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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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CEO & Publisher: Oh Young-jinDigital News Email: webmaster@koreatimes.co.krTel: 02-724-2114Online newspaper registration No: 서울,아52844Date of registration: 2020.02.05Masthead: The Korea TimesCopyright © koreatimes.co.kr. All rights reserved.

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Economy

AI leaders Naver, Kakao struggle despite KOSPI's record-breaking rally

Naver and Kakao, once hailed as the country’s flagship IT blue chips and leading artificial intelligence (AI) players, have largely failed to join the recent KOSPI rally, even as the benchmark index has continued to climb and fuel optimism it could hit 5,000 points. According to the Korea Exchange Monday, Kakao’s shares fell 4.7 percent from the start of 2026 through last Friday, while Naver posted a gain of just over 1 percent, sharply underperforming compared to the broader market. KOSPI closed above the 4,800 level on Friday to set fresh record highs. Data from NH Investment and Securities showed that nearly 90 percent of Kakao investors are currently in the red, with an average return of minus 29.57 percent. Naver is little better off, with 75.3 percent of its investors sitting on losses and an average return of minus 9.38 percent. Kakao’s stock hit an all-time high of 173,000 won ($117) on June 24, 2021, during the market surge at the height of the COVID-19 pandemic, but has trended downward ever since. Naver, meanwhile, surged to around 300,000 won last June following the lau

Jan 19, 2026By Jun Ji-hye
AI leaders Naver, Kakao struggle despite KOSPI's record-breaking rally
Economy

Finance chief calls for 'results-driven' approach to economic management

Finance Minister Koo Yun-cheol on Monday emphasized a "results-driven" approach to economic management, saying the government must work to achieve concrete results in each policy goal for this year. Koo made the remarks while presiding over an expanded executive meeting that brought together senior officials from the Ministry of Economy and Finance. "Koo specifically stressed a 'results-driven approach to economic management' during the meeting," the ministry said, noting that this year's priorities are to achieve the so-called super-innovation economy and advance the transformation based on artificial intelligence (AI). He instructed officials not to pursue all areas uniformly but to set clear, specific goals and concentrate policy resources on achieving each target. Noting recent developments in inflation and foreign exchange rates, Koo stressed that stabilizing the cost of living is a top priority and called on all relevant ministries to coordinate closely and manage the situation rigorously.

Jan 19, 2026By Yonhap
Finance chief calls for 'results-driven' approach to economic management
Economy

Young Koreans face double strain from longer job searches, rising housing costs

Longer job searches and rising housing costs are intensifying economic pressure on young Koreans amid the country's structural challenges and sluggish growth, a central bank report said Monday. According to a report on youth economic conditions released by the Bank of Korea (BOK), many young job seekers are experiencing prolonged job searches early in their careers as companies increasingly favor experienced workers and expand rolling recruitment, rather than the traditional large, scheduled recruiting, amid sluggish economic growth. Those who remain unemployed for one year have a 66.1 percent chance of securing a regular job five years later, but the probability drops to 56.2 percent if unemployment lasts three years. Each additional year without a job was estimated to reduce current real wages by 6.7 percent due to a lasting "scarring effect," the report said. The situation mirrors Japan's so-called employment ice age generation or lost generation, which entered the labor market during the country's prolonged economic stagnation in the 1990s and early 2000s, the BOK noted. Rising housin

Jan 19, 2026By Yonhap
Young Koreans face double strain from longer job searches, rising housing costs
Policy

Banks likely to loosen lending criteria in Q1: BOK survey

Banks in Korea are expected to slightly ease lending standards in the first quarter amid authorities' continued efforts to rein in household lending, a central bank survey showed Monday. According to a Bank of Korea (BOK) survey of 18 commercial lenders, the index measuring banks' lending attitudes stood at 8 for the January-March period, up sharply from minus 21 in the fourth quarter of 2025. A reading below zero indicates that more lenders plan to tighten, rather than ease, credit standards. The first-quarter figure marked the first time the index has registered a reading above zero since the first quarter of 2025. By sector, the index for home mortgage lending came in at 6 for the first quarter, compared with minus 44 in the previous quarter. The indexes for loans to large companies and small- and mid-sized enterprises (SMEs) stood at 6 and 11, respectively. "Demand for housing-related loans is expected to rise slightly, driven by home purchases and demand for lease financing," a BOK official said. "For corporate loans, banks are likely to maintain an accommodative lending stance, though

Jan 19, 2026By Yonhap
Banks likely to loosen lending criteria in Q1: BOK survey
Economy

Stocks sharply up late Monday morning, set for 12th winning day

Korean stocks were trading sharply higher late Monday morning, on pace to extend their winning streak to a 12th consecutive session. The benchmark Korea Composite Stock Price Index (KOSPI) rose 45.78 points, or 0.95 percent, to 4,886.52 as of 11:20 a.m. After choppy trading, the KOSPI gathered ground in the late morning hours, boosted by gains from auto, shipbuilding and semiconductors. On Friday (local time), major U.S. stock indexes ended lower, as investors reacted to fourth-quarter earnings results from U.S. companies. The S&P500 and the tech-heavy Nasdaq both slid 0.06 percent. Investors are also on edge over renewed trade tensions, following U.S. President Donald Trump's threat to impose an additional 10 percent tariff on eight European countries that have opposed his plans to acquire Greenland. In Seoul, large-cap shares were trading mixed. Market top-cap Samsung Electronics rose 0.13 percent, while its chipmaking rival SK hynix added 1.98 percent. Auto shares gathered ground, with top car market Hyundai Motor jumping 12.59 percent and its sister Kia advancing 6.68 percent. In contras

