Fewer young Koreans are seeking driver's licenses
'I was planning to get my driver's license after graduating from high school, but even if I got it right away, I can't afford to buy a car,' said university student Lee Jun-mo, 23.
'Using public transportation or options like shared bikes feels much more realistic for someone like me.'
Lee's view is increasingly common among young South Koreans.
Far fewer people in their teens and 20s are obtaining driver's licenses than just a few years ago, according to data released Wednesday by the Korean National Police Agency.
The number of teenagers who earned a license in 2023 was down 20 percent from 2020. Among people in their 20s, the drop was even sharper, with a 30 percent decline over the same period.
And this isn't a pandemic effect. New license issuances are down 13.5 percent from 2019, too.
As demand has decreased, so has supply.
The number of driving schools across the country fell to 342 in the first quarter of this year, down from 367 in early 2020.
The decline reflects a shift in perception, according to the police agency.
Many young people now see a license as both expensive and unnecessary, especially with the growing availability of discounted public transportation programs like the Climate Transit Card and the K-Pass.
In Seoul, the average cost of attending driving school for a Class 2 automatic license reached 900,000 won ($650), in the first quarter of this year. That figure marks a 29 percent increase from five years ago, when the average cost was 700,000 won.
Financial pressures on young adults are also evident in car ownership trends. According to a recent report by the Korea Automobile and Mobility Association, new car purchases among people in their 20s fell by 12 percent last year compared with the previous year. It was the steepest decline among all age groups.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
34 minutes ago
- Korea Herald
Money, political future of Lee Jun-seok hangs on 10% vote
Results will have substantial impact on candidate's political career, and crucial to getting reimbursed for campaign spending Lee Jun-seok, the candidate for the minor New Reform Party, went into polling day expecting to finish a distant third. But regardless of his low chances of winning, how many votes the 40-year-old politicians garners will likely affect the remainder of his career. Getting at least 10 percent of the vote on Tuesday will be considered a significant feat for Lee, who leads a minor party with just three members of the National Assembly. South Korean political landscape since the 1990s has been dominated by two major parties fighting for control, and no member of a minor party has ever won the presidency. Lee's approval ratings were around the 9-10 percent range in the last polls conducted before the blackout period, and him getting a significant amount of votes will solidify his status as a prominent figure in the pan-conservative bloc. While his party is considered centrist in the parliament, Lee is considered right-wing, as he had previously been a leader of the conservative People Power Party. During his election campaign on Monday in Daegu, the stronghold of the conservative bloc, he urged voters to invest in him with "the seed money for the new conservatives." Identifying him as a fellow conservative, the People Power Party had called for Lee to unify his campaign with its own candidate Kim Moon-soo, with the party's floor leader urging Lee to make the decision even before the election day. But Lee maintained that he would complete the race. Money issues For Lee, the number of votes he secures holds significant financial implications. His party has just over 120,000 members. In addition to party fees, the National Election Commission allocates separate funding. It allotted 26.53 billion won ($19.5 million) to the largest Democratic Party of Korea in election subsidies, 24.28 billion won to the PPP, and just 1.56 billion won to Lee's party. Last week, the party said that it spent 4 billion won for the election. The New Reform Party is entitled to other state subsidies, including the NEC's quarterly subsidies, that work out at around 350 million won, but the financial burden of the presidential race would likely be taxing to the party. The Public Officials Election Act states that the full expenditure for a presidential campaign shall be reimbursed by the state if the candidate receives at least 15 percent of the vote. Those who get 10 percent of the vote will receive half the amount he or she spent, payment for which is slated for Aug. 12. Last year, Lee proposed a bill that would lower the threshold for reimbursement, offering candidates who receive more than 5 percent of the vote half of their campaign expenses, and 70 percent reimbursement for those who secure at least 7 percent. How will Lee's graphic language in TV debate affect the voting? During the final presidential TV debate last Tuesday, Lee sparked a nationwide controversy by repeating sexually violent language thought to have been used by Democratic Party candidate Lee Jae-myung's son in the past. The gaffe occurred after the opinion polls on each candidate have been conducted, and it is unclear if and how much the dispute affected the New Reform Party's candidate's campaign. Lee made the comment to criticize the Democratic Party's Lee for his son's inappropriate language, but many expressed shock and concern over the language being used on TV. Multiple lawsuits were filed against him by the Democratic Party and civic groups, and liberal lawmakers submitted a proposal to the National Assembly asking for disciplinary action against him. Will Lee be blamed for conservative bloc's loss? Despite the People Power Party's continued calls for Lee to support Kim, he has spoken against the PPP candidate in his campaign, although not nearly as much as he has attacked the Democratic Party candidate. On Monday, he reiterated his stance that he will not join Kim and said voting for Kim will result in absolving ex-President Yoon Suk Yeol and his followers. The disgraced former leader of Korea, who was impeached after imposing martial law in December of last year, belonged to Kim's party until last month. With Lee taking a substantial slice of the conservative vote, there is a possibility that he may be subject to criticism if Kim ends up losing to Lee in relatively close race. The final polls announced last week suggested that the DP candidate would still be a favorite even against their unified front, but with a much-closer margin. A Hankook research survey showed approval ratings of 44 percent for Lee Jae-myung and 41 percent for Kim, if the New Reform Party candidate dropped out to back Kim. Other polls, such as Gallup Korea, showed that DP's Lee would still hold a 53 percent to 43 percent lead against a unified conservative campaign.
