my timesThe Korea Times

Economy

PolicyCryptocurrencyOthers
  • Economy

    MSCI keeps Korea off developed market watchlist, but global analysts stay bullish

    MSCI's decision to keep Korea off its watchlist for potential inclusion in the Developed Market Index has pushed back expectations for index-driven inflows, but analysts say the setback does little to weaken investors' constructive view of the country's stock market, which remains underpinned by artificial intelligence (AI)-related momentum. Wee Khoon Chong, APAC macro strategist at BNY, noted that the Korean stock market is in a favorable position thanks to AI-related growth momentum, even without inclusion in the Developed Market Index. "Inclusion in the MSCI Developed Market Index would be welcomed, bringing additional passive inflows, but a status quo MSCI decision would not change investors' constructive investment thesis on South Korea," he added. Korea was not added to MSCI's Developed Market Index watchlist in its 2026 market classification review, announced Wednesday. MSCI noted that underlying issues raised by global investors "have not been fully resolved." Korea was first included in the Emerging Markets Index in 1992 and was placed on MSCI's watchlist for potential inclusion

    2 MIN READBy Lee Yeon-woo
    MSCI keeps Korea off developed market watchlist, but global analysts stay bullish
  • Economy

    KOSPI rebounds from sharp sell-off on Samsung buyback hopes

    2 MIN READBy Lee Yeon-woo
    KOSPI rebounds from sharp sell-off on Samsung buyback hopes
  • Economy

    Retail sales rise 9% in May amid improving consumer sentiment

    1 MIN READBy Yonhap
    Retail sales rise 9% in May amid improving consumer sentiment
  • Economy

    Seoul to continue push for MSCI developed market status bid after remaining in emerging category

    2 MIN READBy Yonhap
    Seoul to continue push for MSCI developed market status bid after remaining in emerging category
  • 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
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

Current account surplus widens in February

Containers fill the platform of a port in Busan. YonhapSouth Korea's current account surplus widened in February as exports showed signs of a gradual recovery from the COVID-19 pandemic, the central bank said Wednesday. The current account surplus reached US$8.03 billion last month, widening from a surplus of $7.06 billion the previous month, according to the Bank of Korea (BOK). The current account is the broadest measure of cross-border trade.Since the country logged a deficit of $3.33 billion in April last year, the largest in almost a decade, on faltering exports amid the pandemic, the current account has stayed in the black. The goods balance logged a surplus of $6.05 billion in February, larger than a surplus of $5.73 billion the previous month.Exports, which account for half of the South Korean economy, rose 9.5 percent on-year in February to extend their on-year gains for the fourth consecutive month on the back of brisk demand for chips and cars. Exports came to $44.8 billion in February, compared with $40.9 billion a year earlier. Imports gained 13.9 percent to $42.1 billio

Apr 7, 2021
Current account surplus widens in February
Economy

Upbit operator Dunamu expected to go public on NYSE

Crypto exchange Upbit's logo By Anna J. Park As cryptocurrencies continue to enjoy a bullish run lately, investors are eyeing Dunamu, the operator of Korea's largest crypto exchange Upbit, and its expected listing in the future. According to the investment banking industry, the blockchain-based fintech company has recently been said to be holding meetings with global investment banks such as Goldman Sachs and Credit Suisse to examine the firm's possible IPO options, including a listing on the New York Stock Exchange (NYSE). While the local investment banking industry expects the firm to go public on the U.S. stock market as early as 2022, a Dunamu official simply said that nothing has been decided as of now. “The company is currently reviewing various options, but nothing about the possible IPO has been decided as of now,” the official told The Korea Times. “As the company is still fast growing, we're closely examining the firm's next step with every door open.” Des

Apr 6, 2021By Anna J. Park
Upbit operator Dunamu expected to go public on NYSE
Economy

