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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

Ruling presidential candidate shifts stance on short-selling

Ruling Democratic Party of Korea presidential candidate Lee Jae-myung poses at the Korea Exchange building in Seoul, Nov. 4. Korea Times photo by Oh Dae-geunRetail investors unsatisfied with Lee's cautious approachBy Park Jae-hyukRuling Democratic Party of Korea (DPK) presidential candidate Lee Jae-myung started to soften his stance toward short-selling on the local stock market, in contrast to last year when he supported a ban on the investment move which bets on a drop in a stock prices.The issue is raising concerns from retail investors, as they have been urging the DPK presidential candidate to specify more detailed measures to ensure fair competition with overseas and institutional investors.Earlier this week, the DPK candidate wrote on Facebook that individual investors should be allowed to borrow a greater amount of shares for short-selling, so that they can engage in competition with larger investors on a level playing field.He also mentioned the possible necessity of harsher punishments for illegal short-sellers, such as those who conduct short-selling without actually borro

Nov 9, 2021By Park Jae-hyuk
Ruling presidential candidate shifts stance on short-selling
Economy

Contribution How will economy respond to 'Living with COVID-19'?

By Lloyd ChanLloyd Chan, economist at Oxford EconomicsDespite a surge in Delta-driven COVID-19 cases, Korea's economy continues to recover and should enter 2022 on a firm economic footing. Output returned to pre-coronavirus levels in the first quarter of the year and by the second quarter was 1.4 percent higher. We currently forecast a 4-percent expansion for 2021 to be followed by 3.5-percent growth in 2022. And while peak growth is behind us, the recovery across all major economies will continue to support Korean exports.But next year we think consumption will be the engine for growth, particularly as coronavirus restrictions are lifted. Indeed, the government is considering how to transition into a new normal of “Living with COVID-19,” and the shift to fewer social-distancing measures may come as soon as November, according to reports. While a resurgence of COVID-19 could be a risk, a majority of the population is now fully vaccinated, reducing the chances of serious illness from the virus. Living with a new normalThe shift to relaxing restrictive measures will catalys

Nov 9, 2021By Lee Min-hyung
[Contribution] How will economy respond to 'Living with COVID-19'?
Economy

Steep government debt growth raises alarm bells in Korea

Experts advise corporate tax cut for fiscal normalizationBy Lee Min-hyungKorea's government debt-to-GDP ratio is expected to grow at the fastest pace among the world's 35 developed countries over the next five years, according to data from the International Monetary Fund (IMF). In its recent Fiscal Monitor report, the IMF warned that the government debt-to-GDP ratio is projected to reach 66.7 percent in 2026. This is an increase of 15.4 percentage points from the end of 2021. The pace of growth is the fastest among 35 countries which the financial institution classifies as developed countries. The Czech Republic came in second with a forecast of 8.7 percentage points growth during the same period, followed by Belgium, Singapore and Hong Kong.This raises alarms for the local economy at a time when post-COVID-19 pandemic uncertainty remains. Despite the pessimistic outlook, the government is still sticking to expansionary budget spending, which experts argued will continue to boost the debt.Given that Korea is one of the fastest aging societies in the world, economists have voiced the

Nov 8, 2021By Lee Min-hyung
Steep government debt growth raises alarm bells in Korea
  • Policy failure to tame soaring home prices brings social mobility crisis
  • Structural problems drive self-employed into 'Squid Game'
Economy

Krafton, KakaoBank, SKIET shares face expiration of lockup periods

From left, Krafton Chairman Chang Byung-gyu, KakaoBank CEO Yun Ho-young, SKIET CEO Rho Jae-sok / Courtesy of each company By Anna J. ParkShare prices of mobile-based KakaoBank and global online game company Krafton both declined Monday, recording falls of 2.8 percent and 2.11 percent respectively, amid concerns over the expiration of lockup periods.Despite facing a similar overhang issue, SK's materials subsidiary SK IE Technology (SKIET) saw its stock end a surprising 8.93 percent up at the close of trading, dispelling lockup expiration worries. Both KakaoBank and Krafton also saw a slight rebound in the afternoon session, somewhat reducing the shock from earlier trading.KakaoBank stock fell 8 percent in the early session from the negative impact of the expiration of its three-month lockup period, following its IPO in August. However, it managed a recovery to just 2.8 percent below the start, thanks to strong buying by foreign and retail investors. With the expira

Nov 8, 2021By Anna J. Park
Krafton, KakaoBank, SKIET shares face expiration of lockup periods
Economy

'Market-friendly' FSS governor faces backlash

Financial Supervisory Service Governor Jeong Eun-bo responds to lawmakers during a National Assembly audit in Seoul, Oct. 21. Korea Times photo by Oh Dae-geunJeong to meet top executives of banks, brokerages, asset managersBy Park Jae-hyukFinancial Supervisory Service (FSS) Governor Jeong Eun-bo is drawing criticism from progressive civic groups, after he promised to reform the financial watchdog's system of inspecting financial firms to focus more on preventing risks than imposing reactive sanctions.Some of his subordinates also remain skeptical of the change, raising concerns about the possibility of the FSS staff being blamed for the recurrence of illegal acts by financial firms.Earlier this month, Jeong said the FSS will upgrade its inspection methods to be flexible in coping with changes in the financial environment and to manage its workforce more efficiently.“Considering each financial firm's size and the complexity of their businesses, we will reasonably adjust frequency, range and methods of our inspections,” he told financial holding company CEOs last Wednesday.

