Korea’s central bank chief sees more rate hikes coming

The chief of South Korea’s central bank hinted at more rate hikes to come on Friday to combat high inflation, while stressing that the possible currency swap deal with the US is only a short-term solution. “We believe that we need to maintain our stance to raise rates going forward in order to prevent entering a stagnant state of high inflation,” Bank of Korea Gov. Rhee Chang-yong told lawmakers during a parliamentary audit. “The BOK has so far carried out a series of s

Oct. 7, 2022

BOK to maintain monetary tightening stance amid high inflation

South Korea's central bank said Friday it will maintain its position to raise interest rates going forward to combat inflation that is expected to stay in the 5-6 percent range "for a considerable period of time." In a report submitted to lawmakers for a parliamentary audit, the Bank of Korea (BOK) voiced concerns a sharp slide of the local currency against the US dollar will likely apply upward pressure on prices. "It is of urgent need to keep a lid on inflation expectations

Oct. 7, 2022

S. Korea posts current account deficit in Aug. amid slowing exports, mounting import bills

South Korea posted a current account deficit for the first time in four months in August as exports grew at a slower pace and import bills continued to mount amid high crude oil and raw material prices, central bank data showed Friday. The country's current account shortfall came to $3.05 billion in August, a sharp turnaround from a surplus of a revised $790 million tallied a month earlier, according to the preliminary data from the Bank of Korea (BOK). This marked the first time in four mo

Oct. 7, 2022

Korea braces for oil price spikes following OPEC+’s output cut

SEJONG -- South Korea’s economic policymakers are likely to adopt another round of contingency plans to minimize possible instability in consumer prices, as the OPEC+ has decided to curb oil production. The oil cartel’s decision comes after some local policymakers and market insiders claimed that Korea’s inflation was considered to have peaked in July, when consumer price growth posted 6.3 percent. At a meeting in Vienna on Wednesday, the OPEC+ publicized its plan to reduce c

Oct. 6, 2022

Korea posts biggest drop in dollar reserves since 2008 as won plunges

South Korea’s foreign exchange reserves shrank by nearly $20 billion in September, the biggest monthly decline in 14 years, as authorities double down on efforts to prop up the quickly depreciating won that is now at a 13-year low against the US dollar. According to Bank of Korea data on Thursday, the reserves stood at $416.77 billion at the end of September, down $19.66 billion from $436.43 billion in August. That is the largest monthly dip since October 2008, when reserves fell by $27.4

Oct. 6, 2022

Foreign reserves shrink at fastest pace in 14 yrs in September amid strong dollar

South Korea's foreign reserves shrank at the fastest pace in about 14 years last month as authorities unloaded dollars to stall the local currency's excessive slide against the greenback, central bank data showed Thursday. The Bank of Korea (BOK), however, dismissed worries that the country's foreign reserves might not be sufficient enough to defend the won down the road and brace for a financial crisis. The country's foreign reserves had stood at $416.77 billion as of end-Se

Oct. 6, 2022

Pivot to big rate hike looms large as prices remain elevated

South Korea’s consumer prices eased in September for a second straight month, but the annual price increase is expected to stay as high as three times what the Bank of Korea sees as acceptable, the central bank said Wednesday, sharply increasing expectations of another 50 basis point rate hike next week. According to Statistics Korea data on Wednesday, the September consumer price index rose 5.6 percent from the same month a year earlier, down from 5.7 percent in August, when it slowed for

Oct. 5, 2022

FDI pledges to S. Korea hit record high through September: data

Foreign direct investment (FDI) pledges to South Korea rose 18.2 percent on-year during the first nine months of this year on the solid growth in investment in such advanced sectors as chips and batteries, the industry ministry said Wednesday. The country received $21.52 billion worth of FDI commitments during the January-September period, compared with $18.21 billion logged a year earlier, according to the data by the Ministry of Trade, Industry and Energy. It marked the highest amount ever for

Oct. 5, 2022

S. Korea's exports outlook worsens for Q4

South Korea's exports are expected to worsen in the fourth quarter of the year amid a global economic slowdown, a trade body said Wednesday. The Korea International Trade Association (KITA) said its export business survey index stood at 84.4 for the October-December period, down from 94.4 three months earlier and staying below par for three consecutive quarters. The index came to 96.1 in the second quarter of the year, falling below the benchmark 100 for the first time in two years. A readi

Oct. 5, 2022

Consumer prices grow at slower pace for 2nd month in Sept.

