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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
  • 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
  • Economy

    Korea diversifying LNG imports to ease Middle East dependence: KOGAS chief

    1 MIN READBy Yonhap
    Korea diversifying LNG imports to ease Middle East dependence: KOGAS chief
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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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Cryptocurrency

Crypto exchanges suffer earnings falls amid rate hikes, freezing sentiment

From left are the Upbit logo displayed in front of Dunamu headquarters and Bithumb's customer service center in Seoul. YonhapBy Lee Min-hyungKorea's cryptocurrency exchanges reported drastic earnings falls in the first half of this year, hit hard by freezing investor sentiment amid global monetary tightening.According to data from the Financial Supervisory Service (FSS), Dunamu reported 785 billion won in sales during the same period, down 61.3 percent from a year ago when the crypto investment boom reached its peak. Dunamu is the operator of the nation's largest crypto exchange, Upbit.The firm's net profit came in at 172.8 billion won, down 88.2 percent from a year ago. This was a combination of a 206.8 billion won net profit in the first quarter and a 34 billion won net loss in the second.The falling revenue is attributable to increasingly bearish investor sentiment in the crypto market after the U.S. Federal Reserve and global monetary authorities started their aggressive interest rate hikes. Even if most asset markets including stocks suffered big losses here and abroad, the cryp

Aug 31, 2022By Lee Min-hyung
Crypto exchanges suffer earnings falls amid rate hikes, freezing sentiment
Economy

Korea shifts to belt-tightening mode by cutting budget for first time in 13 years

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho gives a preliminary briefing on the 2023 budget proposal at Government Complex Sejong, Thursday. The proposal was endorsed at a Cabinet meeting, Tuesday and will be submitted to the National Assembly for approval. YonhapGov't plans to slash spending on SOC, COVID but spend more on chips, defenseBy Yi Whan-wooThe government said Tuesday that it will cut the national budget in 2023 for the first time in 13 years. The decision reflects a shift to a belt-tightening mode to improve fiscal health and keep soaring inflation in check, in contrast to the pandemic-era stimulus policy under the previous Moon Jae-in administration.The new budget sharply cuts spending on non-core expenditures in areas such as social infrastructure and energy, while increasing spending on nurturing future growth engines and supporting the vulnerable.The first budget proposal under President Yoon Suk-yeol was unveiled Tuesday by the Ministry of Economy and Finance. Under the proposal, the finance ministry plans to reduce national spending for n

Aug 30, 2022By Yi Whan-woo
Korea shifts to belt-tightening mode by cutting budget for first time in 13 years
Cryptocurrency

Will Coinone increase market share with KakaoBank?

Coinone's customer service center in Seoul / YonhapBy Lee Min-hyungCoinone, the nation's third-largest cryptocurrency exchange, is seeking a fresh breakthrough in a partnership with KakaoBank amid bearish market sentiment. Under the partnership, the internet-only bank will offer real-name accounts for Coinone users. The exchange aims to attract more investors, as Dunamu ― the operator of the largest crypto exchange here, Upbit ― did after clinching such a partnership with K bank, another first-generation internet bank here.Mobile banks have a competitive edge in their platforms, compared with conventional lenders, as the former offers an easier-to-use interface at a faster speed than traditional banks.Dunamu's partnership with K bank is considered one of the best bets that the exchange has made for the past few years on its way to becoming the nation's dominant exchange operator with a market share of almost 80 percent.Coinone appears to be following a similar path through the new partnership, but industry officials said it remains to be seen whether the company will be able to achie

Aug 30, 2022By Lee Min-hyung
Will Coinone increase market share with KakaoBank?
Economy

