Wednesday's stock market operation undecided: KRX

South Korea's bourse operator said Wednesday it is yet to be decided whether stock markets will open as usual following President Yoon Suk Yeol's unexpected emergency martial law declaration. Yoon declared martial law in a previously unannounced late-night address Tuesday, accusing the opposition side of controlling the parliament and paralyzing the government by conducting "anti-state activities." "It is yet to be decided if the stock markets will be opened Wednesday,&q

Dec. 4, 2024

Korean won hits 2-year low after Yoon declares martial law

The Korean won fell to a two-year low against the US dollar after President Yoon Suk Yeol declared emergency martial law late Tuesday. The Korean currency weakened as much as 1.4 percent and touched 1,430 won per dollar during the nighttime offshore trading. The decline followed a late-night television address by President Yoon, who claimed the move was necessary to protect the country from "anti-state" forces. The Korean won sharply dropped right after Yoon’s declaration at arou

Dec. 3, 2024

Finance minister to convene emergency meeting on martial law declaration

Finance Minister Choi Sang-mok convened an emergency meeting with top economic and financial officials Tuesday following the declaration of martial law. Choi, who doubles as deputy prime minister for economic affairs, met with the heads of the Bank of Korea, the Financial Services Commission and the Financial Supervisory Service, the finance ministry said. The industry ministry later said it has also held an emergency meeting with senior officials to review and discuss matters related to the eco

Dec. 3, 2024

Korea's cypto prices plunge, exchanges paralyzed amid martial law declaration

Cryptocurrency prices plunged and exchanges were paralyzed after South Korean President Yoon Suk Yeol unexpectedly declared martial law on Tuesday night. As of 11:30 p.m. Tuesday, Bitcoin, the world's largest cryptocurrency, was trading at around 120 million won ($83,767), down nearly 8 percent from the previous day. Bitcoin, which hovered at approximately 131 million won as of 10:30 p.m. when Yoon announced martial law, briefly plummeted nearly 30 percent to a low of 93.5 million won. Bitc

Dec. 3, 2024

Seoul to seek mutually beneficial ties with US amid uncertainties: trade minister

South Korea will make efforts to enhance its mutually beneficial ties with the United States, the trade minister said Tuesday, amid rising policy uncertainties surrounding Washington's incoming administration. Trade Minister Cheong In-kyo made the statement during a meeting with key commercial attaches and senior officials from the Korea Trade-Investment Promotion Agency to discuss strategies for sustaining South Korea's export momentum, according to the Ministry of Trade, Industry and

Dec. 3, 2024

Govt. to discuss US export strategies with fisheries industry

South Korea's oceans ministry said Tuesday it plans to hold a series of meetings with the local fisheries industry to discuss export strategies for the US market amid looming protectionism measures, including higher tariffs. The meetings, set to take place throughout this month, come amid growing policy uncertainties surrounding the incoming US administration, which may directly impact the country's seafood exports, according to the Ministry of Oceans and Fisheries. "There are bot

Dec. 3, 2024

S. Korea's inflation rises 1.5% in Nov., meeting target for 3rd month

South Korea's consumer prices increased at less than the central bank's 2 percent target for the third consecutive month in November, data showed Tuesday. Consumer prices, a key gauge of inflation, rose 1.5 percent from a year earlier last month, following a 1.3 percent on-year increase in October, according to the data from Statistics Korea. September saw a 1.6 percent on-year increase. South Korea's consumer inflation has stayed below 3 percent since April and fell below the inf

Dec. 3, 2024

S. Korea settles 62 cases of non-tariff trade barriers in 2024

South Korea's trade ministry said Tuesday it has settled 62 cases of non-tariff barriers this year, helping businesses maintain $9 billion worth of exports. The World Trade Organization members maintained 4,149 technical barriers to trade (TBT) as of November, up from 4,068 tallied in 2023, according to data compiled by the Ministry of Trade, Industry, and Energy. TBTs, which include consumer safety standards and energy and environmental requirements, are often used as non-tariff restrictio

Dec. 3, 2024

Regulator seeks to revise law to protect small shareholders

South Korea’s top financial regulator said Monday it would seek to revise the Capital Market Act to protect individual shareholders when listed companies undertake a merger and relist after a corporate spin-off. "We prepared a proposal for the revision of the Capital Market Act with the recognition that the protection of the interests of general shareholders should be strengthened to enhance the value of the capital market," Kim Byoung-hwan, chair of the Financial Services Co

Dec. 2, 2024

Extending retirement age to 65 could cost W30tr won in labor costs: FKI report

Extending the legal retirement age from the current 60 to 65 could result in additional labor costs of over 30 trillion won ($21.39 billion) per year for local businesses, according to a report released Monday by a lobby group of local entrepreneurs. The Federation of Korean Industries' report estimated that in the first year of the new retirement age, companies across South Korea would have an additional 58,214 workers aged 60 to 64 on their payroll. This number of employees, who, under th

