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  • Economy

    Mirae Asset Securities fails to secure SpaceX IPO shares, frustrating Korean investors

    Korean investors were shut out of SpaceX's record-breaking initial public offering (IPO) after domestic underwriters, including Mirae Asset Securities, failed to receive any shares in the final allocation process, according to industry officials Sunday. Shares in the Elon Musk-led aerospace and satellite company surged more than 19 percent from their IPO price in their Nasdaq debut on Friday, closing at $161.11. The gain gave SpaceX a market value of $2.1 trillion and made Musk the world's first trillionaire on paper. For domestic investors, securing shares through the IPO would have provided a chance to buy the stock at its $135 offering price before its sharp first-day rally. Instead, they were left empty-handed. SpaceX had initially earmarked 2.31 million shares for Mirae Asset Securities out of the 555.6 million common shares sold in the offering. But Goldman Sachs, the lead underwriter, ultimately allocated no saleable shares to any Korean members of the underwriting syndicate. Market participants attributed the move to stronger-than-expected demand from institutional investors, pro

    2 MIN READBy Park Han-sol
    Mirae Asset Securities fails to secure SpaceX IPO shares, frustrating Korean investors
  • Economy

    Korea, Saudi Arabia sign agreement on crude oil, gas cooperation

    1 MIN READBy Yonhap
    Korea, Saudi Arabia sign agreement on crude oil, gas cooperation
  • Economy

    Korea's ICT exports for May hit all-time high amid AI chip demand: data

    1 MIN READBy Yonhap
    Korea's ICT exports for May hit all-time high amid AI chip demand: data
  • Economy

    Fraudulent ChatGPT Pro charges spark alarm over unauthorized use of stolen card data

    2 MIN READBy Lee Hyo-jin
    Fraudulent ChatGPT Pro charges spark alarm over unauthorized use of stolen card data
  • Others

    Foreign investors return to KOSPI buying, powering rally above 8,000

    3 MIN READBy Jun Ji-hye
    Foreign investors return to KOSPI buying, powering rally above 8,000
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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

Can Korean won become key currency?

From left, Lee Jae-myung of the ruling Democratic Party of Korea, Ahn Cheol-soo of the People's Party, Sim Sang-jung of the Justice Party and Yoon Suk-yeol of the main opposition People Power Party. YonhapLee's remarks spark debate among politicians, netizensBy Anna J. ParkThe very first TV presidential debate hosted by the National Election Commission sparked controversy over whether the Korean won could become a key currency, with some criticizing the idea as unrealistic and even ignorant, while others said it reflects Korea's developed economic status. In the much-spotlighted TV debate on Monday, the four presidential candidates continued to bicker over various economic and monetary policies. One of the most controversial remarks during the debate, which heated up online communities and social media, was ruling Democratic Party of Korea candidate Lee Jae-myung's comment that the Korean won could become a key currency.A key currency refers to a currency that is stable and provides the foundation for exchange rates in international transactions, thereby facilitating the setting of o

Feb 22, 2022By Anna J. Park
Can Korean won become key currency?
Economy

Cryptocurrencies fail as substitute for gold

By Lee Min-hyungMajor cryptocurrency prices are plunging amid the escalating geopolitical risk of an armed conflict between Russia and Ukraine. Cryptocurrencies ― such as Bitcoin and Ethereum ― had once been considered a possible substitute for gold back in 2020 when their valuation started surging. Their valuation has since fluctuated from time to time, but the two representative cryptocurrencies continued gaining strong confidence from investors as the safest digital assets.But any gains have come to an end for the time being, as they are extending losses due to investors' preferences for conventional safe assets ― such as gold and the dollar ― at a time when geopolitical risks are high and the timeline for the U.S. Fed's planned rate hike is drawing closer.The price of Bitcoin dropped by around 15 percent on Tuesday from a week earlier. Bitcoin is traded at around 45 million won ($37,641). This figure amounts to a drop of more than 40 percent after its price set a new record high of 82 million won in November.But the price of gold has been rapidly rising during the same period. Go

Feb 22, 2022By Lee Min-hyung
Cryptocurrencies fail as substitute for gold
Economy

