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  • Policy

    What's left to curb weak won?

    Market attention is increasingly focused on what, if anything, can reverse the won’s slide as the won-dollar exchange rate has remained above the psychologically important 1,500 won level for more than a month despite easing geopolitical tensions, according to industry analysts, Monday. With heavy foreign selling of Korean equities and a stronger U.S. dollar continuing to weigh on the won, concerns are growing that the currency’s weakness may be becoming structural rather than merely reflecting a temporary external shock. The analysts said the key variables that will determine the won’s direction in the second half include whether the pressure of foreign investors’ selling eases, whether the Bank of Korea (BOK) raises its benchmark interest rate and whether an expected influx of U.S. dollars from SK hynix’s $30 billion American depositary receipt (ADR) listing on the Nasdaq next month materializes. The government has also stepped up microlevel measures, including closer monitoring of the offshore non-deliverable forward (NDF) market and illegal foreign exchange transactions. I

    4 MIN READBy Jun Ji-hye
    What's left to curb weak won?
  • Economy

    Tax revenue up 19% in May on higher income, bullish stock market

    1 MIN READBy Yonhap
    Tax revenue up 19% in May on higher income, bullish stock market
  • Economy

    Korean won slides further against US dollar as foreigners continue to sell local stocks

    1 MIN READBy Yonhap
    Korean won slides further against US dollar as foreigners continue to sell local stocks
  • Policy

    Gov't newly designates 3 areas in Gyeonggi as speculative zones

    1 MIN READBy Yonhap
    Gov't newly designates 3 areas in Gyeonggi as speculative zones
  • Economy

    Seoul shares edge up late Tue. morning on Wall Street gains

    1 MIN READBy Yonhap
    Seoul shares edge up late Tue. morning on Wall Street gains
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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.

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Economy

Bank of Korea pressed to widen role for employment stabilization

Bank of Korea Governor Lee Ju-yeol listens to questions from lawmakers during a National Assembly audit on Oct. 23. YonhapBy Lee Min-hyungLawmakers are pressuring the Bank of Korea (BOK) to widen its non-monetary roles and help the government stabilize employment amid their criticism over the central bank's prevalent complacency at a time of growing economic challenges.The Bank of Korea Act stipulates that the bank's primary role is to stabilize prices by carrying out effective monetary policies. But Rep. Yoo Sung-kull of the main opposition People Power Party argued this is not enough and the act should be revised in a way to expand the role into employment stabilization.The call comes amid growing economic uncertainties here and abroad amid prolonged low prices and low interest rates. The outbreak of the COVID-19 pandemic also fueled discussion on central banks across the globe taking on more proactive roles to tackle economic crises in this period of uncertainty, according to Yoo.He cited other developed countries as examples that the BOK should follow.For instance, the U.S. Feder

Nov 27, 2020By Lee Min-hyung
Bank of Korea pressed to widen role for employment stabilization
  • No clear economic recovery in sight: Bank of Korea
  • Seoul stocks close at all-time high despite virus spike
Economy

Manufacturing job losses trouble Korea

Kim Jin, register-based statistics division director at Statistics Korea, speaks during a press briefing at the Sejong Government Complex, Thursday. YonhapEateries, hospitality industry reel due to virusBy Lee Kyung-min The manufacturing sector shed 65,000 jobs in the second quarter from a year earlier, a highly worrisome downtrend that has continued for the past few quarters driven by the U.S.-China trade feud-oriented economic slowdown compounded further by the COVID-19 pandemic, government data showed Thursday.Statistics Korea data showed the industry ― a high-quality job creator accounting for 21.9 percent of the total jobs ― has seen visible job losses since the fourth quarter of 2019.By sector, car manufacturing shed 10,000 jobs, followed by 9,000 each lost in electronics and communications equipment manufacturing and machinery manufacturing.“The job losses in manufacturing are pronounced amid the pandemic, a trend that began before the spread of the coronavirus,” a statistics agency official said during a briefing at the Sejong Government Complex. They were part of

