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  • Economy

    Consumer sentiment rises for 2nd month in June on strong exports, stock rally

    Consumer sentiment rose for the second consecutive month in June on strong exports and the stock market rally, the central bank said Tuesday. The composite consumer sentiment index (CCSI) stood at 106.6 this month, up 0.5 points from May, according to a survey by the Bank of Korea (BOK). It followed a 6.9-point gain in May, the sharpest on-month rise in a year, rebounding from a two-month losing streak in March and April. The index also stayed over the 100-point mark for the second straight month. A reading above 100 indicates that optimists outnumber pessimists, while a figure below 100 suggests the opposite. The subindex for people's assessment of current economic conditions came in at 86 in June, up 3 points from a month earlier. The index for people's outlook for future economic conditions fell 1 point to 92 over the same period. "Despite slowing economic conditions stemming from rising inflation, solid exports and the stock market rally helped consumer sentiment rise for the second consecutive month," the BOK said. South Korea's exports jumped 60.4 percent from a year earlier in the fir

    1 MIN READBy Yonhap
    Consumer sentiment rises for 2nd month in June on strong exports, stock rally
  • Economy

    Corporate sales, profit growth accelerate in Q1: BOK

    1 MIN READBy Yonhap
    Corporate sales, profit growth accelerate in Q1: BOK
  • Economy

    KRX activates sell-side sidecar for KOSPI on sharp fall

    1 MIN READBy Yonhap
    KRX activates sell-side sidecar for KOSPI on sharp fall
  • Policy

    Regulator to draw up roadmap by Oct. for "T+1" stock settlement

    1 MIN READBy Yonhap
    Regulator to draw up roadmap by Oct. for "T+1" stock settlement
  • Economy

    Korean won slumps against US dollar on expectations of Fed rate hike

    1 MIN READBy Yonhap
    Korean won slumps against US dollar on expectations of Fed rate hike
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Economy

Bank of Korea chief flags rate hike 'within this year'

Bank of Korea Governor Lee Ju-yeol / YonhapThe Bank of Korea (BOK) is ready to conduct its first post-pandemic rate hike "within this year" amid the economy's robust recovery from the COVID-19 pandemic, Gov. Lee Ju-yeol said Thursday. Lee has hinted that the BOK could exit from pandemic-era monetary easing if an economic recovery remains solid, but it is the first time that he mentioned the timing of a rate hike. "There is the need to orderly normalize monetary policy within this year," Lee told reporters. Lee also took a more hawkish tone, saying there is a growing need for adjustment of monetary policy because financial imbalances worsened.Lee made the remarks as the BOK expected consumer prices to stay around 2 percent in the second half of this year. However, the country's core inflation, excluding volatile food and energy prices, is projected to exceed 1 percent as the nation's economy shows signs of a robust recovery from the COVID-19 pandemic, the Bank of Korea (BOK) said.The BOK said South Korea's consumer inflation will likely expand further down the road in step with an imp

Jun 24, 2021
Bank of Korea chief flags rate hike 'within this year'
Economy

New real estate taxation policy faces strong backlash

Apartment complexes in Seoul. Korea Times file'Ruling party idea unconstitutional, lacks predictability' By Lee Kyung-min Criticism is mounting over the ruling party's plan to limit the targets of the comprehensive real estate tax to the top 2 percent of owners of one home, in what market watchers call a politically motivated move ahead of the presidential election next year.The much-rushed, “unheard of and unconstitutional” idea is not only confusing homeowners who are not able to predict whether they will have to pay the hefty tax or not, but is also in danger of squandering administrative resources needed to determine the scope of the tax base set by assessing the value of homes every year.Key specifics of the revision including officially appraising the value of homes are left to be finalized by government ministries-revised ordinances, bypassing the National Assembly.This, some experts say, is unconstitutional since a relevant clause under the Constitution stipulates that the tax rate and the list of taxable income and assets must be set by the legislature.The minimu

Jun 24, 2021By Lee Kyung-min
New real estate taxation policy faces strong backlash
Economy