Household debt hits fresh high in Q4, but growth slows

gettyimagesbankKorea's household debt reached a fresh high in the fourth quarter of last year, but it grew at a slower pace from the three months earlier amid tightened lending rules, central bank data showed Tuesday.Household credit came to 1,862.1 trillion won ($1.56 trillion) as of end-December, up 1 percent, or 19.1 trillion won, from three months earlier, according to the data from the Bank of Korea (BOK).The gain slowed from a 1.9 percent on-quarter increase in the third quarter.Household credit refers to credit purchases and loans for households extended by financial institutions.The slower on-quarter growth came as financial authorities tightened rules on lending as part of efforts to keep a lid on rising household debt, which is frequently cited as a major drag on the country's economic growth.Household lending extended by banks and other financial institutions came to 1,755.8 trillion won in the fourth quarter, up 0.8 percent, or 13.4 trillion won, from three months earlier.The growth was also smaller than an increase of 34.7 trillion won reported in the third quarter, acco

Feb 22, 2022
Household debt hits fresh high in Q4, but growth slows
Economy

Equity capital market loses steam due to uncertainties

gettyimagesbankBy Anna J. Park The country's Equity Capital Market (ECM) seems to be losing steam this year amid continued tensions between Russia and Ukraine on top of already bearish market sentiment, due to tightening liquidity and rising interest rates. Market experts view that the profits generated from the ECM are likely to be polarized this year, while the total amount of earnings is forecast to shrink from previous years, when the stock market sizzled following the pandemic crash in early 2020. The market mainly involves companies' raising equity capital through IPOs and private placements as well as seasoned equity offerings.LG Energy Solution (LGES) heated up the IPO market earlier this year. But its prospects are not as bright as they used to be, since a bulk of institutional investors' money is tied to the battery maker due to lock-up commitments. As a result, some experts believe that the peak time for this year's IPOs has already passed with LGES' public offering. Actually, venture capital firm Stonebridge Ventures' recent IPO move was met with apathetic sentiment from

Feb 21, 2022By Anna J. Park
Equity capital market loses steam due to uncertainties
Economy

Major state firms see debts jump over W40 tril. under Moon administration

Korea Electric Power Corp. (KEPCO) is one of the debt-ridden state-companies that was rated “fair” despite their money-losing business operations. Korea Times fileBy Yi Whan-wooThe nation's state-run companies have seen their collective debts rise by more than 40 trillion won ($33.5 billion) during the Moon Jae-in administration, dealing a blow to their financial soundness and business capabilities, recent data shows.According to the government's open data site, All Public Information in One (ALIO), the combined debt shouldered by 10 major public firms between the end of 2017 and the first half of 2021 increased by 40.5 trillion won to 392.2 trillion won. That boils down to an average monthly increase of 964.6 billion won.The government's debt under the Moon administration more than doubled compared to the term of the previous president after rising at the fastest pace of 400 trillion won over the past five years. Industry sources said that the snowballing debt is the direct result of the administration's “self-contradictory” policies in its pursuit of cleanin

Feb 21, 2022By Yi Whan-woo
Major state firms see debts jump over W40 tril. under Moon administration
Economy

Financial experts rally behind main opposition candidate Yoon

Former financial industry leaders declare their support for the main opposition presidential candidate, Yoon Suk-yeol, at the headquarters of the People Power Party (PPP) located on Yeouido, Seoul, Sunday. YonhapBy Anna J. ParkA number of former financial industry leaders have declared their official support for main opposition People Power Party (PPP) candidate Yoon Suk-yeol in the upcoming presidential election. They criticize the incumbent Moon administration for having “impaired the country's financial industry.” A total of 110 former financial industry leaders, including former Korea Financial Investment Association (KOFIA) chairman Hwang Young-ki, announced their official support for Yoon at the headquarters of the PPP located on Yeouido, Seoul, on Sunday morning. Hwang also served as chairman at both Woori Financial Group as well as KB Financial Group during the 2000s. Former Woori Bank CEO Lee Jong-hwi, former KB Kookmin Bank CEO Min Byung-duk and former NH Nonghyup Bank CEO Kim Ju-ha also joined the move to raise their voices of support for conservative party can

Feb 21, 2022By Anna J. Park
Financial experts rally behind main opposition candidate Yoon
Economy

