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

Korea's rate hike to 2.75% in July seen unanimous in AJP poll SEOUL, July 10 (AJP) - The Bank of Korea is expected to resume monetary tightening next week with its first interest-rate increase in three and a half years, according to an AJP survey of economists, with an overwhelming majority also expecting another rate hike before the end of the year. All 10 economists surveyed by AJP forecast the Monetary Policy Board will raise the benchmark interest rate by 25 basis points to 2.75 percent from 2.50 percent at its July 16 meeting, marking the July 10, 2026

South Korea to reassess single-stock leveraged ETFs amid volatility concerns SEOUL, July 10 (AJP) - South Korea's newly-introduced single-stock leveraged exchange-traded funds (ETFs) are under scrutiny after those linked to the country’s largest two chipmakers suffered heavy losses, raising concerns about market volatility and investor protection. In a press briefing at Cheong Wa Dae on Friday, chief presidential secretary for policy Kim Yong-beom said that the government has been holding regular meetings with the country's top financial policy July 10, 2026

Korea, Mongolia expand cooperation in critical minerals, AI, finance SEOUL, July 10 (AJP) - South Korea and Mongolia agreed to expand cooperation in critical minerals, artificial intelligence, renewable energy and healthcare, while strengthening ties in central banking and trade finance. Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol held separate meetings Thursday with Mongolian First Deputy Prime Minister and Economy and Development Minister Jadamba Enkhbayar and Finance Minister Zagdjav Mendsaikhan during President Lee Jae July 10, 2026

Lee's approval rating edges down to 53% SEOUL, July 10 (AJP) - President Lee Jae Myung's approval rating edged down slightly this week after a brief rebound last week. In a survey of more than 1,000 adults nationwide conducted by pollster Gallup Korea earlier this week, 53 percent of respondents gave a positive rating to Lee's job performance, down 1 percentage point from a week earlier. But his disapproval rating also fell 1 percentage point to 35 percent, with 12 percent undecided. Among those July 10, 2026

Lee begins 2nd day of visit after sharing vision for 'golden' era with Mongolian leader SEOUL, July 10 (AJP) - President Lee Jae Myung is set to begin the second day of his three-day state visit to Mongolia by visiting a memorial honoring independence activist Lee Tae-jun who practiced medicine there. Lee arrived in Ulaanbaatar the previous day, marking the first such visit to Mongolia by a South Korean president in about 15 years. Lee is then scheduled to hold a luncheon meeting with South Korean residents there, before meeting with Mongolia's parli July 10, 2026

PPP leader turns to hardline conservatives amid loosening grip within party SEOUL, July 9 (AJP) - Jang Dong-hyuk, the leader of the main opposition People Power Party (PPP) has taken his fight over a ballot shortage in last month's local elections out of Parliament and onto the streets, alarming lawmakers in his own party who fear that the campaign could pull conservatives back toward election fraud conspiracy theories. Jang began a nationwide tour on Wednesday to demand a re-run of the June 3 local elections along with an investigation into the ballot July 9, 2026

BOK reaffirms rate-hike stance on stronger inflation and growth SEOUL, July 09 (AJP) - The Bank of Korea reiterated Thursday that the benchmark rates should go higher, given inflation running above the 2 percent target, stronger growth, and risks to financial stability. The latest remarks reinforced signals already sent at the BOK’s May policy meeting, when 19 of 21 dots in the central bank’s six-month conditional rate outlook pointed to levels above the current 2.50 percent, followed by Shin’s repeated public comments in June July 9, 2026

Lee arrives in Ulaanbaatar for summit with Mongolian president SEOUL, July 9 (AJP) - President Lee Jae Myung arrived in Ulaanbaatar on Thursday after concluding his visit to Ankara, Türkiye for the North Atlantic Treaty Organization (NATO) summit. Lee is set to hold a summit with Mongolian President Ukhnaagiin Khürelsükh, marking the first time in 15 years that a South Korean leader has visited Mongolia on a state visit. The two leaders are expected to discuss ways to strengthen cooperation on supply chains for cri July 9, 2026