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  • Economy

    Seoul stocks, won hammered by massive foreign selling

    Seoul stocks plunged Friday as a prolonged foreign sell-off collided with a sharp downturn in global semiconductor shares, sending the benchmark KOSPI down more than 5 percent to below the 8,200 level. The sustained foreign investor exodus also continued to weigh on the Korean won. In Seoul’s onshore foreign exchange market, the won closed at 1,539.1 per dollar, down 9.4 won from the previous session. During intraday trading, it briefly approached the 1,550 level, its weakest since March 2009, during the global financial crisis. The won has now traded above the 1,500 per dollar threshold for 14 consecutive sessions. KOSPI opened at 8,323.20, down 3.66 percent from the previous session, according to the Korea Exchange. Heavy selling pressure persisted throughout the day, prompting the year’s 10th sidecar shortly after the opening bell — a market safeguard that temporarily suspends program trading during periods of extreme volatility. The index ultimately closed at 8,160.59, down 5.54 percent. Foreign and institutional investors drove the decline, selling a net 3.52 trillion won and

    2 MIN READBy Park Han-sol
    Seoul stocks, won hammered by massive foreign selling
  • Economy

    Korea diversifying LNG imports to ease Middle East dependence: KOGAS chief

    1 MIN READBy Yonhap
    Korea diversifying LNG imports to ease Middle East dependence: KOGAS chief
  • Economy

    Korea's currency tumbles to 17-year low on foreign stock selloff

    1 MIN READBy Yonhap
    Korea's currency tumbles to 17-year low on foreign stock selloff
  • Economy

    Gov't vows to lower barriers for foreign investors with 24-hour FX market

    1 MIN READBy Yonhap
    Gov't vows to lower barriers for foreign investors with 24-hour FX market
  • Economy

    KRX issues sell-side sidecar for KOSPI on sharp fall

    1 MIN READBy Yonhap
    KRX issues sell-side sidecar for KOSPI on sharp fall
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Economy

KOSPI soars past 4,400 for 1st time, shrugging off US attack on Venezuela

Seoul stocks brushed aside the fallout from Saturday's U.S. attack on Venezuela, with the benchmark KOSPI topping 4,400 points for first time on Monday. The won held at the 1,440 level per dollar as foreign investors net-purchased local stocks. The U.S. attack centered on the capture of Venezuelan President Nicolas Maduro, prompting concerns over geopolitical tensions, investor preference for safe-haven assets and potential capital outflows from Seoul’s markets. But the KOSPI shrugged off such worries, closing at 4,457.52 points, up 3.43 percent from Friday’s close and securing back-to-back gains. Monday’s index was also notable for breaking the unprecedented 4,400-point mark, boosting prospects of reaching 5,000 points this year, following a 75.62 percent gain in 2025. This pace of growth ranks as the third highest in KOSPI’s history. The won closed at 1443.8 per dollar in the daytime session, weakening from Friday’s 1,441.8 but remaining in the 1,440 range for a second consecutive session. Both the government and economists expect the economic impact of the U.S. strike on Vene

Jan 5, 2026By Yi Whan-woo
KOSPI soars past 4,400 for 1st time, shrugging off US attack on Venezuela
Others

Lee administration tasked with balanced growth in 2026 as polarization deepens

Korea’s stagnant domestic spending and polarized growth among key growth-driving manufacturing industries, coupled with the won’s weakness relative to the U.S. dollar, are masked by record exports and the artificial intelligence (AI) sector-backed stock market boom, market watchers said Monday. The Korean economy’s heavy dependence on the semiconductor industry will put the economic drive of the Lee Jae Myung administration to the test, as the weakening won significantly reduces purchasing power and strains the cost of living for many people. Whether the government’s economic initiatives can steer the country away from chipmaking toward more balanced, inclusive growth amid a wider polarization in assets and income remains to be seen. To do this, experts urge steady structural reforms such as efficient exit strategies for declining industries and sweeping deregulation to foster new growth drivers. “On paper, everything looks great,” former Seoul National University (SNU) professor Lee In-ho said. Korea’s exports exceeded $700 billion for the first time, becoming the sixth eco

