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  • Others

    AI-fueled Samsung affiliates reshape KOSPI market cap rankings

    The composition of KOSPI's largest companies has shifted markedly this year as investor enthusiasm for artificial intelligence (AI) propelled Samsung Group affiliates and semiconductor-related stocks higher, while secondary battery, shipbuilding and defense shares that dominated the market last year lost ground, according to the Korea Exchange Sunday. Among the top 10 KOSPI companies by market capitalization, excluding preferred shares, only Samsung Electronics, SK hynix and KB Financial Group maintained their rankings from the end of last year through Friday, holding the No. 1, No. 2 and No. 10 spots, respectively. The positions of the other seven companies changed within less than six months. Several Samsung affiliates entered the top 10 by market capitalization this year, led by Samsung Electro-Mechanics. Benefiting from the AI boom, the company saw its share price surge 589 percent as demand and prices for multilayer ceramic capacitors, a key component used in AI servers, climbed sharply. As a result, its market capitalization expanded from about 19 trillion won ($12 billion) to 131

    2 MIN READBy Jun Ji-hye
    AI-fueled Samsung affiliates reshape KOSPI market cap rankings
  • Economy

    Financial authorities vow stern action against excessive volatility, one-sided FX market moves

    1 MIN READBy Yonhap
    Financial authorities vow stern action against excessive volatility, one-sided FX market moves
  • Economy

    Corporate lending grows at fastest pace in 3 1/2 years in Q1: BOK

    1 MIN READBy Yonhap
    Corporate lending grows at fastest pace in 3 1/2 years in Q1: BOK
  • Economy

    Economy continues 'gradual improvement' on strong chip exports: KDI

    2 MIN READBy Yonhap
    Economy continues 'gradual improvement' on strong chip exports: KDI
  • Economy

    Koreans feel pinch from rising egg prices

    2 MIN READBy Lee Hyo-jin
    Koreans feel pinch from rising egg prices
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Economy

Korea's inflation growth hits nearly 24-year high in June on fuel costs

This photo, taken on Monday, shows gas and diesel prices at a filling station in Seoul. YonhapKorea's consumer prices rose at the fastest clip in nearly 24 years in June due to high energy and food costs, and a rebound in demand from the pandemic, data showed Tuesday.Consumer prices soared 6 percent last month from a year earlier, accelerating from a 5.4 percent on-year spike in May, according to the data from Statistics Korea.It marked the sharpest on-year increase since November 1998, when consumer inflation soared 6.8 percent. Inflation growth also exceeded 6 percent for the first time in almost 24 years.Consumer prices rose above 2 percent ― the central bank's inflation target over the medium term ― for the 15th straight month in June.Core inflation, which excludes volatile food and oil prices, climbed 3.9 percent on-year last month.The statistics agency said if the current trend continues, annual inflation could exceed the 4.7 percent forecast by the finance ministry.Korea faces growing inflationary pressure as crude oil and other commodity prices rose due to the protracted war

Jul 5, 2022
Korea's inflation growth hits nearly 24-year high in June on fuel costs
Economy

S&P estimates S. Korea's inflation at 5% for 2022

gettyimagesbankGlobal credit appraiser S&P Global Ratings said Monday South Korea's annual inflation is expected to hit 5 percent this year due to higher energy and commodity prices.In its latest report, S&P said the inflation in the Asia-Pacific region has risen and that it has decided to raise its inflation outlook for other major economies in the area, including Australia, India and Indonesia."Driving these revisions are higher energy and commodity prices and, in a few cases, larger pass-through as economies recover and core inflation picks up amid decreasing slack," it added.In late June, South Korean Finance Minister Choo Kyung-ho said the country's inflation will likely hit 6 percent during the June-August period on a global surge in oil, food and material costs.S&P forecast South Korea's inflation at 2.4 percent for 2023, followed by 1.8 percent and 1.6 percent for 2024 and 2025, respectively.The credit appraiser also suggested Asia's No. 4 economy will expand 2.6 percent year-on-year in 2022, which is 0.1 percentage point higher than its previous estimate released

Jul 4, 2022
S&P estimates S. Korea's inflation at 5% for 2022
Economy

What's behind falling banking stocks?

