South Korea

Joongang Ilbo | English | News | Nov. 19, 2025 | UndeterminedEmployment

Korea is experiencing the longest continuous decline in youth employment rates since the 2009 global financial crisis, with the youth employment rate falling to 44.6 percent last month, down 1 percentage point from a year earlier. This decline has persisted for 18 months and coincides with a rise in long-term youth unemployment. As of last month, 35,000 young people aged 20s and 30s with at least a four-year university degree were unemployed for more than six months while actively seeking work, an increase of 7,000 from the previous year. Among them, 19,000 were aged 25 to 29, a key demographic of recent graduates.

The total number of long-term unemployed individuals also rose to 119,000, up by 21,000 from the previous year, marking the highest level since October 2021. Analysts cite a mismatch between young job seekers’ expectations and available job opportunities as a major factor. A recent government survey found that 34.1 percent of young people aged 15 to 29 who were economically inactive or nonwage earners reported difficulty finding desirable jobs as the primary reason.

The Bank of Korea (BOK) highlights the impact of automation and artificial intelligence on youth employment, reporting that 211,000 entry-level jobs were lost between the second half of 2022 and the first half of this year, with 98.6 percent of those losses in industries rapidly adopting AI technology. Employers’ preference for experienced candidates further limits opportunities for recent graduates. Additionally, there are concerns that extending the retirement age will restrict openings for younger workers. Experts emphasize the need for labor market flexibility and improvements in university education to enhance young workers’ productivity and job prospects.

Joongang Ilbo | English | News | Nov. 19, 2025 | Supply Chain Issues

A nationwide lettuce shortage in Korea, caused by abnormal weather patterns, is disrupting supply chains for major franchise restaurants. Chains like Lotteria and Subway are facing difficulty sourcing lettuce, leading to the adoption of cabbage as a temporary substitute in some menu items.

The shortage results from an unusually hot summer followed by a sudden temperature drop, which caused cold damage and delayed lettuce crop growth. Wholesale prices for iceberg lettuce have surged by 116 percent since November 1, reaching 5,188 won ($3.55) per kilogram, and have increased 225 percent compared to early 2025.

Lotteria is using cabbage to maintain the volume of vegetables in its burgers, while Subway has suspended sales of certain salad items due to supply challenges related to heat and humidity. Industry officials highlight that reduced production has made it difficult for suppliers to meet the demand from restaurant chains.

증권사만 나홀로 3분기 대출 증가세

ZD Net Korea | Local Language | News | Nov. 19, 2025 | UndeterminedFinancial System Problems

In the third quarter of 2025, only securities firms among financial institutions showed consecutive loan growth, while deposit-taking banks and non-bank lenders experienced a slowdown or decline in household lending. Deposit-taking banks increased household loans by 10.1 trillion won, down from 19.3 trillion won in the previous quarter. Non-bank institutions, including insurers, savings banks, and card companies, saw their household lending shrink by 2 trillion won, decreasing from a 3 trillion won increase in the second quarter.

Specifically, insurers reduced loans by 1.2 trillion won, a greater decline than the previous quarter's 0.7 trillion won decrease. Card companies also expanded their loan reduction from 0.6 trillion won in the second quarter to 1.6 trillion won in the third quarter. Entities such as the Housing and Urban Fund and the Korea Housing Finance Corporation similarly cut back on household lending.

Only brokerage firms, encompassing securities firms, asset securitization companies, and moneylenders, increased household lending for the second consecutive quarter, though growth slowed to 3.7 trillion won in the third quarter from 5.3 trillion won in the second. This increase is linked to ongoing financial authority warnings against "debt investing," where households borrow funds to invest in stocks.

Margin loan balances have risen sharply alongside a surge in stock market trading volumes, growing from 18.8 trillion won in 2020–2025 to about 26 trillion won by mid-November 2025. In response, financial regulators have implemented strengthened monitoring systems. Despite the slowed loan growth by securities firms in the third quarter, future credit trends remain uncertain due to their close relationship with stock market performance.