Insight & Opinion The Paradox of Stock Prices Moving Separately from the Economy
The stock market is experiencing volatility. However, compared to the beginning of this year, the KOSPI growth rate still exceeds 60%. This year’s growth outlook is projected to be just above 1%, which is worse than last year’s 2.0%. Yet, stock prices are moving in the opposite direction. While the KOSPI fell by 9.6% last year, it is recording the highest growth rate among major global markets this year. The reality of a lukewarm economy alongside a relatively strong stock market appears to defy basic economic principles. It is commonly said that stock prices reflect corporate profitability and growth potential. Over the long term, this holds true. In the long run, stock prices move in tandem with the economy. In South Korea, the KOSPI index has historically moved in line with nominal Gross Domestic Product (GDP). From 2000 to 2024, South Korea’s nominal GDP increased by an annual average of 5.9%, while the KOSPI rose by a slightly higher annual average of 6.7%. However, in the short t

2025.11.07 13:44
Unstagram Political Photos and 'Photogenic'
On October 30, as President Donald Trump departed Japan after his visit, a single black-and-white photo featuring President Trump and Japanese Prime Minister Sanae Takaichi was posted on Trump’s social media. There was no caption or byline?just the photo itself. The picture appears to have been taken right after the U.S.-Japan summit on October 28. It was a photo that spoke for itself. Even the entourages posing like a mise-en-scene made it look like a movie poster. This single image seemed to encapsulate the entirety of the current relationship between the two countries. Someone even commented on Facebook that it looked like “a wealthy older brother and his youngest sister.” Just like the previously reported moment when Trump jumped up energetically with one hand raised in front of U.S. soldiers, his petite frame and lively smile were, quite literally, “photogenic.” Anyone’s life and attitude are revealed through their expressions and gestures. When these are captured by the camera a

2025.11.07 12:01
Namsan Stroll Life Is Short, Art Is Long
At the recently held 2025 Asia-Pacific Economic Cooperation (APEC) Summit, "Cultural and Creative Industries (CCI)" was officially adopted as an agenda item. Under the theme "New Horizons for Prosperity," member countries affirmed that the cultural industry is not merely a series of events, but a key driver of economic growth, job creation, and the expansion of intellectual property (IP). Cutting-edge technologies such as artificial intelligence (AI), augmented reality (AR), and non-fungible tokens (NFTs) are revolutionizing the creation and distribution of culture. At the same time, the fusion of art and technology is ushering in a new era of the creative economy, where national competitiveness is driven by this synergy. Within this global trend, Korea has already demonstrated its potential in the fields of music and film. BTS, Blackpink, the film "Parasite," and the series "Squid Game" have captivated global audiences not just as popular culture content, but through their compelling

2025.11.07 11:15

Paek Jongmin's Deep Tech

Those Who Make Scientists Sad

Calls for fostering and retaining STEM talent, as well as attracting overseas experts, are louder than ever. The previous administration, having witnessed the scientific community's outrage over the unprecedented R&D budget cuts reflected in voting sentiment, belatedly moved to abolish the designation of government-funded research institutes as public institutions and to increase funding. However, even under the Lee Jaemyung administration, the aftereffects continue to this day. It is not only difficult to nurture talent, but also to retain it. This challenge is particularly acute for government-funded research institutes under the Ministry of Science and ICT, which carry out national research projects. Compared to corporations and universities, these institutes suffer from poorer research environments and cannot claim to offer better treatment. The head of a Global Top Strategy Research Group, tasked by the Ministry of Science and ICT with developing next-generation technologies, cand

2025.11.07 11:04

Reporter’s Notebook

Small Capital Startup Owners Ultimately Hope for a Lottery Win

"Now, the only answer is the lottery. Buying a lottery ticket before heading to my shop on Monday has become my routine." While covering the feature article "The Trap of Small Capital Startups," I ended up exchanging jokes with fellow business owners my age. When I mentioned going to buy a lottery ticket before opening the shop, someone replied, "Shouldn't you be hoping for lots of customers and a booming business instead?" But the answer came back that winning the lottery is the only way to pay off the debt incurred at the time of starting the business. It's not that business is bad. His small beer pub, located in a busy area of the Seoul metropolitan area, is always bustling with customers despite its modest size. On good days, daily sales can reach 2.5 million won. And yet, he relies on the lottery, which is statistically a losing game. What has driven him to this point? Many novice business owners, often called "prospective entrepreneurs," choose to open franchise stores with guara

