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  • Economy

    Weakening won emerges as hurdle to Korea's US investment package

    Korea's weakening currency is emerging as a challenge to the country's planned $350 billion investment package in the United States, analysts said Thursday, as a senior finance ministry official prepares to travel to Washington for talks on foreign exchange market stability. Moon Ji-sung, deputy minister for international affairs at the Ministry of Finance and Economy, will meet senior U.S. Treasury officials in Washington on Friday (local time), according to government sources. Moon's trip is viewed as unusual, as senior officials overseeing foreign exchange policy rarely make separate visits to Washington outside regular consultation channels between the two countries' finance authorities. While the ministry declined to comment on the details of Moon's visit, market watchers expect the discussions to focus on ensuring that exchange rate volatility does not disrupt implementation of Korea's investment commitments in the U.S. The Korean won has remained under pressure in recent weeks, with the won-dollar exchange rate hovering around 1,500-level and trading near its weakest level since 2

    3 MIN READBy Lee Hyo-jin
    Weakening won emerges as hurdle to Korea's US investment package
  • Economy

    InterviewHong Kong's role as Korea-China business bridge grows, Chinese chamber chief says

    3 MIN READBy Lee Yeon-woo
    Hong Kong's role as Korea-China business bridge grows, Chinese chamber chief says
  • Economy

    Seoul shares close higher as AI woes ease amid Middle East uncertainties

    1 MIN READBy Yonhap
    Seoul shares close higher as AI woes ease amid Middle East uncertainties
  • Policy

    Korea's tax agency seeks transformation from tax collector to integrated revenue authority

    3 MIN READBy Jun Ji-hye
    Korea's tax agency seeks transformation from tax collector to integrated revenue authority
  • Economy

    Gov't calls on exporters to address FX volatility

    1 MIN READBy Yonhap
    Gov't calls on exporters to address FX volatility
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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

Banks' household loans down in April amid high borrowing costs, tough lending rules

A sales office of a commercial bank in Seoul / NewsisFive major banks' household loans shrank for the fourth straight month in April amid high borrowing costs and tough rules on lending, industry data showed Monday. Outstanding household loans extended by the banks in South Korea ― KB Kookmin, Shinhan, Hana, Woori and Nonghyup ― had come to 702.39 trillion won ($555.2 billion) as of the end of April, down 802 billion won from a month earlier, according to the data provided by the banks.The decline came as the Bank of Korea raised its policy rate by a quarter percentage point to 1.5 percent ― the fourth rate increase since August last year ― in April to tamp down inflation and keep a lid on household debt. The government has maintained a tight grip on lending amid worries fast-growing household debt could emerge as a potential risk factor for economic growth.Observers said people have also tended to delay their decisions to borrow money, as expectations have grown that the incoming new government might ease rules on borrowing when it takes office next week.Of the total, those banks' o

May 2, 2022
Banks' household loans down in April amid high borrowing costs, tough lending rules
Economy

Finance minister nominee warns of prolonged inflationary pressure

Choo Kyung-ho, nominee for deputy prime minister and minister of economy and finance, speaks during a National Assembly hearing in Yeouido, Seoul, Monday. Joint Press CorpsBy Yi Whan-wooChoo Kyung-ho, the nominee for deputy prime minister and minister of economy and finance, has warned that inflationary pressure may deepen after consumer prices rose 4.1 percent in March, which is the steepest rise in over 10 years. Speaking at a National Assembly hearing, Monday, Choo said while the soaring inflation is attributed to a spike in global oil prices, an oil tax cut expanded by the outgoing Moon Jae-in administration appears to provide no benefit to the public.“The upward trend in consumer prices that grew 4.1 percent is likely to intensify for the time being,” Choo said. “In that regard, stabilizing consumer prices should be prioritized in our economic policy and I will closely go over the related issues with experts if given the chance.”Referring to fuel tax cuts that have expanded to 30 percent from 20 percent during May 1 to July 31, Choo noted the effect &ldqu

May 2, 2022By Yi Whan-woo
Finance minister nominee warns of prolonged inflationary pressure
Economy

