my timesThe Korea Times

Economy

PolicyCryptocurrencyOthers
  • 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

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

    3 MIN READBy Jun Ji-hye
    [COVER STORY] 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
Korea Times
About Us
Introduction
History
Contact Us
Products & Services
Subscribe
E-paper
RSS Service
Content Sales
Site Map
Policy
Code of Ethics
Ombudsman
Privacy Policy
Youth Protection Policy
Terms of Service
Copyright Policy
Family Site
Hankookilbo
Dongwha Group
FacebookXYoutubeInstagram
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.

Read more

Economy

Financial regulator warns of excessive leveraged stock investments

The head of the nation's financial regulator said Tuesday excessive leveraged stock investments could undermine the financial health of households, warning retail investors against taking too much risk in a stock rally. Lee Chan-jin, governor of the Financial Supervisory Service (FSS), made the remarks at a meeting with relevant officials on the protection of financial consumers. Lee said the financial health of households could be severely undermined "if household financial assets are excessively concentrated in certain assets or invested using leverage beyond tolerable levels." Lee called for the financial sector to step up its role of risk management and take preemptive measures if necessary. The benchmark Korea Composite Stock Price Index (KOSPI) has surged so far this year, thanks to a global spending boom on artificial intelligence data centers, but its volatility has also grown. Between May 27 and June 22, retail investors bought a net 8.9 trillion won ($5.8 billion) worth of leveraged exchange-traded funds tracking single heavyweight stocks, according to industry data.

Jul 7, 2026By Yonhap
Financial regulator warns of excessive leveraged stock investments
Economy

KRX issues sell-side sidecar for KOSPI on sharp fall

Korea's bourse operator on Tuesday activated a sell-side sidecar for the benchmark Korea Composite Stock Price Index (KOSPI) after the index tumbled sharply. Program trading for the KOSPI was suspended for five minutes at around 10:23 a.m., according to the Korea Exchange (KRX). The KOSPI came under heavy selling pressure as investors locked in profits after Samsung Electronics released its preliminary second-quarter earnings estimate. Local technology stocks plunged on profit-taking after the chipmaker estimated its operating profit for the April-June period at 89.4 trillion won ($58.4 billion), beating market forecasts. After opening down 1.6 percent at 7,920.48, the KOSPI fell as low as 7,568.59 during the session.

Jul 7, 2026By Yonhap
KRX issues sell-side sidecar for KOSPI on sharp fall
Policy

Gov't to unveil property tax revision this month: finance minister

Korea will unveil property tax revisions later this month as part of its effort to strike a balance between recurrent and transaction taxes, the finance minister said Tuesday. Finance Minister Koo Yun-cheol made the remark during an interview with MBC Radio, a local broadcaster, noting the government intends to make a final decision after gathering opinions from the public. "Basically, we aim to establish a property market centered on actual residents, under the principle that homes are for living, not buying," Koo said, reflecting the government's efforts to curb speculative trading. Koo said the government will review various aspects of real estate taxation, including reducing benefits of long-term ownership for those who have not actually lived in their properties, while falling short of offering more details. "We are reviewing (the property tax) from the perspective that the two should be balanced," Koo said, when asked if the government is currently seeking to revamp both recurrent and transaction taxes. Touching on the three recent megaprojects announced by the government, Koo said

Jul 7, 2026By Yonhap
Gov't to unveil property tax revision this month: finance minister
Economy

Seoul shares extend losses late Tuesday morning on foreign selling

Seoul shares extended losses late Tuesday morning as investors locked in profits following Samsung Electronics Co.'s preliminary second-quarter earnings estimate, with heavy foreign selling weighing on the market. After opening 1.6 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) fell 433.81 points, or 5.39 percent, to 7,617.52 as of 11:20 a.m. The local market bucked overnight gains on Wall Street, where the Dow Jones Industrial Average rose 0.29 percent and the tech-heavy Nasdaq advanced 1.12 percent. Institutions and foreigners sold a net 97.3 billion won ($64 million) and 1.74 trillion won, respectively, while individuals bought a net 1.81 trillion won. Technology stocks plunged on profit-taking after Samsung Electronics estimated its operating profit for the April-June period at 89.4 trillion won, beating market forecasts. In Seoul, technology shares led the declines. Market bellwether Samsung Electronics fell 7.4 percent, while chip giant SK hynix declined 6.4 percent ahead of its planned $29 billion U.S. listing later this week. Top carmaker Hyundai Motor droppe

Jul 7, 2026By Yonhap
Seoul shares extend losses late Tuesday morning on foreign selling
Economy

Major investment banks' average forecast for Korea's 2026 growth reaches 3%: data

Major global investment banks' average forecast for Korea's economic growth this year has reached 3 percent for the first time, data showed Tuesday, supported by robust semiconductor exports amid the artificial intelligence (AI) boom. Growth forecasts for Korea's real gross domestic product (GDP) in 2026 by eight major investment banks, including JP Morgan and Citi, averaged 3 percent at the end of June, up 0.2 percentage point from a month earlier, according to data compiled by the Korea Center for International Finance. It marked the first time that the average forecast had reached the 3 percent level. The average forecast stood at 2 percent at the end of last year. It rose to 2.1 percent in January, 2.4 percent in April and 2.8 percent in May. JP Morgan predicted 3.7 percent growth for the Korean economy in June, up 0.7 percentage point from 3 percent a month earlier. Citi also raised its forecast to 3.5 percent from 3 percent over the same period. Barclays and Goldman Sachs each projected 2.7 percent growth, while HSBC and UBS forecast 2.8 percent each. Bank of America projected 3.1 per

