BOK extends rate pause amid mounting US, China pressure

The Bank of Korea on Thursday kept its policy rate unchanged at 3.5 percent, maintaining it a fifth consecutive time amid growing China fears and a widened rate gap with the US. In a rate-setting meeting presided over by BOK Gov. Rhee Chang-yong, the six-member monetary policy board unanimously voted to maintain the current policy rate, which has stayed at 3.5 percent since February. “The board decided to hold the rate, projecting it would take significant time for the inflation rate, whic

Aug. 24, 2023

BOK holds rate at 3.5% amid China fears

The Bank of Korea on Thursday kept its policy rate unchanged at 3.5 percent, holding it for the fifth consecutive time since February. Recent economic indicators show inflation could rebound within this year as the base effect from last year’s dip in international oil prices wears off. Oil prices have been on the rise recently, too, adding to the growing inflationary pressure on the Korean economy, which heavily dependent on energy imports. Chinese deflation and default risks from its real

Aug. 24, 2023

Biz outlook hits 6-month low in August amid uncertainties

South Korea's business sentiment fell to the lowest level in six months in August amid continued uncertainties over the economy and monetary tightening here and abroad, a central bank poll showed Wednesday. Manufacturers' business sentiment index for August came to 67, down from 72 tallied for the previous month, according to the survey by the Bank of Korea. The index marks the lowest since February this year, when the comparable reading was 63. The index measures corporate prospects f

Aug. 23, 2023

Corporate direct financing down 32.8% in July

Corporate direct financing in South Korea contracted 32.8 percent in July from the previous month, data showed Wednesday. Local companies raised a combined 16.07 trillion won ($12.03 billion) by selling stocks and bonds last month, down 7.85 trillion won from June, according to the Financial Supervisory Service. Direct financing refers to raising funds directly from the stock and bond markets without borrowing from banks and other financial institutions. Stock sales shot up 58.6 percent on-month

Aug. 23, 2023

Exports down 16.5% during first 20 days of August

South Korea's exports fell 16.5 percent on-year in the first 20 days of August due to sluggish shipments of chips and petroleum products, data showed Monday. The country's outbound shipments reached $27.9 billion in the Aug. 1-20 period, compared with $33.3 billion tallied a year earlier, according to the data from the Korea Customs Service. Imports fell 27.9 percent on-year to $31.4 billion during the period, resulting in a trade deficit of $3.6 billion. South Korea's exports fel

Aug. 21, 2023

Korea’s economic recovery falters as China's deflation looms

The South Korean economy faces fresh risks from China, with no immediate breakthrough in sight to recover its faltering exports. Recent figures show worsened woes in Beijing, indicating the country’s economy could be on a path of decline. China has slipped into deflation, reporting a 0.3 percent drop in consumer prices in July on-year. It was the first time in 29 months for the figure to nosedive to a minus range. Further data showed its retail sales, industrial output and investment all

Aug. 20, 2023

S. Korea to closely monitor consumer prices of key items ahead of Chuseok

South Korea's finance ministry said Friday it plans to closely monitor consumer prices of key items ahead of the Chuseok holiday amid lingering economic uncertainties. "We plan to thoroughly manage the supply of highly demanded products for Chuseok, and roll out various promotional events under ties with the retail sector," First Vice Finance Minister Bang Ki-sun said during a meeting with economy-related vice ministers. The Chuseok holiday, the autumn harvest celebration, falls i

Aug. 18, 2023

Auto exports up 15% in July on strong eco-friendly car sales

South Korea's car exports jumped 15 percent on-year in July on the back of solid global demand for eco-friendly cars, the industry ministry said Thursday. The value of outbound shipments of automobiles came to $5.9 billion last month, compared with $5.14 billion a year earlier, according to data from the Ministry of Trade, Industry and Energy. It is the highest figure for any July, it added. During the first seven months of 2023, auto exports surged 41 percent on-year to $41.55 billion, and

Aug. 17, 2023

Import prices up in July on higher oil prices

South Korea's import prices rose in July largely due to the higher price of crude oil, central bank data showed Thursday. The import price index rose 0.4 percent last month from a month earlier, following a 3.9 percent fall tallied in June, according to the preliminary data from the Bank of Korea. The rise came as the cost of crude oil rose. Import prices are a major factor that determines the path of the country's overall rate of inflation. The Dubai crude price, South Korea's be

Aug. 17, 2023

Korean won slides amid strong US dollar, China fears

The Korean won declined below 1,340 won against the dollar during trading hours Wednesday, marking a new three-month low and reflecting increased volatility from the US’ stronger-than-expected economy and deflation worries in China, boosting the dollar's safe-haven appeal. The Korean won against the greenback opened at 1,340 won on Wednesday, 9.1 won higher than the previous trading day. Shortly after trading began, it fell back to 1,341 won, the weakest since the 1,343 won seen earli

