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  • Economy

    Gov't wary of chip boom liquidity spilling into housing market

    Policymakers are growing increasingly concerned that a wave of liquidity generated by the ongoing semiconductor boom could spill over into Korea's already overheated housing market, fueled by record-high bonus payouts and low-interest employee loans at Samsung Electronics and SK hynix. Industry estimates suggest that bonus payouts and employee housing loan programs at the two chipmakers could unleash as much as 53 trillion won ($34.6 billion) in liquidity by next year, raising worries about further pressure on the housing market. The figure includes about 23 trillion won in bonus-related cash and more than 30 trillion won in low-interest housing loans available to employees. The estimates come as both companies prepare to roll out large bonus packages driven by the global artificial intelligence-driven semiconductor boom. SK hynix, which allocates 10 percent of its annual operating profit to employee bonuses, is expected to set aside about 26 trillion won for incentive payments based on forecasts that it will post an operating profit of 260 trillion won this year. The company also offers

    3 MIN READBy Lee Hyo-jin
    Gov't wary of chip boom liquidity spilling into housing market
  • Policy

    Contribution2025 Economic Census to elevate Korea's industrial mapping

    2 MIN READBy Ahn Hyung-jun
    2025 Economic Census to elevate Korea's industrial mapping
  • 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
  • Policy

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

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

Hana's meal box campaign

Hana Financial Group Chairman Kim Jung-tai, right, poses with Oh Seung-rok, head of Nowon District Office, after signing a partnership over the so-called “meal box campaign,” at the district office in Seoul, Monday. Under the campaign, Hana plans to provide special meal boxes to a total of 500 vulnerable households in three districts ― including Nowon ― in the capital city until the end of June 2022. Courtesy of Hana Financial Group

Sep 13, 2021By Lee Min-hyung
Hana's meal box campaign
Economy

Exports rise 31% in first 10 days of September

gettyimagesbankSouth Korea's exports rose 30.7 percent on-year in the first 10 days of September on the back of robust demand for petroleum products and autos, customs data showed Monday.The country's outbound shipments stood at $19.5 billion in the Sept. 1-10 period, compared with $14.9 billion a year earlier, according to the data from the Korea Customs Service.Imports soared 60.6 percent on-year to $21 billion, resulting in a trade deficit of $1.46 billion during the cited period, the data showed.By sector, outbound shipments of memory chips, a key export item, declined 2.1 percent on-year in the cited period. Exports of semiconductors rose for the 14th consecutive month in August on solid global demand.Semiconductors accounted for about 20 percent of exports by South Korea, home to Samsung Electronics Co., the world's largest memory chip maker, and its smaller rival SK Hynix.But exports of petroleum products soared 131.1 percent on-year in the first 10 days of September as oil prices rose amid the global economic recovery. Those of autos increased 46.8 percent despite global supp

Sep 13, 2021
Exports rise 31% in first 10 days of September
Economy

FSS in dilemma over court ruling favoring Woori CEO

The headquarters of the Financial Supervisory Service located on Yeouido, Seoul / Korea Times fileBy Anna J. ParkMarket watchers are closely paying attention to whether the Financial Supervisory Service (FSS) will decide to file an appeal with a higher court regarding a lower court trial that resulted in the annulment of the punishment imposed on Woori Financial Group CEO Son Tae-seung over the improper selling of high-risk derivative-linked funds (DLFs).The FSS has until Friday to file an appeal, after receiving the court ruling Sept. 3 ― an appeal must be filed within 14 days of the official receipt of a court verdict. The Seoul Administrative Court ruled in favor of Son, who brought the case against the FSS after he received a “reprimand” from the financial authority over Woori Financial Group's failure to set up internal control standards to prevent the mis-selling of DLFs. In early 2020, the FSS imposed the reprimand sanction, which is considered severe punishment, on Son. High-ranking officials at financial companies who receive such punishment should be terminated

