The Minute to Read (Weekend) series provides a quick overview of significant events in Korea from the week, conveniently condensed into a one-minute read. Here’s a recap of what happened this week: Feb. 24-28.
President Yoon defends martial law in final impeachment hearing
President Yoon Suk-yeol defended his Dec. 3 martial law decree in a final statement at his impeachment trial at the Constitutional Court on Feb. 25, claiming that opposition impeachment motions, legislative overreach, and budgetary obstruction had left him with no choice. He argued that the opposition’s actions paralyzed government functions, amounting to a subversion of the constitutional order.
Yoon also proposed that, if reinstated, he would focus on constitutional and political reforms, suggesting the possibility of amending the Constitution to shorten the presidential term. He emphasized the need for presidential sacrifice to implement these changes and create a political structure aligned with the nation’s evolving needs. Yoon further said that, if returned to office, he would prioritize foreign affairs and delegate significant domestic responsibilities to the prime minister.
BOK cuts key rate to 2.75%, lowers growth outlook
The Bank of Korea cut the benchmark interest rate to 2.75%, marking the first return to the 2% range since October 2022. After two consecutive cuts in October and November last year, from 3.5% to 3.0%, followed by a pause last month, the central bank resumed easing amid economic concerns. The central bank also lowered South Korea’s growth forecast for 2025 from 1.9% to 1.5%, citing economic contraction after martial law and slowing exports due to U.S. tariff policies.
S. Korea’s birth rate rebounds for 1st time in 9 years
South Korea’s birth rate saw a rebound for the first time in nine years, rising from 0.72 to 0.75 last year. The increase was attributed to post-pandemic couples who had delayed marriage and childbirth, as well as those born in the early 1990s entering their prime childbearing years. Statistics Korea reported that the number of newborns in 2024 reached 238,300, an increase of 8,272 from the previous year. This marks the first rise in births since 2015, when the total fertility rate was 1.24.
Coupang’s annual revenue surges 29% to $30 billion
Coupang’s revenue in 2024 soared 29% year-on-year to 41.3 trillion won ($30.3 billion), surpassing traditional retail giants such as Lotte Shopping (13.9 trillion won) and Shinsegae Group (35.6 trillion won). While the company posted a net profit for the second consecutive year, its operating profit fell 2.4% to 602.3 billion won ($436 million), impacted by a 162.8 billion won antitrust fine and losses from its Farfetch acquisition. Its luxury platform Farfetch and Taiwan business contributed significantly, with revenue from these segments quadrupling to 4.88 trillion won.
Samsung struggles as Chinese memory chipmakers narrow gap
Samsung Electronics is under increasing pressure as Chinese memory chipmakers CXMT and YMTC rapidly narrow the technology gap. While Chinese firms gain ground in the DRAM sector through aggressive pricing, Samsung’s NAND flash technology lead is also shrinking. The company is now set to use YMTC’s patented hybrid bonding technology for its next-generation NAND production, a move highlighting its R&D struggles. Industry insiders suggest that Samsung’s semiconductor division is facing difficulties advancing its latest DRAM and NAND flash technologies, making strategic shifts inevitable.
Nextrade to launch 12-hour stock trading in South Korea
South Korea’s first alternative trading system (ATS), Nextrade, will launch on March 4, providing an additional platform for stock trading alongside the Korea Exchange (KRX). The launch will extend stock trading hours to 12 hours a day, from 8 a.m. to 8 p.m., including pre-market (8 a.m.-8:50 a.m.) and aftermarket (3:30 p.m.-8 p.m.) sessions. This change allows working professionals to trade during commutes and lets investors react quickly to global market events after the regular 3:30 p.m. trading cutoff. With Nextrade, investors can also benefit from reduced transaction fees due to increased competition.
S. Korea restricts foreign land purchases on 17 key islands
South Korea has expanded foreign land ownership restrictions to 17 key locations, including 12 islands along the southern and western coastlines, such as Geomundo and Hongdo, as well as five northwestern islands (Baengnyeongdo, Yeonpyeongdo, and Daecheongdo) near the inter-Korean maritime border. This measure, widely seen as targeting China’s growing influence in the Yellow Sea, requires foreign buyers to obtain prior approval from local authorities before purchasing land. The new restrictions, marking the first expansion from eight since 2014, focus on areas of significant strategic, military, and national security importance. Unauthorized transactions will result in penalties of up to two years in prison or fines of up to 20 million won ($14,000).
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