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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
  • 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
  • Economy

    Seoul stocks, won hammered by massive foreign selling

    2 MIN READBy Park Han-sol
    Seoul stocks, won hammered by massive foreign selling
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Economy

Seoul's stocks open over 1% lower after Fed's sharp rate hike

An electronic signboard at the dealing room of Hana Bank in Seoul shows the benchmark Korea Composite Stock Price Index (KOSPI), Sept. 22. YonhapKorean stocks opened more than 1 percent lower on Thursday as worries over a global recession mounted after the U.S. Federal Reserve delivered another sharp rate hike to tame runaway inflation.The benchmark Korea Composite Stock Price Index (KOSPI) dropped 26.75 points, or 1.14 percent, to 2,320.46 as of 9:15 a.m.Overnight, the Fed raised its benchmark federal funds rate by 0.75 percentage point for a third consecutive time, and its chair Jerome Powell voiced strong resolution to continue to push for aggressive monetary tightening "until the job is done."The hawkish monetary policy stance sent U.S. stocks lower. The Dow Jones Industrial Average plunged 1.7 percent. The tech-heavy Nasdaq also dipped 1.79 percent.In Seoul, most large-cap shares got off to a weak start. Market bellwether Samsung Electronics dipped 1.45 percent, while rival SK hynix slid 1.59 percent. Top carmaker Hyundai Motor lost 0.76 percent, and bio firm Celltrion plunged 2

Sep 22, 2022
Seoul's stocks open over 1% lower after Fed's sharp rate hike
  • Fed attacks inflation with another big hike and expects more
Economy

Won hits over 13-year low against dollar after Fed's rate hike

An electronic signboard at a Hana Bank dealing room in Seoul shows the Korean currency dipping below 1,400 mark against the U.S. dollar, Thursday. YonhapThe Korean currency on Thursday sank below the 1,400 mark against the U.S. dollar for the first time in more than 13 years as the Federal Reserve delivered another sharp rate hike and signaled further large increases.The Korean currency closed at 1,409.70 won per dollar, down 15.50 won from the previous session. The won dipped to as low as 1,413.40 against the greenback at one point.The won had fallen through the 1,400 mark for the first time since March 20, 2009, when the local currency ended at 1,412.50 won against the greenback.The won's slide came as the dollar rallied following the Fed's decision to raise its target interest rate by 75 basis points for a third straight time.The Fed on Wednesday (U.S. time) hiked the federal funds rate to a range of 3-3.25 percent, the highest since 2008, and hinted at further large hikes, including another 75 basis point increase this year.Fed Chair Jerome Powell voiced his resolution to contain

Sep 22, 2022
Won hits over 13-year low against dollar after Fed's rate hike
  • Won's tumble darkens outlooks for economy
Economy

Fed's rate hike to amplify market volatility for time being: finance minister

In this photo taken Sept. 21, the won-dollar exchange rate is shown on an electronic signboard at a Hana Bank dealing room in Seoul. YonhapKorea plans to implement steps to stabilize the market in a timely manner as the U.S. Federal Reserve's latest sharp rate hike could amplify market volatility and raise economic uncertainty for some time, the finance minister said Thursday. Finance Minister Choo Kyung-ho also said the government will closely monitor factors that might affect the movement of the South Korean currency and "actively" manage market volatility in the short term. "As the U.S. and Europe have been accelerating their aggressive monetary tightening, there is a possibility that high uncertainty in the financial markets will last for a considerable period of time," Choo said at a meeting with the chief of the central bank and top financial regulators. After a two-day policy meeting, the Fed on Wednesday (U.S. time) raised its target interest rate by 75 basis points for a third straight time to a range of 3-3.25 percent, the highest since 2008. It also hinted at further large

Sep 22, 2022
Fed's rate hike to amplify market volatility for time being: finance minister
  • Fed attacks inflation with another big hike and expects more
Economy