Jan 19, 2026By Yonhap
Stocks sharply up late Monday morning, set for 12th winning day
Economy

Korea, China to hold 13th round of FTA follow-up talks on service, investment

Korea and China are set to hold a fresh round of follow-up negotiations on service and investment under their bilateral free trade agreement (FTA), Seoul's trade ministry said Monday. Trade delegations from the two sides will hold the 13th round of follow-up negotiations throughout this week in Beijing, aiming to expand the countries' FTA to include service and investment, according to the Ministry of Trade, Industry and Resources. Seoul and Beijing implemented their bilateral FTA in December 2015, removing major tariffs on products. The countries have held 12 follow-up meetings since 2018 to expand the scope of the bilateral trade pact to investment and service sectors. Earlier this month, President Lee Jae Myung and Chinese President Xi Jinping agreed to work to make progress in trade negotiations within this year during their bilateral summit in Beijing, according to the ministry.

Jan 19, 2026By Yonhap
Korea, China to hold 13th round of FTA follow-up talks on service, investment
Policy

Commercial lenders, financial entities rush to counter weakening won

Financial authorities are strengthening coordinated efforts with banks, insurers and brokerages to prevent the Korean currency from weakening to 1,500 won relative to the U.S. dollar, part of a shift away from monitoring to supervisory intervention of both retail and corporate dollar demands, market watchers said Sunday. Financial service providers are instructed to curb dollar-focused marketing and incentivize dollar-to-won conversion, reflecting the belief that private-sector dollar hoarding is a significant issue driving the won's weakness. Whether this pressure will slow the won’s depreciation will become clearer in the weeks ahead. Skepticism lingers that financial institutions are able to reorient their business strategies, especially when factoring in currency stability considerations at the expense of near-term margins. According to financial market sources, the Financial Supervisory Service (FSS) and Bank of Korea (BOK) have had several meetings with financial institutions recently to discuss the won's sustained depreciation. The currency weakening is driven in part, they say,

Jan 18, 2026By Lee Kyung-min
Commercial lenders, financial entities rush to counter weakening won
Others

Banks' dealing rooms become key marketing tool as KOSPI nears historic 5,000

Major commercial banks dealing rooms are becoming a key marketing tool as the benchmark KOSPI nears an unprecedented 5,000 points, according to industry officials, Sunday. The dealing rooms are increasingly in the media spotlight as images capture the closing figures of the benchmark bourse, which has been on a winning streak since the start of 2026. The upward trend has been especially notable as the index climbs step by step through each 100-point mark, hitting record closing highs along the way. Against this backdrop, Korea’s four largest commercial banks — KB Kookmin, Shinhan, Hana and Woori — are investing billions of won to renovate their dealing rooms in their Seoul headquarters. They are also carefully selecting in-house staff to serve as models in front of electronic display boards. “A KOSPI 5,000 era will be a historic moment that will be remembered in history,” a bank PR official said. He went on to explain that promoting the dealing room is a “highly cost-effective marketing strategy,” adding, “When a bank’s logo appears alongside the KOSPI close, it naturally

Jan 18, 2026By Yi Whan-woo
Banks' dealing rooms become key marketing tool as KOSPI nears historic 5,000
Economy

K-food exports rely heavily on US, China, Japan

Korea's exports of agricultural and food products remain heavily concentrated in the United States, China and Japan, data showed Sunday, highlighting the need to diversify markets to sustain growth. Outbound shipments of farm produce and food items reached a record $10.2 billion in 2025, with 45.6 percent going to the three largest markets of the U.S., China and Japan, according to data from the Korea Agro-Fisheries & Food Trade Corp. The U.S. ranked first with $1.8 billion in imports of Korean food products, accounting for 17.5 percent of Korea's total food exports, followed by China with a 15.4 percent share and Japan with 12.7 percent. Vietnam, Taiwan and Hong Kong rounded out the top six destinations, underscoring the dominance of Asian markets. But exports to the European Union, including Britain, totaled $773 million, or 7.5 percent of the total, while shipments to Middle Eastern countries, such as Saudi Arabia, Kuwait, the United Arab Emirates, Qatar and Oman, accounted for about 4 percent. In response, the government and the industry have stepped up efforts to develop new markets.

Jan 18, 2026By Yonhap
K-food exports rely heavily on US, China, Japan
Economy

Employment rate among youths falls for 1st time in 5 yrs in 2025: data

The employment rate for people in their 20s fell in 2025 for the first time in five years as a shrinking population and a weak job market weighed on hiring, data showed Sunday. The employment rate for people in their 20s stood at 60.2 percent last year, down 0.8 percentage point from a year earlier, according to data released by the Ministry of Data and Statistics. It was the first on-year decline since 2020, when hiring slumped amid the COVID-19 pandemic. The number of employed people in their 20s totaled 3.44 million last year, down 170,000 from a year earlier. The decline has continued for three straight years and has been accelerating, widening from a drop of 82,000 in 2023 to 124,000 in 2024. The population decline has been cited as a key factor as the number of people in this age group has fallen for five consecutive years since 2021. But employment in the age bracket declined at a steeper pace than the population decrease, suggesting broader weakness in the labor market. "In the past, many people found jobs in their 20s, but there is now a growing tendency for people to wait until

Jan 18, 2026By Yonhap
Employment rate among youths falls for 1st time in 5 yrs in 2025: data
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