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  • Former Lawmaker Chae Yi-bae Appointed Chief of the Prime Ministers Office
    Former Lawmaker Chae Yi-bae Appointed Chief of the Prime Minister's Office Chae Yi-bae, a former lawmaker and head of the Gyeonggi Job Foundation, is set to be appointed as the Chief of the Prime Minister's Office (a vice-ministerial position) on July 11, according to the Prime Minister's Office on July 10. Chae has served as the secretary of the Economic Democracy Committee at the Citizens' Coalition for Economic Justice, a research fellow at the Good Corporate Governance Institute, and a researcher at the Economic Reform Institute. He has also held positions as a special advisor on fair economy to the Prime Minister and as the chair of the Fair Market Committee for the Democratic Party's 20th presidential election campaign, demonstrating his commitment to fostering a fair competitive environment and sustainable economic growth to alleviate polarization. With his extensive experience and expertise, Chae is expected to assist Prime Minister Han Seong-sook, who has emphasized growth for all citizens, in supporting the recovery of the economy and the transition to AX·GX, ultimately contributing to tangible government achievements for the public. Chae graduated from Korea University with a degree in public administration after attending Incheon Gyesan High School and completed a master's program in commercial law at Korea University's Graduate School of Law.* This article has been translated by AI. 2026-07-10 15:52:00
  • South Korea to reassess single-stock leveraged ETFs amid volatility concerns
    South Korea to reassess single-stock leveraged ETFs amid volatility concerns SEOUL, July 10 (AJP) - South Korea's newly-introduced single-stock leveraged exchange-traded funds (ETFs) are under scrutiny after those linked to the country’s largest two chipmakers suffered heavy losses, raising concerns about market volatility and investor protection. In a press briefing at Cheong Wa Dae on Friday, chief presidential secretary for policy Kim Yong-beom said that the government has been holding regular meetings with the country's top financial policymakers including officials from the Ministry of Finance and Economy, the Financial Services Commission, the Bank of Korea and the Financial Supervisory Service, to come up with measures. "We are continuously monitoring market conditions while considering whether any adjustments are needed," Kim told reporters, referring to the side effects of such ETF products since their market debut on May 27. "We will closely examine its impact on the market and whether any changes or measures are needed to protect investors," he added. His comments came amid growing debate over whether these products are amplifying volatility in South Korea's stock market, which has seen sharp ups and downs over the past year, driven largely by an unprecedented semiconductor rally. Unlike conventional ETFs that track a basket of stocks or a market index, single-stock leveraged ETFs seek to deliver twice the daily return of a single stock. In South Korea, these products are concentrated almost entirely on Samsung Electronics and SK hynix, allowing investors to amplify gains when share prices rise but magnifying losses when they decline. They faced growing scrutiny after sharp swings in the shares of the two chip giants resulted in steep losses for many retail investors. Calls for tighter oversight have also emerged from political circles, with lawmaker Ahn Cheol-soo of the main opposition People Power Party (PPP) urging earlier this week that the products be delisted, saying they had turned the country's stock market into a "casino" and describing them as a "policy failure." 2026-07-10 15:49:37
  • OK Financial Group Selected as Preferred Bidder for Yebyeol Insurance Sale
    OK Financial Group Selected as Preferred Bidder for Yebyeol Insurance Sale OK Financial Group has been selected as the preferred bidder for the public sale of Yebyeol Insurance. Once the sale process is completed, it is expected to accelerate the management normalization efforts of Yebyeol Insurance.The Korea Deposit Insurance Corporation announced on July 10 that OK Financial Group was chosen as the preferred bidder following the bidding results for the public sale of Yebyeol Insurance, which closed on June 30.Yebyeol Insurance was established as a bridge insurance company after acquiring the insurance contracts of MG Insurance, which was designated as a troubled financial institution by the Financial Services Commission in 2022. The company has attempted several public sales in the past, but all efforts were unsuccessful, making this sale process effectively the last chance.In this bidding process, the Korea Deposit Insurance Corporation received final acquisition proposals from four companies, including OK Financial Group, Korea Investment Holdings, Heungkuk Fire & Marine Insurance, and JC Flower. Following this, a preliminary review of the acquisition requirements, evaluation of requested financial support, and assessment of contract execution capabilities were conducted.According to financial industry sources, OK Financial Group's financial stability and detailed management normalization roadmap were highly regarded.OK Financial Group is recognized for its risk management capabilities, having successfully acquired Yejoo and Yena Savings Bank, which were managed by the Korea Deposit Insurance Corporation in 2014, and transforming it into the current OK Savings Bank, now ranked second in the industry.Additionally, during the past acquisitions of savings banks and Korea Citi Capital (now OK Capital), the group diligently fulfilled the eligibility review procedures for major shareholders as required by relevant laws.The Korea Deposit Insurance Corporation will grant an exclusive negotiation period to the preferred bidder and proceed with subsequent steps, including sale negotiations and the signing of a stock purchase agreement (SPA).Once the acquisition is finalized, OK Financial Group is expected to evolve into a comprehensive financial group with a core portfolio encompassing three sectors: savings banks, capital, and non-life insurance, by adding Yebyeol Insurance to its existing OK Savings Bank and OK Capital.An official from OK Financial Group stated, "Beyond simple business expansion, we will fulfill our responsibilities as a financial institution for the public by ensuring the safety of assets for 1.22 million policyholders and contributing to the normalization of troubled financial institutions."The Korea Deposit Insurance Corporation expressed its commitment to completing the sale process as quickly as possible to protect policyholders and facilitate the normalization of Yebyeol Insurance. 2026-07-10 15:48:00
  • AI Procurement Strategy Aims to Boost South Koreas AI Industry
    AI Procurement Strategy Aims to Boost South Korea's AI Industry Without customers, even the best technology cannot grow. Startups in emerging industries like AI and robotics often struggle to enter the market due to a lack of delivery records. When the government becomes the first customer by purchasing innovative products, public institutions can verify their performance, allowing companies to use this as a stepping stone to enter the private and global markets. At the center of this initiative is Baek Seung-bo, the head of the Public Procurement Service. He is transforming public procurement from a simple purchasing administration into a national growth strategy that creates an initial market for the AI industry. The question is clear: Can South Korea cultivate global AI companies through public procurement? What startups need most is not funding, talent, or technology, but customers. No matter how good a product is, a company cannot grow without buyers. This is especially true for new technologies and products like AI and robotics, which find it difficult to prove their performance and safety in the market. The government and public institutions require delivery records, and large corporations are hesitant to purchase unverified products. This creates a paradox where innovative companies cannot generate sales without a track record, yet they cannot establish a track record without sales. This is where Baek Seung-bo's focus lies. The government must become the first customer by purchasing products, thus supporting innovative companies. When the Public Procurement Service identifies promising AI products for pilot purchases, public institutions can use them in the field, allowing companies to verify performance, address issues, and secure delivery records. Government purchases do not end with buying a single product; they play a crucial role in confirming the technology's potential and building market trust. Public procurement should no longer be seen merely as an administrative process for buying goods cheaply, but as a national growth strategy that fosters new industries and nurtures innovative companies. South Korea's public procurement market exceeds 200 trillion won annually, encompassing central government, local governments, and public institutions. How this immense purchasing power is utilized will shape the future of the industry. Traditionally, public procurement has prioritized price and stability, viewing the purchase of already verified products as the safest choice. However, if the government only buys verified products, innovative companies will struggle to enter the public market. Innovative products cannot be perfect from the start; they must undergo a process of use and improvement in the field to reach higher levels of completion. Baek Seung-bo believes that new procurement policies are necessary for new technologies. The core of Baek Seung-bo's strategic public procurement emphasizes using public procurement as an industrial policy rather than merely a purchasing administration. The government's substantial purchasing power should create an initial market for the AI industry and serve as a catalyst for company growth. R&D support alone cannot complete an industry. Developed technologies must become products, and those products must be used in real markets for the industry to grow. The final piece of the AI industrial policy puzzle is the market, and the Public Procurement Service is the agency that can open that market first. AI products must be evaluated based on their data utilization capabilities, learning potential, continuous performance improvement, and scalability. Evaluating them using the same criteria as traditional goods makes it difficult to accurately assess their technological innovation. This is why the Public Procurement Service is establishing a separate evaluation track for AI products. By identifying companies with strong technologies, the government can purchase their products, and public institutions can use them to verify performance and address issues. Once the effectiveness of a product is confirmed, purchases can be expanded to other public institutions. Creating this growth ladder significantly increases the survival chances of AI startups, and companies with established delivery records can gain the trust of private enterprises and financial institutions. Until now, AI policy has focused on R&D and funding support. Now, a policy is needed