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Lee Kyung-min

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Economy

Banks scramble to offload bad debt amid prolonged economic slowdown

Leading commercial lenders are rushing to sell off bad debt, prompted by heightened corporate distress and credit default concerns amid prolonged economic downturn, market watchers said Wednesday. The sharp uptick in the nonperforming loans (NPL) sell-off is a warning sign. A rise in debt service burdens for self-employed and small businesses means deteriorating financial soundness for banks. Many say Korea’s credit conditions will be tighter in the months to come, further exacerbating the downturn in business investment and household spending amid deeper growth challenges of the country. NPLs are loans that are 90 days past due on its principal or interest payments. The classification indicates that the borrower is in default and the lender considers it unlikely that the loan will be fully repaid without taking action, such as seizing collateral. According to financial market data, the country’s four leading banks — KB Kookmin, Shinhan, Hana and Woori — sold over 2 trillion won ($1.4 billion) in bad debt in the first half of this year, up 12.2 percent from a year earlier, in wha

Oct 15, 2025By Lee Kyung-min
Banks scramble to offload bad debt amid prolonged economic slowdown
Economy

Will bank shares soar as semiconductor-driven KOSPI rally takes breather?

Bank shares are emerging as a viable investment choice, buoyed by the benchmark KOSPI taking a breather from months of an artificial intelligence (AI) boom and a semiconductor-driven rally, market watchers said Monday. The underperforming shares, long dragged down by government moves to curb household lending, have ample room for higher valuations compared to chipmakers, which surged nearly 50 percent over the past month, they said. According to the Korea Exchange (KRX), the KOSPI surged 9 percent from Sept. 10 to Oct. 10, breaking records to surpass the 3,600 mark for the first time. However, the KRX Bank Index dipped 1.57 percent over the same period. The bank shares' underperformance is explained by the government’s aggressive moves to rein in household debt growth. Still, analysts remain optimistic. NH Investment & Securities raised its target price for KB Financial to 155,000 won ($108), citing robust fundamentals. Lending still exceeded expectations, aided by declining credit costs. This bodes well for the banks’ earnings in the third quarter, the brokerage said. Similarly, Hana S

Oct 14, 2025By Lee Kyung-min
Will bank shares soar as semiconductor-driven KOSPI rally takes breather?
Banking & Finance

IBK partners with Hungarian development bank to support small exporters

Industrial Bank of Korea (IBK) signed a memorandum of understanding with the Hungarian Development Bank (MFB) in Budapest, Hungary, Oct. 2 (local time), the Korean state-run lender said Monday. The agreement seeks to strengthen bilateral cooperation in supporting small and medium-sized enterprises (SMEs) from both countries, bolstering their entry into each other's market, as well as cooperation in financial research. The agreement comes amid growing challenges faced by SMEs in the context of rapid changes in global trade conditions. Hungary is a strategic gateway to the European market, positioning the SME-focused Hungarian development bank as a facilitator to strengthen lending, investment and guarantee programs and businesses. The two agreed to collaborate in establishing a joint fund to provide financial support for businesses operating in both countries, especially Korean startups seeking to expand their presence in European markets. They will also strengthen bilateral research and knowledge exchange on SME financing. The partnership is expected to enable IBK to enhance its capabiliti

Oct 13, 2025By Lee Kyung-min
IBK partners with Hungarian development bank to support small exporters
Economy

Older adult spending hits all-time high amid leisure activity growth

People aged 65 and older are driving consumption growth, especially in the 65-74 age group, which accounts for nearly 60 percent of older adult spending, government data showed Sunday. Previously, older adult spending was largely on health care. However, recent data showed that leisure, dining and cultural activities are emerging as key areas of expenditure for the age group, indicating a growing focus on quality of life rather than basic needs alone. More than 60 percent of older adult spending came from private expenditures, up 14.9 percent from the previous year. According to the Ministry of Data and Statistics, formerly Statistics Korea, total consumption by older adults reached 243.8 trillion won ($169 billion) in 2023, up 12 percent from 2022. The all-time high figure accounted for 16.7 percent of the national consumption total, also the largest to date. By comparison, spending among the working-age population in the 15-64 age group, constituting over 70 percent of total consumption, climbed just 6.3 percent. The 65-and-older age group is spending far more than they earn. In 2023, its

Oct 12, 2025By Lee Kyung-min
Older adult spending hits all-time high amid leisure activity growth
Economy

Q3 corporate earnings likely to sustain KOSPI rally

Korea’s benchmark KOSPI set an all-time high by breaking 3,600 points last week, propelled by surging demand amid the artificial intelligence (AI) boom. Many say the months of rally will be sustained by stronger-than-expected third-quarter corporate earnings reports, particularly from tech giants like Samsung Electronics and SK hynix. However, rising macroeconomic uncertainties and geopolitical risks pose headwinds. Chief among them is the escalating U.S.-China trade tensions, as indicated by U.S. President Donald Trump’s Oct. 10 plan to impose an additional 100 percent tariff on Chinese imports starting Nov. 1. The retaliatory measure against China’s rare earth export restrictions could raise the average tariff rate on Chinese goods entering the U.S. to 155 percent, reigniting global supply chain concerns. The Korean currency weakening to 1,420 won against the U.S. dollar is another unfavorable market development for foreign investors, since won-denominated Korean securities converted to U.S. currency would lead to weaker returns. According to financial market data, the KOSPI ende

Oct 12, 2025By Lee Kyung-min
Q3 corporate earnings likely to sustain KOSPI rally
Economy