Korea's national debt snowballing amid pandemic aftershock

Kang Seung-joon, center, chief of the finance ministry's Fiscal Management Bureau, speaks during a briefing at the Government Complex Sejong, Tuesday. YonhapBy Lee Min-hyungKorea's government liabilities approached an all-time high of 2,000 trillion won ($1.78 trillion) in 2020 after authorities carried out an unprecedentedly strong level of anti-COVID-19 pump-priming measures, the Ministry of Economy and Finance said Tuesday. According to a year-end audit report, the nation's total liabilities surged by 241.6 trillion won to reach 1,985.3 trillion won in 2020, compared to the previous year. Last year is the first time since 2012 that the figure surpassed 100 percent of the GDP, which came in at 1,924 trillion won last year.The historic level of debt is attributable to the increased amount of government bond issuance throughout last year, when the government executed a series of super-expansionary budgets to rev up the virus-hit economy by offering emergency relief funds to the public, according to the finance ministry.The national debt, which excludes pension liabilities for governm

Apr 6, 2021By Lee Min-hyung
Korea's national debt snowballing amid pandemic aftershock
Economy

National Pension Service remains cautious over Myanmar crisis

The National Pension Service (NPS)' Investment Management headquarters in Jeonju, North Jeolla Province / Courtesy of NPSBy Park Jae-hyukThe National Pension Service (NPS) is maintaining silence on POSCO's businesses in Myanmar. Amid the steelmaker's continued denial of its ties with the Southeast Asian country's military junta, the state pension service appears to be facing a dilemma, as European institutional investors have begun urging POSCO and other global enterprises to leave Myanmar, in order to prevent possible inflows of cash to the junta.According to the Financial Times, Park Yoo-kyung, an adviser of the Dutch pension fund, APG, which manages $668 billion, raised questions about POSCO's commitments to responsible investments, saying that a lot of investors are putting pressure on the company.Reuters reported that Sweden's public pension fund, which owns POSCO shares, asked the firm about its investments in Myanmar, out of concern over human rights issues there. According to the news agency, Helsinki-based financial group Nordea also told the Swedish arm of Oxfam's Fair Fina

Apr 6, 2021By Park Jae-hyuk
National Pension Service remains cautious over Myanmar crisis
Economy

$750 billion: National debt grows by largest-ever amount last year amid pandemic

Ministry of Economy and Finance's fiscal management official Kang Seung-joon speaks during a briefing on Korea's financial status in 2020 at Government Complex Sejong, April 5. Courtesy of Ministry of Economy and FinanceSouth Korea's national debt grew by the largest-ever amount last year as the country implemented expansionary fiscal spending to tackle the fallout of the pandemic, the finance ministry said Tuesday.The national debt, which covers bond sales and financial borrowing by central and provincial governments, reached a record 846.9 trillion won (US$750.5 billion) as of end-December, up 123.7 trillion won from the previous year, according to a report on the 2020 national settlement.The settlement report, approved by the Cabinet, will be submitted to the National Assembly by May after a review by the state audit agency.The sharp gain in national debt came as the government sold more bonds to finance its expansionary fiscal spending designed to cope with the economic fallout of the COVID-19 pandemic.Last year, the nation drew up four rounds of extra budgets totaling 67 trillio

Apr 6, 2021
$750 billion: National debt grows by largest-ever amount last year amid pandemic
Economy

Eximbank, Hyundai Motor sign $2.66 bil. program for future mobility business

Export-Import Bank of Korea Chairman and President Bang Moon-kyu and Hyundai Motor CEO Chang Jae-hoon pose at the bank's headquarters on Yeouido, Seoul, April 1, after signing a memorandum of understanding (MOU) to offer 3 trillion won ($2.66 billion) for the carmaker to successfully cope with automotive trends. Courtesy of Export-Import Bank of KoreaBy Yi Whan-wooThe Export-Import Bank of Korea (Eximbank) signed a 3 trillion won ($2.66 billion) program with Hyundai Motor Group in support of Korea's top carmaker to take the lead in the global transition toward smart and eco-friendly cars. The state-run policy lender said Monday a memorandum of understanding (MOU) was signed last week between Eximbank Chairman and President Bang Moon-kyu and Hyundai Motor CEO Chang Jae-hoon.Under the MOU, the bank will offer financial support until 2023.The fund will be used for research and development, facility investments in and outside Korea, merger and acquisition deals as well as other efforts that can help Hyundai Motor Group and its partners to take the initiative in future mobility.The carmak

Apr 5, 2021By Yi Whan-woo
Eximbank, Hyundai Motor sign $2.66 bil. program for future mobility business
Economy

