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Economy

Korea's August exports jump 68.7% to $98.25 bil. on strong chip demand

Korea's exports surged 68.7 percent in August from a year earlier, buoyed by strong semiconductor shipments, data showed Tuesday. Outbound shipments came to $98.25 billion in August, according to the Ministry of Trade, Industry and Resources. Imports climbed 22.6 percent on-year to $63.51 billion, resulting in a trade surplus of $34.75 billion. By sector, semiconductor exports, a key pillar of Asia's fourth-largest economy, soared 209 percent during the period to $46.65 billion, as major technology companies known as hyperscalers, including Google and Amazon, stepped up spending on artificial intelligence (AI) infrastructure. Semiconductor exports topped $40 billion for a third consecutive month. Exports of petroleum products jumped 65.3 percent to $6.84 billion, while those of petrochemical products rose 12.2 percent to $3.86 billion. Automobile exports, however, fell 29.8 percent to $3.85 billion, hit by fewer working days during the summer holiday season and production disruptions caused by partial strikes over wage increases. By destination, exports to China shot up 119.3 percent to $24

Sep 1, 2026By Yonhap
Korea's August exports jump 68.7% to $98.25 bil. on strong chip demand
Economy

KOSPI reverses losses as Samsung, SK hynix buybacks lift sentiment

The benchmark KOSPI rebounded from a steep opening drop to close higher, Monday, as share buybacks by Samsung Electronics and SK hynix lifted the index amid concerns over a potential U.S. interest rate hike in September. The won continued to strengthen, closing in the 1,360-won range against the dollar for the first time in 13 months. The KOSPI closed at 6,820.02, up 0.46 percent from the previous session. The index opened 2.58 percent lower but gained momentum as large-cap stocks rebounded broadly in afternoon trading. Foreign investors sold a net 640 billion won ($467 million) worth of shares, while institutions offloaded a net 793 billion won. Retail investors were also net sellers, unloading 144 billion won. Corporate investors net purchased 1.57 trillion won, absorbing much of the selling pressure. They extended their net-buying streak on the KOSPI to nine sessions. The buying has been supported by share repurchases from major companies, with Samsung Electronics starting a buyback on Aug. 24 as part of an employee compensation program and SK hynix purchasing about 700 billion won to

Aug 31, 2026By Lee Yeon-woo
KOSPI reverses losses as Samsung, SK hynix buybacks lift sentiment
Economy

COVER STORY Lee bets on same economic playbook despite Cabinet reshuffle

President Lee Jae Myung is betting on the same economic playbook despite his Cabinet reshuffle, with career bureaucrats tapped to lead the ministries overseeing economic and housing policies, analysts said Monday. Lee on Sunday nominated Lee Hyoung-il, currently the first vice finance minister, for finance minister, and Hong Jee-sun, currently the second vice minister of land, infrastructure and transport, to lead the ministry. The two were among six ministerial nominees announced in the reshuffle. The changes come as both economic and housing policies have faced growing public criticism. The departures of Finance Minister Koo Yun-cheol and Land Minister Kim Yun-duk were widely viewed as dismissals, with public sentiment turning against the Lee administration following the tax reform package and housing supply plans unveiled earlier this month. However, the president's choice of replacements suggests that he is seeking to reinforce rather than overhaul his policy direction. "The reshuffle of the economic policy team is about maintaining policy continuity while delivering tangible results,

Aug 31, 2026By Lee Hyo-jin
[COVER STORY] Lee bets on same economic playbook despite Cabinet reshuffle
Economy

Tax revenue up $6 bil. in July on higher wages, brisk stock trading

Korea's tax revenue rose by 8.4 trillion won ($6 billion) in July from a year earlier on higher collections of income and securities transaction taxes, data showed Monday. The government collected 51 trillion won in taxes last month, according to the Ministry of Finance and Economy. Income tax revenue rose by 1.8 trillion won to 13.6 trillion won. The finance ministry attributed the increase partly to higher wages and increased housing transactions. The country's bullish securities markets also contributed to the growth, with securities transaction tax collection rising by 1.1 trillion won to 1.4 trillion won. Value-added tax revenue increased by 3.2 trillion won to 24.6 trillion won due to growth in imports. For the January-July period, Seoul's tax earnings came to 274 trillion won, up a sharp 41.4 trillion won from a year earlier.

Aug 31, 2026By Yonhap
Tax revenue up $6 bil. in July on higher wages, brisk stock trading
Economy

Seoul shares trim losses late Monday morning amid tech sell-off

Seoul shares trimmed earlier losses late Monday morning on retail buying, as hawkish comments from Federal Reserve Chair Kevin Warsh raised concerns over a possible interest rate hike next month. After opening 2.58 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) erased its losses, trading 133.62 points, or 1.96 percent, lower at 6,655.62 as of 11:20 a.m. Institutions and foreign investors sold a net 633.74 billion won ($460 million) and 474.72 billion won worth of stocks, respectively, while retail investors bought a net 502.09 billion won. In his first major speech since taking the helm of the Fed, Warsh warned that inflation is not slowing meaningfully, leaving the door open to further rate hikes at the annual Jackson Hole symposium in Wyoming on Friday. In addition to heightened bets on a U.S. rate hike, investors remained on alert amid escalating tensions in the Middle East following renewed U.S. strikes in the Strait of Hormuz. On Friday (U.S. time), the Dow Jones Industrial Average fell 0.02 percent, while the tech-heavy Nasdaq Composite declined 0.52 percent.

