While South Korea grapples with the rising new coronavirus infections, some market watchers are of the view that the central bank is likely to push for a base rate cut to minimize the downside economic impacts. Though many analysts are inclined toward a rate freeze scenario, the current economic situation could force the Bank of Korea to stipulate a record-low key interest rate, according to some. The three-year Treasury bond rate stood at 1.18 percent as of Friday, down 0.14 percentage poin

Economy Feb. 23, 2020

The COVID-19 outbreak is likely to deliver a severe blow to the South Korean economy, especially in the retail sector and real estate investments, according to global real estate service provider Cushman & Wakefield. Asia’s fourth-largest economy’s growth prospects in the near term will be affected as the fast-spreading coronavirus disrupts supply chains, reduces exports and weakens consumer sentiment, the company said in its recent report on the Asia-Pacific region. “

Market Feb. 23, 2020

South Korea’s government on Thursday unveiled additional regulations to curb housing prices, this time focusing mostly on Seoul’s outskirts that have recently gained popularity. The latest measures marked the 19th housing-related regulations announced since the Moon Jae-in administration took office in May 2017. They were also the first to focus primarily on non-Seoul areas. The Ministry of Economy and Finance, the Ministry of Land, Infrastructure and Transport, and the Financi

Economy Feb. 20, 2020

Looking into a major hedge fund misselling fiasco involving Lime Asset Management, South Korea’s financial watchdog is likely to narrow its focus on three major vendors -- Shinhan Investment, Woori Bank and KEB Hana Bank -- officials said Tuesday. Shinhan Investment is facing additional allegations that it sold the disputed financial products with full awareness of their flaws. The Financial Supervisory Service is slated to kick off its first on-site investigation of the country&rsquo

Market Feb. 18, 2020

South Korea saw its export prices fall on-year in January, mainly due to the strengthening of the Korean won against the US dollar, central bank data showed Friday. The export prices index in terms of Korean won came to 96.59 last month, according to preliminary data released by the Bank of Korea. The figure was down 0.8 percentage point from a month earlier and down 2.8 percent from a year earlier. “The export price index prolonged an on-month downturn but the pace of the decrease sl

Economy Feb. 14, 2020

The Financial Services Commission on Thursday reduced the amount of fines imposed on Woori Bank and KEB Hana Bank over their disputed misselling of derivative-linked financial products last year. By altering the sanctions previously decided by the market watchdog Financial Supervisory Service, the regulator is being accused of playing a power game and taking sides with the industry, although it has vehemently refuted such doubts. The FSC’s advisory panel Securities and Futures Commiss

Market Feb. 13, 2020

JB Financial Group, the holding group of North Jeolla Province-based Jeonbuk Bank, posted a record-high net profit in 2019 on the back of its balanced business portfolio and overseas expansion. The banking group recorded 341.9 billion won ($290 million) in net profit last year, up 41.6 percent from a year earlier and hitting an all-time high, officials said Wednesday. Its BIS capital adequacy ratio -- barometer established by the Switzerland-based Bank for International Settlements to meas

Market Feb. 12, 2020

South Korea saw its jobless rate fall with job additions hitting the highest level in more than five years in January, on the back of the government’s continued fiscal efforts to expand the job market for the elderly, data showed Wednesday. But as the improved figures did not properly reflect the latest impact of the new coronavirus COVID-19, the government suggested a pessimistic outlook for this month. The nation’s unemployment rate fell 0.4 percentage point on-year to 4.1 pe

Economy Feb. 12, 2020

With the feud between the Financial Supervisory Service and Woori Financial Group over the latter’s leadership escalating, all eyes are on the final decision of regulator Financial Services Commission. The FSC’s advisory panel Securities and Futures Commission, in its biweekly meeting on Wednesday, will review the sanctions slapped on banking group chiefs over the misselling of derivative-linked fund products, officials said Tuesday. Late last month, the financial waatchdog decide

Market Feb. 11, 2020

The conflict between Woori Financial Group and South Korea’s financial watchdog has escalated over the disputed leadership of its top executive in light of the alleged extensive financial product misselling. While the group is gearing up to prolong the term of incumbent Chairman Sohn Tae-seung at all costs, the Financial Supervisory Service is set to corner it with a new information-theft case. The FSS on Monday decided to summon its sanctions committee over allegations that Woori Bank

Market Feb. 10, 2020

The new coronavirus outbreak that originated in China is affecting South Korea as global investment banks and research institutes are drastically lowering their economic growth outlook for this year. While the government still maintains its forecast of 2.4 percent growth, some skeptical research institutes have slashed the figure -- with the lowest estimate at 1.5 percent. According to the latest survey conducted by Bloomberg on key investment banks and institutes, respondents predicted that

Economy Feb. 9, 2020

The vacancy rate of Grade A offices in Seoul reached a 10-year low last year as landmark buildings in central business districts welcomed new tenants, global real estate service provider Jones Lang LaSalle said Thursday. The latest quarterly report of JLL Korea showed that the vacancy rate for Grade A offices in the capital city came to 7.7 percent in October-December last year, down 1.9 percentage point on-quarter, marking the lowest since the third quarter in 2010. The key business district

Market Feb. 6, 2020

The South Korean government said Wednesday that it will offer special tax benefits to owner-operators and small businesses, in an effort to minimize the economic impact of the new coronavirus outbreak. It also vowed to prevent mass outbound shipments of face masks and hand sanitizers, of which supplies are running low amid the increasing number of confirmed cases here. “(The government) will prescreen the mass outbound shipments by changing export procedures for masks and hand sanitiz

Economy Feb. 5, 2020

Patent applications for masks have increased notably in recent years, according to South Korea’s patent administrator, reflecting growing concerns about microfine dust and epidemics, such as the new coronavirus outbreak. The number of patent applications here for antibacterial face masks came to an annual average of 68 during the 2014-2018 period, almost double the figure for the previous five years, the Korean Intellectual Property Office said Tuesday in a release. The individual ann

Market Feb. 4, 2020

Investment in South Korean commercial real estate will remain upbeat this year, with total transactions exceeding 10 trillion won ($8.4 billion), according to leading US-based commercial real estate service provider CBRE on Tuesday. This anticipated yearly figure falls lower than the record-high 16 trillion won seen in 2019, but was on a par with the country’s five-year average. “Record-low interest rates and global economic instability are leading individual investors to focus

Market Feb. 4, 2020