Dec. 2, 2024

S. Korea to extend tariff quota on energy, food imports to ease burden on households

South Korea plans to extend its tariff rate quota on energy and food imports into part of next year to help ease the burden on households, the finance ministry said Monday, as the nation continues to struggle with high inflation and a strong U.S. dollar. The tariff rate quota system allows a specified volume of imports to enter the country under reduced tariff rates for a specific period of time. Under the initiative, the zero-tariff policy for liquefied natural gas imports, used for power gener

Dec. 2, 2024

[Herald Interview] 'Development assistance is important for export-dependent Korea'

Strengthening international development assistance efforts could be a solution to lifting the stagnant Korean economy, as such aid helps create a global economic environment favorable to countries with an export-led growth model, according to the chief of the multilateral lender World Bank Group’s Korea office. “For a country like Korea that is engaged in trading in international markets and a lot of its wealth comes from access to export markets, creating a stable and prosperous g

Dec. 1, 2024

Major banks' interest margin up for 3rd straight month despite BOK's rate cut

The interest margins of major South Korean banks have increased for the third consecutive month in October, data showed Sunday, despite the Bank of Korea's rate cut in the month that marked its first policy pivot in over three years. The average interest margin of five major banks -- KB Kookmin, Shinhan, Hana, Woori and NH Nonghyup -- came to 1.04 percentage points in October, up from 0.73 percentage point tallied the previous month, according to the data compiled by the Korea Federation of

Dec. 1, 2024

S. Korea's exports grow for 14th month in Nov. on record shipments of chips

South Korea's exports posted year-on-year growth for the 14th consecutive month in November, driven by record semiconductor shipments, data from the Ministry of Trade, Industry and Energy showed Sunday. Outbound shipments rose 1.4 percent from a year earlier to $56.3 billion last month, while imports fell 2.4 percent on-year to $50.7 billion, resulting in a trade surplus of $5.61 billion. The country has maintained a trade surplus for 18 consecutive months. By sector, exports of semiconduct

Dec. 1, 2024

Most foreign-owned land held by US citizens, houses by Chinese

The amount of property and land owned by foreigners in Korea has inched up this year, with Chinese nationals owning the majority of homes, but Americans owned the majority of land. The Ministry of Land, Infrastructure and Transport released Friday a report on foreign-owned real estate, which showed that approximately 93,000 foreign nationals owned 95,058 homes in Korea as of the end of June, accounting for 0.49 percent of the total housing stock. This represents a 3.9 percent increase -- by 3,60

Nov. 30, 2024

[Contribution] Fair taxation in era of global economy

By Choi Jae-bong The presence of global brands, such as for automobiles, footwear and food products, has become an inseparable part of our daily lives. From consumer goods to global platform corporations, multinational enterprises have firmly embedded themselves into the global economy, which is now entirely ordinary to us living in this era. MNEs play a pivotal role in the global economy, driving technological innovation, creating jobs and fostering industrial development across various sec

Nov. 29, 2024

Chinese account for 56 % of homes owned by foreigners in S. Korea

Chinese nationals accounted for 56 percent of all housing units owned by foreigners in South Korea, data showed Friday. According to the data from the Ministry of Land, Infrastructure and Transport on the home ownership of foreigners, Chinese nationals owned 52,798 out of the 95,058 housing units registered under foreign nationals in the country as of the end of June. The number of homes owned by Chinese nationals grew 4.9 percent from six months earlier. Following Chinese, Americans owned 21,36

Nov. 29, 2024

Finance minister hails BOK's surprise back-to-back rate cut

South Korea's top economic policymaker on Thursday welcomed the central bank's unexpected decision to cut its benchmark interest rate for the second time in a row, reaffirming the government's commitment to revitalizing economic growth. In a surprise move, the monetary policy committee of the Bank of Korea (BOK) slashed its key rate by 25 basis points to 3 percent, one month after it cut the rate by a quarter percentage point in the first pivot in its policy stance in over three y

Nov. 28, 2024

BOK makes surprise 2nd rate cut to boost growth

The Bank of Korea slashed the base interest rate for the second consecutive time Thursday, amid heightened uncertainties and slow growth. The cut surprised the market as the local currency has weakened against the dollar in recent weeks. The Bank of Korea’s monetary policy board trimmed the base rate by 25 basis points, bringing it down to 3 percent. Four of the other six monetary policy board members, not including BOK Gov. Rhee Chang-yong, agreed to the rate cut, while the remaining two

Nov. 28, 2024

S. Korean firms reviewing measures in response to Trump's tariff threat on Mexico-made goods

South Korean companies with manufacturing bases in Mexico are reviewing countermeasures in response to US President-elect Donald Trump's plan to impose a 25 percent tariff on imports from Mexico at the start of his second term. Trump announced on social media Monday that he plans to issue an executive order to levy tariffs on goods made in Mexico and Canada on his first day in office, as part of his campaign to incentivize firms to relocate production to the United States. Mexico has long b

Nov. 27, 2024