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  • Yeosus Employment Crisis Response Area Extended for One Year; Dangjin Newly Designated
    Yeosu's Employment Crisis Response Area Extended for One Year; Dangjin Newly Designated The designation period for Yeosu, a city in South Jeolla Province facing a downturn in the petrochemical industry, as an employment crisis response area will be extended for one year. Dangjin, a city in South Chungcheong Province, has been newly designated as a response area due to job losses primarily in the steel and metal product manufacturing sectors.On August 20, the Ministry of Employment and Labor held the 6th Employment Policy Council of 2026, chaired by Minister Kim Young-hoon, where the designation of employment crisis areas and response areas was discussed and approved.The employment crisis response area system was introduced in July of last year to provide government support before employment shocks from industrial downturns are reflected in statistics. Areas are designated if the number of insured workers in key industries declines for three consecutive months compared to the same month the previous year, or if a leading company plans to restructure more than 10% of its regular workforce.Although Yeosu did not meet the criteria for designation as an employment crisis area, the ongoing struggles in its key petrochemical industry led to an extension of its response area designation until August 27 of next year. This follows its initial designation on August 28 of last year, resulting in a one-year extension of support.Dangjin has been designated as a response area from August 21 to August 20 of next year, considering the job losses in the steel and metal product manufacturing sectors.This inclusion of Dangjin, which is heavily reliant on the steel industry, follows the ongoing restructuring in Yeosu's petrochemical sector. The policy aims to prevent the downturn in manufacturing from impacting the local job market.In total, eight areas have been designated as response areas, including Gwangsan District in Gwangju, Pohang in North Gyeongsang Province, Seosan in South Chungcheong Province, Nam-gu in Ulsan, Gwangyang in South Jeolla Province, and Jemulpo District in Incheon.Being designated as a response area allows for expanded support, including employment maintenance subsidies, vocational training, and livelihood stability assistance. If employers provide paid leave and maintain employment, the government’s support ratio increases from the usual 50-66% to 60-80%.The support limit for the National Tomorrow Learning Card has been raised from 3 million won to 5 million won over five years, with the self-burden rate reduced to 0-20%. The limit for vocational training living expense loans has increased from 10 million won to 20 million won, and the limit for livelihood stabilization loans has risen from 20 million won to 25 million won.During the council meeting, recent employment conditions and response strategies were also discussed. Last month, the number of employed individuals increased by 108,000 compared to the same month last year, but the employment rate for those aged 15 and older fell by 0.1 percentage points to 63.3%. The youth employment rate dropped by 1.6 percentage points to 44.2%, and declines in employment in manufacturing and construction sectors continued.In response, the government plans to expand youth work experience programs and establish the 'K-New Deal Academy,' along with a new 'Youth First Employment Support System (K-Youth Guarantee).' For middle-aged individuals, the government will gradually expand mandatory re-employment support services and provide career transition support linked to training and work experience.The council also discussed evaluations and improvement plans for this year's publicly funded job projects. The government will consider the evaluation results of 188 publicly funded job projects from last year to reform low-performing projects and coordinate similar and overlapping initiatives.Additionally, the focus will be on inclusive growth through investments aimed at responding to industrial transitions, strengthening labor market competitiveness, enhancing job support for youth and local communities, and addressing low birth rates and aging populations.Minister Kim Young-hoon stated, "The discussions on job policy direction, innovation in employment services, and responses to regional employment crises are all core tasks aimed at creating a country where everyone can work happily. We will faithfully reflect the opinions presented in the council to ensure that policies lead to tangible results on the ground."* This article has been translated by AI. 2026-08-20 17:32:10
  • KakaoBank Launches Service to Easily Find and Apply for Volunteer Activities
