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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

Exports up 6.6% in August; trade deficit extended for 5th month

This photo shows containers stacked at a pier in Korea's southeastern port city of Busan, Aug. 22. YonhapKorea suffered a trade deficit for the fifth consecutive month in August for the first time in nearly 14 years on high global energy prices, though its exports rose 6.6 percent on-year, data showed Thursday.Outbound shipments stood at $56.67 billion last month, up from $53.2 billion a year earlier, according to the data compiled by the Ministry of Trade, Industry and Energy.It is the highest tally for any August since the ministry began compiling related data in 1956. The previous record was set a year earlier.August also marked the 22nd consecutive month that the country's exports have logged an on-year expansion.But the country posted a trade deficit of $9.47 billion last month, as imports jumped 28.2 percent on-year to $66.15 billion on soaring global energy prices.Imports have exceeded exports in Korea since April, and it is the first time since 2008 that the country suffered a trade deficit for five months in a row.Korea depends on imports for most of its energy needs, and th

Sep 1, 2022
Exports up 6.6% in August; trade deficit extended for 5th month
Economy

Korea's economy grows 0.7% in Q2: BOK data

The shopping district of Myeongdong in Seoul bustles with people in this May 1 photo. YonhapKorea's economy grew at a faster pace in the second quarter of this year thanks to a pickup in private spending bolstered by eased coronavirus restrictions, central bank data showed Thursday.The country's gross domestic product (GDP) ― a key measure of economic growth ― increased 0.7 percent in the April-June period from three months earlier, according to the preliminary data from the Bank of Korea (BOK). The growth slightly quickened from the previous quarter's 0.6 percent rise.The latest figure was unchanged from the BOK's earlier estimate announced in late July. The revision reflected updates in data on industrial output and other key economic indicators. The faster on-quarter growth is attributed to a robust increase in private spending that has been bolstered by eased pandemic-related restrictions.In mid-April, South Korea lifted most COVID-19 restrictions, except the mask mandate, as part of efforts to return to pre-pandemic life.Private spending expanded 2.9 percent on-quarter in the se

Sep 1, 2022
Korea's economy grows 0.7% in Q2: BOK data
Economy

Industry minister calls for US' measure to address concerns over inflation law

Industry Minister Lee Chang-yang, right, stands next to U.S. Ambassador to Korea Philip Seth Goldberg at the government complex in central Seoul, Wednesday. Courtesy of Ministry of Trade, Industry and EnergyKorea's Industry Minister Lee Chang-yang met with U.S. Ambassador to Seoul Philip Goldberg, Wednesday, and called for measures to swiftly address concerns over a new U.S. law that excludes electric vehicles (EVs) assembled outside North America from tax incentives, Lee's office said.The Inflation Reduction Law (IRA), signed by U.S. President Joe Biden earlier this month, calls for the expansion of tax subsidies for EV purchases, but only for those assembled in North America.Concerns over its discriminatory nature have mounted in Korea, as its carmakers, including Hyundai Motor and Kia, assemble their flagship EV models at domestic plants and ship them overseas.During the meeting, Lee delivered concerns from Korea's government and industry, and asked for active bilateral consultations to resolve the issue."The bilateral economic ties, particularly in terms of supply chains and adva

Aug 31, 2022
Industry minister calls for US' measure to address concerns over inflation law
Economy

Korea to challenge Int'l tribunal decision on Lone Star suit

Justice Minister Han Dong-hoon addresses a ruling by the International Centre for Settlement of Investment Disputes (ICSID), during a press briefing held at the government complex in Gwacheon, Wednesday afternoon. YonhapInt'l tribunal orders Korean gov't to pay US private equity firm $216.5 mil.By Anna J. ParkKorea will request the cancellation of an international tribunal's decision ordering it to pay U.S. private equity Lone Star Funds $216.5 million plus interest over a dispute that began more than a decade ago, the Korean government said Wednesday. "Although the award at the court acknowledged only a partial amount of what Lone Star claimed, the Korean government finds it hard to fully accept the ruling," Justice Minister Han Dong-hoon said during a press briefing, Wednesday.“The government will seek to file for its cancellation or suspension of implementation. We cannot waste a single penny of taxpayer money.”The briefing came a few hours after the Washington-based International Centre for Settlement of Investment Disputes (ICSID) delivered a long-awaited verdict on

Aug 31, 2022By Anna J. Park
Korea to challenge Int'l tribunal decision on Lone Star suit
  • Ill-fated relationship between key officials and Lone Star draws focus
Economy

Ill-fated relationship between key officials and Lone Star draws focus

From left are Prime Minister Han Duck-soo, Finance Minister Choo Kyung-ho and Bank of Korea Governor Rhee Chang-yong. YonhapBy Lee Min-hyungHigh-ranking political and financial officials mired in a decades-long suit between the Korean government and Lone Star are in the hot seat after Korea has been ordered to pay the U.S. private equity firm $216.5 million (289.76 billion won). After the ruling from the International Centre for Settlement of Investment Dispute, Wednesday, public ire is escalating concerning some of the high-level figures amid growing calls that they are at least in part responsible for the latest verdict.The officials include: Prime Minister Han Duck-soo, Finance Minister Choo Kyung-ho and Bank of Korea Governor Rhee Chang-yong ― all of whom were directly or indirectly engaged in the lawsuit.Prime Minister Han served as a former advisor to the nation's top law firm, Kim & Chang, which represented Lone Star in 2003 when the U.S. firm acquired a controlling stake in the former Korea Exchange Bank. Han is facing criticism that he allegedly exerted his influence on

