In a largely anticipated move, South Korea’s central bank on Thursday decided to hold its policy rate at a record-low of 0.5 percent while casting bleaker projections for this year’s gross domestic product growth rate. The Bank of Korea’s seven-member monetary policy board unanimously voted to keep the rate frozen at the rate they had slashed by 25 basis points in May to minimize economic fallout from the coronavirus pandemic. The decision in May came two months after the boa

Economy July 16, 2020

Agencies handling the Moon Jae-in administration’s ambitious measures to cool down the heated real estate market revealed Wednesday that they are not all on the same page over the possibility of lifting the construction ban in greenbelt areas. In an interview with local news outlet MBC on Tuesday, Finance Minister and Deputy Prime Minister Hong Nam-ki said the government is open to the possibility of lifting the construction ban in certain designated greenbelt zones to resolve the nation

Economy July 15, 2020

The state-run Industrial Bank of Korea said Wednesday it plans to launch a new mobile untact -- non face-to-face contact -- mortgage product for customers. The product, designed to support self-employed or small business owners, will be extended through IBK’s mobile banking app I-One Bank. Users will be required to submit only basic personal information, instead of actual paper documents. The time tied to the process of receiving the mortgage will be shortened, as borrowers will b

Market July 15, 2020

South Korea’s Land Minister Kim Hyun-mee on Tuesday refuted growing criticism over the government’s focus on raising taxes rather than dealing with housing supply shortage. In its latest effort to curb the heated real estate market, the Moon Jae-in administration rolled out its 22nd set of policy actions dubbed the “July 10 measures” last week, which centers on increasing taxes for multiple-home owners. But it was immediately hit with waves of criticisms from both

Economy July 14, 2020

South Korea’s central bank is expected to keep its base rate frozen near-zero at its regular monetary policy meeting scheduled Thursday, to avoid further aggravation of the local housing market, experts said Sunday. According to experts, the Bank of Korea will maintain its policy rate at the current record-low of 0.5 percent for the time being, despite rate cut pressures stemming from economic downturns due to the coronavirus pandemic coupled with the trend of low inflation. This is main

Economy July 12, 2020

South Korea urged the Group of 20 countries to establish a stronger global financial safety net to overcome both ongoing and upcoming risks stemming from the latest coronavirus pandemic, the Ministry of Economy and Finance said Thursday. “(Establishment) of a global financial network is a strong measure that could help stop the spread of the crisis by supporting developing countries dealing with liquidity issues,” Deputy Prime Minister and Finance Minister Hong Nam-ki said at an o

Economy July 9, 2020

KB Financial Group is scheduled to hold an online workshop of executives and board members led by Chairman Yoon Jong-kyoo on Friday to discuss plans for the post-virus era and digital innovation, sources close to the matter said Wednesday. Yoon is expected to adjust the time frame and specific plans for the banking group’s goals for this year including expansion of business and digital innovation. The local banking groups’ initial plans and time frame for this year –- includi

Market July 8, 2020

South Korea’s consumption has recovered slightly on the back of the government’s emergency cash handout, but its economic activity and exports remain sluggish, still weighed down by risks stemming from the coronavirus pandemic, a state-run think tank said Wednesday. “The slowdown in Korea‘s consumption has decelerated, but economic activity remains sluggish due to falling external demand on the global spread of COVID-19,” the Korea Development Institute said in it

Economy July 8, 2020

Citibank Korea said Tuesday it has launched an artificial intelligence-based chatbot consulting service to bolster its untact (contactless) digital customer service. According to the South Korean subsidiary of the New York-based bank, the service provides round-the-clock consulting for customers that need immediate consulting. It can be used after adding Citibank channel via messenger app KakaoTalk. The AI chatbot will help customers find the nearest Citibank branch and provide information

Market July 7, 2020

한국수출입은행 (이하 ‘수은’)은 대외경제협력기금 (이하 ‘EDCF’)를 통해 파키스탄과 새로운 IT사업을 추진 중이다. 6일 수은 관계자는 코리아헤럴드와의 통화에서 2017년 파키스탄 ‘IT파크 건립사업’에 이어 더 큰 규모의 사업과 차관공여계약을 계획하고 있다고 밝혔다. 수은은 2017년 파키스탄의 수도 이슬라바마드에 세워질 IT파크 사업에 7천600만달러의 대외경제협력기금을 앞서 지원한바 있다. 관계자는 파키스탄 IT 신사업은 단순한 건물 이상의 “국가전체적으로 유형.무형 인프라를 만들어보자‘는 취지에서 의논되었으며 ’전자정보‘ 관련 사업이 추진될 가능성도 높다고 했다. 다만 신사업은 현재 구체화되지 않았으며 파키스탄과의 관련 사업 논의는 전 세계적으로 유행 중인 코로나 바이러스 감염증으로 지지부진한라고 덧붙였다. 관계자는 “현재 마스터플랜이나 프

한국어판 July 7, 2020

South Korea’s state-run policy lender Export-Import Bank of Korea plans to offer a $76 million-plus loan to Pakistan for IT-related projects including electronic intelligence, a top official told The Korea Herald on Monday. Eximbank established the Economic Development Cooperation Fund in 1987 to support industrialization and economic growth in developing countries as well as promote bilateral economic exchanges. “The size of the loan and project is expected to be larger than the

Market July 7, 2020

South Korea’s NH NongHyup Bank said Monday it has received final approval from Myanmar’s financial authorities to launch and operate a subsidiary in the Southeast Asian country. The announcement comes 10 months after the lender submitted an application to the Central Bank of Myanmar, which handles financial supervisory of state-owned, private and foreign banks in the country. NH NongHyup has been operating a microfinancing institution in Myanmar since 2016 and has worked as a st

Market July 6, 2020

S. Korean lawmakers on Friday are set to pass a bill for the third extra budget of up to 35.3 trillion won ($29.5 billion) in the afternoon, marking the passage of the largest-ever supplementary budget, in an effort to cushion the economy from the blows of the coronavirus pandemic. In a press briefing held earlier in the day, ruling Democratic Party of Korea Rep. Park Hong-keun set the time for the National Assembly’s plenary session vote at 7 p.m., saying that related Special Comm

Economy July 3, 2020

South Korea’s foreign exchange reserves hit a fresh record high of $410.75 billion last month, having gained $3.44 billion on-month due to a weak dollar trend, the nation’s central bank said Friday. “Profits and investment returns from foreign assets coupled with the weak dollar trend translating into a higher dollar-converted value of other currencies contributed to the gain,” A Bank of Korea official said. Korea’s forex reserves have increased for three conse

Economy July 3, 2020

South Korea aims to foster its intellectual property financial investment market to 1.3 trillion won ($1.08 billion) by 2024 to help firms deal with liquidity issues triggered by the coronavirus pandemic, the nation’s IP office said Thursday. The Korean Intellectual Property Office announced 14 specific tasks under four pillars that would establish platforms for individuals and firms to directly invest in IP and profit from royalties, sales and even lawsuits. This is expected to boost th

Economy July 2, 2020