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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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Economy

Korean brokerages see overseas profits jump amid pandemic

The headquarters of various securities firms located on Yeouido, Seoul / gettyimagesbankBy Anna J. ParkLocal securities firms saw their combined net profits increase by more than 60 percent in 2021 from a year earlier, despite the COVID-19 pandemic ravaging the world, data showed Sunday.According to data released by the Financial Supervisory Service (FSS), 55 overseas subsidiaries run by 13 Korean brokerage companies logged annual net profits of $305.9 million (362.7 billion won) in 2021, which is a 62.3-percent jump from the previous year. By country, the brokerage companies raked in net profits from seven countries, including Hong Kong, U.S., India, Thailand, Brazil, Vietnam and Indonesia, and their net profits were mainly attributed to the increases of underwriting and commission fees as well as interest earnings. But the firms suffered losses from operations in other countries, such as China, Singapore, Myanmar and Cambodia, due to pandemic-led business limitations and increases in other maintenance expenses. “Despite the negative impacts from COVID-19, local brokerage comp

Apr 24, 2022By Anna J. Park
Korean brokerages see overseas profits jump amid pandemic
Economy

First K-pop ETF to be launched in US

K-pop group BTS are seen on stage during their “BTS Permission to Dance ― Seoul” concert at Jamsil Olympic Stadium in Seoul on March 10. Courtesy of Big Hit MusicBy Anna J. Park A global ETF that tracks Korea's pop entertainment industry is set to be launched by a U.S.-based investment company in the near future. The Exchange Traded Concepts (ETC), the U.S.-headquartered investment firm, has recently submitted its plan to launch the “KPOP ETF” with a ticker name of KPOP to the U.S. Securities and Exchange Commission (SEC). According to the ETC's prospectus submitted to the U.S. SEC on April 21, the passively-managed ETF fund plans to track the total return performance of the K-pop index designed by CT Investments to measure the performance of K-pop-related industries, ranging from music, movies, drama and entertainment to content companies. The fund invests at least 80 percent of its net assets into the securities of the companies included in the index. “To construct the index, companies are selected based on a combination of float-adjusted market capita

Apr 24, 2022By Anna J. Park
First K-pop ETF to be launched in US
Economy

8 insurers fined 1.76 bil. won for collusion

A Fair Trade Commission official speaks during a media briefing at the government complex in Sejong, April 22. YonhapKorea's antitrust regulator said Sunday it has decided to impose a combined fine of 1.76 billion won ($1.42 million) on eight insurance companies for colluding to fix bidding prices. KB Insurance, six other non-life insurers and a local insurance consultancy colluded for rental housing-related insurance bidding put forward by state housing developer Korea Land Housing (LH) in 2018, according to the Fair Trade Commission (FTC). They colluded to intentionally offer low bidding prices or drop out of the bidding in order to let No. 4 industry player KB Insurance win contracts from LH twice. Through the collusion, KB Insurance aimed to recoup 10 billion won in losses from a strong earthquake that struck the southeastern city of Pohang in 2017. Along with the fine, the FTC has decided to lodge a complaint with the prosecution against KB Insurance and an insurance consultancy, as well as three of their executives. (Yonhap)

Apr 24, 2022
8 insurers fined 1.76 bil. won for collusion
Economy

Over 2.2 trillion won sitting in dormant accounts

gettyimagesbankBy Lee Kyung-min At least 360,000 people have yet to retrieve a combined 2.2 trillion won ($1.7 billion) from their accounts that remain dormant, according to the Korea Inclusive Finance Agency.A bank account is considered dormant if there are no financial transactions for at least five years. The same is true for insurance savings accounts, if there are no financial transactions recorded for a period of three years after either the fund reaches maturity or the product subscription is canceled. The state-run financial agency said it has spent over 384 million won over the past three years to send about 960,000 written notifications to people about the money they might not know about or left there expecting income from interest. The number was 250,000 in 2020, followed by 350,000 last year and 360,000 this year. It costs 400 won to send one notification via postal service to account holders. “We send the notification letters to inform people that they have money in their accounts,” the agency said. Some might have forgotten. Others might leave it there think

Apr 23, 2022By Lee Kyung-min
Over 2.2 trillion won sitting in dormant accounts
Economy

Korean finance minister leaves IMFC meeting to protest against Russia

Finance Minister Hong Nam-ki answers questions from reporters on his business trip in Washington, D.C., Thursday (local time). Yonhap By Lee Min-hyungFinance Minister Hong Nam-ki left an International Monetary and Financial Committee (IMFC) meeting on Thursday ahead of a video address by his Russian counterpart, Anton Siluanov, in a show of protest against the country's invasion of Ukraine.“I voluntarily walked out of the hall to join the international movement regarding sanctions on Russia,” he told reporters in Washington, D.C.Finance ministers from 12 countries and leaders of four international organizations boycotted the address during the IMFC meeting.But Hong did not leave a meeting of G20 finance officials held on Wednesday when ranking officials from countries such as the United States, the United Kingdom, Canada and the European Union left the hall soon after the Russian finance minister started his speech.“A number of countries did not coordinate such acti

