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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

New gov't proposes W59.4 trillion extra budget to help small businesses

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, second from left, speaks during a joint press briefing with relevant ministers on the government's extra budget plan at the Government Complex in Seoul, Thursday. YonhapTargeted beneficiaries to receive at least W6 million in relief By Yi Whan-wooThe new government earmarked 36.4 trillion won ($28.3 billion) largely for compensating small business owners who suffered under pandemic restrictions, Thursday, as part of the nation's second extra budget plan of 59.4 trillion won this year.The plan was endorsed at a Cabinet meeting later on Thursday and will be submitted to the National Assembly on Friday.The second supplementary budget, following the first round of 16.9 trillion won allotted by the former Moon Jae-in administration early this year, is line with President Yoon Suk-yeol's top pledge of providing a relief package for the affected merchants on the country's path to economic recovery.“I ask the relevant ministers to do their best for the extra budget plan to be approved swiftly by the Assembly,&rdqu

May 12, 2022By Yi Whan-woo
New gov't proposes W59.4 trillion extra budget to help small businesses
Economy

Seoul shares hit 18-month low amid inflation woes; Korean won continues to fall

A currency trader passes by screens showing the KOSPI, center left, and the exchange rate for Korean won against the U.S. dollar, center right, in the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, May 12. Shares fell in Asia, Thursday, after the release of U.S. inflation data that was worse than expected sparked heavy selling of technology stocks on Wall Street. AP-Yonhap Seoul shares dropped by more than 1.5 percent Thursday extending their losing streak for an eighth day as technology stocks declined amid concerns over high inflation and a global economic slowdown. The Korean won also fell sharply against the U.S. dollar.The KOSPI fell 42.19 points, or 1.63 percent, to 2,550.08, its lowest finish since Nov. 19, 2020. Trading volume was moderate at 883.2 million shares worth 11.93 trillion won ($9.25 billion), with decliners outpacing gainers 794 to 117.The main index has continued to fall in the past eight sessions as investors expect t

May 12, 2022
Seoul shares hit 18-month low amid inflation woes; Korean won continues to fall
Economy

Stock uncertainty pushes more companies to delay IPOs

Dealers work at Hana Bank's office in Seoul, Thursday. YonhapBy Lee Min-hyungKorean companies are delaying their listing plans amid weakening investor sentiment prompted by aggressive tightening of global monetary policy.As the tumbling benchmark KOSPI keeps setting a new yearly low each day, a group of companies is on track to withdraw their initial public offering (IPO) plans.OneStore, a local app market operator, was scheduled to go public on the main bourse before the end of the month. But it decided recently to drop the plan, as its desired offering price did not match that of institutional bids.With chilly investor sentiment being felt here and abroad, this also came as a burden for the firm's listing. The KOSPI extended its losses once again Thursday, setting a new low with a drop of more than 1 percent from the previous day.Given the U.S. Federal Reserve has not yet entered what is considered very big rate hikes, stocks from emerging markets including Korea's are exposed to possible risks of additional falls throughout the end of 2022 when the Fed and the Bank of Korea will k

May 12, 2022By Lee Min-hyung
Stock uncertainty pushes more companies to delay IPOs
Economy

Money supply drops for 1st time in over 3 years in March

The Bank of Korea / YonhapKorea's money supply shrank for the first time in more than three years in March, as rising interest rates drove down the money flow into debt markets, central bank data showed Thursday.The country's M2, a key gauge of the money supply, stood at 3,658.5 trillion won ($2.85 trillion) on average in March, down 0.1 percent from a month earlier, according to the preliminary data from the Bank of Korea (BOK).This marked the first month-on-month decline in M2 since September 2018. M2 is a measure of the money supply that counts cash, demand deposits and other easily convertible financial instruments.The March decline was attributed to falls in money flows into trust and money market funds (MMFs) that mostly invest in the debt market.The bond market was rattled, as interest rates have been rising in line with the central bank's rate hikes aimed at reining in inflation. Bond prices and yields move in opposite directions. The money flow into trusts and MMFs shrank 10.5 trillion won and 8.9 trillion won, respectively, in March from a month earlier, the data showed. Ba

May 12, 2022
Money supply drops for 1st time in over 3 years in March
Economy

Net outflows of foreign money from stock markets continue in April

gettyimagesbankForeigners continued to pull out more money than they brought into Korea's stock markets for the third straight month in April as rising interest rates and uncertainty over the war in Ukraine weighed on investor sentiment, central bank data showed Thursday.Net foreign money outflows from the main KOSPI and secondary Kosdaq markets came to $3.78 billion in April, according to the data from the Bank of Korea (BOK).This was the third straight month that foreigners had pulled out more money than they parked in local equity markets.Korea's stock markets have been under downward pressure amid worries that the U.S. Federal Reserve will swiftly and aggressively raise its interest rate down the road to tame runaway inflation. Rate hikes tend to encourage investors to put their money in safer assets than stocks. Market woes have also been amplified by the grim outlook for the ongoing war in Ukraine, which has propelled oil and key commodity prices even higher and added to inflation woes. (Yonhap)

May 12, 2022
Net outflows of foreign money from stock markets continue in April
Economy

