00:06A KDI researcher says Korea's growth could turn negative from around 2030 if the long-term trend holds.
00:13Consumers have more than 11 trillion won prepaid to funeral service companies
00:18and 566.2 billion won is stuck in 22 firms that closed.
00:2554.7% of sole apartment deals in the third quarter were at or above the previous peak.
00:33And the Nobel Economics Prize went to two economists whose work underpins how central banks set rates.
00:40It's Tuesday, October 13th.
00:42Let's talk about a trend affecting young professionals in Korea.
00:46Researchers are warning that Korea's growth depends heavily on chips while the rest of the economy stalls.
00:51Meanwhile, a fast-growing prepayment market is running ahead of the rules meant to protect the people who pay into
00:57it.
00:58And housing and policy news is shaping the costs and conditions young workers face.
01:04Here's what the numbers show.
01:06KDI estimates Korea's long-term growth rate has fallen about one percentage point every five years since the early 1990s,
01:13which could take it into the 0% range this year and below zero from around 2030.
01:20Pre-payments to funeral and prepaid service companies exceeded 11 trillion won in March,
01:27while 22 companies that closed or lost registration in five years held 566.17 billion won in prepayments,
01:37and four of them did not meet the legal 50% preservation requirement.
01:42Subscribers to prepaid travel products rose 3.9 times,
01:46from 60,000 in 2023 to 236,000 in March 2026,
01:54with related prepayments growing from 9.4 billion won to 111.8 billion won,
02:01of 10,930 sole apartment deals in the third quarter.
02:075,977 or 54.7% comma were at or above the previous peak for the same complex and size,
02:19up from 38.2% in the first quarter.
02:21The government will create a 3 trillion won overseas construction fund
02:26and invest 1.406 trillion won in shipbuilding AI automation at three hubs.
02:34Robert Hall and Michael Woodford won this year's Nobel Economics Prize
02:38for work explaining household consumption and corporate price setting,
02:43which underpins central bank policy models.
02:46So, what does this mean for young professionals navigating their next move?
02:51Earlier, we said 566.2 billion won of prepayments is stuck in 22 closed firms.
02:59Here's what that actually means for you.
03:01Companies must preserve at least half of prepayments,
03:05but four of the 22 failed even that,
03:08and compensation claims can expire if consumers don't file in time.
03:13If you've signed up for a prepaid funeral or travel plan,
03:16check how your payments are protected and keep your records,
03:20since the Fair Trade Commission has not separately checked prepaid travel product compliance.
03:25What to watch?
03:26Whether the Fair Trade Commission adds checks on prepaid travel products
03:30and stronger penalties as lawmakers urged,
03:34whether Korea acts on KDI's call for education and industrial policy changes
03:39to lift productivity and whether the 1.406 trillion won shipbuilding AI hubs
03:47at Mokpo Yongam, Gyoche Busan and Gunsan show first results.
03:52That's today's AI Prism, Early Careers.
03:56This episode was produced with AI Assistants,
03:59based on Seoul Economic Daily Reporting,
04:01and reviewed by a human editor.
04:03AI Prism is a one IFRA award-winning series.
04:07We'll be back tomorrow.
04:08You've been listening to AI Prism from Seoul Economic Daily.