Online shopping hits second-highest in March

gettyimagesbank Online shopping in Korea rose to the second-highest level in March on the back of solid demand for food delivery and travel services amid the economic recovery, data showed Monday.The value of online shopping transactions stood at 17.2 trillion won ($13.6 billion) in March, up 11.1 percent from the previous year, according to the data from Statistics Korea.It marked the second-highest reading since the agency began to compile related data in 2001. Online shopping soared to a record high of 17.8 trillion won in December last year.Purchases made through smartphones, tablets and other mobile devices rose 17.2 percent year-on-year to 12.8 trillion won of the total value of online shopping.Online shopping gained traction as the prolonged COVID-19 pandemic intensified a non-contact shopping trend on the popularity of delivery apps and other mobile platforms.Online transactions of food delivery services rose 21.1 percent to 2.38 trillion won in March. Those

May 2, 2022
Online shopping hits second-highest in March
Economy

Utility rate hikes to deepen inflation concerns

A woman shops for vegetables at a traditional market in Seoul, April 7. Korea Times file Delayed utility rate hikes to take toll on incoming Yoon administration By Lee Kyung-min The continued rise in electricity and gas rates will add to inflationary pressure, already on a rapid upward trajectory over the past year due to soaring import prices and the recovery of the service industry, according to market watchers.Korea has raised its gas and electricity prices for May, with additional hikes in store in the coming months. The rush of increasing utility rates that have been delayed by the outgoing Moon Jae-in administration could lead to deteriorating living standards for many. The situation is unlikely to improve anytime soon given the spike in global commodity prices, including energy and agricultural produce, triggered by Russia's war in Ukraine. Rising inflation will not be easily tempered, as indicated by April's inflation expectations exceeding a nine-year high

May 2, 2022By Lee Kyung-min
Utility rate hikes to deepen inflation concerns
Economy

Korea trade deficit deepens in April, slowest export growth in 14 months

gettyimagesbankKorea's exports grew at their slowest pace in 14 months in April, with the trade deficit in goods deepening as a continued rise in energy and raw materials prices pushed up the cost of the country's imports.Exports in April grew 12.6 percent from a year earlier to $57.69 billion, trade ministry data showed Sunday, logging the slowest increase since February 2021 and missing a forecast of 14.5 percent growth in a Reuters' poll of analysts.The rate was also slower than the 18.2 percent rise in March.A breakdown by items showed exports of semiconductors, the country's top foreign exchange earner, jumped 15.8 percent, while petrochemical products rose 6.8 percent. Outbound shipments of oil and steel products jumped 68.8 percent and 21.1 percent, respectively.By destination, exports to China, Korea's biggest trading partner, decreased 3.4 percent, while those to the United States and the European Union increased 26.4 percent and 7.4 percent, respectively.The prices of imports, meanwhile, jumped 18.6 percent to $60.35 billion, with a combined $14.81 billion worth of crude oi

May 1, 2022
Korea trade deficit deepens in April, slowest export growth in 14 months
Economy

Financial watchdog urges foreign financial firms to manage risks preemptively

Financial Supervisory Service (FSS) Governor Jeong Eun-bo, fifth from the left, hosts a meeting with CEOs representing 13 global financial companies' operations in Korea, at the Millennium Seoul Hilton Hotel, Friday. Korea Times photo by Anna J. ParkKorea's FSS pledges to make financial regulations more predictable to enable fair competitionBy Anna J. Park Financial Supervisory Service (FSS) Governor Jeong Eun-bo said Friday that foreign financial companies operating here should fully prepare for potential internal and external risk factors amid the growing uncertainties in the global economy. He also said that the financial watchdog will put greater efforts into making regulations more predictable, in order to provide a level playing field for all market players.The comments came from this year's “FSS SPEAKS 2022,” the financial watchdog's annual forum hosted for foreign financial companies, under the banner of “Post Corona, Transformation and Financial Stability,” at the Millennium Hilton Seoul on Friday morning. Financial Supervisory Service (FSS) Governor

Apr 29, 2022By Anna J. Park
Financial watchdog urges foreign financial firms to manage risks preemptively
Economy

