my timesThe Korea Times

Economy

PolicyCryptocurrencyOthers
  • 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
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

Foreign exchange authorities tighten monitoring on currency market

U.S banknotes are stacked up for inspection at a counter-forgery center in Hana Bank in Seoul, Monday. YonhapWon-dollar rate closes at 1,393.6, up 5.6 from Friday's close By Yi Whan-wooForeign exchange authorities are tightening monitoring on the currency market, as the won-dollar exchange rate keeps breaching thresholds and is approaching 1,400 won, another psychologically significant level. On Monday, the Korean currency closed at 1,393.6 won against dollar, weakening 5.6 won from Friday's close in its months-long losing streak.Sources familiar with the matter said Monday that the authorities have asked commercial banks to report the status of dollar transactions and foreign exchange-related positions every hour.The measure follows repeated verbal warnings issued recently by the authorities that they will closely monitor whether speculative bets are being made in the market.“It can be said that we have been asked to report transactions in real time,” an industry source said, noting that the banks were previously required to report three times a day: in the morning, duri

Sep 19, 2022By Yi Whan-woo
Foreign exchange authorities tighten monitoring on currency market
Economy

OECD raises Korea's growth forecast to 2.8%, inflation outlook to 5.2%

Officials from the Organization for Economic Cooperation and Development (OECD), the Ministry of Economy and Finance, the Bank of Korea and state-run Korea Development Institute (KDI) pose during a forum at KDI headquarters in Sejong, Monday, to mark the release of OECD's updated report on the Korean economy. Courtesy of Ministry of Economy and FinanceBy Yi Whan-wooThe Organization for Economic Cooperation and Development (OECD) raised its economic growth outlook for Korea to 2.8 percent, Monday, from 2.7 percent in its previous forecast in early June, citing the country's effective handling of the COVID-19 pandemic and a recovery in consumer spending. Asia's fourth-largest economy grew 0.7 percent in the second quarter.Still, the Paris-headquartered organization warned that the pace of economic recovery will grow slower due to risks from within Korea and abroad, such as the Ukraine crisis, soaring inflation and high household debt.It accordingly lowered its 2023 economic growth outlook for Korea to 2.2 percent from 2.5 percent in an updated report on the country titled, “OECD

Sep 19, 2022By Yi Whan-woo
OECD raises Korea's growth forecast to 2.8%, inflation outlook to 5.2%
Economy

Watchdog's move to strengthen bank reserves feared to hurt dividend payouts

Financial Services Commission (FSC) headquarters in central Seoul / YonhapBy Anna J. Park Financial authorities plan to act on their new right to request banks to strengthen cash reserves, but market watchers are concerned that the move might hurt year-end dividend payouts by listed lenders.According to the Financial Services Commission's (FSC) latest taskforce meeting, aimed at better responding to financial risks, the top financial regulator plans to adopt a new control measure against local banks, which will allow the FSC to ask banks to prepare “special” cash provisioning measures, in addition to their usual cash reserves.Under financial authorities' tentative ideas on the adoption of such measures, the regulators are expected to hold the right to demand banks to strengthen reserves, after reviewing each bank's annual reports on cash reserves. When financial authorities deem banks' reserves are not at a sufficient level compared to the lenders' expected losses, regulators could invoke the right to urge banks to increase reserves, on top of their usual cash reserves. T

Sep 19, 2022By Anna J. Park
Watchdog's move to strengthen bank reserves feared to hurt dividend payouts
Cryptocurrency

Fears of rate hikes hit crypto market despite Ethereum Merge upgrade

gettyimagesbankBy Lee Min-hyungFears of external monetary uncertainty are bringing jitters to the global crypto industry despite Ethereum's much-anticipated Merge upgrade, which many critics have considered a major turning point for revving up lukewarm crypto sentiment. The world's second-largest cryptocurrency by market capitalization completed Thursday the system upgrade with an environmentally friendly proof-of-stake mechanism. This upgrade raised hopes for the introduction of smarter contracts across the crypto industry, but there was little effect in terms of boosting its valuation on the market.According to data from crypto price tracker, CoinMarketCap, the price of Ethereum has been on the sharp decline for the past week. It was traded at around $1,750 as of Sept. 12, but plunged to $1,300 as of 2:30 p.m. Monday.The prices of other major cryptocurrencies also remained weak during the same period. Bitcoin was traded at around $22,300 last Monday, but failed to defend the $20,000 mark in a week, with its value tumbling down to $18,800 on Monday afternoon.This situation was cause

Sep 19, 2022By Lee Min-hyung
Fears of rate hikes hit crypto market despite Ethereum Merge upgrade
Cryptocurrency

Terraform founder Do Kwon 'obviously on the run,' prosecutors say

Terraform Labs founder Do Kwon / Courtesy of CoinageKorean prosecutors said Sunday that Do Kwon, the wanted founder of Terraform Labs accused of fraud following the massive collapse of the firm's cryptocurrencies in May, is "obviously on the run" and not cooperating with the investigation.The remarks came in response to Kwon's claim in a tweet that "I am not 'on the run' or anything similar ― for any government agency that has shown interest to communicate, we are in full cooperation and we don't have anything to hide."On Saturday, Singapore police's statement said the Terraform founder and CEO is no longer in Singapore.The blockchain firm has been under investigation for alleged fraud and tax evasion after investors in its cryptocurrencies ― TerraUSD and Luna ― filed complaints against Kwon in May, accusing him of a Ponzi scheme over the loss of billions of won following the crash of both coins earlier that month. The Seoul Southern District Prosecutors Office has recently had arrest warrants issued for Kwon and five others, including Terraform founding member Nicholas Platias, in e

