The Minute to Read (Weekend) series provides a quick overview of significant events in Korea from the week, conveniently condensed into a one-minute read. Here’s a recap of what happened this week: Nov. 25-29.
Bank of Korea cuts rates to 3.0% amid growth concerns
The Bank of Korea unexpectedly cut its benchmark interest rate by 25 basis points to 3.0%, marking the second straight monthly reduction. In a statement on its monetary policy stance, the central bank noted, “While exchange rate volatility has risen, inflation continues to stabilize, household debt is slowing, and economic growth faces mounting downward pressure.” The statement added, “The Board has determined that an additional rate cut is necessary to mitigate the increasing risks to economic stability.”
South Korea’s banking sector sees wave of CEO changes
South Korea’s banking sector is undergoing a wave of leadership changes, with several major institutions poised to reshuffle their top executives. KB Financial Group (KBFG) has nominated Lee Hwan-joo, CEO of KB Life Insurance, as the new CEO candidate for KB Kookmin Bank. The announcement defied expectations, as many had anticipated the reappointment of current CEO Lee Jae-keun for a third term. At Woori Bank, the search for a new CEO is underway amid an ongoing prosecution investigation into allegations of improper lending practices involving relatives of Sohn Tae-seung, former chairman of Woori Financial Group. Current CEO Cho Byung-kyu, a suspect in the case, recently notified the board that he would not seek another term. All candidates for Woori’s top post are in their 50s, signaling an apparent move to rejuvenate leadership through generational change. Shinhan Bank’s CEO, Jeong Sang-hyeok, is widely expected to remain in his role, while Lee Seung-lyul, CEO of Hana Bank, is also likely to secure another term. However, speculation lingers about Lee’s future, as his tenure coincides with the expiration of Hana Financial Group Chairman Ham Young-joo’s term in March 2024.
Mexico-based South Korean companies face fallout from Trump’s tariff proposal
U.S. President-elect Donald Trump’s proposal to impose a 25% tariff on all goods imported from Mexico and Canada raises alarm among South Korean companies operating in the region. Currently, the United States-Mexico-Canada Agreement (USMCA) exempts products exported from these countries to the U.S. from tariffs. Attracted by Mexico’s lower labor costs, many South Korean firms have established a significant presence there, with approximately 2,000 companies currently operating there. The proposed trade policy shift has sparked concerns about potential disruptions to their business operations and supply chains.
Lotte reshuffles leadership, elevates Shin Yoo-yeol to vice president
Facing liquidity challenges, Lotte Group has launched a sweeping leadership overhaul, replacing 21 CEOs across its subsidiaries. On Nov. 28, the group held board meetings for 37 affiliates, including Lotte Holdings, to finalize its 2025 executive appointments. The shake-up underscores a focus on stringent personnel restructuring and organizational efficiency. The total number of executives has been reduced by 13% compared to the previous year, with 36% of CEOs—21 individuals—being replaced, marking a more extensive reshuffle than during the 2021 appointments amid the COVID-19 pandemic. Significantly, 12 of the newly appointed CEOs were born in the 1970s, reflecting a push for younger leadership within the conglomerate. Shin Yu-yeol, the eldest son of Chairman Shin Dong-bin and a third-generation member of the founding family, has been promoted to vice president, signaling his growing involvement in the group’s management.
Samsung revamps semiconductor leadership to boost competitiveness
Samsung Electronics has overhauled leadership in its semiconductor division, replacing the heads of its Memory and Foundry units to boost competitiveness. Vice Chairman Jun Young-hyun, who leads the Device Solutions (DS) division, will now directly oversee the Memory unit, which he previously led during a period of significant growth from 2014 to 2017. However, some analysts argue the move lacks the innovation needed to revitalize the struggling sector.
As part of its 2025 executive reshuffle announced on Nov. 27, Samsung also reassigned seven executives and promoted two to president. The Memory division has been placed under the CEO’s direct supervision, and the Foundry division head was replaced to facilitate “a fresh start.” While the company has assigned a veteran executive to explore new business opportunities, concerns remain about its reliance on past leadership amid growing challenges in the semiconductor industry, particularly with the rise of AI technologies.
Actor Jung Woo-sung’s personal life drama fuels widespread criticism
Actor Jung Woo-sung has become embroiled in controversy following revelations about a child born out of wedlock. On Nov. 22, model Moon Ga-bi revealed on social media that she had secretly given birth, sharing, “I’ve finally embraced motherhood with my family’s support.” Reports soon identified Jung as the father, which his agency, Artist Company, confirmed, stating, “The child Moon mentioned is Jung Woo-sung’s biological son. Discussions are ongoing regarding the child’s upbringing, and Jung is committed to his responsibilities as a father.”
The announcement sparked public criticism, particularly over reports that Jung supported Moon during her pregnancy but has no plans to marry her. A past remark by Jung—”It’s not that I didn’t marry; I couldn’t marry”—resurfaced, intensifying the backlash. The controversy deepened with allegations of a long-term relationship with a non-celebrity girlfriend. Photos of Jung with a woman believed to be the girlfriend, including a photo booth picture, fueled further accusations of infidelity and leading a double life.
NewJeans announces departure from ADOR over alleged trust issues
In a dramatic turn of events, NewJeans announced the termination of their exclusive contract with ADOR, citing breaches of trust and protection failures by the agency and its parent company, HYBE. The announcement was made during an emergency press conference held in Seoul’s Gangnam-gu at 8:30 p.m. on Nov. 28. Speaking on behalf of the group, Minji stated, “The exclusive contract with NewJeans will be terminated as of midnight, Nov. 29, due to ADOR and HYBE’s contract violations.” Despite the contract termination, the group reassured fans that their schedules would proceed without disruption. “Our planned activities, including advertisements, will continue as scheduled,” Minji said. “There’s no need for a lawsuit. The contract violations automatically render it void.” Addressing concerns about the group’s name, member Hyein added, “As of midnight, we’ll lose the rights to the name NewJeans. However, we won’t give up and will work to reclaim our identity.”
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