Jan 5, 2026By Lee Kyung-min
Lee administration tasked with balanced growth in 2026 as polarization deepens
Economy

BOK chief warns of 'K-shaped' recovery with sector disparities, disconnect from public sentiment

Bank of Korea (BOK) Gov. Rhee Chang-yong said Monday economic polarization and uncertainty are expected to persist this year, stressing the need for careful and balanced policymaking. Rhee made the remarks during a meeting with the heads of financial companies and officials from relevant industries in Seoul, which was also attended by Financial Services Commission Chairman Lee Eog-weon and Financial Supervisory Service Gov. Lee Chan-jin. "The economy is projected to post higher growth this year than last year, but a 'K-shaped' recovery marked by wide gaps among sectors is likely to create a significant disconnect between headline growth and how people actually feel the economy," Rhee said. He pointed to uncertainties in the global trade environment and fiscal policies of major economies as major challenges, while noting that expectations for the global artificial intelligence (AI) industry could also be reassessed. "The central bank will conduct monetary policy in a more fine-tuned manner, closely monitoring a range of economic indicators as heightened uncertainty is increasing trade-off

Jan 5, 2026By Yonhap
BOK chief warns of 'K-shaped' recovery with sector disparities, disconnect from public sentiment
Banking & Finance

Finance ministry faces uphill battle as economic control tower without budget authority

The Ministry of Economy and Finance faces a daunting challenge in serving as the control tower for Korea’s economic rebound this year after losing authority over the national budget, a key tool for implementing recovery plans. Budget control was transferred Friday to the newly established Ministry of Planning and Budget, which operates under the Prime Minister’s Office. The separation is part of President Lee Jae Myung’s administrative reform agenda. While the Ministry of Economy and Finance retains responsibility for macroeconomic policy and taxation, political and economic experts say its influence has been significantly weakened, as budget authority is central to coordinating and enforcing economic policy across government. “A leader can be far less influential if they are tasked with a project that requires massive funding but lack control over the money,” said Shin Il-soon, a professor of economics at Inha University. The concern comes as the government rolls out a 727.9 trillion won ($503.38 billion) budget for 2026, up 8.1 percent from the previous year, with a strong fo

Jan 5, 2026By Yi Whan-woo
Finance ministry faces uphill battle as economic control tower without budget authority
Others

Decent retirement life for 2 costs at least $2,074 a month: report

Koreans aged 50 and older believe nearly 3 million won ($2,074) a month is needed for a household of two for a stable retirement life, a finding that highlights looming concerns as many approach old age without knowing how much pension income they will actually receive. The report comes as pressure grows on the public pension system, signaling a need for stronger retirement planning, policy intervention and financial education as Korea rapidly ages. According to findings by a research institute affiliated with the National Pension Service, the respondents said they perceive old age as beginning at an average age of 68.5, reflecting expectations of longer working lives amid increased life expectancy. The survey was based on 5,138 households with at least one member aged 50 or older, totaling 8,394 respondents, including spouses. More than half defined the start of old age as the point when physical strength begins to decline, while 26.7 percent said it begins when they stop engaging in paid work. When asked about retirement living costs, respondents said that an individual needs a minimum

Jan 4, 2026By Lee Kyung-min
Decent retirement life for 2 costs at least $2,074 a month: report
Economy

Sales of large discount stores fall at fastest pace in over 13 yrs in November

Sales of large discount stores decreased at the sharpest pace in more than 13 years in November, government data showed Sunday. The retail sales index for large discount stores stood at 83 in November, down 14.1 percent from a month earlier, according to data from the Ministry of Data and Statistics. The retail sales index is a key economic indicator that tracks changes in consumer spending on goods by measuring monthly sales against the 2020 monthly average. The November drop marked the steepest monthly decline since March 2012, when the index fell 19.8 percent after the government imposed mandatory closure days on large discount stores to support smaller retailers. The ministry attributed the decline to a base effect stemming from a surge in shopping during the extended Chuseok holiday that fell in October, as well as a longer-term shift toward online shopping. Separate data from the statistics ministry showed that online shopping transactions rose 6.8 percent on-year to a record 24.2 trillion won ($16.7 billion) in November.

