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Lee Kyung-min

Korea Times AI content 2 team Reporter

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Economy

Tightening lending rules to hit young, low-income borrowers hardest

Bank of Korea Governor Lee Ju-yeol speaks during an audit of the central bank at the National Assembly, Oct. 15. YonhapPressure furthered from Bank of Korea's probable November rate hike By Lee Kyung-min Borrowers in need of loans for “jeonse,” or Korean-style deposit lease payments, remain highly concerned, despite a recent government announcement that mortgage loan seekers will not be subject to tightening lending rules implemented to curb snowballing household debt over the course of the COVID-19 pandemic. Unique to Korea, jeonse is a home-renting system whereby tenants pay a refundable lump sum deposit instead of a monthly rent. Young, low-income borrowers who took out cheap loans enabled by the pandemic-induced expansionary monetary policies will be squeezed by rising interest payments, as inferred by Bank of Korea Governor Lee Ju-yeol who expressed little concern about a key rate hike wreaking havoc on the economy. “Our economic forecast showed that borrowers would experience limited difficulty even when we raise the key rate in November,” Lee said durin

Oct 17, 2021By Lee Kyung-min
Tightening lending rules to hit young, low-income borrowers hardest
Banking & Finance

Strategic alliance

Avatars of officials of Shinhan Bank, Shinhan Capital and software developer Galaxy Corp. pose for a photo on the metaverse, a virtual platform, after signing a memorandum of understanding on a strategic business alliance to enhance their brand value among the younger generations, Oct. 14. Courtesy of Shinhan Bank

Oct 17, 2021By Lee Kyung-min
Strategic alliance
Economy

Reporter's notebook National Tax Service is complicit in suicide of sexual assault victim

National Tax Service (NTS) Commissioner Kim Dae-ji speaks during a parliamentary audit of the tax agency at the National Assembly in Yeouido, Seoul, Oct. 8. YonhapBy Lee Kyung-min What makes sexual assault victims commit suicide?I can't even imagine how unbearable and pointless they found life to be before concluding that giving up altogether is the only answer. But I'm becoming more and more convinced that the suicide of a tax official a few months ago was not due to a sudden impulse or desperation from the incident itself, but because of a sense of injustice that continued along the way. According to files submitted by the National Tax Service (NTS) to Rep. Yong Hye-in of the minor opposition Basic Income Party as part of an audit of the tax agency, the victim who worked at the Incheon tax office committed suicide in May, about four years after she was sexually assaulted by her superior in a karaoke bar during an after-work get-together on Sept. 27, 2017. She had since been treated for depression. The files included criminal complaints, court rulings and the tax agency's

Oct 14, 2021By Lee Kyung-min
Economy

Eximbank loses W35.6 bil. in overseas investments

Export-Import Bank of Korea (Eximbank) CEO Bang Moon-kyu speaks during a National Assembly audit of the state lender, Wednesday. YonhapCEO Bang vows to strengthen risk managementBy Lee Kyung-min The Export-Import Bank of Korea (Eximbank) has lost almost the entire investment of 35.6 billion won ($29.8 million) made with two local private equity funds (PEFs) during the 2008-13 Lee Myung-bak administration, a ruling party lawmaker said Wednesday.Rep. Park Hong-keun of the Democratic Party of Korea (DPK) said data provided by Eximbank for the audit of the state lender by the National Assembly Strategy and Finance Committee showed two private equity funds ― Troika and Global Dynasty, set up in 2009 and 2010, respectively, as part of an energy diplomacy drive led by Lee ― reported net losses of 98.9 percent and 100 percent, respectively. The government under the Lee administration revised a relevant law governing Eximbank and Lee made a presidential decree in 2009 for the state lender to invest in overseas resource development funds. An investment of 33.4 billion won was made with the Tro

Oct 13, 2021By Lee Kyung-min
Eximbank loses W35.6 bil. in overseas investments
Economy

Korea's unregulated crypto-mediated FX transfers hit record-high

Korea Customs Service Commissioner Lim Jae-hyeon speaks during a parliamentary audit of Korea Customs Service at the National Assembly, Tuesday. YonhapBy Lee Kyung-min Korea registered over 812.2 billion won ($676.9 million) in questionable foreign currency transfers involving cryptocurrencies in the first eight months of the year, a ruling party lawmaker said Tuesday. Such foreign currency transfers are subject to scrutiny under the Anti-Money Laundering Act. The authorities expect they have been used for tax evasion, overseas gambling and drug smuggling. Rep. Song Jae-ho of the Democratic Party of Korea (DPK) said data submitted from the Korea Customs Service (KCS) for the National Assembly Finance Committee's audit of the customs agency showed a record high, 21-fold year-on-year increase in cryptocurrency-related transfers that accounted for about 68 percent of 1.19 trillion won in suspicious foreign currency transfers as of August. Individuals involved in 13 cases of falsifying foreign currency remittance reports or failure to submit them were fined a combined 885.6 billion won.

