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  • Economy

    Seoul stocks, won hammered by massive foreign selling

    Seoul stocks plunged Friday as a prolonged foreign sell-off collided with a sharp downturn in global semiconductor shares, sending the benchmark KOSPI down more than 5 percent to below the 8,200 level. The sustained foreign investor exodus also continued to weigh on the Korean won. In Seoul’s onshore foreign exchange market, the won closed at 1,539.1 per dollar, down 9.4 won from the previous session. During intraday trading, it briefly approached the 1,550 level, its weakest since March 2009, during the global financial crisis. The won has now traded above the 1,500 per dollar threshold for 14 consecutive sessions. KOSPI opened at 8,323.20, down 3.66 percent from the previous session, according to the Korea Exchange. Heavy selling pressure persisted throughout the day, prompting the year’s 10th sidecar shortly after the opening bell — a market safeguard that temporarily suspends program trading during periods of extreme volatility. The index ultimately closed at 8,160.59, down 5.54 percent. Foreign and institutional investors drove the decline, selling a net 3.52 trillion won and

    2 MIN READBy Park Han-sol
    Seoul stocks, won hammered by massive foreign selling
  • Economy

    Korea diversifying LNG imports to ease Middle East dependence: KOGAS chief

    1 MIN READBy Yonhap
    Korea diversifying LNG imports to ease Middle East dependence: KOGAS chief
  • Economy

    Korea's currency tumbles to 17-year low on foreign stock selloff

    1 MIN READBy Yonhap
    Korea's currency tumbles to 17-year low on foreign stock selloff
  • Economy

    Gov't vows to lower barriers for foreign investors with 24-hour FX market

    1 MIN READBy Yonhap
    Gov't vows to lower barriers for foreign investors with 24-hour FX market
  • Economy

    KRX issues sell-side sidecar for KOSPI on sharp fall

    1 MIN READBy Yonhap
    KRX issues sell-side sidecar for KOSPI on sharp fall
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Economy

Watchdog chief urges asset managers to focus on consumer protections, productive finance

The chief of the country's financial watchdog said Wednesday that asset management companies should design financial products that well inform investors of their risks for better protection. In a meeting with heads of 20 asset managers, Lee Chan-jin, governor of the Financial Supervisory Service (FSS), said asset management companies are also urged to play a role in productive finance to prop up the economy. "Asset managers should gain confidence from investors by creating sound market principles and fair competition," Lee said. The FSS chief also said his agency will fully support innovative financial products and asset managers' efforts to create an environment for long-term investments.

Dec 17, 2025By Yonhap
Watchdog chief urges asset managers to focus on consumer protections, productive finance
Economy

Cabinet approves bill to raise tax on corporate income by 1 percentage point

The Cabinet on Tuesday approved a bill raising tax rates on corporate income by one percentage point across all taxable income brackets starting next year, as the government seeks an expansionary fiscal policy. Under the revised scheme, companies with taxable income above 300 billion won ($203.2 million) will be subject to a 25 percent, rate while income between 20 billion won and 300 billion won will be taxed at 22 percent. The top corporate tax rate was last lowered to 24 percent under the previous Yoon Suk Yeol administration in 2022 in an effort to help local firms boost investment. The main opposition People Power Party has largely opposed the tax hike, arguing it would dampen corporate investment and burden companies. The bill was passed by the National Assembly earlier this month. The Cabinet also approved a bill that creates a new bracket for dividend income subject to separate taxation. Under the revision, a separate tax rate of 14 percent will apply to dividend income of up to 20 million won, 20 percent for amounts over 20 million won and up to 300 million won, and 25 percent for

Dec 16, 2025By Yonhap
Cabinet approves bill to raise tax on corporate income by 1 percentage point
Economy

