The money woes in Squid Game are real
(BLOOMBERG) - Hit TV series Squid Game may be exciting to watch, but its focus on the woes of the working class in South Korea is hitting too close to home. Decades of super-charged growth have left a deeply stratified society, where soaring house prices and a lack of social mobility fuel excessive borrowing. Discrimination against women, the elderly and migrant workers is deeply entrenched and many younger people find life such a grind they're giving up altogether. The desperation is probably the reason why Squid Game's depiction of contestants betting their lives to win 45.6 billion won (S$52.3 million) while super-rich VIPs watch on contains many realistic moments true to South Koreans' everyday struggles. For instance, some of the contestants came from Ssangmun Dong, the northern neighbourhood of Seoul that is in direct geographic and economic opposition to the affluent Gangnam area. These cramped flats built half below ground level have become the last resort for South Korea's underclass as apartment prices have surged 70 per cent in the past five years, pushing the average price of an apartment in Seoul beyond US$1 million (S$1.35 million). The Land Ministry estimated 1.6 per...
South Korea’s inflation quickens as central bank mulls rate hike
(Bloomberg) - South Korea's inflation unexpectedly climbed in July as the central bank prepares to meet on rates amid the nation's worst coronavirus outbreak yet. Consumer prices rose 2.6 per cent from a year earlier, accelerating from a 2.4 per cent pace the prior month, the statistics office reported Tuesday. Economists had expected the rate to stay at June's level. The pickup in inflation comes as a recent surge in virus infections to over 1,000 new cases a day and tougher social distancing rules cloud the outlook. Bank of Korea Governor Lee Ju-yeol has signalled he's preparing to raise rates to prevent asset bubbles from worsening, but he's also said the timing depends on the virus situation. The BOK meets on Aug 26 for a rate decision. Headline inflation has now exceeded the central bank's mid-term goal of 2 per cent every month since April, pushed up partly because of the comparison with last year's dismal figures. The BOK sees price gains fluctuating around its target for the rest of the year before sliding lower in 2022. A report last week showed Korea's growth slowed last quarter from its speedy pace at the start of the year, but the central bank made clear it still sees t...
South Korea’s jobless rate hits 10-year high as Covid-19 cases surge
SEOUL (BLOOMBERG) - South Korea's jobless rate hit a 10-year high in December as the country's worst coronavirus outbreak forced businesses to slash hiring. The unemployment rate reached 4.6 per cent last month, data from the statistical office showed on Wednesday (Jan 13). Economists had forecast the reading to be unchanged from November's 4.1 per cent. The nation shed 628,000 jobs compared with the prior year, the largest losses since the start of the pandemic and a tenth straight month of declining employment. The job losses and elevated unemployment rate highlight the impact of tightened social distancing rules as South Korea's daily infection tally surged to beyond 1,000 last month. The shutdown of high-risk facilities such as karaoke parlors and a shortening of business hours for most shops have hurt service sector jobs. To ease the pain, the government plans to give cash handouts worth 4.6 trillion won (S$5.56 billion) to millions of South Koreans before the Lunar New Year holiday next month and front-load its fiscal spending in the first half of the year. South Korea's ongoing recovery in exports has supported the broader economy, but the job market outlook depends on a suc...