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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
  • 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 sharply up late Monday morning amid uncertainty over US-Iran talks

    1 MIN READBy Yonhap
    Seoul shares sharply up late Monday morning amid uncertainty over US-Iran talks
  • 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
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Economy

Interpark shares plunge as selloff hits snag

Interpark website's main page captured / Courtesy of InterparkBy Anna J. ParkInterpark's stock price nosedived on Wednesday, as investors dumped shares in response to major firms dropping their bids for its acquisition. The e-commerce platform company's share price finished at 8,390 won ($7.25), a 12.51 percent fall from the previous day. Market watchers hoped one of the potential buyers ― Yanolja, Kakao or Naver ― could have participated in the bidding for Interpark's acquisition. These big names are said to have received an information memorandum (IM) distributed by NH Investment & Securities, the main underwriter of the sale.The share price, which had skyrocketed recently on expectations for the acquisition deal, fell by more than 16 percent in just two trading sessions. The main reason behind the abandoned bidding process is considered to be questions about the sustainability of Interpark's key business models ― performance reservations and travel booking ― amid the spread of the Delta variant of the coronavirus. Another reason for the lukewarm responses from potential bidder

Sep 1, 2021By Anna J. Park
Interpark shares plunge as selloff hits snag
Economy

Exports grow for 10th month in August on solid sales of chips, autos

gettyimagesbankSouth Korea's exports have extended their gains to 10 months, jumping 35 percent on the back of robust demand for chips and automobiles, and underpinning recovery momentum in Asia's fourth-largest economy, data showed Wednesday.Outbound shipments came to $53.2 billion last month, according to the data compiled by the Ministry of Trade, Industry and Energy.Imports climbed 44 percent to $51.5 billion, resulting in a trade surplus of $1.67 billion. It marked the 16th consecutive month for the country to post a trade surplus.The August exports came in line with what the market had been expecting.According to a poll by Yonhap Infomax, the financial arm of Yonhap News Agency, the country's August exports were expected to have risen 34.5 percent on-year.The cumulative exports in the first eight months came to $411.9 billion.Chips led the overall gains, advancing 43 percent over the period to reach $11.7 billion.Overseas sales of automobiles moved up 17 percent on-year to hit $3 billion in August, and those of auto parts jumped 22.4 percent to $1.58 billion over the cited peri

Sep 1, 2021
Exports grow for 10th month in August on solid sales of chips, autos
Economy

Record 2022 budget to raise national debt to W1,068 tril.

Finance minister denies inconsistency between fiscal, monetary policiesBy Park Jae-hyukKorea's national debt will surpass 1,000 trillion won ($862 billion) next year for the first time in history, as the government's annual spending will go up 8.3 percent year-on-year to the record-high 604.4 trillion won in 2022.The Ministry of Economy and Finance announced Tuesday that the national debt will reach 1,068 trillion won next year, or 50.2 percent of the GDP. In other words, each Korean citizen will be burdened with more than 20 million won debt.The ministry's blueprint for its fiscal management between 2021 and 2025 showed that the national debt will even exceed 1,408 trillion won in 2025, or 58.8 percent of the GDP, despite its plan to cap its spending increases at 5 percent starting in 2023.Such a medium-term plan has raised criticism that the Moon administration is attempting to shift its responsibility for deteriorated fiscal soundness onto the next government.Deputy Prime Minister and Finance Minister Hong Nam-ki announces the government's budget for 2022 and fiscal management pla

Aug 31, 2021By Park Jae-hyuk
Record 2022 budget to raise national debt to W1,068 tril.
Economy

4th coronavirus wave sending shudders through Korean economy

Eoh Un-seon, a Statistics Korea official, gives a briefing on the country's industrial output trends in July at the government complex in Sejong, Tuesday. YonhapIndustrial output, retail sales decline amid Delta variant spreadBy Yi Whan-wooRepercussions from the continued spread of the Delta variant of the coronavirus have begun rippling across the Korean economy, with key economic indicators, such as industrial output and retail sales, turning downward. This situation suggests that the country's economic recovery will be dampened by the Delta variant-driven, fourth wave of COVID-19 cases, and that its growth may fall short of reaching the previously forecast 4-percent mark.According to data released by Statistics Korea, Tuesday, industrial output fell 0.5 percent in July from the previous month, while retail sales pulled back 0.6 percent during the same time period.These drops amount to a setback from month-on-month gains in June, when industrial output rose by 1.6 percent and retail sales improved by 1.4 percent. The June data did not reflect the estimated effects from the spread o

Aug 31, 2021By Yi Whan-woo
4th coronavirus wave sending shudders through Korean economy
Economy

FSC chief vows to rationalize cryptocurrency market

FSC chief Koh Seung-beom is seen attending a weekly on-and-off Cabinet meeting at the Central Government Complex, downtown Seoul, Tuesday. YonhapBy Kim Yoo-chulFinancial Service Commission (FSC) Chairman Koh Seung-beom has reiterated his rather hawkish stance regarding the validity of crypto assets.Koh, on his first day as the commission chief, Tuesday said with regard to crypto assets, “this is not an issue that can be avoided or delayed. It's quite necessary to minimize the estimated impact on the market players invested in cryptocurrencies. FSC will try to share any updates on the matter with the market.”President Moon Jae-in approved Koh to lead the FSC, the country's top financial policy regulator. Koh, a former member of the Bank of Korea (BOK)'s monetary policy board, was confirmed in the National Assembly's confirmation hearing last week.Koh's assessment of cryptocurrencies is in sync with the regulator's aim to rationalize the cryptocurrency market, as both the BOK and FSC don't view crypto-assets as financial assets, since the value of many crypto-assets isn't t

