Economy - The Korea Times

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

Financial Supervisory Service chief attends Basel committee meeting

Korea's exports shrink 23.8% during first 10 days of May on fewer working days

Korea's exports dropped 23.8 percent from a year earlier in the first 10 days of this month mainly due to a reduced number of working days, data showed Monday. Outbound shipments reached $12.83 billion in the May 1-10 period, compared with $16.84 billion tallied a year earlier, according to the data from the Korea Customs Service. Imports went down 15.9 percent on-year to $14.57 billion during the period, resulting in a trade deficit of $1.7 billion. The sharp decline in exports was largely attributed to fewer working days compared with a year before. The number of working days over the cited period came to five this year, sharply down from 6 1/2 days in 2024. The daily average volume of exports went down 1 percent on-year over the cited period, according to the customs office. By destination, exports to the United States plunged 30.4 percent on-year to $1.99 billion, a possible outcome of new U.S. tariffs on automobiles and other key items. Shipments to China, the top trading partner of Korea, also went down 20.1 percent on-year to $2.81 billion. The customs office noted that outbound ship

May 12, 2025By Yonhap

Korea's exports shrink 23.8% during first 10 days of May on fewer working days

Gov't to closely monitor financial markets after US rate freeze

The finance ministry said Thursday it will closely monitor the country's financial markets to assess the impact of the latest U.S. rate freeze, noting persistent uncertainties surrounding global trade. In an interagency meeting on macroeconomic and financial issues chaired by Acting Finance Minister Kim Beom-suk, authorities agreed that the global financial markets remained generally stable following the U.S. Federal Reserve's rate freeze decision, which factored in rising employment and inflationary risks. On Wednesday (U.S. time), the Fed held its benchmark interest steady at the 4.25-4.5 percent range for the third consecutive time, citing increased uncertainty on the economic outlook in America. The ministry said it plans to hold weekly macroeconomic meetings to swiftly respond to uncertainties surrounding concerns over a possible U.S. recession, along with trade tensions involving the United States and China, and Washington's tariff policies. The government also plans to monitor volatility in the foreign exchange market following last week's sharp appreciation of Asian currencies ag

May 8, 2025By Yonhap

Gov't to closely monitor financial markets after US rate freeze

From toys to Tesla: Korean parents turn to stocks for children's gifts

Gift-giving for kids is often about fun and excitement. But in Korea, some parents are moving away from stuffed animals and game consoles, choosing instead something more practical and prudent: stocks. 2025 marks the seventh year that a 45-year-old office worker surnamed Lee has gifted stocks to his son, who is in elementary school. Each year on his son’s birthday and Children's Day, Lee purchases around 1 million won ($715.72) worth of stocks or exchange-traded funds (ETFs) with high dividends. "My child is only in first grade. I gift him stocks every year, but I’m not sure how much he truly understands," Lee said. "Right now, his attention is all on the Pokemon cards he got from his mother. Still, I hope my small efforts help him when he becomes an adult." Like Lee, a growing number of parents are purchasing stocks to lay the groundwork for their children’s financial future. According to six major brokerage firms — Mirae Asset Securities, Korea Investment & Securities, Kiwoom Securities, Samsung Securities, NH Investment & Securities and Toss Securities — the number of accoun

May 7, 2025By Lee Yeon-woo

From toys to Tesla: Korean parents turn to stocks for children's gifts

Assets held by people with dementia take up 6.4% of Korea's GDP

Assets held by people aged 65 or older with dementia are estimated to have reached 154 trillion won ($111.1 billion), representing 6.4 percent of Korea's gross domestic product (GDP), government data showed Tuesday. According to a study conducted by the Presidential Committee on Aging Society and Population Policy, Korea had approximately 1.24 million people aged 65 and older having dementia. Among them, an estimated 760,000 individuals, or 61 percent, owned assets. The combined value of their income and property totaled 154 trillion won, averaging about 200 million won per person. These assets accounted for 6.4 percent of the nation's GDP. Considering that older people who have dementia make up just 2.4 percent of the total population, their share of the nation's wealth is disproportionately high, the research team noted. "Older (people with dementia) are vulnerable to unauthorized use of their assets or fraud by family members and third parties," Joo Hyung-hwan, vice chair of the presidential committee, said. "Additionally, if people with dementia's assets remain frozen, it could disru

May 6, 2025By Lee Yeon-woo

Assets held by people with dementia take up 6.4% of Korea's GDP

Gov't asks oil industry to refrain from price hikes ahead of tax adjustment

The industry ministry on Tuesday asked oil companies to refrain from drastic price hikes, as the government plans to scale back the fuel tax cut starting next month, officials said. Last week, the government announced its decision to extend the fuel tax cut for an additional two months through the end of June, while reducing the tax discount on gasoline from 15 percent to 10 percent and trimming the 23 percent tax cut on liquefied petroleum gas (LPG) to 15 percent. During a meeting with officials of local oil firms, the Ministry of Trade, Industry and Energy urged them to refrain from raising prices beyond the extent of the reduced tax discount and asked for their cooperation on preventing a sharp rise in fuel prices. Under the new measure, gasoline prices are expected to rise by 40 won per liter and diesel prices by 46 won per liter. "Global oil prices have fallen recently, but uncertainty in the market remains high," senior ministry official Yoon Chang-hyun said. "The government will continue to work closely with the industry to ensure stable supply and prices."

