Economy - The Korea Times

Sell US, buy Korea: Korean retail investors pivot amid US market concerns

Even during the sharp declines in the U.S. stock market this February and March — triggered by President Donald Trump's tariff policies — Korean retail investors remained loyal to the market, making substantial net purchases. However, that trend has reversed. Starting this month, Korean investors have begun selling off their U.S. holdings. With persistent concerns over the U.S. economy and rising expectations of a rate cut by the Bank of Korea, investor attention is now shifting back to domestic stocks. According to the Korea Securities Depository Tuesday, retail investors recorded net sales of U.S. stocks worth $1.19 billion so far this month. This marks their first net selling of U.S. equities in seven months. In the fourth week of May alone, Korean investors sold a net $205.85 million in U.S. stocks. In contrast, during the same period, they made net purchases of 807.2 billion ($588 million) won in the benchmark KOSPI index. The top three domestic stocks purchased were Samsung Electronics, Hyundai Motor and Hanwha Solutions. Concerns over the U.S. economy have deepened after Moody

May 28, 2025By Lee Yeon-woo

Sell US, buy Korea: Korean retail investors pivot amid US market concerns

Korea to partially resume poultry imports from Brazil amid bird flu outbreak

Korea will resume imports of poultry and related products from regions in Brazil unaffected by a recent outbreak of highly pathogenic avian influenza (HPAI), government officials said Friday, amid possible supply shortage concerns. The decision comes amid growing concerns over potential domestic supply shortages following the suspension of imports from the South American country, which accounts for more than 80 percent of Korea's chicken imports. Seoul imposed a ban on poultry imports from Brazil last Thursday, following the country's official notification to the World Organization for Animal Health of an HPAI outbreak at a breeder farm in the southern state of Rio Grande do Sul. "While the prices of agricultural products and petroleum have remained stable, the recent AI outbreak in Brazil has led to concerns over possible price fluctuations in chicken-related food products," acting Finance Minister Kim Beom-suk said during a vice-ministerial meeting on inflation held earlier in the day. This marks the first time HPAI has been detected at a commercial poultry farm in Brazil, though the v

May 23, 2025By Yonhap

Korea to partially resume poultry imports from Brazil amid bird flu outbreak

More firms may delist due to growing burden from enhanced investor protection rule

A growing number of publicly traded companies are gearing toward voluntarily delisting their shares on the stock exchange to avoid growing burdens from a revised law aimed at empowering minority shareholders’ rights, according to industry officials on Thursday. The Commercial Act, which was amended and passed by the liberal Democratic Party of Korea (DPK)-controlled National Assembly on March 13, aims to expand corporate directors’ duty from solely the company to shareholders. The law received pushback for potentially impeding management's decision-making. On April 1, then-acting President Han Duck-soo vetoed the revision while former President Yoon Suk Yeol's impeachment trial was ongoing. The revision stipulates rights for minority shareholders during mergers, spinoffs and other corporate transactions, and ensures a fair return for their investment. Industry officials say that the revised act is expected to further gain ground in the next administration, as Lee Jae-myung, the DPK presidential candidate, is the frontrunner for the June 3 presidential election. Lee has ardently defend

May 23, 2025By Yi Whan-woo

More firms may delist due to growing burden from enhanced investor protection rule

Producer prices fall for first time in 6 months in April: BOK

Korea's producer prices declined for the first time in six months in April amid falling global oil prices, central bank data showed Friday. The producer price index, a major barometer of consumer inflation, reached 120.24 last month, down 0.1 percent from 120.36 in March, according to preliminary data from the Bank of Korea (BOK). It marked the first decline since October 2024, when the figure slid 0.1 percent. On a yearly basis, however, April's reading logged a 0.9 percent increase, marking the 21st consecutive month of an year-on-year rise, the data showed. Producer prices are one of the key indicators that determine the trajectory of inflation, as they influence the prices businesses charge consumers in the months ahead. Agricultural, fisheries and other food prices dipped 1.5 percent from a month earlier in April, and prices of petroleum products went down 2.6 percent. The domestic supply price index, which is calculated based on producer prices and import prices, shed 0.6 percent month-on-month in April, according to the data. "The decline in international oil prices has led to lower

May 23, 2025By Yonhap

Producer prices fall for first time in 6 months in April: BOK

Ex-finance ministry spokesperson named as ADB vice president

Kim Seong-wook, a former spokesperson at the Ministry of Economy and Finance who was serving as an executive director at the International Monetary Fund (IMF), has been named a vice president at the Asian Development Bank (ADB). The finance ministry said Thursday that the ADB appointed Kim as the chief partnership officer for its external relations division. The post, newly created this year, empowers the appointee as vice president to fully address the ADB’s concerns over waning multilateralism in recent years. “As a highest-level position, it will primarily be responsible for expanding partnerships with countries both within and outside the region, advancing regional economic integration, and strengthening international cooperation,” the finance ministry explained. Kim’s appointment is noteworthy as the second ADB vice president from Korea since last year, following Um Woo-chong, who was the bank’s managing director general from February 2021 to July 2024. “We expect that Kim as an ADB vice president will enhance Korea’s roles in terms of public services and regional econo

