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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

Bank of Korea freezes key rate

The Bank of Korea's headquarters in Seoul / Korea Times fileSouth Korea's central bank on Tuesday froze the policy rate as it assessed the impact of its rate hike in August, but it hinted at an upcoming additional increase amid rising inflation and growing household debt.As widely expected, the monetary policy board of the Bank of Korea (BOK) stood pat on the benchmark seven-day repo rate, dubbed the base rate, at 0.75 percent.In August, the BOK raised the key rate by a quarter percentage point from a record low of 0.5 percent, marking the first rate hike since November 2018.It marked the end of 15 months of record low interest rates as the South Korean economy is recovering from the COVID-19 pandemic. The BOK slashed the base rate by a combined 0.75 percentage point between March and May 2020 to prop up the pandemic-hit economy.The BOK policy board said it will gauge the timing of a further rate hike while assessing virus situations, the pace of the economic recovery and inflation.The BOK "will appropriately adjust the degree of monetary policy accommodation as the Korean economy is

Oct 12, 2021
Bank of Korea freezes key rate
Economy

BlackRock stays out of APG warning Korea about climate risks

BlackRock's sign hangs above its building in New York in this 2018 file photo. Reuters-YonhapBy Park Jae-hyukBlackRock did not add its signature to a letter sent last week by APG Asset Management and 22 other members of Climate Action 100+ to Korea's Presidential Committee on Carbon Neutrality, warning the government and businesses about their “insufficient efforts” in the country's transition to net-zero emissions.The world's largest asset manager is a major shareholder of some of the top Korean companies, such as Samsung Electronics, SK hynix, Naver and LG Chem.However, the name of one of the most important members of Climate Action 100+ was absent from the list of signatories in the letter disclosed Monday, in contrast to APG and three other leading institutional investors ― BMO Global Asset Management, EOS at Federated Hermes and Sumitomo Mitsui Trust Asset Management ― that are engaging with Korean companies through the global investor-led initiative, which aims to ensure that the world's biggest greenhouse gas emitters take action on climate change.In the letter, th

Oct 11, 2021By Park Jae-hyuk
BlackRock stays out of APG warning Korea about climate risks
Economy

Bank of Korea set to freeze key rate in October

A currency trader watches a monitor at a foreign exchange dealing room in Seoul, Oct. 7. AP-YonhapBy Kim Yoo-chulThe local equity market is still full of uncertainties and many investors are taking a wait-and-see approach, while bond market participants expect the Bank of Korea (BOK) to leave its key rate unchanged at 0.75 percent during an October monetary policy meeting.This is because the BOK is still expected to check the specific timing of the U.S. Federal Reserve's tapering measures and the pace of the Korean government's so-called “Living with COVID-19” policy, which will be applied from early November, before raising the benchmark rate to 1 percent, according to local economists.“The BOK is motivated to raise the key rate by 25 basis points. Several economic indices are showing that the South Korean economy will continue seeing gradual improvements as the pandemic subsides. Additionally, the BOK isn't ready to tolerate high inflation,” KTB Investment & Securities analysts Huh Jeong-in said Monday.Over the last few months, BOK officials, including G

Oct 11, 2021By Kim Yoo-chul
Bank of Korea set to freeze key rate in October
Economy

LINA Korea to be sold to Chubb

LINA Life Insurance Co. of Korea / Courtesy of LINA KoreaBy Anna J. ParkU.S.-based insurance group Chubb will become the new owner of LINA Life Insurance of Korea, after the group agreed to acquire it and other businesses in the region from Cigna aiming to boost the group's presence in Asia.According to the insurers late last week, Chubb will acquire LINA, as well as Cigna's other accident and health businesses located in Taiwan, Thailand, New Zealand, Hong Kong, Indonesia and Turkey for $5.75 billion.With the deal, around 20 percent of Chubb's business will be conducted in Asia going forward.“The addition of Cigna's business, which is overwhelmingly A&H (accident and health), will rebalance our global portfolio towards this important region,” Chubb CEO Evan Greenberg said. “Our agreement with Chubb is another step forward in advancing our strategic focus on our global health services portfolio,” Cigna President and CEO David Cordani said, according to a joint statement.LINA Korea, in particular, is expected to play a key role in expanding Chubb's presence

Oct 11, 2021By Anna J. Park
LINA Korea to be sold to Chubb
Economy

More foreigners turn to NPS for annuity

The headquarters of National Pension Service located in Jeonju / YonhapBy Anna J. ParkA lawmaker noted Sunday that an increasing number of foreign nationals living in Korea are relying on the National Pension Service (NPS), the country's state-run pension operator, for funding during their retirement.According to documents given to ruling Democratic Party of Korea Rep. Seo Young-seok, an additional 512 foreign nationals working here decided to increase their contributions to the NPS ― on top of their compulsory monthly premiums based on their income ― last year, which totaled 3.58 billion won ($2.9 million). The number is five times more than the 98 people who made additional premium payments in 2016. The additional contributions received by the NPS from such people soared from 500 million won in 2016 to 1.78 billion in 2019, and the 3.58 billion won last year. Given that only about 7,800 foreign residents here can claim pensions from the NPS, the number of additional premium payments is impressive. The fast-rising number also reflects that a significant portion of them are increasin

