Seoul shares open nearly flat ahead of Fed's rate decision

South Korean stocks opened nearly flat Wednesday as investors took to the sidelines ahead of the US Federal Reserve's rate-decision meeting. The benchmark Korea Composite Stock Price Index slipped 0.81 point, or 0.03 percent, to trade at 2,412.15 points in the first 15 minutes of trading. The US Fed is set to announce the results of its two-day monetary meeting results Thursday (Korean time). Overnight, the US stock market closed lower. The Dow Jones Industrial Average fell 0.71 percent, an

MarketJuly 27, 2022

Assets of 8 key financial groups nearly double over decade

Major financial groups in South Korea have seen their assets almost double over the past decade on the back of their push for business expansion, data showed Wednesday. The country's eight financial groups had 3,221.7 trillion won ($2.46 trillion) as of the end of 2021, up 95 percent from 2012, according to the data from corporate tracker CEO Score. The eight financial groups are KB, Shinhan, Hana, Woori, NH Nonghyup, Mirae Asset, Meritz and Korea Investment Holdings. In particular, their o

MarketJuly 27, 2022

ABS issuance down 32% in H1

The issuance of asset-backed securities (ABSs) in South Korea shrank 32 percent on-year in the first half of this year due to decreased sales of mortgage-backed securities, data showed Wednesday. The ABS issued during the January-June period came to 24.1 trillion won ($18.4 billion), down 11.3 trillion won from a year earlier, according to the data from the Financial Supervisory Service. ABS refers to securities based on such assets as mortgages, auto loans, credit card receivables and student l

EconomyJuly 27, 2022

Expected inflation hits record high, consumer sentiment dips to 21-month low, in July

Expected inflation in South Korea hit a record high in July amid rising energy and commodity costs, while consumer sentiment fell to the lowest point in 21 months, central bank data showed Wednesday. Expected inflation, an index gauging 12-month consumer price gains, hit a 4.7 percent, the highest since 2008 when the central bank began compiling related data, according to the Bank of Korea (BOK). The July's expected inflation was up from the previous month's figure of 3.9 percent, the data showe

EconomyJuly 27, 2022

Korea’s growth outlook darkens over poor exports, rising prices

South Korea entering the fog of economic uncertainty became more obvious on Tuesday with the International Monetary Fund revising down the country‘s growth forecast and figures showing that trade deficit for the export-led economy is worsening. In its latest world economic outlook report, the IMF revised down its prediction on the gross domestic product growth of Korea by 0.2 percentage point from its earlier suggestion of 2.5 percent to 2.3 percent, citing the global inflationary pressu

EconomyJuly 26, 2022

IMF cuts Korea’s growth prediction to 2.3%

SEJONG -- The International Monetary Fund on Tuesday forecasted that the growth of the South Korean economy would stay under 2.5 percent in 2022 and 2023, respectively, in the wake of global inflationary pressure, China’s economic slowdown and the war between Ukraine and Russia. In its latest world economic outlook report, the IMF revised down its prediction on the 2022 gross domestic product growth for South Korea by 0.2 percentage point from its earlier suggestion of 2.5 percent to 2.3

EconomyJuly 26, 2022

Poor exports darken outlook for South Korea’s growth

South Korea’s worsening trade deficit is raising concerns over a growth slowdown for the export-led economy, despite unexpected growth reported in the second quarter. The Bank of Korea said Tuesday that gross domestic product for April-June rose 0.7 percent on-quarter, higher than the 0.6 percent growth in the first quarter -- fueled by the government’s decision to scrap practically all COVID-19 restrictions. “Consumer spending pushed up growth in the second

EconomyJuly 26, 2022

[Market Eye] Could banks trade crypto in Korea?

South Korea’s top financial regulator is looking to allow banks to start trading cryptocurrencies, but experts are wary of whether the agency is as committed to protecting consumers along the way, saying it has so far shown little interest in pursuing it. The latest plan the Financial Services Commission revealed last Tuesday is part of its larger deregulation initiative to loosen rules that prevent banks from expanding into businesses the agency has not authorized, such as initial coin

EconomyJuly 26, 2022

Chinese envoy warns Korea against ‘interference’ in chip supply chain

The Chinese Ambassador to South Korea urged a Korean lawmaker who leads a parliamentary semiconductor committee to exclude “external interference” in chip supply chains and for closer bilateral cooperation in chips, according to the Chinese embassy in Seoul. “China is willing to work with South Korea under the principle of a fair and just market, eliminate external interference, strengthen cooperation in semiconductors and other fields, and jointly maintain the stability of th

IndustryJuly 26, 2022

Starbucks Korea to compensate more depending on toxicity test of giveaway bags

Facing criticism over toxic chemicals claimed to have been found in Starbucks Korea giveaway “summer carry bags,” the company said Tuesday that it might consider additional compensation to appease angry customers. “Depending on the internal investigation result of a formaldehyde level test of the bags, the company might decide whether it will provide compensation other than giving free drink coupons,” a representative from Starbucks Korea told The Korea Herald. “W