Aug 31, 2021By Kim Yoo-chul
FSC chief vows to rationalize cryptocurrency market
Economy

ANALYSIS Regulators urged to lower bar to stimulate IMA market

gettyimagesbank8 tril. won entry bar for IMA market hinders IB growth By Anna J. ParkIn the over seven decades of the country's brokerage industry history, Mirae Asset Securities has become the first brokerage company with more than 10 trillion won ($8.5 billion) of owned capital. The firm's proprietary capital size exceeded 10.04 trillion won as of the end of the second quarter this year, the largest among local brokerage companies. The company, launched in 1999 with 50 billion won of capital, has grown 200 times since.Korea Investment & Securities, as well as NH Investment, are chasing Mirae Asset's lead, as both companies' owned capital exceeded the 6 trillion won mark at the end of the second quarter. Other firms, such as Hana and Kiwoom, have also been expanding their proprietary capital aggressively through needs-based capital increases over the past couple of years. Hana Financial Investment recently entered into the stage of having owned over 5 trillion won ii capital, while Kiwoom is also nearing the 4 trillion won mark.This scaling up of local brokerage companies is pro

Aug 31, 2021By Anna J. Park
[ANALYSIS] Regulators urged to lower bar to stimulate IMA market
Economy

Korea vows to create ecosystem for bio, chips, future vehicles

Deputy Prime Minister and Finance Minister Hong Nam-ki, second from right, speaks during a meeting at the Seoul Government Complex at Gwanghwamun, Monday. YonhapW6.3 tril. to be invested in 'Big 3' growth driversBy Lee Kyung-minThe government will invest over 6.3 trillion won ($5.4 billion) next year to foster the advancement of future vehicles, bio healthcare and semiconductors ― the three key future growth drivers hoped to underpin the economy, the country's top policymaker said Monday.The 43 percent year-on-year increase in investment aims to sharpen the country's competitive edge on the global stage where the three sectors are increasingly emerging as vital, long-term national security interests.Deputy Prime Minister and Finance Minister Hong Nam-ki said that the government will spare no efforts in assisting the three industries, anchoring confidence from businesses to bolster predictability and sustainability in making key investment decisions. “The government will provide support to strengthen fiscal, tax, financial and institutional support for the crucial industries to

Aug 30, 2021By Lee Kyung-min
Korea vows to create ecosystem for bio, chips, future vehicles
Economy

ANALYSIS Raw material price increases could burden Korea's economy

Containers are piled up for overseas shipment at a port in Busan in this undated photo. gettyimagesbankExporters suffer net loss amid sales increaseBy Yi Whan-wooRising raw material prices are putting pressure on businesses in Korea, although the country's private and industrial sectors have been showing signs of a steady recovery from the early effects of the COVID-19 pandemic.Analysts and economists said Monday the estimated economic impact of the surging raw material prices would be limited mostly thanks to increased performances of the country's major exporters. Korea's economy is export-driven and the global surge in commodity prices could result in rising manufacturing costs, which may in turn weaken exporters' price competitiveness. Higher commodity prices have lifted the profits of some companies, but they also stand to increase the costs for downstream businesses further along the supply chain.The average price of crude oil has been rising for four straight months, from $62.95 per barrel in April to $73.28 per barrel in July, according to the World Bank's latest data release

Aug 30, 2021By Yi Whan-woo
[ANALYSIS] Raw material price increases could burden Korea's economy
Economy

Korea to dole out cash handouts to ordinary people next week

This Aug. 2 file photo shows a sign about the use of emergency cash handouts at a store in a traditional market in Jongro District, Seoul. YonhapSouth Korea said Monday it will begin providing emergency relief funds to people in the bottom 88 percent income bracket next week in the latest move to help them cope with the fallout from the pandemic.The government will begin to provide up to 250,000 won ($215) per recipient on Sept. 6 as part of an 11 trillion-won cash handout program, according to the interior and finance ministries. The money must be spent by end-December.In July, the country drew up an extra budget of 34.9 trillion won, the second of its kind this year, to finance another round of relief funds to support pandemic-hit small merchants and most other people.In May last year, the country doled out 14.3 trillion won in relief funds to all households to help them tackle the economic headwinds from the COVID-19 pandemic.The government earlier said it will provide relief aid to ordinary people before the Chuseok holiday scheduled for Sept. 20-22, a move aimed at spurring spen

Aug 30, 2021
Korea to dole out cash handouts to ordinary people next week
Economy

Discrepancy emerges between fiscal and monetary policies

Deputy Prime Minister and Finance Minister Hong Nam-ki, left, and Bank of Korea Governor Lee Ju-yeol speak with participants in a meeting at the Korea Federation of Banks headquarters in Seoul in this February file photo. Joint Press CorpsBy Park Jae-hyukControversy is growing over what some call a discrepancy between the nation's fiscal and monetary policies, after the central bank raised the key interest rate last week, despite the government's plan to increase its expenditures next year.According to the Ministry of Economy and Finance, the government has decided to continue its expansionary fiscal policies, with the record-high annual state budget of 605 trillion won ($520 billion) for 2022. The amount is even larger than the sum of this year's regular budget of 558 trillion won and the two rounds of supplementary budget, collectively worth 46 trillion won.Before the Chuseok long weekend in September, a 250,000 won ($215) disaster relief stimulus will be distributed to 88 percent of the population, as part of the government's efforts to support the economic recovery of needy house

Aug 30, 2021By Park Jae-hyuk
Discrepancy emerges between fiscal and monetary policies
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