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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

Card spending climbs 11% in April on eased COVID-19 rules

gettyimagesbank Card use for settlement in Korea swelled 11 percent in April on eased anti-COVID-19 rules with spending on travel and transportation spiking, data showed Tuesday, in a sign the country's consumption is returning to pre-pandemic normalcy.Spending using credit, debit and prepaid cards came to 90.3 trillion won ($71.9 billion) in April, compared with 81.3 trillion won a year earlier, according to the data compiled by the Credit Finance Association.The number of approved card settlements also climbed 10.6 percent year-on-year to 2.14 billion cases in the month.In particular, card spending in the transportation sector, including railroad, aviation and bus services, shot up nearly 70 percent to 1.8 trillion won in April.Card use for settlement in the travel and related services area also surged 40.4 percent from a year earlier to 320 billion won."Card spending on travel and transportation has been rising sharply since the government sharply loosened COVID-

Jun 7, 2022
Card spending climbs 11% in April on eased COVID-19 rules
Economy

Foreign reserves down in May for 3rd month amid forex market volatility

Bank of Korea headquarters in Seoul / YonhapKorea's foreign reserves declined for the third straight month in May as the government unloaded the greenback to prevent the local currency from sharply weakening, central bank data showed Tuesday.The country's foreign reserves stood at $447.71 billion as of the end of May, down $1.59 billion from the previous month, according to the data provided by the Bank of Korea (BOK).This was the third straight month of declines, which are blamed on the government's efforts to ease market volatility ― its unloading of dollar holdings to arrest the local currency's sharp falls.The BOK did not provide the amount of dollars sold to stem the won's descent last month.Foreign reserves consist of securities and deposits denominated in overseas currencies, International Monetary Fund reserve positions, special drawing rights and gold bullion.The data showed that foreign securities were valued at $401.49 billion as of end-May, down $7.33 billion from the previous month, and accounting for 89.7 percent of the total foreign reserves.The value of deposits, howe

Jun 7, 2022
Foreign reserves down in May for 3rd month amid forex market volatility
Economy

Korea's household debt to GDP ratio highest among major economies

A citizen passes by a Hana Bank branch in downtown Seoul. NewsisBy Anna J. ParkKorea's household debt when compared to the size of the economy is found to be the highest among major countries, which will make it more difficult for the government to ease regulations on household loans.According to the latest “Global Debt” report by the Institute of International Finance (IIF), Korea ranked the highest among 36 major countries in terms of household debt to GDP ratio, as of the end of the first quarter this year.The country's household debt to GDP ratio stood at 104.3 percent, making Korea the only one among the 36 surveyed countries in which the level of household debt exceeded GDP. Korea was followed by Lebanon whose ratio stood at 97.8 percent, Hong Kong at 95.3 percent, Thailand 89.7 percent, the U.K. at 83.9 percent and the U.S. at 76.1 percent. The household debt to GDP ratio by neighboring countries like China and Japan all stood way below that of Korea, at 62.1 percent for China and 59.7 percent for Japan. While most countries' household debt to GDP ratios have decre

Jun 6, 2022By Anna J. Park
Korea's household debt to GDP ratio highest among major economies
Economy

Soaring corporate loans feared to increase default risks

A promotional poster for a loan product is seen from the window of a commercial bank in Seoul. / Korea Times fileBy Yi Whan-wooBusinesses are borrowing more money over an extended relief program that allows pandemic-stricken firms to postpone loan payments, amid a sharp rise in raw material prices and higher production costs, according to financial market analysts Monday.At the same time, the businesses face a bigger risk of default as the benchmark interest rate is rising fast. This means the combined amount of principal and interest on loans that they should pay back when the relief program ends is also increasing quickly.The combined amount of corporate loans extended between January and May by the country's top five banks ― KB, Shinhan, Hana, Woori and NongHyup ― increased by 32.1 trillion to 668.6 trillion won ($533.5 billion) compared to the end of 2021, according to data provided by the banks.In contrast, corporate loans extended by the banks increased by 24.4 trillion between January and May of 2021 compared to the end of 2020.Bank of Korea (BOK) data showed corporate loans n

Jun 6, 2022By Yi Whan-woo
Soaring corporate loans feared to increase default risks
Economy

Korea ranks No. 1 in household debt-to-GDP ratio in Q1

gettyimagesbank Korea had the highest household debt-to-gross domestic product (GDP) ratio among 36 major economies in the first quarter, a global financial report said Monday.The country's household debt-to-GDP ratio came to 104.3 percent in the January-March period, followed by Lebanon with 97.8 percent, Hong Kong with 95.3 percent, Thailand with 89.7 percent and Britain with 83.9 percent, according to data from the Institute of International Finance (IIF). Korea was the only country whose household debt exceeded its GDP among the 36 countries that included Japan, China, the United States and members of the European Union. Korea's outstanding household lending stood at 1,752.7 trillion won at the end of March, down 1.5 trillion won from end-December, according to data from the Bank of Korea. Household debt-to-GDP ratios have been on the decline in global economies due mainly to rising interest rates. Korea's ratio fell 0.7 percentage points from 105 percent in the

Jun 6, 2022
Korea ranks No. 1 in household debt-to-GDP ratio in Q1
Economy

Regulator to apply stricter rules on financial soundness of banks, card firms, insurers

