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  • Economy

    US Fed's hawkish hold strengthens case for BOK rate hike in July

    The U.S. Federal Reserve's hawkish signal has reinforced expectations that the Bank of Korea (BOK) will raise interest rates as early as next month, market observers said Thursday. With inflation concerns persisting in both countries, monetary officials in Washington and Seoul are increasingly focused on restoring price stability, potentially marking the start of a renewed tightening cycle in both economies. The Fed held its benchmark interest rate steady Wednesday (local time) in its first policy decision since Kevin Warsh became its chair. The U.S. central bank unanimously left the federal funds rate unchanged at 3.5 percent to 3.75 percent, marking its fourth consecutive pause. The latest dot plot showed that nine of the 19 Federal Open Market Committee participants expected interest rates to be higher than current levels for the rest of this year. Warsh did not submit a rate projection. The Fed's hawkish stance has added to pressure on the BOK to tighten its policy, as officials here seek to contain inflation and limit the impact of a wide interest rate gap with the United States. Mar

    2 MIN READBy Lee Hyo-jin
    US Fed's hawkish hold strengthens case for BOK rate hike in July
  • Others

    Gold's unusual price swings leave investors at crossroads

    3 MIN READBy Jun Ji-hye
    Gold's unusual price swings leave investors at crossroads
  • Economy

    Chip giants push KOSPI past 9,000, masking broader market weakness

    2 MIN READBy Lee Yeon-woo
    Chip giants push KOSPI past 9,000, masking broader market weakness
  • Economy

    Seoul launches state-run body to implement $350 bil. US investment pledge

    2 MIN READBy Yonhap
    Seoul launches state-run body to implement $350 bil. US investment pledge
  • Economy

    Korea rises 6 spots to 21st in world competitiveness rankings

    2 MIN READBy Lee Yeon-woo
    Korea rises 6 spots to 21st in world competitiveness rankings
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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

Financial regulator protests central bank's decision not to give contribution

Bank of Korea (BOK) Governor Lee Ju-yeol, left, and Financial Supervisory Service (FSS) Governor Jeong Eun-bo / Courtesy of BOK and FSS By Anna J. ParkAs the Bank of Korea (BOK) decides to cut off its annual payments of some 10 billion won ($8.3 million) to the Financial Supervisory Service (FSS) this year, the financial authority faces difficulty securing its resources. The BOK confirmed its budget plan for this year last December, which did not include its usual annual payment to the FSS. Since the FSS was launched in the late 1990s, the BOK had so far been partially financing the activities of the agency, according to a related domestic law that stipulates the BOK's obligation to support the FSS' activities to help it take firm root. The amount was set at 10 billion won per year in 2006. The central bank's rationale behind the suspension of the annual payments was that the FSS no longer needs the financing for its operation. Unlike the early days of the FSS, the

Feb 4, 2022By Anna J. Park
Financial regulator protests central bank's decision not to give contribution
Economy

Presidential candidates clash over growth policies

The presidential candidate pose before their first joint TV debate at broadcaster KBS' studio on Yeouido, Seoul, Thursday. From left are Sim Sang-jung of the minor Justice Party, Lee Jae-myung of the ruling Democratic Party of Korea, Yoon Suk-yeol of the main opposition People Power Party and Ahn Cheol-soo of the minor People's Party. Joint Press CorpsLee focuses on renewable energies; Yoon prioritizes data technology, AIBy Yi Whan-wooThe presidential candidates showed the differences in their strategies for economic growth in their first joint TV debate last Thursday, setting the scene for the lead-up to the March 9 election.During the two-hour televised debate, the two main parties' rival candidates ― Lee Jae-myung of the ruling Democratic Party of Korea (DPK) and Yoon Suk-yeol of the main opposition People Power Party (PPP) ― threw jabs at each other over what should be viewed as the next major growth engines to help achieve toughened climate goals and accelerate the digital transformation.The two minor party candidates ― Sim Sang-jung of the Justice Party and Ahn Cheol-soo of the

Feb 4, 2022By Yi Whan-woo
Presidential candidates clash over growth policies
  • No surefire winner in first TV debate
Economy

