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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

Wealth gap expands among young generations

gettyimagesbankBy Anna J. ParkThe wealth gap among the country's 20somethings and 30somethings has widened, following fast-rising asset prices over the past couple of years. The top 20 percent asset bracket of people in their 20s and 30s hold 35 times more wealth than those in the lowest 20 percent asset bracket. This is according to data submitted by Statistics Korea to Democratic Party of Korea lawmaker Kim Hoi-jae. The lawmaker's office announced Monday that the average asset size of local households led by those in their 20s and 30s stood at 356 million won ($277,000), up about 11 percent from last year's 318 million won. Yet, when the average figure is examined closer, each asset bracket group logged a different rate of asset increases, widening the asset gap for the age group.While the lowest 20 percent bracket had on average 27 million won, the top 20 percent bracket averaged 981 million won, widening by 12.8 percent from the past year. This means the top 20 percent asset group holds 35.27 times more than the lowest 20 percent asset bracket group, worsening compared to last ye

May 16, 2022By Anna J. Park
Wealth gap expands among young generations
Economy

2 bank embezzlement cases in less than month boosts chance of gov't controlling FSS

The logo of Shinhan Bank is seen at its headquarters in central Seoul. Korea Times fileShinhan Bank employee allegedly embezzled 200 million won By Yi Whan-wooThe Financial Supervisory Service (FSS) appears to be facing a growing possibility of coming under government control again, over an embezzlement allegation at a Shinhan Bank branch office in Busan. The case hints at another instance of the FSS's lax oversight of the financial market, including the embezzlement of 61.4 billion won ($47.8 million) at Woori Bank headquarters in late April.According to the police and Shinhan Bank, Monday, an employee at the lender's Busan office stole 200 million won from a safe where the cash for loans was kept. “We've reported the case to the police after it was found out by our internal controlling system, May 12,” the bank said. “We will make sure to prevent such a case from happening again.”The case does not have to be reported to the FSS, as stipulated by the regulation that embezzlement below 300 million won need not be reported.However, some financial sources s

May 16, 2022By Yi Whan-woo
2 bank embezzlement cases in less than month boosts chance of gov't controlling FSS
Economy

Stock market's trading volume dips amid growing uncertainty

A currency trader walks by screens showing foreign exchange rates at a foreign exchange dealing room in Seoul, May 13. Korea's main stock market saw its trading volume shrink more than 16 percent this month from a year earlier. AP-YonhapKorea's main stock market saw its trading volume shrink more than 16 percent this month from a year earlier, data showed Monday, as investors remained on the sidelines amid inflation worries and other negative factors.The daily trading volume of the country's main bourse averaged 940 million shares during 10 sessions between May 2 and Friday, down 16.4 percent from a year ago, according to the data from the Korea Exchange.In particular, the average daily trading volume of the top 10 caps, excluding major battery maker LG Energy Solution, tumbled nearly 40 percent over the cited period.Pharmaceutical giant Samsung Biologics posted the biggest year-on-year drop of 87.3 percent, trailed by steel titan POSCO Holdings with 63.5 percent and leading automaker Hyundai Motor with 45 percent.Analysts attributed the drop in trading volume to monetary tightening

May 16, 2022
Stock market's trading volume dips amid growing uncertainty
Economy

Finance minister, central bank chief see eye to eye on policy coordination

Finance Minister Choo Kyung-ho, left, shakes hands with Bank of Korea Governor Rhee Chang-yong during a meeting in Seoul, May 16.Korea's finance minister and its central bank chief stressed the need for close policy coordination Monday as the country's economy faces heightened uncertainty amid high inflation.Finance Minister Choo Kyung-ho and Bank of Korea (BOK) Governor Rhee Chang-yong held a meeting to discuss ways to stabilize inflation, financial market volatility and policy coordination."The Korean economy is in a grave situation. As policy tools are quite limited, I think the government and the central bank need to communicate to provide a good policy mix," Choo said at the start of the meeting.Rhee made similar remarks, saying the need to harmonize fiscal and monetary policies has increased more than ever.Last week, the finance ministry proposed a record extra budget of 59.4 trillion won ($46.3 billion) in the latest move to compensate pandemic-hit merchants for their losses caused by strict COVID-19 curbs.Critics said the extra budget was not in sync with the central bank's m

May 16, 2022
Finance minister, central bank chief see eye to eye on policy coordination
Economy

Gov't to prioritize stabilization of rising product prices

Finance Minister Choo Kyung-ho, left / YonhapFinance Minister Choo Kyung-ho said Sunday the government will make it a top priority to stabilize rising product prices fueled by the Russia-Ukraine war and other external uncertainties. The government will set up measures for price stabilization through consultations with related ministries as quickly as possible, the finance minister said in a meeting in Seoul. "Korea stands at a serious and urgent stage as the prolonged Russia-Ukraine war, major economies' monetary tightening policies and higher inflationary pressures are affecting its economy," he said. The government said it will initially focus on stabilizing the prices of flour and diesel to help reduce consumer prices, which rose at the fastest pace in more than 13 years in April.Consumer prices jumped 4.8 percent last month from a year earlier, accelerating from a 4.1 percent year-on-year gain in March. Most of last month's price gains were mainly driven by a hike in prices of petroleum products, according to Statistics Korea.On May 11, the price of diesel outstripped that of gas

