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  • Economy

    Expected BOK rate hike prompts concern over rising interest burdens on households, firms

    Expectations of imminent interest rate hikes by the Bank of Korea (BOK) are adding to pressure on households and businesses already struggling with rising borrowing costs, analysts said Sunday. Lending rates at major banks have continued to climb as BOK Gov. Shin Hyun-song struck a hawkish tone following a Monetary Policy Board meeting on May 28, reinforcing market expectations that the central bank could begin raising rates as early as July. According to banking industry data, fixed-rate mortgage loans offered by the country's five major lenders — KB Kookmin, Shinhan, Hana, Woori and NH NongHyup — carried interest rates ranging from 4.39 percent to 7.33 percent as of Friday. The upper end of the range was up 0.33 percentage point from a month earlier, when rates stood between 4.4 percent and 7 percent. It marked the first time since October 2022 that the highest fixed mortgage rate among the five major lenders exceeded 7.3 percent. Personal credit loan rates have also moved higher. As of Friday, interest rates on personal credit loans for top-tier borrowers with one-year maturities ra

    2 MIN READBy Lee Hyo-jin
    Expected BOK rate hike prompts concern over rising interest burdens on households, firms
  • Others

    AI-fueled Samsung affiliates reshape KOSPI market cap rankings

    2 MIN READBy Jun Ji-hye
    AI-fueled Samsung affiliates reshape KOSPI market cap rankings
  • Policy

    Top policymakers vow stern action against speculative FX market activities as won weakens

    2 MIN READBy Yonhap
    Top policymakers vow stern action against speculative FX market activities as won weakens
  • Cryptocurrency

    Bithumb's bitcoin payout blunder results in $1.6 mil. compensation

    2 MIN READBy Lee Hyo-jin
    Bithumb's bitcoin payout blunder results in $1.6 mil. compensation
  • Economy

    S. Korean retail investors sell over $641 bil. in overseas stocks in 1st week of June

    1 MIN READBy Yonhap
    S. Korean retail investors sell over $641 bil. in overseas stocks in 1st week of June
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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

Yoon says gov't will take necessary steps against financial volatility

President Yoon Suk-yeol, second from left, speaks at a macrofinancial meeting attended by government and business officials at a finance center in central Seoul on Sept. 30. YonhapPresident Yoon Suk-yeol said Friday the government will take necessary and timely steps to protect the people against increasing financial volatility.Yoon made the remark while presiding over a macrofinancial meeting with government and business officials, citing an "unprecedentedly strong dollar" and the U.S. Federal Open Market Committee's decision last week to raise the interest rate."The level of shock from the crisis that began from external factors will depend on how we respond internally," he said during the meeting in central Seoul."The government will be the first to become more alert and take necessary and timely steps in line with the emergency measures plan we have prepared," he added.Yoon also said the current economic crisis should be used as an opportunity to improve the country's economic constitution to one that is led by the private sector and the market."Every time energy prices have jump

Sep 30, 2022
Yoon says gov't will take necessary steps against financial volatility
Economy

Korea to hike natural gas prices in October

This undated file photo shows gas meters at an apartment building in Seoul. YonhapKorea will raise natural gas prices for civilian use next month amid high international gas prices, the industry ministry said Friday.Starting in October, natural gas prices for households and commercial use will be hiked by 2.7 won ($0.002) per megajoule, the ministry said in a press release.Natural gas prices for households will climb 15.9 percent, with the growth rate for commercial use ranging from 16.4 percent and 17.4 percent."The hike reflects soaring global natural gas prices and a recent surge in the won-dollar exchange rate," the ministry said. International gas prices have been trending high amid increased uncertainty surrounding the global liquefied natural gas (LNG) market, which stems from the war in Ukraine and disrupted gas supplies to Europe, it said.According to the ministry, Asian spot natural gas prices soared to $47 per one million Btu in the third quarter of the year, compared with $2.5 in July 2020.Btu, or the British thermal unit, is a traditional unit of energy that is approxima

