February 24 (Monday) News Headline

Economy

"National Debt to Surpass 7,000 Trillion KRW by 2072, Growth Rate to Drop to 0.3%… Pensions to Be Depleted in 30 Years"

• Working-age population to shrink from 35.91 million in 2024 to 16.58 million in 2072

• GDP growth rate to fall from 2.2% to 0.3%

• Fiscal deficit to expand from 25.7 trillion KRW to 488.3 trillion KRW

• Calls for efforts to maintain population structure

"Three Out of Ten Parental Leave Users Are Men… Parental Leave at an All-Time High"

• Higher proportion of parental leave users in small and medium-sized enterprises (SMEs) than in large corporations

• Average parental leave duration is 8.8 months

"K-Food Is Loved Worldwide… Food Companies Expand Overseas Production Instead of Exports"

• Overseas presence of Korean food companies is growing

• Unstable export environment drives expansion of foreign production facilities

"Household Loans Rising Again… Increased by Over 2 Trillion KRW This Month"

• Household loans from the five major banks increased by 2.093 trillion KRW in three weeks

• Mortgage loans rose by 1.8668 trillion KRW, with unsecured loans also increasing

• Banks eased lending restrictions due to early-year quota flexibility

• Bank of Korea's interest rate decision this week in focus

• Financial authorities to announce management plans on the 27th

"Low-Income Households Spend Record-High Proportion on Food, Housing, and Medical Expenses"

• Share of food, housing, and medical expenses among low-income households at its highest since 2017

• Inflation impact is harsher on low-income groups

• Calls for inflation rate adjustments in welfare eligibility criteria

Finance

"Will the Global FOMO on Gold Shift to Bitcoin?"

• Gold prices soar amid global uncertainty

• Bitcoin may attract hedging demand

• "De-dollarization and U.S. reserve policies could fuel Bitcoin FOMO"

"Retirement Pension Funds Shift 2.4 Trillion KRW in a Massive Move"

• 2.4 trillion KRW transferred in three months under the "physical transfer service"

• Retirement pension holders can now easily switch service providers

• 400 billion KRW flowed into securities firms, while 460 billion KRW was withdrawn from banks

• Investors seek higher returns and diverse investment options

"Nasdaq Rises 1%, While Hang Seng Tech Surges 20%… 'China's Version of the Magnificent 7'?"

• Hang Seng Tech Index up 20% this year

• Seven major Chinese tech firms average a 46% return

• Increased AI interest in China following the DeepSeek boom

• Alibaba leads with a 70% rise, BYD gains traction with autonomous driving and AI adoption

"Growing Downside Risks… Majority Expect Interest Rate Cut to the 2% Range"

• Bank of Korea to hold monetary policy meeting on the 25th

• GDP growth forecast revised from 1.9% to 1.6%

• Base interest rate expected to be lowered from 3.00% to 2.75%

• "Increased downside risks for the domestic economy… End-of-year rate expected at 2.25%"

"Investment Guru Buffett Hoards More Cash… Plans to Expand Stock Investments This Year"

• Berkshire Hathaway’s cash reserves hit $334.2 billion

• Increased stock sales and treasury bond purchases

• Signals interest in expanding stakes in Japan’s five major trading firms

• Concerns over U.S. fiscal deficit: "Beware of excessive spending"

Corporations

"Korea-China 'Battery War' to Unfold Next Month at InterBattery 2024"

• Korea’s largest battery exhibition to be held from March 5-7

• LG Energy Solution to have the largest booth, unveiling the 46-series battery for the first time

• Samsung SDI and SK On to participate, with BYD and EVE making their debut

"Trump Effect Boosts Korean Shipbuilding and Shipping… Increased Orders and Cargo Volume Expected"

• China’s COSCO, the world’s fourth-largest shipping company, expected to face challenges

• HMM to benefit from strengthened North American routes

• Korean shipbuilders already reaping benefits, securing strong orders early in the year

"China Was Said to Have Surpassed Korea in Semiconductors… But That Assessment Has Changed"

