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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 shares open marginally higher after US inflation rout

Electronic signboards at a Hana Bank branch in central Seoul show the main KOSPI stock market index and the won-dollar exchange rate, Sept. 15. YonhapKorean stocks opened marginally higher Thursday, after the previous day's steep fall on fears over more rounds of aggressive rate hikes by the U.S. Federal Reserve following the strong U.S. inflation data. The benchmark Korea Composite Stock Price Index (KOSPI) was up 1.51 points, or 0.06 percent, to 2,412.93 in the first 15 minutes of trading. Wall Street managed to end higher Wednesday (local time) after wavering between gains and losses, as investors chose to take a pause following the market jolt over the stronger-than-expected U.S. consumer price index for August. The inflation data dented hopes that the Fed may scale back its aggressive monetary tightening and possibly ease up on the future rate hikes after next week's rate-setting meeting. Analysts believe the Fed will go with a .75 percentage-point increase this month, with some betting on a full percentage-point hike. In Seoul, shares traded mixed. Top-cap Samsung Electronics f

Sep 15, 2022
Seoul shares open marginally higher after US inflation rout
Economy

Korean won, stocks slump following Wall Street plunge

An electronic board in a dealing room at Hana Bank's headquarters in Seoul shows the main KOSPI index closing at 2,411.42 points, Wednesday, down 1.56 percent from the previous session, while the value of the Korean currency weakened by 17.3 won to 1,390.9 won per dollar. YonhapWon-dollar rate soars above 1,390 amid renewed inflation risksBy Lee Min-hyungThe Korean won and stocks tumbled Wednesday in the wake of an overnight plunge on Wall Street following the release of higher-than-expected U.S. inflation data, which has fanned worries that the Federal Reserve will opt for more aggressive interest rate hikes.The local currency weakened to the lowest level in more than 13 years, with the won-dollar exchange rate closing at 1,390.9 won per dollar, up 17.3 won from the previous trading day. It was the first time that the rate closed above 1,390 won since March 31, 2009.The benchmark KOSPI ended down 1.56 percent at 2,411.42 points. The secondary Kosdaq also dipped to 782.92, down 1.74 percent from the previous session.The U.S. Labor Department reported that overall consumer prices jump

Sep 14, 2022By Lee Min-hyung
Korean won, stocks slump following Wall Street plunge
Economy

Crypto assets worth nearly $2.8 billion used for foreign exchange crimes: customs data

By Yi Whan-wooCrypto assets worth nearly 4 trillion won ($2.87 billion) have been used for crimes concerning foreign exchange for past five years, a Korea Customs Service data showed Wednesday.The data was cited by Rep. Kang Byung-won of the main opposition Democratic Party of Korea (DPK).The amount accounts for 28 percent of all forex-related crimes, raising concerns over an increase in the misuse of virtual assets.By country, 541 cases of cyber currency-based foreign exchange crimes were found between Korea and Japan, 193 with China, 168 with the United States and 155 with Hong Kong.By amount, crypto assets worth 2.9 trillion won were linked to crimes in China, 1.5 trillion won were linked to crimes in Hong Kong, 600 billion won to crimes in Japan and 400 billion won to crimes in the Philippines.“It is crucial for the Financial Services Commission and Financial Supervisory Service to cooperate with investigative bodies so that it can enhance policing of forex crimes,” Rep. Kang said, adding that developing

Sep 14, 2022By Yi Whan-woo
Crypto assets worth nearly $2.8 billion used for foreign exchange crimes: customs data
Economy

PEFs face challenges raising capital

gettyimagesbank Capital commitment decreases, while number of PEFs reaches all-time highBy Anna J. ParkThe amount of capital committed for fundraising by local private equity firms (PEFs) has plunged this year, amid soaring global interest rates and increasing economic uncertainty.According to data by the Financial Supervisory Service (FSS), the amount of newly committed capital for local PEFs during the first quarter of this year stood at 2.7 trillion won ($1.94 billion), which is only about a third of the 8.19 trillion won committed during the fourth quarter of 2021. While major PEFs are said to be struggling to solicit capital commitments from institutional investors for their private equity funds due to deteriorating external economic conditions, the number of local PEFs reached an all-time high of 1,080 as of the first quarter this year. This means the private equity sector might face a painful restructuring phase in the years to come.Market insiders say the de

Sep 14, 2022By Anna J. Park
PEFs face challenges raising capital
Economy

Seoul shares down nearly 1.5% in late Wed. morning trade

An electronic signboard, left, in the dealing room of Hana Bank in Seoul shows the benchmark Korea Composite Stock Price Index (KOSPI), Sept 14. YonhapKorean stocks traded 1.48 percent lower late Wednesday morning amid market jitters over the U.S. inflation data that would prod the Federal Reserve to stay hawkish on its rate hikes.The Korea Composite Stock Price Index (KOSPI) fell 36.32 points to 2,413.22 as of 11:20 a.m.Market bellwether Samsung Electronics slid about 2 percent and biopharmaceutical giant Celltrion slumped around 4 percent.Battery makers, however, turned to positive terrain. Top player LG Energy Solution was up 0.5 percent and Samsung SDI gained nearly 1 percent.POSCO Chemical, an arm of steel giant POSCO that produces battery components, jumped more than 2 percent.The local currency was changing hands at 1,391.10 won against the greenback as of 11:20 a.m., down 17.5 won from Tuesday's close. (Yonhap)

Sep 14, 2022
Seoul shares down nearly 1.5% in late Wed. morning trade
  • Won hits over 13-year low following disappointing US inflation data
Economy