May 15, 2022
Gov't to prioritize stabilization of rising product prices
Economy

Exchanges delisting Luna as valuation tumbles to zero

An electronic board shows the prices of Luna and other cryptocurrencies at a Bithumb customer service center in Seoul, Friday. YonhapBy Lee Min-hyungCryptocurrency exchanges here and abroad are on track to delist Luna, as the value of the sister token of scandal-tainted stablecoin Terra tumbled to near zero with no signs of a rebound. Gopax, one of Korea's major exchange operators, was the first to make the decision. Starting from 3 p.m. Monday, trading of Luna and Terra will not be possible through the firm's platform.Upbit and Bithumb, two of the nation's largest exchanges, followed suit, as part of efforts to minimize further losses of investors. Upbit will no longer support trading services for Luna on May 20, with Bithumb aiming for May 27.Last week, Binance, the world's largest crypto exchange, also suspended trading of Terra and Luna, but resumed their trading with a warning to investors.The decisions from the exchanges came in the wake of escalating fears over Luna's price fall. Luna was traded at as high as 144,000 won at one time in early April, according to data from CoinM

May 15, 2022By Lee Min-hyung
Exchanges delisting Luna as valuation tumbles to zero
Economy

Is Terra-Luna's collapse prelude to end of cryptocurrency?

Image captured from CoinMarketCap Cryptocurrency Exchange / Courtesy of CoinMarketCapMarket insiders view crypto ecosystem likely to survive despite stablecoin's plungeBy Anna J. ParkThe death spiral of Terra (UST) and Luna last week sent shockwaves through the entire cryptocurrency market, triggering sell-offs of other major coins as well. The UST-Luna ecosystem's collapse is being compared to the cryptocurrency industry's version of the fall of the Lehman Brothers, while some have even said it is a prelude to the end of the coin bubble era. However, market insiders and watchers say that such a drastic view is a stretch, saying the global cryptocurrency sector has evolved into a phase where substantial value is created, and it's not likely for the entire industry to crash. Yet, they generally agree that other stablecoin projects like tether and USDC will be hit by the event. What is Terra-Luna universe?Up until the end of last month, Terra (UST) was one of the world's most stable cryptocurrencies, pegged at a fixed value of $1. The coin's market cap once reached the sixth-largest am

May 13, 2022By Anna J. Park
Is Terra-Luna's collapse prelude to end of cryptocurrency?
Economy

Won-dollar rate set to climb above 1,300 won amid uncertainties: analysts

Won's sharp depreciation feared to accelerate capital outflowBy Yi Whan-wooThe Korean won is feared to keep losing value against the greenback and the won-dollar rate may rise above 1,300 won per dollar, according to analysts, Friday. They said persistently high inflation in the United States is likely to further drive faster-than-expected U.S. Federal Reserve tapering, thereby increasing global economic uncertainty, despite the Fed's less hawkish tone, which some expected in its latest rate-setting meeting, May 4.A rapidly weakening Chinese currency is increasing uncertainty as well, along with Beijing's growth slowdown and the ongoing war in Ukraine, which is causing investors to increasingly look for safe haven assets.While the Korean currency gained 4.4 won to close at 1,284.2 won against the dollar, Friday, it retreated to 1,288.6 won a day earlier ― the weakest level since July 14, 2009, when it ended at 1,293 won. President Yoon Suk-yeol sits between Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, left in the back, and Bank of Korea Governor Rhee Chang

May 13, 2022By Yi Whan-woo
Won-dollar rate set to climb above 1,300 won amid uncertainties: analysts
Economy

Senate confirms Powell for 2nd term as Fed fights inflation

Federal Reserve Chair Jerome Powell testifies before the Senate Banking Committee in Washington, the U.S., in this March 3, file photo. Reuters-YonhapThe Senate confirmed Jerome Powell for a second four-year term as Federal Reserve chair Thursday (local time), giving bipartisan backing to Powell's high-stakes efforts to curb the highest inflation in four decades.The 80-19 vote reflected broad support in Congress for the Fed's drive to combat surging prices through a series of sharp interest rate hikes that could extend well into next year. The Fed's goal is to slow borrowing and spending enough to ease inflationary pressures.Since February, when his first term expired, Powell had been leading the central bank in a temporary capacity.He faces a difficult and risky task in trying to quell inflation without weakening the economy so much as to cause a recession. The job market remains robust and has strengthened to a point that Powell has said is ``unsustainably hot`` and contributing to an overheating economy.Spiking prices across the economy have caused pain for millions of Americans w

May 13, 2022
Senate confirms Powell for 2nd term as Fed fights inflation
Economy

Gov't to announce measures to ease diesel price burden: finance minister

Finance Minister Choo Kyung-ho speaks during a government briefing on the extra budget proposal on Thursday. Yonhap Finance Minister Choo Kyung-ho said Thursday the government will soon announce measures to help ease the burden from a recent hike in diesel fuel prices.Choo made the remarks during an interview with public broadcasting channel KBS, after the retail price of diesel outstripped that of gasoline for the first time in 14 years."Those who make a living from the freight sector are facing difficulties as the diesel price has outrun that of gasoline," Choo said."We are contemplating ways to ease their burden and will soon roll out the measures," he said.The average diesel price at local gas stations stood at 1,947.60 won (US$1.53) per liter Wednesday, while that of gasoline came to 1,946.10 won.This is the first time since June 2008 that the cost of diesel has outrun the gasoline price. The all-time high was 1,947.75 won recorded on July 16, 2008. In South Ko

May 13, 2022
Gov't to announce measures to ease diesel price burden: finance minister
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