[Law Talk] Unexposed risks of the Serious Accidents Punishment Act: Business owners facing liability beyond the workplace

Amid recurring industrial accidents such as the 2018 Taean Power Plant tragedy, the 2020 Icheon fire incident, and the death of a worker at Pyeongtaek Port in April, social interest regarding the need for health and safety in outsourcing arrangements has been steadily growing. Meanwhile, with the increase in outsourcing of work across all industries, the vague division of roles and responsibilities between companies and contractors, and the lack of authority of contractors/subcontractors that

Aug. 29, 2021

Industrial accidents cause economic losses of W30tr in 2020: data

Industrial accidents at workplaces caused an estimated loss of nearly 30 trillion won ($25.6 billion) last year, data showed Sunday, with the country seeking to impose heavy punishment on employers in the event of workplace disasters starting next year. The losses caused by industrial accidents were estimated at 29 trillion won in 2020, up 8.5 percent from a year earlier, according to the data compiled by the Ministry of Employment and Labor. The total number of deaths from industrial accident

Aug. 29, 2021

S. Korea, IDB ink loan program for Latin America

South Korea on Friday inked an agreement to expand a joint loan facility program with the Inter-American Development Bank (IDB) in a bid to support infrastructure development in Latin America. Finance Minister Hong Nam-ki and IDB President Mauricio Claver-Carone signed the agreement between the Economic Development Cooperation Fund (EDCF), South Korea's lower-interest loan scheme with emerging countries, and the regional development bank, according to the Ministry of Economy and Finance. The a

Aug. 27, 2021

Exports expected to jump 34.5% in August on chips, autos: poll

South Korea's outbound shipments are predicted to increase 34.5 percent on-year in August on strong global demand for chips and automobiles despite the protracted COVID-19 pandemic, a poll showed Friday. Exports are expected to reach $53 billion won this month, according to the survey of seven brokerage houses by Yonhap Infomax, the financial news arm of Yonhap News Agency. Imports are estimated to rise 44.8 percent on-year in August to $51.8 billion, resulting in a trade surplus of $1.2 bil

Aug. 27, 2021

Korea to deliver W11tr in subsidies before Chuseok

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

Aug. 26, 2021

[News Focus] National debt surges W100tr in just 9 months

SEJONG -- South Korea’s national debt is estimated to have surpassed 900 trillion won ($770 billion) this year for the first time, though the government has yet to publicize the updated official figure. According to calculations by the National Assembly Budget Office, the national debt – debt directly held by the central and local governments -- was estimated at 938.9 trillion won as of Thursday. The latest official figure, unveiled by the government, was 898.1 trillion won as of J

Aug. 26, 2021

Under inflationary pressure, central bank lifts key rate, hints at more hikes

South Korea’s central bank on Thursday carried out its first rate hike since the pandemic began, marking a major turnaround from its expansionary stance that had been proactively deployed to buttress the nation’s virus-hit economy for the last 15 months. The rate hike marked the first case of a central bank in a major Asia-Pacific economy tightening monetary policy, reflecting concerns over overheated markets and growing inflationary pressure.　 The Bank of Korea raised its benchma

Aug. 26, 2021

Jobs for wage workers grow at slower pace in Q1 amid pandemic

The number of jobs for wage workers in South Korea grew at a slower pace in the first quarter than three months earlier due to slumps in in-person service sectors amid the pandemic, data showed Thursday. The number of paid employee jobs reached 18.9 million in the cited period, up 321,000 from a year earlier, according to Statistics Korea. The tally was lower than an on-year increase of 503,000 in the fourth quarter of last year. It also marked the smallest increase since the second quarter of

Aug. 26, 2021

BOK delivers 1st pandemic-era rate hike amid rising inflation, household debt

South Korea's central bank delivered its first pandemic-era rate hike Thursday to fight rising inflation and rein in surging household debts, ending 15 months of record-low interest rates as the economy showed signs of improving. The monetary policy board of the Bank of Korea (BOK) voted to raise its key rate by 0.25 percentage point to 0.75 percent in this year's sixth rate-setting meeting. It marked the first rate hike since May last year, when the BOK cut the key rate to a record low of 0.

