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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

Number of big foreign investors in Korean stocks dips over 6 years

gettyimagesbankThe number of big foreign investors in Korean stocks has tumbled nearly 30 percent over the past six years, a corporate tracker said Thursday, in a sign the local bourse is increasingly losing its appeal amid a lack of transparent corporate governance.A total of 164 offshore investors had owned 5 percent or more of 246 listed companies in Asia's fourth-largest economy as of Friday, according to the Korea CXO Institute.The number of large foreign players was down 28 percent from March 2016, with that of big-stake companies shrinking 24 percent.The institute said the main reason is a steady decline in the number of big foreign investors who try to hold considerable stakes in local listed companies in pursuit of high dividends and large profits from price gains."Amid a decreasing chance of high dividends and profit-taking, local companies should step up efforts to win back investor confidence and make their governance structures more transparent," it said. In particular, the so-called panda shopping, which refers to big-pocket Chinese investors' purchases of Korean stocks

May 26, 2022
Number of big foreign investors in Korean stocks dips over 6 years
Economy

Inflation growth may exceed 5% in May: gov't official

First Vice Finance Minister Bang Ki-sun / YonhapThe government plans to announce a set of measures to tame inflationary pressure and stabilize people's livelihoods next week amid the prospect that the growth of consumer prices could top 5 percent, a senior official said Thursday.The country faces an urgent need to stabilize prices of food and other items closely linked to people's lives, according to First Vice Finance Minister Bang Ki-sun."Some experts forecast consumer inflation could exceed 5 percent in May, accelerating from the growth rate in April," Bang said at a government vice-ministerial meeting on the economy.Consumer prices spiked 4.8 percent year-on-year in April, the fastest increase in more than 13 years, due to soaring energy costs and a rebound in demand from the pandemic. The April figure followed a 4.1 percent rise in March.If inflation growth tops 5 percent in May, it would be the first time since September 2008 that consumer prices climbed to that range.The International Monetary Fund forecast Korea's 2022 inflation would grow 4 percent, doubling from the central

May 26, 2022
Inflation growth may exceed 5% in May: gov't official
  • BOK hikes policy rate to 1.75% to combat inflation
Economy

BOK hikes policy rate to 1.75% to combat inflation

BOK Gov. Rhee Chang-yong presides over a rate-setting meeting at Bank of Korea in Seoul, May 26. YonhapThe central bank hiked its key policy rate by a quarter percentage point Thursday as it strives to rein in inflation that is running high amid soaring oil and commodity prices driven up by global supply chain disruptions and the ongoing war in Ukraine.As widely expected, the monetary policy board of the Bank of Korea (BOK) voted to increase the benchmark seven-day repo rate to 1.75 percent at a rate-setting meeting held early in the day.This marked the third rate hike this year after 0.25 percentage-point increases in both January and April. It also represented the fifth rise since August last year when the central bank began rolling back its easy monetary policy put in place for about two years to bolster the pandemic-affected economy.The latest rate hike came as the country grapples with high-rise inflation pushed up by soaring oil, energy and other major commodity prices amid the protracted Russia-Ukraine war that has exacerbated global supply chain disruptions.Korea's consumer p

May 26, 2022
BOK hikes policy rate to 1.75% to combat inflation
  • Inflation growth may exceed 5% in May: gov't official
Economy

Over 7 in 10 stocks suffer setbacks over past year

A currency trader walks near the screens showing the KOSPI, left, and the foreign exchange rate between the U.S. dollar and Korean won in Seoul, May 25. Asian stock markets were mixed Wednesday after Wall Street sank on weak U.S. housing sales and a profit warning by a prominent social media brand. AP-Yonhap More than 7 out of 10 listed companies in Korea have suffered stock price setbacks over a one-year period as investors remain disheartened by rate hikes in major economies, data showed Thursday.According to the data from the Korea Exchange, 72.4 percent of the 2,498 firms traded on the country's main and minor bourses, or 1,809, saw their share prices decline from the end of May last year.Nearly 77 percent of the 940 companies listed on the main KOSPI market suffered setbacks, with share prices of about 70 percent of the 1,558 firms traded on the tech-heavy Kosdaq declining over the cited period.Market watchers said the local stock market has been bearish as inv

May 26, 2022
Over 7 in 10 stocks suffer setbacks over past year
Economy

Regulatory clarity is key feature of Hong Kong as fintech hub: fintech association

Korea's fintech players advised to look beyond domestic marketsBy Kim Bo-eunFintech Association of Hong Kong Chairman Benjamin Quinlan / Korea Times photo by Kim Bo-eunHONG KONG ― Deregulation is often cited as the key to spurring innovation and the growth of markets. But the latest Terra-triggered cryptocurrency crash is shedding light on the importance of having a sound regulatory regime.Hong Kong has developed into a fintech hub, backed by its status as a global financial center, and also by an adequate regulatory environment, the head of the city's fintech association said.“I would say it is an 'institution-first' approach, under which the mass retail environment is guarded by having institutions first test out new innovations and then potentially relaxing regulations,” Benjamin Quinlan, chairman of the Fintech Association of Hong Kong (FTAHK), said in an interview with The Korea Times. “A case in point is Hong Kong's regulations for virtual assets, given all of the calamity, scams and potential hazards associated with the crypto industry.” Hong Kong regul

