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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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Economy

Loan rules for home rentals to be eased: financial regulator

FSC chief Koh Seung-beom speaks to reporters during a brief meeting on the sidelines of a ceremony in Seoul, Oct. 14. YonhapSouth Korea will ease tight regulations on loans taken out for home rentals as part of efforts to protect people in actual need of borrowing as financial authorities are set to unveil additional measures to rein in household debt this month, the head of the country's financial regulator said Thursday.In a brief meeting with reporters, Koh Seung-beom, the chief of the Financial Services Commission (FSC), said that controls on such loans for the "jeonse" arrangement will be managed in a "flexible" manner."For loans taken out for jeonse in October, November and December, the cap on aggregate loans will be applied in a flexible manner," Koh said. "We will tolerate it even if the growth rate of outstanding household debt exceeds the targeted range if that is due to a rise in loans for jeonse."Under South Korea's decades-old jeonse system, tenants pay a large lump-sum deposit, known as key money, to the landlord, which is then returned at the end of the rental agreeme

Oct 14, 2021
Loan rules for home rentals to be eased: financial regulator
Economy

South Korea, UAE agree to push for free trade deal

In this 2019 February file photo, President Moon Jae-in and Crown Prince Mohammed bin Zayed Al Nahyan of Abu Dhabi walk toward the venue of a welcoming event for the crown prince at Cheong Wa Dae. YonhapSouth Korea and the United Arab Emirates (UAE) announced Thursday that they will launch official talks toward a bilateral free trade agreement, Seoul's trade ministry said. Trade Minister Yeon Han-koo met his UAE counterpart, Thani Ahmed Al Zeyoudi, in Dubai, and issued a joint statement that calls for pushing to forge a Comprehensive Economic Partnership Agreement (CEPA), according to the Ministry of Trade, Industry and Energy.The CEPA is a type of free trade agreement that emphasizes a broader scope of economic cooperation and exchanges on top of market opening."The UAE is South Korea's key partner country under 'the special strategic partnership' and the two nations have been working closely on energy fields and responses to the COVID-19 pandemic," Yeo said. "The CEPA is expected to further boost transactions and investment in bio, aerospace, hydrogen and renewable energy, and many

Oct 14, 2021
South Korea, UAE agree to push for free trade deal
Economy

Seoul will take steps if necessary to stabilize foreign exchange market: finance minister

Finance Minister Hong Nam-ki speaks to reporters after his participation in the Group of 20 finance ministers and central bank governors' meeting in Washington, Oct. 13. YonhapThe South Korean government will take market-stabilization steps should there be increased volatility in the foreign exchange market caused by abnormal factors, such as speculation, Finance Minister Hong Nam-ki said Wednesday.Hong, however, noted the recent fluctuations in the local FX market were largely due to external economic risks."When it comes to the foreign exchange, the government cannot but accept changes caused by the market supply and demand, but it is closely monitoring the market because large fluctuations in the foreign exchange rate caused by speculation are not at all desirable to our economy," the finance minister said."As always, the government is ready (to take steps) if necessary. I note the government will always be prepared and implement stabilization measures if needed," he added, while speaking to reporters after his participation in the Group of 20 finance ministers and central bank go

Oct 14, 2021
Seoul will take steps if necessary to stabilize foreign exchange market: finance minister
Economy

Carlyle Group to acquire A Twosome Place coffee chain

A Twosome Place image seen on the coffee chain's official website / Courtesy of A Twosome PlaceBy Anna J. ParkThe Carlyle Group plans to acquire Korea's No. 2 coffee chain, A Twosome Place, for around 800 billion won ($669 million). The global investment firm is known to be in the final phase of negotiations with Hong Kong-based Anchor Equity Partners, the current owner of the franchise.The final acquisition agreement is set to be signed soon, after the two sides iron out the final details.If the deal is finalized, Anchor Equity and its partners are expected to reap almost a 100 percent return on their investments after just a few years. Anchor Equity previously aimed to pursue a public offering of the coffee chain in May this year, but changed its plan after Carlyle and other global investment firms showed keen interest in buying the brand.Market insiders said the homegrown coffee chain's solid performance during the pandemic was the key factor that attracted the interest. A Twosome Place's annual revenue increased more than 10 percent year-on-year to 360 billion won in 2020, while

Oct 14, 2021By Anna J. Park
Carlyle Group to acquire A Twosome Place coffee chain
Economy

Eximbank loses W35.6 bil. in overseas investments

Export-Import Bank of Korea (Eximbank) CEO Bang Moon-kyu speaks during a National Assembly audit of the state lender, Wednesday. YonhapCEO Bang vows to strengthen risk managementBy Lee Kyung-min The Export-Import Bank of Korea (Eximbank) has lost almost the entire investment of 35.6 billion won ($29.8 million) made with two local private equity funds (PEFs) during the 2008-13 Lee Myung-bak administration, a ruling party lawmaker said Wednesday.Rep. Park Hong-keun of the Democratic Party of Korea (DPK) said data provided by Eximbank for the audit of the state lender by the National Assembly Strategy and Finance Committee showed two private equity funds ― Troika and Global Dynasty, set up in 2009 and 2010, respectively, as part of an energy diplomacy drive led by Lee ― reported net losses of 98.9 percent and 100 percent, respectively. The government under the Lee administration revised a relevant law governing Eximbank and Lee made a presidential decree in 2009 for the state lender to invest in overseas resource development funds. An investment of 33.4 billion won was made with the Tro

