Global investors welcome Seoul's efforts to revamp financial regulations

Global investors have hailed South Korea's latest efforts to revamp its financial regulations, such as the extension of trading hours, pointing out they will help the country attract more investment, the finance ministry said Wednesday. The assessment came during Finance Minister Choo Kyung-ho's meetings with representatives from major US investors, including Blackstone, the Bank of New York Mellon, and Goldman Sachs, earlier this week in New York on Monday and Tuesday, according to th

April 12, 2023

BOK freezes rate once again

The Bank of Korea kept the base rate unchanged for a second consecutive time, as inflation appears to be somewhat on the wane while the economy remains slow. The central bank decided to hold the rate at 3.5 percent at its rate-setting meeting on Tuesday, matching market expectations that the BOK's rate hike cycle of 1 1/2 years has come to a halt. “Inflation is projected to continue slowing down although it will remain above the target level for a considerable time. Uncertainties su

April 11, 2023

Big firms' borrowing costs soar in 2022 on high interest rates

Large South Korean firms saw their interest expenses spike more than 50 percent in 2022 from a year earlier due to rising interest rates, a corporate tracker said Tuesday. The combined interest cost of 377 out of the country's top 500 firms by sales stood at 39.9 trillion won ($30.2 billion) last year, up 50.2 percent from a year earlier, according to the Leaders Index. The surge came as South Korea's central bank has remained hawkish in an effort to curb persistently high inflation. T

April 11, 2023

Exports down 8.6 % during first 10 days of April

South Korea's exports fell 8.6 percent on-year in the first 10 days of April, data showed Tuesday, due to the continued downcycle in the global chip industry. The country's outbound shipments stood at $14 billion in the April 1-10 period, compared with $15.3 billion a year earlier, according to the data from the Korea Customs Service. Imports shed 7.3 percent on-year to $17.4 billion during the cited period, resulting in a trade deficit of $3.41 billion. In March, outbound shipments fe

April 11, 2023

S. Korea not likely to enjoy strong trade surplus with China anymore: Choo

South Korea's trade surplus with China is expected to be weaker than in the past down the road, although it is unlikely to result in a deficit, the finance minister has said. "It is clear that China will not give our economy a chance to rebound as quickly as it has in the past," Finance Minister Choo Kyung-ho said during a meeting with South Korean reporters in New York on Monday. Exports to China, South Korea's top trading partner, plunged 33.4 percent on-year in March to re

April 11, 2023

Falling revenue threatens tax cuts

The South Korean government may dial back the scale of tax cuts aimed at curbing inflation, as tax revenue for this year is likely to fall below the estimate. According to the Ministry of Economy and Finance, Korea’s tax revenue amounted to 54.2 trillion won ($41 billion) in the first two months of this year, marking a 15.7 trillion won drop from the 69.9 trillion won recorded in the same period last year. If the tax revenue from March to December is similar to the year before, the total

April 10, 2023

S. Korea posts current account deficit for 2nd straight month in Feb.

South Korea posted a current account deficit for the second straight month in February as exports remained sluggish amid global recession woes, central bank data showed Friday. The country's current account shortfall came to $520 million in February, following a record deficit of $4.21 billion a month earlier, according to the preliminary data from the Bank of Korea. It also swung from a surplus of $5.87 billion a year earlier. February's deficit came as the goods balance worsened due

April 7, 2023

[KH Explains] BOK likely to freeze rate again

Local market watchers expect the Bank of Korea to keep the base rate unchanged once again at its rate-setting meeting on Tuesday, in light of the recent slowdown in inflation. However, the recent decision to cut oil production by global oil cartel OPEC+ could complicate the situation, exacerbating inflationary pressures. Recent figures show that inflation has passed its worst peak in Korea, easing the pressure on the central bank, which has repeatedly stressed it prioritizes price stabilization.

April 6, 2023

[Contribution] Korea’s Treasury bond market to take big leap through WGBI inclusion

By Choi Sang-dae Vice Minister of Economy and Finance In the history of Korea’s treasury bond market development, 2002 is remembered as the year that marked a significant milestone -- inclusion into the Bloomberg-Barclays Global Aggregate Index, one of the world's three major bond indices. It was the first step toward globalization of the nation’s treasury market that led to more than a fivefold increase in foreign investment in just one year. For several years into 2002, th

April 6, 2023

FSC urges banks to intensify competition, improve services for customers

South Korea's financial regulator on Thursday urged banks to beef up competition and provide better services amid criticism that they sought easy profits from loan-deposit margins without making sufficient efforts to diversify income sources. Banks have been under fire for reaping record profits from interest income last year and handing out hefty bonuses to employees while people are suffering from high borrowing costs caused by the central banks' monetary tightening to tame inflation

