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  • Policy

    MSCI cites improved access to Korea-linked investment products ahead of review

    Morgan Stanley Capital International (MSCI) said Friday that the Korean financial market has improved in terms of the availability of investment instruments ahead of next week's annual market classification review, while noting that underlying accessibility issues remain unresolved. "Derivative products linked to Korean indexes have recently been listed on international exchanges," it wrote in its 2026 global market accessibility review, upgrading its assessment from minus to plus. A plus rating means there are no major issues, though there is still room for improvement. MSCI said some restrictions remain in Korea on the use of exchange data for the creation of financial products. The Korean market received minus ratings in six of the 18 assessment categories last year. But this year, as the availability of investment instruments category was upgraded to plus, the number of minus-rated categories fell to five: the foreign exchange market liberalization level, investor registration and account setup, information flow, clearing and settlement, and transferability. "Authorities have continu

    2 MIN READBy Lee Yeon-woo
    MSCI cites improved access to Korea-linked investment products ahead of review
  • Economy

    KOSPI slips from record high amid US-Iran uncertainty

    2 MIN READBy Lee Yeon-woo
    KOSPI slips from record high amid US-Iran uncertainty
  • Economy

    Gov't to expand supply of imported eggs amid price hikes

    1 MIN READBy Yonhap
    Gov't to expand supply of imported eggs amid price hikes
  • Economy

    Seoul stocks sharply up late Friday morning on chip rally

    1 MIN READBy Yonhap
    Seoul stocks sharply up late Friday morning on chip rally
  • Economy

    US-Iran MOU poses new opportunities, challenges for Korea: finance minister

    2 MIN READBy Yonhap
    US-Iran MOU poses new opportunities, challenges for Korea: finance minister
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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

Contribution Securities law revisions to spur buyouts in Korea

gettyimagesbankBuyout opportunities in promising sectors to increase next yearValerie KorBy Valerie KorKorea's private equity industry has been accelerating in recent years. Assets under management (AUM) have grown at a compound annual growth rate (CAGR) of 29 percent from 2010 to a record $120 billion as of March 2021, and $39 billion of dry powder is waiting to be deployed, according to data from Preqin. Buyout strategies make up a significant 38 percent of total AUM, a considerably higher proportion than the 13 percent across the entire Asia-Pacific region.But growth stalled in 2021, with buyout funds raising just $5 billion in the first 11 months of the year, a substantial drop from the record high figure of $17 billion raised in 2020. However, the reduction of restrictions on fundraising in Korea's Capital Market Law, particularly a raising of the limit on the number of “professional” investors from 49 to 100, is expected to help reboot the fundraising market.A number of fund managers are reported to be gearing up to take advantage of the new regulations, with Korean

Dec 29, 2021
[Contribution] Securities law revisions to spur buyouts in Korea
Economy

COVID-19, rate hikes to hamper economic recovery in 2022

High vaccination rate, medical capacity expansion may offset risks to GDP growth: expertsBy Lee Min-hyungThe resurgence of COVID-19 and additional rate hikes are expected to pose major downside risks to the Korean economy in 2022, putting a drag on a long-awaited economic recovery, economists here and abroad told The Korea Times in interviews marking the arrival of the new year.Previously, there had been a wave of optimism for a solid recovery next year following the predicted end of the pandemic. But reviving fears stoked by the relentless spread of the coronavirus and its variants are dimming the outlook for robust economic growth here, they said.In 2021, the Korean economy is forecast to achieve 4-percent GDP growth on a quick rebound of manufacturing exports ― such as computer chips and petrochemical products ― according to the Bank of Korea (BOK). The growth forecast is in line with the recovery momentum of the global economy after a recession that lasted more than a year due to the shock of the pandemic outbreak in 2020.But as the base effect on the side of exports is expected

Dec 29, 2021By Lee Min-hyung
COVID-19, rate hikes to hamper economic recovery in 2022
Economy

