The Minute to Read (Weekdays) series provides a quick overview of significant events in Korea everyday, conveniently condensed into a one-minute read. Here’s a recap of what happened yesterday: June 30.

South Korea is facing a significant tax revenue shortfall for the second consecutive year, with estimates ranging from 10 to potentially 20 trillion won, as fiscal challenges persist amid fluctuating economic conditions. /News1

S. Korea’s tax shortfall set to surpass $7 bn, may double by year-end

South Korea is facing an estimated tax revenue shortfall of around 10 trillion won ($7.2 billion) this year, potentially more than doubling based on second-half conditions.

This follows a similar shortfall last year, and the Ministry of Economy and Finance is assessing the scale by comparing current trends to previous years with shortfalls, such as 2020, 2013, and 2014.

From January to May, $109.3 billion in national taxes was collected, $6.5 billion less than the same period last year, with corporate tax collections significantly down. The overall national tax revenue collection rate is more than 5 percentage points below the five-year average, indicating a challenging fiscal situation.

If the current trends continue and additional taxes are not collected, particularly during the corporate tax prepayment in August, the shortfall could substantially increase, complicating the Ministry of Economy and Finance’s efforts to manage the fiscal deficit.

Kim Song-nam, the head of the Workers' Party International Department, is seen wearing a badge with Kim Jong-un's face on his left chest while participating in a discussion on Jun. 29, 2024. This is the first time a badge featuring Kim Jong-un has been observed. /Yonhap News.

‘Kim Jong-un Badges’ make debut at N. Korean official event

For the first time, North Korean officials have been observed wearing badges with Supreme Leader Kim Jong-un’s face at an official event, signaling a new phase in his idolization. Photos from the Korean Central News Agency and Rodong Sinmun show officials at the 10th Plenary Meeting of the 8th Central Committee of the Workers’ Party of Korea all donning these badges.

This marks a significant step in the idolization of Kim Jong-un, as such portrait badges are a traditional symbol of reverence for the Kim family, typically worn by all citizens and officials. The presence of these badges at a high-level meeting indicates that the idolization of Kim Jong-un is now in full effect.

Naver and Kakao, South Korea's leading platform companies, have experienced a dramatic decrease in new hires and overall workforce, raising concerns about their growth potential amidst challenging economic conditions. /ChosunBiz DB

Naver and Kakao, S. Korean platform giants, face workforce reductions

Last year, South Korea’s major platform companies, Naver and Kakao, saw a significant reduction in new hires, with a total of 683 new employees compared to 1,469 the previous year, marking a two-year decline.

Naver’s new hires dropped from 838 in 2021 to 231 last year, and Kakao’s from 994 to 452 over the same period. This decline led to a decrease in the overall workforce, with Naver’s workforce reducing by 11% and Kakao’s by 0.5%.

Both companies attribute the reduced hiring to external economic conditions and internal affiliate adjustments, while focusing on investments in new growth areas like artificial intelligence.

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