Economy - The Korea Times

Won-dollar rate back on roller coaster as 1,400-won mark looms

The Korean won has come under renewed pressure, reversing much of its recent gains against the U.S. dollar as tighter U.S. monetary policy, higher oil prices and reduced dollar supply in the local foreign exchange market weigh on the currency, analysts said Tuesday. The won-dollar exchange rate rose nearly 50 won over seven consecutive trading sessions through Friday from its Sept. 9 level, bringing the 1,400-won mark back into focus. The exchange rate has fluctuated sharply in recent weeks. It stood at 1,411.8 won per dollar on Aug. 18 and slid to a 23-month low of 1,336.1 won on Sept. 9 as dollar selling by major semiconductor exporters increased foreign currency supply. That trend quickly reversed the following day, with the rate rising for seven straight sessions through Friday, up 47.2 won from its Sept. 9 close. The won recovered some ground Tuesday, with the rate retreating to close onshore trading at 1,358.2 won per dollar. The U.S. Federal Reserve’s rate hike has been a key factor behind the recent rise in the exchange rate. The Fed raised its benchmark rate by 25 basis points a

Sep 22, 2026By Jun Ji-hye

Won-dollar rate back on roller coaster as 1,400-won mark looms

COVER STORY Middle-aged Koreans largely look to national pension for post-retirement safety net

More than six out of 10 middle-aged Koreans identified the national pension as their primary safety net for life after retirement, according to figures released by the Ministry of Data and Statistics, Monday. The figure rose to 61 percent from 51.7 percent a decade ago, showing that people in the age group are becoming more dependent on the state-run pension program rather than private pensions or other means of post-retirement support. The data was based on analysis of 10 years of responses from people aged 40 to 64 collected through the ministry’s annual survey. According to the data, awareness of post-career financial security grew between 2015 and 2025 among this demographic, driven by a rapidly aging population. In 2015, 75.8 percent of the age group said they were actively building or already have a retirement cushion, and the ratio rose to 81.9 percent in 2025. But a large portion of the cushion was from the national pension, as reliance on the state pension grew by almost 10 percentage points, while alternative means experienced a decline as reliance on private pension services

Sep 21, 2026By Jun Ji-hye

[COVER STORY] Middle-aged Koreans largely look to national pension for post-retirement safety net

KOSPI surges 2.66% on Wall Street rally, foreign buying

KOSPI surged more than 2 percent on Friday, reclaiming the 6,890 threshold, driven by an overnight rally on Wall Street and a resurgence in foreign buying. The main index opened at 6,885.70, up 170.29 points, or 2.54 percent, from the previous close. It briefly climbed to an intraday high of 6,914.08, up 2.96 percent, breaking above the 6,900 level before closing at 6,894.23, up 178.82 points, or 2.66 percent. Foreign and institutional market participants led the buying spree, scooping up a net 438.8 billion won ($317 million) and 1.5 trillion won in equities, respectively. In contrast, retail investors unloaded a net 3.59 trillion won. Notably, this marked the first session of net buying by foreign investors since Sept. 8. The index turned around after holding up relatively well in the previous session, when it fell just 0.04 percent despite the U.S. Federal Reserve’s hawkish rate hike. Local equities drew significant upward momentum from overnight gains in all three major U.S. stock indexes, supported by retreating U.S. Treasury yields and cooling global crude oil prices. Market sentim

Sep 18, 2026By Jun Ji-hye

KOSPI surges 2.66% on Wall Street rally, foreign buying

Korea Eximbank chief meets Uzbek president

Hwang Ki-yeon, left, chairman and CEO of the Export-Import Bank of Korea (Korea Eximbank), shakes hands with Uzbek President Shavkat Mirziyoyev at The Shilla Seoul hotel, Tuesday, a day after Mirziyoyev held a summit with President Lee Jae Myung. Korea Eximbank exchanged memorandums of understanding with Uzbek counterparts to strengthen bilateral cooperation, identify strategic projects and support Korean companies seeking to enter the Uzbek market. Courtesy of Korea Eximbank

Sep 16, 2026By Jun Ji-hye

Korea Eximbank chief meets Uzbek president

Data ministry explores AI-friendly global data standards with OECD, ADB

Korea is stepping up efforts to make official statistics and other public data more accessible to artificial intelligence (AI) and explore AI-friendly global data standards to develop data that AI can more accurately understand and use, the Ministry of Data and Statistics said Tuesday. Toward that end, in collaboration with the OECD and the Asian Development Bank (ADB), the ministry opened a three-day workshop in Seoul, Tuesday, bringing together more than 80 data experts from statistical agencies and central banks in 25 countries. A key focus is Statistical Data and Metadata eXchange (SDMx), an international standard that enables statistics and related information to be exchanged across different systems. Various sessions cover ways to standardize and manage data for AI and use AI tools to improve data quality and streamline data production and management. Experts in data standards and AI from major international organizations, including the OECD and the Bank for International Settlements, serve as instructors. On the final day, participants will take part in the SDMx + AI Innovation Ha