Korea to launch industrial security advisory body

First Vice Minister of Trade, Industry and Energy Park Jin-kyu. Korea Times fileBy Lee Kyung-min The industry ministry has decided to establish an external advisory body dedicated to enhancing the country's industrial security policies, as part of its efforts to better manage supply chain issues threatening the long-term growth of local exporters and technology developers as well as the expansion of foreign investment.The measure seeks to strengthen protections for the country's key growth driver firms and cooperation with their peers in advanced economies, to strengthen and set up bilateral and multilateral supply chains to be insulated from unforeseen disruptions and complications, not unlike the COVID-19 pandemic. In talks with Korea for the shared objectives are the U.S. and European countries. The Ministry of Trade, Industry and Energy said Tuesday that the advisory body will be composed of 17 academic and private-sector experts with in-depth knowledge and experience. Senior researchers at state-run think tanks, lawyers and university professors will join the group. “The g

Dec 28, 2021By Lee Kyung-min
Korea to launch industrial security advisory body
Economy

Electricity price increase to deepen inflation concerns

gettyimagesbankBy Anna J. Park As the government clarified its position on increasing electricity and gas prices next April, concerns are rising over whether the rising utility bills will add fuel to rapid inflation.The core reason behind the government's plan to raise prices in the second quarter of next year is rising global energy prices, which are beyond the control of the Korean government. The globally rising prices of raw energy materials have been afflicting the fact sheets of state-run energy companies, leading the government to charge more to users. The Korea Electric Power Corporation (KEPCO) plans to raise electricity bills by 11.8 won (approximately 1 cent) per kilowatt, during the course of next year. The average monthly burden on a four-member household using 304 kilowatts per month is likely to increase by 1,950 won next year. Korea Gas Corporation (KOGAS) will also raise its price by 1.23 won per megajoule next May, followed by further 1.9 won and 2.3 won increases in July and October. The average household electricity bill is expected to increase from current 28,450

Dec 28, 2021By Anna J. Park
Electricity price increase to deepen inflation concerns
Economy

ANALYSIS Bank of Korea feared to suffer leadership vacuum

Bank of Korea Governor Lee Ju-yeol speaks during a National Assembly audit in Seoul, Oct. 15. Joint Press Corps-YonhapBy Lee Min-hyungThe Bank of Korea (BOK) is set to face a leadership vacuum after Governor Lee Ju-yeol ends his term at the end of March 2022, as his replacement is unlikely to be announced before the country's next president takes office in May.President Moon Jae-in should, in principle, appoint the next leader of the central bank sometime as early as February, so that the potential candidate can have a National Assembly confirmation hearing and start his or her term on April 1.But the plan will not proceed as scheduled due to the March 9 presidential election. The incumbent administration is unlikely to do so, as a political gesture to respect the decision of the next president and his administration, experts said. Another reason that increases the likelihood of there being a leadership vacuum is that no specific figures inside or even outside of the central bank have so far been considered as favorites for the position.Lee started his term back in March 2014, follow

Dec 28, 2021By Lee Min-hyung
[ANALYSIS] Bank of Korea feared to suffer leadership vacuum
Economy

ANALYSIS Labor market uncertainties cause gig economy to grow

Pandemic shifts landscape of job market By Anna J. ParkThe global pandemic over the last two years resulted in a major shift in Korea's labor market with the so-called “gig economy” and “gig workers” becoming increasingly visible.A gig economy is typified by a prevalence of short-term contracts or freelance work instead of permanent jobs. Gig workers, or independent contractors, offer their services on demand instead of being fettered by the hierarchies of traditional companies. This labor market trend is well aligned with a strengthened individualistic tendency among the country's young generation, as well as the desire for a flexible work environment amid pandemic-led economic shifts.While many of these independent contractors work in delivery services, the on-demand workforce in other sectors such as design, marketing, writing and consulting are now engaged more than ever in this style of operation.Both workers and companies seem to be in a win-win situation, as employees seek more independence and flexibility in their work environment, while companies also

Dec 28, 2021By Anna J. Park
[ANALYSIS] Labor market uncertainties cause gig economy to grow
Economy