Korea eyes smooth transition of 52-hour workweek scheme for smaller firms

Finance Minister Hong Nam-ki / YonhapSouth Korea's top economic policymaker said Thursday the government plans to provide support to smaller firms, including assignments of foreign workers, as it seeks to make a soft landing for such companies implementing the 52-hour workweek.Starting July 1, the country will expand the shortened workweek scheme to companies with five to 49 workers without a grace period.Since July 2018, the country has enforced the 52-hour workweek system in a phase-in manner. The shorter workweek was devised to cap the average working hours at 52 on a weekly basis in Asia's fourth-largest economy, well known for long working hours.Finance Minister Hong Nam-ki said the government will focus on making a smooth transition to the workweek scheme for smaller firms as soon as possible."The government plans to first dispatch foreign workers to firms that have difficulties in hiring, such as companies located in provinces," Hong said at a government meeting on the economy.The country also plans to provide up to 1.2 million won ($1,050) per month for up to two years to sma

Jun 24, 2021
Korea eyes smooth transition of 52-hour workweek scheme for smaller firms
Economy

Gov't, ruling party clash over relief funds

Prime Minister Kim Boo-kyum speaks during a National Assembly interpellation session, Wednesday. YonhapFinance minister reiterates skeptical view about universal aidBy Park Jae-hyukThe government has reiterated its negative opinion about the proposal by the ruling Democratic Party of Korea (DPK) to provide a fifth round of disaster relief payouts to all households in the country, regardless of their earnings.“Although lawmakers have urged the government to offer disaster relief funds to all citizens, the government is considering practical ways to stimulate the economy by increasing consumption,” Prime Minister Kim Boo-kyum said in a National Assembly interpellation session, Wednesday.Deputy Prime Minister and Finance Minister Hong Nam-ki also said that the government is not thinking about providing universal coronavirus stimulus funds, in response to a question from Rep. Choo Kyung-ho of the conservative main opposition People Power Party (PPP), at the National Assembly's Strategy and Finance Committee meeting, before the interpellation session that day.“In the neg

Jun 23, 2021By Park Jae-hyuk
Gov't, ruling party clash over relief funds
Economy

Shinhan Bank to shutter 40 branches this year

Shinhan Bank CEO Jin Ok-dong By Lee Kyung-minShinhan Bank plans to close down at least 40 offline branches in the second half of this year, due to high operating costs and plummeting interest income amid ultra-low lending rates, local banking sources said, Wednesday.The bank has already closed six branches so far this year, meaning the number of branches to be shut down could reach close to 50 by the end of the year. This means Shinhan will no longer be singled out as falling behind compared to other banks in the digitization drive spearheaded by the financial industry.It costs Shinhan Bank up to 1.7 billion won ($1.4 million) a year to keep one branch open in a commercial area of downtown Seoul.“It is difficult to find a reason to operate costly branches, since key services are available online. We will continue to maintain stellar customer services,” a Shinhan official said.Shinhan Bank closed down 21 branches nationwide last year, while rival KB Kookmin Bank shut down 64 over the same period. Hana Bank and Woori Bank closed down 74 and 58 branches, respectively. T

Jun 23, 2021By Lee Kyung-min
Shinhan Bank to shutter 40 branches this year
Economy

Powell's remarks pushing Bank of Korea to delay rate hike

Federal Reserve Chairman Jerome Powell testifies on the Fed's response to the coronavirus pandemic during a House Oversight and Reform Select Subcommittee hearing on the coronavirus on Capitol Hill in Washington, D.C., Tuesday. AP-YonhapTimeline for BOK's rate hike relies on U.S. tapering: economistsBy Lee Min-hyungWith U.S. Federal Reserve Chairman Jerome Powell toning down his recent hawkish rhetoric over his country's monetary policy, economists said Wednesday the timing of a rate hike by the Bank of Korea (BOK) will be dependent on actual U.S. tapering moves.The prediction is in response to Powell's latest remarks, Tuesday (local time) that the Fed will not raise the key rate “preemptively” due to growing inflationary fears.The message was delivered a few days after the Federal Open Market Committee (FOMC) turned hawkish last week when more of its members stressed the need to bring forward the timeline for a U.S. rate hike to 2022.Given the BOK's monetary policy direction is still heavily reliant on the U.S. economy, Powell's remarks, interpreted by many as rather dov

