The Bank of Korea kept the base rate unchanged at 3.5 percent Thursday, going for a fourth consecutive freeze as inflation has shown signs of cooling down significantly. The six-member monetary policy board unanimously voted for a rate freeze, while agreeing to keep the terminal rate at 3.75 percent, BOK Gov. Rhee Chang-yong said at a press conference held shortly after the rate-setting meeting. The central bank was able to maintain the rate, as inflation has been giving firmer signs of easing

Economy July 13, 2023

The Bank of Korea kept its key interest rate unchanged for the fourth consecutive time as inflation seems to be on the wane. The central bank decided to hold the rate at 3.5 percent at its rate-setting meeting on Thursday, keeping the base rate steady since February. The BOK’s decision falls in line with the market projection which assumed the central bank would maintain the rate as the consumer prices growth in June fell to the 2 percent range for the first time in 21 months. Korea’

Economy July 13, 2023

The Korean government plans to ease the visa quota for foreign workers to resolve growing labor shortage issues. “We will resolve the imbalance in the labor market by improving the working environment and using foreign human resources,” Finance Minister Choo Kyung-ho said at a meeting Wednesday. Choo said the government will lift the quota for the E-7-4 visa for skilled workers from 5,000 to 35,000 within the year and ease the standard on minimum annual income, which currently stands

Economy July 12, 2023

The Bank of Korea is expected to keep its key interest rate unchanged this week as recent economic indicators show signs of waning inflation. If the central bank maintains the policy rate at 3.5 percent at its rate-setting meeting scheduled to take place on Thursday, it would be its fourth consecutive freeze since February. Signs of inflation cooling have created room for the BOK to keep the rate at the same level. Korea’s consumer prices, a key gauge of inflation, rose by 2.7 percent in

Economy July 10, 2023

Shares of South Korean battery materials firm EcoPro rose to over 1 million won ($766.58) during trading hours Monday, surpassing a significant bar for a stock listed on Kosdaq. The stock price of EcoPro closed at 965,000 won, lower than its previous closing price of 988,000 won. It hit a record high of 1.01 million won earlier during the day. As of closing, the market cap of EcoPro stood at 25.69 trillion won, shoulder to shoulder with tech giants Kakao and Naver, which are worth 22.14 trillion

Market July 10, 2023

Korea and other Asian nations can be key players in the global supply chain, as countries wean off their dependence on China, a report issued by the Korea Chamber of Commerce and Industry suggested Wednesday. According to the report, Korea and other “Altasia” countries can be a substitute for China in the global trade scene. The term Altasia is a compound of alternative and Asia, encompassing 14 countries in Asia that could replace China in the global supply chain. The weekly newspap

Market July 5, 2023

The Korean government revised down its economic growth rate projection to 1.4 percent on Tuesday, as the exports sector struggles to rebound, delaying the economy's recovery to next year. The revision came as the Finance Ministry and other related ministries announced economic policy measures for second half of this year. The gross domestic product growth forecast was cut from the previous 1.6 percent to 1.4 percent. The ministry initially suggested that the Korean economy would see a rebou

Economy July 4, 2023

Korean investors have poured money into Japanese stocks this year, taking advantage of a weaker yen and the roaring Japanese stock market, according to data from the Korea Securities Depository on Monday. In recent months, the Korean currency has been traded in the 900 won range against 100 Japanese yen, as the Bank of Japan continues to maintain negative rates to spur the local economy. Backed by the record low yen, more local investors are scooping up Japanese shares. The KSD data showed that

Economy July 3, 2023

Though Korea’s sluggish economy was initially expected to improve in the latter half of the year, the recovery is slowing, as the country struggles with a prolonged export slump. The Finance Ministry is likely to lower slightly the economic growth rate forecast for 2023 from the previous 1.6 percent when it announces economic policy measures for the second half of the year on Tuesday. The Korean economy was initially expected to rebound in mid-2023 when China’s economy reopened and t

Economy July 2, 2023

South Korea and Japan agreed to resume a $10 billion currency swap deal after an eight-year suspension, showing bilateral economic ties are on a path of recovery. Finance Minister Choo Kyung-ho met with his Japanese counterpart Shunichi Suzuki in Tokyo on Thursday. It was the first time since 2016 for the top finance heads of Korea and Japan to hold an official one-on-one meeting. The new currency swap program will last three years and be based on the US dollar. A currency swap deal allows the e

Economy June 29, 2023

Dunamu, the operator of Korea's largest cryptocurrency exchange Upbit, has been leading the growth of next-generation technology with its experience in blockchain. The firm has been a pioneer in digital assets, introducing new technologies for lucrative investments. The operator joined hands with entertainment agency Hybe, the K-pop company behind boy band BTS, to launch Levvels, a joint venture that develops and launches non-fungible tokens based on the intellectual property of artists und

Market June 29, 2023

Abolishment of the “Korean age” system, which came into effect Wednesday, will not make a substantial difference in the local finance sector, as the industry has already been using the internationally recognized age counting system. The country’s top finance regulator Financial Supervisory Service launched a counseling center under its call center on Wednesday to respond to consumers experiencing difficulties with the new age system. The FSS, however, expects that the new age s

Market June 28, 2023

Talks on the minimum wage level for 2024 fell through Tuesday, two days before the deadline for the decision, after labor representatives walked out. The Minimum Wage Commission, which is composed of members spanning labor, business and the general public, was to its eighth round meeting to discuss the minimum hourly amount employers must pay their workers next year. But the meeting was cut short as labor representatives walked out of a meeting expressing their disapproval against the government

Economy June 27, 2023

Finance Minister Choo Kyung-ho expressed his concern for the Korean economy as China’s reopening has had only a limited impact, falling below expectations. "The chip industry is yet to recover and the reopening of China, a country which we have a lot of trade with, has not shown much effect,” Choo said at a meeting held with the local business industry on Monday. Representatives of midsized businesses here attended the meeting, including Korea’s largest sauce maker Sempio

Economy June 26, 2023

While Korean tourists are flocking to Japan to take advantage of a record-low yen, concerns are deepening among businesses over capital outflow and export slump in the coming months. The Korean currency closed in the 910 won ($0.70) range against 100 Japanese yen on Friday. The won-yen exchange rate had stayed above the 1,000-won range between 2019 and 2022, but the figure continued to fall this year to an eight-year low of 897.49 won last week. The cheaper yen comes as the Bank of Japan sticks

Economy June 25, 2023