Aug. 26, 2021

Govt. to dole out cash handouts to ordinary people before Chuseok holiday: minister

Finance Minister Hong Nam-ki said Thursday the government plans to provide pandemic emergency relief funds to people hit hard by the pandemic before next month's fall harvest Chuseok holiday. The country plans to provide 11 trillion won ($9.4 billion) to people in the bottom 88 percent income bracket under this year's second extra budget of 34.9 trillion won. Hong said the government has decided to start the provision of cash handouts to the recipients before the Chuseok holiday scheduled for

Aug. 26, 2021

Regulator tightens curbs on bank credit loans to tackle household debt

South Korea's financial authorities have called on local banks to tighten their screening for unsecured loans as part of efforts to cope with rising household debt, sources said Thursday. The Financial Supervisory Service (FSS) recently required all commercial lenders to submit their plans to adjust caps on credit loans extended to individual borrowers by Friday. Banks have thus come up with or are mapping out plans to cut back on caps on unsecured loans, according to the sources. Nonghyup Ba

Aug. 26, 2021

Is South Korea headed for asset bubble collapse?

The rupture of Japan’s bubble in the 1990s after a decade of economic prosperity has been cited as an important case study for the South Korean economy given the similarities between the two countries’ economic structures, and their financial and legal systems. The prosperity in Japan brought about a rapid acceleration of asset prices some 30 years ago, when real estate and stock market prices became “overheated.” After the bubble burst in 1992, Japan entered a long peri

Aug. 25, 2021

S. Korea to prioritize supplying homes to stabilize prices: minister

Finance Minister Hong Nam-ki said Wednesday the government will focus on supplying homes as planned in the second half in a bid to curb high-flying home prices. The minister said a tight supply for homes has somewhat eased since August as more people have begun to move into newly built apartments. "Increasing housing supply sufficiently is a key to stabilizing the property market," Hong said at a government meeting on the housing market. "The government will do its best to prov

Aug. 25, 2021

GM Korea workers OK company's wage offer

Unionized workers at GM Korea Co., the South Korean unit of General Motors Co., accepted the company's revised wage proposals for the year, the union said Tuesday. In their second vote held Monday and Tuesday, some 65 percent of GM Korea's unionized workers agreed to accept the revised proposals that newly include 300,000 won ($260) worth of repair coupons for Chevrolet brand vehicles and 200,000 won worth of gift certificates for traditional markets, union spokesman Cho Ha-soo said over the p

Aug. 24, 2021

Korea plans another W605tr 'super budget' for 2022

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

Aug. 24, 2021

Tax agency launches probes into suspected tax evasion

South Korea's tax agency said Tuesday it has launched probes into suspected tax evasion by 59 people who allegedly pocketed illegal profits or increased wealth in an improper manner. Of them, 29 people earned money in an illegal or dishonest fashion while misusing corporate funds to buy luxury goods, according to the National Tax Service (NTS). The agency also cracked down on people and entities that gave damage to pandemic-hit merchants and individuals to increase their assets. Since last ye

Aug. 24, 2021

Household credit growth accelerates in Q2

South Korea's household credit grew at a faster pace in the second quarter as non-banking financial firms increased loans, central bank data showed Tuesday. Household credit reached a record high of 1,805.9 trillion won ($1.54 trillion) as of June, up 41.2 trillion won from three months earlier, according to the data from the Bank of Korea (BOK). Household credit refers to credit purchases and loans for households that have been extended by financial institutions, including commercial lenders

Aug. 24, 2021

No. of employed people rise in 2nd-tier cities amid economic recovery

The number of employed people in minor cities and counties in South Korea rose in April from a year earlier as slumps in the job market eased amid the economic recovery, data showed Tuesday. The number of employed people for 77 smaller cities in nine provinces reached 13.1 million as of end-April, up 3.6 percent from a year earlier, according to the data compiled by Statistics Korea. The corresponding number for 77 counties across the nation grew 1.4 percent on-year to 2.07 million, the data s

Aug. 24, 2021

S. Korea's ready-to-drink coffee market grows 5.9% in H1

South Korea's market for convenient coffee beverages expanded nearly 6 percent in the first half of the year amid the coronavirus pandemic, a market tracker said Tuesday. The size of the local ready-to-drink coffee market stood at 672.9 billion won ($574 million) in the January-June period, up 5.9 percent from a year earlier, according to Nielsen Koreanclick. Canned coffee accounted for the largest portion at 258.6 billion won, followed by cup coffee with 217.5 billion won and bottled coffee w

Aug. 24, 2021

Consumer sentiment dips in August over surge in COVID-19 infections

South Korea's consumer sentiment dipped in August over a spike in COVID-19 infections, marking the second consecutive monthly decline, central bank data showed Tuesday. The composite consumer sentiment index (CCSI) came in at 102.5 for August, down 0.7 point from the previous month, according to the data from the Bank of Korea (BOK). A reading above 100 means optimists outnumber pessimists. The latest reading marks the second monthly decline since June, when the index stood at 110.3. The

Aug. 24, 2021