Regulator proposes opening information-sharing channel with financial firms on overseas markets

South Korea's financial regulator on Thursday proposed opening an "information-sharing channel" with local financial institutions on overseas market conditions to better respond to offshore developments and minimize their impact on domestic markets. Lee Bok-hyun, head of the Financial Supervisory Service, made the proposal during a meeting in Seoul with officials of financial holding groups, banks, brokerages and insurers handling global businesses. "I propose building an inf

Nov. 10, 2022

S. Korea to begin eased lending rules next month

South Korea will carry out eased lending rules for first-time homebuyers and owners of one home next month as the once red-hot housing market appears to be entering a downturn amid rising interest rates, the land ministry said Thursday. The government has adopted stricter lending rules and other regulations to help stabilize the country's real estate market in recent years. In response, the government came up with the latest measures amid growing concern about a possible failure of the prop

Nov. 10, 2022

Top regulator, bank chiefs vow to cooperate in stabilizing debt market amid credit crunch woes

South Korea's top financial regulator on Wednesday asked for local banks' cooperation in stabilizing the corporate bond and short-term money markets and helping money flow to businesses and small merchants in need. Kim Joo-hyeon, head of the Financial Services Commission, made the request in a meeting with chiefs of major commercial banks amid worries over a credit crunch sparked by a series of market-destabilizing events, including the Legoland-linked debt default. "Concerns over

Nov. 9, 2022

S. Korea's on-year job additions slow in October amid uncertainties

South Korea added jobs for the 20th straight month in October, data showed Wednesday, but the growth continued to slow for the fifth month in a row as the country braces for a possible recession amid high inflation and slowed growth. The number of employed people stood at 28.41 million last month, up 677,000 from a year earlier, according to the data compiled by Statistics Korea. It was the largest on-year growth for any October since 1999. The October figure marked a slight drop from the on-yea

Nov. 9, 2022

KDI warns of zero growth in 2050 without structural reforms

SEJONG -- South Korea's state-run think tank warned Tuesday that the nation's economy could slow practically to a standstill in 2050 unless its falling productivity is elevated through structural reform efforts. The Korea Development Institute released a report on the long-term outlook of the Korean economy. According to the report, the nation's economic growth rate is likely to be just 1.3 percent in the 2030s and 0.7 percent in the 2040s per annum in the wake of a rapid decline in the workin

Nov. 8, 2022

Itaewon businesses survey disaster's aftermath

Having lived in South Korea since 2005, Chris Truter set up a restaurant dedicated to celebrating the cuisine of his native country South Africa in central Seoul's Itaewon neighborhood soon after marrying his Korean wife and deciding to permanently settle in the country. His restaurant, Braai Republic, opened in hopes of offering home-style meals to the few, often marginalized South African immigrants living in South Korea, but it quickly gained popularity as it began to attract adventurous

Nov. 8, 2022

MSCI chairman says S. Korea needs more 'action' to join MSCI's watch list of developed markets

South Korea needs to show significant action to make MSCI's watch list of countries with developed market status, the chief of the global index provider Morgan Stanley Capital International has said. Every June, the MSCI reclassifies its watch list of advanced markets, based on the countries' economic development, size and liquidity of equity markets, and market accessibility for foreign investors. If South Korea is added to this watch list, it would then be eligible for a review to jo

Nov. 8, 2022

Sept. current account turns to surplus, sharply drops on-year amid high import, travel bills

South Korea posted a current account surplus in September, swinging from the previous month's shortfall, but it was much smaller than a year earlier as import bills remained high and outbound travel grew due to eased pandemic-related curbs, central bank data showed Tuesday. The country's current account surplus came to $1.61 billion in September, compared with a deficit of a revised $3.05 billion a month earlier, which marked the first shortfall since April, according to the preliminar

Nov. 8, 2022

Digital capability guarantees stable tax revenue: NTS chief

SEJONG -- The chief of Korea’s tax administrative agency said Monday that the transition to a non-face-to-face economy during the COVID-19 pandemic further increased the importance of digital-based tax administration. National Tax Service Commissioner Kim Chang-ki stressed the digitization of tax administration during the second South Korea-South and Central Americas Digital Tax Administration Forum, which kicked off on the day and is scheduled to run through Thursday at a hotel in Seoul.