Koreans consume 53 bottles of soju, 83 bottles of beer a year

gettyimagesbankBy Yoon Ja-youngThe average adult residing in Korea consumed on average 53 bottles of soju and 83 bottles of beer last year, data showed. That is equal to a bottle of soju and nearly two bottles of beer a week. According to National Tax Service (NTS) data submitted to Rep. Kim Sang-hoon of the ruling People Power Party, 825,848 kiloliters of soju was shipped out from local soju breweries last year.The amount of beer ― locally brewed and imported beer combined ― totaled 1.79 million kiloliters. That amount may seem huge but it is actually less than what Koreans used to consume before. The amount of soju shipped from local breweries in 2017 totaled 945,860 kiloliters, and the figure last year was 12.7 percent less compared to then. The amount of beer also dropped 16.7 percent from 2017 when 2.15 million kiloliters of beer was consumed. Imports of some liquors also dropped. Whisky Imports dropped 23.9 percent and liqueur dropped by 23.6 percent. Imports of Japanese sake also decreased to half. Imports of wine, however, more than doubled during the same period, from 36,517

Sep 22, 2022By Yoon Ja-young
Koreans consume 53 bottles of soju, 83 bottles of beer a year
Economy

Fed attacks inflation with another big hike and expects more

Federal Reserve Chair Jerome Powell speaks at a news conference Wednesday, Sept. 21, at the Federal Reserve Board Building, in Washington. AP-YonhapIntensifying its fight against high inflation, the Federal Reserve raised its key interest rate Wednesday by a substantial three-quarters of a point for a third straight time and signaled more large rate hikes to come ― an aggressive pace that will heighten the risk of an eventual recession.The Fed's move boosted its benchmark short-term rate, which affects many consumer and business loans, to a range of 3 percent to 3.25 percent, the highest level since early 2008. The officials also forecast that they will further raise their benchmark rate to roughly 4.4 percent by year's end, a full point higher than they had envisioned as recently as June. And they expect to raise the rate again next year, to about 4.6 percent. That would be the highest level since 2007.By raising borrowing rates, the Fed makes it costlier to take out a mortgage or an auto or business loan. Consumers and businesses then presumably borrow and spend less, cooling the e

Sep 22, 2022
Fed attacks inflation with another big hike and expects more
  • Fed's rate hike to amplify market volatility for time being: finance minister
  • Seoul's stocks open over 1% lower after Fed's sharp rate hike
Economy

Finance minister declines to comment on possibility of currency swap deal with US

Finance Minister Choo Kyung-ho answers a lawmaker's question during a parliamentary session held at the National Assembly in Seoul, Wednesday. YonhapFinance Minister Choo Kyung-ho said Wednesday that a currency swap agreement with the United Sates would "definitely" help stabilize the foreign exchange market but declined to comment on the possibility of such a deal. He made the remarks after a local media outlet reported that a US$60 billion currency swap agreement with the U.S. is expected to be announced as early as this week. The Bank of Korea denied the report as "different from the facts.""A currency swap deal between Korea and the U.S. would definitely help manage the country's foreign exchange soundness. But this matter involves a counterpart, and there is a division of roles between the U.S. government and the Federal Reserve," Choo said in response to a lawmaker's inquiry on the possibility of a swap deal during a parliamentary session. But Seoul and Washington have agreed to cooperate in stabilizing the foreign exchange market, and if needed, implement various cooperative m

Sep 21, 2022
Finance minister declines to comment on possibility of currency swap deal with US
Economy

