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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

Social media influencers under suspicion of avoiding taxes

gettyimagesbankBy Yoon Ja-youngDespite the explosive growth of e-commerce by social media influencers and creators, only a handful of them are paying taxes.According to National Tax Service (NTS) data submitted to Rep. Yang Ki-dae of the main opposition Democratic Party of Korea, only 785 influencers making money through social media paid taxes in 2020. They reported a total of 14.1 billion won ($10.8 million) in income. The number is only a fraction of the total number of influencers. According to Nox Influencer, a social media data provider, there are more than 90,000 influencers in Korea, with each having more than 10,000 Instagram followers. Those with more than 1 million followers totaled 463.The influencers have diverse income sources, such as advertising and direct sales through their social media channels. The retail industry estimates the scale of Korea's social media market to be around 20 trillion won as of 2019. According to Hype Auditor, which specializes in analyzing trendsetters, influencers who have between 10,000 and 50,000 followers make 2.68 million won on average

Aug 3, 2022By Yoon Ja-young
Social media influencers under suspicion of avoiding taxes
Economy

Minutes show BOK board members call for swift rate hike to neutral level

Bank of Korea Governor Lee Chang-yong speaks during the National Assembly Strategic & Finance Committee hearing at the National Assembly in Seoul, Monday. / Press Corp.Board members of South Korea's central bank underlined the need for raising the policy interest rate to a neutral level as quickly as possible to curb fast-rising inflation pressure as they delivered a first-ever "big-step" rate increase last month, minutes from their latest rate-setting meeting showed Tuesday.In the meeting on July 13, the monetary policy board of the Bank of Korea (BOK) voted unanimously to hike the policy rate by half a percentage point to 2.25 percent. That represented the sixth rate hike since August last year, when the BOK began rolling back easing monetary policy put in place to prop up the pandemic-afflicted economy. It was also the first-ever big-step rate hike. The BOK started the sequence of rate increases to rein in inflation, which has been under growing upward pressure due to global supply-chain disruptions, the war in Ukraine and recovering demand from the pandemic.The minutes showed

Aug 2, 2022
Minutes show BOK board members call for swift rate hike to neutral level
Economy

FSC chief urges state lenders to effectively carry out $95 billion to support heavily-indebted households

Financial Services Commission Chairman Kim Joo-hyun stands next to the heads of eight state-owned financial institutions at the Government Complex in central Seoul, Tuesday morning. YonhapBy Anna J. ParkKorea's top regulator on Tuesday called on state-owned lenders to effectively implement 125 trillion won ($95 billion) worth of financial support programs to aid heavily indebted households.In a meeting with the leaders of eight state-owned financial institutions, Financial Services Commission (FSC) Chairman Kim Joo-hyun urged the banks to effectively carry out the public support initiatives, aiming to reduce the financial burdens of vulnerable borrowers who have been hit hard by high inflation and increased economic uncertainties.“While raising borrowers' conveniences in using the state financial support programs, the state-led financial institutions are once again urged to strengthen their promotional efforts to minimize the number of people not relying on the state programs, just because they haven't heard about them,” the FSC chief said during the meeting. Financial Se

Aug 2, 2022By Anna J. Park
FSC chief urges state lenders to effectively carry out $95 billion to support heavily-indebted households
Economy

Are retail investors deserting KOSPI?

Employees work at the dealing room of Hana Bank's headquarters in central Seoul, Tuesday. Korea's main benchmark KOSPI ended at 2,439.62 points at Tuesday's closing, a 0.52 percent fall from the previous session. Daily trading started at 2,451.00 points at the beginning of the session. YonhapRetail investors' fatigue over bear market causes their exodus By Anna J. ParkWhile the main benchmark KOSPI showed signs of a slight recovery in late July after months of severe plunges, retail investors have resorted to net-selling local stocks. According to the Korea Exchange (KRX), retail investors net-sold 976.4 billion won worth of KOSPI-listed stocks during the six trading sessions from July 25 to Aug. 1, when the main benchmark index logged a consecutive winning streak of six sessions. It was the first time since last December for the KOSPI to record a winning streak of more than five consecutive trading sessions. Despite the temporary rally mood of the market, more retail investors chose to either take short-term trading profits or sell their long-held stocks to retrieve their investment

Aug 2, 2022By Anna J. Park
Are retail investors deserting KOSPI?
Economy

Korea's inflation at near 24-year high, but appears to slow down

Consumer price growth stays in 6% range for 2nd month in July By Yi Whan-wooConsumer prices in Korea surged 6.3 percent in July from a year earlier, rising to almost a 24-year high by outpacing the previous record of 6 percent set in June, according to Statistics Korea.The July gain also marks the first time in nearly 24 years for the inflation rate to stay in the 6 percent range or higher for the second consecutive month. The pace of inflation, however, is slowing down as the months pass, prompting speculation that it may not reach 7 percent and will peak within the second half of this year.“The costs of dining out, daily food and utilities grew sharply,” a senior Statistics Korea official said during a press briefing, noting such price increases, attributed mainly to global inflationary pressure, were high enough to offset a slight slowdown in oil price growth.By items, the prices of the 144 most frequently purchased daily goods rose 7.9 percent year-on-year, while prices of fruit, fisheries and other daily foods that are sensitive to weather increased 13 percent year-o

Aug 2, 2022By Yi Whan-woo
Korea's inflation at near 24-year high, but appears to slow down
Economy

