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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

Won-dollar exchange rate surpasses 1,320 level for first time in more than 13 years

Dealers at Hana Bank work at a dealing room at its headquarters in Seoul, Friday, when the won-dollar rate surpassed the 1,320 won level for the first time in 13 years. YonhapBy Lee Min-hyungThe won-dollar exchange rate surpassed the 1,320 level, for the first time in more than 13 years, Friday, reflecting a growing aversion to risk triggered by fears of a global recession.The value of the local currency closed at 1,326.1 won per dollar, down 14 won from the previous trading session. This is the first time since April 2009 that the won-dollar exchange rate surpassed the 1,320-won mark. The local currency has rapidly lost ground against the dollar this year after the U.S. Fed started taking a hawkish turn in its monetary policy amid soaring inflation. The Bank of Korea (BOK) is also on a similar track by pushing for a series of aggressive rate hikes. The BOK carried out its first-ever “big step” rate hike of 50 basis point this week, and the Fed is widely expected to take a “giant step” rate hike of 75 basis points later this month.The move is sparking fears of

Jul 15, 2022By Lee Min-hyung
Won-dollar exchange rate surpasses 1,320 level for first time in more than 13 years
Economy

Gov't's move to support young borrowers raises moral hazard concerns

Financial Services Commission Chairman Kim Joo-hyun speaks during a media briefing at the regulatory body's headquarters in Seoul, Thursday. YonhapBy Lee Min-hyungThe Financial Services Commission's (FSC) recent decision to ease interest burden on the younger generation is drawing public ire, as it is feared to potentially expose vulnerable borrowers to even higher financial risks.The financial authority, on Thursday, introduced the so-called youth debt exception program under which those aged under 34 will be able to delay their principal payment for three years and cut the interest rate for their debts down to 3.25 percent if their credit ratings are in the bottom 20-percent bracket.This is a special assistance measure to help those suffering from great losses after investments in volatile stocks and cryptocurrencies that have largely crashed in value. Last year, those in their 20s and 30s engaged in a mass buying spree of the two assets due to booming market sentiment here and abroad. Prices soared as a consequence of huge market liquidity ― for about two years after the outbreak

Jul 15, 2022By Lee Min-hyung
Gov't's move to support young borrowers raises moral hazard concerns
Economy

Import prices up for 2nd month in June on high energy, raw material costs

Containers for exports and imports are stacked at a pier in South Korea's largest port city of Busan in this file photo. YonhapKorea's import prices grew for the second straight month in June as oil and raw material prices remained high, central bank data showed Friday.The import price index edged up 0.5 percent in June from a month earlier, according to the preliminary data from the Bank of Korea (BOK). This marked the second straight month of on-month increase following a revised rise of 3.8 percent in May.Compared with a year earlier, the index jumped 33.6 percent, the 16th consecutive month of on-year increase.Behind the rise were high prices of oil and raw materials for which South Korea depends heavily on imports. In particular, the prices of Dubai crude oil, South Korea's benchmark, stood at $113.27 per barrel on average last month, up 4.7 percent from the previous month. The oil prices were up 58.2 percent from a year earlier.Raw material prices also grew 3.1 percent on-month in June. Import prices are closely monitored as a rise can add to price pressures at a time when Sout

Jul 15, 2022
Import prices up for 2nd month in June on high energy, raw material costs
  • Korean currency falls to more than 13-year low in intraday trading
Economy

Korean currency falls to more than 13-year low in intraday trading

This photo, taken July 15, shows information on South Korea's stocks and currency movements on an electronic signboard at a Hana Bank dealing room in Seoul. YonhapThe Korean currency on Friday sank below the 1,320-won level against the U.S. dollar for the first time in more than 13 years amid concerns about global monetary tightening and an economic recession.The Korean currency was trading at 1,320.80 won against the dollar as of 9:15 a.m., down 8.70 won from the previous session. The won hit as low as 1,321.40 per dollar after the market open.It marked the first time that the won has fallen through the 1,320-won level per the greenback since April 30, 2009. (Yonhap)

Jul 15, 2022
Korean currency falls to more than 13-year low in intraday trading
  • Import prices up for 2nd month in June on high energy, raw material costs
Economy

State-run financial firms still awaiting appointments of leaders

Financial Services Commission (FSC) Chairman Kim Joo-hyun speaks during a press briefing held at the Government Complex in central Seoul, Thursday. YonhapBy Anna J. ParkA couple of months have passed since the Yoon Suk-yeol administration was inaugurated in early May, yet some of the key chief posts of state-run financial organizations remain empty, raising concerns over the leadership vacuum during this period of increased uncertainties in global financial markets.While Kim Joo-hyun officially began his term as chairman of the Financial Services Commission (FSC) early this week, there are still several posts in state-run financial institutions awaiting the appointments of their new leaders. Market watchers expect these empty seats to be filled soon, now that Kim has taken the helm of the country's top financial regulatory agency. The Export-Import Bank (Eximbank) of Korea is one of these organizations that currently lacks a leader. Since its former CEO, Bang Moon-kyu, was tapped as the minister of the Office for Government Policy Coordination early last month, the bank has been goin

Jul 14, 2022By Anna J. Park
State-run financial firms still awaiting appointments of leaders
Economy

