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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

    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
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Economy

Korea to offer $9.62 bil. to support SMEs amid FX volatility

Korea will spend 14.9 trillion won ($9.62 billion) to support small-and medium-sized enterprises (SMEs) hit by the recent foreign exchange volatility, the finance minister said Friday. Finance Minister Koo Yun-cheol discussed the measures with related ministries, under which the government will provide the funds in loans and guarantees for SMEs experiencing financial challenges due to the recent slide of the Korean won against the greenback. Koo said such moves came amid the government's push to utilize all available financial and taxation measures to help SMEs, as the foreign exchange volatility has been weighing on people's livelihoods, including through higher consumer prices. "Korea has been stably managing risks at home and abroad, which led to an unprecedented boom in exports despite the Middle East war," Koo said, noting the government will further speed up efforts to shield the economy from uncertainties. Touching on the government's recent drive to promote investment in regional areas, including projects by Samsung Group and SK Group, Koo said the government will push for all-ou

Jul 3, 2026By Yonhap
Korea to offer $9.62 bil. to support SMEs amid FX volatility
Economy

Seoul shares up 2.1% late Friday morning on bargain hunting

Seoul stocks traded higher late Friday morning in choppy trading as investors snapped up bargain-priced semiconductor shares following the previous session's sharp sell-off. After opening 1.2 percent higher, the benchmark Korea Composite Stock Price Index (KOSPI) extended its gains, rising 163.52 points, or 2.11 percent, to 7,809.61 as of 11:20 a.m. The index plunged 7.89 percent the previous session, dragged by a heavy sell-off in Samsung Electronics and SK hynix. Overnight, the Dow Jones Industrial Average rose more than 1 percent to a record high as weaker-than-expected June jobs data eased concerns over a near-term interest rate hike. The tech-heavy Nasdaq fell 0.8 percent, weighed down by another sharp sell-off in semiconductor stocks. The Philadelphia Semiconductor Index tumbled 5.4 percent, extending its decline for a second consecutive session. Investors bought semiconductor shares following reports that AI startup Anthropic is in talks with Samsung Electronics to develop a custom AI chip. Tech heavyweights lifted the overall market. Samsung Electronics advanced 6.12 percent, and ch

Jul 3, 2026By Yonhap
Seoul shares up 2.1% late Friday morning on bargain hunting
Economy

Korea's foreign reserves rise in June despite FX market-stabilizing measures

Korea's foreign reserves rose in June despite efforts by authorities to manage exchange rate volatility, the central bank said Friday. The country's foreign reserves stood at $427.36 billion as of end-June, up $370 million from a month earlier, according to data from the Bank of Korea (BOK). The figure marked a turnaround from an $880 million decline in May. The BOK attributed the monthly increase to a rise in foreign currency-denominated deposits by financial institutions despite market stabilization measures, such as foreign exchange swaps with the National Pension Service. The Korean won has traded far over the psychologically important level of 1,500 won against the U.S. dollar throughout June amid net selling of local stocks by foreign investors. The local currency dropped to 1,549.4 won per dollar on the last day of June, marking the weakest level since March 6, 2009. Foreign securities, including U.S. Treasuries, fell by $330 million from a month earlier to $380.34 billion at end-June, accounting for 89 percent of the country's total foreign reserves. The value of foreign currency de

Jul 3, 2026By Yonhap
Korea's foreign reserves rise in June despite FX market-stabilizing measures
Economy

As 'jeonse' fades, path to homeownership narrows further in Korea

Kang, an office worker in her 20s, currently rents a studio apartment in Seoul on a monthly lease. During her search for a home, she ruled out Korea’s traditional “jeonse” system — the once-dominant rental arrangement where tenants pay a large lump-sum deposit instead of monthly rent — because of a series of high-profile deposit fraud cases that have undermined trust in the market. “There are also far more monthly rental listings these days, so it’s hard to find a decent jeonse property in the first place,” Kang said. The trade-off is that paying monthly rent leaves little room to build savings for a home of her own. “Even neighborhoods that used to be relatively affordable in Seoul have become so expensive that the difference hardly feels meaningful anymore,” she said. “With monthly lease being my only realistic option, it has become even harder to dream of buying a home.” Jung, a 30-year-old finance professional, had hoped to either secure a jeonse home or buy an apartment with her fiancé. Instead, the couple has widened their search to include monthly rentals a

Jul 3, 2026By Park Han-sol
As 'jeonse' fades, path to homeownership narrows further in Korea
Economy

Labor representatives lower proposed hourly minimum wage for next year to 11,700

The labor side revised down its proposed hourly minimum wage for next year to 11,700 won ($7.56) during ongoing wage-setting negotiations Thursday, still higher than the business side's proposal. The revised minimum wage proposal was presented by the labor side at a plenary session of the Minimum Wage Commission, down from its initial proposal of 12,000 won. The latest proposal marks the labor side's fourth revision from its initial offer. During the meeting, the business side proposed 10,410 won, narrowing the gap between the two sides down to 1,290 won. The minimum wage is set each year by the Minimum Wage Commission, which is made up of representatives from labor, business and public interest. The two sides plan to meet again next week in an attempt to reach an agreement, though observers expected negotiations to continue till mid-July. If the two sides continue to fail to reach an agreement, public interest representatives could step in to mediate the negotiations. This year's minimum hourly wage is 10,320 won, up 2.9 percent from last year.

