KDI raises South Korea's growth forecast to 3.2% SEOUL, August 19 (AJP) - South Korea is expected to grow 3.2 percent this year, the Korea Development Institute said on Wednesday. The revised outlook is higher than its previous forecast of 2.5 percent in May, as well as the government's 3 percent estimate and the Bank of Korea (BOK)'s current forecast of 2.6 percent. The state-run think tank attributed the stronger outlook to the global artificial intelligence (AI)-led boom, which has boosted semiconductor exports and faci August 19, 2026

Household debt surpasses over 2,000 trillion for 1st time SEOUL, August 19 (AJP) - South Korea's total household debt surpassed 2,000 trillion won for the first time in the second quarter, driven by increased borrowing for home purchases and a stock-market rally, adding to the Bank of Korea (BOK)'s policy dilemma after it raised its benchmark interest rate last month. Outstanding household credit reached a record 2,019.8 trillion won (US$1.35 trillion) at the end of June, up 25.9 trillion won from three months earlier, according to August 19, 2026

Race heats up for BOK deputy governor as incumbent steps down this week SEOUL, August 18 (AJP) - Park Jong-woo, a high-ranking official at the Bank of Korea who currently serves as an assistant governor, is emerging as a leading contender for the deputy governor post, which combines responsibility for day-to-day operations with a vote on interest rates. Incumbent Ryoo Sang-dai's term expires Aug. 20. Other senior BOK officials including Kwon Min-soo, and former BOK executives Lee Hwan-seok, Chung Kyu-il, Lim Hyung-jun and Cho Hong-kyun are also a August 18, 2026

Moody's raises growth forecast for South Korea, putting BOK in dilemma over rate hike SEOUL, August 18 (AJP) - Global ratings agency Moody's raised its growth forecast for South Korea to 3.5 percent in a report published last week. The stronger outlook could support another interest rate hike, although strong exports and already high borrowing costs may reduce the need for the Bank of Korea to raise rates again soon. The forecast also put South Korea's growth at 2.7 percent for next year. The 2026 forecast was 1 percentage point higher than Moody's 2.5 pe August 18, 2026

Young workers hit hardest by job losses in AI-exposed industries SEOUL, August 18 (AJP) - Industries heavily exposed to artificial intelligence (AI) accounted for 94 percent of the decline in jobs covered by the National Pension Service (NPS) among younger workers over the past four years, the Bank of Korea said Tuesday. However, it cautioned that the findings do not prove AI caused the job losses. The number of jobs held by people aged 15 to 29 fell by 285,000 between June 2022 and June 2026. About 268,000 of those lost jobs were in industries w August 18, 2026

Korea's legacy M2 growth hits 53-mo high, reviving liquidity concerns SEOUL, August 14 (AJP) - South Korea’s legacy broad-money measure rose 12.3 percent in June from a year earlier, its fastest pace in four years and five months, reviving concerns that liquidity is building too quickly even as the current M2 gauge remained below its long-term average. The Bank of Korea said Friday that growth in legacy M2 accelerated from 8.0 percent in December to 9.1 percent in February, 10.4 percent in April, 11.6 percent in May and 12.3 percent in June. August 14, 2026

Korea's July import prices fall as stronger won masks cost rebound SEOUL, August 14 (AJP) - South Korea’s import prices eased for the second straight month in July, backed by a stronger won and lower oil prices and further flagging a disinflation path, Bank of Korea data showed Friday. The won-denominated import price index stood at 160.09, down 1.0 percent from June after a revised 4.2 percent decline the previous month. The year-on-year rate nevertheless remained in double digits at 18.7 percent. Measured in contract currencies, however August 14, 2026

Chip boom masks Korea's demand-led disinflation risk SEOUL, August 13 (AJP) - Before U.S. inflation eased in July, South Korea's data were already flashing signs of a disinflationary turn, as sluggish consumption weakened the transmission of strong chip-led growth into broader price pressure and defied expectations that inflation would accelerate further in the second half. The consumer price index stood at 119.77 in July, up 2.8 percent from a year earlier but easing from 3.2 percent in June, bringing inflation below 3 percent f August 13, 2026

Korea's fiscal deficit hits 3-year midyear low SEOUL, August 13 (AJP) - South Korea’s managed fiscal deficit narrowed to 84.4 trillion won ($59.6 billion) in the first half, its smallest midyear shortfall in three years, as the semiconductor upcycle and buoyant asset markets helped revive tax receipts and lift government revenue faster than spending. The Ministry of Planning and Budget said Thursday that total revenue rose 19.1 percent from a year earlier to 381.9 trillion won in the January-June period, while expenditure August 13, 2026

Seoul moves to curb fresh food prices as heat bites SEOUL, August 13 (AJP) - South Korea will spend 30 billion won ($21.2 million) on seafood discounts and expand emergency fish releases and farm aid as prolonged heat, drought and unusually warm seas threaten to push up food prices. The measures were announced Thursday at a joint economic and cost-of-living meeting chaired by Deputy Prime Minister and Minister of Finance and Economy Koo Yun Cheol. The government issued a package aimed at stabilizing agricultural, livestock and fishe August 13, 2026