Customs agency warns against buying weapons online from overseas

Illegal replica guns are on a display after being confiscated by the police in this photo taken in 2010. Korea Times fileBy Yi Whan-wooThe number of weapons purchased directly from overseas online malls are on a sharp rise, the Korea Customs Service (KCS) said Thursday, warning that the shipment of such goods into the country without authorization is illegal. The customs agency said the number of attempts to bring in illegal weapons through international shipping started to rise from late 2019 at around the same time as the COVID-19 pandemic outbreak.“Direct purchases of goods from overseas became a more popular shopping trend since then, and this trend includes buying weapons from online stores outside the country,” the KCS said in a press release. Among the illegal shipments were firearms and components, weapon scopes and sights, crossbows, stun guns and replica guns.A total of 2,578 cases of smuggling attempts were reported in 2019, 1672 in 2020, 2,076 in 2021 and 951 in the first half of 2022.All these items require authorization from the commissioner general of the N

Jul 14, 2022By Yi Whan-woo
Customs agency warns against buying weapons online from overseas
Cryptocurrency

Dunamu, Bithumb escalate competition in NFT market amid crypto doldrums

gettyimagesbankBy Lee Min-hyungDunamu and Bithumb, the two largest cryptocurrency exchange operators here, are increasing competition in the non-fungible token (NFT) market, identifying the area as their next growth engine amid the lukewarm crypto sentiment here and abroad. Both firms understand the urgent need to expand their revenue streams preemptively due to the inherent volatility in the crypto market. Their earnings skyrocketed last year on soaring commissions for crypto trading.However, soaring commissions are not the case this year, so they are going all-out to find new revenue sources in nascent yet promising growth areas. The NFT is a kind of digital asset that is unique and non-replicable. NFT art drew particularly huge interest here and abroad last year when the global asset market overheated on mass liquidity into the market.As NFTs are based on blockchain technology just like cryptocurrencies, both exchange operators are also seeking to take advantage of their tech expertise by launching their own NFT marketplace sometime in the third quarter of this year.Lambda 256, th

Jul 14, 2022By Lee Min-hyung
Dunamu, Bithumb escalate competition in NFT market amid crypto doldrums
Economy

Yoon calls for protecting ordinary citizens from high inflation, interest rates

President Yoon Suk-yeol, 2nd right, presides over a weekly meeting on people's livelihood issues with government and private sector officials in Seoul, July 14. YonhapPresident Yoon Suk-yeol instructed officials Thursday to find ways to protect ordinary citizens from the financial pressures of high inflation and high interest rates.Yoon made the remark a day after the Bank of Korea delivered an unprecedented 0.5 percentage-point rate hike in a preemptive bid to fight fast-growing inflation pressure from high energy and commodity prices."The rate hike was an inevitable step to control inflation, but that burden must not be passed on to the socially vulnerable," he said during a weekly meeting on people's livelihood issues with government and private sector officials. "Unless the government provides preemptive support, ultimately the social cost will grow."Yoon said the government will fully utilize its financial resources to come up with solutions, including extending repayment deadlines and reducing interest rates for small business owners with debts.For young people, the government

Jul 14, 2022
Yoon calls for protecting ordinary citizens from high inflation, interest rates
Economy

Korea's fiscal deficit worsens through May

gettyimagesbankKorea's fiscal deficit rose 22.7 trillion won ($17.4 billion) in the first five months of this year from a year ago due largely to increased government spending aimed at tackling the pandemic, data showed Thursday.The managed fiscal balance, a key gauge of fiscal health calculated on a stricter term, posted a deficit of 71.2 trillion won in the January-May period, larger than a shortfall of 48.5 trillion won a year earlier, according to the finance ministry.The larger deficit came as the government provided compensation to pandemic-hit merchants and revved up its spending under the record 62 trillion-won extra budget created in May.The government expects the fiscal deficit to reach 110.8 trillion won this year.The central government debt had amounted to 1,018.8 trillion won as of end-May, up 17.8 trillion won from the previous month. Such debt surpassed the 1,000 trillion-won mark for the first time in April.The new government of President Yoon Suk-yeol plans to implement a belt-tightening policy in a shift from years of expansionary fiscal policy adopted by the previo

Jul 14, 2022
Korea's fiscal deficit worsens through May
Economy

Korea to actively deal with herd behavior in financial market: official

First Vice Finance Minister Bang Ki-sun speaks during a meeting on macroeconomic situations in Seoul, July 14. YonhapKorea plans to actively tackle herd behavior in the financial market as market volatility has increased amid monetary tightening drives at home and abroad, a senior government official said Thursday.The government plans to step up its monitoring of the market, as the country's financial market has "sensitively" reacted to concerns about high inflation and global recession fears, according to First Vice Finance Minister Bang Ki-sun."The government plans to actively deal with excessive one-sided movements in the financial market and will consider additional contingency steps (to stabilize the market), if needed," Bang said at a meeting on macroeconomic situations.Korea's financial markets have undergone high volatility in recent weeks amid concerns that the Federal Reserve's aggressive rate hikes could accelerate the U.S. economic downturn.In regard to the Bank of Korea (BOK)'s latest rate hike of 0.5 percentage point, Bang said the decision was largely in line with mark

Jul 14, 2022
Korea to actively deal with herd behavior in financial market: official
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