Jul 2, 2026By Yonhap
Labor representatives lower proposed hourly minimum wage for next year to 11,700
Economy

KOSPI sinks below 8,000 on fears over slowing AI chip demand

Seoul shares plunged Thursday, with the benchmark KOSPI falling below the 8,000 mark for the first time in about 15 trading sessions, as chip heavyweights tumbled on growing concerns over weakening demand for artificial intelligence (AI) semiconductors. According to the Korea Exchange, KOSPI closed at 7,648.09, down 7.89 percent from the previous session. The index opened at 7,933.10, marking the first time in about 15 trading sessions that it had fallen below 8,000 during intraday trading. At around 9:07 a.m., KOSPI futures also fell by more than 5 percent, briefly triggering a sell-side sidecar. Foreign investors drove the decline, net selling 5.46 trillion won ($3.5 billion) worth of shares on the main bourse, marking a 10th consecutive day of net selling. Institutional investors also sold a net 114.6 billion won, while retail investors purchased a net 5.39 trillion won. The sharp decline came after reports said Meta may enter the cloud computing business by using its surplus computing capacity. The news raised concerns that AI demand may be weaker than expected and that the AI inves

Jul 2, 2026By Lee Yeon-woo
KOSPI sinks below 8,000 on fears over slowing AI chip demand
Policy

OECD urges stronger fiscal discipline amid aging population pressures

Korea’s economy is maintaining its growth momentum despite conflict in the Middle East, supported by a recovery in consumption and strong semiconductor exports, the OECD said Thursday. But it also warned that the country’s medium- to long-term growth trajectory is likely to weaken due to persistently low fertility rates and a rapidly aging population. In its latest OECD Economic Surveys: Korea 2026 report, the Paris-based organization said fiscal policy should continue to support recovery in domestic demand in the short term, while stressing the need for stronger medium-term fiscal consolidation to address risks. The organization projected Korea’s economy to grow 2.6 percent this year, while consumer inflation is also expected to average 2.6 percent. For 2027, the OECD forecast economic growth to slow to 1.9 percent, with inflation easing to 2.2 percent. In its March report, the OECD cut its growth outlook for Korea this year to 1.7 percent from 2.1 percent, citing concerns over the conflict in the Middle East and rising energy costs. It then sharply revised its assessment in June,

Jul 2, 2026By Jun Ji-hye
OECD urges stronger fiscal discipline amid aging population pressures
Economy

OECD warns of rising shock exposure from Korea's dependence on chip exports

Korea's growing dependence on semiconductor exports may make the country more vulnerable to external shocks and cyclical volatility, despite serving as a major "growth driver," the Organization for Economic Cooperation and Development (OECD) said Thursday. The Paris-based organization made the assessment in a report titled "OECD Economic Surveys: Korea 2026," which came around a month after it raised Korea's economic growth outlook for this year to 2.6 percent from 1.7 percent three months earlier, citing the artificial intelligence (AI) boom. "Semiconductor exports have been an important growth driver, with the growth contribution of exports and investments accelerating in early 2026," the report said. Government data released the previous day showed Korea's monthly exports hit a fresh high by surpassing the $100 billion mark for the first time in June, amid a record-breaking chip performance. Exports of semiconductors nearly tripled to reach $44.82 billion, with monthly exports surpassing $40 billion for the first time on the back of surging demand for memory chips. The OECD, however, s

Jul 2, 2026By Yonhap
OECD warns of rising shock exposure from Korea's dependence on chip exports
Economy

Finance minister chairs 1st meeting on US investment project review

Korea's finance minister on Thursday hosted the inaugural meeting of a steering committee tasked with reviewing the viability of potential projects in the United States under Seoul's $350 billion investment pledge. Finance Minister Koo Yun-cheol hosted the steering committee meeting with the Korea-U.S. Strategic Investment Corp. (KUIC), which will be responsible for decision-making and fund management, according to the Ministry of Finance and Economy. Korea has been making preparations to implement its investment pledge made last year under trade negotiations with Washington, with the National Assembly passing the Special Act on Korea-U.S. Strategic Investment Management in March. Potential investment projects are subject to review by the project management committee led by the industry minister and KUIC's steering committee, and will require additional approval from the National Assembly before consultations with Washington. During the meeting, Koo suggested three main keywords for Korea's investment projects in the U.S., namely "together, opening and productive." "We will aim to impleme

Jul 2, 2026By Yonhap
Finance minister chairs 1st meeting on US investment project review
Economy

Korea's leveraged chip ETFs struggle to bring investors home

Korean retail investors continue to pour money into leveraged products listed overseas, suggesting that the launch of domestic single-stock leveraged exchange-traded funds (ETFs) tied to Samsung Electronics and SK hynix has done little to curb broader demand for high-risk overseas products, industry officials said Thursday. Leveraged products accounted for 21 of the 50 U.S.-listed securities most heavily bought on a net basis by Korean investors between June 2 and July 1, up from seven the previous month, according to SEIBro, a portal run by the Korea Securities Depository. Net purchases surged to $1.65 billion from $490 million in the May 2-June 1 period. Korean investors were net sellers of Hong Kong-listed single- stock leveraged products from May 27 to July 1, but buying activity remained sizable. During the period, they purchased $151.5 million worth of the SK hynix product and $79.3 million worth of the Samsung Electronics product, the two largest purchase amounts among Hong Kong-listed securities bought by Korean investors. Unlike in the domestic market, investors trading leverag

Jul 2, 2026By Lee Yeon-woo
Korea's leveraged chip ETFs struggle to bring investors home
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