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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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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.

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Economy

Korea to log trade deficit for time being: BOK

This photo shows stacks of containers at a port in the southeastern city of Busan, July 11. YonhapKorea is expected to post a trade deficit for the time being as export growth will likely lose steam as high energy costs could push up import bills amid the global economic slowdown, the central bank said Tuesday.If oil and other raw material prices stabilize, the country's trade balance could improve, given countries that heavily rely on energy imports are commonly suffering from a widening trade deficit, according to the Bank of Korea (BOK).Korea posted a record trade deficit of $9.47 billion in August, extending the shortfall for the fifth straight month amid high energy costs."With global oil prices staying at a high level, the country is expected to see the trade deficit continue for the time being due to eased growth of exports and a rise in imports as the global economy is slowing down," the BOK said.If global oil prices fall by a yearly average of $10 per barrel, Korea's trade deficit could decline by $9.3 billion, the central bank said.Despite an increase in the trade deficit,

Sep 6, 2022
Korea to log trade deficit for time being: BOK
Economy

Short-term foreign debt rises to 10-year high in Q2

U.S. banknotes are stacked up at Hana Bank in Seoul, Monday. YonhapBy Yi Whan-wooThe ratio of Korea's short-term foreign debt that matures in a year compared with its foreign exchange reserves surged to its highest level in 10 years at 41.9 percent in the second quarter, according to the Bank of Korea (BOK), Monday. It is the first time that the short-term foreign debt, which increased $8.9 billion quarter-on-quarter to $183.8 billion, surpassed 40 percent of the reserves since the third quarter of 2012. The ratio once surged to above 70 percent during the 2008 global financial crisis, but continued sliding, to stay below 40 percent for nearly a decade since the fourth quarter of 2012. While the central bank explained that the surging short-term ratio is due to increases in overseas stock and bond investment, it is triggering concerns as the value of Korean won is plunging while the trade deficit is snowballing. As the won's value plunges, Korea should pay more when making debt payments in dollars. Accordingly, Korea's total debt came to $662 billion as of end-June, up $7.9 billion f

Sep 5, 2022By Yi Whan-woo
Short-term foreign debt rises to 10-year high in Q2
Cryptocurrency

Upbit's developer conference set to attract thousands of experts

Dunamu's Upbit Developer Conference 2022 official homepage. Screen capture from Upbit Developer Conference homepageBy Lee Min-hyungUpbit, the nation's largest cryptocurrency exchange, is set to attract thousands of experts from Korea and abroad during its upcoming annual developer conference. The Upbit Developer Conference (UDC) 2022 will kick off its two-day run in the nation's southern port city of Busan on Sept. 22. Dunamu, the operator of Upbit, expects more than 3,000 people ― here and abroad ― to attend the event where a group of 50 officials from the blockchain industry will also deliver speeches on the latest digital trends.The event is one of the nation's largest annual blockchain conferences that will mark its fifth anniversary this year. Upbit has held the conference online for the past two years due to the COVID-19 pandemic. However, the event went offline in 2022 in line with eased social distancing rules.Under the key theme of “Imagine your Blockchain Life,” this year's UDC will start with a welcome speech by Song Chi-hyung, co-founder and chairman of Dunamu

Sep 5, 2022By Lee Min-hyung
Upbit's developer conference set to attract thousands of experts
Economy

Won-dollar rate soars above 1,370

An electronic board set up at a dealing room of Hana Bank headquarters in Seoul shows a rise of the won-dollar exchange rate, Monday. YonhapBy Lee Min-hyungThe Korean won slumped to another low against the U.S. dollar in more than 13 years due to the U.S. Federal Reserve's aggressive monetary tightening gesture. The won-dollar exchange rate soared to a new high of 1,374.7 won per dollar on Monday afternoon. This is the first time since April 1, 2009, that the exchange rate topped the 1,370-won mark. It closed at 1,371.4 won per dollar, Monday, up 8.8 won from the previous trading day.Reacting to Fed Chairman Jerome Powell's reiterated hawkish rhetoric, safer assets have in recent week's regained popularity among investors. The dollar is also widely forecast to remain strong amid a growing likelihood that the Fed's giant rate hike of 75 basis points is likely to occur during its upcoming meeting in September.Amid the soaring exchange rate, leaders of financial authorities held an emergency macroeconomic meeting on Monday. They pledged to take stern measures against any activities dist

Sep 5, 2022By Lee Min-hyung
Won-dollar rate soars above 1,370
Economy

South Korea's population to shrink to 38 million by 2070 amid rising world population

'Nearly half of Koreans will be elderly in 2070'By Yi Whan-wooSouth Korea's population will shrink to 38 million in 2070, down from roughly 52 million this year, according to Statistics Korea, Monday.The demographic trend in Asia's fourth-largest economy is in stark contrast to the world population that will increase to 10.3 billion from 7.97 billion during the cited period. The global population estimate is based on the “World Population Prospects: The 2022 Revision” published by the United Nations.The stats agency forecast that the decline in population will be unavoidable for the entire Korean Peninsula, noting the number of people in North Korea will peak in 2023 and fall afterward.The South Korean population already has been on a downward trajectory since 2021 when it came down to roughly 52 million ― the first since after the government began to compile relevant data in 1949.Accordingly, the combined population of the two Koreas will drop to 61 million in 2070 from 78 million in 2022.The two countries altogether will account for 0.6 percent of the world population i

