my timesThe Korea Times

Economy

PolicyCryptocurrencyOthers
  • Others

    KOSPI plunges 8% on concerns over end of chip earnings cycle, interest rate hike

    Korean stocks tumbled Monday, as a broad-based correction in global semiconductor shares triggered heavy selling across the market, prompting the activation of both sidecar trading curbs and circuit breakers on the KOSPI and Kosdaq markets. Attention is centered on whether KOSPI, which has staged a record-breaking rally this year, can resume its upward trajectory after a short-term correction or whether market volatility will intensify further. The benchmark KOSPI opened 112.50 points, or 1.38 percent, lower at 8,048.09 before extending its losses throughout the session to close at 7,484.41, down 676.18 points, or 8.29 percent. The index reached an all-time intraday high of 8,933.62 on June 2. After plunging 5.54 percent on Friday, the KOSPI posted losses for a second consecutive session, underscoring growing concerns over a pullback in semiconductor stocks that had fueled the market's recent rally. Amid heavy selling pressure, trading restrictions kicked in shortly after the market opened, with a Level 1 circuit breaker triggered at 9:03 a.m. and a sell-side sidecar activated at 9:34 a.

    3 MIN READBy Jun Ji-hye
    KOSPI plunges 8% on concerns over end of chip earnings cycle, interest rate hike
  • Economy

    Lee attributes weakening won to foreign investors' portfolio rebalancing

    2 MIN READBy Lee Hyo-jin
    Lee attributes weakening won to foreign investors' portfolio rebalancing
  • Economy

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

    2 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
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

Korean economy feared to lose steam amid external uncertainties

Citizens shops for vegetables at a discount supermarket in Seoul, June 15, amid high inflation. Yonhap The economy is at risk of losing steam as deteriorating external economic conditions are feared to dent investment and export growth amid high inflation, the finance ministry said Friday.Market volatility and global economic downside risks further expanded due to the Federal Reserve's accelerating monetary tightening and global supply chain disruptions, the ministry said in its monthly economic assessment report, called the Green Book."Amid a continued buildup in price pressure, there are concerns about an economic slowdown due to sluggish investment and a faltering recovery of exports," the report said.The government presented a bleaker assessment than the previous month amid growing concerns about stagflation, a mix of slowing growth and high inflation.Inflationary pressure has rapidly built up amid soaring oil and commodity prices, caused by the protracted war b

Jun 17, 2022
Korean economy feared to lose steam amid external uncertainties
Economy

FSC to loosen household debt rules for first-time home buyers

A branch of Hana Bank located in central Seoul / NewsisTop financial regulator to take flexible approach to loans By Anna J. Park The country's financial authority will loosen household loan regulations for first-time home buyers, while strengthening income-based loan restrains for most debtors. The two-pronged approach aims to stably manage the country's growing household debt level, considering each debtor's unique condition.According to the Financial Services Commission's (FSC) announcement on Thursday, the government will implement the income-based debt restraint from July, aiming to prevent excessive debt compared to each debtor's income.Under the government's new debt service ratio (DSR) plan, which refers to the ratio of a person's total debt compared to household income, everyone who borrowed more than 100 million won ($77,000) can take out additional loans only within the limit of their DSR. However, the government is allowing a variety of exceptions to the DSR rule.For instance, those who purchase a home for the first time in their lives would be allowed a loan-to-value (LT

Jun 16, 2022By Anna J. Park
FSC to loosen household debt rules for first-time home buyers
Economy

Korea to overhaul visa system to attract more highly-skilled foreigners

gettyimagesbankE-7 visa issuance to be expanded to high-tech industry workers By Anna J. Park The government has decided to fix its visa policy for foreign nationals in a bid to attract more highly-skilled professionals from abroad ― a move aimed at tackling the population decline and reinvigorating the nation's growth potential. This move is part of the Yoon Suk-yeol administration's economic policy directions unveiled by the Ministry of Economy and Finance, Thursday.According to the finance ministry, specifically, the E-7 visa, which is issued to foreign professionals of special ability, will be expanded to include more high-skilled foreign workers from cutting-edge technology and science sectors.“Currently, the E-7 visa is subject to only 86 occupations. While this classification will continue to be maintained by the government, the E-7 visa will further be allowed for various professionals of high-tech industries, regardless of their occupations, except simple manual and administrative workers,” an official from the finance ministry told The Korea Times. The governmen

