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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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Economy

ECB signals rates lift-off, eyes bigger move in September

President of the European Central Bank (ECB) Christine Lagarde speaks during a press conference after a meeting of the bank in the Hermitage, Amsterdam, the Netherlands, June 9. According to an ECB statement, the Governing Council intends to raise key interest rates by 25 basis points at its July monetary policy meeting. EPA-YonhapThe European Central Bank ended a long-running stimulus scheme on Thursday and said it would deliver its first interest rate hike since 2011 next month, followed by a potentially larger move in September.With inflation at a record-high 8.1 percent and still rising, the ECB now fears that price growth is broadening out and could morph into a hard-to-break wage-price spiral, heralding a new era of stubbornly higher prices.The central bank for the 19 countries that use the euro said it would end quantitative easing July 1, then raise interest rates by 25 basis points July 21. It will then hike again Sept. 8 and go for a bigger move, unless the inflation outlook improves in the meantime."We will make sure that inflation returns to our 2 percent target over the

Jun 10, 2022
ECB signals rates lift-off, eyes bigger move in September
Economy

Korea posts 1st current account deficit in 2 years in April

Containers for exports and imports are stacked at a pier in Korea's largest port city of Busan, June 6. YonhaAccount deficit comes amid high commodity costs, dividend paymentsKorea posted its first current account deficit in two years in April as soaring energy and commodity prices pushed up import bills, and overseas dividend payments expanded, central bank data showed Friday.However, the Bank of Korea (BOK) said the April deficit appears to be temporary and the current account will return to a surplus in May, given that seasonal factors such as dividend payments will be removed.According to the preliminary data from the BOK, the current account shortfall came to $80 million in April, compared with a surplus of $180 million registered a year earlier.This was the first current account deficit since April 2020, when the country logged a deficit of $4.02 billion. It also turned around from a surplus of $7.06 billion the previous month.During the January to April period, the cumulative account surplus reached $15.31 billion, down from a surplus of $22.52 billion in the same period a yea

Jun 10, 2022
Korea posts 1st current account deficit in 2 years in April
Economy

Prices of gasoline, diesel hit over 2,040 won amid Russia-Ukraine war

A sign shows oil prices at a gas station in Seoul, March 26. The average prices of gasoline and diesel in Korea hit over 2,040 won ($1.62), data showed Thursday. Yonhap The average prices of gasoline and diesel in Korea have hit over 2,040 won ($1.62), data showed Thursday, as tight global supplies continue to drive up fuel costs amid Russia's war with Ukraine.The average retail price of gasoline stood at 2,047.19 won per liter as of 4 p.m., Wednesday, up 5.15 won from the previous day, according to Opinet, a website operated by the state-run Korea National Oil Corp. The price of gasoline breached the 2,000 won mark March 15, the first time in more than nine years. It briefly fell below 2,000 in April, before bouncing back late last month. Observers say the price of gasoline could soon break its previous record high of 2,062.55 won logged in April 2018. The average price of diesel was 2,042.99 won per liter as of the same time Wednesday, up 6.47 won from a day earli

Jun 9, 2022
Prices of gasoline, diesel hit over 2,040 won amid Russia-Ukraine war
Economy

Gov't to launch deregulation task force

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, right, presides over an economy-related ministerial meeting at Government Complex Sejong, Thursday. YonhapNew economic roadmap to be unveiled next weekBy Yi Whan-woo Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho underscored the need for a “drastic paradigm shift in economic policy,” Thursday, as the government is buckling down to stimulate a market-driven economy, with the aim of overcoming the structural crisis of low growth and polarization, as promised by President Yoon Suk-yeol. Choo said he will launch a special task force later this month for economy-related ministers to get together and come up with innovative measures to achieve a regulatory overhaul.Choo's remark came as the job is getting trickier for Yoon's economic team to juggle both growth and inflation effectively a month after the new government was launched, as witnessed by the string of downgraded GDP forecasts and the sharply raised inflation outlook for Korea.Those risks make the reorganization of difficu

Jun 9, 2022By Yi Whan-woo
Gov't to launch deregulation task force
Economy

Securities firms in hot seat after prosecutor-turned-governor hints at new probe

Financial Supervisory Service Governor Lee Bok-hyun, left, enters the regulatory agency's headquarters in Seoul, Wednesday. YonhapNew FSS chief hints at reinvestigating Lime, Optimus casesBy Lee Min-hyungSecurities firms could end up in the hot seat after the country's regulatory watchdog hinted at re-launching a probe into the misselling of problematic fund products managed by Lime Asset Management and Optimus Asset Management.Major brokerage houses here, including NH Investment & Securities and KB Securities, were slapped with sanctions by the Financial Supervisory Service (FSS) last year for their mishandled sale of the risky fund products.But with new FSS Governor Lee Bok-hyun taking office on Tuesday, the prosecutor-turned-governor hinted at the possibility of reinvestigating the fund fiasco.“The watchdog will look into whether we have to launch a probe into the case again, as some raise problems (regarding the need to do so),” Lee said Wednesday.Officials from the FSS were unavailable to comment on further details. In general, the authority does not reinvestigat

Jun 9, 2022By Lee Min-hyung
Securities firms in hot seat after prosecutor-turned-governor hints at new probe
Economy

