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News-based economic sentiment hits 4-year high on optimism over US tariff deal

Public sentiment toward the economy, as measured through economic news reports, has climbed to its most positive level in more than four years, according to the Bank of Korea (BOK) Tuesday. The improvement is largely attributed to optimism surrounding the recent Korea-U.S. summit held during the Asia-Pacific Economic Cooperation (APEC) meetings, where the two nations finalized a tariff agreement. Data from the central bank showed that the news sentiment index (NSI) reached 142.62 as of Friday, the highest level since July 29, 2021, when it stood at 125.25. The index is produced by analyzing sample sentences from economic news articles, which are classified through machine learning as positive, negative or neutral. It is calculated based on the difference between the number of positive and negative sentences, with a score above 100 indicating that overall economic sentiment is more optimistic than the historical average. The index plunged to 77.08 on Dec. 10 last year following former President Yoon Suk Yeol’s martial law fiasco, but has gradually rebounded since then. It approached the 1

Nov 4, 2025By Jun Ji-hye
News-based economic sentiment hits 4-year high on optimism over US tariff deal
Economy

KDI report warns productivity slowdown could amplify capital outflow

A slowdown in Korea's production output could lead to a rise in the outflow of domestic capital, ultimately amplifying the decline in the country's real gross domestic product (GDP), a key gauge of economic growth, a report by the state-run economic think tank said Tuesday. In its latest economic review, the Korea Development Institute (KDI) made the assessment, emphasizing the need for structural reforms aimed at boosting productivity. Since 2000, labor input growth has gradually slowed, but the rate of productivity growth has decelerated much more sharply, leading to a fall in capital profitability, a key determinant in investment decisions, the report said. According to KDI, the rate of return on domestic investment has fallen rapidly, dropping below that of overseas investment since the mid-2000s. As a result, the ratio of net overseas investment to national income rose sixfold, from an average of 0.7 percent between 2000 and 2008 to 4.1 percent between 2015 and 2024. According to KDI's macroeconomic simulation, a 0.1 percent decline in productivity results in 1.5 times of contraction

Nov 4, 2025By Yonhap
KDI report warns productivity slowdown could amplify capital outflow
Others

KOSPI boom drives sharp rise in trading accounts

Korea’s stock market rally, marked by a 76 percent surge in the benchmark KOSPI this year, has driven a sharp increase in active stock trading accounts, data from the Korea Financial Investment Association showed Tuesday. As of Oct. 31, the number of active stock trading accounts stood at 95.33 million, up 8.76 million from 86.57 million at the end of last year. Unlike simple account openings, active accounts refer to those actually used for trading, defined as brokerage or investment savings accounts with deposits exceeding 100,000 won ($69) and at least one transaction in the past six months. Since inactive accounts are excluded, the figure reflects genuine investor participation. The total number of active stock trading accounts surpasses Korea’s population of 51.75 million by more than 80 percent, indicating an average of around two trading accounts per person. The surge in stock trading accounts appears to reflect rising optimism over President Lee Jae Myung’s campaign pledge to usher in the “KOSPI 5,000 era,” as the index continues to reach new record highs. The KOSPI clim

Nov 4, 2025By Jun Ji-hye
KOSPI boom drives sharp rise in trading accounts
Economy

Consumer prices rise 2.4% in October, fastest pace in 15 months

Korea's consumer prices grew at the fastest pace in over a year in October, driven by higher costs for personal services, including travel, and food, government data showed Tuesday. Consumer prices, a key gauge of inflation, increased 2.4 percent from a year earlier last month, according to the data from the Ministry of Data and Statistics. It marks the largest on-year increase since July 2024, when inflation climbed 2.6 percent. In 2025, inflation had remained above the Bank of Korea's 2 percent target for four consecutive months through April before slowing to 1.9 percent in May. It then climbed again, staying above 2 percent in both June and July before briefly slowing to 1.7 percent in August and again climbing over 2 percent in September. The ministry attributed last month's increase mainly to a sharp rise in personal services, which include overseas group travel, lodging and beauty services but excludes dining out expenses. Prices of such services rose 3.6 percent, contributing 0.72 percentage point to overall inflation. "The increase largely reflects higher travel demand during the

Nov 4, 2025By Yonhap
Consumer prices rise 2.4% in October, fastest pace in 15 months
Tech & Science

Why Korean STEM talent continues to move abroad

The importance of STEM talent continues to grow, as it drives a country's sustainable economic growth by fostering innovation and increasing productivity. However, according to research from the Bank of Korea (BOK) released Monday, many top talents in Korea tend to move abroad in search of better research environments and career opportunities — unless they have already chosen to attend medical school after high school. While Korea's science, technology, engineering and mathematics workforces have steadily expanded in size over the past several decades, the central bank noted that structural constraints within the country have hindered them from fully realizing their potential. As of 2022, Korea's research and development workforce reached approximately 170 researchers per 10,000 people — one of the highest ratios among major countries. "Satisfaction with job conditions and treatment among STEM professionals in Korea remains relatively low. Moreover, the ecosystem and investment base for technology startups — where such talent could expect higher economic rewards — are still under