Korea Herald
2 hours ago
- Korea Herald
Postelection momentum: Will new leadership lift Kospi past 2,800?
With policy clarity in sight, investors turn bullish — Kospi seen testing 3,000 After months of political limbo, South Korean capital markets are brimming with anticipation as Tuesday's presidential election ushers in new leadership and an end to a prolonged policy vacuum. While candidates differ in the specifics of their market-boosting pledges, they share common ground on one urgent issue: the need to resolve the persistent 'Korea discount' that has long weighed on valuations. Market watchers expect this shared resolve — alongside broader investor optimism — to fuel a postelection rebound, regardless of who takes office. Investor sentiment points to a gradual Kospi recovery, with the index likely to test 2,800 in the second half — a level not seen since July 2024. 'Expectations for economic stimulus are likely to strengthen after the election, and a shift from policy vacuum to active support could drive a stronger won and foreign buying,' said Daishin Securities analyst Lee Kyoung-min. However, Lee flagged a potential short-term pullback as the market digests preelection gains. The Kospi broke above 2,700 last week for the first time in nine months on hopes for political clarity. While forecasting a near-term trading band of 2,550 to 2,800, Lee reaffirmed his year-end target of 3,000 points, expressing confidence that improved fundamentals under the new administration could ultimately push the market to that level. Other brokerages have also raised their targets, with wider bands reflecting increased volatility. Korea Investment & Securities projects a 2,400–2,900 range, expecting third-quarter consolidation followed by a gradual fourth-quarter uptrend. NH Investment & Securities sees 2,350–3,000, while Shinhan Securities targets 2,550–2,780. Historical precedent supports the optimism. Eugene Investment's Huh Jae-hwan, analyzing nine presidential elections since 1981, found the Kospi gained after six. Huh noted that, on average, the index rose 3 to 4 percent in the first month and 14 to 16 percent over the year, typically driven more by easing political uncertainty than specific policy pledges. Analysts emphasized that the Kospi's sustained growth will hinge on foreign investor flows, particularly if the won continues to strengthen. 'A move above 2,600 will need renewed foreign inflows to maintain momentum,' said Noh Dong-kil of Shinhan Securities, calling foreign investment the key driver of a second-half rally. Foreign investors had been net sellers for nine straight months since August, offloading 15.4 trillion won ($11.2 billion). That sell-off dragged the Kospi from a near-2,900 peak last July to as low as 2,300. Sentiment rebounded in May as easing US tariff fears and signs of political clarity prompted foreign investors to buy 1.2 trillion won over the month, followed by an additional 240 billion won purchase Monday. The key driver, analysts say, is currency. 'Foreign inflows are closely tied to dollar moves,' said Kim Soo-yeon of Hanwha Investment & Securities, noting that foreigners typically turned to net buyers about a month before the won strengthened. After spending much of the year weaker than 2024 levels, and briefly approaching 1,500 won per dollar, the currency slipped to 1,369 won on May 26, its first dip below last year's mark. It has since stabilized in the high-1,300 range. Daishin's Lee expects further gains. 'Anticipation of stimulus and industrial policies should lift demand confidence and add upward pressure on the won,' he said, projecting the won to enter the low 1,300s against the greenback by the third quarter. Pro-market campaign pledges Still, much will depend on how swiftly the new administration delivers, with foreign inflows likely to stay cautious until it fills the policy vacuum left since December. Liberal candidate Lee Jae-myung of the Democratic Party of Korea has pledged to usher in a 'Kospi 5,000 era' by strengthening minority shareholder protections. He calls for overhauling the Commercial Act to improve corporate governance, proposing codified fiduciary duties, expanded cumulative voting and safeguards against spinoff listings. To bolster market integrity, Lee proposed to permanently ban those convicted of stock manipulation, along with stronger real-time surveillance and stricter clawback rules on short-swing profits. He also reaffirmed Korea's push for inclusion in Morgan Stanley Capital International's developed markets index. Conservative rival Kim Moon-soo of the People Power Party has largely echoed the previous administration's market-friendly stance, proposing dividend tax cuts and incentives for long-term investment. He called for stronger investor outreach through presidential road shows abroad and a financial policy council comprising regulators and private-sector experts. Kim supports limited governance reform through the Capital Markets Act, not the broader Commercial Act. His proposals