Cosmetics stocks rise with lifting of outdoor mask requirement

gettyimagesbankBy Anna J. ParkAs the government has decided to lift its face mask guidelines for outdoor use, cosmetic company shares went up in the stock market, Friday.The government announced Friday morning that the requirement to wear masks outdoors will be lifted on May 2. However, the mask requirement will be maintained for cases like rallies, performances or sports events where over 50 people are expected to gather ― both indoors and outdoors.According to the Korea Exchange (KRX), the stock price of JayJun Cosmetic increased to 1,390 won ($1.10), as it hit a daily upper limit increase of 29.91 percent. Various other local cosmetics companies saw their prices soaring on Friday too. The stock price of Organic Tea Cosmetics went up by 15.76 percent, that of HanKook Cosmetics by 14 percent, that of Tonymoly by 8.98 percent, that of Leaders Cosmetics by 8.08 percent and that of Skinnskin by 5.47 percent. The stock of Amorepacific, the largest market cap company in the domestic cosmetics industry scene, also rose by 1.69 percent on Friday, continuing its three-day winning streak. Th

Apr 29, 2022By Anna J. Park
Cosmetics stocks rise with lifting of outdoor mask requirement
Economy

Consumption, investment both fall in March amid recovery concerns

Stacks of containers are seen at a port in Korea's southeastern city of Busan, in this April 21 file photo. Yonhap Korea's industrial output rebounded in March after two straight months of decline, but consumption and facility investment lost ground in the latest sign that economic recovery momentum remains fragile, data showed Friday.Industrial production increased 1.5 percent from the previous month, compared with a 0.3 percent month-on-month drop in February, according to the data from Statistics Korea.Compared with a year earlier, industrial output rose 3.1 percent.Retail sales, a gauge of private spending, declined in March amid the fast spread of the Omicron variant of COVID-19. Retail sales fell 0.5 percent, after remaining flat in February.Facility investment decreased 2.9 percent in March, compared with a 5.6 percent decline in February.The statistics agency said industrial output turned to growth last month as recoveries in services and exports remained ro

Apr 29, 2022
Consumption, investment both fall in March amid recovery concerns
Economy

Robo-advisors attract investors amid bearish market

gettyimagesbank By Anna J. ParkWith an increased level of multi-layered uncertainty surrounding the global stock market, AI-based robo-advisors are attracting more investors, as their average performances have turned out to be way better than benchmark indices in the first quarter this year.According to data released by Koscom's Robo-Advisor (RA) Center, the number of customers who use the digital financial advisor algorithm has grown to 426,539 as of March this year, a 23 percent increase from a year ago.Local robo-advisors' entire size of asset under management (AUM) has also increased to 1.84 trillion won ($1.44 billion), as of March, which is a year-on-year increase from 1.65 trillion won. The key reason behind the fast growth of the robo-advisor industry in the country is its stable and effective performance against market risks. While the main benchmark KOSPI and tech-heavy Kosdaq each fell by 7.39 percent and 8.65 percent, respectively, during the first quart

Apr 29, 2022By Anna J. Park
Robo-advisors attract investors amid bearish market
Economy

Seoul shares bounce back on solid earnings; Korean won extends fall

An employee stands in front of monitors that show the closing price of KOSPI at a dealing room of Hana Bank's headquarters in central Seoul, Thursday. YonhapKorean stocks rebounded Thursday, as solid corporate earnings offset worries about the Fed's aggressive monetary tightening and economic uncertainties stemming from China's lockdowns and an energy crisis sparked by Russia. The Korean won extended losses against the U.S. dollar.The Korea Composite Stock Price Index (KOSPI) rose 28.43 points to close the session at 2,667.49. Trading volume was moderate at 885.1 billion shares worth 12.3 trillion won ($9.66 billion) with gainers outstripping decliners 491 to 366.Uncertainties persist over supply chains due to China's lengthy COVID-19 lockdowns of its cities and Russia's halt of gas exports to parts of Europe, but sound corporate earnings offset such concerns, Seo Sang-young, an analyst at Mirae Asset Securities Co., said."The overnight U.S. rally fueled by tech firms' sound earnings was also favorable to the Korean market. But for further advance, the weaker won needs to be stabiliz

Apr 28, 2022
Seoul shares bounce back on solid earnings; Korean won extends fall
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