoing U.S.–China tensions also enhance Korean firms’ competitiveness in the U.S. market.” Lee Jong-hwan, professor of system semiconductor engineering at Sangmyung University, noted that both memory and non-memory chips are increasingly vital as AI applications diversify. “AI chips are driving explosive demand across the board,” he said. “Non-memory semiconductors—made by foundries like TSMC and Samsung—are just as crucial for AI systems.” Lee added that the real profits in the AI age come from the hardware, not software. “The firms actually making money are the semiconductor manufacturers enabling AI functionality,” he said. “Today’s strong stock performances by SK hynix and Samsung reflect exactly that.” Calling earlier “AI bubble” fears misplaced, Lee predicted the current uptrend would persist as AI adoption accelerates. He urged continued investment in fabs, workforce, and overseas capacity. “Samsung and SK hynix should sustain aggressive semiconductor investment—both domestically in the Yongin cluster and abroad to navigate U.S. trade and tariff risks. Equipment and materials players will rise in tandem.” 2025-10-21 17:55:46