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  • Economy

    Seoul stocks surge as US-Iran breakthrough boosts risk appetite

    Korean stocks surged Monday after the United States and Iran reached a preliminary agreement over the weekend that includes the reopening of the Strait of Hormuz, removing one of the biggest sources of uncertainty that had weighed on global markets for more than three months. The agreement effectively brings an end to the 106-day conflict that began on Feb. 28, with a formal signing ceremony scheduled for Friday in Switzerland. “The Deal with the Islamic Republic of Iran is now complete,” U.S. President Donald Trump wrote on Truth Social before Asian markets opened. “I hereby fully authorize the toll free opening of the Strait of Hormuz ... Ships of the World, start your engines. Let the oil flow!” On the news, international crude prices fell back toward the $80 range as fears of supply disruptions eased. Brent crude, the global benchmark, and U.S. West Texas Intermediate crude both dropped over 4 percent to $83.53 and $80.58 per barrel, respectively. While still well above pre-Iran war levels, prices have retreated sharply from the peaks above $110 reached during the height of t

    3 MIN READBy Park Han-sol
    Seoul stocks surge as US-Iran breakthrough boosts risk appetite
  • Cryptocurrency

    EXPLAINER Institutions jockey for position in Korea's crypto market

    3 MIN READBy Lee Yeon-woo
    [EXPLAINER] Institutions jockey for position in Korea's crypto market
  • Policy

    Benchmark rate for banks' mortgage loans up for 2nd month in May

    1 MIN READBy Yonhap
    Benchmark rate for banks' mortgage loans up for 2nd month in May
  • Economy

    US-Iran deal offers relief to Korean economy, but lower energy prices may take time

    2 MIN READBy Yonhap
    US-Iran deal offers relief to Korean economy, but lower energy prices may take time
  • Policy

    Labor groups demand minimum wage of $7.90 in 16.3% increase

    1 MIN READBy Yonhap
    Labor groups demand minimum wage of $7.90 in 16.3% increase
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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

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
Economy

Government to consider extending fuel tax cuts

A sign shows gas prices at a filling station in Seoul, in this photo taken Feb. 13 shows. Yonhap The government plans to consider extending fuel tax cuts as the country's inflationary pressure is growing amid surging energy costs, a senior official said Friday.The administration cut fuel taxes by a record 20 percent Nov. 12 in a bid to tame inflationary pressure. The measure will be in effect until April 30."Inflation is expected to be tough as well in February as demand-pull price pressure remains high, and energy and raw material prices have continued to rise," First Vice Finance Minister Lee Eog-weon said at a government meeting on inflation.In January, consumer prices rose 3.6 percent from a year ago, compared with a 3.7 percent year-on-year gain in December last year, as inflation grew more than 3 percent for the fourth straight month. The Bank of Korea aims to keep annual inflation at 2 percent over the medium term.Tensions between Russia and the U.S. over Ukr

Feb 18, 2022
Government to consider extending fuel tax cuts
Economy

Raging Omicron feared to hamper private spending recovery: finance ministry

gettyimagesbank Korea's economy is on a recovery path on the back of robust exports, but the fast spread of the Omicron variant of COVID-19 is feared to hurt any rebound in private spending, the finance ministry said Friday.External economic uncertainties also heightened as oil prices have surged and volatility in the financial market has increased amid geopolitical risks between Russia and Ukraine, the ministry said in its Green Book, a monthly economic assessment report."Korea's exports have extended their robust growth and the number of employed people sharply rose. But the spread of the Omicron variant could (negatively) affect domestic demand," the report said.Korea's daily virus cases surged to 100,000 for the first time Thursday amid concerns that the current wave has yet to reach its peak.Despite the uptick in virus infections, the government decided to partly relax tough virus curbs to support small businesses hit hard by the pandemic.Earlier in the day, th

Feb 18, 2022
Raging Omicron feared to hamper private spending recovery: finance ministry
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