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    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

Korea suffers falls in production, consumption, investment in April

gettyimagesbankKorea's industrial output, consumption and investment declined together for the first time in over two years in April in the latest sign that the country's economic recovery momentum remains fragile, data showed Tuesday.Industrial production fell 0.7 percent from the previous month, compared with a 1.6 percent month-on-month rise in March, according to the data from Statistics Korea.Compared with a year earlier, industrial output grew 4.5 percent.Retail sales, a gauge of private spending, fell for the second consecutive month in April, sliding 0.2 percent after a 0.7 percent month-on-month fall in March.Facility investment fell 7.5 percent, larger than a 2.2 percent decline in March. Facility investment declined for the third straight month, as companies, led by chipmakers, have delayed investments amid global supply chain disruptions and rising raw material prices.This marked the first time since February 2020 that industrial output, consumption and facility investment declined together."Domestic demand remains rather sluggish. Economic growth momentum showed sputteri

May 31, 2022
Korea suffers falls in production, consumption, investment in April
Economy

BOK chief meets bank leaders following last week's rate hike

Bank of Korea Governor Rhee Chang-yong speaks at a meeting with heads of major local banks in Seoul, Monday. Courtesy of Bank of KoreaThe chief of the Bank of Korea (BOK) met with heads of major local banks Monday and explained the reasons for the central bank's recent back-to-back rate hike, his office said.BOK Gov. Rhee Chang-yong held his first meeting with chiefs of 10 banks, including KB Kookmin Bank and Shinhan Bank, and the head of the Korea Federation of Banks, late in the day.It was his first "financial consultation meeting" with major bank chiefs since he took office last month with a four-year term.During the closed-door meeting, Rhee explained the BOK's latest decision to hike the benchmark interest rate and discussed economic situations, according to the BOK.Other details have not been made available.The meeting came four days after the BOK raised its policy rate by a quarter percentage point to 1.75 percent as it strives to keep jumping inflation in check.Last week's rate increase was the fifth of its kind since August last year and it also marked the first time in abou

May 30, 2022
BOK chief meets bank leaders following last week's rate hike
Economy

Korea Exchange unveils two REITs indices

By Lee Min-hyungKorea Exchange building in Seoul / Courtesy of Korea ExchangeThe Korea Exchange has unveiled two real estate investment trusts (REITs) indices comprised of Korea's 10-largest companies, which are investing in commercial property.Any investor seeking stable returns during a period of lackluster stock market performance can eye REITs investments, which entail low price volatility and high dividend profitability, according to the exchange operator.The KRX REITs Top 10 index consists of the nation's 10 biggest REITs players, including SK REITs, Shinhan Alpha REITs and E REITs KOCREF.Their average profitability hovered well above the KOSPI 200 Index and the KOSPI between the beginning of 2021 and the end of May this year, according to the exchange. The 10 companies' stock profitability reached 24.9 percent, while the KOSPI 200 and the KOSPI suffered losses of 11.2 percent and 8.5 percent, respectively, during the same period.“We hope the new indices will meet demand from investors who want to make REITs investments and this will help invigorate the market here,&rdquo

May 30, 2022By Lee Min-hyung
Korea Exchange unveils two REITs indices
Economy

When will global oil prices peak?

A signboard at a gas station in Seoul shows the price of regular and premium-grade gasoline as well as diesel all in the range of 2,000 won ($1.61) per liter, Sunday, after their respective price rose for three consecutive weeks. YonhapAnalysts divided over whether inflation will diminish after oil prices hit highest levelBy Yi Whan-wooGlobal oil prices remain volatile due to a tight supply outlook, while analysts are divided on when the prices will peak amid concerns over Korea's trade deficit and accelerating inflation. Released on Monday, a report authored by Korea International Trade Association (KITA) senior researcher Hong Ji-sang said oil prices are “at their peak” and that Korea's trade deficit will enter “a phase of gradual descent” from the second half of 2022.The possible descent may placate inflation that grew at the fastest pace in over 13 years to 4.8 percent in April, considering that the trade deficit is largely attributed to a spike in import prices that pushed consumer prices up. “The trend of a worsening trade balance is commonly found

May 30, 2022By Yi Whan-woo
When will global oil prices peak?
Economy

KOSPI withstands external shocks better than Nasdaq, S&P

By Lee Min-hyungThe benchmark KOSPI has suffered fewer shocks than major stock indices in New York, Hong Kong and Shanghai, as the earnings fundamentals of listed Korean firms are expected to remain robust until the latter half of this year, analysts said Monday.According to data from the Korea Financial Investment Association, Korea's main bourse fell by 11.41 percent as of May 27, compared to the end of 2021. But the drop was not as steep as those of the aforementioned overseas indices.The Nasdaq extended a bigger loss of 22.45 percent during the same period on fears of a gradual tightening of monetary policy in the world's largest economy. The S&P 500 also dropped by 12.75 percent for the past five months on such monetary factors and widening external uncertainties sparked by Russia's invasion of Ukraine.Asia's economic powerhouses have also had to endure a heavier beating than Korean stocks. The Shanghai Stock Exchange Composite Index fell by 13.5 percent, while the Hang Seng Index in Hong Kong suffered a fall of 11.54 percent during the same period.Market analysts said Korea