PM calls for additional measures to cool inflation

Prime Minister Han Duck-soo presides over a Cabinet meeting at the government complex in Seoul, Tuesday. YonhapPrime Minister Han Duck-soo on Tuesday called for ministers to come up with additional measures to cool inflation, as consumer prices rose at the fastest pace in almost 24 years last month. Han told a Cabinet meeting that lower crop growth hit by heat waves and the Chuseok fall harvest holiday set for next month could keep upward pressure on inflation. "Crop damage caused by continuous heat waves and Chuseok, which comes earlier than usual, could increase the burden on low-income people," Han said. Han urged ministers to "make efforts for additional measures to stabilize prices in the second half." Consumer prices soared 6.3 percent last month from a year earlier, accelerating from a 6 percent on-year spike in June, according to the data from Statistics Korea.It marked the sharpest on-year increase since November 1998, when consumer inflation jumped 6.8 percent. The inflation rate stayed in the 6 percent range for the second straight month.The nation's new COVID-19 cases sha

Aug 2, 2022
PM calls for additional measures to cool inflation
  • Korea's inflation at near 24-year high in July
Economy

Korea's inflation at near 24-year high in July

A shopper shops at a supermarket in Seoul, Thursday. YonhapKorea's consumer prices rose at the fastest pace in almost 24 years in July due to high energy and food prices, data showed Tuesday, in the latest sign that the country faces growing inflationary pressure.Consumer prices soared 6.3 percent last month from a year earlier, accelerating from a 6 percent on-year spike in June, according to the data from Statistics Korea.It marked the sharpest on-year increase since November 1998, when consumer inflation jumped 6.8 percent. The inflation rate stayed in the 6 percent range for the second straight month.Consumer prices rose above 2 percent ― the central bank's inflation target over the medium term ― for the 16th straight month in July.Core inflation, which excludes volatile food and oil prices, climbed 3.9 percent on-year last month.Inflationary pressure has built up as crude oil and other commodity prices rose due to the protracted war between Russia and Ukraine, and global supply disruptions. A recovery in demand from the pandemic also exerted upward pressure on prices. (Yonhap)

Aug 2, 2022
Korea's inflation at near 24-year high in July
  • PM calls for additional measures to cool inflation
Economy

Korea expected to overtake Japan in total exports

gettyimagesbankBy Yoon Ja-youngKorea's gap with Japan in total exports narrowed to its smallest amount ever, triggering expectations that it will surpass the neighboring economic powerhouse soon. According to the Ministry of Trade, Industry and Energy, Korea's total exports this year as of May were $16.2 billion less than that of Japan. The gap is narrower than seen in the same period last year, in which Korea fell short of Japan by $55.7 billion.In terms of monthly exports this year, Korea overtook Japan in May, when it logged $61.6 billion in exports, surpassing Japan's $56.3 billion. This rise by Korea is notable when considering Japan's status in the global market as an exporting powerhouse. In 1980, Korea's total exports were only 13.4 percent of Japan's $134 billion. The ratio, however, has been surging steadily, to 35.9 percent in 2000, 60.6 percent in 2010, and 85.2 percent last year. As of May this year, Korea's total exports are at a staggering 94.8 percent of Japan's total exports. While the figure is fueling hopes that Korea may soon surpass Japan in total exports, it sti

Aug 2, 2022By Yoon Ja-young
Korea expected to overtake Japan in total exports
Economy

94% of illegal short selling done by foreign investors

Lee Yoon-su, director of the Capital Market Bureau at the Financial Services Commission (FSC), speaks during a press conference about the financial regulator's strengthened measures on illegal short-selling practices at the Government Complex in central Seoul, July 28. YonhapBy Anna J. ParkForeign investors account for about 94 percent of illegal short selling cases caught by financial authorities over the past 12 years. According to Financial Supervisory Service (FSS) data submitted to Rep. Lee Jung-mun of the main opposition Democratic Party of Korea, 93.7 percent of 127 people who have been sanctioned by the financial authorities since 2010 turned out to be foreign investors. “Considering that foreign investors accounted for 67.9 percent of cumulative short selling transactions over the past five years, the fact that they account for more than 93 percent of those who were sanctioned due to illegal short selling practices shows that the local financial authorities have been passive in curbing wrongful short selling practices on the part of foreign investors,” the lawmak

Aug 1, 2022By Anna J. Park
94% of illegal short selling done by foreign investors
Economy

FSS prepares stronger measures to prevent banking crimes

Financial Supervisory Service Governor Lee Bok-hyun speaks during a parliamentary committee meeting held at the National Assembly in Seoul on July 28. Yonhap By Anna J. ParkThe Financial Supervisory Service (FSS) is currently drawing up measures that will toughen up banks' preventive efforts to detect early any signs of irregularities. The move is in response to a series of recent banking crimes, including several high-profile embezzlement cases involving bank employees. The FSS submitted documents to the Assembly's National Policy Committee saying it is working on a set of measures to enhance local banks' internal controls.In order to devise effective measures, the FSS, local banks' compliance officers as well as the Korea Federation of Banks formed a taskforce team to discuss the matter together. The final set of measures for strengthening banks' internal controls to prevent financial crimes is slated to be announced in October, following consultation with the Fin

Aug 1, 2022By Anna J. Park
FSS prepares stronger measures to prevent banking crimes
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