Sep 18, 2022
Terraform founder Do Kwon 'obviously on the run,' prosecutors say
  • Do Kwon faces escalating criticism for vague comments on whereabouts
Economy

Financial watchdog to promote Korean fintech firms in Silicon Valley

A promotional image of the Seoul Finance Conference and Fintech Startup Pitch Event that will be held in San Jose, California, Sept. 20 / Courtesy of Invest Seoul By Lee Min-hyungThe Financial Supervisory Service (FSS) plans to hold an investor relations (IR) event in Silicon Valley in the United States next week to raise awareness of Korean fintech firms and attract foreign capital. The Seoul Finance Conference and Fintech Startup Pitch Event will be held on Sept. 20, where a group of 50 startup accelerators and investors will take part to introduce the Korean fintech industry and competitiveness of local startups.The FSS is now supporting four fintech firms' overseas inroads, helping them tap further into the U.S. market by attracting investments there. The watchdog will also hold a conference with its U.S. counterparts, local financial firms and fintech startups there, so the Korean companies can catch up with the latest market trends and regulatory environments

Sep 18, 2022By Lee Min-hyung
Financial watchdog to promote Korean fintech firms in Silicon Valley
Cryptocurrency

Do Kwon faces escalating criticism for vague comments on whereabouts

Terraform Labs co-founder Do Kwon / Courtesy of Kwon's LinkedIn pageBy Lee Min-hyungDo Kwon, co-founder of Terraform Labs, is drawing escalating criticism for making vague comments on his whereabouts without responding to a warrant prosecutors filed for his arrest.“I am not 'on the run' or anything similar ― for any government agency that has shown interest to communicate, we are in full cooperation and we don't have anything to hide,” he said on his Twitter, Sunday.The remarks came in response to Singapore Police Force's latest announcement that Kwon is not residing in the country. He was known to be in the city-state after having a face-to-face interview with crypto media outlet, Coinage, at his office there last month.At that time, he made it clear that he would cooperate with investigations by any authority amid mounting criticism after the stablecoin Terra and sister token Luna collapsed in May.Luna was one of the most promising cryptocurrencies until early this year when its value soared to the world's seventh highest. But its price plunged to a near-zero level in o

Sep 18, 2022By Lee Min-hyung
Do Kwon faces escalating criticism for vague comments on whereabouts
  • Wanted crypto founder Do Kwon says 'not on the run'
  • Terraform founder Do Kwon 'obviously on the run,' prosecutors say
Economy

Is Korea headed for another financial crisis?

Experts say country is more resilient than past, but not immune from crisis, recessionBy Yi Whan-wooA string of economic indicators in Korea this year have worsened to levels comparable to the 1997-98 Asian financial crisis and the 2008-09 global financial crisis, raising questions on whether the country is on course for another crisis after overcoming painful shocks from the two preceding ones.For instance, there was a striking sense of deja vu when some of this year's financial statistics were released. Inflation hit 6.3 percent in July ― the highest since November 1998 when it reached 6.8 percent. Also, the Korean won-dollar exchange rate closed at 1,393.7 won on Sept. 15, the highest since 1,422 won on March 31, 2009. Foreign reserves dropped by $9.4 billion in June, the deepest fall since November 2008 ($11.7 billion). And in August when the country faced the fifth consecutive month of trade deficit, it echoed the longest losing streak in the trade balance seen in April 2008.Correspondingly, the ratio of Korea's short-term foreign debt that matures in a year compared with its fo

Sep 18, 2022By Yi Whan-woo
Is Korea headed for another financial crisis?
Economy

Salaried workers rush to take on multiple jobs amid soaring interest rates

Food delivery is one of the most popular side jobs prevalent in Korea. / gettyimagesbankBy Lee Min-hyungSalaried office workers are in a rush to take on side jobs to make extra money amid the soaring costs of living and rising inflationary pressures. Those in the middle and lower income brackets say holding multiple jobs is necessary during this period of rapid interest rate hikes. The rapid pace of monetary tightening by the Bank of Korea comes as a serious fear factor for most households, as the consecutive set of rate hikes in recent months has pushed them to pay a lot more for mortgage loans. Rising prices have also resulted in a spike in basic costs of living, represented by gas and grocery price hikes. According to data from Statistics Korea, the number of multiple job holders soared to a record high of 629,610 in May. This is eye-catching growth of around 65 percent when compared with the pre-pandemic period in January 2020.An office worker at a mid-sized company here said he had no choice but to have an extra job to afford the soaring costs of living for his three-person hous

Sep 18, 2022By Lee Min-hyung
Salaried workers rush to take on multiple jobs amid soaring interest rates
Economy

IMM decides to unload Missha despite losses

A branch of Missha in Seoul / Courtesy of Able C&C Private equity firm fails to reap profitsBy Anna J. ParkAble C&C, which owns Korea's representative road-shop cosmetics brand Missha, is finally up for sale in the M&A market, five years after IMM Private Equity (IMM PE) purchased a controlling stake in the firm for about 400 billion won ($287 million). While Credit Suisse has been tapped to manage the sales process, the selling price is estimated to be less than half of what IMM PE paid to acquire it, given that the market cap of Able C&C stands at around 171.3 billion won, as of Friday. After acquiring the stake in 2017, IMM PE has been struggling to increase the company's corporate value and profitability. Yet it couldn't overcome the shock from COVID-19 as well as changing market trends such as a growing preference for shopping for cosmetics online and the popularity of multi-brand cosmetics shops. The private equity firm injected nearly 400 billion won into the

Sep 16, 2022By Anna J. Park
IMM decides to unload Missha despite losses
previous page
635636637638639
next page

Most Read in Economy