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  • Economy

    Fed's hawkish hold strengthens case for BOK's hike in November

    The U.S. Federal Reserve's hawkish decision to hold interest rates steady has strengthened the case for the Bank of Korea (BOK) to raise its benchmark rate as early as next month, as stronger-than-expected growth and persistent inflation reinforce the need for further monetary tightening, analysts said Thursday. The Fed kept its benchmark interest rate unchanged at 3.75 to 4 percent on Wednesday (local time), but signaled that inflation remains elevated and reaffirmed its commitment to bringing inflation back to its 2 percent target. The decision has kept markets focused on the possibility of another Fed rate hike in December, raising the prospect that the BOK could pursue further tightening before its U.S. counterpart makes its next move. The BOK held its benchmark rate at 3 percent at its rate-setting meeting last Thursday, saying it needed more time to assess domestic and external economic conditions and the effects of two previous rate hikes. Recent economic data have strengthened the case for further tightening. Korea's real gross domestic product grew 1 percent in the third quarter

    2 MIN READBy Lee Hyo-jin
    Fed's hawkish hold strengthens case for BOK's hike in November
  • Economy

    Banks' household mortgage lending rates up for 5th month in Sept.

    1 MIN READBy Yonhap
    Banks' household mortgage lending rates up for 5th month in Sept.
  • Economy

    Korea to closely monitor impact of upcoming US midterm elections

    2 MIN READBy Yonhap
    Korea to closely monitor impact of upcoming US midterm elections
  • Policy

    Gov't to designate new housing zones for over 76,000 homes near Seoul

    1 MIN READBy Yonhap
    Gov't to designate new housing zones for over 76,000 homes near Seoul
  • Economy

    Seoul stocks down 3% late Thursday morning after weaker-than-expected Samsung earnings

    1 MIN READBy Yonhap
    Seoul stocks down 3% late Thursday morning after weaker-than-expected Samsung earnings
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Regional banks see profit decline despite holding firms’ record earnings

Regional financial groups posted record earnings last year, but worsening asset quality at their core banking units is a key risk undermining their profits and financial stability, market watchers said Friday. The holding companies’ figures came on the back of strong nonbank subsidiaries such as securities and capital firms, and the easing of real estate project financing provisions. However, their regional bank subsidiaries’ heavy exposure to small and medium-sized enterprises (SMEs) are leading to rising delinquencies. According to financial market data, BNK Financial, JB Financial and iM Financial saw their combined net profit surpass 1.96 trillion won ($1.3 billion) last year, up 21.5 percent from a year earlier. Their subsidiaries logged mixed and comparatively weak results. Of BNK Financial’s bank subsidiaries, Busan Bank posted 439.3 billion won in net profit, up 7 percent from a year earlier, but Kyongnam Bank saw their figure fall 5.6 percent to 292.8 billion won. Of JB Financial’s bank affiliates, Jeonbuk Bank recorded a net profit of 228.7 billion won, a 4.6 percent incr

Feb 20, 2026By Lee Kyung-min
Regional banks see profit decline despite holding firms’ record earnings
Policy

Can Korea and China tackle aging together?

HONG KONG — Korea and China have had a turbulent relationship in recent years as they compete across a range of high-tech industries. But the two countries now appear to be bonding over a shared challenge: their rapidly aging societies. The issue has featured on the agenda at meetings between Korean President Lee Jae Myung and Chinese President Xi Jinping dating back to last year, with the leaders pledging to work together to deal with the economic changes being brought by their nations’ low birthrates. In November, following a bilateral summit held on the sidelines of the Asia-Pacific Economic Cooperation summit, the two nations signed a cooperation agreement on the “silver economy,” with Xi highlighting the need for mutually beneficial outcomes. During his state visit to China in January, Lee also named the silver economy — existing and emerging sectors catering to the elderly population — as an area with “limitless collaboration opportunities,” despite the two countries’ competitive status in other areas of the global market. Analysts broadly agreed with that assessm