May 30, 2022By Lee Min-hyung
KOSPI withstands external shocks better than Nasdaq, S&P
Economy

Korea could face short-term financial shock over high inflation: poll

A price of pork is revised at a restaurant in Seoul, May 26. According to a central bank poll, Korea faces a greater chance of shocks that could cause a short-term crisis to the financial system due mainly to high inflation. YonhapKorea faces a greater chance of shocks that could cause a short-term crisis to the financial system than six months ago due mainly to high inflation, a central bank poll showed Monday.According to the semiannual survey by the Bank of Korea (BOK), 26.9 percent of 80 experts at home and abroad said the possibility of the country experiencing "shocks that could cause a crisis in the financial system" within a year or so remains high or very high. It has more than doubled from six months earlier when 12.5 percent of the polled said the same thing.But the rate of the respondents who expected such risks in one to three years inched down to 32.9 percent from 36.1 percent.Some 96.2 percent also expected the country's financial system to be stable over the next three years.The experts pointed to high inflation as the No. 1 risk factor, with 34.2 percent citing it as

May 30, 2022
Korea could face short-term financial shock over high inflation: poll
Economy

Korea to dole out compensation to 3.71 mln pandemic-hit merchants

A merchant displays clothes at a store in Seoul, May 29. The government plans to provide cash handouts to 3.71 million small merchants in the latest move to support struggling small businesses. YonhapThe government plans to provide cash handouts to 3.71 million small merchants in the latest move to support struggling small businesses hit hard by the COVID-19 pandemic.On Sunday, the National Assembly passed a 62 trillion-won ($49.4 billion) extra budget bill, under which the merchants and micro business owners will be eligible for cash handouts of between 6 million won and 10 million won each.Business establishments in some 50 fields that have seen annual sales decline by over 40 percent on average due to the government's social distancing mandates, such as the tourism and concert industries, are eligible to receive at least 7 million won each. Cash handouts are expected to begin later in the day, according to the Ministry of SMEs and Startups. (Yonhap)

May 30, 2022
Korea to dole out compensation to 3.71 mln pandemic-hit merchants
Economy

Retail sales up 10.6% in April amid eased virus curbs

Visitors are seen at a department store in Seoul, April 5, 2021. Retail sales in Korea rose 10.6 percent year-on-year in April on the back of growing demand for fashion-related items and luxury goods amid eased antivirus curbs. YonhapRetail sales here rose 10.6 percent year-on-year in April on the back of growing demand for fashion-related items and luxury goods amid the easing of antivirus curbs to support people's return to normalcy, the industry ministry said Monday.The combined sales of 25 major offline and online retailers reached 13.6 trillion won ($10.86 billion) last month, up from 12.9 trillion won a year earlier, according to the data compiled by the Ministry of Trade, Industry and Energy.Sales from offline stores rose 10.2 percent to 7.01 trillion won, with demand for children's items and sporting goods surging 29.6 percent, and luxury goods, 22.5 percent. Fashion and other related items also saw their sales rise 16.6 percent, while the services sector enjoyed 16.3 percent year-on-year growth, the data showed.The growth is mainly attributable to the lifting of social dista

May 30, 2022
Retail sales up 10.6% in April amid eased virus curbs
Economy

Korea rolls out measures to tame inflation, stabilize living conditions

gettyimagesbankThe finance ministry on Monday unveiled a set of measures to curb inflation and stabilize people's living conditions, including the removal of import duties on key foodstuffs, amid concerns that mounting price pressure could hamper economic growth.Under the measures, the government plans to lift import tariffs on seven key food ingredients, such as cooking oil, pork and flour, until the end of this year.The government will cut value-added taxes on imports of coffee and cocoa beans until 2023 in a bid to help ease their import costs. It will not impose value-added taxes on packaged processed food, including kimchi and soybean paste, until next year."Amid high inflation, rising interest rates and a hike in housing expenses have weighed on households' living costs," Yoon In-dae, a senior ministry official, told a press briefing Friday, ahead of the official announcement.Korea faces mounting inflationary pressure as energy and food prices soared amid the protracted war between Russia and Ukraine and global supply disruptions. Demand-pull price pressure also rose due to the

May 30, 2022
Korea rolls out measures to tame inflation, stabilize living conditions
Economy

Ratio of renewable energy-based power generation hits new high in 2021

A solar power energy generator in Yeongju, North Gyeongsang Province / Courtesy of YeongjuThe amount of electricity generated from renewable energy in Korea touched an all-time high in 2021 on government efforts to cut greenhouse gas emissions, data showed Monday.Electricity produced from renewable energy sources came to 43,085 gigawatt hours last year, accounting for 7.5 percent of the country's total power generation, according to the state-run Korea Electric Power.The ratio was three times higher than a decade ago, and marked the first time for the share to surpass 7 percent.The volume of power generated from solar, wind and other renewable energy sources was also up 3.5 times from 10 years earlier.The sharp rise in renewable energy's proportion comes as Korea pushes to eliminate greenhouse gas emissions to cope with global warming and climate change.The proportion of electricity coming from liquefied natural gas (LNG) surged to 29.2 percent from 22.7 percent over the cited period.Coal-fired power plants accounted for 34.3 percent of the country's electricity output last year, dow

May 30, 2022
Ratio of renewable energy-based power generation hits new high in 2021
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