    KakaoBank Launches Service to Easily Find and Apply for Volunteer Activities KakaoBank announced the launch of its 'Find Volunteer Activities' service, allowing users to search and apply for volunteer opportunities directly through its app.This service is notable for integrating public volunteer-related services via the Ministry of the Interior and Safety's 'Digital Service Opening' initiative.Users can access information from three services: the '1365 Volunteer Portal,' 'e-Youth Youth Volunteer Dovol,' and 'Social Welfare Volunteer Certification Management (VMS)' all in one place.As a result, KakaoBank customers aged 14 and older can find and apply for desired volunteer activities without visiting each site separately.Users can search for volunteer opportunities based on criteria such as location and areas of interest, and they can also view their past activity history and accumulated volunteer hours.The service incorporates artificial intelligence (AI) to enhance convenience, summarizing key details such as activity descriptions, schedules, and application requirements. Customers who participate in volunteer activities can write reviews or check feedback from other users.A KakaoBank representative stated, "We launched this service to help youth in need of volunteer activities and customers interested in volunteering find relevant information more conveniently. We will continue to provide services that can assist our customers in their daily lives."* This article has been translated by AI. 2026-08-20 17:32:10
  • Debate Erupts Over Chief Justices Written Recommendation for Supreme Court Nominees
    Debate Erupts Over Chief Justice's Written Recommendation for Supreme Court Nominees Cho Hee-dae, the Chief Justice of South Korea, has submitted a written recommendation for Supreme Court nominees to President Lee Jae-myung, prompting a divide between conservative and progressive lawyer groups.The conservative group, the Lawyers' Association for Human Rights and Unification of Korea, stated on August 20 that the controversy surrounding Cho's written recommendation is "merely a practice and not a legal obligation."Hanbyeon asserted, "The power to recommend Supreme Court justices is a unique authority granted solely to the Chief Justice by the Constitution," adding that "the recommendation can be made in person or in writing, and there is no legal requirement enforcing one method over the other."The group also referenced the circumstances surrounding Cho's written recommendation, stating, "The head of the court's administrative office reported to the National Assembly that 'the Chief Justice requested a meeting with the President, but the Blue House did not provide that opportunity, and the written recommendation method was agreed upon in consultation with the Blue House's Chief of Civil Affairs.'" They criticized claims that this was a unilateral notification, calling it a distortion of the facts.They further noted, "The President's appointment power is merely a formal authority exercised in the capacity of the head of state," and warned that threatening to refuse the appointment based on the form of the recommendation and intimidating the Chief Justice is an unconstitutional act that undermines the separation of powers.In contrast, the progressive group, the Lawyers for a Democratic Society, condemned the abuse of the recommendation power and attempts to undermine the court's administrative office. They stated, "The recommendation is a duty and obligation assigned to the Chief Justice by the Constitution, not a private authority that can be delayed or reversed until a favorable outcome is achieved."They added, "The failure to make a recommendation for over five months and attempts to reverse the results of the recommendations are clear abuses of the recommendation power," demanding that the Chief Justice apologize for the misuse of this power and the attempts to undermine the Supreme Court Nomination Committee.Additionally, they called on the National Assembly to amend the Court Organization Act to establish specific measures to control the abuse of the recommendation power and urged the abolition of the court's administrative office and the establishment of a new judicial administrative body.* This article has been translated by AI. 2026-08-20 17:32:00
  • Recovery Efforts Accelerate in Geoje and Tongyeong Following Heavy Rain
    Recovery Efforts Accelerate in Geoje and Tongyeong Following Heavy Rain Emergency recovery efforts in Geoje and Tongyeong, which suffered significant damage from record rainfall, are gaining momentum.Gyeongnam Province has mobilized 7,301 personnel, including public officials, military, police, firefighters, and volunteers, along with 1,109 pieces of equipment to restore infrastructure such as roads and water supply systems. The goal is to complete the restoration of public water facilities by the end of today. However, approximately 2,000 households remain without water due to damage to electrical and drainage systems in private facilities, including flooded officetels and apartment buildings, indicating that full restoration may take additional time.According to Gyeongnam Province, the heavy rainfall occurred from August 15 to 18 along the southern coast, with cumulative precipitation reaching 671 mm in Geoje, 550 mm in Tongyeong, and 396 mm in Goseong. The area of Hadun in Geoje recorded an astonishing 954 mm of rain, while Tongyeong and Goseong also experienced record rainfall of 776 mm and 509 mm, respectively.The torrential rain caused road washouts, landslides, and power outages, resulting in one fatality and three injuries. The emergency repair rate for roads has reached 92% in Geoje and 90% in Tongyeong, with power restoration in Tongyeong now complete. In Geoje, recovery efforts are ongoing in collaboration with Korea Electric Power Corporation.Water supply restoration is nearing completion. Gyeongnam Province reports that of the 27 damaged