Nov 26, 2020By Lee Kyung-min
Manufacturing job losses trouble Korea
Economy

Seoul stocks close at all-time high despite virus spike

Currency traders watch computer monitors near the screens showing the Korea Composite Stock Price Index, left, and the foreign exchange rate between U.S. dollar and Korean won at the foreign exchange dealing room in Seoul, Thursday, Nov. 26, 2020. APSouth Korean stocks closed at an all-time high Thursday as the central bank's revised growth forecast boosted investor sentiment, despite an eight-month high in daily virus cases. The Korean won rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) added 24.37 points, or 0.94 percent, to close at 2,625.91 points.Trading volume was moderate at about 1.4 billion shares worth some 12.5 trillion won (US$11.3 billion), with gainers outnumbering losers 433 to 393.Foreigners sold a net 254 billion won, and retail investors purchased a net 257 billion won. Institutions offloaded a net 527 billion won.Stocks got off to a weak start on Wall Street losses that stemmed from disappointing U.S. economic indices but gained ground as the Bank of Korea (BOK) slightly revised up this year's economic outlook. The BOK revised u

Nov 26, 2020
Seoul stocks close at all-time high despite virus spike
  • Bank of Korea pressed to widen role for employment stabilization
  • No clear economic recovery in sight: Bank of Korea
Economy

New TMON CFO Jon In-chon to bolster firm's IPO prospects

Jon In-chonBy Lee Kyung-min Finance expert Jon In-chon has joined Korean e-commerce firm TMON as chief financial officer (CFO) to help with its planned initial public offering (IPO) next year, the company said Thursday.Before joining the Gangnam-headquartered firm, Jon served as CFO of Big Hit Entertainment ― the agency representing Korean pop sensation BTS ― from March to June, and before that ADT Caps, an advanced security solutions provider, from October 2018 to March 2020.The finance expert will help TMON with the IPO, a deal being managed by underwriter Mirae Asset Daewoo.“Our firm being listed in 2021 will be a first for a Korean e-commerce company, a process Jon is expected to play a key role throughout,” a TMON official said.This is the company's second IPO attempt. A bid in 2017 failed due mostly to the firm's losses.Prospects have become brighter after the firm reported 175.1 billion won ($158.2 million) in sales in 2019. While it posted a 75.3 billion won net loss that year, it produced a 160 million won net profit in March, snapping the years-long run of

Nov 26, 2020By Lee Kyung-min
New TMON CFO Jon In-chon to bolster firm's IPO prospects
Economy

No clear economic recovery in sight: Bank of Korea

Bank of Korea Governor Lee Ju-yeol speaks during an online press conference after holding a monetary policy board meeting at its headquarters in Seoul, Thursday. Courtesy of Bank of KoreaBy Lee Min-hyungThe domestic economy has not yet entered a stable and clear recovery track amid renewed fears of a third wave of the COVID-19 pandemic here, Bank of Korea governor Lee Ju-yeol said Thursday.“We cannot say for sure that an economic recovery is underway when we consider that COVID-19 infections could continue to expand for the foreseeable future,” Lee said during an online press conference after a monetary policy board meeting.The pessimistic outlook comes as the country is reporting a growing number of coronavirus cases ― the Korea Disease Control and Prevention Agency reported more than 500 new infections Wednesday, the highest number since March 6.With virus fears resurfacing rapidly nationwide, Lee projected that the third wave of infections poses a more serious threat of economic damage than the second one that gripped the nation in August.“The spread of the new c

Nov 26, 2020By Lee Min-hyung
No clear economic recovery in sight: Bank of Korea
  • Bank of Korea pressed to widen role for employment stabilization
  • Seoul stocks close at all-time high despite virus spike
Economy

Yanolja open to working with Morgan Stanley for IPO

A man enters the Morgan Stanley building in New York in this 2007 file photo. / AP-YonhapHotel booking app operator leaves 'room' for US investment bankBy Park Jae-hyukMorgan Stanley is viewed as a potential underwriter for Yanolja's planned initial public offering (IPO) next year, after the travel and lodgings service platform provider hinted it may select another underwriter in addition to Mirae Asset Daewoo and Samsung Securities.“Because we are also doing business overseas, there is still room for us to select a single foreign brokerage as an additional IPO underwriter,” a Yanolja official said without revealing the specifics of the company's plans.In the hotel booking app operator's previous bid, Morgan Stanley and several other foreign and domestic brokerages, including Mirae Asset Daewoo, Samsung Securities, NH Investment & Securities and Daishin Securities, sought to be chosen as the underwriter.Yanolja selected Mirae Asset Daewoo as the lead underwriter and Samsung Securities as a co-underwriter but neglected to include a foreign firm.The decision came as a s

Nov 26, 2020By Park Jae-hyuk
Yanolja open to working with Morgan Stanley for IPO
Economy

