news highlight

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  Fiscal deficit narrows on stronger tax revenue, debt burden persists SEOUL, May 14 (AJP) — South Korea’s fiscal balance improved significantly in the first quarter of this year as tax revenues continued to recover, feeding the government rationale for more aggressive policy to counter import inflationary risks amid protracted Middle East conflicts. According to the Ministry of Planning and Budget on Thursday, total revenue from January to March reached 188.8 trillion ($128.5 billion) won, an increase of 28.9 trillion won from a yea May 14, 2026
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  Complaints involving online platforms surge, with Coupang most frequent SEOUL, May 13 (AJP) - A record number of disputes and similar cases were handled last year, driven largely by a sharp increase in online platform-related complaints, with Coupang accounting for the largest among platform operators, the Korea Fair Trade Mediation Agency (KFTMA) said on Wednesday. According to the agency, the number of such cases stood at 4,726 in 2024, up 17 percent from 4,041 a year earlier, the highest level since relevant statistics began being compiled in 2008. May 13, 2026
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  Lee hosts U.S., Chinese economic chiefs ahead of Trump-Xi summit SEOUL, May 13 (AJP) - President Lee Jae Myung on Wednesday had back-to-back meetings with U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, who visited South Korea just a day before the scheduled U.S.-China summit in Beijing. According to the presidential office, Lee met He and Bessent separately on Wednesday morning. Following their meetings with the president, the two officials united at Incheon International Airport for last-minute fine-tuning ahead May 13, 2026
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  KDI bumps up 2026 growth estimate to 2.5%, chips drive half of upgrade SEOUL, May 13 (AJP) -State think tank Korea Development Institute on Wednesday projected South Korea’s economy to grow at its fastest pace in three years at 2.5 percent this year, while inflation is expected to accelerate to 2.7 percent — a combination suggesting the economy may sidestep stagflation fears for now even as growth momentum is likely to cool next year alongside moderating chip demand. At the same time, the institute warned inflation risks were intensifying f May 13, 2026
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  U.S. appeals court revives Trump tariff, renewing uncertainty for Korean Inc. SEOUL, May 13 (AJP) - A U.S. federal appeals court ruling temporarily reinstating the Trump administration’s 10 percent global tariff has created fresh uncertainty for South Korean exporters and the $350 billion investment commitment underpinning Seoul’s trade deal with Washington. The ruling came just days after a lower court declared the 10 percent global tariff unlawful. The U.S. Court of Appeals for the Federal Circuit issued the administrative stay Tuesday, accor May 13, 2026
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  South Korea outpaces peers in Q1 growth; structural risks persist SEOUL, May 12 (AJP) — The South Korean economy was the best performer among major economies in the first quarter of this year, benefiting from a base effect from a contraction in the fourth quarter of last year and chip boom. South Korea's real gross domestic product (GDP) increased by 1.7 percent in the first quarter from the previous quarter - the highest growth rate among the 22 countries that have released first-quarter flash estimates as of Monday. This outper May 12, 2026
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  Seoul hints at fiscal expansion for H2 and 2027, sending bond yields to hike-cycle highs SEOUL, May 12 (AJP) — President Lee Jae Myung on Tuesday openly challenged the long-held policy rationale for fiscal tightening to rein in South Korea’s highly leveraged economy, signaling a more expansionary fiscal stance for the second half of this year and 2026 as growth concerns deepen amid prolonged Middle East tensions. “This is a time for investment to bolster growth potential,” Lee said during an emergency cabinet meeting, ordering the government to May 12, 2026
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  Financial authorities to crack down on misuse of state-supported loans SEOUL, May 11 (AJP) - Financial authorities will step up efforts to prevent some businesses from profiting by lending government-funded money to their subcontractors at excessively high interest rates. The Financial Services Commission (FSC) and the Fair Trade Commission (FTC) said on Monday that they will strengthen monitoring and review processes to crack down on improper business practices and other irregularities. They added that companies found engaging in these practices will May 11, 2026
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  Korea's inflation may soar to 3.7% if Gulf oil crisis persists: KDI SEOUL, May 11 (AJP) — South Korea's inflation could run as high as 3.7 percent this year under the worst-case scenario of an energy shock from the Middle East crisis, according to state think tank Korea Development Institute on Monday. The KDI, which is due to announce its revised economic outlook on Wednesday, predicted a bump-up of between 1 and 1.6 percentage points from this year’s estimated inflation rate of 2.1 percent. The forecast, however, excludes po May 11, 2026