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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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Economy

FSS inspects Morgan Stanley's short-selling records

Financial Supervisory Service headquarters on Yeouido, Seoul / YonhapFinancial watchdog launches short-selling inspection team this weekBy Anna J. ParkThe Financial Supervisory Service (FSS) has begun an inspection into Morgan Stanley's Seoul office, which generates the highest amount of short-selling trading in the country's stock markets. The FSS also plans to inspect Merrill Lynch early next month, as the U.S.-based investment bank takes up the second-highest portion of short-selling transactions in the local stock markets. The financial watchdog agency is also planning to look into short-selling practices and records of Korea Investment & Securities during its regular inspection period slated to begin next month. It will be the first mandatory inspection of the company in four years. Although the inspection of the Seoul-headquartered securities company is not solely aimed at investigating the firm's short-selling records, short-selling trading is expected to become one of the inspection's focal points, given that it fined the company 1 billion won ($741,000) in February for s

Aug 29, 2022By Anna J. Park
FSS inspects Morgan Stanley's short-selling records
Economy

Won hits yearly low in intraday trading on Fed's hawkish stance

This photo shows stock and currency movements depicted on electronic signboards at a Hana Bank dealing room in Seoul, Aug. 29. YonhapThe Korean currency sharply fell to a yearly low against the U.S. dollar Monday as the chair of the Federal Reserve reaffirmed a hawkish monetary policy stance at the latest annual Jackson Hole meeting.The local currency was trading at 1,348.50 won per dollar as of 11:02 a.m., down 17.20 won from the previous session's close.The won hit a yearly low of 1,349.20 against the greenback at one point as demand for the dollar increased amid prospects that the Fed will maintain its aggressive monetary tightening to fight inflation.Jerome Powell said Friday the U.S. central bank will raise interest rates "for some time" to tame inflation and the move could bring "some pain" to households and businesses with slower growth and job losses.The local currency fell below the 1,340-won level per dollar for the first time in more than 13 years Tuesday. The won has weakened more than 11 percent against the greenback so far this year.Korea's main stock index also tumbled

Aug 29, 2022
Won hits yearly low in intraday trading on Fed's hawkish stance
  • Korea vows policy efforts against herd behavior in market
Economy

Korea vows policy efforts against herd behavior in market

Stock and currency movements depicted at an electronic signboard at a Hana Bank dealing room in Seoul, Aug. 26 / YonhapKorea plans to take measures to stabilize the financial market if there is excessive herd behavior in the wake of the U.S. central bank's annual Jackson Hole meeting, a senior government official said Monday.First Vice Finance Minister Bang Ki-sun also said the government will closely monitor Korea's currency and bond markets with "extra" caution as the domestic market has moved in tandem with U.S. markets.U.S. stock markets nosedived Friday after Federal Reserve Chair Jerome Powell reaffirmed a hawkish monetary policy stance during his speech at the Jackson Hole economic symposium last week.Powell said the U.S. central bank will raise interest rates "for some time" to tame inflation and the move could bring "some pain" to households and businesses with slower growth and job losses."As South Korea's financial market is deeply coupled with movements in U.S. and other major markets, there is a need for close monitoring and responses," Bang said at a meeting."The govern

Aug 29, 2022
Korea vows policy efforts against herd behavior in market
  • Korea sends delegation to US over inflation reduction act
  • Won hits yearly low in intraday trading on Fed's hawkish stance
Economy

Hawkish Fed stance to add more pressure to BOK's rate hike move

U.S. Federal Reserve Chair Jerome Powell, center, takes a coffee break with attendees of the Jackson Hole Economic Symposium in the U.S. state of Wyoming, Friday. Bank of Korea (BOK) Governor Rhee Chang-yong also attended the symposium of central bankers. AP-YonhapBOK chief says it's difficult to end rate hikes earlier than FedBy Yi Whan-wooThe Bank of Korea (BOK) is likely to face more pressure to pursue additional rate hikes throughout this year, after the head of the U.S. Federal Reserve reaffirmed his hawkish stance, Friday, to raise borrowing costs at a faster pace to fight inflation.The BOK has been open to additional hikes, as signaled by Governor Rhee Chang-yong that the country's monetary policy will continue to focus on taming inflation after the base rate was raised for the fourth straight time to 2.5 percent, Thursday.Under the circumstances, Fed Chair Jerome Powell warned, Friday, that interest rates will remain elevated for “some time.” The Fed took a rare “giant step” of delivering a 75-basis-point rate hike for the second consecutive month in J

Aug 28, 2022By Yi Whan-woo
Hawkish Fed stance to add more pressure to BOK's rate hike move
Economy

Carbon emission-related ETFs log double-digit returns

gettyimagesbank By Anna J. Park As the price of carbon emission permits soared recently, related exchange-traded funds (ETF) logged double-digit growth this month. The price of carbon emission permits hah plunged earlier this year, following an energy shortage triggered by Russia's invasion of Ukraine in February. Yet, the carbon price has recovered over the course of the year so far.In particular, the EU's carbon price hit its all-time high Friday, as Emission Trading System (ETS) credits neared 100 euros, even surpassing the previous high of 98.49 euros recorded before the Russia-Ukraine war. UK Allowance, a carbon emissions tradable within the UK Emissions Trading System (UK ETS) also rose to its all-time high earlier this month.Part of the carbon price surge has been attributed to the U.S. government's passage of its Inflation Reduction Act (IRA) earlier this month. The bill states a 40 percent carbon reduction goal by 2030, boosting carbon emission permit pric

