South Korea's customs service and national tax agency jointly collected 1.3 billion won (US$880,000) from delinquent taxpayers by sharing databases and conducting investigations, uncovering concealed assets and fraudulent activities like staged divorces.
South Korea's labor force participation rate for 15-29 year olds dropped to 47.2% in May, a 2.3 percentage point decrease from last year, reflecting increasing job-finding difficulties and a rise in youth unemployment to 7.2%.
HAEAHN Architecture Inc. won the design bid for a new presidential office in Sejong, incorporating traditional Korean elements. The project aims for completion by August 2029, though full relocation may require a constitutional amendment.
South Korea's Science Minister Bae Kyung-hoon stated that frontier AI models are strategic geopolitical assets, akin to nuclear weapons, and reiterated the country's need to develop its own frontier AI model to achieve world-class competitiveness. He also highlighted South Korea's aim to be a "full-stack" AI provider to nations like Tibet and Mongolia.
South Korea's Science Minister Bae Kyung-hoon stated that frontier AI models are strategic geopolitical assets, akin to nuclear weapons, and reiterated the country's need to develop its own model. His comments followed the launch of a new Chinese AI system and a U.S. ban on foreign access to advanced AI, highlighting the global competition.
South Korea's jobless college graduates reached 481,000 in Q2, a five-year high, with young adults most affected. The Ministry of Data and Statistics links the rise to a tightening job market and the Middle East crisis.
The South Korean government is reviewing support measures for Homeplus Co. workers and subcontractors after a court terminated the supermarket chain's rehabilitation proceedings. The government has pledged financial aid, including substitute payments for unpaid wages and low-interest loans.
South Korea will impose anti-dumping tariffs of 25.79% to 31.55% on PVC paste resin from Germany, France, Norway, and Sweden from next month until August 2031. The decision follows a complaint by Hanwha Solutions Corp. against European exporters.
South Korea aims to boost economic cooperation with Mongolia, focusing on supply chains, renewable energy, and AI. Finance Minister Koo Yun-cheol met his Mongolian counterpart, Jadamba Enkhbayar, to discuss expanding strategic ties and a new cancer center project.
Labor and management representatives narrowed the gap in their minimum wage proposals for next year to 690 won (US$0.46). The labor side proposed 11,220 won, while management proposed 10,530 won.
Labor and management representatives narrowed their minimum wage proposals for next year to a 730 won difference. Labor proposed 11,250 won per hour, while management proposed 10,520 won. The Minimum Wage Commission must finalize the decision by mid-July.
Labor and management representatives narrowed the gap in their minimum wage proposals for next year to 860 won. Labor proposed 11,350 won and management proposed 10,490 won in their seventh revisions during a Minimum Wage Commission meeting in Sejong.
Bank of Korea Governor Shin Hyun-song indicated a rate hike is necessary at an appropriate time, citing inflation above target and financial stability risks. He also noted solid economic growth prospects driven by semiconductors and eased geopolitical tensions.
In 2025, Vietnamese nationals became the largest group of foreigners entering South Korea for long-term stays, surpassing those from China for the first time since 2000. The total number of long-term foreign arrivals decreased slightly from the previous year.
South Korea's Fair Trade Commission (FTC) has fined eight local distributors of SolidWorks software a combined 2.3 billion won (US$1.52 million) for price rigging. The distributors colluded from 2021 to 2024, fixing minimum sales prices and avoiding competition, which led to a 53.8% increase in software purchase prices for local companies.
Bank of Korea Governor Shin Hyun-song indicated a rate hike is necessary at an appropriate time, citing inflation above target and financial stability risks. He also noted solid economic growth prospects due to the semiconductor industry and eased geopolitical tensions.
South Korea's fiscal balance improved in the first five months of 2026 due to robust tax revenue, driven by strong corporate earnings and a booming stock market. The managed fiscal balance deficit narrowed by 6.8 billion won compared to the previous year.
The Asian Development Bank (ADB) has raised South Korea's economic growth forecast for 2024 to 2.6%, up from 1.9% in April, driven by strong global AI-related demand. The ADB also projects stable private consumption and expects the semiconductor industry to offset global economic pressures.
The IMF has raised South Korea's 2026 growth forecast to 2.6%, citing strong global demand for memory chips and AI adoption, which offsets the impact of the Middle East war. This projection is the highest among advanced economies in the IMF's report.
South Korea's economy is recovering, driven by strong semiconductor exports offsetting a manufacturing slowdown. Monthly exports exceeded $100 billion in June, with semiconductors nearly tripling year-on-year due to AI demand. High oil prices and a weaker won pose inflation risks.
South Korea's Fair Trade Commission (FTC) has initiated a deliberation process against NXP Semiconductors and Analog Devices Inc. for alleged violations of fair trade rules, including restricting distributors and fixing profit margins. Potential fines could reach millions of dollars.
South Korea is prioritizing the internationalization of the Korean won as a key task to advance its foreign exchange and financial markets. A task force discussed transforming the won into a freely convertible currency and managing potential risks.
South Korea's Finance Minister Koo Yun-cheol pledged efforts to stabilize livelihoods due to market volatility and Middle East war impacts. He highlighted the need to address economic disparity and foster new growth engines beyond semiconductors and AI.
Labor representatives have reduced their hourly minimum wage proposal for next year to 11,450 won (US$7.52), narrowing the gap with the business side's offer. Despite the reduced difference, the two sides failed to reach an agreement in the latest Minimum Wage Commission session.