where the government and public institutions purchase developed products. The paradigm of AI industry nurturing policy must expand from support to procurement, moving beyond just providing development funds to creating markets for products. AI is ushering in a physical AI era, integrating into robotics, automobiles, factories, and agricultural machinery. For South Korea, a manufacturing powerhouse, there is a significant opportunity to leverage its strengths in manufacturing and hardware capabilities in the software-centric AI competition. However, new technologies require validation to enter the market. Autonomous equipment, service robots, smart safety devices, and AI medical devices must be tested in real-world settings such as roads, hospitals, factories, and public facilities to properly verify their performance and safety. The government and public institutions can become the world's largest AI validation market. Local governments can test AI traffic systems, public hospitals can validate AI medical devices, fire departments can assess AI safety equipment, and rural areas can trial autonomous agricultural machinery. Through public procurement, South Korea can transform into a vast physical AI testbed. The best way to grow the AI industry is not merely to showcase technology but to use it, identify problems, and improve it, and the Public Procurement Service must create that pathway. The ultimate goal of South Korean AI companies is not the domestic market but the global market. Overseas customers place significant importance on which institutions have used the products and what results have been achieved. The purchasing records of government and public institutions can become a powerful asset of trust. The role of public procurement should not end with product purchases; it must connect the growth ladder from public institution purchases to the private market and from the domestic market to the global market. The accumulated validation data and delivery records in the domestic market should support public procurement abroad and exports, creating a structure where the experience of public institutions serves as a guarantee for companies' overseas expansion. The Public Procurement Service must support AI companies while also utilizing AI within its own administrative functions. By analyzing vast amounts of contract, price, and bidding data, it can propose appropriate prices, predict price fluctuations and supply conditions by item, and provide tailored procurement information to companies. Establishing an AI consulting service to guide complex procurement procedures will lower the barriers to entry into the public market. Baek Seung-bo emphasizes that the AI era demands a paradigm shift in public procurement, advocating for a transition from a digital procurement service to an AI procurement service. By delegating repetitive tasks and data analysis to AI, procurement officials can focus more on supporting companies, policy decisions, and solving on-site issues. AI is not meant to replace officials but to assist them in making more accurate and faster judgments. Analyzing extensive bidding and contract data can help identify unusual transactions and collusion more quickly. AI can detect patterns that are difficult for humans to find, such as repeated wins by specific companies or excessive contracts compared to market prices. Transitioning from post-investigation to pre-detection can also help prevent procurement corruption. However, AI should not make all decisions; it should remain in a supportive role, assisting officials in identifying anomalies. There is a risk that normal companies could be suspected due to incorrect data, so final verification and accountability must rest with humans. Addressing the concentration of the AI industry in the metropolitan area is another challenge. Regional companies often struggle not due to a lack of technology but because they lack opportunities to validate their products. The Public Procurement Service can support regional AI, robotics, hydrogen energy, and smart agriculture companies in entering the public market, and if local public institutions and governments use regional innovative products first, companies can gain validation opportunities and delivery records nearby. As companies grow, good jobs are created, allowing young people to stay in the region, and an innovative ecosystem can emerge connecting local universities, research institutions, companies, and public institutions. Public procurement can thus be linked to regional balanced development. South Korea's industrial policy has long been centered on R&D funding, policy loans, and startup grants. While these are necessary policies, what is more important to companies is having customers that generate sales. The government's role in the AI era must also expand from being a funding provider to a purchasing entity. When the government becomes the first customer and verifies performance, companies can use this as a stepping stone to enter the private market and eventually the global market. This is the most significant meaning of the AI innovative procurement that Baek Seung-bo is promoting. While subsidies are temporary, customers and markets continuously foster company growth. The focus of AI industrial policy must also shift from supporting technology development to demand policies that purchase and utilize technology. The competition in the AI industry is as much about the speed of development as it is about the speed of validation and market entry. South Korea possesses a world-class digital infrastructure, a strong manufacturing base, and excellent talent, along with a public procurement