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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

Banks' household loans up in Aug. amid increased home-backed lending

A customer gets loan consultation at a commercial bank in Seoul, Sept. 5. NewsisHousehold loans extended by banks in Korea rebounded in August from the previous month's dip due in part to increased home-backed borrowing, central bank data showed Thursday.Banks' outstanding household loans came to 1,060.8 trillion won ($771.2 billion) as of end-August, up 300 billion won from a month earlier, according to the data from the Bank of Korea (BOK).The on-month rise followed a 300 billion-won decline tallied the previous month, which marked the first shrinkage in four months. It came despite the central bank's aggressive rate hikes to tame inflation, driving up overall borrowing costs at financial institutions.August's rebound came in part from a rise in home-backed loans, which expanded 1.6 trillion won to 792.6 trillion won, the data showed.Other types of loans, including unsecured lending, declined 1.3 trillion won to 266.8 trillion won.Banks' corporate loans, meanwhile, grew for the eighth straight month in August.Outstanding loans to businesses stood at 1,146.1 trillion won as of end-A

Sep 8, 2022
Banks' household loans up in Aug. amid increased home-backed lending
Economy

Monetary policy should focus on anchoring inflation expectations at stable point: BOK

A shopper browses processed food products at a supermarket in Seoul, Aug. 10. NewsisKorea's monetary policy needs to focus on anchoring inflation expectations at a stable point in a bid to preemptively prevent unstable sentiment among economic players from causing already high inflation to further rise, a central bank report said Thursday.In the report submitted to the parliament to explain past monetary policy decisions and provide future policy directions, the Bank of Korea (BOK) said that high inflation will likely continue for a longer-than-expected period since recently elevated inflation expectations could result in accelerating price growth."As inflation in the 5-6 percent range persists and inflation expectations among economic players are on the rise, the possibility has been raised that high inflation could be here to stay for a longer-than-expected period," the report said."Inflation expectations ― a gauge of economic players' expectations of future price growth ― could be reflected in the process of determining wages and product prices, thereby possibly affecting inflatio

Sep 8, 2022
Monetary policy should focus on anchoring inflation expectations at stable point: BOK
Economy

Korea likely to suffer current account deficit in August

Korean won sinks to 1,380 level against dollar for 1st time in over 13 yearsBy Lee Min-hyungKorea's current account balance is likely to shift to a deficit in August amid falling exports to China and soaring import costs for raw materials, the Bank of Korea said Wednesday.According to data from the central bank, Korea's current account posted a surplus of $1.09 billion (1.5 trillion won) in July, down $6.62 billion from the year before. This is the largest decline in more than a decade since May 2011.This was because the goods balance, a key barometer determining the nation's current account surplus, turned into a deficit during the same period. The goods balance came in at a deficit of $1.18 billion in July, down $6.73 billion from the previous year, on soaring energy import costs and raw material price hikes, according to the central bank.Containers are stacked up at a port in Busan, Wednesday. YonhapThe BOK left open the possibility of a current account deficit in August for the first time since April, when the current account reported a deficit of $80 million amid a trade deficit

Sep 7, 2022By Lee Min-hyung
Korea likely to suffer current account deficit in August
Economy

Korea's current account surplus plunges as goods balance turns red amid soaring import bills

Inbound containers are stacked up at Gamman Quay in Busan, June 21. YonhapKorea posted a current account surplus for the third straight month in July, but the surplus plunged as the goods balance turned red for the first time in about 10 years due to fast-rising import costs of energy and other commodities, central bank data showed Wednesday.The country's current account surplus came to $1.09 billion in July, compared with a surplus of $5.61 billion posted a month earlier, according to the preliminary data from the Bank of Korea (BOK).The July surplus was also much smaller than the same month a year earlier when the country logged a surplus of $7.71 billion, the data showed. In the January-July period, the country's cumulative surplus nearly halved to $25.87 billion from a surplus of $49.46 billion tallied the same period a year earlier. The sharp decline came as the country's import bills mounted at a faster pace than overseas shipments driven by high energy and commodity prices amid the global supply chain disruptions exasperated by the ongoing war in Ukraine.The country imported $

Sep 7, 2022
Korea's current account surplus plunges as goods balance turns red amid soaring import bills
Economy

Won dips below 1,380 level per dollar for 1st time in more than 13 years

This photo, taken Sept. 6, shows stock and currency movements depicted at an electronic signboard at a Hana Bank dealing room in Seoul. YonhapThe Korean currency on Wednesday declined below the 1,380-won level against the U.S. dollar for the first time in more than 13 years during intraday trading amid a sharp decline in the country's current account surplus.The local currency was trading at 1,383 per dollar as of 9:20 a.m., down 11.30 won from the previous session's close.After the market opened, the won slid to as low as 1,383.60 against the greenback at one point.It marked the first time that the Korean currency plunged below 1,380 against the dollar since April 1, 2009.Korea posted a current account surplus for the third straight month in July, but the surplus sharply fell as the goods balance logged a deficit for the first time in about 10 years, central bank data showed.The current account surplus came to $1.09 billion in July, compared with a surplus of $5.61 billion posted in June. Korea's widening trade deficit has exerted downward pressure on the local currency. The won has

Sep 7, 2022
Won dips below 1,380 level per dollar for 1st time in more than 13 years
Economy