BOK under pressure for further rate hike

Bank of Korea Governor Lee Ju-yeol speaks during an online press conference at the central bank's headquarters in Seoul in this photo taken in January. Korea Times fileBy Yi Whan-wooThe Bank of Korea (BOK) is under pressing need to increase the key interest rate further at its next monetary policy meeting scheduled for Feb. 24, with inflation showing no signs of letting up. There are also reasons to maintain the rate at 1.25 percent as set in January, the third straight hike following two last year in August and November, with the presidential election coming on March 9 and BOK Governor Lee Ju-yeol's term expiring at the end of the same month.Consumer prices rose more than 3 percent for the fourth consecutive month in January, advancing 3.6 percent year-on-year, after gaining 3.2 percent in October, 3.8 percent in November and 3.7 percent in December, according to Statistics Korea, Friday. This is the first time in almost a decade the quarterly figure remained above 3 percent.The January gain is attributed mainly to high prices of oil products and dining out amid soaring energy price

Feb 4, 2022By Yi Whan-woo
BOK under pressure for further rate hike
Economy

Amount of currency discarded due to damage down 40% as non-cash payments increase

gettyimagesbank The amount of bills and coins that the central bank discarded due to damage declined nearly 40 percent as people increased the use of non-cash payments, data showed Friday.A total of 403.5 million damaged bills and coins were discarded last year, down 37.2 percent from 642.6 million tallied a year earlier, according to the data from the Bank of Korea (BOK).The decline is attributed to the increased use of non-cash payments, including credit cards and mobile payments, amid the prolonged pandemic that caused people to refrain from going out and using hard currency.The central bank destroyed 344.2 million bills last year, with 1,000 won ($0.83) and 10,000 won bills accounting for more than 90 percent.The face value of the discarded money last year came to 2.04 trillion won, the data showed. Of that, bills were worth 2.03 trillion won, with coins valued at 5.73 billion won.The BOK did not disclose how much it spent to replace the discarded bills and coin

Feb 4, 2022
Amount of currency discarded due to damage down 40% as non-cash payments increase
Economy

Inflation growth hits over 3% for fourth straight month in January

gettyimagesbank Korea's consumer prices rose more than 3 percent for the fourth consecutive month in January due mainly to high prices of oil products and dining out amid soaring energy prices and a global supply chain crisis, data showed Friday.Consumer prices advanced 3.6 percent year-on-year last month, compared with a 3.7 percent gain in December, according to the data compiled by Statistics Korea.Inflation has increased more than 3 percent every month since October last year, marking the first time in almost a decade that the figure remained over 3 percent for four months in a row. It also grew more than the central bank's midterm target of 2 percent for the 10th straight month in January.Core inflation, which excludes volatile food and oil prices, rose 2.6 percent year-on-year last month, the largest figure since December 2015, according to the data.The statistics agency attributed the growth to rising oil prices and high prices of personal services and agricu

Feb 4, 2022
Inflation growth hits over 3% for fourth straight month in January
Economy

BOK board members say further rate hikes would not hurt economic recovery: minutes

Bank of Korea Gov. Lee Ju-yeol bangs the gavel to open a Monetary Policy Committee meeting at the central bank in Seoul on Jan. 14, in this photo provided by the BOK. YonhapMembers of the central bank's rate-setting board said further rate hikes would not hamstring economic recovery, when they decided to increase borrowing costs in January, minutes from the latest policy meeting showed Thursday.They also called for normalizing the loose monetary policy but noted that the process should be carried out by closely monitoring situations related to the pandemic, growth and inflation trends, according to the minutes from the monetary policy board meeting held on Jan. 14. In the first rate-setting meeting of this year, the Bank of Korea raised the key interest rate by a quarter percentage point to 1.25 percent. It was the third rate increase since August, which brought the policy rate back to pre-pandemic levels.The BOK has called for the need to "normalize" interest rates kept low to keep the pandemic-hit economy going, citing growing concerns over inflation and household debt."The current

Feb 3, 2022
BOK board members say further rate hikes would not hurt economic recovery: minutes
Economy