Nasdaq falls more than 3% as US inflation data gives little relief to investors

Traders work on the floor of the New York Stock Exchange (NYSE), May 11. Reuters-Yonhap U.S. stocks ended sharply lower Wednesday, with the Nasdaq dropping more than 3 percent and the Dow falling for a fifth straight day after U.S. inflation data did little to ease investors' worries over the outlook for interest rates and the economy.The benchmark SP 500 lost 1.7 percent and is now down 18 percent from its Jan. 3 record closing high.The Labor Department's monthly consumer price index (CPI) report suggested inflation may have peaked in April but is likely to stay strong enough to keep the Federal Reserve's foot on the brakes to cool demand.The CPI increased 0.3 percent last month, the smallest gain since last August, while economists polled by Reuters had forecast consumer prices gaining 0.2 percent in April."It did not dispel the notion that there's more to go in terms of reining in inflation," said Quincy Krosby, chief equity strategist at LPL Financial in Charlot

May 12, 2022
Nasdaq falls more than 3% as US inflation data gives little relief to investors
Economy

Mirae Asset Global Investments tapped as preferred bidder for IFC Seoul

IFC Seoul on Yeouido / Courtesy of Mirae Asset Global Investments By Anna J. ParkMirae Asset Global Investments was tapped as the preferred bidder for the purchase of the International Finance Center (IFC) Seoul, located in the Yeouido financial district. According to local investment banking sources, Toronto-headquartered Brookfield Asset Management ― the current owner of IFC Seoul ― notified the asset management subsidiary of Mirae Asset Financial Group on Wednesday that it had been selected as the preferred bidder. The two companies are slated to carry out the remaining procedures to close the deal by the end of the third quarter this year.The purchase deal amounts to slightly over 4 trillion won ($3.2 billion). As Brookfield Asset acquired IFC Seoul in 2016 from its previous owner, AIG Seoul, for around 2.5 trillion won, the asset manager's six-year ownership is expected to fetch returns of over 1.5 trillion won in profits. When the deal is finalized and complet

May 11, 2022By Anna J. Park
Mirae Asset Global Investments tapped as preferred bidder for IFC Seoul
Economy

Luna's fall unnerves Korean crypto investors

Seen above is a price chart of Luna. Screenshot from CoinMarketCapBy Lee Min-hyungKorean crypto investors' fear sentiment is reaching its peak after Terra's flagship stablecoin UST started dropping its intended $1 peg on Monday, in what is seen by many as a “prelude” to the ongoing collapse of its sister token Luna.Luna was traded at around 12,000 won ($9.40) as of Wednesday at 3:20 p.m., according to Korea's largest cryptocurrency exchange Upbit. This is a drop of around 50 percent from a day earlier. Up until last week, Luna was valued at more than 100,000 won. Luna has drawn global attention for the past year as one of the most influential cryptocurrencies here and abroad, with its market capitalization becoming the world's seventh-largest in March. Terra's anchor protocol ecosystem was behind Luna's rapid rise, as it has offered a high yield to investors.The recent de-pegging of UST, however, has tainted Luna's global fame. Many critics also raise issues over the credibility of UST as a stablecoin, further boosting Luna's sharp decline.Do Kwon, co-founder of Terraform

May 11, 2022By Lee Min-hyung
Luna's fall unnerves Korean crypto investors
Economy

New government puts top priority on curbing inflation

President Yoon Suk-yeol, left, speaks during his first meeting with his top secretaries at the new presidential office in Yongsan District in central Seoul, Wednesday. YonhapFinance ministry to launch emergency economic task force By Yi Whan-wooCurbing inflation was the top priority at the first meeting of President Yoon Suk-yeol with his top secretaries, Wednesday, where he stressed that soaring prices are the most daunting challenge faced by the country's economy. Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho also promised to prioritize the stabilization of consumer prices in managing macroeconomic risks.“Our economy faces an extremely challenging situation, with rising prices being the top challenge,” Yoon said at the meeting held at the new presidential office in Yongsan District in central Seoul. He added that a spike in energy prices and other signs of stagflation ― a toxic mixture of stagnant growth and rising inflation ― are “a red light for the competence of businesses” which he seeks to harness to achieve his market-driven e

May 11, 2022By Yi Whan-woo
New government puts top priority on curbing inflation
Economy

CREFIA chairman Kim Joo-hyun expected to lead top financial regulator

Credit Finance Association (CREFIA) Chairman Kim Joo-hyun, left, and Shin & Kim's senior advisor Hwang Young-key / Courtesy of CREFIA and Shin & KimBy Anna J. ParkKim Joo-hyun, the incumbent chairman of the Credit Finance Association of Korea (CREFIA), is forecast to be appointed as lead of the country's top financial regulator for the next three years. According to industry sources and local media reports, the presidential office is could announce the appointee for the Financial Services Commission (FSC) chair position as early as this week.The appointment comes as the former FSC chairman Koh Seung-beom resigned from the post earlier this month, prior to the beginning of the new Yoon Suk-yeol administration. Koh took office in August last year.Kim has been serving as the chairman of CREFIA since June 2019, and his three-year term is slated to be completed by June of this year. Graduating from Seoul National University and earning an MBA from Washington University in St. Louis, Missouri, U.S., Kim has built a decades-long career in the public financial sector. Since passing t

May 11, 2022By Anna J. Park
CREFIA chairman Kim Joo-hyun expected to lead top financial regulator
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