South Korea to raise FX reporting threshold for foreign banks SEOUL, August 19 (AJP) - South Korea will raise the reporting threshold for foreign-currency borrowing by local branches of foreign banks to US$100 million from $50 million, as part of efforts to ease foreign-exchange rules and improve market access, the Ministry of Economy and Finance said on Wednesday. The limit on cash-pooling arrangements will also be raised to at least $100 million from $50 million, Finance Minister and Deputy Prime Minister Koo Yun-cheol said at a meeting with August 19, 2026

S. Korea says no one knew Trump would cut joint drills SEOUL, August 19 (AJP) - South Korea had no advance word that President Donald Trump would order this week's combined military exercises cut back, and neither did officials in his own administration, the Minister of Foreign Affairs said Wednesday. The move shortened the exercise by nearly a week, underscoring a sudden and highly unusual shift in alliance operations. Cho Hyun told the National Assembly's Foreign Affairs and Unification Committee that the government learned August 19, 2026

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

Finance minister denies discrimination against US firms amid business concerns SEOUL, August 19 (AJP) - Deputy Prime Minister and Minister of Finance and Economy Koo Yun-cheol said Wednesday that the South Korean government would never discriminate against foreign companies, stressing that businesses investing in the country should be treated the same as South Korean firms, regardless of where they are headquartered. At a luncheon meeting in central Seoul hosted by the American Chamber of Commerce in Korea (AMCHAM) in central Seoul, Koo made the remarks amid o 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

Chinese FM set to visit Seoul for talks this week SEOUL, August 18 (AJP) - China's Foreign Minister Wang Yi is set to visit Seoul this week, the Ministry of Foreign Affairs said on Tuesday. At a regular press briefing, the ministry's spokesperson Park Doo Soon said Wang is scheduled to arrive in Seoul on Wednesday for a two-day visit and hold talks with his South Korean counterpart Cho Hyun. Their talks are expected to cover various issues including bilateral ties, the situation on the Korean Peninsula, and other regiona August 18, 2026

Seoul expects Trump message to lead to talks with Pyongyang SEOUL, August 18 (AJP) - South Korea expects President Donald Trump's outreach to Kim Jong Un to produce meaningful talks between Washington and Pyongyang, the foreign ministry said Tuesday. The Ministry of Foreign Affairs did not disclose whether Seoul had been told in advance that the North Korean leader had replied. Foreign ministry spokesperson Park Doo-soon said the two allies had consistently declared themselves open to dialogue with North Korea and were maintaining clos 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