The government will clamp down on those suspected of taking expedient means to pass on wealth to their children as a part of measures to eradicate real estate speculation and fight corruption, Finance Minister Hong Nam-ki said Wednesday. Since March, the National Tax Service has been conducting a special investigation on suspected tax evasion by more than 800 people who sought to profit from speculative or illegal property transactions. The large-scale probe was launched in the wake of a scan

Successful digital transformation requires not only technological change but also digital capabilities ranging from creating a strong customer experience to reinventing business models, the chief strategist for Shinhan Financial Group’s digitalization said Tuesday. “One of the key factors that causes setbacks is an unintegrated digital business transformation strategy that leads to an ambiguous vision and goal setting,” said Sunny Yi, chief digital officer of Shinhan Financial

This is the second installment in a series of articles on North Korean defectors in transition, and the challenges and opportunities they encounter in the face of South Korea’s financial market and its rapid digitalization. -- Ed. For someone who came from an isolated and repressive state like North Korea, starting a business of his or her own in a free but competitive market is a mere dream. No matter how great their ideas are, a lack of business network, insufficient funds and im

The government said Thursday it will open a bidding process to sell a part of its stake in Woori Financial Holdings, owned by the Korea Deposit Insurance Corporation, to multiple buyers in a bid to complete privatization of the banking giant. The state-run deposit insurer will put a 10 percent stake out of the 15.13 percent stake it holds in Woori Financial Holdings through competitive bidding, according to Financial Services Commission. Prospective buyers can bid for between 1 percent and 10

Consumer inflation rose 2.6 percent last month, staying above 2 percent for the fifth month in a row, on the back of higher agricultural product and international crude oil prices, Statistics Korea reported Thursday. It is the first time since 2017 that consumer inflation has remained above 2 percent for five consecutive months. Core inflation, which excludes volatile food and oil prices, rose 1.3 percent last month from a year earlier. Given that the government plans to dole out 11 trillio

South Korea on Tuesday proposed a record 604.4 trillion won ($519 billion) budget for 2022, stressing the need for an expansionary fiscal policy to help the economy recover from the COVID-19 pandemic. The budget, endorsed by the Cabinet on Tuesday, represents an 8.3 percent hike from this year, less than the 8.9 percent increase for 2021 and 9.1 percent for 2020, according to the Ministry of Economy and Finance. The Moon Jae-in government’s final budget draft, however, has come under

South Korea will ramp up spending on the next-generation automobile, chip and bio-health sectors next year in an effort to nurture homegrown companies into leading players in the global market, the finance minister said Monday. Under a budget proposal for the 2022 fiscal year drawn up by the government, spending on the “Big 3” industries will increase to 6.3 trillion won ($5.41 billion), up 43 percent from the amount allocated this year. The budget plan will be presented to the pa

South Korea will launch another round of COVID-19 cash handouts for nearly 90 percent of Koreans, as well as other financial support for small merchants, before the Chuseok holiday in September. Authorities plan to provide 11 trillion won ($9.4 billion) to people in the bottom 88 percent income bracket under this year’s second extra budget, worth 34.9 trillion won. The government aims to distribute 90 percent of the subsidies by the end of September. The beneficiaries will be selected

South Korea plans to draw up another record-breaking budget of some 605 trillion won ($518.4 billion) for next year to strengthen the nation’s social safety net largely hurt by the prolonged pandemic, the ruling Democratic Party and the government said Tuesday. The so-called “super budget package” allows the Moon Jae-in government and his party to financially assist self-employed, small-business owners and low-income families, and to provide full college tuition from the thir

South Korea’s economy will grow 3.9 percent this year, an Asian regional macroeconomic surveillance organization said Monday, presenting a more pessimistic outlook than what the government forecast citing growing household debts. The ASEAN+3 Macroeconomic Research Office said Asia’s fourth-largest economy continues its strong rebound in 2021 buoyed by a sustained global recovery and robust demand for electronics and autos. But it warned that the country’s growing household d