Foreigners' net stock selling continues for 4th month in May

A currency trader walks by screens showing the Korean Securities Dealers Automated Quotations (KOSDAQ), center, and the foreign exchange rates at a foreign exchange dealing room in Seoul, June 8. AP-Yonhap Foreigners withdrew more money than they injected into Korea's stock markets for the fourth straight month in May amid worries over economic slowdowns in major countries and the fallout from the ongoing war in Ukraine, central bank data showed Thursday.Net foreign money outflows from the main KOSPI and secondary tech-heavy KOSDAQ markets, came to $1.29 billion last month, according to the data from the Bank of Korea (BOK).This represented the fourth straight month that foreigners had pulled out more money than they parked in local equities. But the figure was much smaller than the previous month's net outflow of $4.26 billion.Korea's stock markets have been weighed down by worries over tightening monetary policy in advanced countries and corresponding economic slo

Jun 9, 2022
Foreigners' net stock selling continues for 4th month in May
Economy

BOK voices concerns over growing inflation expectations, weak currency amid rising prices

Bank of Korea / Yonhap Expectations of rising inflation have been adding upward pressure on prices, and their impact on the trajectory of overall inflation will likely intensify going forward, the central bank said Thursday.In a report on economic and financial conditions submitted to the National Assembly, the Bank of Korea (BOK) also voiced concerns that the local currency's fall against the U.S. dollar is having a growing impact on inflation, underlining the need to step up monitoring of volatility in the foreign exchange market."A recent rise in expectations of inflation has already played a role in raising inflationary pressure, and there is a possibility that the pressure could intensify further down the road," the BOK said. The BOK said the ripple effect from the growing expectations has materialized mostly through hikes in wages and product prices amid rising energy and commodity bills."In particular, inflation pressure will likely intensify down the road th

Jun 9, 2022
BOK voices concerns over growing inflation expectations, weak currency amid rising prices
  • Economic recovery momentum weakens: KDI
Economy

Economic recovery momentum weakens: KDI

Stacks of containers at a port in Korea's southeastern city of Busan are seen in this Dec. 1, 2021, file photo. Korea's economic recovery momentum has weakened as the manufacturing industry is losing steam due to prolonged supply chain disruptions and soaring raw material prices. Yonhap Korea's economic recovery momentum has weakened as the manufacturing industry is losing steam due to prolonged supply chain disruptions and soaring raw material prices, a state-run think tank said Thursday.In-person services gained traction due to the lifting of virus curbs, but export growth has gradually eased amid the global economic slowdown and China's COVID-19 lockdowns, the Korea Development Institute (KDI) said in a monthly economic assessment report."Korea's economic recovery is losing steam over global supply chain disruptions and surging raw material prices, despite the recent upturn in the services industry," the report said.Concerns about stagflation, a mix of slowing gr

Jun 9, 2022
Economic recovery momentum weakens: KDI
  • BOK voices concerns over growing inflation expectations, weak currency amid rising prices
Economy

OECD cuts Korea's 2022 growth outlook to 2.7%, hikes inflation forecast to 4.8%

Korea's Q1 GDP growth revised down to 0.6%By Yi Whan-wooThe Organization for Economic Cooperation and Development (OECD) lowered its 2022 growth forecast for Korea from 3 percent to 2.7 percent, Wednesday, in the latest bleak economic outlook for the world's 10th-largest economy.The OECD's forecast comes as a protracted war between Russia and Ukraine, China's COVID-19 lockdown and other global economic uncertainties impact the world's economy and heighten the risk of stagflation _ a toxic mixture of stagnant growth and rising inflation accompanied by high unemployment.The Paris-headquartered OECD correspondingly cut its global economic outlook to 3 percent from a previous forecast of 4.5 percent, while raising its inflation projection for the OECD member countries to 8.8 percent from a previous estimate of 4.4 percent.For Korea, the inflation outlook was hiked to 4.8 percent from an earlier forecast of 2.1 percent.Shoppers line up to pay for groceries at a discount store in Seoul, Tuesday. Yonhap“The OECD assesses that the world, despite its fast recovery from the pandemic in 2

Jun 8, 2022By Yi Whan-woo
OECD cuts Korea's 2022 growth outlook to 2.7%, hikes inflation forecast to 4.8%
Economy

Luna price extends bigger loss; investors advised to avoid speculative investments

The graph shows the daily price movement of the rebranded Luna token. Screenshot from CoinMarketCapBy Lee Min-hyungCryptocurrency investors are urged to be on high alert due to the huge price volatility of the rebranded Luna token, as its price keeps showing a downward trajectory without any clear signs of a rebound. As of 3 p.m. Wednesday, Luna's price came in at $3.40 (4,260 won), down by around 20 percent from the previous day, according to data from CoinMarketCap.The new version of the ill-fated Luna token grabbed the attention of crypto investors, as its price has continued to fluctuate with huge volatility for the past few weeks since its launch in late May. Up until late May and early June, Luna had repeated volatile ups and downs with a drastic curve.Nonetheless, it has since lost its recovery momentum, with its valuation showing few signs of bouncing back. This situation has sparked concerns that more retail crypto investors might invest in Luna to reap short-term profits by short selling.It remains to be seen whether the new Luna token will be able to achieve a major reboun

Jun 8, 2022By Lee Min-hyung
Luna price extends bigger loss; investors advised to avoid speculative investments
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