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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

Korea urged to monitor a possible shrink in exports

Shipping containers are seen at a port / gettyimagesbankBy Kim Bo-eunThe Korea International Trade Association (KITA) on Wednesday warned of risks ahead of U.S. tapering measures, as Korea's exports to emerging economies with weak fiscal conditions could slow down.The KITA-affiliated Institute for International Trade issued a report stating that tapering implemented by the U.S. since the global financial crisis in 2008 increased uncertainty in emerging economies with high fiscal risks, affecting Korea's exports to these countries.The share of trade involving emerging economies as a percentage of global trade steadily increased from 26.1 percent in 2002, to 40.8 percent in 2014, but since 2014, after the U.S. took tapering measures, the percentage of trade involving emerging economies stopped growing, remaining at around 40 percent.In particular, the percent of trade involving countries such as Brazil, India, Indonesia, Turkey and South Africa, which were classified as financially vulnerable during the financial crisis, shrank. In 2015, when the interest rate hikes began, global impor

Oct 20, 2021By Kim Bo-eun
Korea urged to monitor a possible shrink in exports
Economy

Gov't considering temporary fuel tax cut amid surging prices

In this Aug. 26 file photo, a flare burns natural gas at an oil well at Watford City in the United States. As energy prices surge around the world, the Korean government is considering temporarily lowering fuel taxes to ease consumer burden. AP-YonhapSouth Korea is considering temporarily lowering fuel taxes to ease consumer burden from surging gasoline prices, the country's top economic policymaker said Wednesday.Finance Minister Hong Nam-ki said the government will unveil relevant actions, including a fuel tax cut, as early as next week."As the international oil prices are on the rise, driving up gasoline prices and putting upward pressure on consumer prices, we are considering such preemptive measures as a fuel tax cut," Hong told lawmakers during a parliamentary audit."At a time when oil prices have exceeded $80 per barrel, relevant actions will be taken as early as next week."Hong said that crude oil prices have risen to the highest level since October 2018 and the prices will not likely go down any time soon.Prices of Dubai crude, South Korea's benchmark, reached a near three-y

Oct 20, 2021
Gov't considering temporary fuel tax cut amid surging prices
Economy

Contribution Climate Response Fund's effectiveness will be determined by 'how well it is spent'

Jón Blöndal, head of the Public Management and Budgeting Division, OECD / Courtesy of Ministry of Economy and FinanceBy Jón BlöndalAs the COVID-19 pandemic has unfolded with its severe economic and social implications, OECD governments have responded with unprecedented fiscal resources to support businesses and families in order to mitigate its effects. Korea has been especially resourceful in its use of budget measures in this regard. In fiscal terms, Korea came into the COVID-19 crisis in an enviable condition compared to many other OECD countries. Korea has a long-established and admired record of fiscal responsibility and enjoys one of the lowest debt-to-GDP levels in the OECD. Korea has also invested in the modernization of the institutions, processes and tools it uses to allocate and manage the budget.As a result, Korea was able to deploy very large resources due to its low debt ratio, and to allocate them effectively at very short notice to the areas where they were most needed, due to its modern system of budgeting.As the COVID-19 pandemic ab

Oct 20, 2021By Lee Kyung-min
[Contribution] Climate Response Fund's effectiveness will be determined by 'how well it is spent'
Economy

ANALYSIS New Capital Markets Act weighs on smaller PEFs

gettyimagesbankLarger fund managers capitalizing on regulatory reformBy Park Jae-hyukThe enforcement of the revised Financial Investment Services and Capital Markets Act from Thursday this week has created a stir over the possibility of widening the gap between large and small private equity firms (PEFs) here.In contrast to bigger firms that view the regulatory reform as an opportunity to start lucrative new businesses, smaller ones are facing greater challenges in their fundraising, causing concerns about their sustainable operations.“The revision could solidify the dominance of large companies in the nation's private equity industry,” an industry insider said on condition of anonymity.The new law categorizes funds raised by PEFs into the “general funds,” in which individuals can invest, and “institution-only funds” that only allow investments from institutions and certain professionals.Previously, such funds were classified as hedge funds and those used for involvement in the management of companies. However, the classification system has been ch

Oct 20, 2021By Park Jae-hyuk
[ANALYSIS] New Capital Markets Act weighs on smaller PEFs
Economy

China's disappointing Q3 growth unnerves Korea

Exports still strong but complications could arise By Lee Kyung-min The impact of China's disappointing growth in the July-September period should be monitored closely by Korea, a trade-reliant economy which sends over a quarter of its exports to the world's second-largest economy, market watchers said Tuesday. China accounts for 26.1 percent of Korea's exports, a figure much higher than Korea's second-largest trading partner, the U.S., with 15 percent. China's poor industrial output figures are feared to plunge further due to power shortages and plant operation shutdowns brought on by coal shortages, coupled with environmental curbs on heavily polluting steel and aluminum plants. Yet its exports and consumption remain strong, insulating Korea from an immediate adverse impact to a considerable degree. Experts say Korea's exports ― a key growth driver of the economy ― remain relatively unaffected, as indicated by updates in high-frequency datasets. Korea's GDP by extension is not likely to suffer an immediate dent, they say, but complications could arise at any moment, leading to a sh

Oct 19, 2021By Lee Kyung-min
China's disappointing Q3 growth unnerves Korea
Economy

