my timesThe Korea Times

Economy

PolicyCryptocurrencyOthers
  • 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
  • Economy

    Exports up 60% in first 20 days of June on robust chip sales

    1 MIN READBy Yonhap
    Exports up 60% in first 20 days of June on robust chip sales
  • Economy

    Seoul shares open lower amid Iran peace talks uncertainty

    1 MIN READBy Yonhap
    Seoul shares open lower amid Iran peace talks uncertainty
  • Economy

    KEPCO to keep electricity rates frozen for Q3 amid financial troubles

    1 MIN READBy Yonhap
    KEPCO to keep electricity rates frozen for Q3 amid financial troubles
  • 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
Korea Times
About Us
Introduction
History
Contact Us
Products & Services
Subscribe
E-paper
RSS Service
Content Sales
Site Map
Policy
Code of Ethics
Ombudsman
Privacy Policy
Youth Protection Policy
Terms of Service
Copyright Policy
Family Site
Hankookilbo
Dongwha Group
FacebookXYoutubeInstagram
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.

Read more

Economy

Reporter's Notebook Finance minister and fiscal soundness

Deputy Prime Minister and Finance Minister Hong Nam-ki attends the National Assembly's Special Committee on Budget and Accounts, Tuesday. YonhapBy Lee Kyung-min No one seems to be in a tighter bind than Deputy Prime Minister and Finance Minister Hong Nam-ki in a country where meddling by politicians in economic policies is increasing immeasurably and shamelessly at the expense of fiscal soundness. Hong said the country's fiscal soundness is in a “robust” condition during a session of the National Assembly Special Committee on Budget and Accounts, Tuesday, less than a day after he expressed concern that the country's treasury was “emptying fast.”Monday's comment came in response to a question from a ruling party lawmaker who criticized the finance ministry's reluctance to increase fiscal spending at a faster pace amid the fourth wave of the COVID-19 pandemic triggered by the Delta variant. “What good is any of the treasury if It cannot be used when people are suffering? Explain why you think the treasury should stockpile. You should reflect on whether the

Sep 8, 2021By Lee Kyung-min
[Reporter's Notebook] Finance minister and fiscal soundness
Economy

Crowdfunding for art purchases emerging as new investment strategy

Crowdfunding, NFT allow young generations to enter market regardless of incomeBy Yi Whan-woo“$ (Quadrant),” a screen print of four stylized dollar signs created by internationally-acclaimed pop artist Andy Warhol in the 1980s, is worth hundreds of thousands of dollars ― way more than an average office worker could afford. But it could be possible if people pool funds together that can eventually grow large enough to buy such a piece. This kind of “crowdfunding” campaign is increasingly being witnessed in the art market, along with other new investment strategies that allow a large number of people to participate regardless of their income level.The new means of investment are found both offline and online including purchase of non-fungible tokens (NFTs).NFTs are digital assets that rely on blockchain technology to verify ownership as real-world items, and include artwork.The emerging investment trend, according to market observers, is heavily associated with the lifestyle and financial situation of some of th

Sep 7, 2021By Yi Whan-woo
Crowdfunding for art purchases emerging as new investment strategy
Economy

ANALYSIS Korean conglomerates lukewarm on venture M&As

gettyimagesbankLack of promising Korean ventures cited as core factor for top conglomerates inactivity on local M&As By Anna J. ParkKorea's M&A market has nearly quadrupled during the past two decades, as the average yearly number of such deals exceeded about 430 in 2020, compared to 102 logged in 2000. The market size increased to about 50 trillion won ($43 billion) last year, nearly four times that of 13.1 trillion won in 2000.However, the market has dwindled during recent years after reaching an all-time high market value of 60 trillion won in 2018. The squeeze is partly due to a weakened investment sentiment with the global pandemic shock incurred in 2020, when the number of M&As stood at 436. About 60 percent of the M&As completed last year were led by the nation's conglomerates. According to the latest statistics announced by the Financial Service Commission (FSC), the country's top financial policy regulator, local market conditions seem to have improved this year, as both the number of M&As as well as the market size have jumped during the first half of th

