SEOUL — At a briefing held on June 18, the Bank of Korea (BOK) projected that consumer price inflation will decrease to the mid-2% range in the second half of 2024. This forecast comes as the first half of the year saw a 2.9% inflation rate, a slight decrease from the 3.3% recorded in the latter half of the previous year, yet still a notably high level. The overall price level remains elevated due to accumulated inflationary pressures since the pandemic.

However, core inflation has recently fallen to the low 2% range, and key indicators suggest that the overall inflationary trend is stabilizing. These factors indicate a gradual easing of price pressures.

The BOK anticipates that international oil prices and grain prices will continue to stabilize and that inflationary pressures from the demand side will remain subdued. Consequently, the central bank expects the inflation rate for the second half of the year to settle in the mid to upper 2% range. BOK Governor Changyong Lee stated, “Prices are expected to follow a gentle downward trajectory consistent with our May outlook. However, we remain vigilant given the uncertainties posed by geopolitical risks and changing weather conditions.”

The BOK particularly highlighted the potential volatility in agricultural prices due to climate change as a risk factor. Empirical analysis indicates that a 1-degree Celsius increase in average temperature could lead to a 2% rise in agricultural prices and a 0.7% increase in consumer prices in the long term. Additionally, the recent trend of some companies raising prices could further complicate the inflation outlook.

Governor Lee emphasized the need for a coordinated effort between the government’s structural reform initiatives and the BOK’s monetary policy to achieve price stability. He pointed out that the higher inflation rate and cost of living in Korea compared to other major economies are largely due to structural issues. Thus, the government needs to address fundamental weaknesses by diversifying supply chains and modernizing distribution systems. Meanwhile, the BOK must continue to implement monetary policy that considers macroeconomic conditions and financial stability.

“While monetary policy can address inflation, resolving the high price levels requires the government’s structural reform efforts,” said Governor Lee. “We will closely coordinate with the government in managing the inflation target.”

Market analysts view the BOK’s announcement as a comprehensive evaluation of inflation and a call for policy coordination. Experts advise maintaining policy flexibility and active communication with the government to manage inflation effectively amid complex domestic and international conditions.

Ultimately, the key is for the government and the BOK to work together to ensure stable price management. Effective management of market expectations and efforts to strengthen the economy’s resilience in the long term are crucial for achieving genuine price stability.

At this juncture, the BOK’s prudent yet proactive monetary policy approach, the government’s macroeconomic risk management, and close coordination between the two institutions are more important than ever. Proactive measures to address structural weaknesses and ensure effective policy implementation are essential for maintaining economic stability.

In a recent publication titled “2024 Second Half Economic Outlook,” NH Investment & Securities has identified industrial innovation, particularly centered in the United States, as the key driving force for the global economy. The report highlights how increased investments in advanced technologies such as AI and software are enhancing corporate productivity, thereby creating a virtuous cycle of economic growth.

The research division of NH Investment & Securities remarked, “For the first time in nearly 30 years since the early 1990s, the U.S. is experiencing a rise in potential growth rates. This is supported by robust fundamentals such as population growth, increased investments, and improvements in labor productivity.” Notably, the surge in U.S. software investments over the past two years has almost reached levels seen in the early ’90s.

The report also predicts that U.S.-led industrial innovation will not only drive global economic growth but also accelerate decoupling trends between nations. It states, “With advanced technology and supply chain investments concentrated in the U.S., the economic gap with other regions like Europe and China is expected to widen further.”

Europe may sustain itself temporarily due to increased defense spending in response to the Russia-Ukraine war, but its lack of innovative industries is likely to weaken its growth momentum. In China, issues such as a declining population and a sluggish real estate market are reducing potential growth rates, leading to limited economic rebounds.

NH Investment & Securities forecasts that the current expansion phase led by the U.S. could continue until 2025. However, it warns of potential long-term risks, particularly for sectors vulnerable to high interest rates, which could lead to a hard landing eventually.

