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  • Cryptocurrency

    Korea Investors Service prepares to rate credit in digital finance

    Korea Investors Service (KIS) is developing new criteria to assess the credit risks of digital financial products as tokenized securities and stablecoins become more integrated into the mainstream financial system. The Moody's affiliate said Monday that digital financial products can carry risks that differ from those of conventional products, even when they have the same credit rating. "While automation and instant settlement can reduce costs, reliance on the platforms, smart contracts and on-chain settlement that enable them can also create new channels through which disruptions and losses spread," Chung Hyuk-jin, head of KIS' credit standards group, said at a media briefing. Chung said credit assessments of digital financial products should incorporate technological risks alongside traditional measures such as an issuer's repayment capacity, the credit quality of underlying assets, collateral and repayment priority. KIS groups those risks into four categories: platform risk, smart-contract risk, external risk and risks related to the representation of legal rights. Stablecoins have bec

    2 MIN READBy Lee Yeon-woo
    Korea Investors Service prepares to rate credit in digital finance
  • Others

    Middle-aged Koreans largely look to national pension for post-retirement safety net

    3 MIN READBy Jun Ji-hye
    Middle-aged Koreans largely look to national pension for post-retirement safety net
  • Policy

    Gov't plans 1.19 mil. public sale, rental homes amid housing price pressures

    1 MIN READBy Yonhap
    Gov't plans 1.19 mil. public sale, rental homes amid housing price pressures
  • Economy

    KOSPI regains 7,000 as Samsung Electronics shares surge on record chip exports

    1 MIN READBy Park Han-sol
    KOSPI regains 7,000 as Samsung Electronics shares surge on record chip exports
  • Policy

    BOK launches pilot program for 24-hour offshore won settlement

    1 MIN READBy Yonhap
    BOK launches pilot program for 24-hour offshore won settlement
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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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Cryptocurrency

Prediction markets boom as Korea grapples with legal gray zone

Wagers placed on an overseas platform over the outcome of Seoul's mayoral election reached $43.68 million in May — even though such betting is illegal in Korea. The case was hardly an isolated incident. Prediction market platforms, which usually operate using stablecoins, allow users to place bets on the outcomes of elections, wars, sporting events and virtually any other matter of public interest. Korea is increasingly part of that trend, with wagers now covering not only Korean politics but also its economy. On Polymarket, the world's largest prediction market platform, the most popular Korea-related wager as of Tuesday was over how high the iShares MSCI South Korea exchange traded-fund (ETF) would climb during the week of July 20. The contract closes Friday, with $18,067 already bet. Although it is difficult to determine how many Koreans use the platform, anecdotal accounts suggest that at least some have begun experimenting with it. One Korean user wrote on an online community that he had tried Polymarket while researching stablecoins and turned $70 into $170 in a single day. He de

Jul 21, 2026By Lee Yeon-woo
Prediction markets boom as Korea grapples with legal gray zone
Economy

Asset manager's rare warning reaffirms risks of single-stock leveraged ETFs

Bae Jae-kyu, CEO of Korea Investment Management, has issued a rare warning, urging investors to “pull out of” single-stock leveraged exchange-traded funds (ETFs) tied to Samsung Electronics and SK hynix before mounting losses deepen. The remarks, made in a now-deleted Facebook post on Monday evening, were highly unusual as they came from the head of an asset management company which had launched some of the very products he was cautioning against. “I regret having to say this as the CEO of an asset manager that operates single-stock leveraged ETFs,” he wrote. “With volatility in the underlying shares this high, losses can compound day after day. Even if the stock itself eventually returns to where it started, the ETF may never fully recover. No one anticipated volatility on this scale.” Leveraged ETFs are designed to deliver two or three times the daily return of an underlying asset, typically a broad market index such as the KOSPI or the S&P 500. Single-stock versions take that concept a step further, allowing investors to make amplified bets on the direction of an individu

Jul 21, 2026By Park Han-sol
Asset manager's rare warning reaffirms risks of single-stock leveraged ETFs
Economy