FSS chief vows support for fintech businesses with deregulation

Financial Supervisory Service (FSS) Governor Lee Bok-hyun speaks during a meeting with fintech leaders in Seoul, Tuesday. Courtesy of FSSBy Anna J. ParkThe Financial Supervisory Service (FSS) chief vowed to support local fintech businesses by loosening up regulations. During a meeting with fintech company leaders on Tuesday, FSS Governor Lee Bok-hyun pledged not to impose governmental guidelines when it comes to the fintech businesses' easy payment commission fees.“Commission fees should be decided voluntarily by market participants, and the financial authority does not intend to intervene in the matter,” Lee said during the meeting.Among those present were Naver Financial CEO Park Sang-jin, Kakao Pay CEO Shin Won-keun, Viva Republica (Toss) CEO Lee Seung-gun, Music Cow CEO Jung Hyun-kyung, Small Ticket CEO Kim Jung-eun and Korea Fintech Industry Association (KORFIN) Chairman Lee Keun-ju.Financial Supervisory Service (FSS) Governor Lee Bok-hyun, front row fourth from left, poses for a photo with fintech business CEOs during a meeting held in Seoul, Tuesday. Courtesy of FS

Aug 30, 2022By Anna J. Park
FSS chief vows support for fintech businesses with deregulation
Cryptocurrency

Customs inspection turns up illegal cryptocurrency transactions worth $2 bil.

An official from Seoul Regional Customs speaks during a press briefing in Seoul, Tuesday. NewsisBy Anna J. ParkSeoul Regional Customs uncovered a total 2.7 trillion won ($2 billion) worth of illegal foreign exchange transactions related to cryptocurrency trading during its special inspections, the agency announced Wednesday. The special inspections focusing on cryptocurrency-related illegal foreign exchange transactions began in February. Most of the foreign exchange violations caught during the inspections were related to purchases of digital assets through overseas cryptocurrency exchanges.For instance, nearly half of the money ― or 1.3 trillion won ―- was found to be illegal remittances to overseas accounts, aiming for arbitrage opportunities on cryptocurrency exchanges. The funds were sent via commercial banks disguised as payment for trade businesses.Altogether 16 people were apprehended during the inspections. Two of them were referred to the prosecution, while seven were penalized. A further seven are still under investigation. “Foreign exchange transactions aiming to ta

Aug 30, 2022By Anna J. Park
Customs inspection turns up illegal cryptocurrency transactions worth $2 bil.
Economy

Tax revenue up 37.3 trillion won in first seven months of this year

Finance ministry building in Sejong City / Korea Times fileKorea's tax revenue grew 37.3 trillion won ($27.8 billion) in the first seven month of this year from a year ago as the collection of corporate and income taxes amid the economic recovery, the finance ministry said Tuesday.Tax revenue amounted to 261 trillion won in the January-July period, compared with 223.7 trillion won the previous year, according to the ministry.In July alone, tax revenue increased 800 billion won on-year to 42.7 trillion won.South Korea has posted a surplus of tax revenue as Asia's fourth-largest economy has recovered from the fallout of the pandemic.In the first seven months, the nation collected corporate taxes of 65.6 trillion won, up 23.9 trillion won from a year earlier, as companies' earnings increased. The collection of income taxes increased 9.3 trillion won to 80.7 trillion won.The government saw the collection of value-added taxes rise 5.5 trillion won to 62.9 trillion won, led by increased private spending and imports.But the collection of stock transactions taxes fell 2.1 trillion won on-yea

Aug 30, 2022
Tax revenue up 37.3 trillion won in first seven months of this year
Economy

BOK chief sees no change in Seoul's monetary policy despite Powell's hawkish remarks

An electronic signboard at the dealing room of Hana Bank in Seoul shows the benchmark Korea Composite Stock Price Index (KOSPI) having dropped 54.14 points, or 2.18 percent, to close at 2,426.89, Aug. 29. YonhapThe Bank of Korea (BOK) will not change its current monetary policy of pushing for "piecemeal" rate increases to combat inflation despite U.S. Fed Chair Jerome Powell's hawkish remarks at the recent Jackson Hole meeting, its top official said Tuesday.At the annual conference held over the weekend in Wyoming, Powell hinted at continuing the Federal Reserve's rate hikes for some time to rein in runaway inflation, a comment interpreted in the market as raising the possibility of a large-scale rate increase in September, following two straight 0.75 percentage point rises in June and July.His remarks stoked worries over the Fed's longer-than-expected aggressive rate increases. South Korea's financial markets tumbled on Monday with the benchmark KOSPI falling over 2 percent and the local currency diving to the lowest level in more than 13 years."Chair Powell's remarks can be summed