A notice of a lender's deposit rate is displayed in front of its sales office in Seoul, Sunday. YonhapBy Lee Min-hyungBanking stocks are extending a losing streak on escalating fears of a recession and the heightened risk exposure of their asset soundness amid soaring interest rates, analysts said.The stock performance runs counter to the once-prevalent optimism on banks earlier this year when they were widely expected to continue a robust rally on hopes of earnings growth driven by interest rate hikes. According to data from the Korea Exchange, shares of KB Financial Group hit this year's new high of 66,400 won in late February but tumbled down to 46,950 won as of Monday. Other major financial firms such as Shinhan, Hana and Woori are also displaying similar patterns in their stock prices, all of which declined steeply from the beginning of June. Shinhan shares topped this year's high of 43,450 won in May but fell to 37,250 won during the same period. Hana hit a high of 52,900 won in February but closed at 38,350 won on Monday. Woori's share price reached 16,350 won in late May but

Jul 4, 2022By Lee Min-hyung
What's behind falling banking stocks?
Economy

Central American development bank to run investment campaign in Korea

By Yi Whan-wooA development bank for Central America will host a promotional campaign in Seoul, Busan and Ulsan for a week from Tuesday, to facilitate investments from Korea in Central American countries. The Central American Bank for Economic Integration (CABEI) campaign will draw support from both the public and private sectors, Korea's Ministry of Economy and Finance said Monday./Logo of the Central American Bank for Economic Integration (CABEI) / Captured from CABEI websiteEstablished in 1960, CABEI is committed to promoting economic integration and balanced economic and social development in Central America. It is especially dedicated to safeguarding democracy, tackling climate change and other key issues concerning SICA, the Spanish acronym for the economic bloc of eight countries ― Belize, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua and Panama. The weeklong campaign will take place as Korea is one of CABEI's 15 members since December 2019.About 40 top-ranking CABEI officials will take part.Korea Electric Power Corp. (KEPCO), Korea Gas Corp. (KOG

Jul 4, 2022By Yi Whan-woo
Central American development bank to run investment campaign in Korea
Economy

FSS looks into forex trading records of local banks

The headquarters of the Financial Supervisory Service in Yeouido, Seoul / YonhapBy Anna J. ParkThe Financial Supervisory Service (FSS) has begun investigating the foreign exchange trading records of local banks following abnormal foreign currency trading activities amounting to 800 billion won ($616 million) spotted at one Woori Bank branch in Seoul during the past year. Suspicions were aroused when an exceptionally high volume of foreign exchange trading ― more than 145 times the average ― occurred at a single bank branch.Since noticing the suspicious trading records during an internal audit, the bank reported the case to the financial authority for further investigation. Upon receiving the report, the FSS launched an on-site investigation into the branch late last month.The financial watchdog agency also began investigating Shinhan Bank, which reported similar abnormal foreign exchange trading activities.While the FSS is looking closely into the cases to see whether the transactions violated the country's anti-money laundering laws and foreign exchange transactions act, the financi

Jul 4, 2022By Anna J. Park
FSS looks into forex trading records of local banks
Economy

Korea's power demand hits new high in June amid hot weather

Electric meters are installed on a building in Seoul, July 1. YonahpKorea's electricity demand touched a fresh all-time high in June as the country was struck by an early heat wave, data showed Monday.The country's maximum power demand averaged 71,805 megawatts (MW) last month, up 4.3 percent from a year earlier and marking the highest tally for any June, according to the data from the Korea Power Exchange.June also represented the first time the figure has surpassed the 70,000-MW level for the month.The power exchange said unusually hot weather combined with the economy's recovery from the fallout of the coronavirus pandemic to push up power demand in Asia's fourth-largest economy last month.An early heat spell has been gripping the country since late June, with even the nighttime temperature in the Korean capital of Seoul remaining above 25 C on June 26, the first-ever such phenomenon in June.The heat wave prompted more offices and households to consume power for air conditioning, sending the country's reserve electricity ratio to 9.5 percent on June 23, hovering below the 10 perce

