The Minute to Read (Weekdays) series provides a quick overview of significant events in Korea everyday, conveniently condensed into a one-minute read. Here’s a recap of what happened yesterday: Dec. 2.

South Korea faces a looming era of low economic growth, with intensifying competition from China and structural challenges weakening its once-dominant industrial and export-driven economy. /Chosun DB

South Korea’s economy slows as China’s dominance expands

South Korea’s economic growth has steadily declined since 1998, with the Yoon Suk-yeol administration likely to see the nation’s first five-year average annual growth rate below 2%, amid forecasts of sub-2% growth for 2025 and 2026. The country faces growing competition from China, which has overtaken S. Korea in market share across seven out of eight key industries, including semiconductors, shipbuilding, and steel, while only petrochemicals maintain a narrow lead. Structural issues like an aging population and over-reliance on exports compound the challenge, as S. Korea struggles to adapt its growth model to new economic realities.

South Korea's stock market faces a historic slump, with prolonged losses and underperformance highlighting deep economic and investor challenges. /Illustrated by DALL-E

Korean stocks log losses in 8 of 11 months, the worst since dot-com era

South Korea’s stock market is enduring one of its worst downturns in history, with the KOSPI and KOSDAQ indexes recording losses in 8 out of 11 months in 2024, a streak not seen since the 2000 IT bubble. While the KOSPI has declined 7.2% and the KOSDAQ 21.8% year-to-date—less severe than past crises—the market’s persistent underperformance stands out as global markets trend upward. Slowing economic growth, with GDP forecasts below 2% through 2026, and declining domestic investor interest are key contributors to the slump. Analysts predict little chance of a year-end rally without a recovery in key industries like semiconductors.

Illustrated by Kim Young-jae

BOK warns of labor market risks as young Koreans exit workforce

A Bank of Korea (BOK) report highlights a sharp rise in South Korea’s economically inactive population, particularly among young adults in their 20s and 30s with prior work experience, whose numbers taking a “break” from the workforce grew 25% year-on-year. The report attributes this trend to job mismatches and employers’ preference for experienced hires, warning of potential long-term labor market losses without effective policy interventions.

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