The Korea Times

NPS to be game changer in Korean FX market in 2026: Morgan Stanley

HONG KONG — Korea’s National Pension Service (NPS) is poised to become the most influential factor in the country’s foreign exchange market this year, potentially acting as a “game changer” in boosting the won, according to Morgan Stanley. Two major policy shifts are expected from the state-run fund, focused on its foreign exchange hedging ratio and asset allocation strategy, said Kathleen Oh, the investment bank’s chief economist for Korea and Taiwan. The NPS has maintained a 0 percent hedging ratio, leaving its assets fully exposed to currency fluctuations. At the same time, its allocation to overseas investments has steadily increased. As of November 2025, overseas assets made up 59.6 percent of its total assets under management (AUM) of 1,438 trillion won ($997.4 billion). "We do think the changes could be announced earlier than May this year, which is the usual timing of the announcement of the allocation, and the adjustments to hedging strategy could be possible," Oh said in a recent interview with The Korea Times, adding that a clearer picture will emerge with the app

Feb 13, 2026By Lee Yeon-woo

NPS to be game changer in Korean FX market in 2026: Morgan Stanley

Cryptocurrency

Global players call for stronger crypto risk controls at Bithumb

HONG KONG — Global crypto players called on Bithumb to establish robust internal systems that match traditional finance standards on Tuesday, echoing domestic sentiment that the exchange’s “ghost bitcoin” incident was human error compounded by weak internal controls. Chandan Gupta, an Indian crypto analyst and trader, said the incident can’t simply be blamed on a single employee error. "In any mature financial system, a single action should never trigger direct payouts of such scale. There should be proper payout caps, multilayer approvals and security checks." Jimmy Xue, chief operating officer and co-founder of Axis, a quantitative yield protocol, said the incident exposed a “fundamental structural vulnerability" in Bithumb as it operated like unregulated fractional reserve banks, capable of creating phantom assets that exist only on internal ledgers. On Friday, Bithumb, Korea’s second-largest cryptocurrency exchange, mistakenly distributed 620,000 bitcoins instead of 620,000 won ($426) to 249 winners of its “random box” promotion, after an employee incorrectly enter

Feb 10, 2026By Lee Yeon-woo

Global players call for stronger crypto risk controls at Bithumb

Travel & Food

Will Shanghai remain favorite destination for Koreans in 2026?

HONG KONG — For Choi Yu-jin, a 31-year-old Seoul-based fashion designer, the perfect getaway requires three must-haves: value, spotless streetscapes and unforgettable flavors. And Shanghai, she says, delivers on all three counts. Three visits since 2024, with a fourth planned for April, are testament to a city that is increasingly capturing the imagination — and wallets — of Korean travelers, buoyed by visa-free access and a burgeoning reputation for its cosmopolitan feel. “Restaurants and streets were notably clean. And even upscale dining came at lower prices than in Korea, without compromising on taste,” Choi said. Her experience underscores Shanghai’s continued appeal as one of the most popular destinations for Korean tourists — a trend boosted by China’s 30-day visa-free entry policy that was introduced in November 2024. The number of Korean visitors to Shanghai rose from around 570,000 in 2023 to 1.1 million in 2024, before climbing in 2025 by a further 23.6 percent, year on year, according to data from the country’s aviation information portal. Short flight times

Feb 1, 2026By Lee Yeon-woo

Will Shanghai remain favorite destination for Koreans in 2026?