ConsumerJuly 26, 2022

Valeo to invest W73b in Daegu

French automotive parts maker Valeo will invest 73 billion won ($56 million) in Daegu to advance the autonomous driving market in the city, located 200 kilometers southeast of Seoul, officials said Tuesday. Under the deal signed with the Daegu city government, Valeo will build a factory that manufactures sensors for advanced driver assistance systems and steering at an industrial complex in the city. Sensors detect risks and warn drivers, which is essential for autonomous driving. The constr

IndustryJuly 26, 2022

Seoul shares end higher ahead of US rate decision

Seoul shares ended higher Tuesday helped by tech and auto gains, with investors awaiting the Federal Reserve's rate decision and major firms' earnings results this week. The Korean won rose against the US dollar. The Korea Composite Stock Price Index rose 9.27 points, or 0.39 percent, to close at 2,412.96. Trading volume was moderate at 409.32 million shares worth 6.15 trillion won ($4.7 billion), with gainers outstripping losers 442 to 358. Institutions and foreigners bought a combine

MarketJuly 26, 2022

Philips looks to expand self-health care market in Asia

Global health technology giant Philips said Tuesday that it would open up the new era of self-healthcare in Asia through helping consumers achieve their best health conditions with the firm’s lineup of personal healthcare products. “This approach is especially relevant in Asia, where a growing population and a greater emphasis on health and well-being are re-shaping people‘s health priorities,” said Deeptha Khanna, executive vice president at Philips Personal Health, in

TechnologyJuly 26, 2022

Posco International to supply structural steel to Incheon Airport

Posco International, the trading arm of Posco Group, is supplying Incheon Airport with 23,000 tons of structural steel to be used in expanding the airport’s second passenger terminal. They will be supplying curtain walls and roofing materials made with eco-friendly materials until Incheon Airport finishes the construction of Terminal 2 by 2024, according to Posco International. A curtain wall is an outer covering of a building made of lightweight aluminum and steel that does not carry th

IndustryJuly 26, 2022

Seoul jeonse prices fall for the first time in 39 months

The average jeonse price of apartments in Seoul this month fell for the first time in three years and three months as demand dropped due to increased lease renewals and rising interest rates while supply rose. Jeonse is a home rental system in Korea where a tenant pays a lump-sum deposit, instead of monthly rent, to a landlord. The deposit typically ranges between 60 to 80 percent of the unit‘s sale price, and is fully refunded at the end of the contract period. According to KB Kookmin

MarketJuly 26, 2022

LG Energy Solution to set up 1st Korean battery recycling plant in China

LG Energy Solution said Tuesday it looks to set up its first South Korean-Chinese joint battery cell recycling facilities in China for stable supply of key battery materials from battery manufacturing scraps and used batteries. LG Energy Solution, Korea’s largest lithium-ion battery manufacturer by production capacity, has signed a memorandum of understanding with Zhejiang Huayou Cobalt to launch a joint venture for the new recycling plant by the end of this year, according to its releas

IndustryJuly 26, 2022

Biden, SK chief to hold virtual meeting on July 26

US President Joe Biden and SK Group Chairman Chey Tae-won will hold a virtual meeting on Tuesday (US time) to discuss South Korea’s second-largest conglomerate’s spending and hiring plans in the US, according to the White House on Monday. “The president will virtually meet with the chairman and principal owner of the Republic of Korea conglomerate SK Group to discuss the company’s robust investments in American manufacturing and jobs,” the White House said, referr

IndustryJuly 26, 2022

Cheap boxed lunch sales rise amid growing ‘lunchflation‘

With South Korea’s consumer prices jumping a whopping 6 percent in June from a year earlier, many workers here are contemplating cheaper options, including takeout boxed lunch, instead of eating out. South Korean boxed lunch takeout chain Hansot Dosirak said Tuesday that its sales in restaurants near Seoul’s office clusters rose by 23 percent during lunch hours in June compared to the same month last year. On the back of workers experiencing “lunchflation,” the takeout

IndustryJuly 26, 2022

S. Korea's ice cream exports hit all-time high in H1

South Korea's exports of ice cream reached an all-time high in the first half of this year, data showed Tuesday, amid a global heat wave and the growing popularity of Korean culture. Overseas shipments of South Korean-made ice-cream products came to $50 million in the January-June period, up 14 percent from a year earlier to reach a record high, according to the data from the Korea Customs Service. Imports inched up 0.3 percent on-year to $28 million, also hitting an all-time high, during t

IndustryJuly 26, 2022

Refiners' H1 exports hit all-time high of $27.95b on higher oil prices, demand recovery

The exports of petroleum products by major refiners in South Korea hit a record high of $27.95 billion in the first half of this year on the back of higher oil prices and strong demand recovery amid eased COVID-19 restrictions, data showed Tuesday. The outbound shipments by SK Energy Co., GS Caltex Corp., S-Oil Corp. and Hyundai Oilbank Co. represent a 97.6 percent increase from a year earlier and surpassed the previous record high of $27.7 billion in 2012, according to a latest report by the Ko

IndustryJuly 26, 2022