Central bank chief refutes rumors of government intervention in rate hike

South Korea’s monetary policy chief on Friday denied that the central bank’s latest rate hike was aimed at boosting the government’s real estate measures, which have failed to cool down the nation’s heated property market. In a parliamentary audit held Friday, Lee refuted rumors that the Bank of Korea’s first pandemic-era rate hike carried out in August, was a move pressured by the government. The latest rate hike by 25 basis points to 0.75 percent ended more th

Oct. 15, 2021

NH All One REIT pushing for stock market listing in Nov.

The real estate investment trust (REIT) unit of major bank holding firm NH Financial Group Inc. said Friday it is seeking to get listed on the South Korean main stock market in November. NH All One REIT said it began its initial public offering (IPO) process as its registration statement, which was filed with the country's financial watchdog late last month, came into effect. The company said it is planning to sell 28.1 million shares and raise 140.5 billion won ($119 million), with its IPO pr

Oct. 15, 2021

S. Korea's finance chief voices concerns over US info-sharing request for chipmakers

WASHINGTON -- South Korea's finance minister on Thursday voiced concerns about the US's request for Korean chipmakers to share information on their supply chains. Finance Minister Hong Nam-ki relayed Korean chipmakers' concerns about Washington's request during his meeting with US Treasury Secretary Janet Yellen in Washington D.C., according to his ministry. The meeting was held to discuss bilateral and global economic issues, including global supply chain disruptions. It marked their first ga

Oct. 15, 2021

Auto exports dip by more than 20% in Sept. amid chip shortage

South Korea's exports of automobiles fell more than 20 percent last month, ending eight months of on-year growth, amid the extended global supply shortage of automotive chips and fewer working days, data showed Friday. Outbound shipments of automobiles reached 151,689 units in September, down 20.7 percent from a year earlier, according to the data compiled by the Ministry of Trade, Industry and Energy. In terms of value, exports also marked a 6.1 percent on-year decrease to $3.56 billion, the

Oct. 15, 2021

BOK continues to normalize monetary policy to ease 'financial imbalances'

The Bank of Korea will continue adjusting its accommodative monetary policy and determine the timing of another rate hike in a way that could ease "financial imbalances" caused in part by rising household debt, Gov. Lee Ju-yeol said Friday. Lee made the remarks days after the central bank kept its policy rate unchanged at 0.75 percent for October but hinted at the possibility of an additional rate increase before the end of this year to rein in inflation and household debt. "Fin

Oct. 15, 2021

S. Korea to resume discount coupon program to spur spending

South Korea plans to resume discount coupon programs aimed at boosting private spending as the country is preparing to move into a phase of "living with COVID-19" in early November, a senior government official said Friday. Except for food delivery via apps, the country suspended the coupon programs for sports, accommodations, tourism, cultural performances, and railway and bus service due to the resurgence of virus cases. The government earlier said the resumption will depend on the

Oct. 15, 2021

S. Korea, UAE agree to push for free trade deal

South Korea and the United Arab Emirates (UAE) announced Thursday that they will launch official talks toward a bilateral free trade agreement, Seoul‘s trade ministry said.　 Trade Minister Yeo Han-koo met his UAE counterpart, Thani Ahmed Al Zeyoudi, in Dubai, and issued a joint statement that calls for pushing to forge a Comprehensive Economic Partnership Agreement (CEPA), according to the Ministry of Trade, Industry and Energy. The CEPA is a type of free trade agreement that emphasize

Oct. 14, 2021

[News Focus] Gasoline prices reach 82-month high in Korea

SEJONG -- South Korea’s gasoline prices climbed to the highest in almost seven years, in line with a spike in international crude prices over the past month amid steeply rising demand for petroleum worldwide. The situation, which could worsen further, is expected to pose a tough burden to some manufacturers and households, as long as oil producers choose not to increase output. According the Korea National Oil Corp., gasoline prices reached 1,695.98 won ($1.42) per liter on Thursday. Th

Oct. 14, 2021

New global digital tax will push up Korea’s tax revenue: minister

The implementation of the new global digital tax regime will lead to a small increase in tax revenue for the South Korean government, the country’s finance minister said Thursday. The two-pillar tax proposal on taxing the digital economy and ushering in a global minimum tax rate, spearheaded by the Organization for Economic Cooperation and Development, was endorsed by 136 countries Friday. Pillar one aims to reallocate some tax revenue from where multinationals post profit to where the

Oct. 14, 2021

Toss Bank halts loan services on authorities’ debt limit

Toss Bank, South Korea’s third internet-only bank, said on Thursday that it will suspend new loans until the end of this year, Toss Bank, South Korea’s third internet-only bank, said on Thursday that it will suspend new loans through the end of this year, after financial authorities declined to increase the new bank’s lending limit. The banking arm of fintech giant Viva Republica said its loan limit of 500 billion won ($422 million) had been exhaus