The report cautions, “In 3-4 years, rising proportions of households with high-interest loans and a surge in maturing corporate bonds could manifest as financial distress. Nevertheless, the overall economic risk remains contained as the proportion of vulnerable groups is currently not high.”

Regarding the Federal Reserve’s monetary policy, the report suggests a slower pace of rate cuts. Despite a slowdown in growth and stabilization of prices, the increase in potential growth rates could result in a higher neutral interest rate level.

Additionally, the Fed is expected to control the pace of its quantitative tightening (QT) to mitigate sharp fluctuations in long-term interest rates. This approach is anticipated to help normalize the yield curve by resolving the inversion between short and long-term rates.

On the Korean economy, the report expresses concerns over weakened growth drivers in both exports and domestic demand. It notes that the export growth rate is slowing, while high-interest rates continue to hamper private consumption and construction investment.

However, it also points out that the financial leverage of households and businesses in Korea is relatively sound compared to other major economies, limiting financial risks. The domestic economy is projected to gradually recover starting from the second half of 2024.

On June 10, Apple unveiled a range of new products and services centered around artificial intelligence (AI) at its annual Worldwide Developers Conference (WWDC), presenting a bold vision for leading the next wave of IT innovation. The event, held at Apple Park, commenced with a keynote address by CEO Tim Cook, drawing the attention of developers and media worldwide.

“We aim to transform AI technology into everyday innovation, not just a tool,” stated Cook. “By leveraging Apple’s unique, human-centric approach, we will maximize AI’s potential.” This statement underscores Apple’s commitment to securing new competitive advantages amid the rapid paradigm shift in the IT industry driven by advancements in AI technologies like ChatGPT.

The highlight of this year’s WWDC was ‘Apple Intelligence,’ an AI platform integrated across all Apple devices. This platform processes user data on-device, ensuring privacy while delivering an enhanced user experience.

Siri, the voice assistant, will become more intelligent with the integration of OpenAI’s GPT engine. It will understand context, learn personal preferences to offer customized services, and even recognize emotions for empathetic interactions. Additionally, on the iPhone lock screen, Siri’s animated avatar, ‘Geni’ will act as a personal assistant, providing various information.

AI features to boost productivity have also been significantly enhanced. The ‘Intelligent Compose’ assistant helps with writing emails and documents by suggesting context-appropriate words and optimized sentence structures. The ‘Intelligent Organizer’ automatically manages schedules and priorities, while ‘Smart Recall’ organizes meeting notes and to-do lists efficiently.

Apple also introduced AI technologies that revolutionize visual experiences. The camera app now includes real-time object recognition and auto-correction, enabling users to take professional-grade photos effortlessly. The ‘Genmoji’ feature learns the user’s facial characteristics to create personalized avatar emojis, supporting the creation of entertaining videos.

These innovations are expected to synergize with Apple’s ambitious next-generation AR headset, ‘Apple Vision Pro,’ which operates on visionOS 2 and features hand gesture controls. Apple also unveiled numerous APIs and development tools for Vision Pro, emphasizing the expansion of its developer ecosystem.

AI was also a key theme in updates to iOS 18, iPadOS 18, and macOS Sequoia. AI technologies were applied across various domains, including personalized recommendations, voice control, and visual recognition, focusing on delivering a seamless user experience.

Experts believe that WWDC 2024 has set a new standard for AI technology in the IT industry. Apple’s integrated approach, combining user-friendly yet innovative AI services, is seen as a distinctive strength.

However, concerns about data collection and privacy invasion have also been raised. Apple reassured that “privacy protection is a core value” and that its AI technologies are designed with privacy-first principles. Users will have control over their data through on-device processing, anonymization, and selective feature usage.