market exceeding 200 trillion won. By utilizing the government, local governments, and public institutions as validation sites for new AI technologies, South Korea can become a vast AI testbed. As companies develop technology, the government purchases it, public institutions use it, and companies improve their products with real-world data, validated products can then spread to the private and global markets. If an ecosystem is created where the government is the first customer, public institutions serve as validation sites, and private companies are the dissemination agents, the likelihood of South Korea producing world-class AI companies will increase significantly. Baek Seung-bo's task is not merely to ensure the government purchases the necessary items but to cultivate South Korea's future industries through public procurement. The establishment of an AI-specific innovative product track, pilot purchases, the development of physical AI, the discovery of regional innovative companies, and the transformation of procurement administration into a growth ladder for the AI industry all point toward a single goal. When the government becomes the first customer and public institutions validate products, companies can then enter the private and global markets. Transitioning from a government that provides subsidies to one that purchases products, and from a government that supports companies to one that creates markets, is essential. The government should be the first to purchase products from companies with good technology, public institutions should become vast testbeds, and validated AI products should enter the global market. This is the starting point of the AI procurement revolution that Baek Seung-bo must lead. Baek Seung-bo is an expert in procurement administration. He has served as the Director of the New Technology Service Bureau at the Public Procurement Service, the head of the Seoul Regional Public Procurement Service, and the Deputy Commissioner of the Public Procurement Service before being appointed as the first Commissioner of the Public Procurement Service under the Lee Jae-myung government in August 2025. He has contributed to designing the next-generation national procurement system incorporating new technologies like AI and facilitating the entry of startup and venture companies into the public market. Since taking office, he has been promoting AI innovative procurement by expanding the evaluation track for AI products and pilot purchases, utilizing public institutions as validation sites to help innovative companies secure initial markets and delivery records.* This article has been translated by AI. 2026-07-10 15:48:00
  • Teens killing tests South Koreas family exemption law
    Teen's killing tests South Korea's family exemption law SEOUL, July 10 (AJP) - A serving police officer destroyed evidence in his own son's murder case, and under South Korean law he cannot be prosecuted for it. That fact, uncovered during the investigation into the killing of a high school girl in the southern city of Gwangju in May, has pushed South Korea into a national debate over a decades-old provision of its Criminal Act that shields relatives from punishment when they hide offenders or destroy evidence on their behalf. Prosecutors say Jang Yun-gi, 23, attacked the student after stalking her with the intent to abduct and sexually assault her. While Jang was in custody, investigators found that items prosecutors considered important to proving a sexual motive, including life-like sex dolls and mobile phones, had disappeared from his residence. Prosecutors later determined that Jang's father, a police officer, had discarded the dolls and burned the phones. Ordinarily, destroying evidence in another person's criminal case is punishable by up to five years in prison or a fine. But Articles 151 and 155 of the Criminal Act carve out an exception: when a relative or cohabiting family member commits those acts for the benefit of the suspect, the person is not punished. The father is therefore unlikely to face criminal charges. The National Police Agency has said disciplinary measures remain possible if misconduct is confirmed, a distinction that has only intensified criticism that the law is out of step with the seriousness of the case. The exemption rests on an old legal judgment that the state should hesitate before forcing family members to betray one another. It is the same impulse at the heart of "Mother," Bong Joon-ho's 2009 thriller about a mother who buries the truth of her son's crime; the cover-up horrifies because it feels emotionally comprehensible. Critics say the Jang case shows what happens when the law gives that impulse automatic protection: a legal safe harbor for evidence destruction in a murder case, exploited by a man sworn to uphold the law. Other legal systems draw the line differently. Japan's Penal Code allows courts to exempt relatives rather than requiring it, giving judges room to weigh the gravity of the crime. Germany exempts relatives but separately punishes public officials who obstruct prosecution in the course of their duties, with no family exception. For critics of South Korea's law, that is the point: family loyalty may explain a parent's impulse, but it should not excuse a police officer's misuse of access and authority. Defenders of the exemption warn that abolishing it entirely would create hard cases, forcing parents and spouses to help prosecute people they love. But even lawmakers sympathetic to that view see the current rule as untenable. Rep. Min Hong-chul, a four-term Democratic Party lawmaker and former chief justice of the High Military Court, predicted