April 6, 2023

Foreign reserves grow in March on dollar's descent

South Korea's foreign reserves grew in March as the dollar's descent increased the conversion value of holdings in other currencies, central bank data showed Wednesday. The country's foreign reserves had come to $426.07 billion as of end-March, up $780 million from the previous month, according to the data from the Bank of Korea. The dollar's fall last month boosted the converted value of holdings denominated in other currencies, the BOK explained. The dollar index that gauge

April 5, 2023

S. Korea to diversify trade partnerships, portfolio amid uncertainties: finance minister

South Korea will diversify its free trade partnerships with more nations to address the growing economic uncertainties and jitters in the global supply chain, the finance minister said Wednesday. Finance Minister Choo Kyung-ho made the remark ahead of a closed-door meeting, where economy-related ministers discussed various issues, including expanding free trade deals and coping with protectionism from major countries, according to the Ministry of Economy and Finance. "Recently, the global e

April 5, 2023

Busan could generate W60tr as host of 2030 World Expo

Competition is fierce for countries around the world to win the bid to host the 2030 World Expo -- not only would the event significantly raise a nation's status, but it could also potentially provide a huge boost to the region's economy and the domestic business ecosystem. According to research conducted by South Korea's 2030 Expo Bid Promotion Headquarters, if Busan wins the contest to host the event, the country will be able to raise more than 60 trillion won ($45 billion) duri

April 4, 2023

National debt hits all-time high on pandemic spending

South Korea's national debt is growing at an alarming pace, posting a record high of over 1,067 trillion won ($811 billion) last year, the Finance Ministry said Tuesday. The country’s debts – the amount owed by central and provincial governments, excluding state and public bonds owned by national institutions such as the National Pension Service -- came to a record 1,067.7 trillion won last year, according to a report on the 2022 national settlement of accounts approved at a C

April 4, 2023

S. Korea's consumer prices up 4.2 % in March

South Korea's on-year growth in consumer prices fell to the lowest level in a year in March, data showed Tuesday, in the latest signal that inflation could slow throughout this year. Consumer prices, a key gauge of inflation, rose 4.2 percent last month from a year earlier, slowing from the rise of 4.8 percent tallied in February, according to the report from Statistics Korea. It marked the lowest level since a 4.1-percent growth tallied in March 2022. Inflation stayed above 2 percent --

April 4, 2023

[K-Financiers] Mirae Asset sets down roots in Vietnam

This is the fifth installment of a series of interviews on chiefs who run overseas units of Korean asset management, banking and securities companies, examining their key strategies for global expansion. -- Ed. Taking a step beyond simply adapting to the local market, Seoul-based securities firm Mirae Asset Securities’ Vietnamese arm looks to fully establish itself in the Southeast Asian country. Since 2007, South Korea's largest securities firm Mirae Asset Securities has been wor

April 3, 2023

Korea fails to join World Government Bond Index

Despite the government’s efforts, Korea failed to join World Government Bond Index, a global benchmark that measures the performance of sovereign bonds. Financial Times Stock Exchange Russell, the index operator of WGBI, announced its Fixed Income Country Classification on Thursday. Korea will remain on the watch list, being placed on hold for its index inclusion until the next decision. Korea, which had been on the watch list, a prerequisite for its potential inclusion, since September,

March 31, 2023

KB earns top rating for ESG management

KB Financial Group announced Wednesday that it earned the title of the first and only Korean financial firm to receive the top AAA rating on the 2022 MSCI ESG Index -- an index organized by Morgan Stanley Capital International which evaluates companies based on their environmental, social and governance performance. The MSCI ESG Index measures a company’s management of long-term, financially relevant ESG risks and opportunities relative to their peers, according to MSCI. The rating categor

March 29, 2023

Korea cuts tourist red tape, aims to triple visitors this year

  South Korea will exempt visa-free foreign entrants from using the electronic travel authorization system, or K-ETA, normally required when entering the country until next year, in a bid to rekindle tourism, the Finance Ministry said Wednesday. Of 112 visa-waiver countries, the exemption scheme for the Electronic Travel Permit System will be applied to 22 select countries with a large volume of visitors and low rates of visa application rejection, including the United States, Japan, Hong K

March 29, 2023

[KH Explains] Why Korea is pushing for World Government Bond Index inclusion

South Korea is expected to join the World Government Bond Index in September, a crucial step for it to attract more foreign funds, according to industry sources on Wednesday. WGBI, managed by Financial Times Stock Exchange Russell, is one of the three major government bond indices, along with the Bloomberg-Barclays Global Aggregate Index and JP Morgan Government Bond Index-Emerging Markets. Tracked by funds worth $2.5 trillion to $3 trillion, it measures the performance of sovereign bonds from 2

March 29, 2023