In summary, WWDC 2024 can be interpreted as Apple’s declaration to lead the future IT paradigm with an ‘AI-first’ strategy. By integrating AI with its existing innovation DNA, Apple plans to build a new ecosystem that maximizes user value. The IT industry and consumers are closely watching Apple’s moves, anticipating the dawn of a new AI era.

‘Playing Law,’ operated by Baba Ground, has announced the launch of a ‘summer special exhibition, Oasis Special,’ catering to the entire summer vacation season.

The first offering in the Oasis Special lineup is the selection of the top 15 rural trips for 4060 in 2023, following the success of last year’s popular ‘Local Travel Season 1,’ curated by the Rural Development Administration. This selection features a ‘zero fatigue’ healing package that encompasses meals, accommodation, and experiential activities. The chosen destinations include rural education farms, farm restaurants, and dining and experience establishments fostered by rural promotion organizations across the nation, boasting high levels of visitor satisfaction.

Among the 15 selected destinations are Jayland in Pocheon, Gyeonggi Province; ‘Field Flower Letter’ in Gangneung, Gangwon-do; ‘Vegetarian Healing Farm’ in Yeongwol; ‘Jangpungi Experience School’ in Hongcheon, Chungbuk; ‘Yegreen’ in Chungju; ‘Chupung Ryung Deer Farm’ in Yeongdong; ‘Yedang Big House’ in Dangjin; ‘Sunseong Royal Family Village’ in Wanju, Jeonbuk; ‘Two Hundred Million Happiness Dream Village’ in Jangheung, Jeollanam-do; ‘Jangheung Yedawon’ in Hampyeong; ‘Gallery Haru’ in Gyeongsan, Gyeongbuk-do; ‘Wind Sunshine Farm’ in Qingdao; ‘Dreaming Workshop’ in Jinju, Gyeongnam-do; ‘Mulsarang Rural Education Farm’ in Gwangju Metropolitan City; and ‘Muryeongsan Bandipyeong Village’ in Gwangju Metropolitan City.

The second feature of Oasis Special focuses on the Ministry of Agriculture, Food and Rural Affairs’ selection of 15 wellness trips that highlight regions renowned for their exceptional flavors. Throughout July, there will be a discount of KRW 50,000 on weekdays and KRW 30,000 on weekends, courtesy of a subsidy from the Ministry of Agriculture, Food and Rural Affairs.

The 15 chosen destinations for the wellness trips are ‘Salt River Village’ in Gangneung, Gangwon-do; ‘Anbande Jogwang Farm’ in Gangneung, Gangwon-do; ‘Mowol’ in Wonju; ‘Hwangto Gudul Village’ in Pyeongchang, Pyeongchang; ‘Water Love Education Farm’ in Jinju, Gyeongnam; Geumhyang Tea Garden in Hadong; ‘Gensel’ in Gyeongju, Gyeongbuk; ‘Agricultural Company Corporation Zhuan’ in Qingdao; ‘Thousand Cedar Forest’ in Gurye, Jeollanam-do; ‘Eco Wanggok’ in Naju; ‘Wild Bird Fence’ in Muan; ‘Dolmen Village’ in Hwasun; ‘Togul Fermentation Farm’ in Gochang, Jeonbuk; ‘Eoam Folk Village’ in Asan, Chungnam; and ‘Geumbongsan Farm’ in Chungju, Chungbuk.

Heo Jung, CEO of Baba Ground, stated, “While travel is important, returning to our daily routines is equally vital. With this in mind, we have focused on organizing fatigue-free trips and have also prepared refreshing benefits to help beat the summer heat.”

The Korea Agriculture, Fisheries and Forestry Service (KAFF) has recently published the ninth edition of its Farm Trend & Issue (FATI) report, which delves into the online discussions and keywords surrounding agricultural product anniversaries.

The report draws insights from a comprehensive analysis of over 360,000 articles published on various platforms such as news outlets, online communities, blogs, cafes, Twitter, Instagram, YouTube, and Facebook, spanning the years 2020 to 2023.

