The chief of South Korea’s central bank said Thursday that its “interest rate normalization” will come at an “appropriate time” by the end of the year, setting a solid time frame for a policy shift for the first time. “The current pandemic-era monetary easing is extremely dovish compared with the state of the economy,” Bank of Korea Gov. Lee Ju-yeol said in a press briefing.　 Asia’s fourth-largest economy has been recovering at a faster-than-exp

Economy June 24, 2021

The value of South Korea’s financial assets in the United States hit a record-high last year, backed by local retail investors’ increased interest in the US stock market, central bank data showed Wednesday. As of end-2020, Asia’s fourth-largest economy’s outstanding financial assets invested in the US gained $114.8 billion on-year to $534.5 billion, preliminary data from the Bank of Korea showed. This marks both record-high total annual investment by South Korean entit

Economy June 23, 2021

More than 70 percent of millennials and Generation Z in South Korea believe that wealth and income is distributed unequally throughout society, a survey showed Tuesday. The study released by Deloitte Anjin showed that some 73 percent of millennials and 76 percent of Gen Z in Korea recognized wealth and income inequality as a major concern. This surpasses the 69 percent and 66 percent response from global millennials and Gen Z, respectively, towards the same issue. While millennials and Gen Z

Economy June 22, 2021

South Korea will ease mortgage rules for first-time homebuyers starting next month as part of a raft of real estate measures aimed at helping young people move up the property ladder, according to a real estate service provider on Monday. Applying for a mortgage will become easier for both couples and individuals seeking to purchase a home for the first time, the Zigbang report said. From July, couples with a combined annual income of less than 90 million won ($79,141) -- compared with the c

Economy June 21, 2021

Tech giants such as Naver and Kakao have penetrated the financial sector by integrating “lifestyle” into their financial services, offering all-in-one services via a single platform or close connections to their users. Kakao Corp., operator of the nation’s No. 1 mobile messenger in terms of users, for example, allows KakaoTalk users easy access to its financial services offered by KakaoBank. KakaoTalk users can use KakaoBank services at just a press of a button on the messeng

Market June 20, 2021

The likely scenario of South Korea’s central bank carrying out out a rate hike by the end of the year is unlikely to cool the heated housing market here, industry insiders said on Thursday, dismissing the impact of monetary policies on real estate prices that surged in recent months. The envisioned rate hike would lead to an increase in the interest rates for household loans and mortgages extended by local commercial banks. But the housing market is likely to stay hot for a while mainly d

Economy June 17, 2021

Citibank Korea suggested its workers take voluntary retirement as an option in a recent e-mail sent to its employees, sources said Wednesday, as the firm has been gearing up to sell-off its consumer banking business. “Our executives understand your concerns due to the announcement concerning Citigroup’s pursuit of consumer banking business exit strategy here,” Citibank Korea CEO Yoo Myung-soon said in the email written in Korean. “We will make our best efforts to hold

Market June 16, 2021

Korea Development Bank’s plan to invest 100 billion won ($89.4 million) in the nation’s latest internet-only bank backed by Viva Republica, the operator of fintech app Toss, is meant to keep local unicorns in the local market, the head of the state-run bank said. The announcement follows the nation’s financial regulator’s decision last week to grant final approval to a consortium led by Viva Republica to launch and operate the nation’s third internet-only bank. To

Market June 15, 2021

South Korea’s financially ailing carmaker SsangYong Motor’s decision last week to send its employees on rotating unpaid leave for up to two years may not be sufficient enough to catch the eyes of new buyers, the chief of the Korea Development Bank said Monday. “I would like to thank SsangYong Motor’s leadership and its union on their agreement on the company’s latest self-rescue action focused on sending its employees on rotating unpaid leave –- it’s a

Market June 14, 2021

With South Korea’s central bank chief continuing to adopt a more hawkish tone on monetary policy, anticipation is growing for an earlier-than-expected interest rate hike. The US Federal Reserve, meanwhile, has officially expressed its commitment to maintaining its interest rate near zero, with experts projecting no rate hikes until after the first half of next year. This could mean that the Bank of Korea raises its key rate ahead of the US Fed, a rare occurrence that hasn’t happene

Economy June 13, 2021

South Korea’s NH Financial Group said Thursday it has created an environmental, social and governance fund worth 150 billion won ($134 million) to finance projects tied to the Green New Deal initiative. According to NH, the “NH-Amundi Green New Deal Infra ESG Fund” will offer an alternative investment portfolio that focuses on exposure to both up-and-coming and less risky assets. Investments on hydrogen, fuel cell-related projects alongside solar and wind energies will be inc

Market June 10, 2021

Per capita income in South Korea declined for the second year running in 2020, as the COVID-19 pandemic dragged the economy down to its lowest point since the 1997-1998 Asian financial crisis, data showed Wednesday. Per capita annual income, as measured in US dollars, shrank last year to $31,881, down from $32,204 in 2019 and $33,564 in 2018, according to data compiled by the Bank of Korea. The data came as Asia’s fourth-largest economy has started to recover from the blows dealt by the

Economy June 9, 2021

With growing signs of an interest rate hike from the US Federal Reserve as early as this year, a hawkish turn there will increase debt burdens in South Korea if policymakers here fail to take timely steps, a think tank said Monday. Debt interest payments per Korean household could gain as much as 2.5 million won ($2,249.62) on average if the US Fed decides to raise its interest rate from the current near-zero level, a report from the Korea Economic Research Institute showed. The KERI projecte

Economy June 7, 2021

For viewers of MBC’s popular reality show “I Live Alone,” K-pop boy band SHINee Key’s new hobby struck a chord with their COVID-era lifestyle. His passion of cultivating scallions and other plants at a corner of his home veranda is an illustration of a trend that has been sweeping across South Korea: home gardening. Though raising one or two plants at home may be nothing new, the pandemic has spurred people to take the hobby to the next level. Koreans are now splurging

Culture June 5, 2021

Multiple financial companies have expressed interest in acquiring Citibank Korea’s retail business by submitting letters of intent, but they have taken a negative stance toward retaining all employees, the lender recently said. It has also put a complete pull-out of its retail business “in phases” as a viable option on the table as well, hinting that it would rather pursue an exit than carry out a subpar deal. In an email sent to reporters, Citibank Korea said its “e

Market June 4, 2021