Feb 20, 2026By Lee Yeon-woo
Can Korea and China tackle aging together?
Others

Young professionals squeezed as AI reshapes white-collar job market

Employment among young professionals in South Korea is falling sharply as artificial intelligence (AI) spreads into professional fields, data shows. The contraction, appearing particularly pronounced among graduates in the humanities and social sciences, suggests that entry-level roles may be bearing the brunt of technological change. According to an analysis of microdata from the Ministry of Employment and Labor's Economically Active Population Survey, employment in the professional, scientific and technical services sector stood at 1.389 million last month, down 98,000 from a year earlier — the largest January decline since records began in 2013. The sector includes research and development as well as professional services such as law and accounting. The losses were heavily concentrated among workers in their 20s and early 30s. Employment among those aged 25 to 29 fell by 38,000 from a year earlier, while the number of workers aged 30 to 34 declined by 41,000. Workers aged 20 to 24 saw employment drop by 10,000, meaning younger cohorts accounted for nearly 90 percent of the overall

Feb 19, 2026By Hankookilbo
Young professionals squeezed as AI reshapes white-collar job market
Others

Salaried workers frustrated by higher income tax as tax bracket revision stalls

Park Min-soo, 40, an office worker, said his salary increased last year but somehow felt like he was left with less. “I did the calculating myself,” he said. “After income tax, monthly premiums for national pension, state-run health insurance and other deductions, the extra raise meant essentially nothing.” What bothers him more is that some people working part-time or in temporary jobs aren’t paying the income tax at all. “I heard on the news that about a third of the workers are not paying earned income tax at all. I understand that they are low income. They may say life is hard, but it is for everybody else, too. Not paying any? It’s just not right. I can’t shake the feeling that the system is punishing full-time workers while letting others off easy. It’s demoralizing.” Similarly, Choi Eun-jung, 45, said the tax brackets haven’t changed much over the past two decades. “Inflation eats up my wages, yet many salaried workers automatically are moved into higher tax brackets. It’s frustrating to think about what should be rightfully mine is taken from me only beca

Feb 19, 2026By Lee Kyung-min
Salaried workers frustrated by higher income tax as tax bracket revision stalls
Cryptocurrency

Investors weigh buying or selling bitcoin amid cooling momentum

Yang, a 39-year-old office worker living in Mapo District, Seoul, sold part of his bitcoin holdings last summer when prices surged, locking in profits. But as prices recently corrected, he began buying again in installments. “Whenever there’s news about interest rates or regulations, the market gets shaky, but I believe the long-term trend is upward. Whenever prices drop sharply, it actually feels like a buying opportunity,” she said. In contrast, another investor, Park, a 45-year-old office worker living in Guri, Gyeonggi Province, could not withstand a recent downturn and sold half of his holdings at a loss. “The market has become much more complicated than before, and the upward momentum seems weak. For the time being, I plan to increase my cash position and stay on the sidelines,” he said. The bitcoin market, which surged past the $120,000 mark in October last year, has cooled sharply, leaving investors weighing whether to step in at lower prices or cut their losses. On Korean crypto exchanges, bitcoin briefly climbed back above 100 million won ($69,000) during the Lunar New

Feb 19, 2026By Jun Ji-hye
Investors weigh buying or selling bitcoin amid cooling momentum
Others

Banks court parents with high-interest savings for children’s Lunar New Year cash

Commercial banks are beckoning parents of minors to manage their children’s sebae money — the cash gifts given during the Lunar New Year in return for bowing to their elders — through lucrative savings options, industry officials said Thursday. The companies promote products with high annual interest rates, ranging from 5 percent to 10 percent, well above the typical 4 percent or less for standard accounts. “These companies are expected to attract new customers at the right time,” an industry official said, noting that the Lunar New Year holiday just ended Wednesday. Among mainstream offline lenders, KB Kookmin Bank offers a savings account with a maximum annual interest rate of 10 percent. Preferential rates are applied based on the number of children 18 and under and also whether the household receives child allowances. The product was launched again in November 2025, after its initial debut in August of the same year. It was introduced to help address Korea’s low birthrate and quickly sold out with a limited issuance of 50,000 accounts. As for internet-only lenders, KakaoBank

Feb 19, 2026By Yi Whan-woo
Banks court parents with high-interest savings for children’s Lunar New Year cash
Economy