Nov 8, 2021By Park Jae-hyuk
'Market-friendly' FSS governor faces backlash
Economy

Korea's debt-GDP ratio expected to rise rapidly over 5 years: IMF

gettyimagesbankSouth Korea's national debt ratio is expected to gain at the fastest clip among 35 advanced nations over the next five years despite its high financial soundness, an International Monetary Fund (IMF) report said Monday.Seoul's ratio of national debt to its gross domestic product (GDP) is likely to reach 66.7 percent in 2026, up 15.4 percentage points from the end of this year, according to the IMF report.The expected growth pace is the highest among 35 nations that the Washington-based international organization defines as advanced economies.Over the cited period, the average ratio of the 35 countries is forecast to decrease to 118.6 percent from 121.6 percent.In particular, the Group of Seven nations ― the United States, Britain, France, Germany, Japan, Canada and Italy ― are projected to drop by 3.2 percentage points to 135.8 percent.South Korea's growth rate is much higher than the 8.7 percentage points of the Czech Republic, followed by Belgium with 6.3 percentage points and Singapore with 6 percentage points.The report came as South Korea increased fiscal spending

Nov 8, 2021
Korea's debt-GDP ratio expected to rise rapidly over 5 years: IMF
Economy

Large-size IPOs fail to attract investors

gettyimagesbankBy Park Jae-hyukThe continued horizontal price movement in the local stock market is dampening initial public offering (IPO) fever and prompting a growing number of companies to withdraw their plans to go public.According to the Korea Exchange (KRX), Sunday, six companies cancelled their IPO plans over the past month. The number is considered to be quite large, given that since early 2021 two companies a month, on average, scrapped plans to go public.In particular, a series of withdrawals of the listing of Simone Accessory Collection, SM Line and Netmarble Neo on the benchmark KOSPI market over the past two weeks came as a surprise to many people, because each of their valuations is estimated to reach up to 2 trillion won ($1.7 billion).Simone cancelled plans to go public on Oct. 21, as the handbag maker failed to attract institutional investors. Industry sources mainly attributed the cancellation to Simone's second-largest shareholder Blackstone, which refused to accept a proposal from institutional investors to lower the IPO price.SM Line dropped its IPO plan last We

Nov 7, 2021By Park Jae-hyuk
Large-size IPOs fail to attract investors
Economy

Concerns over 'agflation' grow amid groceries price hike

gettyimagesbankBy Anna J. ParkAmid global inflation concerns, groceries are a major category in which consumers feel big price rises. A combination of global supply chain disruptions, global harvest depressions due to climate change as well as the pandemic-led ample liquidity all worked together to stoke the prices of groceries.According to data compiled by Statistics Korea, the consumer price index for both processed foods and livestock products, such as pork, beef and eggs, have significantly risen by 3.1 percent and 13.3 percent compared to the same month last year, respectively. The rise is the biggest since late 2014. The price increase of processed food products is mainly attributed to the price hike of raw materials, like wheat flour and palm oil. Officials from Statistics Korea explained that local food companies' price increases conducted in previous months have begun to be reflected in the index from October.The price level of groceries in the country are expected to soar further as global grain prices continue to rise.In October, the Food and Agriculture Organization's (FA

Nov 7, 2021By Anna J. Park
Concerns over 'agflation' grow amid groceries price hike
  • Instant noodles prices grow at fastest clip in 13 years in October
Economy

Recovery momentum 'feeble' due to manufacturing slowdown: KDI

People walk past signs promoting the 2021 Korea Sale FESTA in the shopping district of Myeongdong in Seoul, Oct. 31. YonhapSouth Korea's economic recovery momentum has weakened due to the slowdown in the manufacturing sector amid a global supply chain shortage and energy crisis, a state-run think tank said Sunday."The recovery in manufacturing weakens as global supply chains remain clogged, since an improvement of external conditions lost steam," the Korea Development Institute (KDI) said in a monthly economic assessment report.The manufacturing firms' shipments have fallen, while the inventory-to-shipment ratio has risen recently, the institute said, noting supply chain disruptions and rising prices of raw materials put increasing downward pressure on the global economy.But the service industry has rebounded, as domestic demand has grown on the back of eased antivirus curbs and emergency relief grants, the KDI said."As the government eased many of the social distancing rules and laid out a phased plan for economic reopening, the economy is expected to continue a moderate recovery le

Nov 7, 2021
Recovery momentum 'feeble' due to manufacturing slowdown: KDI
Economy

Instant noodles prices grow at fastest clip in 13 years in October

This July 15 file photo shows the "ramyeon," or instant noodles, section of a retail outlet in Seoul. YonhapThe prices of instant noodles in South Korea grew at the fastest pace in about 13 years last month, data showed Sunday, raising worries that such steep price hikes could increase inflationary pressures.According to the data by Statistics Korea, the price of instant noodles, or "ramyeon" in Korean, surged 11 percent in October from a year earlier. The price hike was the largest since February 2009, when the price grew 14.3 percent on-year.The steep increase came after South Korea's major noodles makers, including Nongshim and Samyang Foods, began raising their product prices in August due to increased costs to buy flour and other key materials. Instant noodles are one of the most frequently eaten foods in South Korea since they are cheap and easy to cook. The government closely monitors their price movements since a hike could apply upward pressure on inflation.In October, the country's consumer prices jumped 3.2 percent from a year earlier, the fastest clip in almost a decade.

Nov 7, 2021
Instant noodles prices grow at fastest clip in 13 years in October
  • Concerns over 'agflation' grow amid groceries price hike
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