Korea to launch pilot offshore won settlement network in September

The Bank of Korea (BOK) plans to launch a pilot of its 24-hour offshore won settlement network in September, the central bank said Tuesday, in a move aimed at making the currency more widely used overseas. The pilot program will involve four major commercial banks — KB Kookmin, Shinhan, Hana and Woori — which are currently conducting tests with the central bank. The BOK said it expects to complete revisions to its payment and settlement regulations by August, ahead of the pilot launch. Full-scale operations are expected to begin in January. The network, officially named the Bank of Korea Won International Wire Network (BOK-WireInt), will operate 24 hours a day on business days, from 9 a.m. to 9 a.m. the following day, excluding weekends and public holidays. The system will allow foreign investors to settle Korean won transactions through accounts held at banks in their home countries during local business hours, rather than waiting for Korean banks to open. The BOK expects the new settlement network to improve foreign investors' access to Korea's won settlement infrastructure and supp

Jul 21, 2026By Lee Hyo-jin
Korea to launch pilot offshore won settlement network in September
Economy

FSS chief pledges swift, transparent disciplinary process against MBK over Homeplus management

The chief of Korea's financial watchdog Tuesday vowed to conduct a transparent and swift disciplinary process against MBK Partners over its management of Homeplus, the struggling retailer wholly owned by the private equity firm. "We are currently conducting disciplinary proceedings following an on-site inspection of MBK to investigate alleged violations of the Capital Markets Act," said Lee Chan-jin, governor of the Financial Supervisory Service (FSS), during a parliamentary session. "We will proceed with the procedures transparently and promptly regarding any violations of the law," he added. His remarks came after the FSS decided to impose a penalty on MBK earlier this month that includes a suspension of duties, citing improper business practices and violations of internal control obligations. The penalty must still be approved by the Financial Services Commission before it becomes final. MBK Partners acquired a 100 percent stake in Homeplus in 2015 from British retailer Tesco Plc. for 7.2 trillion won ($4.9 billion). Homeplus, however, has since struggled amid an industrywide downturn i

Jul 21, 2026By Yonhap
FSS chief pledges swift, transparent disciplinary process against MBK over Homeplus management
Economy

Korea's crude oil supply stable despite uncertainties: industry ministry

Korea's crude oil supply remains stable despite renewed tensions in the Middle East, the industry ministry said Tuesday, vowing to closely monitor major shipping routes in the region. "Korea has already secured crude oil equivalent to 110 percent of last year's levels for July and August, while the figure for September stands at 90 percent," the Ministry of Trade, Industry and Resources said in a release. The industry ministry added that six oil tankers bound for Korea have passed through the Strait of Hormuz since the United States and Iran signed a memorandum of understanding for peace in June, with three of them having already arrived in the country. "Through September, there are no significant concerns over the crude oil supply. We believe there will be no major disruptions even if traffic through the Red Sea is blocked," said Yang Gi-uk, a senior official at the ministry. Concerns have grown in the oil industry over possible disruptions in the Red Sea, a major alternative route to the Strait of Hormuz, after the Iran-backed Houthi rebels in Yemen vowed to impose a maritime blockade

Jul 21, 2026By Yonhap
Korea's crude oil supply stable despite uncertainties: industry ministry
Economy

Customs officer honored for busting $73 mil. illegal FX scheme

When Kim Min-hye, an official at the Busan Regional Customs' financial investigation division, was assigned to investigate a suspected illegal foreign exchange scheme involving cryptocurrency, she had little experience with digital assets. "The term stablecoin itself was unfamiliar to me, and I had never personally traded cryptocurrency. Understanding how cryptocurrency transactions worked was quite a challenge," Kim told The Korea Times in a written interview, Tuesday. Yet that challenge ultimately led to one of this year's largest foreign exchange crime busts at the Korea Customs Service. Kim was named customs officer of the month in June after uncovering an unregistered foreign exchange business that illegally transferred about 108 billion won ($73 million) using Tether (USDT), a U.S. dollar-pegged stablecoin, according to the customs agency. The monthly award is presented to officers recognized for outstanding achievements in customs administration and investigations. According to Kim, the suspect received USDT from an overseas accomplice and sold it through a domestic cryptocurrency