Apr 22, 2022By Lee Min-hyung
Korean finance minister leaves IMFC meeting to protest against Russia
Economy

Won-based export settlements decline for 4th year in 2021

gettyimagesbank The portion of Korean exports settled using the country's currency declined for the fourth straight year in 2021 due to sluggish shipments of chemicals and auto parts, central bank data showed Friday.The use of the won accounted for 2.4 percent of all export settlements last year, compared with 2.5 percent the previous year, according to the data from the Bank of Korea (BOK).This marked the fourth consecutive year of decline since 2017 when the portion hit 3 percent.Korea's exports remained robust last year, but the use of the Korean currency for export settlements fell as exports of chemicals and autos were tepid amid the pandemic, according to the BOK.The U.S. dollar was the dominant currency used to settle Korean exports last year, taking up 83.9 percent of overall export settlements, up from 83.6 percent in 2020.The rise was mainly attributable to brisk exports of chips and petrochemical products whose settlements are usually made with the dollar

Apr 22, 2022
Won-based export settlements decline for 4th year in 2021
Economy

New BOK chief vows to overhaul economic policy framework

Bank of Korea Governor Rhee Chang-yong makes a speech at his inauguration ceremony held in Seoul, Thursday. YonhapRhee warns of 'secular stagnation' amid population agingBy Lee Min-hyungBank of Korea (BOK) Governor Rhee Chang-yong took office Thursday, vowing to overhaul the country's economic policy framework by focusing on bolstering a market-driven economy.“We live in a period where it is difficult to predict whether our economy, which is heavily dependent on the external sector, can take the next leap forward by overcoming challenges in its transition to the new, post-pandemic normal, or whether it will spiral into 'secular stagnation' amid the ongoing trends of an aging population and lower productivity,” he said in his inaugural address.His inauguration came at a critical juncture where the role of the central bank is increasing amid persistently-low economic growth and rising inflationary pressure.To tackle widening external uncertainties, he pledged to take bold steps to preemptively deal with volatile financial circumstances here and abroad.“In order to mak

Apr 21, 2022By Lee Min-hyung
New BOK chief vows to overhaul economic policy framework
Economy

Moon formally appoints new central bank chief

President Moon Jae-in and new head of the Bank of Korea Rhee Chang-yong pose after Moon formally appointed Rhee as the central bank's new chief, April 21. Yonhap President Moon Jae-in formally appointed a former veteran International Monetary Fund official, Rhee Chang-yong, as new head of the Bank of Korea (BOK), Thursday, after the National Assembly adopted a report on his confirmation hearing. Rhee, former director of the Asia and Pacific Department at the IMF, was nominated last month to succeed former BOK Gov. Lee Ju-yeol, whose term ended March 31. During a National Assembly hearing, Rhee said the BOK will continue to tighten its monetary policy to tame inflation but indicated that the pace of policy tightening may be adjusted to prop up economic growth. Rhee took office later Thursday after an inauguration ceremony. (Yonhap)

Apr 21, 2022
Moon formally appoints new central bank chief
Economy

Korea may log another trade deficit in April amid high oil prices

gettyimagesbankKorea's imports grew at a faster pace than exports in the first 20 days of April amid high oil prices, data showed Thursday, raising the possibility that the country may post another trade deficit for April.Exports rose 16.9 percent on-year to $36.3 billion in the April 1-20 period, according to the data from the Korea Customs Service.Imports increased 25.5 percent on-year to $41.5 billion, resulting in a trade deficit of $5.2 billion in the cited period, the data showed.If the trend continues, the country may post a trade deficit for the second straight month in April due to surging energy costs caused by Russia's invasion of Ukraine.Korea's exports remained robust on the back of demand for chips and petroleum products. In March, exports rose 18.2 percent on-year to hit an all-time monthly high of $63.48 billion and extended their gains for the 17th straight month, according to the trade ministry.But soaring fuel prices pushed up the country's imports to a record high of $63.62 billion in March. This led the country to post a trade deficit of $140 million.Dubai crude,

Apr 21, 2022
Korea may log another trade deficit in April amid high oil prices
Economy

Interest rate, inflation weighing on Korean economy: S&P

Institute for Global Economics (IGE) Chairman Jun Kwang-woo, top left, speaks during a webinar held on Wednesday with three market analysts from S&P Global. Screenshot of the webinarBy Anna J. Park The Korean economy and the Asia-Pacific economy in general are facing risk factors from the “four i's” ― namely interest rate, inflation, invasion and infectious disease ― which put downward pressure on the region's economic growth forecasts for this year, according to analysts from S&P Global Wednesday.During a webinar hosted by Institute for Global Economics (IGE) that invited three market analysts from S&P Global, Eunice Tan, head of credit research of the Asia-Pacific region at the global ratings agency, said that Korea needs to pay particular attention to the possibility of reductions to its current account surplus as well as persistent inflationary rates.She said that as a net energy-importing country, Korea is expected to suffer from a decrease in its current account surplus this year, which attributed to the credit rating agency's lowering of the country's e

Apr 20, 2022By Anna J. Park
Interest rate, inflation weighing on Korean economy: S&P
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