Jul 7, 2026By Yonhap
Major investment banks' average forecast for Korea's 2026 growth reaches 3%: data
Economy

Foreign investors may have more Korean stocks to sell

Foreign investors have been dumping Korean stocks at a record pace in recent months even as the benchmark KOSPI extends one of the strongest rallies in global equities. The selling may have further to run, analysts said Monday. Foreign investors sold 157.3 trillion won ($102.5 billion) of shares on the KOSPI this year through July 3, according to the Korea Exchange. The selling persisted even as the index surged 91.9 percent over the same period, marking one of the strongest rallies in the market's history. Retail investors took the other side of the trade, buying a net 104.8 trillion won of shares and providing support for the index. Foreign investors' share of KOSPI holdings rose to 40.47 percent on July 3 from 36.65 percent on January 2, even as they continued to sell heavily. Gains in Samsung Electronics and SK hynix lifted the market value of foreign-owned shares, offsetting the impact of the outflows. The two chipmakers accounted for about 90 percent of foreign investors' total selling in the first half. Analysts say global funds have room to further trim their exposure to Korea's

Jul 6, 2026By Lee Yeon-woo
Foreign investors may have more Korean stocks to sell
Economy

KOSPI clings to 8,000 despite heavy foreign, institutional selling

Seoul stocks swung wildly Monday, with the benchmark KOSPI barely holding above the 8,000 mark, as continued selling by foreign and institutional investors offset heavy buying by retail investors. According to the Korea Exchange, KOSPI closed at 8,051.33, down 0.46 percent from the previous session. The index remained highly volatile throughout the day, rising to the 8,300 level before falling back to the 7,800 range and later paring some of its losses. Heavy selling by foreign and institutional investors weighed on the index. Foreigners and institutions net sold 1.31 trillion won ($854.3 billion) and 1.43 trillion won in shares, respectively. It marked the 12th consecutive session of net selling by foreign investors in the Korean market. Retail investors, meanwhile, were net buyers of 2.65 trillion won in shares, helping support the index. Samsung Electronics closed at 318,000 won, up 2.75 percent from the previous session. The stock rose more than 5 percent in early trading on expectations for its preliminary second-quarter earnings results, due Tuesday, but pared gains after 11 a.m.

Jul 6, 2026By Lee Yeon-woo
KOSPI clings to 8,000 despite heavy foreign, institutional selling
Policy

Gov't to effectively ban subsidiary listings to protect minority shareholder value

Companies in Korea will, in principle, no longer be allowed to list subsidiaries created by splitting off businesses from already listed parent companies, in accordance with new rules aimed at curbing a longstanding practice that has drawn criticism for diluting shareholder value, government officials said Monday. The restriction applies to subsidiaries formed when a listed company spins off part of its business while retaining ownership. Such listings will be granted only in exceptional cases after passing stricter reviews, with companies required to demonstrate that minority shareholders are adequately protected. The guidelines, unveiled by the Financial Services Commission (FSC) and the Korea Exchange, impose five new obligations on the boards of parent companies seeking dual listings, alongside tougher listing review standards. According to the FSC, the practice has become widespread in Korea despite concerns that it hurts minority shareholders by lowering the value of the parent company’s shares. Investors have long argued that once a valuable business is listed separately, part

Jul 6, 2026By Park Han-sol
Gov't to effectively ban subsidiary listings to protect minority shareholder value
Others

Why Korea's IPO boom has turned into bust

Korea’s initial public offering (IPO) market is rapidly losing momentum despite a strong first-half rally in equities, as newly listed stocks have struggled to hold their offering prices, analysts said Monday. The weakness reflects a market increasingly concentrated in heavyweight semiconductor stocks, while expectations of stricter listing rules have further dampened investor appetite for new offerings, they said. Korea Exchange data show that the number of IPOs in Korea fell sharply in the first half, with just 17 companies listing on the markets — one on the KOSPI and 16 on the Kosdaq. This marks a significant decline from 38 companies a year earlier. Of the 17 newly listed firms, 14 were trading below their IPO prices as of the Thursday close. Peace Piece Studio has emerged as the worst performer among this year’s IPOs. The operator of fashion label Mardi Mercredi, once touted as a potential K-fashion unicorn, slumped more than 36 percent on its market debut on June 8. Its shares have since extended losses to more than 75 percent below the IPO price. Autonomous driving software

Jul 6, 2026By Jun Ji-hye
Why Korea's IPO boom has turned into bust
Policy

Regulators unveil strict guidelines for 'split listing'

The Financial Services Commission (FSC) and the Korea Exchange on Monday unveiled strict guidelines for "split listing" by conglomerates, in a bid to bolster the fiduciary duty of listed firms and interests of ordinary shareholders. Split listing, also referred to as duplicate listing, occurs when a core business division is spun off and listed separately, and has long been cited as one of the major reasons behind relatively low values for local stocks. Financial regulators have said it would seek to ban the practice of split listing "in principle," while making efforts to revise relevant rules and enhance shareholder protection. Under the new guidelines, the voting right of the biggest shareholder of a parent company will be limited at three percent under the Commercial Act if the parent company's affiliate is listed. Also, the guidelines require a parent company's board to review the impact of split listing on its shareholders. Regulators also require a parent company to draw up measures to ensure shareholder protection, the FSC and the bourse operator said.

Jul 6, 2026By Yonhap
Regulators unveil strict guidelines for 'split listing'
previous page
4344454647
next page

Most Read in Economy