Economy

South Korea is currently facing two alarming trends among its younger population: a record-high number of young adults not seeking work and a highly debated proposal to increase the workweek cap. Nearly half a million young adults aged 15-29 report being "off" work and not actively seeking employment, marking the highest number in the history of this statistic. Meanwhile, the government's recent proposal to increase the workweek cap from 52 to 69 hours has sparked strong opposition from Millenni

South Korea has recently posted its worst trade deficit in history, with a 13.9 billion-dollar deficit in February 2023. The country's worsening trade balance is concerning for its economy, which heavily relies on exports. The COVID-19 pandemic has hit the global economy hard, causing supply chain disruptions and demand shocks. This has also affected South Korea's economy, which heavily relies on exports of goods such as semiconductors, automobiles, and petrochemical products. The country's ex

Silicon Valley Bank (SVB), the preferred bank for the tech sector, collapsed suddenly after a series of unfortunate investment decisions. The California-headquartered organization grew to become the 16th largest bank in the US, catering to the financial needs of technology companies worldwide before its collapse. SVB’s services were in hot demand throughout the pandemic years. The initial market shock of Covid-19 in early 2020 quickly gave way to a golden period for startups and established tec

Silicon Valley Bank (SVB), one of the largest banks in the United States catering to the technology industry, collapsed just 48 hours after a bank run by its depositors. This event marks the largest failure of a financial institution since the height of the financial crisis more than a decade ago. The collapse of SVB has caused global start-up companies to call for emergency support from governments as they fear bankruptcy. The bank had $209 billion in assets and about $175.4 billion in deposit

Hong Kong has been facing a major challenge in recent times, as it tries to regain its position as Asia's premier financial center after years of pandemic controls. However, a Financial Times analysis of real estate prices, air traffic, and other indicators shows that Singapore has taken the lead in the region, leaving Hong Kong to play catch-up. While Hong Kong's chief executive, John Lee, has launched a campaign to convince the world that the Chinese territory is not only open for business bu

South Korea's economic success story is widely attributed to its export-oriented development strategy, strong industrial base, and skilled workforce. According to a recent study by the Korea Institute for International Economic Policy, Korea's export-led growth model has been successful in driving economic growth and industrialization, with exports growing at an average annual rate of 9.5% since the 1960s. However, the overreliance on a few key industries has made Korea's economy vulnerable to e

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

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

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

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

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

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