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  • Economy

    Rate hike seen as strongest tool to support won as FX measures lose impact

    Korea’s financial authorities appear to be running out of options to stem the continued weakening of the won, with analysts on Friday saying a benchmark rate hike is effectively the strongest tool left for policymakers. Despite repeated verbal warnings from authorities and a rare joint inspection of banks’ currency operations, the won has remained under pressure against the U.S. dollar, prompting market participants to look beyond conventional intervention measures. In recent weeks, the won-dollar exchange rate has hovered around the 1,500 level, putting the local currency at its weakest point since 2009 during the global financial crisis. Last Monday, the Ministry of Finance and Economy and the Bank of Korea issued a rare joint warning that they would respond firmly to excessive volatility and one-sided market moves. At the time, the currency opened at 1,555.2 won per dollar — its weakest level in 17 years and three months — before recovering to close onshore trading at 1,535 won, an improvement of 4.1 won from the previous session following the verbal intervention. However, it

    2 MIN READBy Lee Hyo-jin
    Rate hike seen as strongest tool to support won as FX measures lose impact
  • Economy

    Fraudulent ChatGPT Pro charges spark alarm over unauthorized use of stolen card data

    2 MIN READBy Lee Hyo-jin
    Fraudulent ChatGPT Pro charges spark alarm over unauthorized use of stolen card data
  • Others

    Foreign investors return to KOSPI buying, powering rally above 8,000

    3 MIN READBy Jun Ji-hye
    Foreign investors return to KOSPI buying, powering rally above 8,000
  • Policy

    5 nations sign AI alliance pact to shape global tech rules

    2 MIN READBy Jhoo Dong-chan
    5 nations sign AI alliance pact to shape global tech rules
  • Economy

    Korean won gains on renewed hope of U.S.-Iran peace deal, foreign net buying

    1 MIN READBy Yonhap
    Korean won gains on renewed hope of U.S.-Iran peace deal, foreign net buying
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Economy

Weaker won poses inflation risks, FX market imbalances remain concern: BOK board member

The central bank's monetary policy board is concerned about the inflationary impact of the weakening Korean won and is maintaining close monitoring of market conditions, a board member said Wednesday. Kim Jong-hwa, one of the six members of the Bank of Korea (BOK)'s monetary policy board excluding Gov. Rhee Chang-yong, made the remarks during a meeting with reporters in Seoul. "We are carefully assessing and closely monitoring how the won-dollar exchange rate could affect inflation," Kim said. "Price stability is the most important objective of monetary policy." Government data showed that consumer prices rose 2.4 percent on-year in November, staying in the mid-2 percent range for the second straight month. The price growth came as the Korean won has stayed well below the psychologically important level of 1,450 won per U.S. dollar in recent weeks, due mainly to increased U.S. stock investment by local individuals and the National Pension Service (NPS), as well as offshore investors' profit-taking following strong market gains here. Kim noted that core inflation remains stable and domesti

Dec 10, 2025By Yonhap
Weaker won poses inflation risks, FX market imbalances remain concern: BOK board member
Economy

Worst over for Korean corporates: S&P

Korean companies will face tight credit conditions in 2026, but the worst of the current downturn appears to be behind them, S&P Global Ratings said Wednesday. The credit appraiser forecast that Korea's GDP growth will recover from 1.1 percent in 2025 to 2.3 percent in 2026, driven by a rebound in semiconductor exports and fiscal support. Greater clarity in policy direction and somewhat eased tariff burdens were seen as positive factors, though ongoing shifts in U.S. policy and lingering tariff issues will continue to pose challenges. "Although overall performance this year has been quite weak and challenging, we are seeing signs of a rebound in the second half," Park Jun-hong, credit analyst at S&P Global Ratings, said during a press meeting co-hosted with Nice Credit on Wednesday. "In that sense, I believe we have passed through the worst period." Nice Credit projected total revenue across 14 major industries will rise 5 percent next year to 1,642 trillion won ($1.15 trillion), up from 1,564 trillion won in 2024. Still, performance will remain uneven. Semiconductor and shipbuilding sect