Oct 10, 2021By Anna J. Park
More foreigners turn to NPS for annuity
Economy

Samsung, SK hynix on alert over OECD's 'digital tax' deal

gettyimagesbankGoogle, Netflix to pay higher taxes in Korea from 2023By Park Jae-hyukSamsung Electronics and SK hynix are on alert over the international community's agreement Friday to introduce the so-called “digital tax” from 2023 to ensure multinational tech giants start paying a certain amount of taxes to the counties they operate in and generate profits.Both conglomerates said they will be keeping a close watch on the potential impact of the global tax deal on their operations.The Korea Chamber of Commerce and Industry (KCCI) expressed concerns about the agreement, saying a considerable number of Korean exporters will be subject to the global minimum corporate tax rate, as the new rules will also apply to companies that are not engaged in ICT businesses.“We want the government to analyze the effect of the digital tax thoroughly, so that Korean exporters can understand their burden accurately and adjust their strategies in expanding overseas,” KCCI Economic Research Division head Lee Kyung-sang said in a statement Saturday.The business lobby group, howeve

Oct 10, 2021By Park Jae-hyuk
Samsung, SK hynix on alert over OECD's 'digital tax' deal
Economy

China liquidity risks, supply chain disruptions to weigh on stock markets

Supply-side inflation feared to hurt production, consumptionBy Anna J. ParkChina's liquidity risk and global supply chain disruptions are expected to continue weighing on local stock markets, as these could cause wider volatility both here and abroad, experts said Sunday. They point out that among the mounting issues burdening global stock markets, the unresolved liquidity crisis facing Chinese real estate developer Evergrande is just one problem the markets will have to deal with.Rising global energy prices, in part due to oil prices hitting a seven-year high, are leading to increased prices in almost every commodity, resource and asset. This global inflationary pressure is weakening the possibility of a smooth recovery for both economies worldwide and investment sentiment. In response to the pressure, the central banks of major countries are mulling over advancing their timeline for tightening monetary policies, possibly heralding the end of the current liquidity-led market. The ongoing U.S. debt ceiling standoff in the Capitol is also adding fuel to growing uncertainty in global m

Oct 10, 2021By Anna J. Park
China liquidity risks, supply chain disruptions to weigh on stock markets
Economy

National Tax Service unprepared to collect tax on crypto gains: lawmaker

National Tax Service (NTS) Commissioner Kim Dae-ji speaks during a parliamentary audit of the tax agency at the National Assembly on Yeouido, Seoul, Friday. YonhapBy Lee Kyung-minAn opposition lawmaker criticized the National Tax Service (NTS) for its lack of an administrative infrastructure to collect tax on gains from cryptocurrency trading, during a National Assembly Economy and Finance Committee audit of the tax agency Friday. Rep. Yoo Gyeong-joon of the main opposition People Power Party questioned the feasibility of the government's plan to impose a 25 percent tax on gains of over 2.5 million won ($2,091) in crypto transactions over a one-year period set to take effect in January next year.Yoo asked NTS Commissioner Kim Dae-ji for his view on non-fungible tokens (NFTs) that are widely recognized as digital assets around the world, to which Kim failed to give a clear answer.“How can you say the authorities will be able to collect tax on crypto gains when the finance ministry and Financial Services Commission have yet to reach an agreement over whether NFTs are virtual asse

Oct 8, 2021By Lee Kyung-min
National Tax Service unprepared to collect tax on crypto gains: lawmaker
Economy

Toss to acquire 60-percent stake in ride-hailing service provider Tada

Toss founder and Viva Republica CEO Lee Seung-gun By Lee Kyung-minToss, Korea's internet-only bank operated by Viva Republica, will acquire Tada, a mobility startup operated by VCNC. The move will reshape the competitive landscape of the 6 trillion-won ($5 billion) ride-hailing service market, which is dominated by Kakao Mobility with a market share of 80 percent. Other than the mobility subsidiary of internet giant Kakao Corp., Toss, which has 20 million users of its internet banking services, will face fierce competition with T Map Mobility. T Map, which separated from SK Telecom last year to merge with Uber, is the leader in the smartphone navigation market, with a 75-percent market share. The ultimate goal for Toss is deeper integration between its financial and mobility services, as shown in its expansion of its businesses from money transfer to payments, insurance and banking. Toss said Friday that Viva Republica will acquire a 60-percent stake in VCNC, whic

Oct 8, 2021By Lee Kyung-min
Toss to acquire 60-percent stake in ride-hailing service provider Tada
Economy

Short-selling system still leaves retail investors at a disadvantage

gettyimagesbankBy Anna J. ParkFollowing the resumption of short-selling on local stock markets in May, the trading system is once again being largely dominated by foreign investors. Kim Han-jung, a two-term lawmaker of the ruling Democratic Party of Korea, stated that the system still presented an uneven playing field, calling for the financial authorities to curtail the current unlimited borrowing periods for foreign investors to 60 days, the same as that for retail investors. He also asked them to come up with fundamental measures to improve the system for the sake of a sounder and healthier development of the local stock markets.According to the latest figures by the Financial Services Commission (FSC), retail investors only accounted for about 1.9 percent of short-selling transactions, while foreign investors accounted for 76 percent of them. Since the resumption of the system in May, after a yearlong temporary ban due to the shock from the COVID-19 pandemic, foreigner investors have disposed of 46.5 trillion won ($39 billion) worth of local stocks through short-selling. This rep

Oct 8, 2021By Anna J. Park
Short-selling system still leaves retail investors at a disadvantage
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