Oct. 14, 2021

Loan rules for home rentals to be eased: financial regulator

South Korea will ease tight regulations on loans taken out for home rentals as part of efforts to protect people in actual need of borrowing as financial authorities are set to unveil additional measures to rein in household debt this month, the head of the country's financial regulator said Thursday. In a brief meeting with reporters, Koh Seung-beom, the chief of the Financial Services Commission (FSC), said that controls on such loans for the "jeonse" arrangement will be managed in

Oct. 14, 2021

S. Korea, UAE agree to push for free trade deal

South Korea and the United Arab Emirates (UAE) announced Thursday that they will launch official talks toward a bilateral free trade agreement, Seoul's trade ministry said. Trade Minister Yeon Han-koo met his UAE counterpart, Thani Ahmed Al Zeyoudi, in Dubai, and issued a joint statement that calls for pushing to forge a Comprehensive Economic Partnership Agreement (CEPA), according to the Ministry of Trade, Industry and Energy. The CEPA is a type of free trade agreement that emphasizes a bro

Oct. 14, 2021

Wine imports almost double this year amid pandemic

South Korea's wine imports nearly doubled in the first eight months of 2021 from a year earlier as more people enjoyed drinking at home and alone amid the coronavirus pandemic, data showed Thursday. Asia's fourth-largest economy imported $370.5 million worth of wine in the January-August period, up 96.5 percent from a year earlier, according to the data by the Korea Customs Service and industry sources. The figure surpassed last year's imports worth about $330 million and exceeded those of bee

Oct. 14, 2021

Seoul will take steps if necessary to stabilize FX market: finance minister

WASHINGTON -- The South Korean government will take market-stabilization steps should there be increased volatility in the foreign exchange market caused by abnormal factors, such as speculation, Finance Minister Hong Nam-ki said Wednesday. Hong, however, noted the recent fluctuations in the local FX market were largely due to external economic risks. "When it comes to the foreign exchange, the government cannot but accept changes caused by the market supply and demand, but it is closely

Oct. 14, 2021

Export prices up for 10th straight month in September

South Korea's export prices gained for the 10th straight month in September, driven by price hikes of energy and chemical products, central bank data showed Thursday. The country's export price index stood at 114.18 in September, up 1 percent from the previous month, according to the preliminary data from the Bank of Korea (BOK). The figure represented the 10th straight month of an on-month rise. From a year earlier, the index jumped 20.2 percent, the eighth consecutive on-year growth, the dat

Oct. 14, 2021

At G-20 meeting, Korea‘s fiscal chief stresses expansionary policy

South Korea’s Economy and Financial Minister Hong Nam-ki has said that the government will keep expansionary policies next year as the country eyes an economy recovery and return to “normal life” out of the COVID-19 pandemic. “We’re gradually preparing to go back to normalcy by increasing the vaccination rate and the country’s central bank is gradually adjusting its accommodative monetary policy,” Hong, who also doubles Deputy Prime Minister, told Kr

Oct. 13, 2021

Export-Import Bank signs MOU with Greek shipping company to finance new orders

The Export-Import Bank of Korea said Wednesday it signed an memorandum of understanding with Angelicoussis to provide financial assistance for South Korean shipbuilders securing fresh orders of eco-friendly fleets from the Greek shipping company. Aimed at supporting Korean shipbuilders in securing overseas orders, Korea Exim Bank Chairman Bang Moon-kyu visited Angelicoussis headquarters in Kallithea on Friday, according to officials. The financial assistance will be carried out to Korean build

Oct. 13, 2021

S. Korea sees largest job growth in 7 years over surge in contactless services, vaccinations

South Korea’s economy added the largest number of jobs in more than seven years in September, government data showed Wednesday, with officials citing a surge in contactless services backed by digitalization of industries and high vaccination rate as key catalysts. The economy added 671,000 jobs on-year to 27.68 million in September, Statistics Korea data showed. This marked the largest job growth since March 2014, when the economy added 726,000 jobs and also the seventh consecutive month

Oct. 13, 2021

S. Korea to continue expansionary fiscal policy next year: finance minister

South Korea's top economic policymaker has said the government plans to maintain expansionary fiscal policy next year in a bid to prop up the economic recovery, Seoul's finance ministry said Wednesday. Finance Minister Hong Nam-ki made the remarks during his meeting with Kristalina Georgieva, managing director of the International Monetary Fund, in Washington, D.C. on Tuesday on the sidelines of the G-20 finance ministers and central bank governors meeting. Hong said South Korea's central bank

Oct. 13, 2021

ICT exports hit fresh monthly high in September

South Korea's exports of information and communication technology (ICT) products reached an all-time high in September on the back of solid global demand for chips and displays, data showed Wednesday. Outbound shipments of ICT products came to $21.34 billion last month, up 21.1 percent from a year earlier, according to the data from the Ministry of Trade, Industry and Energy. The September figure marked an all-time high since the government began compiling the data in 1996, and the largest for

Oct. 13, 2021