water supply sections in Geoje and Tongyeong, 19 sections are now supplying water to approximately 5,700 households. Some sections are still undergoing repairs, with a target of 100% restoration of public water facilities by the end of today.However, the restoration of water supply facilities does not guarantee immediate access to water for all households. In particular, some officetels and apartment buildings in Geoje have suffered damage to their electrical and drainage systems due to flooding in basements. With power cut off, water supply pumps are inoperable, leading to situations where residents cannot receive water despite the water supply lines being intact.A Gyeongnam Province official stated, "We aim to complete the restoration of public facilities today. However, private facilities that have experienced flooding, such as officetels and apartment buildings, need to conduct their own drainage work and restore electrical systems, which may require additional time for normal water supply to resume."Currently, it is estimated that around 2,000 households in Geoje are without water due to damage to private facilities. The extent of damage and the status of drainage work vary by building, making it difficult to determine a uniform timeline for restoration. Gyeongnam Province and Geoje City are providing emergency water supply support, including bottled water and water trucks, to affected buildings.Concerns about the safety of tap water among residents are also being addressed. Gyeongnam Province conducts daily water quality tests during the purification process, and households can request separate water quality tests from local authorities if they have concerns about their tap water.Gyeongnam Province is informing affected residents about recovery progress and the timeline for resuming water supply through media and local government websites, while announcements are being made in apartments and villages regarding the schedule for resuming supply.This heavy rainfall has highlighted the need for inspections and maintenance of vulnerable water supply facilities. Gyeongnam Province conducts annual maintenance projects for aging pipelines and plans to explore measures to enhance disaster response capabilities for facilities likely to experience repeated damage in the future.Support for affected residents continues. In Geoje and Tongyeong, 645 households with 1,199 individuals have evacuated, with 274 households and 419 individuals having returned home. Currently, 371 households with 780 individuals remain in temporary shelters. Gyeongnam Province is providing temporary housing, meals, essential supplies, mobile shower units, and disaster recovery programs.On August 19, Gyeongnam Province urgently allocated 1 billion won in disaster management funds and 2 billion won in special disaster grants to Geoje and Tongyeong. Additionally, 700 million won in disaster relief funds has been provided to support the recovery and stabilization of affected residents.Furthermore, on August 18, the province requested the government to declare a special disaster area and provide 3 billion won in special grants, actively responding to preliminary investigations by the Ministry of the Interior and Safety to confirm the requirements for special disaster areas.A Gyeongnam Province official stated, "We are mobilizing all available personnel and equipment to expedite recovery efforts so that residents can return to their daily lives as soon as possible. We will provide maximum support, including emergency water supply, to residents experiencing inconvenience due to damage to private facilities."* This article has been translated by AI. 2026-08-20 17:28:00
  • Jinju City Implements AI and Community Support to Address Welfare Needs
    Jinju City Implements AI and Community Support to Address Welfare Needs Jinju City in South Gyeongsang Province is operating a safety net that combines a big data-based identification system, community spaces, and food support programs to identify households in welfare crises.The initiative aims to proactively find citizens who may struggle to apply for welfare services and connect them with public and private services.The 'Welfare Blind Spot Discovery System,' which utilizes big data AI, identifies households at risk of welfare crises based on 47 types of crisis information. This system will be operated five times this year.Once a list of target households is created, tailored welfare teams in each district will conduct consultations and, if necessary, connect individuals to basic living security, emergency welfare, support for those just above the poverty line, community welfare projects, and disaster medical expense support.A city official stated, "We have completed two rounds so far and plan to finish the remaining ones by the end of the year." However, they noted, "When we conduct phone consultations with the list, most do not qualify as at-risk households," adding that there have been few cases that led to actual support beyond information provision or mail notifications.The number of identified at-risk households and the number of connections to welfare services have not yet been separately tallied.Starting this year, the 'Loneliness Crisis Response System' will conduct four annual rounds of discovery and investigation using 27 types of crisis information, applying a 'loneliness risk assessment