Sep 12, 2021By Anna J. Park
FSS in dilemma over court ruling favoring Woori CEO
Economy

Kakao Mobility faces delay in IPO process

Kakao Mobility's minivans are parked in Seoul in this file photo. YonhapBy Park Jae-hyukKakao Mobility abruptly delayed the selection of an underwriter for its listing on the benchmark KOSPI market next year, amid growing concerns over the government's intensifying regulations on Kakao's overall businesses.The designated driver and taxi hailing services provider informed securities firms late Thursday of its intention to postpone the deadline for bidding to Sept. 17 from Sept. 10, citing its willingness to be more prudent about its initial public offering (IPO).Market observers attributed the sudden decision to the latest plunge in Kakao's share price, in the wake of the government's attempts to regulate online platform operators.Kakao is the largest shareholder of Kakao Mobility, with a 59.03-percent stake. The drop in the parent company's stock price therefore can have a significant impact on the subsidiary's valuation.After the government and the ruling Democratic Party of Korea announced their plans to monitor and regulate fintech platforms, in particular big tech companies, the

Sep 12, 2021By Park Jae-hyuk
Kakao Mobility faces delay in IPO process
Economy

Foreign hedge funds pose little threat to Hanssem, SK

Hanssem headquarters in Seoul / Courtesy of HanssemBy Park Jae-hyukRecent shareholder actions taken by foreign hedge funds against SK Chemicals and Hanssem are expected to have a limited impact on the market, considering domestic laws and responses by other investors.Teton Capital Partners, a Texas-based fund serving as Hanssem's second-largest shareholder with an 8.64 percent stake, filed an injunction with Suwon District Court earlier this month asking it to ban Hanssem founder Cho Chang-geol and four affiliated persons from helping IMM Private Equity conduct due diligence on the furniture maker before its takeover.Hanssem confirmed this Friday, a day after Lotte Shopping announced its decision to invest 299.5 billion won ($255 million) in a special purpose entity set up by IMM to acquire Hanssem.Teton has urged the furniture maker's largest shareholder not to provide the potential buyer with important information, such as licenses, assets and intellectual properties the company has, as well as major contracts it has signed.The U.S. firm is said to have particularly complained abou

Sep 12, 2021By Park Jae-hyuk
Foreign hedge funds pose little threat to Hanssem, SK
Economy

Korean firms' interim dividends surge to record high

This 2020 August file photo shows office buildings of Samsung Group in Seoul. YonhapSouth Korean listed companies' half-year dividends surged to a record high this year as their businesses posted strong performance, market data showed Sunday.A total of 62 local listed firms paid out 4.39 trillion won ($3.75 billion) in interim dividends in June, up 66.9 percent from a year earlier, according to the data from market tracker FnGuide.It marks the first time that listed companies' half-year dividends surpassed the 4 trillion-won mark.Half-year dividends from South Korean firms reached 3.18 trillion won in 2018 and expanded to 3.35 trillion won in 2019 but tumbled to 2.62 trillion won last year due to the COVID-19 pandemic. The number of interim dividend-paying firms also increased to 62 from 47 a year earlier.South Korea's top cap, Samsung Electronics, paid out 2.15 trillion won to account for nearly half of the total half-year dividends. Excluding Samsung Electronics, local firms' half-year dividends reached 2.23 trillion won, up 333 percent from a year ago. Ten firms have paid out at l