Excessive liquidity not sole factor behind housing market surge, weak won: BOK

Increased liquidity is not the sole factor behind the recent surge in housing prices in the Seoul metropolitan area or the weakness of the local currency, the Bank of Korea (BOK) said Tuesday, stressing that monetary policy alone is not sufficient to fully control an increase in loans. In a blog post, the central bank rejected claims that recent "excessive" liquidity has fueled rising home prices and weakened the Korean won against the U.S. dollar. "There are various factors affecting housing prices and the exchange rate, and it is unreasonable to attribute them solely to an increase in liquidity," the BOK said. "Although M2 has risen in recent months, the increase is not unusual." The central bank noted that the increase in liquidity stemmed from four policy rate cuts during the current easing cycle that began last year, which have affected private credit with a time lag, as well as a recent expansion in the current account surplus. Higher government bond issuance driven by increased fiscal spending was also cited as a contributing factor. "Compared with past easing cycles, however, the

Dec 16, 2025By Yonhap
Excessive liquidity not sole factor behind housing market surge, weak won: BOK
Policy

Korea to invest $20.4 bil. in AI, chip sectors via Public Growth Fund in 2026

The government plans to invest over 30 trillion won ($20.4 billion) next year to support artificial intelligence (AI) and other advanced sectors, funded by a newly launched mega-sized fund, officials said Tuesday. Last week, the 150 trillion-won Public Growth Fund, one of President Lee Jae Myung's key economic pledges, set sail with a focus on accelerating AI adoption across sectors and channeling resources into key industries, including semiconductors, secondary batteries and biotechnology over the next five years. According to the Financial Services Commission (FSC), over 30 trillion won will be initially invested next year, which includes 6 trillion won for the AI sector, 4.2 trillion won for the semiconductor segment and 3.1 trillion won in future mobility. Around 3 trillion won will be directly invested, while 10 trillion won will be allocated for infrastructure. Some 10 trillion won will be offered at low-interest rates, according to the financial regulator. The fund consists of a 75 trillion-won government-guaranteed fund for strategic industries and 75 trillion won in private inv

Dec 16, 2025By Yonhap
Korea to invest $20.4 bil. in AI, chip sectors via Public Growth Fund in 2026
Economy

Gov't to invest $3.06 bil. in securing overseas logistics hubs for exporters

The government will invest at least 4.5 trillion won ($3.06 billion) into securing logistics hubs overseas to support export operations of South Korean companies, according to officials Tuesday. The Ministry of Oceans and Fisheries unveiled the plan during a meeting of ministers related to industrial competitiveness, citing the country's need to invest more in overseas logistics centers to help exporters. Of overseas logistics centers operated by 15 major domestic logistics firms, only 8.8 percent are of Korean ownership. For overseas container terminals, Korean companies currently hold stakes in just seven facilities, according to officials. To boost the country's logistics competitiveness, the ministry plans to expand the number of government-backed overseas logistics bases to 40 by 2030 from nine at the moment. The bases will be secured in 11 countries with heavy trade volume with Korea, including the United States, Canada, Mexico, Vietnam, Indonesia and Germany. It will also join hands with shipping firms and ocean-related authorities to secure stakes in overseas container terminals a

Dec 16, 2025By Yonhap
Gov't to invest $3.06 bil. in securing overseas logistics hubs for exporters
Policy

FX authorities, NPS agree to extend $65 bil. currency swap deal

Foreign exchange authorities have agreed with the state pension operator to extend their $65 billion currency swap deal by one year, the central bank said Monday. The finance ministry and the Bank of Korea (BOK) have agreed with the National Pension Service (NPS) to extend their foreign exchange swap arrangement, with a limit of $65 billion, through the end of 2026, according to the BOK. The deal had been due to expire at the end of this year. The swap deal was first established in September 2022 with an initial limit of $10 billion. Since then, the limit has been increased to $35 billion in April 2023, $50 billion in June 2024 and further to $65 billion in December 2024. "The agreement is expected to contribute to stabilizing the foreign exchange market by absorbing the NPS' demand for spot dollar purchases during periods of market volatility," the BOK said in a release. Hedging foreign assets through swap transactions "would help the NPS mitigate exchange rate volatility risks associated with its overseas investments and support fund returns," the BOK added. The extension comes as the lo

Dec 15, 2025By Yonhap
FX authorities, NPS agree to extend $65 bil. currency swap deal
Others