Jun 23, 2021
Powell's remarks pushing Bank of Korea to delay rate hike
Economy

Successful Toss Bank listing on track

Toss founder and CEO Lee Seung-gunBy Lee Kyung-minToss Bank, the mobile financial platform operated by Viva Republica, is expected to gain momentum by bringing on more attractive, large investors. Viva Republica has recently drawn 460 billion won ($404 million) in investments, with its corporate value soaring to 8.2 trillion won from 1.2 trillion won in 2018.The investment will help the internet-only bank set to launch in September increase its capital. The capital increase will be a vital step for Toss towards operating a lending business that requires a loan-screening system, backed by a substantial amount of financial reserves.Also moving forward is the prospect of the internet-only bank's initial public offering (IPO) as early as 2023, preceded by a hefty capital increase in the first half of next year.Part of the 460 billion won in investments will go to the internet-only bank and Toss Securities. The securities subsidiary was launched in March and has accumulated 3.5 million accounts since emerging as a leader in mobile trading systems (MTS).Toss Bank's total capital stands at

Jun 23, 2021By Lee Kyung-min
Successful Toss Bank listing on track
Economy

Another extra budget could reach some 30 trillion won: finance minister

Finance Minister Hong Nam-ki speaks during a meeting at the National Assembly in Seoul, June 23. YonhapAnother extra budget under review to support the pandemic-hit people may reach some 30 trillion won ($26.5 billion), the country's chief economic policymaker said Wednesday.The government is planning to create this year's second extra budget with excess tax revenue as it seeks to underpin an economic recovery and minimize the fallout of the pandemic.Finance Minister Hong Nam-ki told a parliamentary meeting that another extra budget would be below some 32 trillion won, which is roughly equal to the excess tax revenue estimated for this year.South Korea is estimated to log a surplus in tax revenue this year amid an economic recovery and a bull run in the property and stock markets. In the first quarter, the country collected 88.5 trillion won in tax revenue, up 19 trillion won from a year.Hong earlier said the government plans to repay part of the country's national debt with the larger-than-expected tax revenue when it draws up the supplementary budget.South Korea created an extra bu

Jun 23, 2021
Another extra budget could reach some 30 trillion won: finance minister
Economy

Home prices in Seoul double under Moon administration: study

Apartment buildings in Seoul / YonhapThe average sales price of apartments in Seoul has nearly doubled under the Moon Jae-in government, a civic group said Wednesday.The Citizens' Coalition for Economic Justice announced the results of its study that has tracked the prices of 115,000 units in 75 apartment complexes since President Moon took office four years ago.The average price of a 99-square-meter apartment in Seoul rose to 1.19 billion won ($1.04 million) from 620 million won from May 2017 to May 2021.The rise in apartment prices was found to be 192 times the rise in net income, which grew by an average of 2.98 million won during the same period.The civic group said it would take a person or a household with an annual income of 48 million won 25 years to buy a 99-square-meter apartment in Seoul, assuming that all the disposable income is saved. It took 14 years four years ago.The data released by the Ministry of Land, Infrastructure and Transport showing that the price rose by 17 percent from May 2017 to December 2020 was outright "false," the group said. "If the government wants

Jun 23, 2021
Home prices in Seoul double under Moon administration: study
Economy

Inflation fears weighing on Korean economy

Producer price growth hits 10-year high By Lee Kyung-min The specter of inflation is looming larger and larger, with the nation's producer price growth hitting the highest level in nearly 10 years amid soaring raw materials and oil prices fueled by a rebound in international trade.Given the fact that producer price increases are reflected in consumer prices with a time lag of a few months, inflation woes will further deepen in the coming months pressuring the Bank of Korea to raise its key interest rate earlier than expected. Consumer prices have already exceeded the central bank's inflation target of 2 percent for the two straight months. Data from the central bank released Tuesday showed that producer prices reported a 0.4 percent month-on-month increase in May, led by a price jump for industrial goods, due to higher oil and raw material prices. It was the seventh consecutive month of increases.On a year-on-year basis, the prices surged 6.4 percent, the highest since the 6.9 percent rise in August 2011.Prices of goods with imported products factored in also rose 0.5 percent from a

Jun 22, 2021By Lee Kyung-min
Inflation fears weighing on Korean economy
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