Korea's potential economic growth rate has dropped to 2%.

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• Korea's potential economic growth rate has dropped to 2%.

• More than 40% of foreign deaths in Korea are attributed to unknown causes.

• SM Entertainment has responded to the malicious comments targeting RIIZE and former member Seunghan.

NEWS 📰

Korea's potential economic growth rate has dropped to 2%.

Korea's potential growth rate is projected to remain at 2% for two consecutive years, marking a 0.4 percentage point decrease compared to three years ago, according to data released Sunday.

The finance ministry, in a report to the National Assembly, shared that the OECD forecasts Korea’s potential growth rate to stay at 2% for 2024. This figure was 2.4% in both 2020 and 2021, dropped to 2.3% in 2022, and has stood at 2% since last year.

The potential growth rate reflects the maximum GDP increase a country can achieve by fully utilizing its resources without causing inflation. Typically, wealthier countries experience slower growth.

Despite this decline, Korea's growth rate remains higher than that of any G7 nation except the U.S., which currently stands at 2.1%. However, other major economies are on an upward trend, signaling that Korea's growth could further drop unless policy measures are implemented.

For instance, the U.S. has surpassed Korea for two years, driven by foreign talent inflows and advances in its IT sector, with its potential growth rate rising from 1.9% in 2020-2021 to 2.1% last year.

Other advanced economies have also reported growth increases. The U.K.'s rate climbed from 0.9% in 2020 to 1.2% last year, stabilizing at 1.1% this year. Germany’s rate also saw an uptick from 0.7% in 2020 to 0.8% this year.

Forecasts suggest that Korea’s potential growth rate could drop into the 0% range by the 2040s. The Korea Chamber of Commerce and Industry (KCCI) predicts a fall to 1.2% by 2030 and 0.7% by 2040, while the National Assembly Budget Office (NABO) expects both real and potential growth to decline, reaching 2% by 2028.

"This reflects the shrinking growth potential, primarily due to a slowdown in labor and capital input," the NABO explained.

Experts point to a shrinking working-age population as the key factor limiting Korea’s growth potential. The population aged 15 to 64 is projected to drop from 71.1% in 2022 to 45.8% by 2072.

"A declining birthrate and aging population not only reduce labor supply but also hinder the recruitment of young, skilled talent, which is essential for innovation," said Kim Cheon-koo, a KCCI research fellow.

Kim recommended policies to attract specialized foreign talent, support female researchers, and promote industries with high innovation potential to help Korea address its slowing productivity and growth rate.

More than 40% of foreign deaths in Korea are attributed to unknown causes.

International students and foreign workers in Seoul can now benefit from a 10 percent discount on express mail service (EMS) at post offices, with an additional 3 percent discount for online pre-registration, the Seoul Metropolitan Government announced. This discount was previously limited to naturalized immigrants and multicultural families under the Multicultural Families Support Act.

Since the program's launch in 2011, around 87,000 fare discounts totaling approximately 380 million won have been provided to multicultural families. Now, the initiative has been expanded to include a wider range of foreign residents, including those on F-6, D-2, D-4, E-9, H-2, F-5, D-10, F-1, and F-3 visas.

Eligible individuals must present proper identification when visiting post offices to receive the discount. The initiative aims to make EMS deliveries more affordable and accessible to the growing number of international students and foreign workers in Seoul. Further details are available on the Seoul Hanultari and Seoul Foreigner Portal websites.

ENTERTAINMENT 🌄

SM Entertainment has responded to the malicious comments targeting RIIZE and former member Seunghan.

SM Entertainment is taking legal action against individuals spreading malicious comments and false information about the boy group RIIZE and former member Seunghan.

On Thursday, the agency stated, "We are gathering reports from fans and monitoring online posts that include threats, defamation, and insults directed at RIIZE members. We focus on filing legal complaints against those spreading false information on specific platforms." The agency also revealed that some individuals have been prosecuted for posing as RIIZE members' acquaintances on Instagram to spread false information or commit illegal acts.

SM emphasized that spreading rumors and false information is illegal and vowed to take firm action to protect the artists' rights. They encouraged fans to report malicious posts and comments.

"(SM Entertainment) will continue to take strict measures against those who post harmful content and videos targeting RIIZE on platforms such as Instagram, X, and YouTube, both domestically and internationally. We will respond to these illegal activities without compromise," the agency added, urging the public to avoid involvement in such incidents.

The agency expressed gratitude for the fans' unwavering support for RIIZE and asked them to actively report any illegal activities related to the group.

In a separate statement, SM Entertainment also announced legal action against individuals posting hateful comments about Seunghan. They stated, "Since his debut, we have monitored false information, personal attacks, and defamation targeting Seunghan. We have gathered extensive evidence and have taken steps, including filing criminal complaints, and will show no leniency."

Seunghan, who debuted with RIIZE in September last year, faced controversies about his private life before debut, which led to an indefinite hiatus two months later. Last week, SM announced his return, saying that having all seven members would make the group’s next chapter more meaningful. However, after backlash from fans, SM reversed the decision two days later, announcing Seunghan’s departure.

"We realized that our decision caused confusion and pain among fans," the agency stated. "Seunghan has expressed his desire to leave the team for the sake of the members and fans."

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