Morgan Stanley tops M&A advisory market in Korea in Q1

Morgan Stanley logoBy Anna J. ParkMorgan Stanley's Korea branch topped the list of the M&A advisory market during the first quarter. The U.S.-headquartered investment bank's lucrative Q1 results came from inking major deals, including the sale of local recruitment site JobKorea for 900 billion won ($800 million). Morgan Stanley also led Match Group's $1.73 billion buyout deal of Korea-headquartered social networking company Hyperconnect, which operates global-based applications Azar and Hakuna Live.According to the investment banking industry, the firm is expected to maintain the top position in the M&A advisory market in Korea throughout this year, as it is also participating in the sell-off of eBay Korea as well as the nation's second-largest food delivery platform Yogiyo. Credit Suisse, last year's top performer in the advisory sector, took the second place during the first three months of this year, as the Switzerland-headquartered global financial firm managed Doosan Group's restructuring deals, including the selling of Doosan Infracore. The firm also advised a recently

Apr 5, 2021By Anna J. Park
Morgan Stanley tops M&A advisory market in Korea in Q1
Economy

Department store sales spike on 'revenge spending'

Spending at department stores reaches 25-year-highBy Lee Min-hyungSales at the nation's department stores set a new 25-year high in February, in an apparent sign of so-called “revenge spending” in the wake of the COVID-19 economic doldrums experienced throughout 2020.According to data from Statistics Korea, consumer spending at department stores surged by 33.5 percent in February, compared to a year ago, the largest growth since February 1996. The statistics authority started compiling data from 1995.This is widely seen as a post-lockdown rebound here after the economy contracted 1 percent last year.Statistics Korea said domestic consumption is showing signs of bouncing back after bottoming out in February 2020 when department store sales declined by 21.2 percent from the year before.Other data from the Bank of Korea also indicated a similar pattern, raising hopes for an overall economic rebound. The composite consumer sentiment index (CCSI) reached 100.5 in March, up by 3.1 points from the previous month, according to data from the central bank. This is the first time th

Apr 5, 2021By Lee Min-hyung
Department store sales spike on 'revenge spending'
Economy

IMM PE set for large investments after successful divestments

Seen is a screen capture of IMM Private Equity's website.By Park Jae-hyukAttention is being focused on the next investment target of IMM Private Equity (IMM PE), as the domestic private equity firm (PEF) completed successful divestments last week from W Concept and Taihan Electric Wire.The PEF and Citigroup Global Markets Securities, the underwriter for the sale of W Concept, selected Shinsegae Group's e-commerce unit SSG.com as the preferred bidder to acquire the womenswear fashion platform, Thursday, and signed a share purchase agreement.SSG.com will take over a full stake in W Concept ― 80 percent held by IMM PE and 20 percent held by ISE Commerce ― after the Fair Trade Commission approves the merger deal.Considering that a regulatory filing by ISE Commerce showed the company sold its stake in W Concept for 53 billion won ($47 million), IMM PE will receive 212 billion won after closing the deal. The PEF had paid 61.2 billion won for acquiring the 80 percent stake in W Concept in 2017.The sale of Taihan Electric Wire to Hoban Group, which was signed three days before the W Concept

Apr 5, 2021By Park Jae-hyuk
IMM PE set for large investments after successful divestments
Economy

South Korea's household debt-to-GDP ratio nears 100 percent: report

Signs of realtors are seen on the street of Seoul. YonhapSouth Korea's household debt has been rising faster than that in most major economies to reach nearly 100 percent of its gross domestic product (GDP), a report showed Monday.The country's household debt-to-GDP ratio stood at 98.6 percent as of the end of June last year, according to the report from the Korea Institute of Public Finance.The figure is much higher than the global average of 63.7 percent and 75.3 percent for advanced economies.South Korea's growth pace of household debt has also been much more rapid than other countries.The end-of-June ratio for Asia's fourth-largest economy was up 27.6 percentage points from 2008, compared with a global average increase of 3.7 percentage points and a 0.9 percentage-point drop for advanced nations.Short-term debt accounted for 22.8 percent of South Korea's total household debt, much higher than 2.3 percent for France, 3.2 percent for Germany, 4.5 percent for Spain and 11.9 percent for Britain.The United States had a short-term debt ratio of 31.6 percent, becoming the only major eco

Apr 5, 2021
South Korea's household debt-to-GDP ratio nears 100 percent: report
previous page
847848849850851
next page

Most Read in Economy