Financial Services Commission (FSC) Vice Chairman Kim So-young attends a financial risk monitoring meeting on May 18 at the government complex in central Seoul. YonhapBy Anna J. ParkThe government plans to strengthen domestic regulations on financial companies' soundness requirements from early next month, aiming to proactively respond to growing external financial risks.The financial authorities have not been applying an ultra-stringent approach on financial companies' soundness requirements since April 2020, in a move to provide necessary liquidity to households and businesses struggling during the pandemic.However, the authorities have now decided it is time to tighten the reins again, as warning signs become louder and clearer that the Korean economy is facing threats. “A typhoon, which includes economic crises, has entered our country's backyard,” President Yoon Suk-yeol said last Friday, expressing the need for caution against unfavorable macroeconomic factors. He made the comments to reporters on his way to work in Yongsan District, Seoul.Those words are in line wi

Jun 5, 2022By Anna J. Park
Regulator to apply stricter rules on financial soundness of banks, card firms, insurers
Economy

Consumer inflation may rise above 6% in 2nd half

Fruit and vegetables are on display in front of stores at Namdaemun Market in central Seoul, Friday, when Statistics Korea announced monthly inflation grew at 5.4 percent, the sharpest year-on-year increase since August 2008. YonhapFinance ministry may revise up 2022 inflation outlookBy Yi Whan-wooKorea's inflation may breach over 6 percent in the second half, according to the Bank of Korea (BOK) and analysts, after consumer prices accelerated at the fastest pace in nearly 14 years and hit 5.4 percent in May. The gloomy forecast comes as inflationary pressure continues to mount over surging prices of energy and food, amid the ongoing war in Ukraine.Additionally, burgeoning spending over eased social distancing rules is anticipated to result in higher demand for goods and services, which correspondingly can push prices upward.“The inflation growth may go on over pressure from the demand side, and that the growth rate may hover around the 5 percent range in June and July, respectively,” BOK senior deputy governor Lee Seung-heon said during the central bank's meeting to chec

Jun 5, 2022By Yi Whan-woo
Consumer inflation may rise above 6% in 2nd half
Economy

Gasoline, diesel prices rise for 4th straight week amid tight supply

A driver pumps gas into his car at a gas station in Seoul, June 1. Yonhap The weekly average prices of gasoline and diesel in South Korea both climbed for the fourth consecutive week on a continued energy crunch around the world, industry data showed Saturday. The average retail price of gasoline stood at 2,013 won per liter from May 29 to June 2, up 19.3 won from a week ago, according to Opinet, a website operated by the state-run Korea National Oil. In Seoul, where oil prices are usually higher than other regions, the average retail price of gasoline hit 2,087.2 won per liter this week, up 23.2 won from a week earlier.The average retail price for gas in Daegu, the lowest across the country, rose 21.9 won to 1,988.3 won per liter.The local price of gasoline has been on the rise since the second week of May. The price hike is primarily attributed to Russia's invasion of Ukraine, which led to Western economies' trade sanctions against Russia. The average retail pric

Jun 4, 2022
Gasoline, diesel prices rise for 4th straight week amid tight supply
Economy

Office workers in Seoul suffer from 'lunchflation'

Jongno Street is crowded with people heading to lunch, June 3. Korea Times photo by Lee Yeon-wooBy Lee Yeon-wooOn Friday around noon, the Gwanghwamun intersection was flooded with office workers heading to lunch. Some already got in long lines in front of popular restaurants selling cold noodles, looking for a brief respite from the hot temperatures. It almost appears as if the pandemic has finally come to an end, giving some relief to owners of small businesses like restaurants and a chance to make up for their losses.However, restaurant owners now face another hardship ― inflation.According to data released by Statistics Korea Friday, consumer prices rose 5.4 percent in May from a year ago, marking the steepest rise in 13 years and nine months. Prices are changed on a menu board displayed in front of a restaurant in Jongno, June 3. Korea Times photo by Lee Yeon-woo“Sorry for the 500 won increase for each of the items on the menu, but it is due to inflation,” read a sign posted on a Chinese restaurant near Jonggak Station on Seoul Metro Line 1. Almost every restaurant ne

Jun 4, 2022By Lee Yeon-woo
Office workers in Seoul suffer from 'lunchflation'
Economy

Korea seeks US congressional support for trade, investment

Trade Minister Ahn Duk-geun, second from left, holds a meeting with U.S. Sen. Tammy Duckworth, second from right, in Seoul, June 3. YonhapSouth Korean Trade Minister Ahn Duk-geun drummed up support from the U.S. Congress on Friday to expand bilateral trade and investment, his office said.Ahn made the request during a meeting with Sen. Tammy Duckworth (D-IL) in Seoul, where the two noted the achievements of the May summit between Presidents Yoon Suk-yeol and Joe Biden, and discussed ways to deepen their economic ties, according to the Ministry of Trade, Industry and Energy.During the summit, Seoul and Washington agreed to work together to enhance partnerships on "critical and emerging technologies" through the promotion of investment and research and development cooperation, according to their joint statement."Related law in the U.S. is crucial for South Korean firms to implement investment plans smoothly," Ahn told the senator, stressing the need for bills on incentives for investment in the semiconductor sector and visas for professionals, among other things. Samsung Electronics has

Jun 3, 2022
Korea seeks US congressional support for trade, investment
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