Concerns mount over weakening won amid surging US dollar demands

The Korean won has rapidly been weakening to nearly 1,480 won against the dollar despite the receding strength of the global currency, prompting concern over the country’s structural imbalance brought on by sizable offshore investment by the National Pension Service (NPS) and retail investors upping U.S. equity holdings, market watchers said Monday. The weaker currency is also accelerating inflationary pressures due to higher import costs, as prospects of tempered U.S. dollar demands fade due to more financial and private firms seeking to hedge in an effort to limit fallout from more currency volatility. The government has activated an inter-agency task force to monitor developments in foreign exchange market and exporters’ currency conversion, outlining measures to encourage dollar selling. The won-dollar rate closed at 1,471 won as of 3:30 p.m. Monday, up 2.7 won from the previous session. “The won is decoupling from global dollar trends, indicating that Korea’s currency is shaped less by external factors but more by domestic capital flows,” Standard Chartered Korea economist

Dec 15, 2025By Lee Kyung-min
Concerns mount over weakening won amid surging US dollar demands
Policy

Gov't to expand K-Pass benefits next year

The government will expand the benefits of K-Pass, a monthly public transit pass offering fare discounts, by broadening the scope of discounts available to users starting next year. Introduced in May last year for subways, buses and the GTX, the existing K-Pass provides refunds of 20 to 53 percent of public transit fares, depending on users’ age groups and regions of residence. According to the Ministry of Land, Infrastructure and Transport on Monday, the new K-Pass introduces additional upper-limit standards that vary by users’ family status and regions of residence. Any amount spent beyond those limits will be refunded. While retaining the existing K-Pass framework, the updated system introduces new standards ranging from 30,000 won ($20) to 100,000 won. The capital region — Seoul, Incheon and Gyeonggi Province — will be subject to the highest thresholds, while less populated regions will have lower standards to provide greater discount benefits to residents. Users with three or more children, lower incomes or those aged 65 or older will also receive greater benefits than user

Dec 15, 2025By Ko Dong-hwan
Gov't to expand K-Pass benefits next year
Economy

3-month interest rate guidance positively impacts market; 1-yr projection under review: BOK

The Bank of Korea (BOK) said Monday that its three-month policy rate outlook has helped shape market expectations and reduce volatility, as the central bank considers extending its forecast horizon to improve policy predictability. The BOK made the assessment during a monetary policy conference held in Seoul, noting that it is reviewing ways to extend its forward guidance outlook to enhance the predictability of policy rate decisions. "The three-month interest rate outlook has had a positive impact on forming market expectations for the policy rate and easing volatility in market interest rates," Kim Byung-kuk, head of the policy coordination team at the BOK's Monetary Policy Department, said. "But the forecast horizon is somewhat shorter than those used by major economies or dot-plot systems. Since July last year, the BOK has been conducting simulations of various approaches, including presenting multiple rate projections within a one-year horizon," he added. Currently, BOK Gov. Rhee Chang-yong discloses the distribution of Monetary Policy Board members' views on the policy rate outlook

Dec 15, 2025By Yonhap
3-month interest rate guidance positively impacts market; 1-yr projection under review: BOK
Policy

Kosdaq blueprint draws attention ahead of presidential policy briefing, 1,000-point milestone

A potential blueprint for the secondary bourse Kosdaq is drawing keen attention ahead of this week’s policy briefing to President Lee Jae Myung, amid two contrasting developments in the index’s path toward reaching the unprecedented 1,000-point mark. The Financial Services Commission (FSC) will deliver a briefing, Thursday, marking the first policy presentation directly to the president covering ministries and affiliated organizations since he took office in June, intended to help him prepare for 2026, industry officials said Sunday. The FSC briefing comes as more investors expect Kosdaq stocks to continue rising — a positive development on the index’s 1,000-point path — with their available funds borrowed from brokerage firms reaching a yearly high of 10 trillion won ($6.76 billion), according to the Korea Financial Investment Association, Friday. On the downside, Kosdaq’s bellwether stock, Alteogen, announced on Dec. 8 that it will move to the benchmark KOSPI, while second-ranked EcoPro BM is also considering leaving — a continuing outflow of top-performing stocks that c

Dec 15, 2025By Yi Whan-woo
Kosdaq blueprint draws attention ahead of presidential policy briefing, 1,000-point milestone
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