Dec 10, 2025By Lee Yeon-woo
Worst over for Korean corporates: S&P
Economy

Household loan growth slows down in November amid tight lending rules

Household loans extended by Korean banks grew at a slower pace in November amid tightened lending regulations aimed at cooling the overheated property market in the capital region, central bank data showed Wednesday. Banks' outstanding household loans stood at 1,175.6 trillion won ($799.62 billion) as of end-November, up 1.9 trillion won from a month earlier, according to the Bank of Korea (BOK). The growth slowed from the 3.5 trillion-won increase tallied in the previous month. Home-backed loans rose 700 billion won on-month to 935.5 trillion won, decelerating from a 2 trillion-won gain in October. It marked the slowest growth since March 2023. Unsecured and other types of household loans climbed 1.2 trillion won to 239.2 trillion won in November, following a 1.4 trillion won gain a month earlier. "Mortgage loans grew at a slower clip despite the increase in housing transactions prior to the Oct. 15 measures, as banks continued to tighten household lending and demand for jeonse loans declined," the BOK said in a released statement. Under the tightened rules announced in mid-October, the g

Dec 10, 2025By Yonhap
Household loan growth slows down in November amid tight lending rules
Economy

ADB ups 2025 growth forecast for Korea to 0.9% on consumption recovery, tariff deal

The Asian Development Bank (ADB) has revised up its growth outlook for Korea this year to 0.9 percent following the country's stimulus packages to boost consumption and tariff deal with the United States, Seoul's finance ministry said Wednesday. The figure marks a 0.1 percentage point increase from the ADB's previous forecast made in September. The ADB also raised Korea's growth outlook for next year by 0.1 percentage point to 1.7 percent, according to the Ministry of Economy and Finance. The revised outlooks broadly align with forecasts from other major institutions. The Organization for Economic Cooperation and Development (OECD) has forecast 1 percent growth for this year and 2.1 percent for 2026. The Bank of Korea recently lifted its growth forecast for the country to 1 percent for 2025 and 1.8 percent next year. The ministry said the ADB made the revision considering the recent recovery in domestic consumption led by the government's economic stimulus packages and eased uncertainties surrounding exports on the Korea-U.S. trade deal and robust semiconductor demand. In late October, Se

Dec 10, 2025By Yonhap
ADB ups 2025 growth forecast for Korea to 0.9% on consumption recovery, tariff deal
Economy

Korea adds 225,000 jobs in Nov.; youth employment falls again: data

Korea added more than 220,000 jobs in November, continuing an upward trend in employment this year, but youth employment declined, government data showed Wednesday. The number of employed people stood at 29.05 million last month, up 225,000 from a year earlier, according to the data compiled by the Ministry of Data and Statistics. The increase underscores a continued upward trend in employment throughout this year following a brief decline last December, when the country recorded a net loss of 52,000 jobs. The labor market has shown steady recovery this year, adding 245,000 jobs in May before moderating to 183,000 in June and then jumping to 312,000 in September. In October, the country added 193,000 jobs. However, employment in the manufacturing and construction sectors continued to fall, and youth employment posted its 19th consecutive month of on-year drop in November, indicating ongoing struggles for younger job seekers. The manufacturing sector, considered the backbone of the Korean economy, shed 41,000 jobs from a year earlier, extending its downturn to a 17th consecutive month. The

Dec 10, 2025By Yonhap
Korea adds 225,000 jobs in Nov.; youth employment falls again: data
Economy

K-food exports to reach record high this year: customs agency

Total exports of Korean food products are widely expected to reach an all-time annual high this year, the customs agency said Tuesday, pledging additional support to further boost exports amid the growing global popularity of Korean culture. Total exports of Korean food products through November stood at $10.4 billion, up 7 percent from the same period last year, according to data from the Korea Customs Service. Aggregate exports of food products for the entire year are "certain" to surpass last year's total of $10.7 billion, which marked the highest on record, the agency added. By category, processed foods accounted for the largest share of 60.8 percent of total exports, followed by fisheries goods at 27.5 percent. Instant ramyeon noodles and dried seaweed products, also known in Korean as "gim," were particularly popular, with exports growing 21.4 percent and 13.3 percent on-year, respectively. In a bid to support local food exporters, the customs agency said it plans to introduce new HS Codes, or standardized category codes for traded products, for popular food items, such as ramyeon,

