Korea's Q2 GDP to slow from Q1 but on track for around 3% annual growth SEOUL, July 20 (AJP) - South Korea's economy is expected to have expanded at a slower pace in the second quarter after a surprisingly strong start to the year, but growth is still likely to remain robust enough to keep the economy on track for around 3 percent expansion in 2026. The Bank of Korea will release its preliminary second-quarter gross domestic product data on Thursday, providing the first official gauge of whether the country's semiconductor-led export boom has co July 20, 2026

BOK to expand CBDC-linked deposit-token trial in Sept SEOUL, July 20 (AJP) - The Bank of Korea is preparing to begin the second phase of its deposit-token trial as early as September, expanding the experiment to peer-to-peer transfers, biometric authentication and government-fund disbursement. The central bank, the Financial Services Commission and the Financial Supervisory Service are building the required systems and completing regulatory procedures for the next phase of Project Hangang, according to financial industry sources. Un July 20, 2026

South Korea stays awash in cash, bolstering case for rate hike SEOUL, July 15 (AJP)-South Korea's financial system is becoming increasingly awash with cash, adding to the Bank of Korea's case for an interest-rate hike that could come as early as Thursday, as abundant liquidity continues to fuel red-hot asset markets from stocks to housing. Broad money, or M2, under the Bank of Korea's current definition averaged 4,184.4 trillion won ($2.81 trillion) in May, up 5.8 percent from a year earlier, slightly faster than April's 5.7 p July 15, 2026

Seoul reaffirms 3% growth target, addresses high prices SEOUL, July 15 (AJP) - President Lee Jae Myung pressed economic policymakers Wednesday to identify the structural causes of South Korea’s high living costs and address barriers delaying the country’s inclusion in MSCI’s developed-market index. The government reaffirmed its projection that Asia’s fourth-largest economy will grow 3.0 percent this year, supported by strong semiconductor exports and investment in artificial intelligence. “South Korea i July 15, 2026

Korea's youth and manufacturing hiring subdued despite June job recovery SEOUL, July 15 (AJP) - South Korea's youth and job-sensitive manufacturing and construction hiring remained subdued despite headline payroll increase in June, data showed Wednesday. The number of employed people aged 15 and older rose by 63,000 from a year earlier to 29.154 million in June, according to the Ministry of Data and Statistics. The increase reversed a decline of 40,000 in May. The recovery, however, remained uneven. Employment among people aged 15 to 29 fell by July 15, 2026

Korea's import prices fall steepest in 3 years, chip exports still firm SEOUL, July 15 (AJP) - South Korea's import prices posted their steepest monthly decline since late 2022 in June as lower oil prices reduced import costs, while semiconductor exports remained resilient, Bank of Korea data showed Wednesday. The won-denominated import price index fell 4.4 percent from May, reversing a 0.2 percent increase a month earlier, according to preliminary export-import price data released by the central bank. It was the sharpest monthly decline since Decem July 15, 2026

Home ownership becoming a pipe dream for young Korean SEOUL, July 14 (AJP) - Home ownership among young South Koreans has fallen at one of the fastest rates in recent years, underscoring how soaring housing costs are pushing ownership further out of reach even as the government expands housing support that remains largely centered on public rentals rather than ownership. An analysis of anonymized household microdata from the Survey of Household Finances and Living Conditions, reported by Munhwa Ilbo on July 13, showed that the owner-oc July 14, 2026

Seoul ups 2026 growth outlook to 3%, nominal growth at 30-yr high SEOUL, July 14 (AJP) -South Korea's economy is expected to expand 3 percent this year - its fastest pace in five years despite the fallout from the Middle East conflict - thanks to an unprecedented semiconductor boom, the government said Tuesday, sharply lifting its growth target from 2 percent. Nominal gross domestic product is projected to jump 12.3 percent this year, matching the strongest growth since 1996, as soaring semiconductor prices sharply improve South Korea's July 14, 2026

Gov't unveils over 800 trillion won budget plan with push for AI and chips SEOUL, July 13 (AJP) - South Korea plans to increase next year's government spending to more than 800 trillion won (US$533 billion) and set up a fund to use extra tax revenue for investment in artificial intelligence (AI), semiconductors, regional development and younger generations. The fiscal plans were unveiled at a meeting on Monday chaired by President Lee Jae Myung at Cheong Wa Dae, with key Cabinet members and other officials in attendance. Minister of Planning and Bud July 13, 2026

Gov't tightens household loans while mulling pension-backed borrowing options SEOUL, July 13 (AJP) - South Korea is tightening conventional household lending to contain debt growth while considering measures that could make it easier to borrow and invest against retirement savings, exposing a potential contradiction in its financial policy. One channel of household leverage is being restricted just as another could be opened. Household lending at the country's five largest banks - KB Kookmin, Shinhan, Hana, Woori and NH NongHyup - excluding government- July 13, 2026