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: March 16.

Ruling and opposition party leaders hold a bipartisan council at the National Assembly in Yeouido, Seoul, on Mar. 6 to discuss key issues, including the supplementary budget and pension reform. The meeting proceeded without government participation after the Democratic Party (DP) boycotted the planned tripartite talks. /Nam Kang-ho

South Korea’s political parties reach consensus on pension reform

South Korea’s rival political parties reached a consensus on pension reform on Mar. 14, with the main opposition Democratic Party (DP) accepting the ruling People Power Party (PPP)’s proposal to raise the nominal income replacement rate to 43%. This marks a shift from the DP’s earlier push for 44%, while the ruling party stood firm at 43%. The reform, the first major adjustment in 18 years, will also increase the pension contribution rate from 9% to 13%, potentially extending the National Pension Fund’s depletion date from 2055 to 2064. The DP’s acceptance was contingent on three conditions: a government guarantee of pension payments, expanded credits for childbirth and military service, and enhanced financial support for low-income earners—provisions the PPP claims were already part of the government’s plan. Both parties plan to advance the reform through the National Assembly’s Health and Welfare Committee next week, with hopes of passing it in a plenary session soon. However, political factors, including the Constitutional Court’s pending ruling on President Yoon Suk-yeol’s impeachment, could affect the bill’s timeline. While they have agreed on key parameters, the parties remain divided over structural reforms, particularly the introduction of an automatic adjustment mechanism, with the DP opposing it and the PPP advocating for it. Discussions on structural reforms are expected to continue within a special committee on pension reform.

South Korean conglomerates expand footprint in India amid global trade shifts

South Korea’s major conglomerates are expanding into India as uncertainties grow in key export markets like the U.S. and China. LG Group Chairman Koo Kwang-mo visited India in Feb., making it his first overseas business trip of the year, while top executives from Samsung, Hyundai, and Lotte have also made recent visits. India is emerging as a strategic alternative amid escalating U.S.-China trade tensions and potential policy shifts under Donald Trump, with its large workforce and investment-friendly environment attracting foreign capital. Hyundai Motor is positioning India as an export hub, following its record-breaking IPO in October, while LG Electronics plans to raise up to $1.5 billion through an Indian listing. CJ Logistics is also pursuing an IPO for its Indian subsidiary, CJ Darcl Logistics. South Korean firms are expanding into India’s steel sector, with POSCO partnering with JSW Group, and shipbuilders exploring government partnerships. The South Korean government is supporting firms entering the Global South to mitigate U.S. tariff impacts, while trade groups like KITA and KOTRA are strengthening bilateral ties through MOUs and trade delegations.

Homeplus short-term bond sales to retail investors top $137 m

The total value of short-term bonds sold to retail investors by Homeplus has surpassed 200 billion won ($137 million), raising concerns over potential financial risks. As of Mar. 3, the discount chain had an outstanding balance of 594.9 billion won ($445 million) in short-term bonds, including commercial paper and asset-backed securities. Of this, 207.5 billion won ($142 million) was sold to individual investors, while 332.7 billion won ($228 million) was purchased by corporations, mainly small and medium-sized enterprises. The large-scale sale of bonds to retail investors, rather than institutional buyers, has sparked fears of mis-selling, particularly if Homeplus was already preparing for corporate rehabilitation, drawing comparisons to past financial scandals involving Tongyang and LIG. Additional concerns are emerging over potential losses in REITs and real estate funds that hold Homeplus properties, as the company’s sale-and-leaseback strategy could leave investors vulnerable if it defaults on rent payments. In response, the Financial Supervisory Service is reviewing real estate funds tied to Homeplus to assess the extent of investor exposure.

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