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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

BOK under growing pressure to take another 'big step' hike over US inflation

Bank of Korea (BOK) Governor Rhee Chang-yon speaks during the latest BOK's rate-setting at the BOK headquarters in central Seoul, Aug. 25. Korea Times fileBy Yi Whan-wooHigher-than-expected inflation in the United States is putting pressure on the Bank of Korea (BOK) to take another “big step” by raising the key interest rate by a half percentage point in the next meeting of its monetary policy board scheduled for Oct. 12. The BOK took an unprecedented “big step” in June but is still applying incremental rate increases, as addressed by its governor Rhee Chang-yong, who recently described the increases as an anti-inflationary measure as well as a long-term response toward hawkish U.S. monetary policy.But whether the BOK can stick to a policy of a 25 basis point rate hike remains in question, as the U.S. Federal Reserve is appears poised to take an “ultra step” in its upcoming rate-setting meeting from Sept. 20 to 21.This could amount to as much as a 1 percent hike since U.S. inflation in August remained stubbornly high ― 8.3 percent ― and raises the

Sep 16, 2022By Yi Whan-woo
BOK under growing pressure to take another 'big step' hike over US inflation
Economy

Economy feared to slow down on high inflation, weak exports: finance ministry

This photo, taken Sept. 13, shows containers stacked at a pier in Korea's southeastern port city of Busan. YonhapThe Korean economy is feared to lose steam as the country is grappling with high inflation and the slowdown in export growth amid growing external uncertainties, the finance ministry said Friday.The gloomy outlook came as the world continued to face downside risks due to fast interest rate hikes by the United States and other major nations, China's strict antivirus steps, and instability in the energy market amid the prolonged war between Russia and Ukraine, the ministry said in its economic assessment report, called the Green Book.The ministry mentioned the possibility of an economic slowdown for the fourth month in a row in the monthly report."Domestic demand has been on a moderate recovery track on the back of improvements in the job market and the in-person service sector. But high inflation has continued, due mainly to external factors, to affect economic sentiment, and export growth has weakened, which sparked concerns over an economic slowdown," the report said.In A

Sep 16, 2022
Economy feared to slow down on high inflation, weak exports: finance ministry
Economy

Won rebounds after hitting yearly low amid global tightening, heightened uncertainty

A currency trader near screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and Korean won at a foreign exchange dealing room in Seoul, Sept. 16 Yonhap Korea's currency rebounded Friday after hitting a new yearly low in intraday trading amid worries over the U.S. Federal Reserve's continued monetary tightening and its impact on the global economy.The local currency closed at 1,388.0 won per dollar, up 5.7 won from the previous session's close. It bounced back near the market close after falling to as low as 1,399.0 earlier in the day amid speculation that foreign exchange authorities may have unloaded dollars to defend the won's value.Market watchers have closely watched the foreign exchange market as the won has been on the decline, flirting with the 1,400 mark that has not been breached for over 13 years.The local currency has depreciated at a fast pace especially in the last few days after latest U

Sep 16, 2022
Won rebounds after hitting yearly low amid global tightening, heightened uncertainty
Economy

Korea adds 807,000 jobs on-year in August, growth slows amid uncertainty

This file photo, taken Aug. 30, 2022, shows people crowded at a job fair in the southern city of Busan. YonhapKorea's unemployment rate hit an all-time low last month, but the pace of job growth slowed down for the third month in a row amid economic uncertainties, data showed Friday.The number of employed people stood at 28.41 million in August, up 807,000 from a year earlier, according to the data compiled by Statistics Korea.It is the highest on-year rise for any August since 2000, when the country added 848,000 jobs from the previous year.The country's job market has improved markedly after being hit by the COVID-19 pandemic, with the number of employed people constantly rising since March last year.But the growth slowed down for the third consecutive month, from 935,000 jobs added in May to 841,000 jobs in June and to 826,000 jobs last month.The country's jobless rate fell 0.5 percentage point on-year to 2.1 percent in August, the lowest level since the statistics agency adopted the current data compiling methods to analyze the job market in 1999.The slowdown in the job growth ca

Sep 16, 2022
Korea adds 807,000 jobs on-year in August, growth slows amid uncertainty
Economy

Brokerages lose credibility due to dearth of sell recommendations

gettyimagesbankBy Yoon Ja-youngThe country's securities firms are losing investors' trust as their analysts are only recommending buying shares in their reports, while sell recommendations account for only 0.13 percent of the total reports.According to Financial Supervisory Service (FSS) data submitted to Rep. Kang Byung-won of the main opposition Democratic Party of Korea, the country's 32 securities firms recommended selling certain company stocks only 32 times in their analysts' reports issued between 2017 and 2021. That is only 0.13 percent of the total reports issued. They recommended buying stocks of certain companies in 88.8 percent of the reports, while being “neutral” in 11 percent of the reports.'This contrasts with foreign brokerages operating in Korea. Among the analyst reports on diverse companies foreign brokerages issued during the same period, they recommended buying in about half of the time, while recommending selling in 15.8 percent of cases.As the local brokerages only recommend buying shares regardless of fluctuations in the market, there have been do