May 22, 2025By Yi Whan-woo

Ex-finance ministry spokesperson named as ADB vice president

Exports down 2.4% in first 20 days of May amid US tariffs measures

Korea's exports went down 2.4 percent from a year earlier in the first 20 days of this month due in part to sluggish shipments to the United States amid ongoing tariff measures, data showed Wednesday. Outbound shipments reached $31.97 billion in the May 1-20 period, compared with $32.74 billion tallied over the same period last year, according to the data from the Korea Customs Service. Imports decreased 2.5 percent on-year to $32.22 billion during the period, resulting in a trade deficit of $300 million. The daily average volume of exports also went down 2.4 percent on-year over the cited period, according to the customs office. By destination, exports to the United States plunged 14.6 percent to $5.25 billion, largely due to new tariffs on automobiles and other key items. Shipments to China, the top trading partner of South Korea, also went down 7.21 percent on-year to $6.33 billion. The customs office noted that outbound shipments to the U.S. are expected to remain under downward pressure due to the ongoing tariff-related uncertainties. By item, exports of semiconductors increased 17.3

May 21, 2025By Yonhap

Exports down 2.4% in first 20 days of May amid US tariffs measures

Buy $716,000 home with $129,000? Gov’t new mortgage plan targets youth

Finding a place to call home is a universal dream. But in Korea, the dream is slipping further out of reach. As of the first quarter of 2024, purchasing an 84-square-meter apartment in Seoul would take about 31 years of saving an entire salary without spending a single penny, according to a real estate information platform Dabang. That's why Jeong, a 29-year-old office worker in Seoul, is very uncertain whether she'll be able to buy a home in the future. "Marriage costs money, having a child costs money and now it feels I'm living just to spend money. At this rate, how will I ever afford a home?" Jeong said, with her student loan and many other bills in mind. "I want to live in a clean, reasonably priced home without the risk of being scammed." To help young people like Jeong — who have been priced out of the housing market — financial authorities are considering a new scheme: so-called "shared-equity mortgages." Under this plan, the state-owned Korea Housing-Finance Corporation (KHFC) invests up to 40 percent of a home's purchase price as a co-owner. Instead of taking out a full loan

May 20, 2025By Lee Yeon-woo

Buy $716,000 home with $129,000? Gov’t new mortgage plan targets youth

Korea invests more abroad, attracts less foreign investments

Foreign direct investment in Korea fell four notches in 2024 from a year earlier, ranking 17th among the world’s top 30 economies, data from the Bank of Korea (BOK) showed Sunday. The drop appeared to have been driven by foreign investors scaling back or postponing investments in response to a sharp decline in economic confidence following the Dec. 3 martial law declaration by ousted President Yoon Suk Yeol. This triggered political turmoil and rattled the foreign exchange and stock markets, according to the central bank. In contrast, overseas investment by Korean individuals and corporations climbed three spots, ranking 10th. The growing imbalance between capital inflow and outflow is viewed as a potential drag on the domestic economy, raising concerns that this could undermine Korea's long-term industrial competitiveness and weaken overall economic momentum. BOK data showed that overseas investment into Korea amounted to $37.18 billion in 2024, representing a steep 33.8 percent drop from the previous year. Based on country-level data from the International Monetary Fund (IMF), Korea ra

May 18, 2025By Jun Ji-hye

Korea invests more abroad, attracts less foreign investments

Money supply falls for first time in 23 months in March: BOK

Korea's money supply fell for the first time in 23 months in March, due mainly to a decline in savings deposits and other liquid financial products, central bank data showed Thursday. The country's M2, a key gauge of the money supply, stood at 4,227.8 trillion won ($3.01 trillion) in March, down 0.1 percent from a month earlier, according to the preliminary data from the Bank of Korea (BOK). It marked the first monthly decline since April 2023. On a year-on-year basis, however, the money supply advanced 6.1 percent in March. The M2 is a measure of the money supply that counts cash, demand deposits and other easily convertible financial instruments. The on-month decline came as savings deposits fell 7.2 trillion won from the previous month and other liquid financial products dropped 5.7 trillion won. Financial bonds with maturities under two years also lost 4.8 trillion won. But investment funds went up by 8.6 trillion won on-month and demand deposits increased 5.5 trillion won. "Savings deposits declined due to fiscal spending by local governments, while other liquid financial products, par

May 15, 2025By Yonhap

Money supply falls for first time in 23 months in March: BOK

Financial Supervisory Service chief attends Basel committee meeting

The chief of Korea's financial watchdog attended a Basel committee meeting earlier this week to discuss pending issues, such as the Basel III implementation, his office said Tuesday. Lee Bok-hyun, governor of the Financial Supervisory Service (FSS), attended the Governors and Heads of Supervision (GHOS) meeting in the Swiss city of Basel on Monday, the top-decision making body of the Basel Committee on Banking Supervision. The meeting was attended by chiefs of financial watchdogs from major economies and top central bankers. During the meeting, participants checked the progress in the implementation of the Basel III and the impacts of climate change on the banking sector, according to the FSS. The new rules, including revisions to calculation systems for capital requirements and credit risks, were set in the aftermath of the 2008-09 global financial crisis and adopted by major economies.

May 13, 2025By Yonhap

Others