Won hits over 13-year low following disappointing US inflation data

An electric signboard at the headquarters of Hana Bank in Seoul shows the Korean won changing hands with the U.S. dollar at 1,392.30, Sept. 14. YonhapThe Korean currency on Wednesday tumbled below the 1,390-won mark against the greenback for the first time in over 13 years as the higher-than-expected inflation data in the United States stoked worries over the Federal Reserve's more aggressive monetary tightening. The local currency had been trading at 1,394.7 won against the U.S. dollar as of 9:26 a.m., down 21.1 won from the previous session's close. The won dipped to as low as 1,395 at one point. This marked the first time the won has fallen through the 1,390-won mark since March 31, 2009. The tumble came hours after the U.S. government announced the country's consumer price index jumped 8.3 percent in August from a year earlier, higher than market expectations of an 8 percent rise.The latest inflation data disappointed investors hoping to see eased inflation pressure in consideration of recent oil price declines and stoked worries the Federal Reserve will push for more aggressive

Sep 14, 2022
Won hits over 13-year low following disappointing US inflation data
  • Seoul shares down nearly 1.5% in late Wed. morning trade
Economy

McDonald's Korea initiates sale procedure for M&A market

A McDonald's branch in Seoul / NewsisBy Anna J. Park While major burger franchises in Korea, including Mom's Touch and Burger King Korea, are expected to be put up for sale soon, McDonald's Korea has become the first to officially initiate the selling process.According to the investment industry Tuesday, Mirae Asset Securities ― the organizer of the sale of McDonald's Korea ― has recently sent an investment teaser letter to potential buyers. The 100 percent stake in McDonald's Korea held by McDonald's APMEA Singapore Investments will be up for sale. The 13-page letter stressed the dominant market position of McDonald's Korea in the domestic burger market, as well as its further growth potential. The document stated that McDonald's Korea maintains the top market share in the local franchise burger industry, despite the fact that McDonald's operates only about 400 branches nationwide. The number of branches across the country is way smaller than those of its competitors like Mom's Touch and Lotteria, which each operate over 1,300 branches in the country. Burger King also operates about

Sep 14, 2022By Anna J. Park
McDonald's Korea initiates sale procedure for M&A market
Economy

Monthly US consumer prices unexpectedly rise in August; core inflation picks up

Gas prices are displayed at a Pilot gas station in Bensenville, Illinois, Monday. AFP-YonhapMonthly U.S consumer prices unexpectedly rose in August as declining gasoline prices were offset by gains in the costs of rent and food, giving cover for the Federal Reserve to deliver another hefty interest rate increase next Wednesday.The consumer price index gained 0.1 percent last month after being unchanged in July, the Labor Department said on Tuesday. Economists polled by Reuters had forecast the CPI dipping 0.1 percent.In the 12 months through August, the CPI increased 8.3 percent. That was deceleration from the July's 8.5 percent rise. The annual CPI peaked at 9.1 percent in June, which was the biggest gain since November 1981.Overall inflation is slowing as goods prices retreat after surging earlier this year amid a loosening of bottlenecks in global supply chains and a shift in spending back to services.U.S. gasoline prices have plunged from an average record high above $5 per gallon in June, according to data from AAA. They were averaging $3.707 per gallon on Tuesday.Fed officials

Sep 13, 2022
Monthly US consumer prices unexpectedly rise in August; core inflation picks up
  • Wall Street posts biggest plunge in two years following inflation data
Economy

Hana Financial joins preliminary bidding for acquiring Lotte Card

Lotte Card's headquarters in central Seoul / Courtesy of Lotte CardMBK Partners seeks to sell 59.83% stake in Lotte CardBy Anna J. ParkHana Financial Group turns out to be the only major financial group that has joined a preliminary round of bidding for acquiring Lotte Card that ended last week. Other major candidates that the market had previously anticipated to see joining in the acquisition race, such as Shinhan Financial, KT, Toss Bank and Woori Bank, are said to have not participated in the preliminary bidding. According to local credit card industry sources, Hana Financial Group along with some strategic investors joined last week's preliminary bidding to acquire a 59.83 percent stake in Lotte Card owned by private equity firm MBK Partners. JPMorgan organized the process of the preliminary bidding round. Hana Financial as well as MBK Partners both declined to confirm any facts about the bidding process, only saying there's nothing that they can publicly offer. But sources familiar with the issue said Hana's participation is aimed at strengthening its non-banking businesses. In

Sep 13, 2022By Anna J. Park
Hana Financial joins preliminary bidding for acquiring Lotte Card
Economy

Korea plans to lower fiscal deficit to less than 3% of GDP

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho speaks as he presides over an emergency meeting of economy-related ministers at Government Complex Seoul, Tuesday. YonhapBy Yi Whan-wooThe government said Tuesday that it will place a 3-percent ceiling on the ratio of fiscal deficit to gross domestic product (GDP) as part of a shift to a belt-tightening mode to improve fiscal health, in contrast to the pandemic-era stimulus policy embraced by the previous Moon Jae-in administration.It also said it will bring down the fiscal deficit-to-GDP ratio below 2 percent if the amount of national debt exceeds 60 percent of GDP.A fiscal deficit refers to a shortfall in the government's revenue compared to spending in a given year, while national debt refers to the accumulated amount of borrowing by the government to make up for such shortfalls over several years.Announced during an emergency meeting of economy-related ministers, the Yoon Suk-yeol administration's plan to curb the fiscal deficit is a part of envisioned regulations being legislated to curb snowballing national

Sep 13, 2022By Yi Whan-woo
Korea plans to lower fiscal deficit to less than 3% of GDP
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