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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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Economy

Borrowers face double whammy from tighter lending, higher rates

"I found a 1.1 billion won ($737,000) apartment I wanted to buy and planned to finance 450 million won with a mortgage. But my entire plan has fallen apart now that banks are suddenly tightening mortgage lending," one user wrote on a Naver real estate community. "I had planned to buy a home using my savings and a mortgage of up to 600 million won. But after KB Kookmin Bank cut its mortgage lending cap to 300 million won last week, I had no choice but to abandon the plan," another user wrote. Similar complaints have spread across online communities in recent days as major lenders tighten household lending, making it increasingly difficult for prospective homebuyers to secure mortgages. The country's five largest lenders — KB Kookmin, Shinhan, Hana, Woori and NH NongHyup — have begun tightening mortgage rules after approaching their annual household lending growth targets set by financial authorities. As of early July, the banks have already used about 80 percent of their annual lending capacity for this year. Last Wednesday, KB Kookmin Bank halved its mortgage lending cap for home purc

Jul 15, 2026By Lee Hyo-jin
Borrowers face double whammy from tighter lending, higher rates
Economy

KOSPI closes higher at 6,856.83 after wild swing, Kosdaq hits year low

The benchmark KOSPI staged a dramatic turnaround Tuesday, recovering from an intraday plunge of nearly 5 percent to close 0.73 percent higher as foreign and institutional investors bought battered semiconductor shares. The secondary Kosdaq, however, fell to its lowest close of the year. KOSPI ended at 6,856.83, according to the Korea Exchange. The index opened lower and briefly sank below 6,500 before bargain hunting erased its losses and pushed it back into positive territory. Retail investors sold a net 4.15 trillion won ($2.8 billion) of shares, while foreign and institutional investors purchased a net 951 billion won and 3.23 trillion won, respectively. SK hynix rose 3.69 percent to 1,913,000 won, while Samsung Electronics gained 3.34 percent to 263,000 won. "KOSPI has plunged 19.7 percent in just 14 trading sessions since the start of July, marking its steepest correction since October 2008, when it fell 23.1 percent during the global financial crisis," said Kiwoom Securities analyst Han Ji-young. "Given that even previous major crises unfolded over several months, the latest sell-off

Jul 14, 2026By Lee Yeon-woo
KOSPI closes higher at 6,856.83 after wild swing, Kosdaq hits year low
Economy

SK hynix ADRs to follow Seoul-listed shares as premium narrows

SK hynix's blockbuster Wall Street debut quickly delivered a lesson in how fast market swings can travel across the Pacific. The chipmaker's Seoul-listed shares plunged 15 percent on Monday after the initial enthusiasm surrounding its U.S. listing faded and investors grew more concerned that the artificial intelligence (AI) boom may be nearing a peak. Its American depositary receipts (ADRs) then fell about 9 percent, narrowing the premium over the Korean shares. The two securities should generally move in the same direction because they represent the same company, analysts said Tuesday. Even when their prices diverge, a widening gap typically attracts arbitrageurs, eventually pulling them back toward each other. "A 15.4 percent KRX [Korea Exchange] decline against a 9 percent ADR decline in the same underlying asset is an arbitrage dislocation, not two different fundamental views," said Mo Aziz, an independent analyst at Smartkarma, an investment intelligence platform. Still, differences in market structure mean the two securities will not trade in lockstep. Part of the gap reflects the s

Jul 14, 2026By Lee Yeon-woo
SK hynix ADRs to follow Seoul-listed shares as premium narrows
Economy

Korea eyes 3% growth in 2026 riding on AI chip boom

The government on Tuesday raised Korea's real gross domestic product (GDP) growth forecast for 2026 to 3 percent, up from the January projection of 2 percent, citing robust semiconductor exports driven by strong global demand for artificial intelligence (AI) chips. To keep the growth momentum going, it plans to focus on developing semiconductor-centered industries and creating relevant jobs for young people. The revised forecast was unveiled as the government announced its economic strategy for the second half of the year. "The economy is expected to grow 3 percent this year as strong AI-driven demand for semiconductors continues to support exports, while downside risks stemming from the Middle East conflict will be cushioned by the supplementary budget and other policy measures," the Ministry of Finance and Economy said. The government's projection is more optimistic than those of major international organizations. Earlier this month, both the OECD and the International Monetary Fund released their forecasts that Korea's economy would expand by 2.6 percent this year. The ministry also pro

Jul 14, 2026By Lee Hyo-jin
Korea eyes 3% growth in 2026 riding on AI chip boom
Economy

Korea's H1 ICT exports hit fresh high on AI boom: data

Korea's exports of information and communication technology (ICT) products in the first half hit a fresh six-month high, boosted by the artificial intelligence (AI) boom, government data showed Tuesday. Outbound shipments of ICT products reached $253.9 billion in the January-June period, up 120.5 percent from a year earlier, the Ministry of Science and ICT said in a press release. ICT imports rose 31.3 percent on-year to $93.2 billion, resulting in a trade surplus of $160.7 billion, the data showed. By product, semiconductor exports increased 162.5 percent on-year to $192.4 billion, helped by strong demand for AI chips and high memory prices. Exports of computers and communications equipment jumped 233.8 percent from a year earlier, topping the $20 billion mark for the first time for the six-month period. This was also due to increased shipments of solid state drives (SSD) used in AI infrastructure, the ministry said. Mobile phone exports rose 38 percent on-year, and display exports inched up 3.8 percent during the cited period, according to the data. By destination, combined shipments to

Jul 14, 2026By Yonhap
Korea's H1 ICT exports hit fresh high on AI boom: data
Economy