a revision restricting the exemption would pass the National Assembly, saying the case had caused "such a major social impact." "This case has exposed a blind spot in the family-member exemption system," Min said. "There were likely many undisclosed cases in which the exemption applied to serious crimes such as murder, rape and robbery." Rep. Yoo Sang-bum, a two-term People Power Party lawmaker and former chief prosecutor, said abolishing all family exemptions would go too far, but that the exemption should be removed for people in investigative and inspection authorities. "The harm is too great to recognize the family-member exemption even for crimes committed by those responsible for uncovering the truth," Yoo said. Neither party has yet moved beyond early discussions. "I understand that the party leadership and floor leadership are discussing the family-member exemption issue, but there has not yet been any concrete discussion at a general meeting of lawmakers," said a two-term Democratic Party lawmaker. "This is a matter for the floor leadership, so we do not yet know the details. It will probably be discussed at Monday's general meeting of lawmakers," said a two-term People Power Party lawmaker. 2026-07-10 15:41:09
  • First Steps to Homeownership: Essential Tips for Property Visits
    First Steps to Homeownership: Essential Tips for Property Visits As rental prices continue to rise, the movement among homebuyers without property is also increasing. Particularly, the buying trend is spreading to the outskirts of Seoul and the surrounding metropolitan area, making on-site property visits, known as '임장' (property visits), an essential step before purchasing a home. Property visits can be broadly divided into preliminary research and on-site inspections. Before visiting a property, thorough preliminary research is crucial. By checking prices, locations, community sizes, school districts, transportation options, and development plans through the internet and real estate platforms, buyers can better organize what to look for during their visit. Most importantly, selecting candidate properties that fit within a realistic budget is key. Large, brand-new apartments with excellent subway access, good school districts, and ample amenities typically come with high price tags. Instead of trying to find a property that meets all conditions, it is more practical to choose the one that offers the highest satisfaction within the budget. To do this, it is necessary to prioritize various factors such as location, transportation, schools and districts, convenience facilities, community size, brand, new construction status, and potential for redevelopment. By narrowing down the core conditions to two or three and selecting candidate properties within the budget, comparisons and judgments become easier. Once preliminary research is complete, on-site visits should be conducted to check elements that are difficult to verify online. A key aspect is the actual walking distance. There are often discrepancies between the time indicated on real estate platforms and the perceived distance, so it is advisable to walk to subway stations, schools, and amenities to confirm the travel routes. Orientation and sunlight access are also important factors to verify on-site. Even with a south-facing property, the arrangement of nearby buildings can significantly affect light and openness. Noise levels, slopes, and the atmosphere of surrounding commercial areas are also aspects that can only be assessed through a visit. Visiting local real estate agencies is another important part of the property visit process. Experienced agents who have operated in the area for a long time often possess information about market trends, actual transaction cases, and property characteristics that are not available online. However, since each agent has different levels of experience and expertise, it is essential to evaluate the information provided comprehensively. During consultations, the more specific the explanation of desired prices, budgets, preferred sizes, and conditions, the more helpful the information obtained will be. Conversely, if explanations are lacking or the consultation seems insincere, it is advisable to check opinions from other agencies as well. Meanwhile, it is important to be cautious about visiting multiple agencies indiscriminately. In cases where the same property is inquired about at several places simultaneously, homeowners may interpret the increased inquiries as a signal of heightened demand, leading them to raise prices or withdraw listings. Therefore, it is advisable to keep in mind that property visits are a process for gathering information and to conduct them efficiently, focusing on properties where there is genuine intent to purchase. A thorough preliminary investigation and systematic on-site verification will enable more rational homeownership.* This article has been translated by AI. 2026-07-10 15:40:00
  • Son Heung-min Will Not Attend KFA Hearing; Im O-kyung Withdraws Witness Request
