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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

Korean bio stocks plunging as large-cap players mired in unceasing scandals

Retail investors of SillaJen protest in front of the Korea Exchange in Seoul on Jan. 18, calling for the resumption of its stock trading. YonhapBy Lee Min-hyungKorea's biotech stocks are facing widening uncertainty amid weakening investor sentiment due to major large-cap players' involvement in a series of scandals.According to data from the Korea Exchange, the profitability of KODEX bio exchange-traded funds (ETF) dropped by 16.49 percent on Jan. 20, compared to the beginning of the year. This was attributable to the stock fall of the scandal-tainted bio and healthcare companies ― such as Osstem Implant, SillaJen and Celltrion.Osstem shares have been suspended from trading since the start of this year, after one of its employees allegedly embezzled 220 billion won. It remains to be seen whether the exchange operator will resume the trading of its shares, but even if trading is resumed, Osstem's corporate value will likely plummet after losing trust from investors due to its poor internal supervision system.Last week, the Korea Exchange also decided to delist drugmaker SillaJen from

Jan 23, 2022By Lee Min-hyung
Korean bio stocks plunging as large-cap players mired in unceasing scandals
Economy

Bitcoin fall unnerves investors in Korean stock market

Seen above is the price fall of Bitcoin at an office of Bithumb in Seoul, Friday. YonhapGrowing fears of Fed's tightening, rate hikes to boost selloff of risky assetsBy Lee Min-hyungThe abrupt meltdown of major cryptocurrencies ― such as Bitcoin and Ethereum ― escalates uncertainties on the Korean stock market, as investors are feared to engage in a mass sell-off of risky assets amid stronger preference for safer assets.Bitcoin extended losses over the weekend, plunging to around 43 million won ($36,000) as of 2:40 p.m. Sunday, according to data from the local crypto exchange operator Upbit. This is a drop of around 50 percent, compared to its previous high of 82.7 million won in early November. The price of Ethereum, the world's second-largest cryptocurrency by market capitalization, also dropped to 3 million won from a previous high of 5.9 million won over the same period.Of particular concern is that the benchmark KOSPI is expected to fall victim to the crypto downfall at a time when the U.S. Federal Reserve is delivering ever-stronger signals for its initiation of monetary tighte

Jan 23, 2022By Lee Min-hyung
Bitcoin fall unnerves investors in Korean stock market
  • Bitcoin falls to as low as $34,000
Economy

Bitcoin falls to as low as $34,000

Representation of cryptocurrency bitcoin is seen in this Nov. 29, 2021, illustration. Reuters-Yonhap Bitcoin dropped in value again Saturday, down around 4 percent for the day and hovering at the $35,000 level.The world's biggest and best-known cryptocurrency, is now about half its $69,000 peak reached last November; and was valued at $35,049, after falling as low as $34,000, following a steep drop Friday.The currency has seen wild price swings as risk appetite has fallen on inflation fears and the anticipation of a more aggressive pace of interest rate hikes from the U.S. Federal Reserve.Other risk assets have fallen with stocks falling Friday ― the SP 500 and Nasdaq recorded their biggest weekly percentage drops since the start of the pandemic in March 2020.In a research note Friday, Edward Moya, senior market analyst for the Americas at OANDA, said bitcoin was falling as "crypto traders de-risk portfolios following the bloodbath in stocks," and in advance of next

Jan 23, 2022
Bitcoin falls to as low as $34,000
  • Bitcoin fall unnerves investors in Korean stock market
Economy

External risks weigh on Korea's economic recovery

Electronic signboards in a Hana Bank dealing room in Seoul show intra-day trading of the benchmark KOSPI, the won-dollar exchange rate and the tech-heavy KOSDAQ, Friday. YonhapUS, China factors destabilize markets, dampen Korea's growth momentumBy Yi Whan-wooThe Korean economy is off to a rocky start in 2022.Asia's fourth-largest economy faces multiple downside risks ― including China's economic slowdown and U.S. inflation ― which are rattling financial markets and fueling concerns over a full-fledged recovery.The risks are mainly associated with tightening U.S. monetary policy and a conspicuous slowdown in China's economic growth. These factors, along with international oil prices surging to a seven-year high, are viewed as the cause of the instability in the stock market, exchange rate and other economic barometers. For instance, the benchmark KOSPI has been taking a beating so far this year, falling below the psychologically significant 3,000-point mark. The won-dollar exchange rate has mostly been hovering around the worrying threshold of 1,200.Consumer prices are forecast to tre

Jan 21, 2022By Yi Whan-woo
External risks weigh on Korea's economic recovery
Economy

Gov't to increase beef, pork supplies ahead of Lunar New Year holiday to tame inflation

gettyimagesbank The government plans to increase the supply of beef and pork by around 50 percent year-on-year ahead of the Lunar New Year holiday in an effort to help stabilize consumer prices, a senior official said Friday.Vice First Finance Minister Lee Eog-weon said the administration will increase the supply of beef and pork, key foodstuffs needed to prepare holiday meals, to 18,700 tons and 67,200 tons, respectively.The government began providing a record amount of 204,000 tons of holiday-related foodstuffs, such as napa cabbages, apples and eggs, Jan. 10 in an effort to help curb inflationary pressure.The country's consumer prices grew at their fastest pace in a decade last year due to surging energy costs and high prices for farm products.Inflation grew 2.5 percent in 2021, accelerating from a 0.5 percent gain the previous year.The country's consumer inflation grew more than 3 percent for the third month in a row in December. The Bank of Korea (BOK) aims to