tool.' When the system detects warning signs, district and city counseling staff will conduct phone consultations, and if they cannot reach the individual, they will visit the home directly.Additionally, the city is utilizing local human safety nets, such as honorary social welfare officials, to conduct field discoveries, a 'Welfare Crisis Alert App' for resident reports, notifications from tax delinquency management teams regarding suspected financially troubled individuals, the Gyeongnam Finding At-Risk Households project, and a reward system for reporting welfare crises.The community space 'Hamkkehamo' opened on June 17 and is available for use by all local residents, including single-person households. The first location is operated by the Jinju Regional Self-Support Center on Namgang-ro, while the second location is run by the Jinju City Association of the Disabled on the first floor of the Daebongsaetul Center on Uigok-gil. The space offers convenience foods like instant noodles and provides welfare information, aiming to identify isolated households through natural interactions.As of this month, the first location serves about 10 to 15 people daily, while the second location serves about 7 to 8 people, according to city officials.A city official remarked, "As we promote the space, the number of users is gradually increasing." However, they added that there have been no cases where individuals classified as at-risk households were connected to welfare services through their use of Hamkkehamo.The city is also running social networking programs such as 'Our Neighborhood Manager,' a neighbor check-in campaign, an SNS initiative for checking on single-person households, and self-help groups.The 'Just Dream' project supplements existing food markets and food banks by providing food and daily necessities to citizens who are in welfare blind spots or who find it difficult to seek help due to social stigma. Since May 20, it has been operating every Wednesday and Friday from 1 to 4 p.m. at the Jinju City Food Market's 'Just Dream Corner,' offering 3 to 5 packages per person, capped at 20,000 won. Users can access the service once a month, with a maximum of three visits.Unlike the food market, which pre-selects recipients through district offices at the beginning of the year, Just Dream is available to anyone without restrictions. During the process, social workers conduct basic consultations to assess crisis situations. From May to July, 570 packages were provided, and during the heatwave, ice water was also distributed. The city is also operating a 'Mobile Just Dream' service that delivers directly to those who apply through district offices.First introduced in Gimhae City last year, this initiative has been expanded to all of Gyeongsangnam-do this year, with Jinju City implementing it for the first time.A city official stated, "As public awareness increases, the demand for related services is steadily rising," adding that they plan to continue the program beyond next year.They emphasized, "Addressing welfare blind spots requires not only the efforts of administrative agencies but also the interest and participation of the entire community," stating their commitment to establishing a robust welfare safety net to identify at-risk households early and prevent social isolation, thereby safeguarding the ordinary lives of citizens.* This article has been translated by AI. 2026-08-20 17:24:00
  • OpenAIs ChatGPT Work Surpasses 10 Million Users, Targets Business Sector
    OpenAI's ChatGPT Work Surpasses 10 Million Users, Targets Business Sector OpenAI is targeting the business and knowledge work market with its ChatGPT Work, which is based on the coding agent Codex.On August 20, OpenAI held a demonstration of ChatGPT Work in Gangnam, Seoul, sharing real-world use cases from local experts. ChatGPT Work is designed to perform various tasks such as data research, analysis, and document creation, leveraging the capabilities of OpenAI's Codex coding agent.Eum Eun-sook, head of communications at OpenAI Korea, highlighted the competitive edge of the coding agent's capabilities. She stated, "Differences in coding abilities lead to variations in results among models. At this point, I believe OpenAI has a competitive advantage in this area."The number of users is rapidly increasing. According to OpenAI, Codex surpassed 3 million weekly active users (WAU) globally in April. Since the launch of ChatGPT Work in July, the combined WAU for both products has exceeded 10 million. The agent-based AI, which initially focused on development tasks, is now expanding into various knowledge work areas, including research, analysis, and document creation.As a result, domestic companies and institutions are increasingly adopting agent-based AI. OpenAI reports that various organizations, including Samsung Electronics, Samsung Display, and Seoul National University, are utilizing related services.In the corporate sector, the value of AI is growing as it evolves from simple question-answering chatbots to agents capable of performing actual tasks. Eum noted, "Previously, companies would ask, 'What is this?' and receive answers, but now agents are emerging that can complete actual work, increasing their utility."The expansion of ChatGPT Work is expected to contribute to OpenAI's revenue growth. Eum stated, "It seems likely to be very helpful