Jul 21, 2026By Lee Hyo-jin
Customs officer honored for busting $73 mil. illegal FX scheme
Economy

KRX activates buy-side sidecar for KOSPI on sharp rise

South Korea's bourse operator on Tuesday activated a buy-side sidecar for the benchmark Korea Composite Stock Price Index (KOSPI) as the stock index sharply rose, led by tech gains. Program trading for the KOSPI-listed shares was suspended for five minutes at 12:41 p.m., according to the Korea Exchange (KRX). After opening 0.58 percent higher, the KOSPI rose 267.04 points, or 4.18 percent, to 6,788.51 as of 12:43 p.m. A buy-side sidecar is triggered when the KOSPI 200 Futures index rises 5 percent or more for at least one minute.

Jul 21, 2026By Yonhap
KRX activates buy-side sidecar for KOSPI on sharp rise
Policy

Gov't to give more advantages to firms outside Seoul area in state contracts

Korea will give preferential treatment to companies based outside the Seoul metropolitan area in state contract bidding in an effort to promote balanced regional development, the finance ministry said Tuesday. The Ministry of Finance and Economy issued an advance legislative notice of revisions to the enforcement decree of the state contracts act to gather public opinion through the end of August, with the goal of implementing the revisions in November. "The revisions aim to strengthen support for companies based outside the Seoul metropolitan area to address regional disparities caused by the concentration in the capital region," the ministry said. Under the revisions, when bidders receive the same scores in price and capability evaluations, priority will be given first to companies based in regions with a population decline, followed by other areas located outside the Seoul metropolitan area. The amendments also raise the ceiling for sole-source contracts for research equipment used in government-funded research and development projects to 50 million won ($33,800) from the current 20 m

Jul 21, 2026By Yonhap
Gov't to give more advantages to firms outside Seoul area in state contracts
Economy

Seoul stocks erase early losses late Tuesday morning on bargain hunting

Seoul stocks erased earlier losses and were trading higher late Tuesday morning as investors went bargain hunting for technology stocks. The benchmark Korea Composite Stock Price Index (KOSPI) changed its trajectory, going up 149.39 points, or 2.29 percent, to 6,665.66, as of 11:25 a.m. Foreign and institutional investors lifted the index as they snatched up tech heavyweights. Overnight U.S. stocks closed lower as investors weighed the risk of renewed hostilities in the Middle East, with upcoming earnings reports from major tech companies later this week. The United States has completed more strikes against Iran, the U.S. Central Command said later Monday (local time), hours after President Donald Trump said Iran would pay for the deaths of three service members. Most market heavyweights were trading higher. Chip giant Samsung Electronics added 4.82 percent, while its industry rival SK hynix advanced 2.72 percent. Major financial firm KB Financial inched up 0.3 percent, defense giant Hanwha Aerospace moved up 2.63 percent, and portal operator Naver rose 3.17 percent. The Korean won was tradi

Jul 21, 2026By Yonhap
Seoul stocks erase early losses late Tuesday morning on bargain hunting
Economy

Is semiconductor stock rally shifting from Korea to China?

Korean stocks led the global semiconductor rally over the past year, but the momentum is shifting toward China as shares of the country's two biggest chipmakers pull back, analysts said Monday. The TIGER China Semiconductor FACTSET ETF (exchange-traded fund), which tracks large-cap Chinese semiconductor companies, gained 49 percent in the three months through Thursday, making it the best performer among three Korea-listed semiconductor ETFs managed by Mirae Asset Global Investments, according to the Korea Exchange. That compared with a 33.6 percent gain for the TIGER U.S. Philadelphia Semiconductor ETF and 19.9 percent for the Korea-focused TIGER Semiconductor ETF. The Korean fund remained the top performer over the past year, surging 253.3 percent. The China-focused fund rose 154.8 percent, while its U.S. counterpart gained 132.4 percent. Analysts said the shift toward China reflects fresh inflows as Korean semiconductor shares pause after a sharp rally. Funds have sharply flowed out of Samsung Electronics and SK hynix this month even as both companies continue to post record earnings. "

Jul 21, 2026By Lee Yeon-woo
Is semiconductor stock rally shifting from Korea to China?
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