Cryptocurrency

Binance prepares institutional, payments push via GOPAX in Korea

HONG KONG — Binance is accelerating its expansion in Korea through local cryptocurrency exchange GOPAX, now under its control, as it prepares to support institutional adoption and build payment infrastructure in 2026. "Twenty-three percent of last year’s global growth came from institutional adoption," SB Seker, head of Asia-Pacific at Binance, told The Korea Times in a video interview Friday. "We think the same will happen if (regulatory) development takes up in Korea. The uptake will be similar, if not more." His comments came as Korean regulators gradually move to lift shadow restrictions on crypto integration in traditional finance. Authorities recently ended a nine-year ban on corporate crypto investments and are drafting the second phase of legislation — tentatively named the Digital Asset Basic Act — targeted for passage in 2026. In addition to its core services such as spot trading and digital asset products, Binance aims to establish infrastructure for institutional treasury management and cross-border stablecoin settlement. Seker expected Korean firms to start allocatin

Jan 30, 2026By Lee Yeon-woo

Binance prepares institutional, payments push via GOPAX in Korea

Economy

How Hong Kong can become gateway for Korean tech stocks

HONG KONG — Wang Yi, Chief Investment Officer at Hong Kong-based CSOP Asset Management, recalled that during past visits to Korea, his main goal was to promote Hang Seng Tech exchange-traded fund (ETF) products. Today, the dynamic has shifted. He now invites Korean partners to come to Hong Kong to explore collaboration opportunities. The reversal follows CSOP’s successful launch of the world’s first single-stock leveraged ETF on SK hynix, along with leveraged and inverse ETFs on Samsung Electronics, all introduced on the Hong Kong Stock Exchange in 2025. CSOP, founded in 2008, is one of the leading ETF issuers in Hong Kong, with the second-largest assets under management (AUM). It now controls an estimated 99 percent of Hong Kong’s single-stock leveraged and inverse ETF market, which targets short-term trading and hedging strategies. The SK hynix 2x leveraged ETF, launched in October, has approximately $8.8 billion Hong Kong dollars ($1.1 billion) in AUM, while the Samsung Electronics 2x leveraged ETFs, launched in May, hold around $1.9 billion Hong Kong dollars, according to CSO

Jan 28, 2026By Lee Yeon-woo

How Hong Kong can become gateway for Korean tech stocks

Economy

Weak won helped Korea's growth in 2025: HSBC

HONG KONG — Last year's currency depreciation has strengthened export competitiveness and contributed to growth, HSBC said Monday. "We do not believe that the weak won itself was a challenge for Korea’s economic performance — rather, it likely supported it over the past year," said Frederic Neumann, HSBC's Chief Asia Economist, during a virtual press conference for the HSBC Asian Outlook 2026 on Monday. Neumann explained that the won's weakness helped Korean exporters remain competitive, especially as global commodity prices — particularly oil — have stabilized, reducing inflationary pressure. Despite unfavorable conditions such as tariff frictions with the United States, Korea’s exports surpassed $700 billion for the first time in 2025. However, Neumann warned that concerns over a weak currency could prevent the Bank of Korea (BOK) from cutting interest rates, limiting the monetary easing needed to sustain growth. BOK has kept its key policy rate unchanged for five consecutive meetings, citing concerns over the weakening won. Some market watchers believe the easing cycle ha

Jan 19, 2026By Lee Yeon-woo

Weak won helped Korea's growth in 2025: HSBC

Business

Will beauty be next industry where China competes with Korea?

HONG KONG — Like many of her peers, Xie Roumei, a 28-year-old accountant from China’s Fujian province, started using Korean cosmetics in high school — a preference she carried into her 20s. Most of the eye makeup and beauty products she uses are still Korean, Xie said. Such loyalty has helped turn the country’s cosmetics industry into a global powerhouse, with exports rivaling those of semiconductors and cars. Fueled by the global appeal of K-pop, K-dramas and the “glass skin” ideal, the industry has logged record growth in recent years, making Korea the world’s second-largest cosmetics exporter behind France. But it may still be too early to pop the champagne. Recent data and analysis suggest that China is quietly expanding its own footprint in global markets, supported by strong domestic demand in the sector and a more aggressive push overseas. According to customs data, China’s cosmetics exports totaled $3.99 billion in the first 11 months of 2025, an 8.7 percent increase from a year earlier. That still trailed Korea, whose exports reached a record $10.3 billion over th

Jan 18, 2026By Lee Yeon-woo

Will beauty be next industry where China competes with Korea?