    Son Heung-min Will Not Attend KFA Hearing; Im O-kyung Withdraws Witness Request Im O-kyung, a member of the National Assembly's Cultural, Sports and Tourism Committee, announced on July 10 that he has withdrawn the request for players to serve as witnesses in the hearing regarding the Korea Football Association (KFA).In a Facebook post, Im stated, "Considering the opinions of the party and the players' match schedules and positions, I made this decision." He added, "The request for players to testify was not intended to burden them, but to create a better hearing for the development of Korean football." He emphasized that the hearing should not be a one-sided affair.Im also highlighted that the public desires a more transparent and fair operation of the Football Association, aiming for a system that restores trust in Korean football.He expressed his commitment to preparing well for the hearing on July 22, stating, "I hope that Korean football, which receives the most passionate love from the public, can emerge even more splendidly in four years."Meanwhile, the Cultural Committee had approved the hearing the previous day to review the KFA's process for selecting the national team coach, finalizing a list of 13 witnesses and 10 reference persons. Son Heung-min was included in the list of reference persons requested by Im. Former coach Hong Myung-bo, who had been rumored to be avoiding the hearing by traveling to the United States, has stated he will attend. 2026-07-10 15:40:00
  • President Yoon Appoints Lim Gi-geun as New Chief of the Office for Government Policy Coordination
    President Yoon Appoints Lim Gi-geun as New Chief of the Office for Government Policy Coordination President Lee Jae-myung appointed Lim Gi-geun, the Vice Minister of the Ministry of Economy and Finance, as the new Chief of the Office for Government Policy Coordination on July 10.Seong Gi-hong, the Chief of Public Relations and Communication, announced Lim's appointment during a briefing at the Cheong Wa Dae press center.Seong stated, "Lim is a top expert in economic policy, having served as the Director of Policy Coordination at the Ministry of Economy and Finance, the Chief Budget Officer, and the Administrator of the Public Procurement Service. We expect him to rationally mediate inter-departmental interests and manage national issues stably based on his experience in coordinating complex economic policies."He added, "Lim is the right person to assist the Prime Minister in supporting the leap to a super-gap industrial powerhouse and ensuring growth for all citizens in an irreplaceable South Korea."Lim, originally from Haenam, Jeollanam-do, graduated from Songwon High School in Gwangju and earned a degree in Business Administration from Seoul National University. He also holds a master's degree in Economics from Indiana University in the United States.Entering public service through the 36th National Civil Service Examination, Lim has held various positions, including Director of Policy Coordination at the Ministry of Economy and Finance, Chief Budget Officer, and Administrator of the Public Procurement Service. He became the Vice Minister of the Ministry of Economy and Finance in June of last year.* This article has been translated by AI. 2026-07-10 15:36:00
  • Noh Kyung-pil Appointed as New Chief of Court Administration
    Noh Kyung-pil Appointed as New Chief of Court Administration Cho Hee-dae, the Chief Justice of the Supreme Court, announced on July 10 that Noh Kyung-pil, a 62-year-old Supreme Court Justice, will be appointed as the new Chief of Court Administration effective July 14. This appointment fills a vacancy that has existed for four months, potentially accelerating discussions on the nomination of new justices. The Supreme Court confirmed that Noh Kyung-pil will take on the role of Chief of Court Administration, which oversees judicial administrative affairs and is held by one of the Supreme Court Justices. Noh was appointed as a judge in 1997 and has since served in various capacities, including as a research judge at the Supreme Court, a judge at the Seoul High Court, and a presiding judge at the Gwangju and Suwon High Courts. He was appointed as a Supreme Court Justice in August 2024. During his five years as a research judge at the Supreme Court, Noh focused on constitutional and administrative law disputes, advocating for citizens' fundamental rights, participation in administrative procedures, and tax justice, according to the Supreme Court. Noh's appointment comes after the resignation of Park Young-jae, who vacated the position four months ago. Park had taken office in January but resigned just 42 days later amid the legislative process concerning the 'three judicial laws' (laws on judicial distortion, judicial appeals, and increasing the number of Supreme Court Justices). Park faced pressure to resign from Democratic Party members of the National Assembly's Legislation and Judiciary Committee after he presided over a case involving Lee Jae-myung, a former presidential candidate, last May, which resulted in a decision to overturn. Since Park's resignation, Ki Woo-jong, the Deputy Chief of Court Administration, has been acting in the role. Following the retirement of former Supreme Court Justice Noh Tae-ak on March 3 without a successor, the appointment of a new Chief of Court Administration was delayed to ensure that judicial operations would not be disrupted. Typically, 12 of the 14 Supreme Court Justices, excluding the Chief Justice and the Chief of Court Administration, handle judicial duties. In January, the Supreme Court's Justice Candidate Recommendation Committee had nominated four candidates to succeed Noh: Kim Min-ki, Park Soon-young, Son Bong-ki, and Yoon Sung-sik. However, disagreements between the Blue House and the judiciary have stalled the process. If the nomination for the successor to Justice Lee Heung-gu, who is set to retire in September, is not completed in time, there could be two vacant positions among the Supreme Court Justices. Noh Kyung-pil's appointment as Chief of Court Administration may facilitate progress in the discussions regarding new justices.* This article has been translated by AI. 2026-07-10 15:28:00
  • Can Newlyweds Benefit from Marriage Gift Tax Exemption?