Foreign currency deposits dip for 2nd month in January

gettyimagesbank Foreign currency deposits at banks in South Korea dropped for the second straight month in January due mainly to decreased corporate deposits, central bank data showed Monday.Residents' outstanding foreign currency-denominated deposits reached $93.17 billion as of the end of January, down $4.1 billion from the previous month, according to the data from the Bank of Korea (BOK).This is the second consecutive month-on-month decline. In December, the country's foreign currency deposits decreased by $1.6 billion from a month earlier.Residents include local citizens, foreigners staying here for more than six months and foreign companies. The data excludes interbank foreign currency deposits.January's decline came as companies withdrew their FX deposits to secure funds for investment and settle import transactions, the central bank said.Corporate deposits came to $75.64 billion as of the end of January, down $2.86 billion from the previous month, with indiv

Feb 21, 2022
Foreign currency deposits dip for 2nd month in January
Economy

Hopes for reopening lifting Korean leisure, travel stocks

gettyimagesbankBy Lee Min-hyungGrowing hopes for global borders reopening are lifting Korean leisure and travel stocks, with major exchange-traded funds (ETF) related to the industry reporting double-digit growth this month alone.According to data from the Korea Exchange, the TIGER Tour Leisure ETF reported a growth of 15.4 percent this month, the second-highest among local ETFs. The fund product, operated by Mirae Asset Global Investments, invests in major leisure and travel stocks such as Asiana Airlines, Hotel Shilla and Lotte Tour Development.Its jump was driven by a robust rally of each share. Shares of Asiana Airlines hit this year's low point in late January, but then went on a robust rally for the past few weeks on expectations of international travel resuming despite the pandemic. The stock price of the airline failed to defend the 17,000 won mark about three weeks ago, but has since jumped by more than 20 percent as of last Friday. Hotel Shilla and the Lotte subsidiary also reported double-digit growth during the same period.The stock growth is outstanding, in that the benc

Feb 20, 2022By Lee Min-hyung
Hopes for reopening lifting Korean leisure, travel stocks
Economy

Bank of Korea set to freeze key rate ahead of presidential election

Bank of Korea Governor Lee Ju-yeol speaks during the G20 Finance Ministers and Central Bank Governors meeting held online, Friday. Courtesy of Bank of KoreaBy Lee Min-hyungThe Bank of Korea (BOK) is set to freeze its key rate during an upcoming rate-setting meeting, as household debt has risen sharply despite growing inflationary pressure, analysts said Sunday.The Korean central bank has already increased the benchmark rate three times since August 2021, as part of a preemptive move to bring rising prices and financial imbalance under control. Nonetheless, market experts argue that the BOK would take a wait-and-see approach this time ahead of the presidential election and the U.S. Fed's planned rate hike in March.The aggressive rate hikes by the BOK have kept coming, thereby increasing the growing financial burden to households. If the central bank does so once more at such a rapid pace, a growing number of the self-employed are also feared to struggle tremendously, data shows.According to data from the Korea Economic Research Institute, each household will have to pay 876,000 won ($

Feb 20, 2022By Lee Min-hyung
Bank of Korea set to freeze key rate ahead of presidential election
Economy

Ruling party passes $11.6 billion extra budget bill

gettyimagesbank The ruling Democratic Party of Korea (DPK) unilaterally passed a 14 trillion-won ($11.6 billion) extra budget bill, aimed at supporting small businesses hit by COVID-19 curbs, through a National Assembly budget committee early Saturday morning.The passage drew an angry reaction from the main opposition People's Power Party (PPP), which has called on the government to draft a far bigger spending plan. DPK members of the National Assembly Special Committee on Budget and Accounts occupied the committee's meeting room Friday afternoon. They convened a session at 2:08 a.m. Saturday and passed the government-proposed budget bill four minutes later. The party controls 30 of the 50 seats on the special committee. The DPK plans to convene a plenary session of the Assembly to pass the measure as early as next Monday, while at the same time seeking to increase the spending package to more than 16 trillion won.On Friday, President Moon Jae-in called for swift ap

Feb 19, 2022
Ruling party passes $11.6 billion extra budget bill
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