Sep 30, 2022
Korea to hike natural gas prices in October
  • KEPCO to hike Q4 electricity rate on high costs, losses
Economy

Seoul shares open lower on Wall Street plunge

Screens show the benchmark Korea Composite Stock Price Index, the won-dollar exchange rate and the tech-rich KOSDAQ at a Hana Bank branch in central Seoul on Sept. 29. YonhapSeoul stocks opened lower Friday, taking a cue from overnight losses on Wall Street that stemmed from growing recession fears.The benchmark Korea Composite Stock Price Index (KOSPI) retreated 7.64 points, or 0.35 percent, to 2,163.29 points in the first 15 minutes of trading.The market has been in the doldrums, as the key stock index closed at the lowest since July 2020 this week.In Seoul, market bellwether Samsung Electronics slid 0.962 percent, while chip giant SK hynix jumped 2.35 percent.Battery maker LG Energy Solutions dipped 1.02 percent, top automaker Hyundai Motor lost 0.55 percent, and its affiliate Kia also decreased 0.67 percent. The Korean won had been trading at 1,433.65 won against the U.S. dollar as of 9:15 a.m., up 5.25 won from the previous session's close. (Yonhap)

Sep 30, 2022
Seoul shares open lower on Wall Street plunge
Economy

Korea added to watch list for inclusion in FTSE Russell's bond index

Korea was added to a watch list for the potential inclusion in the World Government Bond Index (WGBI) operated by FTSE Russell. YonhapKorea was added to a watch list for the potential inclusion in the World Government Bond Index (WGBI) operated by FTSE Russell, a move that could help the country better lure foreign investment, the finance ministry said Friday.The WGBI is a broad index designed to measure the performance of government bond markets, including local currencies and sovereign bonds of major advanced nations. Korea "will be added to the FTSE Fixed Income Country Classification Watch List for the potential reclassification of its market accessibility level from 1 to 2 and consideration for inclusion of the WGBI," the finance ministry said, citing the press release by the leading global index.The agency will gather feedback from investors on the practicalities of investing and make a final determination around September next year, it added.Korea has been pushing to join the index in a bid to attract more investment by foreigners. If included, some 60 trillion won ($41.87 bil

Sep 30, 2022
Korea added to watch list for inclusion in FTSE Russell's bond index
Economy

Tax commissioners' meeting

National Tax Service (NTS) Commissioner Kim Chang-ki, left, poses with OECD Forum on Tax Administration Chair Bob Hamilton, center, and Australian Taxation Office Commissioner Chris Jordan, right, at the 15th Plenary meeting of the OECD Forum on Tax Administration held in Sydney, Australia, Thursday. At the meeting, tax commissioners discussed taxation policy for the post-pandemic era as well as international cooperation on digital taxation. Courtesy of NTS

Sep 30, 2022By Yoon Ja-young
Tax commissioners' meeting
Economy

Industrial output falls for 2nd month in August

Korea's industrial output fell in August for a second month in a row, data showed Friday, amid weakening growth momentum over deepening external uncertainties. Korea Times fileKorea's industrial output fell in August for a second month in a row, data showed Friday, amid weakening growth momentum over deepening external uncertainties. Industrial production declined 0.3 percent on-month in August, following a 0.1 percent on-month decrease the previous month, according to the data from Statistics Korea.Compared with a year earlier, industrial production grew 4.5 percent.Retail sales, a gauge of private spending, however, rose 4.3 percent in August, ending five consecutive months of an on-month fall.Facility investment also jumped 8.8 percent on-month last month, compared with a 3.5 percent on-month drop the previous month, the data showed. (Yonhap)