After showing modest signs of recovery, South Korea’s economy is going to face pressure from the ongoing fourth wave of COVID-19 starting from this month, the country’s top economic policymaker said Thursday. “As the ripple effect of the fourth wave of the pandemic seems to be inevitable to some extent from August, it is necessary to stay alert to minimize the shock and to maintain the recovery trend,” Finance Minister Hong Nam-ki said during an economic meeting at the

Woori Financial Group Chairman and CEO Son Tae-seung has acquired 5,000 treasury stocks worth over 54 million won ($46,800) to enhance its corporate value, the banking group said Tuesday. Son bought the stocks at a price of 10,875 won per share. Since the chairman took office in March 2018, he has bought treasury stocks 14 times. With the latest purchase, he now holds a total of 93,127 shares. The financial services holdings firm plans to implement a more active set of shareholder return

The International Monetary Fund on Tuesday projected the South Korean economy to grow 4.3 percent this year, presenting a more sanguine outlook than the government and other major institutions, despite concerns about the impact of the latest surge in coronavirus infections. According to the Ministry of Economy and Finance, the IMF revised its projection on Asia’s fourth-largest economy up by 0.7 percentage point from its April forecast. The latest figure released by the Washington-base

As the South Korean economy faces the grave impact of the fourth wave of COVID-19, it is also being forecast to expand 4 percent this year due to strong exports and investments, the Asian Development Bank said Tuesday, revising up its previous projection of 3.5 percent. In an updated economic forecast, the regional lender cited “facility investment that reflected expansion in the digital economy,” as well as robust “export of information technology and transport equipment&r

South Korea’s leading insurance firms are set to offer customized health care services through digital platforms after a regulatory bar was lifted for offering non-financial services. Amid fast growth of the elderly population, the government‘s plan to revitalize the health care industry coupled with the insurance sector’s needs to discover new revenue source prompt insurers to create digital health management solutions.　 The Financial Services Commission last week allowed

The prospect of big tech firms taking over the realm of retail banking has been setting off alarm bells in traditional banks in South Korea including Woori, one of the big five lenders that has dominated the industry for decades. But Hwang Weon-cheol, Woori’s chief digital officer who has been leading the bank’s digital transformation, believes the bank still has strengths that the newcomers don’t have. The growth of big tech firms like Kakao, operator of the country&rsquo

The state-run Export-Import Bank of Korea said Thursday it had agreed to extend a $600 million loan to Tunisia to support the North African country’s digital infrastructure development projects. Tunisia plans to use the fund to digitize some 4.5 million maps and land-related documents to build a database and develop a comprehensive land information management system there. “We expect that our support for Tunisia’s land management infrastructure innovation, which is the cou

South Korea will scale up its “Korean New Deal” stimulus package by making additional investments worth 60 trillion won ($52.2 billion) to nurture human talents for future industries, and improve ill-functioning employment and the social safety net, the government said Wednesday. Marking the first anniversary of the launch of the Korean New Deal initiative, President Moon Jae-in unveiled an upgraded version focusing on responses to deepening social inequality and economic polar

The government will strengthen its monitoring of financial markets as volatility increases due to a recent resurgence of COVID-19 cases here, First Vice Finance Minister Lee Eog-weon said Tuesday. “As uncertainty related to virus variants persist, the possibility of increased volatility in the financial market in the future cannot be ruled out,” he said during a meeting on macroeconomic policies and financial affairs. With the quick spread of the more contagious delta variant lo

Shinhan Financial Group will invest in a delivery service provider and an autonomous transportation service startup to upgrade its banking platform and find new revenue streams amid increasing competition in the financial industry for digital transformation, the banking group said Monday. The lender has pledged to make an investment worth 77 billion won ($67.21 million) into three digital platform companies by using a 300 billion-won fund launched by Shinhan affiliates including its credit ca