Sep 5, 2022By Yi Whan-woo
South Korea's population to shrink to 38 million by 2070 amid rising world population
Economy

Current account surplus likely to narrow amid energy costs, slowing demand: minister

Finance Minister Choo Kyung-ho, second from left, speaks with Kim Joo-hyun, second from right, chairman of the Financial Services Commission, ahead of an emergency meeting on macroeconomic situations in Seoul, July 28. The other participants were Bank of Korea Gov. Rhee Chang-yong, left, and Lee Bok-hyun, chief of the Financial Supervisory Service. Yonhap Korea's finance minister said Monday the country's current account surplus could narrow as the trade balance will likely deteriorate amid a hike in energy prices and slowing global demand.Finance Minister Choo Kyung-ho made the remark at the start of an emergency meeting on the economy with the central bank chief and financial regulators to discuss policy coordination amid the won's sharp weakness against the U.S. dollar.Choo said as the current account balance will likely show volatility for the time being due to heightened external economic conditions, the government will closely monitor cross-border capital flow

Sep 5, 2022
Current account surplus likely to narrow amid energy costs, slowing demand: minister
Economy

Won hits over 13-year low per dollar in intraday trading

This photo, taken Sept. 5, shows stock and currency movements depicted on an electronic signboard at a Hana Bank dealing room in Seoul. YonhapThe Korean currency on Monday fell to the 1,370-won level against the U.S. dollar for the first time in more than 13 years during its intraday trading amid the Federal Reserve's aggressive monetary tightening.The local currency had been trading at 1,370.90 as of 11:26 a.m., down 8.30 won from the previous session's close. The won fell to as low as 1,371.90 per dollar at one point.It marked the first time that the won had slid below the 1,370 level against the greenback during intraday trading since April 1, 2009. (Yonhap)

Sep 5, 2022
Won hits over 13-year low per dollar in intraday trading
Economy

Foreign reserves fall in August on strong US dollar

The currency of Euro and US dollar / YonhapKorea's foreign reserves fell in August as the strong U.S. dollar reduced the conversion value of euro and other currency-denominated assets, central bank data showed Monday.The country's foreign reserves came to $436.4 billion as of end-August, down $2.2 billion from the previous month, according to the data provided by the Bank of Korea (BOK).Foreign reserves consist of securities and deposits denominated in overseas currencies, International Monetary Fund reserve positions, special drawing rights and gold bullion.August's fall came after a rebound in July following four months of decline from March to June.The U.S. dollar gained ground as the U.S. Federal Reserve remained steadfast in raising the benchmark rate to fight high-flying inflation. Global energy crunch from the Russian invasion of Ukraine, along with natural disaster in China, also has pushed up the value of the U.S. greenback. Foreign securities, such as Treasurys, were valued at $394.9 billion as of end-August, up $3.1 billion from the previous month. It accounted for 90.5 pe

Sep 5, 2022
Foreign reserves fall in August on strong US dollar
Economy

Retail investors can exercise right to sell shares when listed firms split

Financial Services Commission Chairman Kim Joo-hyun, left, talks with Financial Supervisory Service Governor Lee Bok-hyun during a seminar at the National Assembly in Seoul, Aug. 11. Joint Press Corps-YonhapBy Lee Min-hyungFinancial watchdogs introduced Sunday a set of protective measures ensuring the rights of minority shareholders when listed firms divest a business unit. The latest decision came amid growing calls to protect retail investors when big companies split off a unit, in which case investors cannot receive any stocks for the newly split-off unit. Of particular concern was the fact that some of the parent firms' stock prices fell sharply after being physically divided, which sparked concerns that a number of retail investors would fall victim in the end.For instance, LG Chem shareholders suffered damage after the firm decided to split off its battery business and launch LG Energy Solution. After the new subsidiary went public on the local stock market in January 2022, the stock price of the parent firm plummeted.However, retail investors will now be able to sell off their

Sep 5, 2022By Lee Min-hyung
Retail investors can exercise right to sell shares when listed firms split
Economy

Foreigners' net stock buying reaches nearly 4 trillion won in Aug.

This photo shows the dealing room of Hana Bank in Myeongdong, central Seoul, after the market closed, Sept. 2. YonhapForeigners' net stock purchases reached nearly 4 trillion won ($2.9 billion) in the Korean stock markets last month despite the won's weakness against the dollar, data showed Sunday.In August, foreigners bought 3.98 trillion won worth of stocks in the main KOSPI, tech-heavy KOSDAQ and small businesses-focused KONEX markets, according to the Korea Exchange (KRX). Among individual shares, foreigners bought 578.8 billion won worth of LG Energy Solution stocks, 241.7 billion won worth of SK hynix stocks and 131.4 billion won worth of Samsung Electronics stocks.Foreigners were net buyers in the past two months, with their stock purchases at 1.79 trillion won in July. But they turned net sellers this month, selling 674.8 billion won of stocks on Thursday and Friday amid the won's accelerating weakness against the greenback. The dollar rose to 1,350 won on Aug. 29 and continued to strengthen to 1,362.6 won on Sept. 2, the weakest level in nearly 14 years since April 1, 2009,

Sep 4, 2022
Foreigners' net stock buying reaches nearly 4 trillion won in Aug.
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