The amount of debts owed by households and businesses in Korea was more than twice Korea’s gross domestic product (GDP). About half of the nation’s companies were unable to pay even interest on their debts with money they earned from sales, revealing their vulnerability.The ratio of private credit t
Twenty years ago, the wage level of workers in South Korea was not even half of that in Japan, but now it has surpassed Japan. The wage gap between large, medium, and small-sized enterprises has further widened due to the cumulative wage increases in large companies.On March 17, the Korea Enterprise
It has been revealed that the hourly wages of domestic helpers in South Korea are more than four times higher than in neighboring countries such as Hong Kong and Taiwan. In an effort to alleviate the burden of caregiving services, which is considered one of the causes of low birth rates, the Bank of
Last year, South Korea’s gross national income (GNI) per capita reached US$33,000, marking a rebound for the first time in a year. The annual real gross domestic product (GDP) growth rate was recorded at 1.4 percent.According to the “2023 Preliminary 4th Quarter and Annual National Income” report re
For the first time in 25 years since the foreign exchange crisis, South Korea’s economic growth rate last year fell behind Japan. However, projections indicate South Korea is expected to outpace Japan again this year. Due to prolonged low growth, Japan’s economic size has slipped to the place of fou
South Korea has climbed to the third highest position among the Organization for Economic Cooperation and Development (OECD) countries in terms of the proportion of corporate taxes to the Gross Domestic Product (GDP), marking the highest level in the last 50 years.According to the report “Current St
Debt, or credit, for both households and businesses surged to a historic peak, surpassing twice the gross domestic product (GDP) during the third quarter of this year. With an increasing number of businesses relying on non-banking institutions after the COVID-19 pandemic, coupled with a rising house
Following the spread of COVID-19, North Korea’s real gross domestic product (GDP) has experienced three consecutive years of negative growth, leading to a widening income gap of up to 30 times per capita between North and South Korea. Last year, North Korea’s population was approximately half the si
Hyundai Motor plans to sell its Russian plant, which has been idle for nearly two years, to a local company for a mere 140,000 won (US$107.12). However, the contract includes a “buyback” clause, allowing Hyundai to repurchase the facility within the next two years, in anticipation of the possibility
Coupang is making a significant entry into the 500-trillion-won luxury market by acquiring Farfetch, the world’s largest luxury platform. Farfetch boasts a collection of 1,400 luxury brands, including Chanel and Hermes, catering to global consumers in 190 countries such as the United States and the
SK Group Chairman Chey Tae-won recently commented on his relationship with ex-wife No So-young, the director of Art Center Nabi, stating, “Our marital relationship had completely collapsed well before I met someone new. For years, we were only nominally a couple, living as strangers with nothing but
The author is an analyst for NH Investment & Securities. He can be reached at sw.kang@nhqv.com -- Ed.With the US unemployment rate rising for a second straight month, we are nearing the threshold for the Sahm Rule recession indicator (which has a 100% historical accuracy rate). Given the effects of
The slow growth of South Korea’s per-capita income widened its income gap with the Group of Seven (G7) countries. In 2020, the nation surpassed Italy in the GNI per capita standings, celebrating its economic takeoff to rival G7 economies. But South Korea stayed above Italy for only one year, and its
Following the pandemic, South Korea remained in the middle to lower range in terms of growth rates among advanced economies. However, it ranked higher in terms of price stability indicators. This suggests a ‘trade-off’ between investment-led growth expansion and tight fiscal policy.According to the
The proportion of so-called “zombie companies” unable to cover interest costs with their operating profit has reached its highest level since 2009, standing at 42.3 percent last year. Due to the global economic slowdown and the impact of high interest rates, corporate underperformance persisted in t
The author is an analyst for NH Investment & Securities. He can be reached at yk.choi@nhqv.com -- Ed.While China’s petrochemical demand set new records in Aug 2023, product spreads remained weak, owing to both strong oil prices and lofty supply. While capacity ramp-up should decrease in 2024, alread
As of the second quarter of this year, household and corporate debt has surged to approximately 2.26 times the nation’s economic size as measured by the gross domestic product (GDP). The Bank of Korea (BOK) has issued a warning emphasizing that the further expansion of private credit could potential
Last year, South Korea’s private debt growth rate relative to its gross domestic product (GDP) was reported to be the highest in the world. While households and businesses are reducing their debt in most countries in the aftermath of COVID-19, South Korea is drawing attention for moving in the oppos
Due to a recent economic crisis in China, Korea’s exports to China may fall by US$36.92 billion this year, according to an analysis report.The report titled “Implications of Declining Exports to China on the Korean Economy,” released by the Hyundai Research Institute on Aug. 24, estimates how much a
Correction 8/23 4:09 p.m. KST: A previous version of this story incorrectly stated that the Federation of Korean Industries had changed its name to the "Korea Businesspeople Association." However, the organization has only changed its Korean-language name. Translating that name change into English m