Oct 12, 2021By Lee Kyung-min
Korea's unregulated crypto-mediated FX transfers hit record-high
Economy

Contribution Korea's challenges and tailwinds

Dave Chia, economist at Moody's Analytics / Courtesy of Moody's AnalyticsBy Dave ChiaKorea is one of the better performing economies in the Asia-Pacific region this year. Exports will be the best remedy for the pandemic-scarred economy, while hefty household debt coupled with a heated real estate market will be key challenges.Like other economies, Korea has battled with a series of stop-start social distancing measures to combat repeated waves of COVID-19. Nevertheless, it was one of the few where output surpassed pre-pandemic levels in the March quarter of 2021. Second-quarter GDP growth lost some steam, and the third quarter will likely remain soft. We forecast GDP growth to notch 4.2 percent in 2021 and 3.3 percent in 2022. This is slightly more optimistic than the Bank of Korea's respective 4 percent and 3 percent forecasts for those years. The Korean economy has a few troubles. Number one is rising household debt. This stands at 104 percent of GDP, according to the Institute of International Finance (IIF). Over the past decade, surging property prices and credit card spending ha

Oct 12, 2021By Lee Kyung-min
[Contribution] Korea's challenges and tailwinds
Economy

National Tax Service unprepared to collect tax on crypto gains: lawmaker

National Tax Service (NTS) Commissioner Kim Dae-ji speaks during a parliamentary audit of the tax agency at the National Assembly on Yeouido, Seoul, Friday. YonhapBy Lee Kyung-minAn opposition lawmaker criticized the National Tax Service (NTS) for its lack of an administrative infrastructure to collect tax on gains from cryptocurrency trading, during a National Assembly Economy and Finance Committee audit of the tax agency Friday. Rep. Yoo Gyeong-joon of the main opposition People Power Party questioned the feasibility of the government's plan to impose a 25 percent tax on gains of over 2.5 million won ($2,091) in crypto transactions over a one-year period set to take effect in January next year.Yoo asked NTS Commissioner Kim Dae-ji for his view on non-fungible tokens (NFTs) that are widely recognized as digital assets around the world, to which Kim failed to give a clear answer.“How can you say the authorities will be able to collect tax on crypto gains when the finance ministry and Financial Services Commission have yet to reach an agreement over whether NFTs are virtual asse

Oct 8, 2021By Lee Kyung-min
National Tax Service unprepared to collect tax on crypto gains: lawmaker
Economy

Toss to acquire 60-percent stake in ride-hailing service provider Tada

Toss founder and Viva Republica CEO Lee Seung-gun By Lee Kyung-minToss, Korea's internet-only bank operated by Viva Republica, will acquire Tada, a mobility startup operated by VCNC. The move will reshape the competitive landscape of the 6 trillion-won ($5 billion) ride-hailing service market, which is dominated by Kakao Mobility with a market share of 80 percent. Other than the mobility subsidiary of internet giant Kakao Corp., Toss, which has 20 million users of its internet banking services, will face fierce competition with T Map Mobility. T Map, which separated from SK Telecom last year to merge with Uber, is the leader in the smartphone navigation market, with a 75-percent market share. The ultimate goal for Toss is deeper integration between its financial and mobility services, as shown in its expansion of its businesses from money transfer to payments, insurance and banking. Toss said Friday that Viva Republica will acquire a 60-percent stake in VCNC, whic

Oct 8, 2021By Lee Kyung-min
Toss to acquire 60-percent stake in ride-hailing service provider Tada
Economy

Korea issues $1.3 bil in forex bonds at record-low spread

Ministry of Economy and Finance International Finance Bureau Director General Kim Seong-wook speaks during a briefing at Sejong Government Complex, Thursday. Courtesy of Ministry of Economy and FinanceSeoul-Washington currency swap needs to be extendedBy Lee Kyung-minKorea has issued $1.3 billion (1.5 trillion won) in dual-tranche dollar- and euro-denominated bonds at a record-low spread, lifted by a high assessment of the Korean economy by overseas investors, the finance ministry said Thursday. The dollar bond sale was four times greater than the initial purchase order, while the euro bond sale was six times greater. Among the buyers were central banks and sovereign wealth funds from the U.S., Europe, the Middle East, Asia and Africa.The spread between $500 million worth of 10-year dollar-denominated bonds with a yield of 1.769 percent and U.S. Treasuries with the same maturity was 25 basis points.The spread between 700 million euros worth of five-year euro-denominated bonds with a negative yield of 0.053 percent and benchmark euro mid-swap was 13 basis points.The record-low spread

Oct 7, 2021By Lee Kyung-min
Korea issues $1.3 bil in forex bonds at record-low spread
Economy

Finance minister unflinching about taxing crypto gains

Deputy Prime Minister and Finance Minister Hong Nam-ki attends a parliamentary audit of the Ministry of Economy and Finance at the National Assembly in Yeouido, Seoul, Wednesday. YonhapFSC chair pledges tighter scrutiny for Upbit operator's monopoly By Lee Kyung-min Deputy Prime Minister and Finance Minister Hong Nam-ki said that taxation on gains from cryptocurrency trading will take effect next year as planned, in a clear show of distance from mounting calls from both ruling and opposition party lawmakers to delay the enforcement ahead of next year's presidential election.The finance ministry initially planned to impose a 20 percent tax starting Oct. 1 on gains of over 2.5 million won ($2,125) made in a one-year period, but it was delayed for three months due to a lack of taxation infrastructure.“Any further delay in the already postponed enforcement will lead to the loss of public trust in government policy and undermine stability in the legal system,” he said during a parliamentary audit of the Ministry of Economy and Finance at the National Assembly on Yeouido,

Oct 6, 2021By Lee Kyung-min
Finance minister unflinching about taxing crypto gains
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