Sep 15, 2026By Jun Ji-hye

Data ministry explores AI-friendly global data standards with OECD, ADB

Won rally clouds earnings outlook for automakers, chipmakers

A sharp rise in the Korean won’s value against the dollar is clouding the earnings outlook for the nation’s major exporters, including automakers and chipmakers, according to market analysts Tuesday. In broad terms, a stronger local currency offers welcome relief to the broader economy by easing inflationary pressures and lowering import costs. The main concern, however, is the speed of the change. A rapid rise in the won can lead to unexpected earnings losses for export-dependent companies as they have limited time to adjust product prices or production plans in response to foreign exchange swings. On top of that, they may have to reverse the benefits of a weaker won that were previously factored into their earnings forecasts. The recent decline in the exchange rate, driven by a stronger won, has been unusually steep. Data released Monday by the Bank of Korea showed that the won-dollar exchange rate fell 8.09 percent in July alone, marking the sixth-largest monthly decline since the market average exchange rate system was introduced in March 1990. It was the sharpest one-month drop

Sep 8, 2026By Jun Ji-hye

Won rally clouds earnings outlook for automakers, chipmakers

Korean stocks rebound as US rate concerns ease

Korean stocks climbed Friday, with the benchmark KOSPI reclaiming the 6,600 level as a rally on Wall Street and a pullback in U.S. Treasury yields improved investor sentiment. Foreign and institutional investors turned net buyers after five consecutive sessions of selling, with net purchases of 479.3 billion won ($355 million) and 1.67 trillion won, respectively, providing a boost to the index. KOSPI started the session 1.14 percent higher at 6,654.36, up 74.88 points from the previous close. The index remained in positive territory throughout the session and ended 107.73 points, or 1.64 percent, higher at 6,687.21. U.S. stocks advanced across the board overnight as Treasury yields steadied. The Dow Jones Industrial Average rose 1.18 percent, while the other two major indexes also posted gains. The rally was partly fueled by comments from Federal Reserve Gov. Christopher Waller, who signaled he could support keeping interest rates unchanged at this month’s Federal Open Market Committee meeting, if incoming inflation data confirm that price pressures are continuing to ease. His remarks

Sep 4, 2026By Jun Ji-hye

Korean stocks rebound as US rate concerns ease

EXPLAINER How SKT data breach pushed inflation up by 0.6 percentage point

The fallout from SK Telecom's data breach last year has resurfaced in consumer inflation data a year later. In an unexpected twist, a 50 percent cut in mobile phone bills for more than 20 million subscribers at the time created a base effect that pushed up last month’s consumer inflation rate by nearly 0.6 percentage point, government data showed Wednesday. According to the Ministry of Data and Statistics, the consumer price index stood at 120.05 in August, up 3.1 percent from a year earlier. Inflation had accelerated from 2.6 percent in April to 3.1 percent in May and 3.2 percent in June before easing to 2.8 percent in July. It returned to the 3 percent range a month later. At first glance, the latest data may suggest that inflationary pressures are picking up again. But the August increase was largely driven by the fading impact of SK Telecom’s massive mobile bill discounts introduced last year following the incident, which potentially affected approximately 25 million customers. In August last year, the country’s largest wireless carrier cut mobile bills by 50 percent for all su

Sep 2, 2026By Jun Ji-hye

[EXPLAINER] How SKT data breach pushed inflation up by 0.6 percentage point

Finance minister resumes G20 trip after brief cancellation amid Cabinet reshuffle

Finance Minister Koo Yun-cheol, who was included in President Lee Jae Myung’s Cabinet shuffle on Sunday, departed for the United States to attend a meeting of Group of 20 finance ministers and central bank governors as originally planned after briefly canceling his trip, according to the ministry. “Koo departed as scheduled Sunday morning to attend the G20 gathering in Asheville, North Carolina, which runs Monday through Tuesday,” a ministry official said. Koo initially called off his U.S. trip after learning that he was set to be replaced in the Cabinet shuffle upon arriving at Incheon International Airport earlier in the day. Several hours later, the presidential office announced the Cabinet changes, with Lee nominating incumbent First Vice Minister Lee Hyoung-il as the new finance minister, among other appointments. Koo, however, reversed his decision and opted to make the trip as planned, given that he is expected to remain in office for about another month while his successor goes through a parliamentary confirmation hearing and formal appointment process. Another consideration

Aug 30, 2026By Jun Ji-hye

Finance minister resumes G20 trip after brief cancellation amid Cabinet reshuffle

Youth backlash grows as gov't pushes ahead with crypto tax plan

The government’s plan to begin taxing digital assets in January is drawing mounting opposition from retail investors, opening a fresh political battlefront ahead of the 2028 general elections, as young voters protest what they see as unfair tax policy, according to market watchers on Thursday. The complaints come as a growing number of young people have already expressed frustration over a series of economic policies by the Lee Jae Myung administration targeting young people’s housing, savings and investments. The government and the ruling Democratic Party of Korea (DPK) say that crypto taxation will take effect on Jan. 1, when the current grace period expires. Under the framework, gains from trading or lending virtual assets exceeding 2.5 million won ($1,810) annually will face a 22 percent tax rate. “I understand the principle of taxing income where it is made,” said Choi, a 33-year-old office worker in Guri, Gyeonggi Province. “What is hard to accept is pushing this through when so many details remain unresolved, especially after the government scrapped the stock capital ga

Aug 28, 2026By Jun Ji-hye

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