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  • 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
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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

Korea's global competitiveness ranking fell to 27th in 2022

Containers for exports and imports are stacked at a pier in Korea's largest port city of Busan on June 10. YonhapKorea's global competitiveness ranking fell by four notches this year from the previous year amid the economic slowdown and a continued rise in the national debt, a report showed Wednesday.The country ranked 27th in terms of global competitiveness among 63 countries surveyed, according to the 2022 report by the International Institute for Management Development (IMD).The IMD, a Switzerland-based international institution, has been releasing the report every year since 1989 based on a country's economic achievements, infrastructure, and government and corporate efficiency.Among 27 nations with a population of more than 20 million or more, South Korea also ranked ninth this year, down one notch from a year earlier, In terms of economic achievements ― covering the domestic economy, international trade and employment ― Korea saw its ranking fall by four notches to 22nd, due largely to the previous year's base effect.Asia's fourth-largest economy expanded 4 percent last year, t

Jun 15, 2022
Korea's global competitiveness ranking fell to 27th in 2022
Economy

BOK board members highlight need for further rate hikes to tame inflation: minutes

Bank of Korea (BOK) governor Rhee Chang-yong, center, bangs the gavel during the BOK's monetary policy board meeting in Seoul in this May 26 file photo. Joint Press CorpsMembers of the central bank's rate-setting board called for further rate hikes, as they decided to raise borrowing costs last month, underlining the need to tame rising inflation pressures, minutes from their latest policy meeting showed Tuesday.In the rate-setting meeting held on May 26, the monetary policy board of the Bank of Korea (BOK) voted unanimously to hike the policy rate by a quarter percentage point to 1.75 percent. It marked the third rate hike this year after 0.25 percentage-point increases in both January and April as the country grapples with rising inflation pressures amid soaring oil and commodity prices.The latest hike decision was accompanied by the central bank's revision of its inflation outlook for this year to 4.5 percent from 3.1 percent projected three months earlier. The forecast, if proved, could be the fastest price growth since 2008, when prices grew 4.7 percent.The minutes showed that a

Jun 14, 2022
BOK board members highlight need for further rate hikes to tame inflation: minutes
Economy

Authorities step up vigilance over financial markets

Financial Services Commission (FSC) Vice Chairman Kim So-young speaks during a market monitoring meeting hosted by the financial regulator at the Seoul government complex, Tuesday morning. Courtesy of FSCFSC, BOK and finance ministry stress need for alertness over market risk factorsBy Anna J. ParkResponding to increased global macroeconomic uncertainties, financial authorities on Tuesday reaffirmed their strong determination to closely monitor the markets and take preemptive steps, if necessary, to deal with volatility.During a market monitoring meeting hosted by the Financial Services Commission (FSC) on Tuesday morning, the top financial regulator and other key financial agencies, including the Financial Supervisory Service (FSS) and the Korea Center for International Finance (KCIF), discussed the current global financial market situation and assessed the main risk factors. “The current economic and financial situations represent a pretty difficult phase, where a high level of inflation continues against the backdrop of major countries accelerating their monetary tightening

Jun 14, 2022By Anna J. Park
Authorities step up vigilance over financial markets
Economy

Korean won may dip below 1,300 per dollar if Fed takes 'giant step'

Electronic signboards at Hana Bank in Seoul shows the benchmark Kospi fell 0.46 percent to 2,492.97, while the Korean currency closed at 1,286.4 per dollar, down 2.4 won from the previous close, Tuesday. YonhapKospi falls below 2,500 for 1st time in 19 monthsBy Yi Whan-wooThe value of the Korean won is expected to fall below 1,300 per U.S. dollar for the first time in nearly 13 years, if the U.S. opts to take a “giant step” by raising its benchmark rate by three-quarters of a percentage point during the U.S. Federal Reserve's rate-setting meeting scheduled to be held from Tuesday to Wednesday (local time), according to market analysts.The speculation comes as the Korean currency is losing ground fast against the greenback and at one point, breached the 1,290 won during the intraday trading session Tuesday, after U.S. monthly inflation hit a new 40-year high of 8.6 percent ― in government data ― released on Friday.The local currency closed at 1,286.4 per dollar, down 2.4 won from Monday's close. It fell to 1,292.5 won during the intraday trading session, which was lower th

Jun 14, 2022By Yi Whan-woo
Korean won may dip below 1,300 per dollar if Fed takes 'giant step'
Economy

New tax agency chief

National Tax Service (NTS) Commissioner Kim Chang-ki makes a speech at his appointment ceremony held at NTS headquarters in Sejong City, Tuesday. Kim vowed to offer trustable services, based on communication with taxpayers. He also promised to be prudent in tackling tax evasion. Courtesy of NTS