Sep 7, 2021By Anna J. Park
[ANALYSIS] Korean conglomerates lukewarm on venture M&As
Economy

Ex-vice finance minister seen as threat to central bank's autonomy

Former Vice Minister of Economy and Finance Kim Yong-beom speaks during a meeting at the Korea Federation of Banks headquarters in Seoul in this March file photo. Courtesy of Ministry of Economy and FinanceBOK union asks governor to guarantee autonomy from gov'tBy Park Jae-hyukThe possible appointment of Kim Yong-beom, former vice minister of economy and finance, as a new member of the Bank of Korea's (BOK) monetary policy board has reignited a long-standing controversy over the central bank's autonomy from the government.Since Koh Seung-beom left the board last month after being appointed as chairman of the Financial Services Commission (FSC), Kim has been viewed as the most likely successor to be recommended by BOK Governor Lee Ju-yeol. Speculation has been backed by the fact that the central bank chief worked well with the government when Koh was serving as a board member. Both Kim and Koh have spent most of their careers at the finance ministry and the FSC.The BOK union, however, expressed concerns over the government's growing influence on the central bank, crying foul over the

Sep 7, 2021By Park Jae-hyuk
Ex-vice finance minister seen as threat to central bank's autonomy
Economy

Contribution Cost of raising benchmark interest rate

Hwang Sei-woon, Senior Research Fellow at Korea Capital Market InstituteBy Hwang Sei-woon The Bank of Korea raised its benchmark interest rate by 0.25% to 0.75 percent from its historically low 0.5 percent in August 26. One of the main purposes of the central bank raising the benchmark interest rate is to control inflation. However, the purpose of this base rate hike seems to be more clearly aimed at curbing the surge in household debt and controlling the risk of a bubble in asset prices rather than concerns about inflation.Central banks have traditionally emphasized their role as inflation fighters. Since the 1970s, which witnessed high inflation along with two bouts of stagflation, global central banks have clearly experienced the need to control inflation. If an economy loses control over inflation, it becomes very difficult to take advantage of both fiscal and monetary policies in response to the business cycle. In a situation where the inflation rate has risen, even if an attempt is made to stimulate the economy to respond to the economic downturn, the inflation rate easily rise

Sep 7, 2021
[Contribution] Cost of raising benchmark interest rate
Economy

Role of procurement agency highlighted amid pandemic

Choi Chan-moBy Lee Kyung-minAs the government is attempting to speed up its COVID-19 vaccination campaign, the intensity of the countrywide initiative has been dogged by vaccine shortages due to shipment delays.Guaranteeing the availability of vaccine stocks, the timing of vaccine deliveries and the number of doses possibly being wasted at each stage of the supply chain are considered top concerns. From that standpoint, efforts by a government official to support the country's vaccination program by procuring a substantial amount of Low Dead Space (LDS) syringes have been highlighted.LDS syringes are customized to minimize the amount of wasted vaccines, allowing them to be administered to more people faster.In a written interview with The Korea Times, Choi Chan-mo, head of the Training Planning Team at the Public Procurement Training Institute, said he was grateful for the opportunity to quickly procure a large number of LDS syringes to help accelerate vaccination efforts amid the COVID-19 pandemic.“Project LDS,” led by Choi and an eight-member taskforce set up at the Nor

Sep 7, 2021By Lee Kyung-min
Role of procurement agency highlighted amid pandemic
Economy

