Korea's 10% GDP Paradox: Record Growth, Record Bankruptcies
I think Korea's economy is approaching 10% nominal growth. Corporate bankruptcies just hit an all-time Q1 record. Both statements are true. Both came from the same day — May 26, 2026. If you're trying to reconcile them, you're not alone. The Korean government's own economic agencies can't seem to agree on whether the country is experiencing a boom or a slow-motion credit crisis. My view — At a cabinet meeting on May 26, President Lee Jae-myung projected that Korea's nominal GDP growth rate could approach 10% this year. Deputy Prime Minister Koo Yun-cheol reinforced the message: "10% nominal growth will substantially increase GDP and tax revenues." Meanwhile, the data desk was printing numbers that told a starkly different story. In Q1 2026, 248 companies in national industrial complexes shut down or went out of business. Corporate bankruptcy filings reached 580 — the highest first-quarter total in Korean history. Individual rehabilitation and b...