2025.11.07 10:18

Inside Chodong

The Failed Comprehensive Real Estate Holding Tax Now Needs Reform

"I will stake my presidency to eradicate speculation." In April 2003, shortly after taking office, President Roh Moo-hyun declared a war on speculation during a speech at the National Assembly. At the time, to overcome the foreign exchange crisis, interest rates were lowered and welfare spending increased, flooding the market with liquidity. With nowhere else to go, this capital surged into real estate, causing housing prices in Seoul, especially in Gangnam, to soar uncontrollably. The Roh administration, under the banner of rooting out speculative forces, focused more on suppressing demand than expanding supply, even creating the unprecedented comprehensive real estate holding tax. Because it emerged from study groups that repeatedly discussed Henry George's "Progress and Poverty," which advocates the concept of public land ownership, the tax was criticized as an "ideological tax." It was also called the "Gangnam tax," as even owning a single unit in Dogok-dong's Tower Palace made one

2025.11.07 07:32

Asia Report

Why Korea Is Powerless in the Face of the Cambodia Kidnapping Incident

The shockwave caused by the abduction of a Korean national at a scam compound in Cambodia is significant. Not only have those who planned trips to Cambodia begun to cancel in droves, but the ripple effect of anxiety and fear is spreading to neighboring countries such as Laos, Thailand, and Myanmar. Over the past decade, South Korea has spun countless optimistic narratives about the Mekong region, which was the top partner for the "New Southern Policy" during the Moon Jae-in administration. However, all those dazzling prospects for the future have now completely collapsed. Even the author and colleagues, who have long studied Southeast Asia, are now asking themselves, "Have we been too optimistic about this region?" In fact, it is not unusual for Koreans to become victims of crimes overseas. However, there is a particular reason why this incident is being received as something "special." For the first time, the public is collectively experiencing the realization that Korea's national se

2025.11.06 11:00

Reporter’s Notebook

Homeplus: Rehabilitation Is Not the Only Answer

Two companies have officially expressed their intention to acquire Homeplus, which is undergoing a pre-court approval M&A process as part of its corporate rehabilitation. However, the market’s response has been cold, as doubts persist regarding the financial soundness and management capabilities of these companies. The CEO of Harex InfoTech, an artificial intelligence (AI) company participating in the acquisition race, met with reporters on November 4 and only stated, “We will connect everything through AI,” without presenting any concrete vision for the company after the acquisition. The other contender, Snowmad, a real estate leasing and development company, has no experience in the retail industry and posted a net loss last year. As a result, while Homeplus’s corporate rehabilitation is outwardly being promoted as a “revival,” many point out that it is closer to mere survival than true recovery. Homeplus was once a retail giant with over 140 stores nationwide. However, the spread of

2025.11.06 09:08

The Editors' Verdict

Will Raising the Holding Tax Really Control Gangnam Property Prices?

Let's assume you own one home each in Songpa and Mapo in Seoul, and in Gyeonggi Province. Next year, the property holding tax (comprising the property tax and the comprehensive real estate tax) will be raised to 1%. (Deputy Prime Minister and Minister of Economy and Finance Koo Yuncheol stated, "If the holding tax is set at 1%, and if your home is worth 5 billion won, paying 50 million won a year would be unsustainable.") Given this, you decide to sell one of your properties. Which one should you sell first? And what should you do with the proceeds? Many people would likely start by selling their lower-tier properties. The cash they secure would probably be poured into purchasing a top-tier apartment. After all, isn't owning a "smart single property" important to everyone? While the government has imposed restrictions on loans and transactions, it cannot block transactions for actual residence. Despite the October 15 measures, which layered regulations across all of Seoul and major are

2025.11.06 07:58

Insight & Opinion

Korea in Full Bloom: If Only Politics Would Change

Amid global attention, the Asia-Pacific Economic Cooperation (APEC) summit was successfully held. The long-standing issue of the Korea-U.S. tariff negotiations was resolved, and there were several diplomatic achievements as well. National pride in Korean culture and its international resonance were reaffirmed. The favorable moves of Jensen Huang, CEO of Nvidia, who attended the CEO summit, also fueled the bullish rally in our stock market. The stock market soared to record-high index levels, and semiconductor-led exports have continued their upward trend for several months. It is the peak of autumn, filled with vibrant foliage. In recent days, the weather has turned quite chilly, as if foreshadowing winter. Behind the diplomatic achievements, however, remain unresolved challenges. The mid- to long-term outlook for the overheated stock market is another issue, and real economic challenges such as employment structure and the difficulties faced by ordinary people still persist. Above all

2025.11.05 11:20

See More Columns See More Columns Icon