KOSPI surpasses 3,500 points for 1st time amid foreign investors’ AI optimism

The benchmark KOSPI surged past the 3,500-point threshold for the first time in history, Thursday, gaining 93.38 points, or 2.7 percent, to close at 3,549.21 points — just a day before the start of the Chuseok holiday. The performance was underpinned by strong foreign capital inflows amid accelerating global artificial intelligence (AI) leadership from Korea’s two tech giants — Samsung Electronics and SK hynix. The main index opened strong at 3,525.48 points, up 2.02 percent from the previous day’s close, immediately eclipsing both the previous record closing high of 3,486.19 set on Sept. 23 and the intraday peak of 3,497.95 recorded on Sept. 24. The KOSPI surged further to an intraday high of 3,565.96 points and sustained the 3,500 level through the close. Propelling the rally were foreign investors, who net purchased a total of 3.13 trillion won ($2.24 billion). Meanwhile, individual investors took profits by net selling 3.06 trillion won. Institutional investors, despite national pension funds’ net purchases of 45 billion won, collectively showed a net selling bias of 69 bill

Oct 2, 2025By Lee Kyung-min
KOSPI surpasses 3,500 points for 1st time amid foreign investors’ AI optimism
Banking & Finance

Banks rush to roll out loans for foreigners

The country’s leading commercial lenders are launching loan products for foreign workers, a shift in retail banking that bolsters financial inclusion for the growing number of non-Koreans in the nation while overcoming rapid industry saturation, market watchers said Thursday. The number of legally employed foreign workers in Korea now exceeds 567,000 of the 2.56 million foreign residents of Korea, according to justice ministry data. Shinhan Bank, NH NongHyup Bank and Hana Bank each unveiled new credit loans tailored for foreign nationals employed in Korea, a group of underserved workers. Shinhan’s product, SOL Global Loan, targets foreign nationals holding E-9, E-7, F-2 and F-5 visas. Up to 20 million won ($14,280) will be loaned, if their visa expiration date is six months away or longer. Shinhan is currently operating foreign-focused branches in Gimhae, South Gyeongsang Province; Doksan, Seoul; and Ansan, Gyeonggi Province. NH NongHyup has a similar product that provides loans of up to 30 million won to foreign workers who have been employed for at least six months, as verified by th

Oct 2, 2025By Lee Kyung-min
Banks rush to roll out loans for foreigners
Economy

Foreign tourists seeking K-content experiences boost consumption

Vitalia Thompson, 25, from Jamaica said she liked dressing up in the Korean traditional dress known as hanbok and was excited to post pictures with her friends taken during a tour of Gyeongbok Palace in Gwanghwamun, Seoul. “I really wanted to come to Korea and try the dress. I like it. It’s very pretty. The pictures I took are going up on my social media accounts," she said. "These will be something I will look back on and feel happy about." She has long been a fan of BTS and BLACKPINK, two of Korea’s most popular K-pop groups. What captivated her even more was the song “Golden,” performed by artists Ejae, Audrey Nuna and Rei Ami as the fictional K-pop girl group Huntrix in the 2025 animated musical film “Kpop Demon Hunters.” After the song’s release in June, it has drawn popularity on social media as a singing challenge. “I listened to that song over and over, thinking ‘I have to go to Korea.’ I booked the flight right away in July. I decided to come to the Gyeongbok Palace first to try on the dress. I will go to traditional markets where I can have tteokbokki (spi

Oct 2, 2025By Lee Kyung-min
Foreign tourists seeking K-content experiences boost consumption
Banking & Finance

SGI to increase ROE to 10% by 2030 to bolster shareholder returns

Seoul Guarantee Insurance (SGI) aims to achieve a return on equity (ROE) ratio of 10 percent by 2030, as part of a comprehensive long-term strategy to enhance corporate value, increase shareholder returns and strengthen its core business competitiveness, the company said Wednesday. The guarantee service provider will also maintain a capital adequacy ratio or Korean Insurance Capital Standard (K-ICS) ratio of over 320 percent by 2030. The ratio is a measure of financial soundness for Korean insurance companies, calculated by dividing their available capital by the required capital to meet potential claims. A higher ratio indicates stronger financial health. The recommended minimum is 130 percent. SGI said the market-friendly shareholder return drive is expected to strengthen investor confidence in the firm, together with plans to boost profitability in its guarantee and credit insurance businesses, as well as enhance investor communications. The firm reiterated its commitment to returning a total of 200 billion won ($142 million) every year from this year through 2027 in the form of cash

Oct 1, 2025By Lee Kyung-min
SGI to increase ROE to 10% by 2030 to bolster shareholder returns
Economy

Highway rest stop food prices surge due to inflation

Kim Soo-jin, 41, a mother of two living in Seoul, said she is looking forward to visiting her parents in Busan for the Chuseok holiday next week, but is worried about the price of meals at highway rest stops. “My kids love stopping for deep-fried pork cutlets, or stir-fried potatoes and walnut cakes,” she said. “A family of four having lunch and likely dinner at the highway rest areas and a couple snacks can cost well over 150,000 won ($106). That is burdensome.” Food prices, along with the cost of everything else, has been going up for the past few years, she said. “I thought the food cost was very high last year, but this year I’m practically stunned. I recently had a stop at the highway rest area during a business trip and the pork cutlet cost over 12,000 won. It was frustrating because the portion size was small. A small cup of coffee or other beverages are at least 5,000 won. I think we might have to skip dessert.” Similarly, Park Jin-ho, 45, plans to drive from Suwon, Gyeonggi Province, to Haenam, South Jeolla Province, with his mother, wife and their teenage son. “I

Sep 30, 2025By Lee Kyung-min
Highway rest stop food prices surge due to inflation
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