South Korea's consumer prices grew at a slower pace on-year for the second consecutive month in September on the back of slowed growth in prices of oil and agricultural products, data showed Wednesday, in yet another sign that inflation may have peaked. Consumer prices, a key gauge of inflation, rose 5.6 percent last month from a year earlier, slowing from a 5.7 percent rise in August, according to the data from Statistics Korea. In July, consumer prices increased at the fastest pace in alm

Oct. 5, 2022

Countries with high income inequality, debt suffer higher COVID deaths: report

Countries with high income inequality and national debt have reported more COVID-related deaths in the first year of the pandemic, a report showed Tuesday. Of the 38 Organization for Economic Cooperation and Development member nations, those with a high Gini coefficient -- a gauge of economic inequality such as levels of income -- and high national debt saw the most deaths from COVID-19 in 2020, a report released by the Korea Institute of Public Finance said. “Our research showed that if

Oct. 4, 2022

Stock market stabilization fund to be launched to ease downswings

Financial authorities plan to launch a stock market stabilization fund as part of efforts to counter downswings amid growing worries over global financial tightening and slowing economic growth, industry sources said Tuesday. Consultations are ongoing among relevant agencies with an aim to complete preparations for the launch of the around 10 trillion-won ($7 billion) fund within this month, according to the sources. The move comes as stock markets here have nose-dived this year on worries over

Oct. 4, 2022

4 in 10 households projected to be single-person by 2040

Four out of 10 households in South Korea are projected to be single-person by 2040, with the portion of families of four or more – once the most common form of family here – shrinking to 10 percent, a report showed Monday. According to a report compiled by KB Financial Group, the number of single-person households was 7.1 million, or 33.4 percent of the total, last year. And the figure is expected to reach some 9 million by 2040, taking up 37.9 percent of the total households here.

Oct. 3, 2022

Fiscal chief pins hopes on Korea’s entry to World Government Bond Index

SEJONG -- The nation’s top economic policymaker on Friday welcomed South Korea’s potential entry to the World Government Bond Index, predicting that if attained, it would foster a better environment for attracting foreign investment. The remarks from Deputy Prime Minister and Finance Minister Choo Kyung-ho came a day after London-based stock index provider FTSE Russell included Korea on the watch list for the WGBI -- a step that comes before a country’s endorsement as a regula

Sept. 30, 2022

Yoon says govt. will take necessary steps against financial volatility

President Yoon Suk-yeol said Friday the government will take necessary and timely steps to protect the people against increasing financial volatility. Yoon made the remark while presiding over a macrofinancial meeting with government and business officials, citing an "unprecedentedly strong dollar" and the US Federal Open Market Committee's decision last week to raise the interest rate. "The level of shock from the crisis that began from external factors will depend on how we

Sept. 30, 2022

Korea's top 100 property owners have 20,000 homes: data

SEJONG -- South Korea's top 100 multiple home owners hold more than 20,000 housing units collectively, worth more than 2.5 trillion won ($1.7 billion) combined, an opposition party lawmaker said Thursday, citing state data. This indicates that an individual was owning 206 units, worth 25.2 billion won, on the average, according to Rep. Kim Hoi-jae of the Democratic Party of Korea, quoting Statistics Korea data. The number of homes owned by the top 100 individuals increased by 20 percent in fou

Sept. 29, 2022

Tax revenue up W41tr through August

South Korea's tax revenue increased 41 trillion won ($28.8 billion) in the first eight months of this year compared with a year earlier as the collection of corporate and income taxes rose, the finance ministry said Thursday. Tax revenue amounted to 289.3 trillion won in the January-August period, compared with 248.2 trillion won the previous year, according to the ministry. In August alone, the government collected 28.3 trillion won in tax revenue, up 3.7 trillion won from a year ago. Sout

Sept. 29, 2022

European biz advocacy group calls for clarity, flexibility in S. Korea's EV regulations

The European Chamber of Commerce in Korea (ECCK) on Wednesday called for South Korea to consider revising regulations on electric vehicles and several other key sectors to provide more procedural clarity and flexibility in line with international standards. The ECCK made the recommendations to the South Korean government in its latest annual white paper for this year, which contains a total of 96 comments on the regulatory issues across 18 industries, including automotive, energy and environment

Sept. 28, 2022

S. Korea's global digital competitiveness ranking climbs to 8th spot: IMD

South Korea's global ranking in terms of digital technology competitiveness climbed to No. 8 this year, the science ministry said Wednesday, citing the International Institute for Management Development (IMD). According to the ministry, South Korea climbed four notches from last year's 12th spot in the 2022 IMD World Digital Competitiveness Ranking report. The country ranked 19th in 2017 and later reached the 14th and 10th spots in 2018 and 2019, respectively. The IMD, a Switzerland-ba

Sept. 28, 2022

Sales of top 500 firms jump 39% over 10 years

Sales of South Korea's top 500 firms have soared nearly 40 percent over the past 10 years with the information technology and electronics sector taking up the biggest share, a corporate tracker said Wednesday. The combined top line of the leading businesses stood at 3,286 trillion won ($2.3 trillion) in 2021, up 39 percent from a decade earlier, according to CEO Score. The IT, electronics and electric industry accounted for the largest percentage of the total at 17.3 percent last year, up 3

Sept. 28, 2022