Aug 31, 2022By Lee Min-hyung
Ill-fated relationship between key officials and Lone Star draws focus
  • Korea to challenge Int'l tribunal decision on Lone Star suit
  • Lone Star disappointed in amount of award over dispute with Korea
Economy

Oil stocks plunge on international price fall

Prices are displayed at a petrol station in Seoul on Aug. 21. YonhapBy Lee Min-hyungOil stocks here plunged Wednesday amid falling crude oil prices caused by fears of possibly diminished oil demand due to global economic uncertainties. According to data from the New York Mercantile Exchange, the West Texas Intermediate for October delivery came in at 91.64 dollars a barrel, a drop of 5.5 percent from the previous trading day.In response, shares of Korea's major oil refiners plummeted soon after the opening of the stock market. S-Oil, the nation's major petroleum and refinery firm, fell by more than 4 percent on Wednesday morning, hit hard by external market uncertainty. S-Oil shares closed at 101,500 won, a drop of 3.33 percent from a day earlier, on the main bourse here.Other oil stocks ― such as SK Innovation, GS and Kumho Petrochemical ― also extended losses on the same day for a similar reason. SK Innovation shares finished at 190,000 won, down 3.31 percent during the same period. The stock price of GS also ended with a loss of 1.29 percent. The oil price plunge was attributable

Aug 31, 2022By Lee Min-hyung
Oil stocks plunge on international price fall
Economy

Production, consumption, facility investments all drop in July

Vegetables are stacked up at a traditional market in North Chungcheong Province, Wednesday, when Statistics Korea announced a joint decline of industrial output, retail sales and facility investment for the first time in three months for July. YonhapBy Yi Whan-wooThe country's industrial output, retail sales and facility investments simultaneously fell into negative figures for the first time in three months in July, according to Statistics Korea, Wednesday, prompting concerns that the path for economic recovery is being increasingly disrupted by downside risks here and abroad.Analysts said Asia's fourth-largest economy may slow down further in the medium term, although it may still manage to reach its annual growth target for 2022.They noted both industrial output and facility investments are gauges of exports, while retail sales is a gauge of spending, although not of spending on services.Exports and consumption have underpinned growth in the first half, and the July readings suggest the two economic barometers face downward pressure stemming from global recession fears, soaring in

Aug 31, 2022By Yi Whan-woo
Production, consumption, facility investments all drop in July
Economy

Korea to offer record trade financing to exporters to prop up exports

Containers on the platform of Busan Port. YonhapKorea said Wednesday it plans to provide up to a record 351 trillion won ($260 billion) in trade financing to local exporters in an effort to bolster exports amid a widening trade deficit.The government also picked a decline in exports to China, falling chip prices and high energy costs as three major risks to the country's trade and plans to strengthen the management of such risks, according to the industry ministry.The measure was announced as the country's trade balance deteriorated mainly because imports grew at a faster pace than exports due to high energy costs.Korea's exports, the main driver for economic growth, rose 9.4 percent on-year in July, marking the 21st consecutive month of growth.But the nation suffered a trade deficit for the fourth straight month as high oil and commodity prices pushed up the country's import bills.The ministry said exports will likely hit a record high this year to exceed the $644.4 billion tallied for last year, but export growth is expected to slow down in the second half due to the global economi

Aug 31, 2022
Korea to offer record trade financing to exporters to prop up exports
  • Yoon vows to increase support for export industries
Economy

Korea's trade terms down for 16th month in July

A port in Korea's southeastern city of Busan, May 23 / YonhapKorea's terms of trade sank for 16 months in a row in July as import costs rose faster than export prices, central bank data showed Wednesday.The nation's net terms-of-trade index for goods ― a gauge of overall trade terms ― fell 11.4 percent last month from a year earlier, according to the preliminary data from the Bank of Korea (BOK).From the previous month, the figure was down 3.1 percent.The index is calculated by dividing the index for export prices by that for import prices. It shows the amount of imports a country can buy for each unit of exports. Import prices of oil and key commodities have risen sharply amid the protracted global supply-chain disruptions and a rebound in demand from the pandemic.Import prices jumped 22.7 percent on-year in July, while export prices gained 8.1 percent over the same period. (Yonhap)

Aug 31, 2022
Korea's trade terms down for 16th month in July
Economy

Korea's currency falls to new yearly low amid monetary tightening, recession woes

An electronic signboard in the dealing room of Hana Bank in Seoul, Aug 31. YonhapThe Korean currency fell to a new yearly low in intraday trading on Wednesday amid growing concerns over monetary tightening in the U.S. and the possibility of global economic slowdown. The local currency was trading at 1,349.5 won against the U.S. dollar as of 9:49 a.m., down 2.8 from the previous day's close. The won fell to as low as 1,352.3 per dollar at one point, which marked this year's weakest level after it hit an intraday yearly low of 1,350.8 on Monday. The won has been under downward pressure as the U.S. Federal Reserve has accelerated interest rate hikes to tame runaway inflation. The won has depreciated around 12 percent so far this year.The Fed's monetary tightening and growing worries over an economic recession in the U.S. have pushed up the value of the dollar, which is regarded as a safe asset. Fed Chair Jerome Powell's hawkish remarks at the recent Jackson Hole meeting also deepened market anxiety. He said the Fed will raise interest rates "for some time" to tame inflation and the move

Aug 31, 2022
Korea's currency falls to new yearly low amid monetary tightening, recession woes
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