Seoul shares sharply down late Tuesday morning on retail selling

Seoul shares extended losses late Tuesday morning, led by falls in semiconductors and other market heavyweights, amid investor worries over the renewed tensions in the Middle East and uncertainty over artificial intelligence (AI) sectors. After opening 0.56 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) extended losses, trading 139.03 points, or 2.04 percent, higher at 6,667.90 as of 11:20 a.m. The decline comes after the KOSPI nose-dived 9 percent in the previous session due to a massive sell-off of technology stocks. Overnight, the Dow Jones Industrial Average fell 0.26 percent, while the tech-heavy Nasdaq composite dropped 1.55 percent. A standoff between the United States and Iran over the Strait of Hormuz, along with a slump in SK hynix's U.S.-listed shares overnight, sapped investor sentiment. Individuals sold a net 2.33 trillion won ($1.56 billion), while institutions and foreigners bought a net 1.93 trillion won and 427.8 billion won, respectively. In Seoul, large-cap stocks were mixed. Chip giant SK hynix fell 4.23 percent, and top carmaker Hyundai Motor plu

Jul 14, 2026By Yonhap
Seoul shares sharply down late Tuesday morning on retail selling
Policy

Financial authorities to discuss single-stock leveraged ETF risks Thursday

Financial authorities will convene a high-level meeting Thursday to discuss possible measures for single-stock leveraged exchange-traded funds (ETFs), as policymakers move to address mounting concerns that the products are amplifying swings in Korea's stock market. The meeting, expected to be held under the government's macroeconomic and financial issues consultative group known as the F4, will bring together officials from the Ministry of Finance and Economy, the Financial Services Commission, the Financial Supervisory Service and the Bank of Korea. The discussions come after weeks of increasingly volatile trading, with single-stock leveraged ETFs drawing growing scrutiny from regulators and market participants who say the products have become a significant driver of sharp price movements. The KOSPI plunged more than 8 percent during Monday's session, triggering the market's seventh circuit breaker of the year and intensifying calls for a policy response. Deputy Prime Minister and Finance Minister Koo Yun-cheol said last week during a National Assembly session that authorities were clos

Jul 13, 2026By Lee Kyung-min
Financial authorities to discuss single-stock leveraged ETF risks Thursday
Economy

KOSPI tumbles below 7,000 in 'Black Monday' sell-off

KOSPI fell nearly 9 percent to below 7,000 Monday, as a rout in semiconductor shares overshadowed the blockbuster U.S. debut of SK hynix's American depositary receipts (ADRs). SK hynix and Samsung Electronics, which together account for more than 60 percent of KOSPI's market capitalization, plunged 15.37 percent and 10.7 percent, respectively, dragging the index sharply lower. KOSPI closed at 6,806.93, down 8.95 percent from the previous session, according to the Korea Exchange. The sell-off triggered the market's 35th sell-side program-trading curb and seventh circuit breaker of the year. SK hynix ended at 1,845,000 won ($1,228.74), while Samsung Electronics closed at 254,500 won. The sell-off dashed hopes that SK hynix's U.S. listing would help revive the Korean stock market, which has fallen about 27.5 percent from its record intraday high of 9,385.59 set on June 19. SK hynix's ADRs, trading under the ticker SKHY, closed at $168 on Friday, up 12.8 percent from the $149 offering price. The listing surpassed Alibaba's to become the largest U.S. fundraising by a foreign company on record.

Jul 13, 2026By Lee Yeon-woo
KOSPI tumbles below 7,000 in 'Black Monday' sell-off
Policy

BOK poised for rate hike Thursday as markets eye further tightening

The Bank of Korea (BOK) is widely expected to raise its benchmark interest rate on Thursday, with markets focusing on whether the central bank will signal further tightening, analysts said Monday. The BOK is anticipated to raise its policy rate by 0.25 percentage points, to 2.75 percent, at Thursday's Monetary Policy Board meeting, in what would mark its first rate increase since January 2023. Markets are increasingly eyeing another 0.25 percentage point hike as early as August or October. Citibank expects the central bank to raise rates unanimously this week. "We expect the BOK to hike its policy rate by 25 basis points to 2.75 percent without a dissenting opinion. We expect Gov. Shin Hyun-song's press conference will likely point to a gradual pace of hiking cycle for the second half of 2026, implying a 25 basis points hike per quarter," Citibank economist Kim Jin-wook wrote in a report. Citibank expects the BOK to continue its gradual tightening cycle, with additional 0.25 percentage point hikes in October, January and April in 2027, bringing the policy rate to a terminal rate of 3.5 pe

Jul 13, 2026By Lee Hyo-jin
BOK poised for rate hike Thursday as markets eye further tightening
Policy

Foreign exchange authorities prioritize market imbalances over exchange rate level

As the won-dollar exchange rate remains at unusually elevated levels despite record-high exports fueled by strong semiconductor demand, market attention has increasingly turned to the question of how much ammunition foreign exchange authorities have. Typically, stronger exports lead to increased dollar inflows, which support the won and push down the exchange rate. This time, however, the exchange rate has remained in the psychologically significant 1,500-won range for about two months. The won has fallen about 8 percent against the dollar this year, while the dollar index has risen about 3 percent during the first half. On Monday, the won also traded in the 1,500-won-per-dollar range before closing at 1,503.4 won in onshore trading, down 2.0 won. A prolonged period of won depreciation could fuel higher import costs, squeeze corporate margins and erode households' real purchasing power. Following the 1997 Asian financial crisis, Korea adopted a free-floating exchange rate system in which the won's value is driven by market demand and supply rather than government-set levels. More buyers

Jul 13, 2026By Jun Ji-hye
Foreign exchange authorities prioritize market imbalances over exchange rate level
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