target listed firms only, aiming to boost shareholder protection and board expertise, while easing inheritance tax burdens during business succession. Like Lee, he also backs tougher penalties for stock crimes, including life sentences and punitive damages. In the cryptocurrency space, the two candidates struck rare common ground. Both backed the launch of spot crypto exchange-traded funds — a key industry demand — while supporting the establishment of a regulatory framework for emerging digital assets such as stablecoins and security token offerings. Separately, Lee emphasized structural reform, including centralized oversight and lower transaction fees, while Kim leaned toward deregulation, backing institutional trading and the removal of the one-bank-per-exchange rule. Global headwinds may cloud optimism Risks remain, as uncertainty over global trade and Korea's weak growth outlook could temper capital markets' recovery. Korea's export-reliant economy remains exposed to US tariff hikes, with a bilateral deal expected in early July. Until then, outbound shipment prospects remain murky, adding pressure to an economy forecast to grow less than 1 percent this year. 'Trump is likely to continue tariff threats, currency talk and trade renegotiations while pushing tax cuts and deregulation,' said Na Jeong-hwan of NH Investment & Securities. Markets may grow numb to tariff headlines, he added, but US political risks could intensify into September. Still, with local markets significantly undervalued, Korea's domestic outlook offers room for optimism. 'As long as local markets follow US trends, expectations for fiscal and monetary stimulus under new leadership, coupled with structural reforms, should help lift the Kospi,' Na said.
Korea Herald
a day ago
- Korea Herald
Controversy grows over Jim Rogers' ‘endorsement' of Lee Jae-myung
Investor tells The Korea Herald he does not support or endorse anyone Rival parties on Monday bickered over the authenticity of the Democratic Party of Korea's claims of veteran US investor Jim Rogers' letter of "endorsement" of its presidential candidate Lee Jae-myung. The controversy snowballed Monday after Rogers denied his endorsement of Lee in several interviews with local media from late Sunday. In an email inquiry from The Korea Herald, Rogers replied, "I do not support or endorse or anything any candidate there," when asked whether he supports or has endorsed Lee. The Democratic Party refuted the investor's remarks in a joint statement released to the press by Kim Jin-hyang, the former head of the Kaesong Industrial Complex, and Song Kyung-ho, a professor at Pyongyang University of Science and Technology, who is based in London. The two were closely involved in the process of receiving the letter from Rogers and announcing it to the public. Song explained in the statement that Rogers did express his 'support' for Lee, which was interpreted as his endorsement of the candidate, which he said he regretted. Kim said Rogers' 'support of candidate Lee Jae-myung' was real, while admitting that there were 'some mistakes' made in the communication between Song and the US investor. The two also included screen captures of the conversation between Rogers and Song regarding Rogers' 'support' of Lee on the messenger app WeChat from May 26 to May 29. The screen-captured images showed that Rogers replied 'Thanks! This is fine' to a document titled 'A Message from Jim Rogers: Peace and Opportunity on the Korean Peninsula' drafted by Song. Song has asked for confirmation on whether he could release the document under Rogers' name, according to the images. However, the version shared on WeChat showed a toned-down version of the document later released to the public by the Democratic Party. The version drafted by Song and confirmed by Rogers said "That is why I recognize the pragmatic approach of Lee Jae-myung, a leader who is focused not on ideology or political distractions." The version of the document released by the Democratic Party shows Rogers saying, "That is why I strongly support Lee Jae Myung," instead of "I recognize the pragmatic approach." Rogers then says "Let us invest in peace. Let us invest in the future. Let us invest in Korea. So now. ... The choice is Lee Jae-myung." He calls Lee "a leader with the courage and vision to end the era of confrontation and open a new chapter of peace, growth, and global leadership for Korea." The People Power Party denounced the Democratic Party's claims as 'an international fraud' and called for Lee to drop out of the presidential race. People Power Party Interim Chair Kim Yong-tae said during the party's election committee meeting held Monday morning that the Democratic Party's claims are 'incorrect stories spread by a person who met (Rogers) briefly a few years ago.' On Thursday, several members of the Democratic Party's central election committee announced in a press conference that Rogers decided to 'endorse' Lee. The 8-minute press conference was entirely dedicated to Rogers. mkjung@