Nov. 7, 2022

Core consumer inflation hits 21-year high

The core consumer price index, an inflation barometer that measures consumer prices excluding food and energy, has increased by the largest margin in 21 years. Statistics Korea’s all items index logged 106.09 as of October this year, up 3.5 percent from the previous year’s January-to-October period. It was also the largest jump on year in 14 years. The index is an OECD standard for core inflation, which excludes food and energy because those prices are more volatile due to seasonal a

Nov. 6, 2022

Finance minister vows tax breaks for venture capitalists

SEJONG -- The nation’s top economic policymaker on Friday unveiled plans to help facilitate investments in cash-strapped startups, suggesting hefty tax benefits for both corporate and individual investors. At a ministerial meeting in Seoul, Deputy Prime Minister and Finance Minister Choo Kyung-ho pointed to the situation whereby the private sector’s investments in startups have contracted in the wake of externally and domestically unfavorable factors in the economy. “Venture

Nov. 4, 2022

[Photo News] FX Reserves falling

A Hana Bank Counterfeit Notes Response Center official examines a $100 bill on Thursday at the center located in Jung-gu, central Seoul. As the Korean won weakens against the US doller, South Korea's foreign exchange reserves shrank for the third consecutive month in October to $414.01 billion, down by $2.76 billion since September.

Nov. 3, 2022

S. Korea braces for impact as US delivers fourth big rate hike

South Korea’s financial authorities said Thursday they would closely monitor for any signs of increasing volatility in the financial markets following a big US rate hike -- the fourth consecutive 75-point increase since June amid persistent inflation. “Uncertainties are certainly growing and we’ll be extra vigilant in our response to what may come in our way,” Finance Minister Choo Kyung-ho said at a meeting he called to discuss Wednesday’s rate increase with the co

Nov. 3, 2022

Economic sentiment in news hits worst since onset of pandemic

The economic sentiment among South Koreans shown in news reports has hit its worst since the beginning of the COVID-19 pandemic, amid growing market concern over US-led interest rate hikes and the Korean won’s descent against the greenback. The Bank of Korea said on Thursday that the News Sentiment Index has fallen 7.72 points from a month ago to 81.25 in October, the lowest since 79.16 in April 2020. The NSI is a machine learning-based indicator of econominc sentiment expressed in news re

Nov. 3, 2022

Korea sees inflation expand on hikes in public utility bills

SEJONG -- South Korea’s consumer price growth, a key indication of inflation, posted a higher figure in October compared to the previous month in the wake of sharp hikes in public utility charges despite decelerated growth in energy prices, state data showed Wednesday. According to Statistics Korea, consumer prices grew 5.7 percent on-year in October. This tied with the figure for August, and was higher than the 5.6 percent recorded in September. Though consumer price growth somewhat dec

Nov. 2, 2022

Banking giants to inject W95tr to ease liquidity strain

The leaders of South Korea’s five banking giants on Tuesday agreed to provide 95 trillion won ($67 billion) in liquidity by year-end to shore up local financial markets, rocked by a recent credit default, in what many see as a response to the government’s request for the financial groups’ support. Early in October, a state-backed local developer missed a bond payment, freezing bond and short-term money markets in a blow to market expectations for a government guarantee. The gov

Nov. 1, 2022

Consumer spending likely to weaken like it did after ferry sinking in 2014

South Korea’s consumer spending is expected to weaken further as the nation reels from the crowd surge tragedy in Itaewon that took over 150 lives, similar to over eight years ago after the Sewol ferry sinking that killed over 300 people, mostly teenagers on a school trip. As the economy is already projected to post zero percent growth or shrink in the last quarter of this year amid sluggish exports, some observers say the Itaewon disaster could hasten a recession. In the weeks following t

Nov. 1, 2022

S. Korea's exports down 5.7% in October, first on-year decline in 2 years

South Korea's exports logged an on-year decline in October for the first time in two years on sluggish global demand amid high inflation and an economic slowdown, the trade ministry said Tuesday. The country also suffered a trade deficit for the seventh consecutive month on high global energy prices, sparking concerns over its growth momentum. Outbound shipments fell 5.7 percent on-year to come to $52.48 billion last month, according to the data compiled by the Ministry of Trade, Industry a

Nov. 1, 2022

Corporate bank loans surge amid liquidity concerns

Loans taken out by South Korean companies this month from major local banks increased by 8.8 trillion won ($6.18 billion), the biggest monthly rise in 13 months, sparking concerns over fresh liquidity strains amid global headwinds sapping business confidence. Data from the five lenders -- KB Kookmin, Shinhan, Hana, Woori and NongHyup -- showed conglomerates or large companies holding at least 10 trillion won in assets accounted for 66 percent of the 8.8 trillion won surge in borrowing as of Thur

Oct. 31, 2022

Inflation, lack of children's support and pension: reasons why more Korean retirees work, says BOK

SEJONG -- The number of seniors engaging in economic activities has increased, seemingly due to their worsened living conditions involving lower-than-expected annuity income as well as reduced cash support from their children, a central bank report showed Monday. According to an analysis on factors of rising employment rate among seniors from the Bank of Korea, the tally for employed people aged 60 or over increased by 2.66 million during the period of 2010-2021. This made up 82 percent of the

Oct. 31, 2022