Sep 16, 2022By Yoon Ja-young
Brokerages lose credibility due to dearth of sell recommendations
Economy

FSS chief stresses preemptive risk management for market stability

Financial Supervisory Service (FSS) Governor Lee Bok-hyun speaks to reporters during a press conference held at the FSS' headquarters in Seoul, Thursday. Courtesy of the FSSBy Anna J. Park Financial Supervisory Service (FSS) Governor Lee Bok-hyun reiterated his vows to respond preemptively to the economy's internal and external uncertainties, aiming to maintain financial stability amid the increasingly complex situation. During a press conference on Thursday, which was held to mark the 100th day since his taking the chief position in early June, Governor Lee said the FSS will focus on assessing and managing the potential risk factors of each financial sector. “The FSS will strengthen its checkups by closely cooperating with related agencies and companies, so that risks of short-term liquidity and real estate finances won't translate into threats to the financial system,” Governor Lee said during the press conference. “The FSS is currently working with the Bank of Korea to conduct stress tests on financial companies, based on contingency plans jointly drawn up with t

Sep 15, 2022By Anna J. Park
FSS chief stresses preemptive risk management for market stability
Economy

Household debt soars along with number of borrowers at risk of default

Soaring debt pushes more borrowers to the edgeBy Yi Whan-wooHousehold debt in Korea surged to a record 1,869.4 trillion won ($1.33 trillion) in the second quarter, while the number of borrowers who are at risk of default is also rising sharply due to accelerated hikes in the benchmark interest rate in recent months.According to the Bank of Korea's (BOK) preliminary data, total household debt, including the amount of credit for the purchase of goods and services, increased by 6.4 trillion won from three months earlier to 1,869.4 trillion won at the end of June.It marked a new record since related data started to be compiled in 2003, and also marked a gain for the 38th consecutive quarter.BOK data also showed 4.46 million people borrowed from multiple banks in the first quarter.They accounted for 22.4 percent of those who took out personal loans, up 0.3 of a percentage point from the end of 2021 and the highest level seen since 2012 when relevant data began to be compiled.Of the 4.46 million, those in their 30s or younger accounted for 26.8 percent ― the highest of all surveyed age gro

Sep 15, 2022By Yi Whan-woo
Household debt soars along with number of borrowers at risk of default
Economy

Financial industry's strike plan fails to win support from colleagues

Members of the Korean Financial Industry Union (KFIU) hold banners in front of the headquarters of the Korea Federation of Banks in central Seoul, Wednesday. Newsis By Anna J. Park The Korean Financial Industry Union (KFIU) confirmed its plan to go ahead with an all-out strike from Friday, yet the strike is unlikely to present major setbacks to financial customers, as only a minimal percentage of union members are expected to join the move. According to the KFIU, the industry union, which includes members from both commercial banks and state-run banks, decided last month to go on strike. If the strike takes place as planned, it will be the first financial sector strike in six years, following one in September 2016. The key reason for the strike is the failure to reach an agreement between financial industry employees and management over wage increase rates, along with other issues. The union demanded a 5.2 percent wage increase, while management suggested a signif

Sep 15, 2022By Anna J. Park
Financial industry's strike plan fails to win support from colleagues
Economy

Seoul shares down for 2nd day amid US inflation rout

A currency trader watches computer monitors near the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and Korean won at a foreign exchange dealing room in Seoul, Sept. 15. AP-YonhapKorean stocks closed lower Thursday, paring earlier mild gains, as investors brace for more rounds of rate hikes by the U.S. Federal Reserve after the strong U.S. inflation data. The local currency fell slightly against the U.S. dollar.After starting a tad higher, the benchmark Korea Composite Stock Price Index (KOSPI) slipped 9.59 points, or 0.4 percent, to 2,401.83. Trading volume was moderate at 417.7 million shares worth 7.3 trillion won ($5.23 billion) with decliners outnumbering gainers 437 to 407."If we were to look at the inflation issue in two phases, the first phase of peaking appears to have taken place with the June (consumer price index)," Han Ji-young, an analyst at Kiwoom Securities, said."The point to watch going forward is when the inflation will cool off to a meaningful level ― the 4 percent range ― and we know from the

Sep 15, 2022
Seoul shares down for 2nd day amid US inflation rout
Economy

Financial regulator vows deregulation to meet global standards

Financial Services Commission (FSC) Vice Chairman Kim So-young delivers a keynote speech at a financial policy seminar in Seoul, Sept. 15. YonhapKorea's financial regulator is looking to ease or lift regulations that have caused the undervaluation of the local capital market, a senior official said Thursday."We will find and unshackle the regulations that exist only domestically and not in advanced countries, which have become obsolete and unreasonable, and cannot comply with the latest changes in technology," Financial Services Commission (FSC) Vice Chairman Kim So-young said in a seminar in Seoul. The FSC is considering scrapping the registration system for foreign investors, a key hurdle for the country's inclusion on the Morgan Stanley Capital International (MSCI) index. The registration system requires foreigners to report their identification info to the regulator before trading shares of locally listed companies. "We have many issues under review, such as the foreign investor registration system that has been running since the early 90s and now requires reasonable changes," Ki

Sep 15, 2022
Financial regulator vows deregulation to meet global standards
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