Aug 31, 2026By Yonhap
Seoul shares trim losses late Monday morning amid tech sell-off
Economy

Industrial output flat in July; retail sales down, facility investment up

Korea's industrial output remained flat in July from a month earlier, data showed Monday, with retail sales losing ground, while facility investment advanced. Industrial production remained unchanged in July from a month earlier, according to data from the Ministry of Data and Statistics. Output in the mining and manufacturing sector, a key pillar of the economy, edged up 0.2 percent on the back of the electronic component segment. The output in the automobile industry, on the other hand, fell 4.5 percent. Retail sales, a gauge of private spending, backtracked 2.4 percent over the period, led mostly by durable goods, including cars. Facility investment shot up 7.5 percent in July from a month earlier, the latest findings showed.

Aug 31, 2026By Yonhap
Industrial output flat in July; retail sales down, facility investment up
Economy

Korea's $20 bil. US investment unlikely to pressure won: BOK chief

Korea's planned annual investment of up to $20 billion in the United States is unlikely to put pressure on the won, as the local currency has become more resilient to external shocks, Bank of Korea (BOK) Gov. Shin Hyun-song said. Speaking to reporters on the sidelines of the Jackson Hole Economic Policy Symposium in Wyoming on Friday (local time), Shin said the size of the investment was manageable, given Korea's foreign exchange reserves. "The memorandum of understanding says Korea will invest up to $20 billion annually in the U.S. While the investment could reach $20 billion, we could invest less, depending on the circumstances," Shin was quoted as saying in response to a question about whether the planned investment could put pressure on the won. Seoul's commitment to invest up to $20 billion annually is part of a larger $350 billion investment framework with Washington in exchange for lower tariffs. But concerns have emerged that the investment commitment could put additional pressure on the foreign exchange market by increasing demand for dollars, particularly if the won remains wea

Aug 30, 2026By Lee Hyo-jin
Korea's $20 bil. US investment unlikely to pressure won: BOK chief
Economy

Household, self-employed debt raises alarm as BOK lifts key rate to 3%

The Bank of Korea's (BOK) recent decision to raise its policy rate to 3 percent is increasing concerns over the financial stability of already vulnerable borrowers, including the self-employed, analysts said Sunday. Delinquency rates have climbed to record highs, while total household debt has surpassed 2,000 trillion won ($1.45 trillion) for the first time. With a large share of these loans carrying variable rates, higher borrowing costs could put further strain on vulnerable borrowers and increase the risk of defaults. The central bank raised its benchmark rate by 0.25 percentage points to 3 percent at Thursday's policy meeting, marking the second consecutive hike following its July increase. The impact is likely to be particularly burdensome for self-employed borrowers, as both outstanding debt and delinquent loans have reached record highs, while delinquency rates have climbed to alarming levels, raising concerns that the rate hike could further increase their interest burden and the risk of defaults. "My loan interest rate is already at 6 percent, and it looks like it could go even

Aug 30, 2026By Lee Hyo-jin
Household, self-employed debt raises alarm as BOK lifts key rate to 3%
Economy

SME biz sentiment up for 2nd month for Sept. but still below par

Korean smaller companies' business outlook rose for the second consecutive month for September but still remains below par, a poll showed Sunday. The survey of 3,060 small and midsized enterprises (SMEs) said the small business health index (SBHI) came to 84.8 for next month, up 4.8 points from August, according to the Korea Federation of SMEs. The index rose for two straight months since it reached 80 for August from 78.2. A reading below 100 indicates pessimists outnumber optimists. According to the findings, the SBHI for the manufacturing sector came to 87.1 for September, up 7 points from the prior month, with that for nonmanufacturing companies rising by 3.7 points to 83.7. More than 50 percent of the respondents cited sluggish sales as the biggest hurdle to their management, followed by rising raw material costs at 41 percent and cutthroat competition making up 31.4 percent. High labor costs was another factor causing concerns at 27.8 percent. The average capacity utilization rate of manufacturing SMEs came to 75.2 percent in July, down 0.7 percentage point from the previous month, a

Aug 30, 2026By Yonhap
SME biz sentiment up for 2nd month for Sept. but still below par
Others

Finance minister resumes G20 trip after brief cancellation amid Cabinet reshuffle

Finance Minister Koo Yun-cheol, who was included in President Lee Jae Myung’s Cabinet shuffle on Sunday, departed for the United States to attend a meeting of Group of 20 finance ministers and central bank governors as originally planned after briefly canceling his trip, according to the ministry. “Koo departed as scheduled Sunday morning to attend the G20 gathering in Asheville, North Carolina, which runs Monday through Tuesday,” a ministry official said. Koo initially called off his U.S. trip after learning that he was set to be replaced in the Cabinet shuffle upon arriving at Incheon International Airport earlier in the day. Several hours later, the presidential office announced the Cabinet changes, with Lee nominating incumbent First Vice Minister Lee Hyoung-il as the new finance minister, among other appointments. Koo, however, reversed his decision and opted to make the trip as planned, given that he is expected to remain in office for about another month while his successor goes through a parliamentary confirmation hearing and formal appointment process. Another consideration

Aug 30, 2026By Jun Ji-hye
Finance minister resumes G20 trip after brief cancellation amid Cabinet reshuffle
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