Ministry of Economy and Finance

  On January 15th (Wednesday), Acting President and Deputy Prime Minister Choi Sang-mok, who also serves as the Minister of Economy and Finance, hosted a luncheon inviting ambassadors of the Group of Seven (G7) and the European Union (EU) to Korea. During the luncheon, he explained that under the acting president system, the Korean government continues to perform its duties in each area such as the economy and security without disruption. He also emphasized that the country’s economic system remains strong and stable, reaffirming the government’s commitment to maintaining its foreign policy principles and its cooperative relationships with major nations.   The luncheon was attended by eight diplomatic representatives from the G7 countries, including Ambassador of the EU to Korea Maria Castillo Fernandez; Ambassador of the United Kingdom to Korea Colin Crooks; Ambassador of Canada to Korea Tamara Mawhinney; Ambassador of France to Korea Philippe Bertoux; Ambassador of Japan to Korea Koichi Mizushima (listed in order of appointment); as well as the Chargé d’Affaires from the embassies of Germany, Italy, and the United States to Korea.   Acting President Choi expressed his gratitude for the condolences extended by each country to those affected by the recent Jeju Air plane crash and their families. Also, he appreciated the unwavering trust in Korea’s democracy and strong support for the bilateral relationship with Korea.   The ambassadors attending the luncheon conveyed their deep condolences for the Jeju Air plane crash, while noting that Korea’s recent political uncertainty proved the strength and resilience of its democracy. Furthermore, they reiterated their commitment to sustaining a steadfast and amicable cooperative relationship with Korea going forward.   Please refer to the attached files.

In December 2024, the employment rate for those aged 15 and above reached 61.4% (the second highest for December on record), down by 0.3%p compared to the previous year. The employment rate for those aged 15-64 stood at 69.4% (the highest for December on record), an increase of 0.2%p from the previous year. The labor force participation rate was 63.9% (the highest for December on record), up 0.1%p from the previous year, while the unemployment rate rose to 3.8%, an increase of 0.5 %p year-on-year.   * Employment Indicators for December (2023→2024, %):     Employment rate:  61.7 → 61.4                   Labor force participation rate:  63.8 → 63.9                                                                                               Unemployment rate: 3.3 → 3.8   The number of employed persons fell by 52,000 compared to the previous year. By industry, the service industry (350,000 → 177,000) and the agriculture, forestry and fisheries industry (-35,000 → 25,000) saw increases, while there were declines in the construction (-96,000 → -157,000) and manufacturing (-95,000 → -97,000) sectors. By age group, employment rate rose for those in their 30s (80.5%, +0.9%p) and 40s (79.3%, +0.3%p), but decreased for the youth (44.7%, -1.3%p), those in their 50s (77.2%, -0.2%p), and those aged 60 and above (45.9%, +0.4%p).   * Growth in the number of employed persons, 2024 (year-on-year, ten thousand): (Q1) +29.4  (Q2) +14.6  (Q3) +14.6 (Oct) +8.3  (Nov) +12.3  (Dec) -5.2   The employment indicators for December 2024 showed a temporary slowdown due to factors such as the weakening of consumer sentiment caused by political uncertainty and the end of year-end direct job programs. However, with the expansion (1.178 million in 2024 → 1.239 million in 2025) and resumption of direct job programs starting from January 2025, the temporary employment stagnation seen in December 2024 is expected to largely ease.   On an annual basis for 2024, the pace of employment growth was adjusted due to base effects, as employment during 2022-2023 significantly exceeded its long-term trend. As a result, the increase in the number of employed people was reduced to 159,000, compared to 327,000 in 2023. However, both the employment rate for those aged 15 and above (62.7%, +0.1%p) and the employment rate for those aged 15-64 (69.5%, +0.3%p) reached record highs.   In 2025, 120,000 jobs are expected to be created. While the increase in employment will be smaller compared to 2024 due to a larger decrease in the working-age population, the employment rate is expected to continue rising to 62.8%. However, amid the escalating domestic and external uncertainties, the base effect from the strong employment growth of over 300,000 in January-February of the previous year may limit the employment growth during the same period in 2025.   The government plans to strengthen efforts to create private-sector jobs for the prompt improvement of the employment situation, while also putting more detailed efforts into achieving employment stability for vulnerable groups. In the first half of the year, the government plans to actively support domestic recovery and job creation by swiftly executing more than 70% of livelihood- and economic- related projects, along with injecting around 18 trillion won to stimulate the economy. Not only that, the government will promptly implement direct job programs and closely review and improve employment support measures for vulnerable groups, including youth, through a pan-government task force. Please refer to the attached files.

Statistics Korea released report on the 'Economically active population survey' on January 15, 2025. The economically active population marked 29.156 million persons in December, which grew 119 thousand persons or 0.4% year-on-year. Please refer to the attached PDF.