    Can Newlyweds Benefit from Marriage Gift Tax Exemption? Since the implementation of the marriage gift tax exemption, there has been an increase in its use as a means for newlyweds to secure housing funds. However, experts advise that the tax benefits can vary based on eligibility requirements and the method of gifting, making prior verification essential.Last month, 28-year-old office worker Kim held a wedding ceremony and prioritized consulting a tax advisor before signing a contract with the venue. This was because he planned to receive a gift from his parents to fund the deposit for their new home. The total amount his parents agreed to contribute was 320 million won, the maximum amount that can be utilized under the marriage gift tax exemption. Kim coordinated the timing of the gift and the marriage registration to meet the exemption requirements.The marriage gift tax exemption, which took effect on January 1, 2024, allows individuals to receive up to 150 million won tax-free when receiving gifts from direct ancestors such as parents or grandparents. This includes the existing adult child gift exemption of 50 million won over ten years, plus an additional 100 million won for the marriage exemption.Both the bride and groom can apply for the exemption, and when combined with the additional relative exemption of 10 million won each, couples can receive a total of up to 320 million won without incurring gift tax.The exemption applies to gifts received within two years before and after the marriage registration date. For example, if the marriage registration occurs on July 10, 2026, gifts received from July 10, 2024, to July 10, 2028, would qualify. This applies equally to first marriages and remarriages.Tax professionals report a steady increase in consultations regarding the marriage gift tax exemption. Lee Jeong-ok, head of the tax team at Shinhan Financial Group, stated, "The marriage exemption can be utilized up to 100 million won over a lifetime, making it a popular option for newlyweds looking to cover housing costs such as home purchases or rental deposits. Recently, many consultations have focused on maximizing tax benefits by combining the marriage exemption with other gifts rather than relying solely on it."Lee added, "The marriage exemption applies not only to gifts from parents but also from grandparents. There are also cases where grandparents' gifts are considered in light of inheritance tax planning."However, if grandparents directly gift to grandchildren, it is classified as a skipped generation gift, which typically incurs a 30% surcharge on the calculated tax amount. Nevertheless, if the marriage exemption is applied and no gift tax is incurred, the surcharge will not be applied. Tax professionals note that some families are utilizing this strategy to gift funds in advance while considering inheritance tax implications.Meanwhile, some experts argue that the marriage gift tax exemption primarily benefits households that can receive financial support from parents or grandparents, limiting its overall policy effectiveness.Marriage Exemption vs. General Gifts: How Much Tax Difference?The tax benefits of the marriage gift tax exemption can be illustrated through real-life examples. If a child with no prior gift history receives 150 million won from their parents, applying the marriage exemption would mean both the basic exemption of 50 million won and the marriage exemption of 100 million won are applied, resulting in a taxable amount of zero. Consequently, no gift tax would be owed.In contrast, if the marriage exemption is not applied, only the basic exemption of 50 million won is recognized, leading to a taxable amount of 100 million won. In this case, the calculated tax would be 10 million won, and even with the timely filing tax credit, the gift tax burden would still be approximately 9.7 million won.Check 10-Year Cumulative Taxation and Gift ReportingExperts emphasize that understanding existing gift history is as crucial as the marriage exemption itself.The marriage exemption is an additional benefit to existing exemptions, but gifts received from the same individual within the last ten years are subject to cumulative taxation. If the basic exemption of 50 million won has already been utilized, the taxable amount could be higher than expected, making prior verification necessary.Even if no gift tax is incurred, it is advisable to file a report. This documentation can serve as important evidence during future funding plan submissions or when clarifying the source of funds.Parties acquiring property in designated land transaction approval zones should also be cautious. If the gift details in the funding plan submitted during the approval application differ from those in the actual transaction report, additional clarification may be required.Lee stated, "The marriage exemption can be applied if the gift is received after confirming the marriage intention through invitations and the marriage registration occurs within two years thereafter. It is important to note that the marriage exemption and childbirth gift exemption cannot be applied simultaneously; one must be chosen."* This article has been translated by AI. 2026-07-10 15:24:00