my timesThe Korea Times

Economy

PolicyCryptocurrencyOthers
  • 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
  • Economy

    Seoul shares open 1.38% lower on woes over inflation, tech slump

    1 MIN READBy Yonhap
    Seoul shares open 1.38% lower on woes over inflation, tech slump
  • Others

    AI-fueled Samsung affiliates reshape KOSPI market cap rankings

    2 MIN READBy Jun Ji-hye
    AI-fueled Samsung affiliates reshape KOSPI market cap rankings
  • 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
Korea Times
About Us
Introduction
History
Contact Us
Products & Services
Subscribe
E-paper
RSS Service
Content Sales
Site Map
Policy
Code of Ethics
Ombudsman
Privacy Policy
Youth Protection Policy
Terms of Service
Copyright Policy
Family Site
Hankookilbo
Dongwha Group
FacebookXYoutubeInstagram
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.

Read more

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
Economy

Finance minister concerned about recession after inflation comes under control

Finance Minister Choo Kyung-ho speaks at a forum on Jeju Island, July 13. Courtesy of Ministry of Economy and FinanceSouth Korea's chief economic policymaker said Wednesday that he is gravely concerned about a possible recession after soaring inflation stabilizes.His remarks came after the Bank of Korea (BOK) raised its policy rate by a half percentage point, the largest-ever increase, earlier in the day to combat high-flying inflation."(The BOK's rate hike) will help rein in rising expected inflation down the road," Finance Minister Choo Kyung-ho said in a forum held in Jeju. "In October, consumer prices may stabilize, and our next concern may be economic recession," he said.The finance minister emphasized that his task is to balance inflation against economic recession.The central bank raised its benchmark interest rate by 50 basis points to 2.25 percent although it expects this year's economic growth to be below its forecast of 2.7 percent in May.Wednesday's rate increase came after the central bank enacted back-to-back 0.25 percentage-point rate increases in April and May. It rep

Jul 13, 2022
Finance minister concerned about recession after inflation comes under control
Economy

Bank of Korea takes first-ever 'big step' to fight inflation, curb capital outflow

Bank of Korea (BOK) Governor Rhee Chang-yong bangs a gavel during a rate-setting meeting at the BOK headquarters in central Seoul, Wednesday. YonhapBase rate expected to climb to 3% by year-endBy Yi Whan-wooThe Bank of Korea (BOK) took an unprecedented “big step,” Wednesday, lifting its key interest rate by half a percentage point in a preemptive move to fight runaway inflation and curb a possible capital outflow amid the U.S. Federal Reserve's faster-than-expected monetary tightening.The central bank said its monetary policy board decided during a rate-setting meeting earlier in the day to increase the policy rate to 2.25 percent from 1.75 percent, marking the third consecutive increase of the benchmark rate.The unprecedented move comes as the nation's consumer prices rose 6 percent in June from a year ago, growing at the fastest clip in 24 years. The previous record increase in consumer prices was in November 1998, in the wake of the Asian financial crisis, when the prices jumped 6.8 percent.The rate hike also comes as the U.S. dollar is getting stronger and the market

Jul 13, 2022By Yi Whan-woo
Bank of Korea takes first-ever 'big step' to fight inflation, curb capital outflow
  • Hot inflation fuels bets on supersized Fed rate hike
Economy

Korea's real estate transparency rises to 28th in biennial global index

A birds-eye view of buildings in Seoul on June 24 of this year / NewsisBy Anna J. ParkKorea is ranked 28th on the Global Real Estate Transparency Index (GRETI) for this year, up two notches from 2020. The biennial index is a global benchmark of real estate market transparency, based on a combination of quantitative market data and information gathered through a survey of the global business networks of global real restate service firm JLL and global real estate investment management firm LaSalle, across 94 countries and 156 city markets. The index evaluates each country or territory in six sub-indexes, looking at market fundamentals, regulatory and legal frameworks, transaction processes and listed vehicles. The U.K. topped this year's list, followed by the U.S., France, Australia and Canada in the top five positions. Japan took the highest rank of 12th place among Asian countries, followed by Singapore and Hong Kong, which took 14th and 16th place, respectively. Korea was placed as the fourth-highest Asian country on the list. The country is categorized as “Transparent,”

Jul 13, 2022By Anna J. Park
Korea's real estate transparency rises to 28th in biennial global index
Economy

BOK chief, finance minister to meet Yellen in Seoul next week

U.S. Treasury Secretary Janet Yellen / AFP-YonhapBy Yoon Ja-youngBank of Korea (BOK) Governor Rhee Chang-yong will meet U.S. Treasury Secretary Janet Yellen in Seoul next week, amid concerns over the Korean currency weakening against the dollar. According to the central bank, Wednesday, Rhee and Yellen will have a bilateral meeting in Seoul on July 19, accompanied by their staffs. It will be the second bilateral meeting between the Korean central bank governor and the U.S. treasury secretary, following a 2016 June meeting between then-BOK governor Lee Ju-yeol and then-U.S. Treasury Secretary Jacob Lew. They had a closed-door meeting at the BOK headquarters in Seoul at that time.Yellen will be visiting Seoul on July 19 and 20 as part of her trip to Asia, after attending the G20 Finance Ministers and Central Bank Governors Meeting in Bali, Indonesia, scheduled for July 15 and 16.During the meeting, the two chiefs will be discussing key issues concerning the global economy and financial market, including global policy coordination. This meeting is getting the spotlight in particular as