Jun 16, 2022By Anna J. Park
Korea to overhaul visa system to attract more highly-skilled foreigners
Economy

Bank of Korea pressed to take 'big step'

Bank of Korea Governor Rhee Chang-yong, left, and U.S. Fed Chairman Jerome Powell. YonhapKospi exposed to downside risks amid Fed's hawkish gesturesBy Lee Min-hyungThe Bank of Korea (BOK) is under pressure to take a big rate hike of 50 basis points during the upcoming rate-setting meeting in mid-July, after the U.S. Fed decided on the “giant step” of increasing its benchmark rate by 0.75 percentage point.BOK Governor Rhee Chang-yong also left open the possibility of taking the unprecedented big step, saying that the central bank will “play it by ear.”“We have three to four weeks to go until the next monetary policy board meeting, so we will decide (on the level of the next rate hike) after taking into consideration the response from the market,” Rhee said during an emergency macroeconomic meeting, Thursday.But the market expected the Korean central bank to push for the 50-basis-point rate hike soon in tandem with the Fed's ever more hawkish moves. Fed Chairman Jerome Powell also hinted at the possibility of raising its key rate by 75 basis points o

Jun 16, 2022By Lee Min-hyung
Bank of Korea pressed to take 'big step'
  • Fed attacks inflation with its largest rate hike since 1994
Economy

Korea to cut corporate taxes, redress industrial accident law

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, third from left, speaks during a joint government briefing on the Yook Suk-yeol government's first economic policy direction at the Government Complex Seoul, Thursday. From left are Minister of SMEs and Startups Lee Young, Minister of Employment and Labor Lee Jeong-sik, Choo, and Minister of Land, Infrastructure and Transport Won Hee-ryong. YonhapGrowth forecast cut to 2.6 percent, inflation projection raised to 4.7 percentBy Yi Whan-wooThe government will cut the maximum income tax rate for businesses to 22 percent from 25 percent in a bid to facilitate corporate investments and create more jobs, while easing the property tax burden on homeowners.Beginning in July, the government will also work on the shortcomings of the so-called Serious Accidents Punishment Act and amend it if necessary. Effective from January, the law is aimed at preventing poor safety management and recurring fatal accidents at work. However, it was protested by businesses for bolstering criminal punishment for negligent CEOs.Announced by t

Jun 16, 2022By Yi Whan-woo
Korea to cut corporate taxes, redress industrial accident law
  • Yoon vows bold deregulation, labor reforms amid stagflation fears
Economy

Ex-Bank of Korea chief takes helm of Yuhan Foundation

By Lee Min-hyungYuhan Foundation Chairman Kim Choong-sooFormer Bank of Korea Governor Kim Choong-soo has taken office as the new leader of the Yuhan Foundation amid hopes that the economics expert will help the non-profit organization fulfill its role further under his three-year tenure. Starting from Tuesday, Kim started his role as the new chairman of the educational and social organization. He is widely known for his economic expertise, having worked at high-level positions in major government organizations.He studied economics at Seoul National University and received a doctorate in economics from the University of Pennsylvania.His career includes serving as a senior secretary on former President Lee Myung-bak's economic policy team. Kim also served as the chief of the Korea Institute of Public Finance and state-run think tank Korea Development Institute. He also worked as the former president of Hallym University for five years beginning in 2016.As the 24th governor of the Bank of Korea, he led the central bank for four years beginning in April 2010.“Kim will help develop

Jun 16, 2022By Lee Min-hyung
Ex-Bank of Korea chief takes helm of Yuhan Foundation
Economy