Financially vulnerable people losing last resort to get loans

The logos of major credit card issuers are seen on the entrance of a restaurant in Seoul in this file photo. Korea Times fileBy Yi Whan-wooDuring the second half of 2021, a local newspaper warned in an editorial of the serious nature of the surging number of pandemic-hit small business owners scrambling to borrow from private lenders after they were denied by banks and institutional lenders.That situation, however, was perhaps more favorable than what the cash-strapped borrowers now face, amid toughened conditions for taking out loans from lenders of last resort in the wake of the latest benchmark interest rate hike in late January.The rate hike set off a chain of events, prompting credit card firms, a popular destination among non-banks by low-credit customers to get a quick cash loan, to consider raising their annual interest rates above 15 percent on average in the coming months.Currently, credit card issuers ― Lotte, Samsung, Shinhan, Woori, Hana, Hyundai, KB Kookmin and NH NongHyup ― set their respective interest rates in the range between 12.1 percent and 14.94 percent, accordi

Feb 3, 2022By Yi Whan-woo
Financially vulnerable people losing last resort to get loans
Economy

Record number of IPOs scheduled for 2022 to pressure stock markets

Officials from LG Energy Solution and the Korea Exchange celebrate the listing of the battery maker on the benchmark KOSPI, at its office in Seoul on Jan. 27. YonhapBy Lee Min-hyungKorea's stock markets will face downward pressure, as a series of mega-sized initial public offerings (IPO) scheduled for this year is expected to weaken the growth momentum of existing large-cap stocks and widen their price volatility, analysts said Thursday.The outlook comes at a time when the local stock market is set to attract a record amount of capital worth around 25 trillion won ($20.73 billion) through the IPOs of a group of companies, including Hyundai Oilbank, Kyobo Life Insurance and SSG.com.LG Energy Solution, one of the most-sought-after tech stocks this year, was listed on the benchmark KOSPI in January, raising 12.8 trillion won via its much-anticipated IPO. The company became the nation's second-most-valuable company shortly after going public.Even if the main bourse will continue attracting attention from investors with the planned IPOs, market analysts said this will not help rev up the

Feb 3, 2022By Lee Min-hyung
Record number of IPOs scheduled for 2022 to pressure stock markets
Economy

Seoul stocks make strong advance after holiday

A currency trader watches his mobile phone in the foreign exchange dealing room at KEB Hana Bank headquarters in Seoul, Feb. 3. Korean stocks advanced for a second straight session Thursday after the three-day national holiday, tracking overnight gains on Wall Street that stemmed from robust earnings reports. The Korean won fell against the U.S. dollar. AP-Yonhap Korean stocks advanced for a second straight session Thursday after the three-day national holiday, tracking overnight gains on Wall Street that stemmed from robust earnings reports. The Korean won fell against the U.S. dollar.The benchmark KOSPI rose 44.48 points, or 1.67 percent, to close at 2,707.82.Trading volume was moderate at about 429 million shares worth 12.3 trillion won ($10.2 billion), with gainers outnumbering losers 811 to 90.Institutional and foreign investors net bought a respective 51 billion won and 85 billion won, while retail investors offloaded 136 billion won.Shares got off to a bullis

Feb 3, 2022
Seoul stocks make strong advance after holiday
Economy

Working age population predicted to fall by 3.2 million in 2020-2030: report

gettyimagesbank Korea is predicted to see its working age population shrink by a whopping 3.2 million during the 2020 to 2030 period amid the country's graying demographics, a government labor report showed Thursday. The estimate for people aged 15 to 64 would represent a turnaround from a growth of 1.17 million between 2010 and 2020 and 2.66 million during the previous decade, the labor ministry said in a report illustrating the seriousness of the country's low birthrate and fast-aging population.People aged 15 and over grew by 4.63 million during the 2000 to 2010 period and 3.96 million during the following decade, but the growth is predicted to dramatically slow to 1.34 million during the 10-year period ending in 2030, the report showed. The proportion of young people aged 15-29 is also estimated to drop to 14.7 percent in 2030, compared with 19.9 percent in 2020 and 23.8 percent in 2010, according to the report. The percentage of people aged 50 and over, meanwhi

Feb 3, 2022
Working age population predicted to fall by 3.2 million in 2020-2030: report
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