BOK freezes rates at record low, projects bleak economic outlook

South Korea’s central bank on Thursday decided to freeze its policy interest rate at 0.75 percent, hinting its willingness to review the effects of last month’s big rate cut coupled with quantitative easing efforts. Following a monetary policy board meeting earlier in the day, the Bank of Korea decided to keep its base rate steady after it slashed it by half a percentage point to a record low on March 16. It was the first emergency rate cut in more than a decade to combat the risk

April 9, 2020

Commercial paper sales jump 34% in March

Sales of commercial papers (CP) in South Korea surged more than 34 percent on-month in March as brokerages rushed to secure cash to brace for the fallout from the novel coronavirus outbreak, data showed Thursday. The country's CP issuance came to 21.2 trillion won ($17.4 billion) last month, up 34.2 percent from the previous month's 15.8 trillion won, according to the data from the Korea Securities Depository. Securities companies led the sharp increase in March sales of CP, a short-term debt

April 9, 2020

Tourism sector reels from new coronavirus outbreak in February: data

South Korea's tourism industry took a big hit from the novel coronavirus in February due to a reduction in both inbound and outbound tourism, industry data showed Thursday. Asia's fourth-largest economy registered a tourism deficit of $365.2 million in February, down from $927.6 million the previous month, according to the data from the Korea Culture and Tourism Institute. February's deficit, however, is the lowest in 10 months as the range of decrease in spending by outbound travelers was bi

April 9, 2020

BOK stands pat at record low after emergency rate cut to battle coronavirus

The Bank of Korea (BOK) on Thursday kept its policy rate frozen at an all-time low of 0.75 percent, citing the need to see the effect of steps already taken, but painted a grim growth outlook, forecasting "considerably" slower growth than earlier expected. "Gross domestic product growth is projected to fall considerably below the February forecast of 2.1 percent, and uncertainties around the future path of GDP growth are also judged to be very high," the BOK said in its mon

April 9, 2020

S. Korea may suffer job losses amid pandemic: finance minister

South Korea's job creation may suffer a decline, as the coronavirus pandemic has strained the country's economy and business activities, the nation's chief economic policymaker said Thursday. "There is a possibility that unemployment may increase among part-time workers or small business owners," Finance Minister Hong Nam-ki said during a meeting with economy-related ministers. "The number of applicants for unemployment allowances is estimated to have increased in March from a

April 9, 2020

South Korea’s best method of tracking COVID-19 spread: credit card transactions

The sucess behind South Korea’s fast action toward containing the spread of COVID-19 is in its legal access to private information of credit card tranaction, according to observers on Wednesday. Despite disputes on infringing on individuals’ privacy, the method is being touted in and out of the country for its efficiency, as it can take just 10 minutes to track the movement of patients infected with the virus. Since the first case of the novel coronavirus was confirmed on Jan. 20,

April 9, 2020

S. Korea unveils another massive stimulus package against coronavirus

South Korea has unveiled an additional economic relief package worth 53.7 trillion won ($44 billion) in its continued struggle to boost the domestic market and export industries amid the fallout of COVID-19. Of the newly added amount, 36 trillion won will be allocated to trade finance, expanding the insurance and guarantee caps, while 17.7 trillion won will be used to stimulate local consumption. “The global economy is sinking into a severe recession and our export-dependent economy

April 8, 2020

Household, corporate debts see record growth in March

South Korea’s household and corporate debts saw unprecedented growth last month, data from financial authorities showed Wednesday, as risks stemming from the novel coronavirus continue to weigh on the economy. Bank loans extended to local households, including state-backed mortgage loans, increased by 9.6 trillion won ($7.88 billion) on-month to 901.9 trillion won, the Bank of Korea said. It is the highest figure since the BOK started keeping records on household debt in 2004. The corr

April 8, 2020

Gold exports climb to 7-year high in Feb. on price hikes

South Korea's exports of gold surged to over a seven-year high in February as demand for safer assets increased amid a market rout triggered by the new coronavirus, the Bank of Korea (BOK) said Wednesday. Outbound shipments of gold for non-monetary use came to some $290 million in the month, the highest since $327 million posted in September 2012, according to the BOK. In terms of volume, outbound shipments of gold amounted to 5.8 tons in February, sharply up from 3.5 tons shipped the same mo

April 8, 2020

Insurance fraud hits fresh high in 2019

Fraudulent insurance claims shot up more than 10 percent in 2019 from a year earlier to hit a new record, the financial watchdog said Wednesday. Insurance fraud scammers obtained 880 billion won ($720 million) through wrongful filings in 2019, compared with 798 billion won tallied a year earlier, according to the Financial Supervisory Service (FSS). The watchdog said it has detected 92,538 suspects last year, rising from 79,179 disclosed in 2018. The figures translate into 254 suspects fili