Korea's national debt tops 1,000 trillion won for 1st time

gettyimagesbankKorea's national debt surpassed the 1,000 trillion won ($781.07 billion) mark for the first time ever amid the government's expansionary fiscal spending to support the economic recovery, data showed Thursday.The total government debt hit an all-time high of 1,001 trillion won as of the end of April, up by 19.1 trillion won from a month earlier, according to the data compiled by the finance ministry.The managed fiscal balance, a key gauge of fiscal health, posted a deficit of 37.9 trillion won as of the end of April, smaller than a shortfall of 40.4 trillion won a year earlier.The country's total revenue for the first four months of this year amounted to 245.9 trillion won, up 28.3 trillion won from a year earlier, on the back of an increase in the collection of corporate, income and value-added taxes amid the recent economic recovery.Korea has continued to log a surplus of tax revenue, as the economy has been on a recovery track.By the end of the year, the sovereign debt is expected to grow to 1,068.8 trillion won, including 31.1 trillion won to be incurred by provinci

Jun 16, 2022
Korea's national debt tops 1,000 trillion won for 1st time
Economy

Import prices up in May due to rising oil prices

A sign shows oil prices at a gas station in Seoul, June 14. Korea's import costs grew in May as crude oil prices increased. YonhapKorea's import costs grew in May as crude oil prices increased, central bank data showed Thursday.The import price index rose 3.6 percent in May from a month earlier, according to the preliminary data from the Bank of Korea (BOK). The rise followed a revised 0.6 percent month-on-month decline in April, which was the first fall this year. From a year earlier, the price index jumped 36.3 percent, which was the 15th straight month-on-month increase.May's turnaround stemmed from rising crude oil prices. The prices of Dubai crude oil, Korea's benchmark, stood at $108.16 per barrel on average last month, up 5.2 percent from the previous month, the data showed. Oil prices have stayed high, driven by increased demand and the ongoing war in Ukraine that has snarled energy resource shipments.Import price movements are closely monitored as a rise can add to price pressure at a time when Korea is grappling with rising inflation. (Yonhap)

Jun 16, 2022
Import prices up in May due to rising oil prices
Economy

Gov't to closely monitor market after Fed's aggressive monetary tightening

Finance Minister Choo Kyung-ho speaks to reporters after holding an extended meeting on the macroeconomic situation with chiefs of the Bank of Korea and top financial regulators in Seoul, June 16. Yonhap The government will keep close tabs on the financial market following the Federal Reserve's overnight rate hike decision as worries are growing over heightening volatility from the U.S.' aggressive monetary tightening, the country's top financial policymaker said Thursday.On Wednesday (local time), the Fed decided to hike its interest rate by 0.75 percentage points in the latest move to tighten monetary policy and tame soaring inflation. This was the first such steep rate increase since November 1997.Fed Chair Jerome Powell said the central bank is also considering a 0.5 or 0.75 percentage-point rate hike in the rate-setting meeting next month. Korea's financial market has been subdued with its key stocks and local currency losing ground in recent days. The Kospi fe

Jun 16, 2022
Gov't to closely monitor market after Fed's aggressive monetary tightening
Economy

Korea Times Forum features Policy Suggestions to Yoon Government

Oh Se-hoonLee Chang-yangBob SternfelsThe Korea Times will host a forum, titled "Policy Suggestions to Yoon Government," at the Korea Chamber of Commerce and Industry (KCCI) building in Seoul, June 21.The forum will discuss the Yoon Suk-yeol administration's economic vision and offer suggestions to help businesses enjoy sustainable growth. The event has been jointly planned with global consulting firm McKinsey&Company in cooperation with the Ministry of Trade, Industry and Energy.Trade, Industry and Energy Minister Lee Chang-yang will give an opening speech on the Korean government's policies, followed by a keynote speech by McKinsey Global Managing Partner Bob Sternfels. Seoul Mayor Oh Se-hoon will deliver a congratulatory speech.Two special lectures will be provided by two McKinsey partners: Choi Seung-hyuk on corporate sustainability and ESG values, and Pooya Nikooyeh on digital transformation.The panel discussion on "What Korea needs to become a global business hub" will be conducted and moderated by McKinsey partner Park Joong-ho.Both Korean and English interpretation service

Jun 15, 2022
Korea Times Forum features Policy Suggestions to Yoon Government
previous page
675676677678679
next page

Most Read in Economy