The government will keep its expansionary fiscal policy stance next year to support the recovery of the coronavirus-hit economy, the government said, hinting at another mega budget exceeding 600 trillion won ($529.2 billion). The Cabinet approved Tuesday the 2022 budget guidelines, drafted by the Ministry of Economy and Finance to revive the sluggish economy. It focuses on fiscal inputs on boosting employment and domestic consumption and boosting investment in innovative technologies. Such

Economy March 30, 2021

Finance Minister Hong Nam-ki is set to become the longest serving fiscal chief in South Korean history, but his leadership is facing public pressure for the revival of an economy battered by the COVID-19 pandemic and to appease discontent on job creation and real estate policies. By Thursday, Hong will pull ahead of Yoon Jeung-hyun -- who served for 842 days under the Lee Myung-bak administration -- as the nation’s most durable chief economic policymaker and deputy prime minister. He has

Economy March 29, 2021

Boardrooms of South Korea’s financial groups are facing criticism for defying pressures for change despite their failure in holding top executives responsible for exposing their operations to legal and financial risks. Creating headwinds for Shinhan Financial Group and Woori Financial Group, which will vote on reappointments of inside and outside directors during shareholders meetings scheduled this week, are accusations that the current board members have been negligent in their oversig

Economy March 23, 2021

The country’s two major lenders Shinhan Bank and Woori Bank have come under scrutiny again over their sale of unsound products of scandal-ridden Lime Asset Management after being called to a financial watchdog’s meeting that would decide the fate of their top executives. The Financial Supervisory Service held its second sanctions committee meeting Thursday to decide the level of sanctions for Woori Bank, Shinhan Financial Group and Shinhan Bank, major sellers of Lime funds that in

Market March 18, 2021

Finance Minister Hong Nam-ki on Wednesday expressed confidence in the recovery of the nation’s job market, despite pessimistic figures that showed the number of employed people declining for 12 months, marking the longest losing streak in 22 years. According to Statistics Korea on Wednesday, 26.36 million people had jobs in February, a decline of 473,000 compared to a year prior. But the fiscal chief asserted that the employment index would improve in March with the launch of the COVID

Economy March 17, 2021

The government is scurrying to implement new rules on users and operators of digital coins to effectively oversee the industry, which has been growing at a fast pace on the back of increasing appetite for risky assets. Starting from March 25, new penalty standards for cryptocurrency exchanges that infringe anti-money laundering rules will be implemented, according to the Financial Services Commission on Tuesday. Fines will be imposed on virtual asset service providers that fail to report s

Market March 16, 2021

South Korea plans to expand tax incentives for foreign companies in the digital and green industries sectors to attract foreign direct investments that have been shrinking over the past two years. “In order to strengthen foreign investment in high-tech industries such as digital and green, which have strengths, we plan to draw a roadmap for attracting high-tech foreign investment in the first half of the year,” Finance Minister Hong Nam-ki said at a meeting with economy-related m

Economy March 15, 2021

This is a part of series of interviews and analysis of South Korea’s top bankers, policymakers and investors leading the financial industry here. This is the first installment. -- Ed. Banks are facing ever intensifying competition from IT companies as consumers gravitate toward digital financial services tailored to their needs. Korea Federation of Banks Chairman Kim Gwang-soo, however, believes lenders have a distinctive competency that could overcome challenges posed by fintech

Market March 10, 2021

South Korea will pursue quarantine-free, international travel agreements with other countries and lift other virus-related restrictions to prop up the aviation industry struggling to survive amid a sharp fall in air demand. “The country will push ahead with the signing of ‘travel bubble’ agreements for people to travel without restriction on the basis of the coronavirus situation (suitable for such pact),” Finance Minister Hong Nam-ki said during an emergency economic me

Economy March 3, 2021

South Korea proposed this year’s first extra budget worth 15 trillion won ($13.3 billion) Tuesday, to cover emergency relief funds for small business owners and the jobless population reeling from the COVID-19 pandemic, sparking concerns over the quickly growing national debt. An additional 4.5 trillion won is to be carried over from previously approved budgets for the current fiscal year, bringing the total relief package to 19.5 trillion won. To finance the budget, the country will i

Economy March 2, 2021

South Korea’s top financial authorities sounded warning bells about the absence of underlying value that digital coins hold, as speculative fever has been sweeping cryptocurrency markets in recent months. Market liquidity backed by stimulus packages and accommodative monetary policy may have attracted investors‘ attention to cryptocurrency, but they should stay cautious as the digital asset shows sharp price fluctuations, authorities said. Attending a briefing of the National Asse

Economy Feb. 23, 2021

The Asian Development Bank has appointed a Korean international development expert who has been working at the multilateral institution for 27 years, as managing director general, the Finance Ministry said Monday. Um Woo-chong, who has served as director general and concurrently chief compliance officer of ADB’s Sustainable Development and Climate Change Department, will assume office immediately. It is the second time that a South Korean has taken up the post since the ADB was establ

Economy Feb. 22, 2021

The Financial Supervisory Service on Thursday warned retail investors to be cautious of initial public offerings launched by promising but still loss-making companies, stressing that short-term gains may not be achievable. “As the rules allow (loss-making) companies (but with growth potential) to launch an IPO, profits may not occur within a short period of time after listing,” the FSS said in a statement. As part of efforts to encourage budding companies to draw investment, t

Market Feb. 18, 2021

The head of the Organization of Economic Co-operation and Development said Wednesday that targeted support programs for low-income earners and small businesses will be more effective tool for South Korea to counter the economic fallouts from the coronavirus pandemic than a universal provision of relief funds. “Targeted support measures on those who need it most will have greater multiplier effects, imparting a greater boost to private consumption compared to across-the-board support to

Economy Feb. 17, 2021

The nation’s fiscal chief said Wednesday that housing prices had cooled down since the government announced new supply measures earlier this month. At a meeting with related ministers, Finance Minister Hong Nam-ki said the government would speed up its housing supply plan, unveiled earlier this month, by selecting potential locations for new apartments by June and by strengthening monitoring to prevent illegal housing transactions and tax evasion. “To prevent confusion in the ma

Economy Feb. 17, 2021