Aug. 16, 2023

Container freight rates for major destinations down in July

Outbound container shipping costs for major destinations, including the United States and the European Union, fell in July from a month earlier, data showed Wednesday. The average rate for a 40-foot container from South Korea to the US west coast came to 4.37 million won ($3,265) in July, down 5 percent from the previous month, the data from the Korea Customs Service showed. Rates for the US east coast fell 1.9 percent to 4.65 million won on-month in July, with those for the EU routes moving dow

Aug. 16, 2023

SPAC listing market stable after rules eased: KRX

The Korea Exchange, the nation’s sole bourse operator, said Tuesday that the stock market for special purpose acquisition companies, or SPACs, remains stable after price fluctuations in the first months of eased regulations. A SPAC is a publicly traded shell corporation that is formed to raise capital through listings to acquire or merge with an existing company. Most SPACs make their debut at the public offering price of 2,000 won ($1.50) per share as mergers and acquisitions could be d

Aug. 15, 2023

S. Korea retakes No. 1 spot in global shipbuilding orders in July

South Korea recaptured the top spot in new global shipbuilding orders for the first time in five months in July, industry data showed Monday. Local shipyards clinched orders totaling 1.46 million compensated gross tons to build 29 ships, accounting for 44 percent of the global total of 3.33 million CGTs, according to London-based Clarkson Research Services Ltd. The world total was up 22 percent from the same month a year earlier. It marks the first time since February for South Korean shipbuilde

Aug. 14, 2023

Frozen Iranian funds released

Iranian funds worth an estimated $6 billion, frozen in bank accounts in Korea, have been released, following the US and Iran's tentative agreement to engage in a prisoner swap in exchange for Tehran's access to the blocked funds. All of Iran’s frozen funds in Korea have been unblocked, Central Bank of Iran Gov. Mohammad Reza Farzin said through a post written in Persian on social platform X on Saturday. The central bank chief wrote that $7 billion in Iranian assets in Korea have

Aug. 13, 2023

EcoPro lands MSCI Korea Index

EcoPro, South Korea's leading producer of secondary battery materials, will be added to the Morgan Stanley Capital International Korea Index, alongside three other domestic companies. A total of four Korean companies' stocks -- EcoPro, Hanwha Ocean, JYP Entertainment, and Hanmi Semiconductor -- made the listing for MSCI Korean Index, according to the results of the MSCI August Index Review released Thursday. Meanwhile, two companies -- CJ Group and E-mart -- have been removed from th

Aug. 11, 2023

Exports down 15.3% during first 10 days of Aug.

South Korea's exports fell 15.3 percent on-year in the first 10 days of August on weak chip and petroleum exports, data showed Friday. The country's outbound shipments reached $13.2 billion in the Aug. 1-10 period, compared with $15.6 billion tallied a year earlier, according to the data from the Korea Customs Service. Imports plunged 30.5 percent on-year to $16.2 billion during the period, resulting in a trade deficit of $3 billion. By sector, exports of semiconductors moved down 18.1

Aug. 11, 2023

Industries upbeat about return of Chinese tourists

The Chinese government has decided to allow group tours to South Korea after a six-year hiatus instigated by diplomatic bickering between Seoul and Beijing, as well as the COVID-19 pandemic. China's Ministry of Culture and Tourism on Thursday said it would lift restrictions on its nationals to travel in groups to 78 countries around the world, including Korea, the United States and Japan. The ban on Chinese group tours to Korea was removed for the first time since it was put in place as

Aug. 10, 2023

S. Korea's fiscal deficit narrows on-year through June

South Korea's fiscal deficit narrowed on-year over the first six months of 2023, data showed Thursday, amid lower revenue and expenditures. The managed fiscal balance, a key gauge of fiscal health calculated on a stricter term, posted a deficit of 83 trillion won ($63.9 billion) through June, compared with 101.9 trillion won tallied a year earlier, according to the Ministry of Economy and Finance. South Korea's tax revenue came to 178.5 trillion won during the cited period, down 39.7 t

Aug. 10, 2023

US policy on restricting China investment to have limited impact on S. Korea: govt.

South Korea said Thursday the latest executive order limiting US investment in some Chinese technology sectors is expected to have only a limited impact on South Korean companies. On Wednesday, the White House vowed to restrict investment in "countries of concern" in certain technology sectors that could pose threats to its national security while adding only China, including Hong Kong and Macau, to the list. The areas include "sensitive technologies and products in the semiconduc

Aug. 10, 2023

S. Korea to proactively cope with France's new EV subsidy policy: ministry

South Korea's industry ministry said Wednesday it will proactively cope with France's new subsidy policy for electric vehicles, amid concerns the move may weigh down automobile exports. The move came as France plans to apply a score system that tracks the carbon footprint of the manufacturing process of EVs, which is set to be implemented in January 2024, followed by a six-month grace period, according to the Ministry of Trade, Industry and Energy. France plans to receive opinions on t

Aug. 9, 2023