Economy News
Reporting, analysis, and commentary on economy from Breeze in Busan.
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Construction Firms Shift Focus to Government Projects in Busan
The sluggish sales market in Busan has resulted in construction companies shifting their focus toward government projects, in search of stable construction costs and reduced risks. As a result, the latest offering by the Busan Metropolitan Corporation for private operators has garnered significant attention from at least six companies, including Hyundai Engineering & Construction, Taeyoung E&C, and Kumho E&C, all of which are expected to participate in the upcoming competition. The project will
1 min read
The Unintended Consequences of US Protectionism and Diplomatic Missteps
The recently passed US Chips and Science Act, which allocates $52 billion toward domestic semiconductor manufacturing, has raised concerns for South Korean tech firms, including Samsung and SK Hynix. The legislation contains several provisions that could potentially harm the Korean tech industry, including "toxin clauses" that require the sharing of excess profits, the disclosure of confidential production facility information, and the submission of accounting records. Toxin Clauses: Sharing E
3 min read
Japan's Real Wages Plummet to Nine-Year Low Amid Inflation Surge
Japan's real wages have fallen by the most in almost nine years in January 2022, according to official data, as the country faces a four-decade high inflation rate that has undermined policymakers' efforts to revive the economy from the impact of the COVID-19 pandemic. The trend is being closely watched by Bank of Japan officials, who have repeatedly stated that wage hikes, coupled with 2% inflation, are essential to scaling back the central bank's loose monetary policy. However, the reality is
2 min read
Depopulation in Yeongdo-gu: Can Tourism Alone Revitalize Busan's Struggling Districts?
Busan's Yeongdo-gu district is facing a serious depopulation crisis, raising concerns among local policymakers and residents alike. The district's population decline is most severe in the original city center, with Yeongdo-gu being the closest to what an aging Busan may look like in the future. This trend could have severe long-term consequences for the city's economic activity, social cohesion, and public services. According to a recent academic paper published in the Journal of Tourism Manage
2 min read
Busan's Population Decline: Urgent Need for Sustainable Job Creation as Incheon Rises as a Competitor
Busan, the second-largest city in South Korea, is facing a population decline crisis due to a sharp outflow of young people and a declining birth rate. The lack of quality job opportunities and career prospects for the city's residents is a major contributing factor to the population decline. Despite the city's efforts to revitalize the economy through tourism-based industries, the reliance on low-wage, low-welfare jobs is not a sustainable solution for the city's long-term economic growth and s
3 min read
The Urgent Need for Quality Jobs in Busan: Challenges and Solutions
The Korean labor market has been a hot topic of discussion recently, with its severe polarization into large firms versus small and medium-sized companies. As previously discussed, regular employees of large companies account for only 12% of the workers in Korea, leaving small and mid-sized companies struggling with chronic labor shortages. This issue is also relevant to Busan, which is home to many small and medium-sized businesses that face similar challenges in attracting and retaining worker
5 min read
Building Long-Term Job Solutions in Busan
Korea is facing a daunting challenge: a rapidly declining birth rate. The country's total fertility rate of 0.7 is one of the lowest in the world, less than half of the OECD average of 1.59. This trend is particularly evident in major cities such as Seoul, Busan, and Incheon, where the fertility rate is below 0.8. Experts argue that piecemeal and short-term policies are not enough to address this complex issue and that a comprehensive and long-term approach is needed. One promising strategy is
2 min read
Job Seekers Flock to Hyundai Motor Group's Recruitment Page for Production Line Workers
Hyundai Motor Group's announcement that it will recruit production line workers for the first time in a decade has drawn the attention of tens of thousands of job seekers. The recruitment page on Hyundai's website saw over 30,000 visitors on the first day of applications, causing server slowdowns throughout the day, according to the company. This recruitment drive, which ends on March 12, will see Hyundai hire 400 production line workers in July, the first such hiring spree since 2013. The anno
1 min read
The Medical School Black Hole: A Growing Concern in Korea
The "medical school black hole" phenomenon is causing concern in Korea as it is resulting in a shortage of talent in other fields. This trend refers to the increasing number of science and engineering students being drawn to medical schools. The recent college entrance exam results have shown that this trend is intensifying, with more students dropping out of their acceptance to attend medical school. This year, 29.5% (1,343) of successful applicants to top universities like Seoul National Univ
2 min read
Labor Shortages in Korean Shipbuilding Industry Threaten Delays in Production
Several South Korean shipbuilders are facing delays in production due to a shortage of workers. As a result, local governments are offering unconventional subsidies of around 10 million won (approximately $8,500) to attract more laborers this year. Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering, and Samsung Heavy Industries, three of the country's biggest shipbuilders, are experiencing delays of up to two months based on dockyard plans. While the number of orders is increasi
2 min read
Busan's Bid for the 2030 World Expo Hinges on Gadeokdo New Airport's Opening
The decision on which country will host the 2030 World Expo hinges on the opening of the Gadeokdo New Airport in Busan. In April, the Bureau International des Expositions (BIE) will conduct a due diligence visit to evaluate the transportation system, with the airport playing a pivotal role in Busan's bid to host the global event. The method and timeline of the airport's construction are the critical issues that the South Korean government needs to address to ensure that the Gadeokdo New Airport
2 min read
Busan City Successfully Completes First Year of Power Semiconductor Talent Sharing University
Busan City has completed the first year of the "Power Semiconductor Talent Sharing University," a joint project by 13 local universities and small and medium-sized businesses aimed at developing human resources for the semiconductor industry. This program, part of the Ministry of Education's LINC 3.0 project, offers specialized courses in semiconductor technology taught by top experts from each of the 11 participating universities. During the first year of the program, 304 out of 324 trainees c
2 min read