According to the report, the concept of “day marketing,” which involves promoting the sale of agricultural products in conjunction with their respective anniversaries, has proven to have a significant impact on consumer behavior and contributes to the overall revitalization of the agricultural and livestock industries.

For instance, sales of roses during the month of May, coinciding with ‘Rose Day,’ experienced a remarkable surge of at least 20% compared to the previous year (April). Similarly, the average weight of pork purchases in the first week of March, observed as ‘Pork Belly Day,’ increased by 10% from the first week of February.

Upon analyzing and evaluating online information related to agricultural product anniversaries between 2020 and 2023, the study found that ‘Rose Day,’ ‘Pork Belly Day,’ and ‘Garage Tteok Day’ exhibited the highest levels of awareness among consumers.

To gauge the level of awareness regarding agricultural product anniversaries, the report utilized three key indicators: information volume (the total amount of information referencing the anniversaries), social media (SNS) share (the proportion of SNS-generated information excluding media reports within the information volume), and reaction volume (the cumulative count of public reactions, such as views, shares, likes, and comments).

Results revealed that ‘Rose Day’ commanded exceptionally high awareness levels in terms of information volume (135,673) and SNS ratio (98.4%). ‘Pork Belly Day’ generated a lower amount of information (72,996) compared to ‘Rose Day,’ but it garnered the highest number of reactions (18.53 million) among all agricultural commemorative days. ‘Garage Tteok Day’ also garnered a substantial volume of information compared to other anniversaries.

In May, when ‘Rose Day’ was celebrated on May 14, many individuals expressed their emotions by gifting roses to their loved ones. The majority of comments (50%) conveyed positive sentiments, expressing the intention to present roses to loved ones, while neutral remarks (45%) affirmed the emotional stabilizing effect of roses.

The amount of information related to ‘Samgyeopsal Day’ (March 3), which remained relatively consistent at around 170,000 mentions every March until 2022, witnessed a 43% increase this year, surpassing 240,000 mentions—the highest recorded in the last four years. The surge in discussions is attributed to large-scale discount events held on ‘Pork Belly Day,’ which captured the attention of consumers amidst concerns over inflation.

‘Garaetteok Day’ (November 11) often appeared alongside mentions of “Farmer’s Day” or “Stick Pastry Day,” both celebrated on the same date.

Online sentiment overwhelmingly leaned positive (87%), emphasizing the importance of recognizing November 11th as ‘Garaetteok Day’ rather than ‘Lollipop Day.’ There was a call for increased awareness and enjoyment of ‘Garaetteok Day’ among a wider audience.

For further details and analysis, readers can refer to the ninth issue of Farm Trend&Issue (FATI), a trend report focusing on agricultural and rural matters, published by Nongwon. The report is available on the Nongwon website.

Konkuk University has commenced its application process for the academic year 2024, accepting submissions from July 3-5.

The application requirements for prospective students are categorized into three types. Type 1 encompasses overseas nationals and foreigners, including children of overseas workers who have undergone at least three years of middle or high school education abroad. This category also includes children of overseas dispatched employees, local employees, and self-employed individuals. To be eligible for Type 1, applicants must fulfill the criteria of enrollment, residency, and employment abroad, as well as have completed the equivalent of the Korean academic curriculum (12th grade).

Type 2, open to overseas Koreans and foreigners, pertains to individuals who have completed their elementary, middle, and high school education abroad. There are no limitations on the number of available seats for this category.

Type 3 caters specifically to North Korean defectors as defined by the Act on the Protection and Resettlement of North Korean Defectors. It is important to note that this category does not include children of North Korean defectors born in a third country.

For the upcoming academic year, Konkuk University aims to admit a total of 60 students under Type 1 through the ‘Overseas Korean and Foreigner Entrance Examination.’ The number of applicants for Type 2 and Type 3 is unrestricted; however, the pre-veterinary program has a maximum capacity of three applicants for both Type 2 and Type 3.

