South Korea’s monetary policy chief on Tuesday called for the nation to brace for potential risks stemming from the financial authorities’ decision last year to funnel massive liquidity into the market and extend loan forbearance periods, due to the COVID-19 pandemic. “We must focus on risk management and accelerating innovation, and debt issues and the excess flow of capital into the asset markets – which are the side effects of the coronavirus crisis – need to b

Economy Jan. 5, 2021

      The coronavirus pandemic has accelerated the digitalization of the financial industry, pushing local banking groups to cater services to require less contact. The heated competition to gain a digital foothold in the industry pose as a key task for the firms this year, experts and head of the groups said Monday. “Local banks must bolster their risk management, while seeking for fresh revenue sources in the era of near-zero interest rates and improve the com

Market Jan. 4, 2021

Despite heightened hopes that vaccinations would put an end to the still ongoing pandemic in the new year, the South Korean economy is expected to face another series of challenges, uncertainties and risks. The COVID-19 pandemic was the biggest threat to Asia’s fourth-largest economy last year, dragging down its GDP in the second quarter to minus 3.3 percent, the lowest since the 1997-98 Asian Financial Crisis when the country went through massive restructuring nationwide. Reflecting c

Economy Dec. 31, 2020

The COVID-19 pandemic is projected to add fuel to South Korea’s low birthrate, marriage rate and rapidly increase the nation’s aging population, the central bank said Wednesday. “The pandemic will have a negative impact on the nation’s marriage and birthrate, leading to an acceleration of aging in the population,” the Bank of Korea said in its regular report on economic issues. The total fertility rate for 2022 may even become lower than the Statistics Korea&rsq

Economy Dec. 30, 2020

South Korea’s central bank said Tuesday that it had published an English-language version of a booklet narrating its 70-year history. The Korean version was published in June to mark the Bank of Korea’s 70th anniversary. The booklet focuses on Korea’s growth into Asia’s fourth-largest economy, as well as on the establishment of the BOK and its role, the central bank said. The BOK plans to distribute the booklet to its overseas counterparts, international organizatio

Economy Dec. 29, 2020

South Korea selected a total of 11 banks –- six South Korean and five foreign banks –- as institutions responsible for setting prices for direct won-yuan transactions next year, financial authorities said Monday. The banks will be responsible for determining the prices for the transactions and funneling liquidity into the market, the Ministry of Economy and Finance and the Bank of Korea said in a joint statement. The South Korean banks are major commercial lenders KB Kookmin, Shi

Economy Dec. 28, 2020

K-pop boy band BTS stars in KB Kookmin Bank’s advertisement for Indonesia, with its megahit song “Dynamite” playing in the background, in this screen capture of the commercial released by the lender on Monday.  BTS has been KB Kookmin's global ambassador since 2018. KB Kookmin has been expanding its presence in Indonesia in recent years and has so far acquired a 67 percent stake in Bank Bukopin, making it the largest shareholder. By Jung Min-kyung (mkjung@heraldcorp.com)

Market Dec. 28, 2020

As China accelerates the development of its sovereign digital currency, South Korea should prepare for looming changes that the new form of money may bring about to its largest trading partner, experts had said as of Sunday. China has been intensifying its efforts to introduce the digital yuan, known officially as the Digital Currency Electronic Payment, with the second round of its pilot program launched earlier this month for testing on major e-commerce platforms like JD.com, the country&rsq

Market Dec. 27, 2020

The Industrial Bank of Korea joined hands with a platform operated by Naver’s cloud affiliate for digital innovation and development of fintech services, the state-run bank said Wednesday. The new partnership will enable them to bolster their cloud and artificial intelligence capabilities, IBK said. To keep pace with each other, both plan to establish a solid communication channel to review Naver’s technologies capable of upgrading banking business. Discovering and recommending

Market Dec. 23, 2020

KB Kookmin Bank, one of five major commercial banks here, has decided to cap the size of personal loans per household to 20 million won ($18,000), sources said Tuesday, marking a drastic move as local lenders have been tightening their grip on lending rules. KB Kookmin plans to maintain the new limit at least until the end of the year, industry sources said. The rule applies to any household that would apply for a new personal loan or seek to increase their loan balance from Tuesday to Dec. 31

Market Dec. 22, 2020

The coronavirus pandemic is projected to widen economic performance among global economies as well as income classes within a country, a report by South Korea’s central bank said Monday. “The polarization in economic growth among global economies has been observed between developed and developing nations in how they have been dealing with quarantine measures, their fiscal capacities,” the Bank of Korea said in its regular report on economic issues. “Economies with stro

Economy Dec. 21, 2020

With a new wave of coronavirus infections gripping the nation, South Korea’s economy this month faces growing uncertainties, the Ministry of Economy and Finance said Friday. In its monthly economic report, called the “Green Book,” the ministry has upgraded its concerns on Asia’s fourth-largest economy by a notch, saying that the uncertainties are “expanding.” It has previously said that the uncertainties were “continuing” in the reports released i

Economy Dec. 18, 2020

Financial authorities on Wednesday ruled out Big Tech firms Naver and Kakao as subjects to one of the “three fair economy bills,” designed to rein in dominance of conglomerates and add transparency to corporate governance here. “At the moment, Kakao and Naver do not meet the standards,” Financial Services Commission Vice Chairman Doh Kyu-sang said in a briefing of related ministries for the revised bills. Companies with two or more financial units and total assets of

Market Dec. 16, 2020

South Korea’s money supply saw further growth in October, as businesses and households continued its rush to secure funds amid the COVID-19 pandemic, central bank data showed Tuesday. The country’s M2 – a yardstick for the nation’s cash, checking deposits and other near money deposits – gained 9.7 percent on-year and 1.1 percent on-month to 3,150.5 trillion won ($2.8 trillion) as of end-October. The 1.1 percent or 34.7 trillion won on-month gain is the second-lar

Economy Dec. 15, 2020

Citibank Korea on Monday said it would pay partial indemnities to local businesses that signed currency-linked derivatives sold by the bank more than a decade ago. The decision was made during a board meeting held in an apparent response to the financial watchdog’s arbitrary recommendation last year to compensate the firms that had faced losses from KIKO -- or “knock-in, knock-out” -- contracts. “Citibank Korea has been reviewing compensation for firms that have been

Market Dec. 14, 2020