Jun 14, 2022By Yoon Ja-young
New tax agency chief
Cryptocurrency

Investors panic due to plunge in values of major cryptocurrencies

By Lee Min-hyungThe prices of Bitcoin and Ethereum took a nosedive on Tuesday amid escalating fears that monetary authorities here and abroad will step up their fight against inflation with more aggressive monetary tightening.Bitcoin's price plunged to an 18-month low, failing to defend the 30 million won ($23,200) mark. Ethereum, the world's second-most-valuable cryptocurrency, also plunged by more than 30 percent in the past week. Ethereum was traded at around 1.52 million won on Tuesday afternoon, a drop of more than 70 percent from its previous high in November 2021, according to data from Korea's largest crypto exchange, Upbit.This year, crypto investors have been spooked by the U.S. Federal Reserve's monetary normalization. After ending its near-zero interest policy in March this year, the Fed has since raised its benchmark rate to 1 percent. But with the world's largest economy grappling with soaring inflation in the wake of the pandemic, the Fed is sending repeated signals for additional rate hikes.Last month, an unexpected meltdown of the once-promising Terra and Luna coins

Jun 14, 2022By Lee Min-hyung
Investors panic due to plunge in values of major cryptocurrencies
Economy

Contribution Inflation has different colors, and so does monetary policy

By Stephen LeeStephen Lee is the chief economist at Meritz Securities, Seoul. Courtesy of Meritz SecuritiesCentral banks are moving fast where there is demand-driven inflationInflation is now everywhere, is QE to blame?Currently we are observing inflation numbers that we haven't seen for decades. Consumer price inflation (CPI) growth (12-month change) topped 8 percent in the U.S. in recent months, with that of the Eurozone and the U.K. reaching over 7 percent. Korean CPI growth came in at above 5 percent in May 2022, which is the fastest growth since 2008. What brought us here and why are central banks rushing to address inflation?Some blame quantitative easing as the cause of global inflation, but it is not what explains inflation today. The large-scale asset purchases of the U.S. Federal Reserve (Fed) had its monetary base ― or the amount of currency in circulation and in reserves ― rise more than twofold in the past two years, but that has not led to substantial increases in broad money, a more inclusive measure of the nation's money supply. This situation implies that the money m

Jun 14, 2022
[Contribution] Inflation has different colors, and so does monetary policy
Economy

ICT exports up 14% in May on solid demand for chips, displays

gettyimagesbankKorea's exports of information and communication technology (ICT) products rose 13.9 percent in May from a year earlier on brisk overseas demand for chips and displays, data showed Tuesday.Outbound shipments of ICT products came to $20.2 billion last month, up from $17.73 billion a year earlier, according to the data compiled by the Ministry of Science and ICT.This was the highest-ever tally for May since the government began compiling related data in 1996. The country has seen double-digit growth in ICT exports since April last year.ICT imports grew 19.8 percent year-on-year to $12.61 billion last month, resulting in a trade surplus of $7.59 billion in the sector, the data showed.Solid demand for chips and displays, Korea's key export items, boosted ICT exports last month.Exports of semiconductors advanced 14.9 percent year-on-year to $11.61 billion in May, exceeding the $10 billion mark for the 13th straight month. It was also the highest figure for any May.Outbound shipments of displays were up 2.4 percent to $1.82 billion, helped by high demand for organic light em

Jun 14, 2022
ICT exports up 14% in May on solid demand for chips, displays
Economy

BOK ready to take measures amid market turmoil

The Bank of Korea / Yonhap The central bank said Tuesday it plans to "actively" take steps to stabilize the financial market that has been hit hard by fears about more aggressive rate hikes by the U.S. Federal Reserve than had previously been thought.Global financial markets have been roiled this week amid the growing prospect that the Fed may hike interest rates by a larger-than-expected margin of 0.75 percentage points this week to tame high-flying inflation."As volatility in Korea's financial markets is expected to sharply increase, the Bank of Korea (BOK) will closely monitor the situation and take active steps to stabilize the market, when needed," Lee Seung-heon, senior deputy governor of the BOK, said at an emergency financial meeting.Korea's stocks and currency tumbled Monday as investor sentiment was chilled by growing inflation risks and concerns about a global economic recession.The benchmark stock price index plunged 3.52 percent to hit a 19-month low Mo

Jun 14, 2022
BOK ready to take measures amid market turmoil
  • S&P 500 confirms bear market as recession worry grows
Economy

S&P 500 confirms bear market as recession worry grows

A pedestrian walks past the New York Stock Exchange in New York, in this Jan. 24, file photo. U.S. equities tumbled on June 13, with the SP 500 confirming it is in a bear market, as fears grow that the expected aggressive interest rate hikes by the Federal Reserve would push the economy into a recession. AP-YonhapU.S. equities tumbled on Monday, with the SP 500 confirming it is in a bear market, as fears grow that the expected aggressive interest rate hikes by the Federal Reserve would push the economy into a recession.The benchmark SP index has fallen for four straight days, with the index now down more than 20 percent from its most recent record closing high to confirm a bear market began on Jan. 3, according to a commonly used definition.All the major SP sectors were sharply lower, with only about 10 components of the SP 500 in positive territory on the day. Markets have been under pressure this year as climbing prices, including a jump in oil prices due in part to the war in Ukraine, have put the Fed on track to take strong actions to tighten its monetary policy, such as interest

Jun 14, 2022
S&P 500 confirms bear market as recession worry grows
  • BOK ready to take measures amid market turmoil
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