Oct 13, 2021By Lee Kyung-min
Eximbank loses W35.6 bil. in overseas investments
Economy

Job additions largest in over 7 years in September

gettyimagesbankSouth Korea reported the largest job growth in more than seven years in September in the latest sign that the country's job recovery has continued despite the fourth wave of the pandemic, data showed Wednesday.The number of employed people reached 27.68 million last month, 671,000 more than a year earlier, according to the data compiled by Statistics Korea.It marked the largest job additions since March 2014, when the number of employed people grew 726,000. It also was the seventh straight month of job growth.Job recovery has continued as the South Korean economy is on a recovery track on the back of robust exports, according to the statistics agency.The pace of job additions picked up in September even as the country is grappling with the resurgence in COVID-19 cases. South Korea's daily virus infections exceeded 1,000 for more than three months.Since July 12, the greater Seoul area, home to half of the country's population of 52 million, has been under the Level 4 social distancing rules, which includes restrictions on business operations and private gatherings.The n

Oct 13, 2021
Job additions largest in over 7 years in September
Economy

Korea's unregulated crypto-mediated FX transfers hit record-high

Korea Customs Service Commissioner Lim Jae-hyeon speaks during a parliamentary audit of Korea Customs Service at the National Assembly, Tuesday. YonhapBy Lee Kyung-min Korea registered over 812.2 billion won ($676.9 million) in questionable foreign currency transfers involving cryptocurrencies in the first eight months of the year, a ruling party lawmaker said Tuesday. Such foreign currency transfers are subject to scrutiny under the Anti-Money Laundering Act. The authorities expect they have been used for tax evasion, overseas gambling and drug smuggling. Rep. Song Jae-ho of the Democratic Party of Korea (DPK) said data submitted from the Korea Customs Service (KCS) for the National Assembly Finance Committee's audit of the customs agency showed a record high, 21-fold year-on-year increase in cryptocurrency-related transfers that accounted for about 68 percent of 1.19 trillion won in suspicious foreign currency transfers as of August. Individuals involved in 13 cases of falsifying foreign currency remittance reports or failure to submit them were fined a combined 885.6 billion won.

Oct 12, 2021By Lee Kyung-min
Korea's unregulated crypto-mediated FX transfers hit record-high
Economy

Bank of Korea governor hints at another rate hike in November

By Lee Min-hyungThe Bank of Korea (BOK) reinforced its signals of a key rate hike in November, Tuesday, following a forecast of a solid economic recovery.“The central bank can consider raising the rate once more next month if the economy continues to bounce back in line with our expectations,” BOK Governor Lee Ju-yeol said during an online press conference after its monetary policy board kept the benchmark rate frozen at 0.75 percent.Even though the board decided to keep the rate unchanged during the rate-setting meeting, the BOK will keep a close watch on any possible changes in internal and external financial circumstances over the next few weeks before possibly raising the rate next time, the head of the central bank said.Two hawkish members of the seven-member monetary board ― Lim Ji-won and Suh Young-kyung ― voted for a rate rise of 25 basis points. But the majority decided to remain dovish this time on fears of widening external financial uncertainties that could have a potential domino effect on the nation's stock markets.The concern reflected the recent collapse o

Oct 12, 2021By Lee Min-hyung
Bank of Korea governor hints at another rate hike in November
Economy

KKR betting more on Korea

KKR Co-CEO Joseph BaeBy Park Jae-hyukKKR is increasing its investments in Korea after Korean American co-President Joseph Bae was promoted to be one of two co-CEOs, succeeding the world's leading private equity firm's (PEF) co-founders Henry Kravis and George Roberts.The U.S. investment firm said Bae and co-president Scott Nuttall were appointed co-CEOs as the two co-founders have stepped down. The changes have been expected since Bae and Nuttall began to serve as the firm's co-presidents in 2017.“As a team, we are deeply honored to be stewards of the capital of our clients and shareholders and, with our partners, to lead the talented team of employees who collaborate to deliver for them every single day,” the new co-CEOs said in a statement.A day after KKR's announcement, SK E&S said the foreign PEF was selected as the preferred bidder to invest 2.4 trillion won ($2 billion) in its redeemable convertible preferred stock adding an agreement will be signed later this month.Bae is said to have directed his firm's team involved with the deal, to beat out three other bidd

Oct 12, 2021By Park Jae-hyuk
KKR betting more on Korea
Economy

Contribution Korea's challenges and tailwinds

Dave Chia, economist at Moody's Analytics / Courtesy of Moody's AnalyticsBy Dave ChiaKorea is one of the better performing economies in the Asia-Pacific region this year. Exports will be the best remedy for the pandemic-scarred economy, while hefty household debt coupled with a heated real estate market will be key challenges.Like other economies, Korea has battled with a series of stop-start social distancing measures to combat repeated waves of COVID-19. Nevertheless, it was one of the few where output surpassed pre-pandemic levels in the March quarter of 2021. Second-quarter GDP growth lost some steam, and the third quarter will likely remain soft. We forecast GDP growth to notch 4.2 percent in 2021 and 3.3 percent in 2022. This is slightly more optimistic than the Bank of Korea's respective 4 percent and 3 percent forecasts for those years. The Korean economy has a few troubles. Number one is rising household debt. This stands at 104 percent of GDP, according to the Institute of International Finance (IIF). Over the past decade, surging property prices and credit card spending ha

Oct 12, 2021By Lee Kyung-min
[Contribution] Korea's challenges and tailwinds
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