April 8, 2020

Households' excess funds up sharply in 2019

Excess funds held by South Korean households jumped sharply from a year earlier in 2019, central bank data showed Wednesday, possibly due to government efforts to curb real estate speculation. Net financial funds held by households, including nonprofit organizations, came to 91.8 trillion won ($75.3 billion) as of end-2019, up from 52.7 trillion won tallied a year earlier, according to preliminary data from the Bank of Korea (BOK). The BOK did not offer any reasons for the increase, but it ea

April 8, 2020

Moon vows another massive stimulus package against coronavirus

President Moon Jae-in unveiled plans Wednesday for another economic relief package aimed at stimulating exports and domestic demand stifled by the coronavirus pandemic. The government will provide South Korea's exporting companies with at least 36 trillion won ($29.5 billion) of trade finance for their credit and capital liquidity, he said during the fourth emergency economic council session at Cheong Wa Dae. It's meant to support exporters suffering a heavy blow due to the collapse of global

April 8, 2020

S. Korea’s national debt hits record W1,700tr in 2019

South Korea’s national debt last year surpassed 1,700 trillion won ($1.39 trillion) for the first time, weighed down by increased treasury bond issuance coupled with the government’s consequent fiscal expansion, a government report showed Tuesday. The national debt jumped 60.2 trillion won on-year to 1,743.6 trillion won as of end of 2019, according to the annual national financial report reviewed and endorsed by the Cabinet. The Cabinet meeting was presided by Prime Minister Chung

April 7, 2020

BOK kicks off pilot program for digital currency

South Korea’s central bank said Monday that it has launched a pilot program for a central bank-issued digital currency. “We do not see the immediate need to issue a digital currency in the near future, due to the considerable level of cash demands here and the relatively stable payment market operations,” the Bank of Korea said in a release. “But we should be able to make responsive moves, should environments change drastically at any time, so we shall undertake tech

April 7, 2020

S. Korea's tax revenue dips due to economic slump

South Korea's state tax revenue dropped from a year earlier in the first two months of 2020, the finance ministry said Tuesday, amid a slump caused by a steady decline in exports and problems stemming from the new coronavirus outbreak. In the January-February period, state tax revenue came to 46.8 trillion won ($38.3 billion), down 2.4 trillion won from the same period last year, according to the report from the Ministry of Finance and Economy. The amount represents 16.1 percent of this year'

April 7, 2020

Korea's current account surplus widens to $6.41b in Feb.

South Korea's current account surplus sharply increased from a year earlier in February, as its goods account surplus widened while its service account deficit slightly narrowed, central bank data showed Tuesday. The country's current account surplus came to $6.41 billion in the month, up from a $3.85 billion surplus the same month last year, according to preliminary data from the Bank of Korea (BOK). Its goods account surplus widened to $6.58 billion from $5.42 billion over the cited period,

April 7, 2020

Financial regulator dismisses 'April crisis'

South Korea's chief financial regulator on Monday dismissed allegations that some companies are facing a looming credit crunch this month amid the spread of the novel coronavirus. Outstanding loans extended by five major banks to large companies came to 78.7 trillion won ($61.8 billion) as of March 20, up nearly 1.8 trillion won from end-February, according to the data from the banks. Loans extended to small and midsized firms jumped by more than 61 trillion won or 16 percent over the cited p

April 6, 2020

S. Korea expands free trade zones to promote exports amid virus pandemic

South Korea said Monday it will expand the size of its free-trade zones to provide more leeway to businesses in line with efforts to boost slowing exports amid the global virus pandemic. Under the plan, the size of the free trade zone of Incheon International Airport, the main gateway to South Korea, will expand around 10 percent to 3.3 square kilometers, according to the Ministry of Trade, Industry and Energy. South Korea operates free trade zones in major cities, including Incheon and Busan

April 6, 2020

Calls grow for BOK intervention amid COVID-19 crisis

Increasingly pressed to play a more active role in the coronavirus-hit financial market, South Korea’s central bank is considering exceptional measures to provide liquidity, such as purchasing corporate bonds and corporate bills. The Bank of Korea is slated to hold its decision-making Monetary Policy Board meeting Thursday to review the necessity of base rate adjustments and other key monetary actions, officials said. Despite the prolonged economic fallout from the COVID-19 pandemic an

April 5, 2020

Online payments rise amid coronavirus spread: data

Under the prolonged impact of the COVID-19 pandemic, major economies around the world have seen a visible decrease in cash transactions and an equivalent rise in online payments, data showed Sunday. According to a report issued by the Bank of Korea, major e-commercial platforms here saw their sales climb in the January-February period this year. Asia’s fourth-largest economy reported its first confirmed case of the new coronavirus on Jan. 20 and faced a rapid rise of patients in mid-Feb

April 5, 2020