Economy - The Korea Times

Stablecoin turf battle intensifies between FSC and BOK

Korea’s plan to introduce a regulatory framework for stablecoins by the end of the year is facing growing uncertainty, as disagreements emerge between the Financial Services Commission (FSC), the country’s top financial regulator, and the Bank of Korea (BOK) over key provisions, National Assembly officials and financial authorities said Wednesday. Stablecoins are digital currencies designed to maintain a stable value by being tied to central bank-issued currencies, such as the U.S. dollar, or to physical assets like gold. Tether (USDT) and USD Coin (USDC), both pegged one-to-one to the U.S. dollar, are among the most widely used stablecoins. The Assembly’s National Policy Committee had previously indicated its plan to bring stablecoins under the regulatory framework through the second stage of the Virtual Asset User Protection Act, which came into effect in July 2024. At Monday’s subcommittee meeting, however, the proposed bills outlining stablecoin oversight were removed from the agenda. With several unresolved issues still dividing the relevant institutions, prospects for the

Nov 26, 2025By Jun Ji-hye

Stablecoin turf battle intensifies between FSC and BOK

Finance chief pledges 'decisive action' in case of excessive FX market volatility

Finance Minister Koo Yun-cheol said Wednesday that the government will take "decisive action" if excessive volatility occurs in the foreign exchange (FX) market, as the Korean won continues to weaken against the U.S. dollar. "The won tends to react more sensitively compared with other currencies," the minister told reporters. "We will take decisive action if volatility expands excessively," he added, stressing that FX authorities are also closely monitoring speculative trading and one-sided market movements. The fast pace of the won's recent decline has prompted the Ministry of Economy and Finance, the Bank of Korea, the National Pension Service (NPS) and the Ministry of Health and Welfare overseeing the pension fund to form a joint consultation body. The four-way group held its inaugural meeting on Monday to explore ways to balance the NPS' investment returns with stability in the FX market, creating what the minister calls a "new framework." "Discussions on the new framework are not intended as a temporary measure to mobilize the NPS to counteract the won's depreciation," the minister s

Nov 26, 2025By Yonhap

Finance chief pledges 'decisive action' in case of excessive FX market volatility

'Inclusive finance' backfires as lower-credit borrowers receive better rates than higher-credit individuals

A government-initiated lending policy is backfiring against its purpose of supporting low-income borrowers as it also rewards those with low credit scores, industry officials said Monday. They said the policy, part of “inclusive finance” efforts, wrongly treats low-income and low-credit-score borrowers alike, even though low-credit borrowers may just be delinquent or inconsistent in repayment rather than low in earnings. Under the circumstances, these low-credit borrowers receive more favorable borrowing rates than those with higher credit scores, despite falling short on key credit assessment criteria, including repayment history and outstanding balances. Many intended beneficiaries of "inclusive finance" have credit scores between 651 and 700, placing them third-lowest of nine groups as defined by the Korea Federation of Banks, according to industry officials. Scores of 951 to 1,000 are the highest, while 600 or below is the lowest. Data compiled by the federation in October showed three of the four major commercial banks — KB Kookmin, Hana and Woori — charged higher rates for

Nov 24, 2025By Yi Whan-woo

'Inclusive finance' backfires as lower-credit borrowers receive better rates than higher-credit individuals

Gov't push for low car insurance premiums creates dilemma for insurers as profits fall

Non-life insurers are facing a car insurance dilemma, as their need for higher premiums to grapple with falling profits clashes with the government’s shared growth initiative, industry officials said Thursday. The government wants to keep premiums low because car insurance has a heavy influence on the consumer price index and affects more than 25 million subscribers — nearly half of Korea’s population. For non-life insurers, however, this strategy has become unsustainable, as they struggle with declining profits while premiums remain largely unchanged. A total of 31 non-life insurers nationwide posted a combined net profit of 6.46 trillion won ($4.39 billion) from January to September, a 19.6 percent drop from a year earlier. The year-on-year decline was largely driven by the car insurance sector, where the five largest insurers — Samsung Fire & Marine Insurance, DB Insurance, Meritz Fire & Marine Insurance, Hyundai Marine & Fire Insurance and KB Insurance — posted a combined loss ratio of 93.2 percent, up 7.1 percentage points from last year. In the third quarter alone, car ins

Nov 21, 2025By Yi Whan-woo

Gov't push for low car insurance premiums creates dilemma for insurers as profits fall

Plan to widen English disclosures sparks concerns over companies' translation burdens

The government's plan to expand English-language disclosures is expected to increase companies' responsibility for providing translations, despite the policy's aim of helping attract foreign investors, according to industry officials and experts. Such concerns came after the government recently announced measures to improve corporate disclosure practices, which include the English-language disclosure obligation to be applied to all KOSPI-listed firms by 2028. The policy aims to help boost foreign investors’ access to Korea’s capital markets, mitigating the so-called "Korea discount," under which Korean firms are typically valued below their international peers. Observers also point out that further upgrades to disclosure infrastructure will be necessary to ensure accurate and easy-to-understand English filings for global investors. Kim Dae-jong, a professor at Sejong University’s School of Business, noted that although the policy represents a meaningful step in strengthening core market infrastructure, Korean companies may face increased compliance burdens, similar to those observ