for revenue." However, she clarified that there are currently no specific plans for an initial public offering (IPO).Meanwhile, on the same day, Sim Dae-yeol, an engineer at OpenAI Korea, demonstrated how to use ChatGPT Work to gather necessary information from work tools like Slack and Google Drive to create presentations, and how to regularly check and update project information through scheduled tasks.Real-world use cases in education and research were also shared. Go Gil-gon, head of the Informationization Office at Seoul National University and a professor at the Graduate School of Public Administration, introduced a research case where Codex was used to collect and structure statistics, laws, policy documents, and academic materials by country, automating everything from data analysis to drafting reports.* This article has been translated by AI. 2026-08-20 17:24:00
  • Mirae Asset Securities Launches Fourth IMA, Seeks 100 Billion Won in Subscriptions
    Mirae Asset Securities Launches Fourth IMA, Seeks 100 Billion Won in Subscriptions Mirae Asset Securities has launched its fourth Comprehensive Investment Account (IMA) product and is seeking 100 billion won in subscriptions.The company announced on August 20 that it will accept subscriptions for the 'Mirae Asset IMA No. 4' from August 24 to 27, with the possibility of early closure if the subscription limit is reached.The minimum investment amount is 1 million won. The Mirae Asset IMA No. 4 is a performance-based product with a three-year maturity, reflecting the recent rise in market interest rates and the increase in the benchmark rate by the Monetary Policy Committee, raising the performance fee benchmark return from the previous 4% to 5% per annum.A performance fee rate of 40% will apply to returns exceeding the benchmark return. However, it is important to note that the benchmark return is not a target return, and the actual returns will vary based on performance.Mirae Asset Securities is responsible for the principal repayment and will pay returns based on performance. The strategy aims to pursue stable interest income through interest-bearing assets while also investing in global innovative companies and mezzanine financing to secure additional returns.Key investment assets include publicly and privately placed corporate bonds, acquisition financing, receivables securitization loans, mezzanine (such as CB and EB), and RCPS (redeemable convertible preferred stock). The operational status can be checked through quarterly reports provided the following month, as well as on the Mirae Asset Securities mobile application M-STOCK and its website.To celebrate the product launch, an event will be held. Customers who subscribe online will receive mobile gift certificates based on their investment amount, while existing IMA subscribers will have a chance to win prizes through a lottery.A representative from Mirae Asset Securities stated, “All previous IMAs from No. 1 to No. 3 have sold out, confirming high customer interest. As customer demand continues to grow, we will enhance product competitiveness by utilizing various investment assets and management strategies.”* This article has been translated by AI. 2026-08-20 17:20:00
  • New Regulations Limit Loans from Prepaid Funeral Companies to 50% of Capital
    New Regulations Limit Loans from Prepaid Funeral Companies to 50% of Capital Prepaid funeral companies and other installment service providers will be restricted to lending no more than 50% of their capital to controlling shareholders and related parties. Additionally, a unified information system will be established to allow approximately 11 million prepaid funeral subscribers to verify their payments and compensation procedures all at once.The Fair Trade Commission announced that the amendment to the installment sales law passed the National Assembly on August 20.There are about 11 million subscribers to prepaid funeral services in South Korea, with total advance payments reaching 11.3 trillion won.The revised law limits the total amount of credit that prepaid funeral companies can extend to controlling shareholders and related parties to 50% of their capital. A controlling shareholder is defined as the largest shareholder holding more than 30% of the total issued shares, while related parties include spouses, affiliated companies, and executives.Credit extensions include not only loans but also guarantees and the purchase of securities for financial support. Those who exceed the credit limit may face up to three years in prison or fines of up to 100 million won.Even transactions within the limit require the consent of all registered executives or a unanimous board resolution if the amount exceeds a threshold set by presidential decree. After such transactions, companies must report to the Fair Trade Commission and disclose the information on their websites. Violations can result in fines of up to 30 million won. The Fair Trade Commission and the Financial Supervisory Service will also have the legal basis to form a joint investigation team to examine credit extension practices.To facilitate consumer access to subscription information, a unified information system for prepaid funeral transactions will be established. Consumers will be able to check contract dates, payment amounts, compensation procedures, and company information through this