The government stands to lose 1 trillion won ($765.2 million) in tax revenues annually should it decide to abandon a proposed capital gains tax on returns from financial investments, a main opposition party lawmaker warned, Wednesday.
A 33-year-old man, who asked to be identified only by his surname Choi, recently experienced a rude shock while trying to make a reservation for Christmas at a restaurant in Seoul. In his view, the price and conditions for booking were ridiculous. He found the situation to be similar at other restaurants he checked too.
A surge in borrowing costs is making life tougher for Koreans who are already struggling with record household debt, with an estimated 1.2 million individual borrowers likely to be incapable of paying back debts. Such an extreme financial situation is pushing more borrowers to turn to private money lenders as a last resort in order to live, which in turn, increases their debt and adds to concerns over the sluggish economy.
The nation s foreign exchange reserves extended losses in October again after the Bank of Korea (BOK) sold dollar reserves as part of efforts to defend the sharp depreciation of the local currency against the greenback. While the government says the country still has abundant foreign exchange reserves, experts are urging it to take preemptive measures, as fear can trigger a crisis amid external and internal uncertainties.