Sep 30, 2022
Industrial output falls for 2nd month in August
Economy

BOK to sell 9.9 tln won worth of monetary stabilization bonds next month

The headquarters of the Bank of Korea (BOK) in central Seoul / gettyimagesbankKorea's central bank said Thursday it will issue a larger amount of monetary stabilization bonds (MSBs) in October from a month earlier to better manage market liquidity.The Bank of Korea (BOK) said it plans to sell 9.9 trillion won (US$6.89 billion) worth of MSBs next month, compared with 8.8 trillion won worth of bonds scheduled to be sold this month.The MSB is a policy tool devised to control excess liquidity in the markets. It is sold to financial institutions and individuals. (Yonhap)

Sep 29, 2022
BOK to sell 9.9 tln won worth of monetary stabilization bonds next month
Economy

Currency swap with US urged as last resort against worst-case scenario

An employee at Hana bank arranges bundles of U.S. dollar bills at its headquarters in Seoul, Aug. 9. YonhapBy Lee Min-hyungKorea should immediately sign a currency swap agreement with the United States, experts said Thursday.They said the Bank of Korea (BOK) needs to make a preemptive move amid escalating economic and financial uncertainties here and abroad represented by the soaring won-dollar exchange rate.“The Korean government and the central bank are advised to be more active to clinch the currency swap deal with the U.S. Fed, as part of efforts to brace for a potential economic crisis,” Yonsei University economist Sung Tae-yoon said. “Authorities should not sit on their hands due to the escalating uncertainty in the global macroeconomic environment.”The concern came amid the sharp weakening of the Korean won against the U.S. dollar. The Korean currency weakened to 1,440 won per dollar on Wednesday for the first time in more than 13 years.But the BOK and financial authorities are voicing their consensus that now is not the right time for a currency swap d

Sep 29, 2022By Lee Min-hyung
Currency swap with US urged as last resort against worst-case scenario
  • Korea's default risk rises to peak level during pandemic outbreak
Economy

Seoul shares pare gains to close almost flat amid recession fears

Currency dealers work in the dealing room of Hana Bank in Seoul with an electronic signboard showing that the benchmark Korea Composite Stock Price Index (KOSPI), Sept. 29. YonhapSeoul stocks ended almost flat Thursday, shedding nearly all earlier gains amid woes that combative monetary tightening moves in major economies would lead to a global economic recession. The Korean won rose slightly against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) added 1.64 points, or 0.08 percent, to close at 2,170.93, after hitting an intraday high of 2,210.61.On Wednesday, the index hit an over 2-year low on growing concerns over a global recession.Trading volume was moderate at about 499 million shares worth some 7.1 trillion won ($4.9 billion), with gainers slightly outnumbering losers 440 to 417. Institutions and retail investors offloaded a net 225 billion won. Foreigners bought a net 218 billion won.The market opened higher, tracking overnight Wall Street gains on the bond buying by the Bank of England to stabilize its financial markets. But investor sentiment was aga

Sep 29, 2022
Seoul shares pare gains to close almost flat amid recession fears
Economy

Korea's default risk rises to peak level during pandemic outbreak

gettyimagesbankGov't, experts say Korean economy's fundamentals remain strong By Anna J. Park Korea's credit default swap (CDS) premium, a representative indicator that shows the country's risk of bankruptcy, has not only reached the highest point for this year, but it has also reached its highest level during the pandemic outbreak. As the CDS premium is an insurance premium charged for the risk of bond default, it is understood that the lower the premium, the lower the risk of bond default. Korea's five-year CDS premium logged 55.23 basis points (bp) in New York as of Wednesday, which is an increase of 4.23 bp from the previous trading session. It is close to the 56 bp logged during March 2020, when the local stock market plunged as fears grew concerning the spread of COVID-19.The country's five-year CDS premium remained at below 20 bp up until the start of this year. During recent months, the premium hovered at around 30 bp until early this month. But it drastically soared by some 20 bp ― a whopping 66 percent ― during the past week due to globally strengthened risk-averse sentimen

Sep 29, 2022By Anna J. Park
Korea's default risk rises to peak level during pandemic outbreak
  • Currency swap with US urged as last resort against worst-case scenario
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