system, which will link data currently scattered among businesses, banks, and mutual aid associations.If a prepaid funeral company goes out of business, banks or mutual aid associations must notify the city or provincial governor, who will then announce the information. Companies are required to keep records related to contract cancellations and refunds for up to five years and make them accessible to consumers.The accounting audit reports of companies will also need to detail transactions with controlling shareholders and related parties, as well as the status of investment assets, as specified in subordinate regulations.This amendment does not increase the percentage of compensation that subscribers can receive. Under current law, in the event of a company going out of business, subscribers can recover 50% of their advance payments through compensation agencies. The focus of this amendment is to ensure quicker and more transparent verification of incidents and contract/payment information.The reasons for business suspension will expand from eight to 31, including failure to pay refunds due to contract cancellations, improper use of consumer information, and exceeding the credit extension limit for controlling shareholders. The Fair Trade Commission can conduct market surveys and require businesses to submit data, with fines of up to 30 million won for non-compliance or false submissions.If a mutual aid association's capital falls below 20 billion won or if it fails to comply with Fair Trade Commission corrective orders three times in the past five years, its establishment approval can be revoked. If the Fair Trade Commission requests disciplinary action or dismissal of an association's executive, that executive will be immediately suspended from duty until a decision is made.The revised law will take effect one year after its promulgation. However, provisions related to the establishment of the unified information system will take effect immediately, and businesses and controlling shareholders that currently exceed the credit extension limit will have one year to rectify the situation.* This article has been translated by AI. 2026-08-20 17:16:00
  • Opposition Critiques Lee Governments First Year at Policy Forum
    Opposition Critiques Lee Government's First Year at Policy Forum The People Power Party held a forum on August 20 to evaluate the policies of the Lee Jae-myung government, which has been in power for over a year, criticizing its failures in areas such as the economy and national security. They expressed concerns that the livelihoods of ordinary citizens and the middle class are hanging by a thread, with alarming signals emerging from various sectors of society.Party leader Jang Dong-hyuk attended the forum, organized by the party's policy committee and the Yeouido Institute, and stated, "It seems that even a few nights of discussion would not be enough to cover this topic," adding, "The past year of this administration has been a parade of failures and tyranny."Jang assessed that "in just one year, the livelihoods have collapsed, the economy has deteriorated, public safety is unstable, and security is on the brink of collapse," declaring that "the very existence of South Korea is in jeopardy." He criticized the government for propping up the stock market with public pension funds and encouraging citizens to take on debt, stating that high inflation, high exchange rates, and high interest rates have become the new normal, leaving small business owners and self-employed individuals struggling to survive.Floor leader Jeong Jeom-sik also remarked that "this government's governance has been characterized by ignoring the voices of the people, legislative monopolization without cooperation, and divisive politics," emphasizing that criticism of the government's mistakes should not stop there. He pledged that the People Power Party would take the lead in correcting the current administration's failures.Jeong pointed out the government's missteps, including the devastation of the capital market and the livelihoods of ordinary citizens, the real estate policies that have become a massive threat to the lives of the people, and the issues of high inflation, high exchange rates, and high interest rates. He highlighted that the legislative monopolization by the ruling party has accelerated the 'exit' of companies overseas, while youth employment rates have plummeted to 44%.At the forum, experts from various fields gathered to critique government policies in areas such as the stock market, real estate, high inflation, self-employment, and national security, including military disarmament, unconstitutional North Korea policies, trade with the U.S., and 'show diplomacy.'Lim I-ja, who was appointed as the policy committee chair just before the forum, stated, "We will transform into a competent policy party. Under the principle that the answers lie in the field, we will make the voices of the people the starting point of our policies," pledging to prioritize the recovery of the economy in all policy initiatives and to present effective alternatives.She added, "We will firmly oppose the legislative monopolization of the ruling party, but if policies are necessary for the people's lives, we will collaborate with anyone," emphasizing that they will earn the trust of the public through policies rather than words, and results rather than slogans.* This article has been translated by AI. 2026-08-20 17:16:00
