Korean Morning Headlines — August 25, 2026

Politics

1. President Lee Jae-myung strengthens solidarity among party, administration, and presidential office ahead of September regular session Following the first high-level party-government consultative meeting since the inauguration of Democratic Party leader Kim Min-seok's leadership, President Lee is holding consecutive meetings this week with the Democratic Party's new leadership, affiliated lawmakers, and heads of major conglomerates. The goal is to quickly mend internal party conflicts that arose during the August 17 national convention and push forward with legislation and budget agreements for the second half's national tasks.

2. President signals expansion of police authority and government organization reorganization On the 25th, President Lee Jae-myung stated that the police will soon possess the largest authority among government agencies, mentioning the need to establish a new government organization to oversee police affairs.

3. Ministry of Foreign Affairs holds South Korea-Mexico foreign ministers' meeting The Ministry of Foreign Affairs held a South Korea-Mexico foreign ministers' meeting and luncheon schedule on the 24th, discussing bilateral cooperation measures.

1 sources

mt.co.kr

與 접점 넓히는 李대통령…입법계절 앞두고

Economy

1. Markets split between 'rate hike' and 'freeze' ahead of the 27th Monetary Policy Board meeting Ahead of the Bank of Korea's August base rate decision, the market is tightly divided over an additional hike versus a freeze. The final rate level, pace of hikes, revised economic forecasts, and the Governor's remarks are drawing attention as key points that will determine future bond yields and tightening intensity.

2. 63% of economic experts forecast consecutive rate hikes by the Bank of Korea for two months According to a survey by the Hankyung Economist Club, 63% of economic experts predict the Bank of Korea will raise interest rates for two consecutive months, while 37% expect a pause this month. Additionally, 37% responded that this year's growth rate will exceed 3.2%, and the interest rate at the end of next year is projected at 3.5% per annum.

3. Household debt, inflation, and exchange rates form a complex equation for the base rate decision Household debt growth, the impact of inflation driven by solid semiconductor-centered growth, and exchange rate volatility are acting as complex factors in the base rate decision. KDI pointed out these phenomena in its August economic report.

4. Ruling party and government emphasize active fiscal policy and future industry investments The Democratic Party and the government emphasized on the 25th that an active role for fiscal policy is essential amid accelerating government investments in future industries.

1 sources

seoul.co.kr

‘인상 vs 동결’ 금리 전망 팽팽… 27일 금통위 주목할 포인트 셋 | 서울신문

Society

1. 'Resting' youth reach 680,000 per month, while large corporation wages are 56% higher than SMEs This year, the number of 'resting' people in their 20s and 30s averaged 680,000 per month, and the proportion of young people unemployed for a year or more after college graduation surged to 48.6%. FKI pointed out that the seniority-based wage system and rigid working hours are the problems.

2. 80% of increased jobs go to seniors... Youth jobs decline for the third consecutive year While wage-earning jobs in the first quarter of this year increased by nearly 300,000 compared to a year ago, most went to the elderly aged 60 and older. Jobs for the younger generation in their 20s and below have declined for over three years, and the proportion of jobs for those in their 20s and below dropped to the lowest level ever.

3. Major economic indicators to be released sequentially at the end of August Along with the Bank of Korea's base rate meeting, major statistical indicators to review South Korea's economic trends next week (August 24–28), such as production, consumption, and household income, are scheduled to be released consecutively.

All information was collected from official news media outlets. Please check the source links for detailed information on each item.

1 sources

sedaily.com

전대 끝나도 ‘삐거덕’…李, 與지도부·의원 불러 ‘원팀’ 재정비 | 서울경제