Aug 30, 2022
BOK chief sees no change in Seoul's monetary policy despite Powell's hawkish remarks
Economy

Korea seeks slowest growth of budget spending in 6 years for next year

GettyimagesbankKorea on Tuesday proposed a budget of 639 trillion won ($473.5 billion) for next year in the slowest spending growth in six years as it seeks to implement a belt-tightening policy to improve fiscal health.The proposal represents a 5.2 percent hike from this year's budget of 607.7 trillion won and compares with an 8.9 percent on-year increase for the 2022 state budget. But it marks the slowest growth since a 3.7 percent rise for the 2017 budget and a 6 percent on-year fall from this year's total expenditures of 679.5 trillion won that include two rounds of extra budgets. It will be the first time since 2010 that the budget proposal had been smaller than the preceding year's total spending.The finance ministry plans to submit the budget proposal, endorsed by the Cabinet on Tuesday, to the National Assembly on Friday for approval.The move comes as the Yoon Suk-yeol government vowed to implement an austerity policy to enhance the soundness of public finances in a shift from years of expansionary fiscal spending maintained under the preceding Moon Jae-in government.Under th

Aug 30, 2022
Korea seeks slowest growth of budget spending in 6 years for next year
Economy

Korean financial markets reel after Fed's rate hike warning

Electronic signboards in a dealing room at Hana Bank in Seoul show that the benchmark KOSPI fell 2.18 percent to 2,426.89 points, while the Korean currency slid 19.1 won to close at 1,350.4 per dollar, Monday. YonhapKOSPI dips 2.18%; won-dollar rate soars by 19.1 won to 1,350.4By Lee Min-hyungKorean stocks tumbled and the local currency weakened sharply on Monday after U.S. Federal Reserve Chairman Jerome Powell warned of a prolonged monetary tightening at the Jackson Hole economic symposium over the weekend, sending shockwaves through the U.S. stock markets.Local stocks dipped by more than 2 percent on the first day after the economic symposium. The benchmark KOSPI closed at 2,426.89, a drop of 2.18 percent from the previous trading day, as foreign and institutional investors went on a selling spree of large-cap stocks here. The secondary Kosdaq also extended losses with a fall of 2.81 percent on the same day.In line with the stock slump, the won-dollar exchange rate also closed at a new high of 1,350.4 won per dollar, up 19.1 won from the previous trading day. This is the highest f

Aug 29, 2022By Lee Min-hyung
Korean financial markets reel after Fed's rate hike warning
Economy

NPS posts 8 percent loss in H1

National Pension Service headquarters in Jeonju, North Jeolla Province / YonhapBy Anna J. ParkThe National Pension Service (NPS) posted a loss of 8 percent during the first half of this year, due mainly to market deterioration stemming from tightening global monetary policies and the ongoing Russia-Ukraine conflict. According to the NPS, Monday, its assets reduced to 882.7 trillion won ($654 billion) as the end of the first half of this year, a drop of 8 percent from the end of last year. By category, local stocks posted the worst rate of returns of minus 19.58 percent, followed by overseas stocks at minus 12.59 percent and overseas bonds at minus 1.55 percent. The NPS garnered a 5.8 percent gain from the local bonds market, and a 7.25 percent profit from alternative investments.It is the first time that the national pension agency posted a loss in both stocks and bonds markets since the stagflation period during the 1970s. The NPS explained that its rate of return during the first half was relatively favorable compared to other major pension operators, such as the Norwegian Governme

Aug 29, 2022By Anna J. Park
NPS posts 8 percent loss in H1
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