  • Korean 30-Year Treasury Bond Rates Hit Record High Amid Global Trends
    Korean 30-Year Treasury Bond Rates Hit Record High Amid Global Trends The yield on South Korea's 30-year government bonds has soared to an all-time high, a trend that cannot be solely attributed to interest rate hikes. Analysts suggest that a combination of global long-term interest rates, inflation uncertainties, and government bond supply pressures are contributing to the increased 'term premium' on long-term bonds.According to the Financial Investment Association, as of August 19, the yield on 3-year government bonds was 3.798%, 10-year bonds were at 4.337%, and 30-year bonds reached 4.721%. Compared to the Bank of Korea's interest rate hike on July 16, the 3-year yield has decreased by 5 basis points (1 basis point = 0.01 percentage points), while the 10-year yield rose by 4 basis points, and the 30-year yield surged by 25 basis points. The 30-year yield peaked at 4.751% on August 18, marking its highest level since its first issuance in 2012.This recent rise in interest rates cannot be explained solely by expectations of future rate hikes from the Bank of Korea. If the potential for additional rate increases were the main driver, yields on the 2-3 year bonds, which are sensitive to monetary policy, would also be rising. However, short-term yields have remained stable, while the increase in long-term yields has been pronounced, indicating a phenomenon known as 'bear steepening.' Market observers believe that the influence of term premiums, reflecting global interest rates, inflation, and government bond supply, has become more significant than expectations for domestic rate hikes.Kim Myung-sil, a researcher at iM Investment & Securities, noted, "A notable characteristic of the recent domestic bond market is that the increase in rates is concentrated in the long-term segment rather than being uniform across all maturities. The bear steepening is more influenced by supply and demand than by policy decisions."The rise in long-term rates is significantly impacted by trends originating in the United States. The yield on U.S. 30-year Treasury bonds has recently reached its highest level in 19 years. Factors such as the U.S. fiscal burden, increased government bond supply, and inflation uncertainties due to rising international oil prices have led to higher required yields for long-term bond investors. Since domestic long-term bonds are also influenced by global bond yields, it is difficult to avoid the impact of rising U.S. long-term rates.Domestic supply and demand conditions are also pushing long-term rates higher. While the burden of government bond supply is increasing, the buying strength of long-term investors, such as insurance companies and pension funds, has weakened compared to previous years. In a situation where supply is increasing but demand is insufficient to absorb it, investors are likely to demand higher yields, particularly on ultra-long bonds.Another factor drawing market attention is fiscal policy. If the budget proposal to be announced at the end of this month includes larger-than-expected fiscal expenditures and government bond issuance, additional upward pressure on long-term rates may occur. In fact, when discussions about supplementary budgets arose in January, the yield on 10-year government bonds rose by 8.8 basis points in a single day, while 20-year and 30-year bonds jumped by over 10 basis points. The market reacted immediately to the potential for increased government bond supply.As a result, there are speculations that a movement similar to a 'bond vigilante' group may be emerging in South Korea. This term refers to investors who, concerned about fiscal deficits and rising national debt, sell government bonds or demand higher yields, thereby constraining government fiscal expansion through rising market rates. In major countries like the U.S., recent fiscal burdens have also pushed long-term bond yields higher, reigniting discussions about bond vigilantes.However, it is premature to label the surge in domestic long-term rates as the emergence of a South Korean version of bond vigilantes. The rise in U.S. long-term rates, inflation uncertainties, and changes in the supply and demand for ultra-long bonds are also contributing factors beyond fiscal policy. It is essential to distinguish between a simple increase in bond supply leading to lower prices and higher yields, and investors demanding a separate risk premium due to concerns about fiscal health.The key will be future developments. If long-term rates continue to spike each time fiscal expansion or increased bond issuance is announced, and if the premium on 10- and 30-year bonds remains higher than that on short-term bonds, it could reinforce the interpretation that the market is sending warning signals to the government regarding fiscal policy.Kim Chan-hee, a researcher at Shinhan Investment Corp., stated, "Considering the annual issuance plan for long-term bonds, there is a possibility that the issuance of 30-year bonds will increase again starting in September. In the absence of clear fundamental reversal signals or triggers for supply reduction, it is difficult to expect a trend reversal."* This article has been translated by AI. 2026-08-20 17:12:10