Sep 12, 2021
Korean firms' interim dividends surge to record high
Economy

FSC to look into insolvency risks before extending pandemic loan benefits

Financial Services Commission Chairman Koh Seung-beom, fourth from left, poses with leaders of major financial firms here, at the headquarters of the Korea Federation of Banks in Seoul, Friday. From left are Woori Financial Group Chairman Son Tae-seung, Hana Financial Group Chairman Kim Jung-tai, KB Financial Group Chairman Yoon Jong-kyoo, Shinhan Financial Group Chairman Cho Yong-byoung and NH Financial Group Chairman Son Byung-hwan. YonhapBy Lee Min-hyungFinancial Services Commission (FSC) Chairman Koh Seung-beom pledged Friday to consider “possible risk factors” before deciding to extend special loan benefits to self-employed and small business owners directly affected by the pandemic. The decision came during a meeting with the leaders of the nation's major financial firms.This is the first time that the new head of the financial watchdog has held an official meeting with the chairmen of KB, Shinhan, Hana, Woori and NH Financial Group since he took office, Aug. 31.The top item on the agenda was whether to extend the deadline for the special financial program under whi

Sep 10, 2021By Lee Min-hyung
FSC to look into insolvency risks before extending pandemic loan benefits
Economy

Delta variant leads to protracted tightening of private consumption

gettyimagesbank Slower-than-expected US growth to affect BOK rate hike By Lee Kyung-min Tightened private spending sparked by an increase in COVID-19 infections by the Delta variant is expected to continue throughout the latter half of the year, adding pressure on the Bank of Korea to refrain from a further key rate hike. The renewed dilemma will be further compounded by slower-than-expected U.S. economic growth as indicated by the assessment in the U.S. Federal Reserve's latest Beige Book report.Korea has been relatively insulated from the health crisis, due chiefly to containment efforts and high public participation as illustrated by the number of people wearing face masks in public places. But the spread of the highly-infectious Delta variant has prompted health officials to retain the highest Level 4 social distancing measures. Small businesses in the services industries, including those subject to gathering bans, meanwhile, are edging closer to bankruptcy and

Sep 10, 2021By Lee Kyung-min
Delta variant leads to protracted tightening of private consumption
Economy

Finance ministry calls for overhaul of educational subsidies

Deputy Prime Minister and Finance Minister Hong Nam-ki. Korea Times file By Lee Kyung-min The Ministry of Strategy and Finance said a program offering educational subsidies should be revised to reduce revenue from taxes allocated to local governments, since the number of students in Korea is on a rapid decline due to the country's persistently-low birthrate.The recommendation coincides with a deterioration of the government's fiscal soundness brought on and exacerbated by the COVID-19 pandemic. The government has drafted 115 trillion won ($98 billion) over the course of six supplementary budgets since the beginning of the pandemic, mostly for emergency policy and cash assistance for low-income earners and small businesses.A ministry official published an opinion in a monthly report on the government's fiscal plan, Thursday, underscoring the urgent need to redesign the overall educational financing grant system in response to changing demographics.This is in line with

Sep 10, 2021By Lee Kyung-min
Finance ministry calls for overhaul of educational subsidies
Economy

Infrastructure ministry to help Paraguay upgrade light rail transit system

Minister of Land, Infrastructure and Transport Noh Hyeong-ouk, right, does a fist bump with his Paraguayan counterpart Arnoldo Wiens Durksen, after signing a memorandum of understanding (MOU) at the Conrad Seoul, Yeouido, Thursday. Courtesy of Ministry of Land, Infrastructure and TransportBy Lee Kyung-min A consortium of public and private companies led by the Ministry of Land, Infrastructure and Transport will help Paraguay renovate its light rail transit system. The ministry said Thursday that the five-year, $500 million (585 billion won) construction project will create seven stations and one rail depot along the 43 kilometer route connecting the country's capital Asuncion and Ypacarai, a nearby suburb. The partnership will undertake the operation of the transit for 30 years. Land Minister Noh Hyeong-ouk signed a memorandum of understanding (MOU) with his Paraguayan counterpart, Arnoldo Wiens Durksen, minister of public works and communications, at the Conrad Seoul on Yeouido. The Asuncion Light Rail Transit Project will be participated in by the Korea Overseas Infrastructure &am

Sep 9, 2021By Lee Kyung-min
Infrastructure ministry to help Paraguay upgrade light rail transit system
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