Won strengthens on weaker US job market, delayed tapering concerns

An electric trading board shows the KOSPI lowering to 3,197.20 at a branch of Hana Bank, Monday. The benchmark index closed at 3,203.33, up 2.27 points, or 0.07 percent from the previous session. Yonhap 'Korean currency to continue gain for the time being, unless impeded by sudden external shocks' By Lee Kyung-min The Korean won gained slightly against the U.S. dollar on the back of weaker-than-expected American jobs data, coupled with mitigated tapering risks by the U.S. Federal Reserve (Fed).The currency hovered in the range of 1,155 won and 1,159 won as of mid-Monday, before ending at 1,1560.50 won, up from the previous session.Whether or not the uptrend will be sustained will hinge on foreign investors' demand, the continuation of which will lead to the currency strengthening to a level higher than 1,150 won.Also to be monitored is how the safe global reserve currency will fare against other volatile asset classes recently gaining traction, as indicated by a rec

Sep 6, 2021By Lee Kyung-min
Won strengthens on weaker US job market, delayed tapering concerns
Economy

Hahn & Co. stays out of SK ecoplant deal, despite close relations

SK ecoplant's logoBy Park Jae-hyukHahn & Company is not expected to participate in a bid to acquire parts of SK ecoplant's plant construction division, despite the private equity firm's (PEF) solid relationship with SK Group, according to industry sources, Monday.Instead, a consortium of Ium Private Equity and Mirae Asset Global Investments has been mentioned as the strongest candidate to take over the builder's chemical engineering and thermal power plant businesses, for about 500 billion won ($432 million).Since the construction unit of SK Group first hinted at its intention to sell those businesses by confirming earlier this month that it is considering spinning some of its businesses off, Hahn & Company had been initially regarded as a potential buyer, considering a series of transactions it made previously with SK affiliates.Sources familiar with this issue, however, said that Hahn & Company is actually not interested in the deal, while the Ium-led consortium is about to reach an agreement with SK ecoplant.SK ecoplant is said to be holding a board meeting next month

Sep 6, 2021By Park Jae-hyuk
Hahn & Co. stays out of SK ecoplant deal, despite close relations
Economy

Goldman Sachs, Societe Generale, CLSA silent on FSS sanctions

An entry to the Financial Supervisory Service headquarters in Seoul / Korea Times fileKorean 'market makers' cry foul over heavy penaltiesBy Park Jae-hyukGoldman Sachs, Societe Generale and CLSA have remained cautious about the Financial Supervisory Service's (FSS) prior notification of its plan to slap a combined 48 billion won ($41 million) fine on them and six Korean securities firms for allegedly disrupting the market. Their muted stance was in contrast to the local brokerages, which have already begun to take preemptive measures to avoid the heavy sanctions.“We are aware of the issue,” a CLSA official said Monday. “As the final decision on the sanctions has not been made, we have nothing to say at this moment.”Goldman Sachs declined to comment on the issue, and Societe Generale has yet to respond to a request for comment on the matter.According to industry sources, the financial watchdog seeks to fine the nine “market makers,” suspecting that they manipulated stock prices on the tech-heavy Kosdaq market by excessively correcting or canceling t

Sep 6, 2021By Park Jae-hyuk
Goldman Sachs, Societe Generale, CLSA silent on FSS sanctions
Economy

KB Asset rolls out first blockchain investment fund

KB Asset Management logo / YonhapBy Anna J. ParkKB Asset Management launched the country's first blockchain-focused mutual investment fund, the “KB Global Digital Chain Economy” fund, Monday.Blockchain refers to a decentralized ledger technology that records the provenance of a digital asset, through which any data registered on blockchain cannot be modified. The transparent technology is currently in high demand particularly in payment industries, and its scope is continuing to expand to areas, including cloud service, cybersecurity and healthcare. The KB Asset fund is divided into three main investment areas. First, companies that produce blockchain-related hardware, such as CPUs and graphic cards, specifically companies such as Nvidia, AMD, Intel and Samsung Electronics. Secondly, key software companies that provide blockchain-based services to customers, including IBM, Amazon and Microsoft, and Asian big-tech companies Baidu and Fujitsu.And lastly, companies that actually apply blockchain technology to their current business model. These include PayPal, Visa, Square a

Sep 6, 2021By Anna J. Park
KB Asset rolls out first blockchain investment fund
previous page
787788789790791
next page

Most Read in Economy