Jan 21, 2022
Gov't to increase beef, pork supplies ahead of Lunar New Year holiday to tame inflation
Economy

Korea proposes W14 tril. extra budget to support pandemic-hit merchants

Prime Minister Kim Boo-kyum, right, speaks during an extraordinary Cabinet meeting at the Government Complex in Seoul, Jan. 21, to endorse a supplementary budget plan aimed at helping small businesses hit by the COVID-19 pandemic. Next to him is Finance Minister Hong Nam-ki. Yonhap The government proposed an additional extra budget of 14 trillion won ($11.8 billion) Friday to support small merchants hit hard by the COVID-19 pandemic amid extended virus curbs.This year's first extra budget will be financed with a bond sale of 11.3 trillion won, according to the finance ministry, and marks the seventh round of supplementary spending aimed at coping with the fallout of the pandemic.The government plans to submit the extra budget proposal to the National Assembly for approval Monday.The ruling Democratic Party of Korea ramped up the call for another extra budget to aid affected merchants despite criticism that it was vote-buying with cash handouts ahead of the March pre

Jan 21, 2022
Korea proposes W14 tril. extra budget to support pandemic-hit merchants
Economy

Retail investors in biotech on verge of losing money over chilled market sentiment

SillaJen is one of the companies in the medical care and pharmaceutical sectors that are embroiled in financial scandals this year. Korea Times fileBy Yi Whan-wooRetail investors in biotech stocks face the risk of losing their invested money, as financial scandals surrounding key listed companies in the healthcare and pharmaceutical sectors are chilling market sentiment after a rough start in 2022.The related stocks on both the benchmark KOSPI and tech-heavy KOSDAQ took a tumble in general, over embezzlement scandals linked to Osstem Implant and SillaJen, and the bourse operator's preliminary measure to delist them from the KOSDAQ indefinitely.The market capitalization of SillaJen once hovered around 10 trillion won ($8.3 billion) but shrank to 1.24 trillion won in the wake of the scandal.Another KOSDAQ-listed company, Kolon TissueGene, awaits the Korea Exchange's (KRX) final decision as to whether it should be delisted permanently. Its shares have been temporarily suspended from trading since May 2019 over the mislabeling and false reporting of ingredients.KOSPI-listed Celltrion is

Jan 20, 2022By Yi Whan-woo
Retail investors in biotech on verge of losing money over chilled market sentiment
Economy

More people place hopes on lottery tickets as pandemic drags on

By Lee Kyung-min Kim Sun-jin, 20, has been buying a lottery ticket each month, ever since she was let go from her part-time job at an eatery in Seoul in 2020 when the COVID-19 pandemic was tanking the country's job market.“I buy it about once a month, not because I believe I will win, but because I hope I do,” she said. “I think others who buy them feel the same. I feel less worried about my future at the thought of winning billions of won ― however brief that feeling may be.”She thought her minimum wage job was a stable source of income, but she was wrong.“It was mostly about serving food and beer. The work was not that demanding and the owner of the eatery sometimes paid me extra, when sales were good. But people not gathering at night after work led to a sudden sales decline and I was let go as a result.”Similarly, Lee Hee-chan, a man in his 40s who runs an indoor facility where Latin dance classes are held, says he understands why people buy lottery tickets.“It would make all my problems go away. I wouldn't need to pay monthly rent for th

Jan 20, 2022By Lee Kyung-min
More people place hopes on lottery tickets as pandemic drags on
Economy

Residents' foreign currency deposits decline in December

gettyimagesbank Foreign currency deposits at banks here declined in December as companies reduced foreign currency holdings for investment, Bank of Korea (BOK) data showed Thursday.According to the data from the central bank, outstanding foreign currency-denominated deposits held by residents came to $97.27 billion as of the end of December, down $5.75 billion from the previous month.Residents include local citizens, foreigners staying here for more than six months and foreign companies. The data excludes interbank foreign currency deposits.The decline came as companies withdrew their foreign deposits, mostly dollar-denominated holdings, to secure funds for investment.Their foreign currency holdings totaled $78.5 billion, down $6.02 billion from a month earlier, the data showed.Individuals, meanwhile, increased their foreign currency deposits by $270 million over the same period.The rise is attributed to growing expectations that the dollar will gain further ground

Jan 20, 2022
Residents' foreign currency deposits decline in December
Economy

OECD leading index for Korea drops for 5th month in December

gettyimagebank A leading economic index for Korea fell for the fifth consecutive month in December, pointing to a slowdown in Asia's No. 4 economy down the road, data showed Thursday.The composite leading indicator (CLI) of economic activity for Korea stood at 101.2 for December, down 0.09 of a point from the previous month, according to the data from the Organization for Economic Cooperation and Development (OECD).The index for South Korea had been contracting since August following 15 straight months of gains. Yet the December tally was still above the benchmark 100, which separates expansion from contraction.The CLI gauges how an economy will fare four to six months ahead, based on industrial output, gross domestic product, and housing and financial market conditions.Experts voiced concern that the Korean economy may lose growth momentum going forward, given the latest OECD data."The downtick in the OECD index suggests that the recovery pace of the economy could

Jan 20, 2022
OECD leading index for Korea drops for 5th month in December
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