Seoul stocks jump 3% to top 5,600 milestone on chip rally

Korean stocks surpassed the 5,600-point mark for the first time ever Thursday, boosted by sharp gains in semiconductor and other blue-chip tech shares amid optimism about artificial intelligence (AI). The local currency fell against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) added 170.24 points, or 3.09 percent, to close at an all-time high of 5,677.25. The previous record high was set on Feb. 12, when the index closed at 5,522.27. Trade volume was heavy at 1.17 billion shares worth 28.59 trillion won ($19.76 billion), with winners outnumbering losers 666 to 231. After a three-day break for the Lunar New Year holiday, the index opened at a record high on Thursday and maintained its upward momentum on solid buying by institutional investors. Institutions scooped up a net 1.64 trillion won worth of shares, while foreign retail investors sold a net 918.03 billion won and 860.76 billion won worth of shares, respectively, for profit-taking. "Nvidia, Broadcom and other major U.S. AI firms are scheduled to present earnings starting next week and investor preference f

Feb 19, 2026By Yonhap
Seoul stocks jump 3% to top 5,600 milestone on chip rally
Economy

30-somethings account for half of 1st-time homebuyers in Seoul

Cho Sung-jin and his wife, a dual-income couple in their mid-30s, took out every available loan to buy their first home in Seoul last year when the city’s apartment prices soared 8.71 percent from the previous year. That growth was the highest since 2013. Still, the couple were not alone among their peers in their 30s rushing to buy homes in Seoul, betting that tighter government lending rules would not curb prices. “I would say 30-somethings had an edge over other age groups, as we had more career experience and correspondingly higher incomes than those in their 20s, while also qualifying for loans for newlyweds or parents of newborns, unlike those in their 40s or older,” Cho said, noting that he was eligible for both types of loans. Cho highlights a record share of Koreans in their 30s among all first-time homebuyers in Seoul last year, as shown in the Supreme Court’s online property ownership data. The properties include apartments, the most popular form of housing in Korea, as well as more affordable options such as villas and officetels. Those in their 30s made up nearly half

Feb 19, 2026By Yi Whan-woo
30-somethings account for half of 1st-time homebuyers in Seoul
Cryptocurrency

FSC, FSS criticized for missing Bithumb system flaw in 'ghost coin' case

Financial authorities are facing intensified scrutiny over their role in the recent erroneous bitcoin payout incident at Bithumb, after failing to detect critical flaws in the exchange’s internal systems, which were cited as a key cause of the case, lawmakers said Thursday. Data provided by Rep. Kang Min-guk of the main opposition People Power Party showed that the Financial Services Commission reviewed the exchange three times, once in 2022 and twice in 2025, while the Financial Supervisory Service (FSS) conducted three inspections of their own over the same period. Despite the repeated supervision, authorities failed to identify a key vulnerability — a system structure prone to input errors — that was blamed for the incident. Kang said that existing safeguards were insufficient to prevent a scenario in which a single employee could trigger large-scale coin transfers, and discrepancies between actual holdings and accounting records went undetected. “The episode is not merely a technical mishap but a case that lays bare deeper structural weaknesses in the virtual asset market, in

Feb 19, 2026By Jun Ji-hye
FSC, FSS criticized for missing Bithumb system flaw in 'ghost coin' case
Economy

KOTRA to expand overseas distribution channels for Korean consumer goods

The Korea Trade-Investment Promotion Agency (KOTRA) said Thursday it will expand its overseas distribution network to more than 330 channels this year as part of efforts to help boost the country's exports of consumer goods. KOTRA aims to partner with 336 distribution channels in 60 countries this year to help Korean companies enter major retail chains and boost their sales across different regions, according to its officials. Last year, KOTRA cooperated with 298 distribution channels in 50 countries. Under the initiative, KOTRA recently helped seven Korean companies open stores at Landers, a major retail warehouse club in the Philippines. A special section for Korean products has also been set up on Mercado Libre, the largest e-commerce platform in Latin America. KOTRA said it will also work to expand overseas marketing events for Korean products, such as the Korean Wave expos planned to be held in the United Arab Emirates in June and in Vietnam in September. In China and Mexico, the agency plans to hold K-lifestyle expos. Additionally, KOTRA has newly established support desks at 20 of it

Feb 19, 2026By Yonhap
KOTRA to expand overseas distribution channels for Korean consumer goods
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