Dec 9, 2025By Yonhap
K-food exports to reach record high this year: customs agency
Economy

Korea's potential growth rate could fall to 0% range by 2040s: BOK chief

Bank of Korea (BOK) Gov. Rhee Chang-yong warned Tuesday that Korea's potential growth rate could fall to the zero percent range by the 2040s, stressing the need to efficiently allocate financial resources to boost the growth potential. Rhee made the remarks in a speech at a BOK symposium co-hosted with the Korean Finance Association in Seoul. "The country's potential growth rate was around 5 percent in the early 2000s but has recently dropped to below 2 percent. If the current trend continues, it could fall to the zero percent range by the 2040s," Rhee said. "It has largely been driven by low birthrates and rapid population aging, which have reduced the working-age population, while corporate investment and innovation to enhance productivity have not been sufficient to offset these trends," he added. Rhee also pointed to "inefficient" allocation of resources, which, he said, has prevented capital from flowing into high-productivity sectors. "The role of finance is more important than ever, as finance serves as essential infrastructure that reallocates limited resources to the most efficie

Dec 9, 2025By Yonhap
Korea's potential growth rate could fall to 0% range by 2040s: BOK chief
Economy

Gov't mulls issuing foreign currency bonds through NPS

The Ministry of Health and Welfare is reviewing the potential issuance of foreign currency bonds through the National Pension Service (NPS) and, if necessary, considering a legal amendment to facilitate the issuance, government officials said Tuesday. The move is in line with a key objective of the four-way consultative body composed of the Ministry of Health and Welfare, the NPS, the Ministry of Economy and Finance and the Bank of Korea (BOK). Launched on Nov. 24, the body aims to enhance coordination on fiscal, monetary and overseas investment policies, in addressing concerns that the NPS’ overseas investments, estimated at more than 580 trillion won ($395 billion), may be contributing to capital outflow. The Korean currency persistently remains at a worrisome level of more than 1,400 won per dollar. Under the circumstances, the government officials said the Division of National Pension Finance under the Bureau of Pension Policy has begun a full-scale review of the need and validity of issuing foreign currency bonds for the NPS. “If diversifying foreign currency funding is deemed ne

Dec 9, 2025By Yi Whan-woo
Gov't mulls issuing foreign currency bonds through NPS
Economy

Gov't allocates 75% of next year's state budget for first half of the year

The finance ministry said Tuesday it will frontload 75 percent of next year's expenditure budget in the first half in a move to spur innovation and support economic recovery. The Cabinet approved a plan to execute 468.3 trillion won ($318.26 billion) out of the 624.8 trillion won annual spending in the January-June period, according to the Ministry of Economy and Finance. The expenditure covers the general and special accounts and excludes government funds. The spending will focus on supporting a technology-driven "ultra-innovation" economy, strengthening the social safety framework, enhancing public safety and advancing diplomacy and security that prioritize national interest, the ministry added. Since 2023, the government has maintained a first-half allocation ratio of 75 percent.

Dec 9, 2025By Yonhap
Gov't allocates 75% of next year's state budget for first half of the year
Economy

High rental costs push young adults into substandard housing

Kim, a 31-year-old office worker in Seoul, says she recently moved into a goshiwon near her workplace because she could not keep up with rising studio apartment rents. Goshiwon are dormitory-style accommodations often used by students or low-wage workers who need minimal living space at low cost. They often have shared kitchen and bathroom facilities, rooms are small, and some lack basic amenities such as windows. Kim lived in a goshiwon when she first moved to the capital from her hometown of Gumi, North Gyeongsang Province, in 2017, but later moved to an officetel, a kind of studio or one-room apartment. “I know that goshiwon are far less convenient than officetel, but I really could not keep up with the growing monthly rent for such accommodations,” Kim said. “Going back to a goshiwon was the only option I had,” she added. Kim represents a growing number of Korean young adults increasingly pushed into substandard housing in the Seoul metropolitan area, according to data jointly compiled by the Ministry of Land, Infrastructure and Transport and the ministry-funded Korea Research

Dec 9, 2025By Yi Whan-woo
High rental costs push young adults into substandard housing
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