Jan 4, 2026By Yonhap
Sales of large discount stores fall at fastest pace in over 13 yrs in November
Economy

Spending on private education jumps 60% over past decade: data

Korean families' spending on private education for their children has jumped by more than 60 percent over the past decade, government data showed Sunday. According to the Korean Statistical Information Service (KOSIS) for the Ministry of Data and Statistics, Korean households spent just under 29.2 trillion won ($20.2 billion) on private education in 2024, up by 60.1 percent from 2014. This also marked a fourth consecutive year of increase in private education spending. While costs for sending students to hagwons, or private academic institutions, have been rising, families also have more money to spend on giving their children extra lessons outside their schools, contributing to the continued surge in private education spending, the ministry said. A steady increase in the number of dual-income households has also led to more expenditures on private education, the ministry added, since those parents often send their children to after-school hagwons during their working hours rather than leaving them at home alone. KOSIS numbers also showed spending on education for elementary school stude

Jan 4, 2026By Yonhap
Spending on private education jumps 60% over past decade: data
Economy

Foreign ownership in Korean stock market reaches highest level in nearly 6 years: report

Foreign ownership as a share of total market capitalization reached its highest level in five years and eight months in December amid a rally in the Korean equity market, a report showed Sunday. Foreigners bought a net 3.5 trillion won ($2.4 billion) worth of local shares in December, raising their stockholdings to 32.9 percent of total market capitalization, the highest level since April 2020, according to a report published by the Korea Center for International Finance (KCIF). Separate data from the Financial Supervisory Service (FSS) showed that foreign ownership stood at 29.6 percent as of November, compared with 31.5 percent in April 2020. The FSS has yet to release its December figures. The KCIF report said foreign investors purchased a net 4.5 trillion won worth of shares in the electronics sector in December, including 2.2 trillion won in SK hynix and 1.4 trillion won in Samsung Electronics. As a result, foreign ownership of SK hynix rose to 53.8 percent in December from 53.2 percent a month earlier. Foreign holdings in Samsung Electronics also advanced to 52.3 percent from 52.2

Jan 4, 2026By Yonhap
Foreign ownership in Korean stock market reaches highest level in nearly 6 years: report
Others

Seoul stocks soar to all-time high on first trading day of 2026

The KOSPI climbed above 4,300 points on Friday, the first trading day of 2026, building on the momentum that lifted the benchmark past the 4,000 points mark for the first time last year. After opening higher, the index continued to gain ground and closed at 4,309.63, up 95.46 points, or 2.27 percent, from the previous session, marking its highest closing on record. The local stock market opened an hour later than usual at 10 a.m. due to an opening ceremony held earlier in the day, while the closing time remained unchanged at 3:30 p.m. Major semiconductor stocks drove the gains, with Samsung Electronics surging 7.17 percent to close at 128,500 won ($89) and SK hynix rising 3.99 percent to finish at 677,000 won. The index’s record-setting performance was further bolstered by strong export figures released during the New Year’s Day holiday. According to the Ministry of Trade, Industry and Energy, outbound shipments in December totaled $69.6 billion, up 13.4 percent from a year earlier and marking the highest December figure on record. The growth rate significantly exceeded the consensus

Jan 2, 2026By Jun Ji-hye
Seoul stocks soar to all-time high on first trading day of 2026
Economy

Major banks' household loans fall in December amid lending suspension

Outstanding household loans from South Korea's major banks recorded the first monthly decline in 11 months in December, industry sources said Friday. Total outstanding household loans from the country's five major banks — KB Kookmin, Woori, Hana, Shinhan and NH Nonghyup — stood at 767.6 trillion won ($531.6 billion) as of end-December, down 456.3 billion won from the previous month. It marks the first monthly decline since last January, when the figure fell by 476.2 billion won from a month earlier, according to the sources. The drop came as major banks had suspended new household loans late last year, in line with the government's efforts to cool down an overheated property market and curb household lending.

Jan 2, 2026By Yonhap
Major banks' household loans fall in December amid lending suspension
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