Nov 4, 2025By Lee Yeon-woo
Why Korean STEM talent continues to move abroad
Others

National pension fund posts decent return through August on stock rally

Korea's state pension fund said Monday that it has logged a decent investment return in the first eight months of the year, driven by solid profits from investments in stocks amid a rally. The National Pension Service (NPS) posted an 8.22 percent return through August, higher than the three-year annual average return of 6.98 percent. In 2014, the pension fund racked up a 15.32 percent return on its investments in 2024, the highest mark since 2000. The NPS attributed the robust performance to a rally in the local stock market. The fund enjoyed a 36.4 percent return from investments in local stocks, and an 8.6 percent gain from overseas stocks. But its investments in bonds and alternative assets remained weak, according to the NPS. As of end-June, it held 1,269.1 trillion won ($888 billion) in assets, around 50 percent of which have been invested in stocks.

Nov 3, 2025By Yonhap
National pension fund posts decent return through August on stock rally
Economy

Seoul stocks soar to record high, breaching 4,200 mark for 1st time

Korean shares surged nearly 2.8 percent Monday to again set an all-time high, led by sharp gains in big-cap chip and defense shares. The local currency lost ground against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) skyrocketed 114.37 points, or 2.78 percent, to 4,221.87. It marked the first time in history the KOSPI surpassed the 4,200 mark. The achievement was made just a session after the index breached the 4,100 mark for the first time Friday. Trade volume was heavy at 468 million shares worth 22.5 trillion won (US$15.7 billion), with losers outnumbering winners 611 to 288. Retail investors went on a buying spree, net purchasing 651.2 billion won worth of local shares, while institutions bought 185.4 billion won. Foreign investors, however, unloaded a net 795 billion won in apparent profit-taking. "The domestic stock market continued to see positive momentum following the Asia-Pacific Economic Cooperation (APEC) gathering last week," Lee Kyoung-min, an analyst at Daishin Securities, said. "In particular, Nvidia's announcement on Friday to supply up to 260,0

Nov 3, 2025By Yonhap
Seoul stocks soar to record high, breaching 4,200 mark for 1st time
Others

K-pop stocks rally as Xi's APEC visit fuels optimism for Korean cultural exports to China

Entertainment stocks rose sharply on expectations that China may lift its ban on Korean cultural content following Chinese President Xi Jinping’s visit to Korea to attend the Asia-Pacific Economic Cooperation (APEC) meetings held in Gyeongju last week, securities analysts said Monday. Optimism increased after Park Jin-young, founder of K-pop powerhouse JYP Entertainment and co-chair of the Presidential Committee on Popular Culture Exchange, met with the Chinese leader during the state dinner for the Korea-China summit on Saturday, where Xi reportedly responded positively to the idea of Korean artists performing in Beijing. JYP Entertainment closed at 85,000 won ($60), up 5.07 percent from the previous session. Shares of other major entertainment firms also advanced, with SM Entertainment rising 1.26 percent and HYBE gaining 0.44 percent. The KOSPI rose 114.37 points, or 2.78 percent, to close at 4,221.87. The rally was driven by growing expectations for the resumption of cultural exchanges between Seoul and Beijing and, potentially, an end to Beijing’s ban on Korean cultural content,

Nov 3, 2025By Jun Ji-hye
K-pop stocks rally as Xi's APEC visit fuels optimism for Korean cultural exports to China
Economy

Korean, Chinese central banks sign renewed currency swap deal

The central banks of Korea and China have renewed their currency swap agreement for another five years, the Bank of Korea (BOK) said Monday. Under the agreement signed by the BOK and the People's Bank of China, the won-yuan swap line with a maximum value of 70 trillion won ($49.03 billion) will be effective from Nov. 1, 2025, through Oct. 31, 2030, and can be extended by mutual consent. Its size remains the same as the previous agreement. "The renewal will promote bilateral trade between the two countries, maintain regional financial stability, and further enhance financial and monetary cooperation between the two central banks," the BOK said in a release. On Saturday, Seoul and Beijing signed a memorandum of understanding (MOU) on the swap agreement, along with six other MOUs, on the sidelines of a bilateral summit between President Lee Jae Myung and Chinese President Xi Jinping in the southeastern city of Gyeongju, North Gyeongsang Province.

Nov 3, 2025By Yonhap
Korean, Chinese central banks sign renewed currency swap deal
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