Aug 28, 2022By Anna J. Park
Carbon emission-related ETFs log double-digit returns
Economy

Woori, Shinhan banks likely to be reprimanded over escalating remittance scandal

Financial Supervisory Service (FSS) Governor Lee Bok-hyun speaks during a conference held at the National Assembly in Seoul on Aug.11. NewsisFSS ends probe and case is now in hands of prosecution and customs officeBy Anna J. Park The Financial Supervisory Service (FSS) wrapped up its month-long inspection of local commercial banks over dubious international remittances earlier this month. Now, a more in-depth investigation into specific details is in the hands of other investigative government agencies, including the prosecutors' office and the customs service.“We've already sent the details of the cases to many governmental agencies, including the prosecutors' office and customs service, to share information discovered during the investigation,” FSS Governor Lee Bok-hyun said during a recent press interview. Based on further revelations of the transactions discovered by the agencies, the related banks are not expected to escape being reprimanded.What the FSS' month-long official investigation discovered so far was that a whopping $6.54 billion was sent in dubious interna

Aug 28, 2022By Anna J. Park
Woori, Shinhan banks likely to be reprimanded over escalating remittance scandal
Economy

Seoul stocks end up for 3rd day before Powell's Jackson Hole speech

Electronic signboards at a Hana Bank dealing room in Seoul show the benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,481.03 on Aug. 26, up 3.77 points, or 0.15 percent, from the previous session's close. YonhapSouth Korean stocks finished higher Friday as investors awaited the gathering of central bankers in the United States. The Korean won gained ground against the U.S. dollar.The Korea Composite Stock Price Index (KOSPI) added 3.77 points, or 0.15 percent, to close at 2,481.03, keeping the three-day winning streak. The Friday closing is down 0.54 percent from a week ago.Trading volume was moderate at 500.41 million shares worth 7.8 trillion won ($5.86 billion), with gainers outpacing decliners 437 to 397.Institutions and foreign investors picked up a net 234.67 billion won worth of shares, while retail investors sold off a net 254.24 billion won. "China's economic stimulus helped lift Asian stocks in general. But that investors remain cautious about what Powell will say at the Jackson Hole meeting limited the market's rise," Park Sang-hyun, an analyst at Hi Investme

Aug 26, 2022
Seoul stocks end up for 3rd day before Powell's Jackson Hole speech
Economy

Housing prices fall due to rising interest rate

Apartment complexes in Seoul are seen in this photo taken on Aug. 25. YonhapBy Lee Min-hyungKorea's housing market has shown clear signs of entering a downturn and is highly likely to stay in the doldrums for a while amid steeply rising interest rates and a bleak outlook for an economic recovery, experts said Friday. Housing prices here had surged for the past few years due to the side effects of botched real estate policies pursued by the former Moon Jae-in administration. The prices of apartments in Seoul particularly soared last year on a mass buying spree among young people buoyed by expectations of an additional rally.But the sentiment took an abrupt turn for the worse from the third quarter of this year. According to data from the Korea Real Estate Board, the average apartment price in the capital city dropped by 0.11 percent in the fourth week of August, compared to a week earlier. This is a bigger drop from the 0.09 percent fall seen in the previous week.Market experts attributed the fall to interest rate hikes and an uncertain outlook for economic rebound here. They argued t

Aug 26, 2022By Lee Min-hyung
Housing prices fall due to rising interest rate
Economy

Banks in race to cut loan rates

Automated teller machines of major commercial banks are set up on a street in Seoul. YonhapBy Lee Min-hyungBanks are in a rush to cut their interest rates on loans in a bid to avert public perception of them being “greedy” after the government introduced a policy that informs customers regarding each commercial lender's loan-to-deposit interest rate gap. After the policy took effect on Aug. 22, most banks are now moving to cut interest rates on their loan products.KB Kookmin Bank decided to cut its mortgage loan interest rate by 0.2 of a percentage point from Thursday. Shinhan Bank also started reducing interest rates for most of its non-collateral loan products targeting ordinary office workers by a range of 0.3 and 0.5 percentage points on the same day.According to the notification posted on the website of the Korea Federation of Banks, Shinhan Bank's loan-to-deposit rate gap came in at 1.62 percentage points in July, the highest among commercial banks. KB, Woori and Hana came in at 1.4, 1.38 and 1.04 percentage points, respectively, during the same period.Affected by t

Aug 26, 2022By Lee Min-hyung
Banks in race to cut loan rates
Economy

Korea to take steps to stabilize FX market to curb market volatility: official

This photo shows stock and currency movements depicted on an electronic signboard at a Hana Bank dealing room in Seoul, Aug. 26. YonhapKorea plans to take measures to stabilize the foreign exchange market in a timely manner if market volatility increases, driven by herd behavior or speculative bets in the currency market, a senior government official said Friday.The government will also buy back Treasury bonds and take steps to help curb a rise in bond yields, when needed, if the bond market shows jitters amid global rate hike drives, according to First Vice Finance Minister Bang Ki-sun.The finance ministry said the Korean currency has weakened against the U.S. dollar due to a globally strong dollar, rather than the issue of the country's external soundness."As there are concerns that herd behavior in the FX market could expand, the government will closely monitor the situation and take market-stabilizing measures in a timely fashion if there are one-sided movements or increased speculative bets in the market," Bang said at a meeting on the economy. The Korean currency has sharply sl

Aug 26, 2022
Korea to take steps to stabilize FX market to curb market volatility: official
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