Contribution Korea urged to tackle demographic challenge for sustainable growth

Rajiv BiswasBy Rajiv BiswasThe South Korean economy rebounded in 2021 with estimated GDP growth of 4 percent despite the ongoing COVID-19 pandemic. The outlook for 2022 is for sustained economic expansion at a pace of around 3 percent. However, despite the high share of the South Korean population that is fully vaccinated, the pandemic continues to be a key downside risk to the economic growth outlook for 2022. The detection of an increasing number of local cases of the highly transmissible Omicron variant during mid-December has added to fears about an escalating COVID-19 wave extending into early 2022. The OECD advanced economies and Asia-Pacific industrial nations are expected to be the key growth engines of the world economy in 2022. The impact of the COVID-19 pandemic is expected to be gradually contained in these nations, helped by their high current vaccination rates and access to vaccines for booster shots. This will support the continued expansion of domestic demand in these economies, as well as driving growth in world trade.Reflecting sustained global economic expansion,

Dec 28, 2021By Lee Kyung-min
[Contribution] Korea urged to tackle demographic challenge for sustainable growth
Economy

Gov't to buy 200,000 tons of rice to stabilize prices

gettyimagesbankThe government will buy 200,000 tons of locally produced rice this year to help stabilize the market price of the staple grain, the ruling party said Tuesday following a meeting with agriculture authorities. "Of the surplus amount of 270,000 tons of rice, the government will isolate 200,000 tons from the market in the near future," said Rep. Park Wan-joo, the chief policy maker of the ruling Democratic Party (DP). "The government will announce a detailed plan for the purchase of 200,000 tons in January following discussions with related parties."Park added the government will monitor market situations and rice reserves to determine whether and when it should buy the remaining surplus amount of 70,000 tons of rice. The move comes after this year's rice production reached 3.88 million tons, up 10.7 percent from a year earlier, and outmatched expected demand of 3.61 million tons, which resulted in a surplus of 270,000 tons. Due to the oversupply, rice prices have dropped nearly 10 percent since early October and dragged down the income of farmers. Under the grain manageme

Dec 28, 2021
Gov't to buy 200,000 tons of rice to stabilize prices
Economy

Fast-aging Korea losing vibrancy

gettyimagesbankBy Lee Kyung-min Calls are mounting for a prompt overhaul of the National Pension Service (NPS) among other state-run social safety net programs, a discussion that can no longer be delayed in a fast-aging society where a fifth of the total populations of two out of five municipalities are aged 65 or older.The need to advance the politically divisive, key voting issue is increasing, with Korea's working-age population on a rapid decline driven in large part by an ultra-low birthrate. This is the prime cause of a sharp fall in the country's potential growth rate on the fastest decline among OECD member nations.Korea's fiscal soundness will come under threat sooner than expected, unless swift and drastic measures are implemented to address the survivability of organizations certain to report losses due to sagging overall labor productivity.Further fanning the concerns are the country's militant unions in an extremely rigid labor market, the biggest and most-frequently cited risk factor deterring hefty, long-term foreign investments.Potential growth rate, or potential GDP,

Dec 27, 2021By Lee Kyung-min
Fast-aging Korea losing vibrancy
Economy

Presidential candidates vow to revamp capital market

Ruling party presidential candidate Lee Jae-myung, left, speaks during his appearance on 3ProTV's YouTube channel aired on Dec. 25. Main opposition party presidential candidate Yoon Suk-yeol speaks during a press conference in Seoul, Monday. YonhapBy Anna J. ParkAs the presidential election nears, rival candidates have each come up with their own election promises and views on how to improve local capital markets, aiming to attract votes from active retail investors.The main opposition People Power Party's (PPP) presidential candidate Yoon Suk-yeol vowed to completely abolish the securities transaction tax by 2023. He made the comment during his capital market policy announcement held at PPP headquarters on Yeouido, Monday. “Although one in five people in the country is participating in the local stock market, the stock markets haven't yet functioned properly to share listed companies' growth with retail shareholders,” Yoon said, adding that he pledges to focus on creating a fairer market system where the values of local companies are well-acknowledged, and both companies

Dec 27, 2021By Anna J. Park
Presidential candidates vow to revamp capital market
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