Seoul stocks dip almost 1% on growing woes over Fed rate hikes

An electronic signboard, left, at the dealing room of Hana Bank in Seoul shows the benchmark Korea Composite Stock Price Index (KOSPI), Sept. 21. YonhapKorean stocks slipped back into negative territory again Wednesday, as investors took to the sidelines ahead of a widely expected sharp rate hike by the Federal Reserve. The Korean won fell against the dollar. The benchmark Korea Composite Stock Price Index (KOSPI) lost 20.64 points, or 0.87 percent, to close at 2,347.21. Trading volume was light at 367.1 million shares worth 6.2 trillion won ($4.4 billion), with losers outpacing gainers 580 to 279. "Today's losses came as investors refrained from buying risky assets as they keep an eye on the results of the Fed's policy meeting," analyst Han Ji-young from Kiwoom Securities said.The stock market could tumble sharply if the Fed delivers a higher-than-expected rate forecast through the end of 2025. The Fed is scheduled to announce its rate decision on Wednesday (U.S. time)."This year and next year's top-line figures will be important. A figure over 4.5 could send shock waves into the lo

Sep 21, 2022
Seoul stocks dip almost 1% on growing woes over Fed rate hikes
Economy

Korea seeks to attract investment from Saudi oil money

Minister of Land, Infrastructure and Transport Won Hee-ryong, right, holds hands with Princess Haifa Bint Mohammed Al Saud, who's also Deputy Tourism Minister of Saudi Arabia, at Shilla Hotel in central Seoul, Tuesday. Courtesy of Ministry of Land, Infrastructure and Transport Seoul invites Saudi sovereign wealth funds this weekBy Anna J. Park Saudi Arabia's sovereign wealth funds seek investment opportunities in Korea, particularly in the area of gaming and cultural sectors, as they paid a visit to Korea this week. According to the Seoul Metropolitan Government, the city and “Invest Seoul ― the metropolitan government's investment arm ― invited key officials of two Saudi sovereign wealth funds to stay in Seoul from Monday to Thursday this week. The invitation aims to show the appeal of local competitive startup businesses to the Saudi wealth fund officials, hoping to attract investments from them. This is the first time that the Seoul city government invited the

Sep 21, 2022By Anna J. Park
Korea seeks to attract investment from Saudi oil money
Economy

Financial regulator to investigate solar energy loans

Financial Supervisory Service (FSS) Governor Lee Bok-hyun speaks during a joint meeting with leaders of listed companies as well as the Korea Exchange (KRX) in Seoul, Wednesday. Yonhap5.39 tril. won solar energy loans approved during Moon administration to be examinedBy Anna J. Park The Financial Supervisory Service (FSS) has started looking into allegations of bad loans related to solar energy development during the former President Moon Jae-in administration. The FSS said Wednesday it is planning to look into banks' detailed records regarding their approved loans related to solar energy development since 2017.The FSS' move comes as the anti-corruption bureau of the Office of Government Policy Coordination announced earlier this month that it identified numerous cases of illegal or problematic government-funded solar energy projects during the Moon administration in 12 local governments nationwide.Currently, the FSS is compiling information about solar energy loans made during the past administration. “First of all, the FSS is receiving reports from financial companies on info

Sep 21, 2022By Anna J. Park
Financial regulator to investigate solar energy loans
Economy

Fed may not open standing currency swap line exclusively with Korea: US economist

This photo, provided by the Korea Development Institute, shows Maurice Obstfeld, a professor at University of California Berkeley, Sept. 21. YonhapMaurice Obstfeld, a renowned U.S. economist, said Wednesday the opening of a currency swap line will help stabilize the foreign exchange market but voiced doubts about the possibility of the U.S. clinching a standing swap line deal exclusively with Korea.Obstfeld, a professor at the University of California Berkeley, also dismissed concerns that the Korean won's recent sharp weakness against the U.S. dollar might point to the country facing another financial crisis.The professor was in Seoul to deliver a keynote speech at the G20 global financial stability conference, co-hosted by the finance ministry and the Korea Development Institute (KDI)."I've long been an advocate of more extensive international swap lines," Obstfeld told reporters.He said he hopes to see the Fed clinch permanent swap lines with more countries as the swap facilities will help promote global financial stability and stabilize the foreign exchange market."I personally t

Sep 21, 2022
Fed may not open standing currency swap line exclusively with Korea: US economist
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