May 25, 2022By Kim Bo-eun
Regulatory clarity is key feature of Hong Kong as fintech hub: fintech association
Economy

Users of mobile financial services grow over 2 years

gettyimagesbankKoreans' use of mobile banking and other online financial services increased in 2021 from two years earlier as customers preferred non-contact services amid the coronavirus pandemic, central bank data showed Wednesday.The Bank of Korea (BOK) said its 2021 survey of 3,536 Koreans aged 19 or older showed 65.4 percent of the respondents answered they had used mobile financial services in the latest one-month period, The percentage was up from 57.1 percent in 2019, before the COVID-19 outbreak in the country.In addition, roughly 42 percent of those surveyed said there had been a change in the frequency of mobile financial service uses.In particular, people aged 40 or younger and households with a yearly income of 30 million won ($23,740) resorted more to mobile financial services, according to the findings.By means of payment, those in their 20s made greater use of debit cards, with people in their 30s-50s relying more on credit cards. Koreans aged 60 or older preferred cash.According to separate BOK data released in March, the daily use of online banking services, includi

May 25, 2022
Users of mobile financial services grow over 2 years
Economy

Business sentiment slightly improves for June

gettyimagesbank Korean's business sentiment slightly improved for June, a central bank survey showed Wednesday.The business sentiment index (BSI) for local companies came to 87 for June, up one point from the previous month, according to the poll by the Bank of Korea (BOK).The BSI for manufacturers fell from 88 to 87 over the period, amid rising costs and the COVID-19-related lockdown of Chinese cities. The BSI for non-manufacturing businesses rose from 85 to 86 due to the loosening of social distancing rules against COVID-19.The index measures corporate prospects for business conditions in the following month. A reading below 100 means pessimists outnumber optimists.The BSI for large companies rose from 92 to 93 over the period, with that for smaller firms falling from 83 to 80.The BSI for exporters climbed from 93 to 97, while the index for domestic demand-oriented businesses declined from 85 to 81, the survey showed.The survey was conducted on 2,789 companies acr

May 25, 2022
Business sentiment slightly improves for June
Economy

Consumption of gasoline, diesel sinks 18 pct in April

A gas station in Seoul is seen in this May 22 photo. Yonhap South Korea's consumption of gasoline and diesel sank more than 18 percent in April from a year earlier due to high international crude prices, data showed Wednesday.Asia's fourth-largest economy consumed a combined 17.4 million barrels of gas and diesel last month, down 18.3 percent from a year earlier, according to the data from the state-run Korea National Oil Corp.It was also down 5.8 percent from 18.4 million barrels the previous month.Gasoline and diesel consumption had been on a steady decline this year. The amount shrank to 18.5 million barrels in February from about 22 million barrels in January.April's tumble was attributed mainly to soaring international oil prices in the wake of Russia's invasion of Ukraine. In March, crude prices even flirted with US$130 per barrel.An industry source also said delayed consumption was also responsible as the government was set to cut fuel taxes drastically in Ma

May 25, 2022
Consumption of gasoline, diesel sinks 18 pct in April
Economy

Auditing firms compete to secure rookie accountants

gettyimagesbankBy Anna J. ParkThe country's big four accounting firms ― Deloitte Anjin, EY Korea, Samil PwC and Samjong KPMG ― are competing to hire rookie accountants as demand for accounting services surged following the revision of Korea's external audit law. Other financial businesses such as brokerages, asset management companies, private equity funds and investment banks are also trying to lure accountants by fattening their paychecks.The four major accounting firms said their total number of new hires for this year is expected to exceed 1,300, which would be the highest number ever.Samjong KPMG plans to recruit nearly 400 new accountants this year, continuing the firm's past record of recruiting the largest number of new accountants for seven consecutive years. Samil PwC also plans to open about 385 to 390 positions for new accountants, which is nearly the same size as last year. The number of the new hires rose by nearly 50 percent back in 2020 due to soaring demand for accounting services by large corporate clients.The case is similar for Deloitte Anjin and EY Korea, as the

May 25, 2022By Anna J. Park
Auditing firms compete to secure rookie accountants
Economy

Consumers' inflation outlook hits 10-year high

Bank of Korea officials give a press briefing on household credit at the BOK headquarters in central Seoul, Tuesday. The bank also gave a separate briefing on consumers' expectations on inflation on the same day. YonhapBOK survey may prompt multiple rate hikes over next 12 months By Yi Whan-wooConsumers' expectation for inflation hit its highest level in nearly a decade at 3.3 percent in May, according to a Bank of Korea survey (BOK), Tuesday, fueling concerns of intensifying inflationary pressure amid soaring oil and raw materials prices.Accordingly, it is presumed that the BOK may raise its key rate faster than expected to preemptively keep inflation under control.In its latest survey, the BOK found that consumers' expected inflation will average around 3.3 percent over the next 12 months, up from 3.1 percent in April. The bank surveyed 2,500 households from May 10 to 17. Concerning items, 70.8 percent of respondents said that petrochemical products will be affected most by inflation. Another 38.7 percent picked agricultural and livestock products, while the other 35.1 percent said

May 24, 2022By Yi Whan-woo
Consumers' inflation outlook hits 10-year high
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