Korea should raise the official age of senior citizens to 73: researcher

gettyimagesbankBy Yoon Ja-youngIn Korea, people are categorized as senior citizens once they reach 65. In the future, they may have to wait until 73 to be defined as such, as a research think tank suggested raising the official age of senior citizens in an attempt to reduce social welfare spending. Lee Tae-suk, director of the department of public finance and social policy at the Korea Development Institute (KDI), noted in a report published on Tuesday that Korea will see the steepest rise in its old-age dependency ratio among OECD member countries over the next 30 to 40 years. The ratio compares the number of elderly people aged 65 or older with the working age population, or those from 15 to 64. While Korea's fertility rate is the lowest in the world, with around 0.8 babies born per woman, the average life expectancy of 83.7 here is long compared with most other countries, the researcher points out. The proportion of senior citizens is thus expected to rise to the world's highest level. “Korea was once the youngest country among the OECD, but it is now transforming into the o

Sep 7, 2022By Yoon Ja-young
Korea should raise the official age of senior citizens to 73: researcher
Economy

No problem with Korea's foreign currency liquidity: top financial regulator

Lee Bok-hyun, head of the Financial Supervisory Service / YonhapThere is no problem with Korea's current foreign liquidity position in the face of mounting volatility in financial markets, including the won's recent plunge, a top financial regulator said Tuesday."As far as I know, the government has no intention to intervene in the market where exchange rates are determined," Lee Bok-hyun, head of the Financial Supervisory Service (FSS), told reporters after attending a consulting event for self-employed people in Seoul. "The FSS just keeps tabs on foreign currency liquidity on a daily basis as part of market stabilization efforts," he added. "I don't think there is any foreign liquidity problem."The local currency closed at 1371.7 won against the U.S. dollar on Tuesday, the lowest level in about 13 years. The won has been sharply losing ground against the greenback amid fast monetary tightening in the U.S. and the possibility of a global economic recession.The slide prompted the foreign exchange market authorities to voice ramped-up warnings against herd behavior, signaling an inten

Sep 6, 2022
No problem with Korea's foreign currency liquidity: top financial regulator
Economy

FSS to establish hotlines with banks to monitor foreign liquidity

The headquarters of the Financial Supervisory Service located on Yeouido, Seoul / YonhapBy Anna J. ParkAs the won-dollar foreign exchange rate continues to skyrocket, the Financial Supervisory Service (FSS) has decided to monitor local banks as well as the local operations of foreign banks for their preparations in foreign reserves.The FSS held a meeting, Tuesday, with local major commercial banks and foreign banks' Seoul operations, including JPMorgan, Deutsche and BNP Paribas, to discuss their contingency plans amid the increased volatility in the market. In their discussion about the current market situation, the participants said that current foreign reserves and foreign currency swap markets in the country are estimated to remain stable, unlike the situation witnessed back in 2008 during the global financial crisis. Yet, they expressed concerns that the dollar's strength is likely to continue, given that the current foreign exchange rate reflects externally unfavorable economic factors, such as the global recessional cycle and the reduction of global trade. The won-dollar exchan

Sep 6, 2022By Anna J. Park
FSS to establish hotlines with banks to monitor foreign liquidity
Economy

Korean won continues to lose ground against US dollar

An electronic signboard in the dealing room of Hana Bank in Seoul shows the benchmark Korea Composite Stock Price Index (KOSPI), Sept 6. YonhapSeoul shares closed higher on Tuesday, snapping a three-day losing streak, as individuals scooped up large-cap stocks amid concerns over the Federal Reserve's aggressive rate hikes and a global recession. The Korean won tumbled to an over 13-year low against the U.S. dollar.After choppy trading, the Korea Composite Stock Price Index (KOSPI) rose 0.26 percent, or 6.34 points, to 2,410.02. Trading volume was moderate at 283.43 million shares worth 5.34 trillion won ($3.9 billion), with gainers outpacing decliners 606 to 249.Individuals bought a net 86 billion won worth of stocks, offsetting institutions and foreigners' combined selling valued at 93 billion won.With few fresh-market moving events, retail investors' stock purchases underpinned the main index, analysts said. Tech, auto and shipbuilding stocks led gains. Market bellwether Samsung Electronics closed flat at 57,100 won, and No. 2 chipmaker SK hynix rose 0.8 percent to 91,800 won.Top c

Sep 6, 2022
Korean won continues to lose ground against US dollar
Economy

Bank stocks in doldrums as tighter regulations offset rate hike effect

By Lee Min-hyungBank stocks have taken a battering in recent months, as tighter regulatory hurdles have aggravated investor sentiment despite rapid interest rate hikes, analysts said.Financial stocks are considered key beneficiaries of monetary tightening, as their cash-cow interest profit rises in line with key rate hikes.But shares of Korea's top four financial holding firms remained bearish from the beginning of June despite aggressive rate rises from the U.S. Federal Reserve and the Bank of Korea. According to data from the Korea Exchange (KRX), shares of KB Financial Group hit this year's high of 66,400 won per share in late February, but have since shown a downward trajectory. The stock price of KB closed at 48,150 won per share, Tuesday, up 0.1 percent from the previous trading day.Other top-tier financial firms such as Shinhan, Hana and Woori displayed similar patterns in their stock prices. Shinhan shares soared to 43,450 won in early June, but have since been on a steep decline. The firm's stock closed at 34,650 won per share, down 0.29 percent from a day earlier.Starting f

Sep 6, 2022By Lee Min-hyung
Bank stocks in doldrums as tighter regulations offset rate hike effect
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