Apr 29, 2025By Yonhap

Gov't asks oil industry to refrain from price hikes ahead of tax adjustment

Bank loan delinquency hits 6-year high as more SMEs struggle to stay afloat

The loan delinquency rate at Korean banks has soared to its highest level in more than six years, data showed Friday. This increase highlights the growing financial strain on small businesses and the self-employed, driven by weakening domestic demand and the burden of high interest rates. According to data released by the Financial Supervisory Service (FSS), the delinquency rate on won-denominated loans — those overdue by one month or more — was 0.58 percent at the end of February. This marks the highest rate since November 2018, when it was 0.60 percent. The figure is also up 0.05 percentage points from the previous month and 0.07 percentage points from a year earlier. The increase was driven primarily by corporate loans, particularly those held by small and medium-sized enterprises (SMEs) and the self-employed. The delinquency rate for corporate loans — including both large firms and SMEs — rose to 0.68 percent, a 0.07 point increase from January. Among large companies, the rate ticked up by 0.05 points to 0.10 percent, while SME loan delinquencies rose 0.07 points to 0.84 perce

Apr 25, 2025By Lee Yeon-woo

Bank loan delinquency hits 6-year high as more SMEs struggle to stay afloat

Soaring gold prices threaten Korea's first birthday ring tradition

In Korea, a gold ring carries deep meaning. Traditionally, it has been given by family or friends to wish a baby good health and fortune on their first birthday. It also serves as a financial safety net later in life — something to sell in times of hardship. But this long-standing tradition is now under threat as gold prices soar. “My son received a gold ring on his first birthday in 2015. This year, my friend’s son is turning one, and I can't ignore how much gold prices have risen," said a woman in her late 30s, who asked to be identified as Min’s mom. "Since I received a ring back then, I feel torn. Should I keep the tradition and give a gold ring, or would it be better to give cash instead?” The custom of giving gold rings on a baby’s first birthday traces back to Chinese immigrants who arrived in Korea during the Joseon Dynasty. Gold was believed to ward off bad luck and, thanks to its lasting value, symbolized an investment in the child’s future. Gold also holds historical significance in the Korean economy. During the 1997 Asian financial crisis, many families donated

Apr 24, 2025By Lee Yeon-woo

Soaring gold prices threaten Korea's first birthday ring tradition

Why Korea’s payment systems leave tourists frustrated

If you're carrying paper money and coins in Korea, you might get a few curious looks. Most Koreans stroll the streets carrying nothing more than a small purse — or nothing at all — thanks to the widespread use of credit cards and mobile payments. But for foreign nationals, the experience can be quite different. Long-term residents with a Korean credit or debit card typically report few issues. However, short-term visitors tend to face the most difficulties, particularly in small shops or transportation settings, such as subway and train stations. "Many stores claim that most cards can be used, but in reality, when using a card issued outside of Korea, payments sometimes fail due to communication errors with the store's card reader," one Reddit user wrote, recommending that visitors carry multiple types of cards when in Korea. The most common and frustrating obstacle appears to occur when using public transportation. Despite Korea’s reputation for technological advancement, the contactless or near-field communication (NFC) technology systems used in its public transportation do not u

Apr 23, 2025By Lee Yeon-woo

Why Korea’s payment systems leave tourists frustrated

Commission begins 1st review on minimum wage for next year

The Minimum Wage Commission kicked off this year's first review Tuesday to raise the national minimum hourly wage for next year, officials said. Korea raised the minimum hourly wage by 1.7 percent to 10,030 won ($7.03) for this year, marking the second-smallest recorded increase. The labor sector, which had demanded 12,600 won last year, is expected to request a higher minimum wage this year, citing a high inflation rate. Businesses, on the other hand, are likely to call for a freeze on the grounds that an increase will be a heavy burden for small businesses. The two sides have yet to come up with their initial proposal. The country's top two umbrella labor unions — the Korean Confederation of Trade Unions and the Federation of Korean Trade Unions — claimed during a press conference ahead of the review session that the minimum wage should be set at a "realistic" level to guarantee people's livelihoods. They also said the minimum wage should be expanded to apply to non-regular workers and platform workers. This year, the commission is also expected to have a heated debate on whether to d

Apr 22, 2025By Yonhap

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