Economy

Why are Chinese tourists no longer spending big in duty free shops?

HONG KONG — Chinese tourist numbers are recovering across Asia after a COVID-19 pandemic-era contraction, buoyed by the expansion of visa-free policies and a stronger yuan. But one thing has not returned: the spending sprees that used to boost duty free retailers around the world. The trend can be clearly seen in Korea, which relied on Chinese travelers for 70 percent of its duty free sales before the pandemic. Around 5 million visitors from China arrived in the country during the first 11 months of 2025, a recovery to 92.3 percent of 2019 levels. But duty free sales not only failed to rebound; instead they actually fell to levels last seen in 2015. Sales at Korea’s duty free shops declined 12 percent year on year to $80.6 billion between January and November last year, according to the Korea Duty Free Shops Association. In a sign of the times, two of the country’s duty free retail giants — Shilla Duty Free and Shinsegae Duty Free — gave up parts of their concessions at Incheon International Airport in September and October, citing sluggish sales and soaring rental fees. The l

Jan 14, 2026By Lee Yeon-woo

Why are Chinese tourists no longer spending big in duty free shops?

Cryptocurrency

Why 2026 could mark crypto's next expansion phase in Korea

Cryptocurrency entered 2025 with a euphoric rally. Clearer regulatory signals from major economies and a more accommodative policy backdrop helped propel Bitcoin to a record $126,000. Institutional capital flowed steadily into the market, with some companies adding digital assets to their balance sheets under strategic allocations. Sentiment reversed sharply toward year-end. Concerns over U.S. trade policy sparked capital outflows, while expected Federal Reserve rate cuts were slower to materialize than markets had anticipated. The selloff intensified after October, when a renewed U.S. tariff pledge on China triggered about $19 billion in forced liquidations. "Sixteen years after the genesis block, crypto's secular growth continues, sometimes painfully and occasionally awkwardly — but growing all the same," Presto Research wrote in its Dec. 18 report. "Welcome to crypto's teenage phase." 2025 proved to be a mixed year, but market watchers largely agree on one point: the industry is moving steadily toward a more polished, mainstream future. "When I look back on 2025, what stands out is

Dec 25, 2025By Lee Yeon-woo

Why 2026 could mark crypto's next expansion phase in Korea

Economy

BLACKPINK in, Ayumi out? Why China may reward Korea's soft stance amid Japan tensions

HONG KONG — In a bid to overhaul their economic relationship, China and Korea are reviving long-stalled trade talks, with an eye on moving beyond factory floors to target the lucrative services sector as geopolitical shifts redraw the region’s alliances. The thaw follows a Dec. 12 agreement between Trade, Industry and Resources Minister Kim Jung-kwan and Chinese Minister of Commerce Wang Wentao to accelerate negotiations on the second phase of their free trade agreement (FTA). The push aims to expand cooperation in services, investment and finance after years of stagnation. The initiative follows Chinese President Xi Jinping’s state visit to Korea in late October, his first trip to the country in 11 years. “The current Lee Jae Myung administration is pursuing pragmatic diplomacy, which has become a turning point for improving relations and strengthening cooperation,” said Lee Chi-hun, general director at the Korea Centre for International Finance. “What was difficult to achieve through a bottom-up approach may now be possible through a top-down process.” The two nations sig

Dec 22, 2025By Lee Yeon-woo

Lee Yeon-woo

Read more

NPS to be game changer in Korean FX market in 2026: Morgan Stanley

Global players call for stronger crypto risk controls at Bithumb

Will Shanghai remain favorite destination for Koreans in 2026?

Binance prepares institutional, payments push via GOPAX in Korea

How Hong Kong can become gateway for Korean tech stocks

Weak won helped Korea's growth in 2025: HSBC

Will beauty be next industry where China competes with Korea?

Why are Chinese tourists no longer spending big in duty free shops?

Why 2026 could mark crypto's next expansion phase in Korea

BLACKPINK in, Ayumi out? Why China may reward Korea's soft stance amid Japan tensions

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