Applicants falling under Type 1 and Type 3 are required to take a written test. In the fields of humanities and natural sciences, the written test scores will comprise 100% of the evaluation. In the performing arts category, three times the number of applicants will be selected based on the scores from the initial written test. The second stage of evaluation will consider 60% of the first-stage scores and 40% of the portfolio interview evaluation scores. As for the veterinary programs, Type 1 applicants are assessed using the same criteria as humanities and natural sciences, while Type 3 applicants follow the same process as those in the performing arts category.

The written test consists entirely of multiple-choice questions. The humanities section comprises 40 English questions and 40 Korean questions, whereas the natural sciences section includes 40 English questions and 25 math questions.

Konkuk University has scheduled the written test for July 21, followed by interviews on August 1. The first batch of successful applicants will be announced on September 1. For detailed information on eligibility and the selection process, interested individuals may refer to the recruitment guidelines available on the KU Admissions website.

Since 2011, KOTRA’s General Administrative Support Centre has annually published the Guide, which has become an essential reference for foreign investors considering entering Korea. Investment promotion organizations also use it as a necessary manual for guiding foreign-invested companies.

The booklet will be published in Korean, English, Chinese, and Japanese and distributed to interested companies in coordination with local governments, free economic zone authorities, and Korean missions. A free PDF version will also be available for download on KOTRA’s Invest KOREA website.

“We hope that this booklet will facilitate foreign investors in their decision-making and help expand their investments in Korea,” said Lee Kyung-Sik, head of KOTRA’s General Administrative Support Centre.

The Korea Secure Payments Agency (KSSA) has announced the launch of a new service that aims to alleviate the pain points of managing small businesses for zero-pay merchants.

These new services, including home delivery, job recruitment and search, and sales register, offer reliable, low-cost solutions by signing a representative contract with an affiliate on behalf of zero-pay merchants.

Small businesses struggling to empty their stores can benefit from door-to-door delivery, facilitated by the business partnership between Hanwha and Hanjin Express. With just one click on the ‘Zero Pay Merchant App,’ merchants can easily access the service, which costs at least 10% and up to 38% less than individual applications.

The Job Search service provides a platform for recruiting part-time and short-term workers, with a free monthly coupon worth 20,000 won.

The Sales Ledger service integrates card sales, online (delivery) sales, and other services, available for free.

The new ZeroPay business management service is accessible through the ZeroPay merchant app and will support six additional services, including tax, legal, labor, marketing, design, and joint purchasing within the year.

Choi Tong-joo, stated, “Through active service discovery and partner recruitment, we will continue to strive to provide high-quality, cost-effective business management and support services that help small businesses run stable stores.”

The book shows the stepping stone to achieving the economic freedom that Bodo Shaffer asserts exists. It helps readers find answers to where they are now, what goals they need to set, and how to manage their work, money, and life to achieve those goals. The author introduces Bodo Shaffer’s wealth leverage strategy, including a checklist to check current income status, practical tips from the author’s vivid experience, strategies for achieving high income by office workers, freelancers, investors, entrepreneurs, and experts, and success know-how. The book promises to improve one’s income by 20% or double it within three years.

Bodo Shaffer has delivered a special message to Korean readers through the preface of the book, recommending they read it. He said, “I have always been impressed by the way Koreans work. In this book, I have laid out all the secrets of how I worked hard to earn money, as well as the secrets of working smart and quickly accumulating wealth.”

The wealth accumulation formula that Bodo Shaffer applied and practiced in his own life is based on actual lectures and various consulting cases. The book covers five fields of making money (office workers, freelancers, investors, entrepreneurs, experts), how to check the way of thinking about money, 12 rules for making money in a changed era, and how to achieve high income in five fields. Regardless of the circumstances or conditions, the book promises to help readers find the answer to the question ‘How can I make money faster?’ through the leverage of Bodo Shaffer’s wealth.