Nov 20, 2025By Jun Ji-hye

Plan to widen English disclosures sparks concerns over companies' translation burdens

Korea's alternative stock exchange faces foreign investor complaints over 15% trading cap

Nextrade, Korea’s first alternative stock exchange, is facing complaints from foreign investors over a rule that limits trading volume, industry officials said Wednesday. Under the regulation set by the Financial Services Commission, Nextrade cannot account for more than 15 percent of the total trading volume on the Korea Exchange (KRX). The rule is designed to ensure that Nextrade, which launched in March, challenges the KRX’s nearly 70-year monopoly without expanding excessively or creating unnecessary market competition. Nextrade has gained a competitive edge over the regular KRX market by offering longer trading hours — from 8 a.m. to 8 p.m. — giving investors greater flexibility than the standard weekday window of 9 a.m. to 3:30 p.m. However, the 15 percent cap rule has become a stumbling block for investment, as Nextrade does not transparently or promptly share how close it is to the cap or which stocks may be temporarily removed, according to industry officials. They said this lack of transparency is especially challenging for foreign investors, who face language and other

Nov 19, 2025By Yi Whan-woo

Korea's alternative stock exchange faces foreign investor complaints over 15% trading cap

Korean elite’s double standard in home ownership persists: surveys

Lawmakers and high-ranking bureaucrats in both central and municipal governments own multiple homes despite the deepening housing crisis, according to recent surveys. The findings reflect the persistent double standard of Korea’s elite, as tighter regulations make it hard for ordinary citizens to buy homes, while those in power remain largely unaffected. According to data from corporate tracker Leaders Index, Tuesday, 48.8 percent of 2,581 central and local government officials of Grade 4 or higher, along with their family members, own two or more homes, and 17.8 percent hold three or more. Central government officials held the highest average number of homes per person at 1.89, followed closely by municipal governors at 1.87. Local council members and officials at public institutions or government-funded think tanks held around 1.71 homes each, while members of the National Assembly owned an average of 1.41 homes. Among municipal governors, Cho Seong-myung, head of Seoul’s upscale Gangnam District, had the highest number of homes at 42. Rep. Park Min-kyu of the ruling Democratic Party

Nov 18, 2025By Yi Whan-woo

Korean elite’s double standard in home ownership persists: surveys

Shareholder meetings remain heavily concentrated despite efforts to spread dates

Shareholder meetings of more than 90 percent of listed companies in Korea still heavily overlap, despite a government-led campaign to spread the dates and encourage greater participation, according to a report released Monday. The report, authored by Korea Capital Market Institute researcher Hwang Hyun-young, found that 96.4 percent of the 2,583 companies with December fiscal year-ends held their meetings between March 20 and 31 this year. Notably, over 60 percent of these meetings occurred on just three working days — March 26, 28 and 31. The findings come as financial authorities have urged companies to disperse meeting dates to give shareholders more time to participate in decision-making. To this end, authorities have implemented policies such as offering incentives to promote dispersion and operating voluntary compliance programs. “Even with these initiatives, the concentration of shareholder meetings at the end of March persists, casting doubt on the effectiveness of the measures,” Hwang said. She compared the situation with the United States, where 74 of the 100 largest compan

Nov 18, 2025By Yi Whan-woo

Shareholder meetings remain heavily concentrated despite efforts to spread dates

Over 60% of firms oppose plan for mandatory retirement of treasury stocks

The business community is raising concerns over the government’s push to enforce the compulsory cancellation of treasury stocks, with more than 60 percent of companies opposing the plan in a survey released Wednesday. The survey, conducted by the Korea Chamber of Commerce & Industry, found that 62.5 percent of the 104 listed firms polled opposed the government’s proposal to mandate the retirement of shares repurchased from shareholders. The 104 firms included in the poll held at least 10 percent of their own shares. Opposition was much greater than the 22.8 percent who remained neutral and the 14.7 percent who supported the measure. The government, backed by the ruling Democratic Party of Korea, is moving to pass a third amendment to the Commercial Act and aims to have the bill approved by the end of this month. The proposed reform would require listed companies to retire their repurchased shares, in line with President Lee Jae Myung’s push to bolster the stock market and strengthen shareholder value. Retirement of treasury stocks would reduce the number of outstanding shares, potent

Nov 12, 2025By Yi Whan-woo

Over 60% of firms oppose plan for mandatory retirement of treasury stocks

STO market set for takeoff amid 3-way race for trading platform license

The race for licenses to operate over-the-counter trading platforms for fractional investments has narrowed to three contenders, with financial authorities working to select two winners by the end of this year, officials said Friday. As the National Assembly moves forward with legislation on security token offerings (STOs), which has garnered bipartisan support, the market is expected to officially take off next year. Fractional investment refers to dividing ownership of real-world assets such as real estate or artwork, or the rights associated with them, into multiple shares, allowing investors to co-own and share profits collectively. An STO applies blockchain technology to digitize ownership or profit rights of both tangible and financial assets in the form of securities. In essence, STOs integrate fractional investments into the formal financial system through blockchain infrastructure, for example, enabling a single property to be divided into several ownership units, each issued as a tradable token. The STO sector is considered one of the most promising markets for future growth. A

Nov 7, 2025By Jun Ji-hye

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