Bank of Korea keeps key rate at record low

Bank of Korea Governor Lee Ju-yeol / YonhapThe South Korean central bank on Thursday held its policy rate unchanged at a record low of 0.5 percent, while slightly revising up this year's economic outlook, amid growing concerns over a winter wave of coronavirus infections.As expected, the monetary policy board of the Bank of Korea (BOK) voted to leave the base rate steady in this year's final rate-setting meeting.Apparently driven by signs of a modest recovery in exports, the BOK revised up this year's economic growth outlook to 1.1 percent contraction, compared with a previous forecast of a 1.3 percent retreat. The BOK expected Asia's fourth-largest economy to grow 3 percent next year, faster than a previous forecast of 2.8 percent expansion for 2021. The BOK predicted that consumer prices may grow 0.5 percent this year, slightly up from its previous forecast of 0.4 percent gain.In late August, the BOK froze the key rate as economic uncertainty heightened amid a flare-up in new coronavirus cases. In July, the bank left the rate unchanged as well.To bolster the pandemic-hit economy, t

Nov 26, 2020
Bank of Korea keeps key rate at record low
Economy

Credit rating agencies discreet about aviation deal

A pedestrian passes by the Korean Air headquarters in Seoul, Nov. 16. / Korea Times photo by Hong In-kiBy Park Jae-hyukDomestic and global credit rating agencies are maintaining a cautious stance toward the possible impact of Korean Air owner Hanjin Group's plan to acquire Asiana Airlines on its subsidiaries as there still remain uncertainties over the proposed deal.Moody's Investors Service is considering upgrading the credit rating of Hanjin International, a wholly-owned Korean Air subsidiary which manages the Wilshire Grand Center building in Los Angeles.“The review for upgrade reflects our expectation that the proposed acquisition, if completed, will significantly improve Korean Air's scale and competitive position. Additionally, Korean Air's planned equity raising and increased importance to the Korean economy will substantially mitigate the risk associated with Asiana's poor liquidity and financial leverage,” Moody's analyst Sean Hwang said.“The resultant improvement in Korean Air's credit quality would in turn benefit Hanjin International's credit quality, gi

Nov 26, 2020By Park Jae-hyuk
Credit rating agencies discreet about aviation deal
Economy

Contribution Strategy of Korea's tax administration post-COVID-19

Innovative tax administration provides big data oriented supportMun Hee-chulBy Mun Hee-chulThe COVID-19 pandemic has been sending shockwaves through the world's economy. The economic situation has been exacerbated as countries' travel restrictions have led to decreased production and consumption, a slowdown in global economic growth and trade, and a decline in employment.In Korea, economic activity and consumer sentiment were severely hit by the pandemic, driving down small business owners' and mom-and-pop stores' profits. Their very survival has been questioned.In response, the National Tax Service (NTS) has taken every applicable tax measure to support taxpayers hurt by COVID-19.As of the end of September, the support through efforts such as the extension of due dates and deferment of tax collection amounted to 26.3 trillion won ($23.7 billion) across 6,037,000 cases ― the most extensive tax administration support in history.In other words, it was a 15.8-fold increase from the last three-year annual average number of cases where support was provided, as well as a 3.7-fold increase

Nov 25, 2020
[Contribution] Strategy of Korea's tax administration post-COVID-19
Economy

Card firms in dilemma over Korean Air-Asiana integration

A passenger jet of Korean Air takes off at Incheon International Airport on Nov. 18. YonhapBy Lee Min-hyungCard companies are in a growing dilemma over frequent flyer benefits of their private label credit cards (PLCC) issued under partnerships with the nation's two largest carriers ― Korean Air and Asiana Airlines ― that are at the head of a high-stakes integration.Given the complexity of the parties engaging in the deal, it will take at least a few months for card firms to draw a specific roadmap as to how to reshape their airline-affiliated card business strategies.Officials from the card industry said they have no choice but to follow policy guidelines from Korean Air after the airline finalizes legal procedures to take over cash-strapped Asiana.“Airlines hold the upper hand in negotiations with card firms over detailed policies on the firms' mileage-related benefits offered to customers,” an official from a major card firm here said Wednesday.Credit card issuers purchase frequent flyer points from airlines to provide the benefits to customers in line with their card

Nov 25, 2020By Lee Min-hyung
Card firms in dilemma over Korean Air-Asiana integration
  • Major law firms hit jackpot with KAL-Asiana deal
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