South Korea

Joongang Ilbo | English | News | Dec. 5, 2025 | UndeterminedEconomic Growth

South Korea is experiencing an economic slowdown that necessitates expansionary fiscal policies, but faces challenges due to a market saturated with record levels of liquidity. The country’s broad money supply (M2) reached 4.4 quadrillion won ($2.9 trillion) in September 2025, marking the largest amount on record with an 8.5 percent year-on-year increase. This liquidity surge is attributed to extra budgets during the COVID-19 pandemic, expansionary fiscal policies under the Lee Jae Myung administration, increased investment and lending, heavy stock market inflows, and a record current account surplus.

The excess liquidity has contributed to inflation risks, depreciation of the won, and a widening gap between policy rates and market rates. The won-dollar exchange rate recently approached 1,470 won per dollar and threatens to surpass 1,500 won, driven in part by increased foreign stock investments and capital shifts abroad due to tighter domestic real estate regulations. Inflationary pressures are also rising, with the expanded money supply impacting housing prices more sharply and quickly than broader inflation. Economists caution that liquidity growth complicates policymaking as its future allocation remains uncertain.

Monetary policy tools are limited in scope; the Bank of Korea cut base rates from 3.0 percent to 2.5 percent in 2025, but yields on 10-year government bonds rose, creating a disconnect between policy rates and market rates. The government’s large planned bond issuance next year further complicates the situation. Fiscal policy thus remains the primary instrument, but experts urge a focus on medium- and long-term structural reforms to address issues such as demographic change, low birthrates, and declining potential growth, to restore confidence in the won and manage inflation effectively.

Both the Bank of Korea governor and senior government officials downplay concerns that recent liquidity growth stems from current fiscal expansions, attributing it primarily to accumulated past liquidity. Additionally, part of Korea’s reported M2 growth includes investment funds like ETFs, which inflate comparative figures. Despite these reassurances, underlying economic vulnerabilities and policy challenges persist as the government navigates a high liquidity environment while attempting to stimulate growth.

Joongang Ilbo | English | News | Dec. 5, 2025 | North Korea

South Korea's deputy foreign minister, Chung Eui-hae, called on the Association of Southeast Asian Nations (Asean) to support Seoul's efforts to resume dialogue with North Korea. This appeal was made during a luncheon with ambassadors from 11 Asean member states, including Singapore, Thailand, and the Philippines.

Chung expressed gratitude for Asean's backing of President Lee Jae Myung's "END" initiative, which stands for exchange, normalization, and denuclearization. The initiative aims to end hostility and promote peace with North Korea and was highlighted by Lee during his United Nations General Assembly address in September 2025.

Additionally, Chung emphasized South Korea's intention to strengthen its comprehensive strategic partnership with Asean by increasing people-to-people exchanges and enhancing cooperation in trade and security.

지마켓, 도용 의심 사고 피해고객 전원 환불 보상 결정

ZD Net Korea | Local Language | News | Dec. 5, 2025 | Privacy

Gmarket has decided to fully refund all customers affected by the suspected identity theft incident that occurred on November 29, 2025. The company aims to minimize customer inconvenience and is cooperating with investigative authorities to determine the cause of the incident. Customers confirmed to have unauthorized payments will be informed about the compensation process, and Gmarket will actively support their reporting to relevant agencies. The company will provide advance compensation on moral grounds and encourage active reporting to help prevent further theft crimes.

The incident is believed to be an account-takeover crime, where illegally obtained personal information from outside sources was used to access accounts and make unauthorized payments, exploiting the widespread use of the same login credentials across multiple sites. In response, Gmarket has launched a password-change recommendation campaign targeting customers who have not updated their passwords within the past month. The company is also providing guidance on creating secure passwords through login screen messages and customer center notices.

Additionally, Gmarket plans to expand additional authentication procedures, recommending two-step authentication during login and implementing enhanced identity verification measures for high-sensitivity product categories, such as cash-convertible gift certificates. A company official emphasized the priority of ensuring a safe shopping environment and the commitment to strengthening security measures to prevent secondary damages like account takeover and phishing incidents.