Major law firms avoid defending FSS in lawsuit with Woori chief

The Financial Supervisory Service's headquarters in Seoul / Korea Times fileBy Park Jae-hyukThe Financial Supervisory Service (FSS) has ultimately not hired attorneys from major law firms for the second round of its court battle with Woori Financial Group Chairman Son Tae-seung.The financial watchdog said Tuesday that it signed contracts with the state-run Korea Government Legal Service (KGLS) and private law firm Kim, Chang & Lee to overturn the Seoul Administrative Court's Aug. 27 ruling ordering it to revoke the heavy sanctions it had placed last year on Son.“Kim, Chang & Lee may not be well-known to the public, but it is a competent firm,” FSS legal affairs department head Yang Jin-tae said.In the first trial, the institution was represented by lawyers from the mid-size law firm, HMP Law, but after they moved in August to another mid-size law firm, Jipyoung, there were fewer reasons for the FSS to maintain its contract with HMP Law.The FSS was also unable to sign a contract with Jipyoung, because several other cases that are handled by the law firm could cause

Oct 19, 2021By Park Jae-hyuk
Major law firms avoid defending FSS in lawsuit with Woori chief
Economy

Greenflation feared to loom over Korean economy amid carbon neutral transition

Smoke rises from the chimneys of plants at an industrial complex in this undated photo. YonhapBy Yi Whan-wooSurging energy prices and the government's finalized plan to drastically cut greenhouse gas emissions are prompting concerns over “greenflation” ― price hikes in metals, minerals and other natural resources needed for renewable technologies.Industry sources said Tuesday that Korea “has plenty of reasons be nervous” about increases in utility costs, as the prices of major energy sources worldwide have been climbing sharply.On Monday, Brent Crude oil hit a three-year high price of $86.04 per barrel, while U.S. West Texas Intermediate (WTI) Crude Futures reached a seven-year-high of $83.73 per barrel.The shortages of natural gas and coal are in full view, as China is struggling with its energy supply and other key economies are facing higher energy demand as they rebound from the pandemic.Against this backdrop, the official commitment made by President Moon Jae-in, Monday, to reduce greenhouse gas emissions by 40 percent from 2018 levels by 2030, is pushing

Oct 19, 2021By Yi Whan-woo
Greenflation feared to loom over Korean economy amid carbon neutral transition
Economy

Blackstone-backed global handbag maker to go public next month

The headquarters of Simone Accessories Collection, located in Uiwang, Gyeonggi Province / Courtesy of Simone Accessories CollectionBy Anna J. Park Simone Accessories Collection, a luxury handbag maker that mainly sells products on an ODM (original design manufacturer) basis to global fashion brands such as Coach, Michael Kors, and Tory Burch, will make its debut on the KOSPI next month.During an online press conference about its IPO held Monday, the company highlighted its strength as a full-platform service, including providing designs, manufacturing and quality assurance. The firm also noted how it receives simultaneous orders from various competing global fashion brands, which indicates the competitiveness of its products.The company accounts for about 10 percent of the global handbag and wallet ODM market, the world's top share in the industry. More than 80 percent of the firm's revenue comes from major customers, including Tapestry (Coach, Kate Spade), Capri Holdings (Michael Kors) and Tory Burch. The firm also receives orders from Marc Jacobs and DKNY.“Based on the world'

Oct 19, 2021By Anna J. Park
Blackstone-backed global handbag maker to go public next month
Economy

Korea faces possible 3 percent inflation

Deputy Prime Minister and Finance Minister Hong Nam-ki. Korea Times fileBy Lee Kyung-min Korea is expected to register inflation of over 3 percent this year, driven by soaring raw material prices compounded further by hesitancy among oil producers.This bodes ill for the country's policymakers who have long maintained that the annual inflation will be kept below the Bank of Korea's target of 2 percent, weakened mostly by the once-assuring claims that the one-off, supply-side complications would have limited impact in the long term.The figure touching 3 percent, which will be for the first time in a decade since February 2012, is almost certain, since rising commodity and oil prices will translate into higher utility bills.Further advancing this view are slow yet clear signs of recovery in consumption amid a growing number of economies preparing to “Live with COVID-19," fuel for even sharper, demand-driven inflation. The 3 percent inflation is highly possible, as implied by an assessment made by a finance ministry official on economic development for October.“The possibilit

Oct 19, 2021By Lee Kyung-min
Korea faces possible 3 percent inflation
Economy

NPS' venture capital investments to exceed 1 trillion won

The headquarters of National Pension Service located in Jeonju / YonhapBy Anna J. ParkThe National Pension Service (NPS) will hold assets in its venture capital portfolio estimated to exceed 1 trillion won ($840 million) by the end of the year. This is the first time the NPS's venture assets will exceed this level, since it began investing in the venture capital market in 2002.According to local investment banking sources, the NPS has made more than 500 billion won venture capital investments so far this year, more than double previous investments of 200 billion to 300 billion won. With the increased riskier investments, the venture capital assets total held by the NPS will be increased by more than 10 percent from last year's 910 billion won. Due to its penchant for stable long-term profits, the national pension provider's proportion of venture capital investments, which tend to be high-risk and high-return, had remained at minuscule levels over the past decades. This cautious approach is changing as the fast growth of some of Korea's home-grown unicorn companies has brought the NPS

Oct 18, 2021By Anna J. Park
NPS' venture capital investments to exceed 1 trillion won
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