Jul 13, 2022By Yoon Ja-young
BOK chief, finance minister to meet Yellen in Seoul next week
Economy

Korean students abroad, parents tightening belts as won dives to 13-year low against dollar

gettyimagesbankKorean students studying abroad and their parents are taking the brunt of the weakening Korean won, as the home currency is hovering around the lowest level against the U.S. dollar in 13 years.After hitting a 13-year low of 1,301.8 won against the greenback on June 23, the Korean currency further extended losses to close at 1,312.1 won Tuesday amid growing global recession fears.The sharply weaker won means soaring living costs for Korean students abroad who rely on money transfers from home to finance their studies and daily expenses.A 51-year-old woman, surnamed Kim, and her 24-year-old son currently studying in the U.S. are tightening their belts to ride out the foreign exchange crunch."I am under enormous pressure from the high exchange rates. I check the exchange rate every day to send money to my son," Kim said."My son said he is turning to cheaper groceries and discount coupons for shopping because of the sharply higher living costs."Her son may skip his home visit this coming summer break due to a sharp hike in air tickets, she said, adding the burden of financ

Jul 13, 2022
Korean students abroad, parents tightening belts as won dives to 13-year low against dollar
Economy

BOK chief to meet with Yellen next week in Seoul

Bank of Korea (BOK) Governor Rhee Chang-yong presides over a monetary policy board meeting at the central bank in Seoul on Wednesday, in this photo provided by the BOK. YonhapSouth Korea's central bank chief will meet with U.S. Treasury Secretary Janet Yellen next week in Seoul to discuss economic issues, the bank said Wednesday.Bank of Korea (BOK) Governor Rhee Chang-yong will sit down with Yellen on Tuesday at the BOK's headquarters in central Seoul.During the meeting, the two are expected to discuss the pressing global economic and financial issues as well as areas of global policy cooperation.After the talks, Yellen is scheduled to meet with the female BOK officials to share her insights about women and the field of economics, according to the BOK.Yellen is scheduled to visit South Korea on July 19 and 20 as part of her Asia visit, after her attendance at the G20 Finance Ministers and Central Bank Governors Meeting in Bali, Indonesia, on July 15 and 16. (Yonhap)

Jul 13, 2022
BOK chief to meet with Yellen next week in Seoul
  • BOK delivers unprecedented 0.5 percentage-point rate hike to combat inflation
Economy

Korea's job growth slows in June amid increased economic uncertainty

gettyimagesbankKorea reported job additions for the 16th consecutive month in June, but the pace of job growth slowed amid heightened economic uncertainty, data showed Wednesday.The number of employed people came to 28.49 million last month, up 841,000 from a year earlier, according to the data compiled by Statistics Korea.The June reading marked the largest job addition in 22 years for any June. But the pace of job growth slowed compared with May, when the country added 935,000 jobs.The statistics agency said job growth has continued as employment in in-person services improved due to the lifting of virus curbs."But the outlook for the job market remains uncertain down the road," Kong Mi-suk, a senior Statistics Korea official, told reporters.The Korean economy faces the risk of stagflation, a mix of slowing economic growth and high inflation, due to heightened external economic uncertainty, including the protracted war between Russia and Ukraine, and global monetary tightening.Job data pointed to overall improvements in the labor market, but in detail, more than half of the June jo

Jul 13, 2022
Korea's job growth slows in June amid increased economic uncertainty
Economy

BOK delivers unprecedented 0.5 percentage-point rate hike to combat inflation

BOK Gov. Rhee Chang-yong, center, presides over a monetary policy board meeting at the central bank in Seoul, July 13. Courtesy of the Bank of KoreaKorea's central bank on Wednesday delivered an unprecedented 0.5 percentage-point rate hike to fight fast-growing inflation pressure pushed up by high energy and commodity prices.The monetary policy board of the Bank of Korea (BOK) held a rate-setting meeting earlier in the day and voted to increase the benchmark seven-day repo rate from 1.75 percent to 2.25 percent, according to the central bank.This marked the BOK's first "big-step" rate hike ever and the sixth rise in borrowing costs since August last year, when the central bank began rolling back its easy monetary policy put in place for about two years to bolster the pandemic-affected economy. Wednesday's rate increase also came after the central bank's back-to-back 0.25 percentage-point rate increase both in April and May, and represented the first time borrowing costs have been elevated for the third consecutive time.Korea has been grappling with fast-rising inflation pressure amid

Jul 13, 2022
BOK delivers unprecedented 0.5 percentage-point rate hike to combat inflation
  • BOK chief to meet with Yellen next week in Seoul
previous page
663664665666667
next page

Most Read in Economy