• Concerns remain over workforce drain and U.S.-China tensions

• China ranks high in high-density/resistive memory and AI semiconductors

• KISTEP’s in-depth analysis on three game-changing technology sectors

• In 2022, the same group of 39 experts previously evaluated that Korea led in most fields

"SK Hynix to Complete Intel NAND Business Acquisition Next Month"

• SK Hynix to pay the second installment of $2.2 billion

• Expected to strengthen its enterprise SSD capabilities

"Insurance Companies Achieve Record Profits, but Solvency Issues Loom"

• Both life and non-life insurers post all-time high earnings

• However, solvency ratios are under pressure

• Companies responding with subordinated bond issuance

Real Estate

"Seoul to Begin Redevelopment Planning for Gayang, Deungchon, and Sinnae Areas"

• City to launch urban redevelopment feasibility study soon

• Buildings over 30 years old in need of renewal

• High floor area ratio but low profitability

• Consideration of applying the Special Act on Aging Cities

• Conditions differ from the first-generation new towns, making actual application uncertain

"Lower Mortgage Rates for Unsold Homes in Provincial Areas"

• Didimdol loan interest rates to be cut by 0.2 percentage points for unsold homes

• "Youth Housing Dream Loan" to be launched next month with a minimum rate of 2.2%

• Mortgage and Jeonse loan rates in the Seoul metropolitan area to rise by 0.2 percentage points

• Unsold homes in provincial areas to be exempt from the increase

• Caps and timelines set for preferential rates, with hybrid interest rates newly introduced

"Lifting of Land Transaction Permit in Gangnam Fuels Apartment Price Surge… But Expansion to Other Areas Unlikely"

• Average apartment prices in Gangnam’s three districts rose by 100 million KRW after deregulation

"Collusion in New Apartment Furniture Contracts Continues… No End in Sight"

• Eight years of collusion in furniture supply contracts for Bando Construction

• 949 billion KRW in sales affected

• Fair Trade Commission imposes 5.17 billion KRW in fines on 13 companies

• Investigations into smaller construction firms ongoing

"How to Avoid Jeonse Fraud? Check This First… '90% of Scams Can Be Prevented'"

• "To avoid 'Kangtong Jeonse' (risky rental deposits), check the landlord’s financial status first"

• Victims should pursue both criminal and civil legal actions simultaneously

• "Act quickly—seek legal advice immediately"

• Awareness is key: "Even if the process is tedious, be thorough"

Society

"Protests Over Yoon's Impeachment Intensify Nationwide Ahead of Final Arguments"

• Large-scale protests held in Seoul, Daejeon, and Daegu

• Activists encourage participation in upcoming March 1st demonstrations

• Universities also hold rallies for and against impeachment

• Security concerns arise due to external participants at campus protests

• Seoul National University considering requesting police intervention

"First Semiconductor Fab in Yongin Cluster Gets Construction Approval"

• Site area: 1.97 million square meters, total floor area: 1.42 million square meters

• Consists of one fab building and one support facility, totaling 19 structures

• Mayor Lee Sang-il: "We will ensure the first fab is operational by 2027 while addressing public concerns"

"College Enrollment Crisis: 90% of Universities Hold Additional Admission Rounds"

• 9 out of 10 four-year universities fail to fill spots even after the regular admissions round

• 63% of schools with additional admissions are in non-metropolitan areas

• "The gap between metropolitan and non-metropolitan universities is now irreversible"

• 80% increase in additional medical school admissions, exacerbating concentration in medical fields

International

"Trump Threatens Tariffs on Countries Imposing Digital Taxes… Potential Impact on Korea"

• U.S. may impose tariffs in response to digital service taxes in Europe and elsewhere

• Reviewing whether European social media regulations violate freedom of the press

• Concerns rise over Korea’s digital regulations

"Vatican Confirms Pope's Health Worsening Amid Resignation Rumors"

• Difficulty breathing, receiving high-dose oxygen treatment

• Sepsis concerns, future condition uncertain

• Resignation speculations dismissed for now

Seoul Tribune (c)

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