Jul 4, 2022
Korea's power demand hits new high in June amid hot weather
Economy

Preemptive measures in store to tackle risks from rising rates: chief policymakers

Finance Minister Choo Kyung-ho, center, poses for a photo with the top central banker and the financial regulators ahead of their meeting on economic situations, July 4. The participants are Bank of Korea Gov. Rhee Chang-yong, 2nd from right, Kim So-young, vice chair of the Financial Services Commission, left, and Choi Sang-mok, senior presidential secretary for economic affairs, 2nd from left, and Lee Bok-hyun, chief of the Financial Supervisory Service. YonhapKorea's finance minister, the central bank chief and financial regulators said Monday they will step up policy coordination to minimize fallout from rising interest rates at home and abroad.In a meeting presided over by Finance Minister Choo Kyung-ho, they discussed economic and financial situations amid heightened external economic uncertainty from the prolonged war between Russia and Ukraine, and the Federal Reserve's aggressive monetary policy tightening.The meeting brought together Bank of Korea Gov. Rhee Chang-yong; Lee Bok-hyun, chief of the Financial Supervisory Service; Kim So-young, vice chair of the Financial Service

Jul 4, 2022
Preemptive measures in store to tackle risks from rising rates: chief policymakers
Economy

Inflation expected to accelerate further in 2nd half

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho speaks during an emergency meeting of economy-related ministers at Government Complex Seoul, Sunday. YonhapGovernment vows all-out measures to minimize shock from abroadBy Yi Whan-wooKorea's inflation is widely expected to accelerate further and keep setting new highs in the second half of this year, according to analysts, Sunday, amid speculation that consumer prices in June grew at the fastest pace since the 1997-98 Asian financial crisis.The government is scheduled to announce the June inflation rate on Tuesday, which officials forecast to be above 6 percent for the first time since November 1998 when it stood at 6.8 percent.The worsening inflation outlook comes as new and existing causes of price increases here and abroad make the inflationary cycle more complicated to tackle.Domestically, the government plans to hike utility fees again in October, after the prices of electricity and gas were raised, Friday, in a bid to cap snowballing losses at state-run energy firms.The planned hike in October is likely to

Jul 3, 2022By Yi Whan-woo
Inflation expected to accelerate further in 2nd half
Economy

Falling copper prices increase concerns over recession

gettyimagesbankBy Anna J. Park Concerns over a global recession are growing as the international copper price logged a steep fall of 12.8 percent in June. The price of copper on the London Metal Exchange (LME) ended at $8,240 per metric ton on the last day of June, down 12.8 percent from $9,450 earlier in the month. The price of the metal is at its lowest level since February 2021, renewing a 17-month low. The slump in the price of copper is taken more seriously than other metal prices' plunges, because the metal's fluctuating price tends to predict turning points in the global economy. Often called “Dr. Copper” by the market for its predictability in global economic forecasts, copper's widespread usage in most sectors, ranging from construction to home appliances, has made its price a reliable leading indicator of the global economy. In general, the fall of the price of copper is regarded as indicating a slowdown in the global economy, while an increase in the price of the metal is seen as a sign of economic revival. Copper is not the only metal that's been witnessing a

Jul 3, 2022By Anna J. Park
Falling copper prices increase concerns over recession
Economy

Korea runs trade deficit with China

gettyimagesbank By Anna J. ParkKorea suffered a deficit in trade with China in June, remaining in the red for the second straight month. The lackluster performance reversed Korea's trade surplus with China that lasted for nearly three decades.According to the trade ministry earlier this month, the nation's trade balance with China registered a monthly deficit of $1.21 billion in June, following the previous month's deficit of $1.1 billion. June's monthly trade deficit with China stemmed from a year-on-year increase in imports from the country, which surged 24.1 percent to $1.41 billion, mostly for general machinery, textiles and chemicals compared to the same month last year. Korea's exports to China in June, meanwhile, fell 0.8 percent to $1.29 billion. Exports of semiconductors increased 11.5 percent, but was not enough to offset a 29.4 percent plunge in exports of display panels and applian

Jul 3, 2022By Anna J. Park
Korea runs trade deficit with China
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