Finance minister says recent volatility in financial, FX markets 'excessive'

South Korea's top economic policymaker said Tuesday that the recent volatility in the country's financial and foreign exchange markets is "excessive" given the nation's strong economic fundamentals. On Monday, the Korean won weakened to 1,437 won per US dollar, dropping 17.8 won from the previous session, and reaching its lowest level in over two years. The benchmark Korea Composite Stock Price Index (Kospi) also plunged 67.58 points, or 2.78 percent, to close at 2,360.5

Dec. 10, 2024

Korea pledges additional W100b to support rattled stock market

The South Korean government has decided to inject an additional 100 billion won ($69.7 million) to stabilize the local stock market battered by deepening political uncertainty after President Yoon Suk Yeol averted impeachment last week. On Monday, the first trading day after the failed motion to impeach President Yoon, the benchmark Kospi and secondary Kosdaq plummeted to new 52-week lows, while the Korean currency approached its weakest point since 2009. Finance Minister Choi Sang-mok vowed t

Dec. 9, 2024

[Photo News] Emergency meeting of financial leaders

Financial Services Commission Chairman Kim Byoung-hwan (far left) convened a meeting Monday in Seoul with leaders from South Korea’s financial sector, including the chiefs of the five major banking groups — KB, Shinhan, Hana, Woori and NongHyup — alongside representatives from public institutions and industry associations. Kim stated that key financial policy initiatives, such as the capital market value enhancement plan, the establishment of an illegal short-selling monitoring

Dec. 9, 2024

S. Korea to toughen regulation on tomato exports to Japan amid infection woes

South Korea's quarantine agency said Monday it will implement tougher regulations on tomato leafminers as part of efforts to maintain stable exports to Japan amid reported infections. Under the regulation, tomato farms exporting their products to Japan must conduct trap investigations two months prior to harvest to verify that the farms are free from tomato leafminer infections. The decision follows an agreement reached between South Korean and Japanese authorities, with the new rule set to

Dec. 9, 2024

Govt. ready to deploy market stabilization measures, including 'value-up funds'

The government is ready to deploy immediate market stabilization measures, including the injection of "value-up funds" into the country's stock market, Finance Minister Choi Sang-mok said Monday. Choi made the statement during an emergency meeting with top economic and financial officials, as South Korea grapples with the fallout from President Yoon Suk Yeol's declaration of martial law last Tuesday. The declaration was overturned by the National Assembly just hours later. &q

Dec. 9, 2024

Bumpy road ahead for Korean economy

As the fate of embattled President Yoon Suk Yeol is likely to stay in limbo for longer than expected, concerns are mounting over pending economic measures that need to be addressed to rev up the country’s slowing growth. After a failed parliamentary vote on his impeachment Saturday, Han Dong-hoon, leader of the ruling People Power Party, stressed Sunday that he would push for the president’s resignation. The main opposition Democratic Party called for Yoon to immediately step down, t

Dec. 8, 2024

Financial regulators, banking heads to meet amid market instability

South Korea's financial regulators are set to meet with the heads of major financial groups next week amid escalating political tension surrounding President Yoon Suk Yeol’s impeachment motion. The Financial Services Commission is arranging a meeting with the heads of major financial groups, including KB, Shinhan, Hana, Woori and NongHyup, though the date remains unconfirmed. An official from one of the groups indicated that the meeting, initially set for Thursday, was canceled on Sat

Dec. 8, 2024

Korean won worst performer among major peers over martial law shock wave

The South Korean currency was the worst performer around the globe last week as the political turmoil following President Yoon Suk Yeol's short-lived declaration of martial law has affected sentiment, data showed Sunday. The Korean won dropped by 24.5 won per dollar over the past week, the sharpest weekly fall since the third week of January when the currency dropped 25.5 won, according to data compiled by Yonhap Infomax, Yonhap News Agency's financial information arm. The won was down

Dec. 8, 2024

Korea’s finance chief sending out emergency letters to reassure foreign investors

South Korea's finance minister has sought to reassure foreign investors and global financial institutions through emergency letters and meetings, as political tensions intensify following President Yoon Suk Yeol's martial law declaration. An official from the Ministry of Economy and Finance confirmed that the ministry is continuing to send out emergency letters to major economies, financial regulators and investors to assure them that "the nation’s political, economic and na

Dec. 6, 2024

Top economic officials say market 'largely stabilized' following martial law debacle

Top economic and financial authorities said Friday that the financial and foreign exchange markets have "largely stabilized" following the brief imposition of emergency martial law earlier this week. Such assessment was made during an emergency meeting to evaluate the potential impact of President Yoon Suk Yeol's declaration of martial law late Tuesday, which was reversed within hours by the National Assembly. Friday's meeting was attended by Finance Minister Choi Sang-mok, t

Dec. 6, 2024

S. Korea logs current account surplus for 6th month in October

South Korea reported a current account surplus for the sixth consecutive month in October, driven by strong sales of semiconductors and cars, central bank data showed Friday. The country's current account surplus reached $9.78 billion in October, following a $10.94 billion surplus the previous month, according to preliminary data compiled by the Bank of Korea. The country has recorded a current account surplus since May, and the accumulated surplus for the first 10 months of the year has mo

Dec. 6, 2024

'Value-up' gone up in smoke? Political crisis deepens 'Korea discount'

South Korea’s stock market was already on fragile ground before President Yoon Suk Yeol’s unexpected martial law declaration further undermined the government’s yearlong push to boost corporate value. Foreign investors sold a net 200 billion won ($141 million) on the benchmark Kospi within the first two hours of Thursday’s trading, extending the 400 billion won offloaded the previous day after the six-hour martial law announcement. As of 3 p.m., foreign investors had dump

Dec. 5, 2024

Financial watchdog calls on securities firms to draw up 'contingency' plans against market volatility

South Korea's financial watchdog called on securities firms Thursday to draw up contingency plans as market volatility is likely to increase amid martial law-related political turmoil. The local financial markets were roiled on Wednesday by President Yoon Suk Yeol's declaration of emergency martial law late Tuesday, which was lifted hours later after a parliamentary vote to block the decree. Earlier in the day, the opposition-controlled National Assembly introduced a motion to impeach

Dec. 5, 2024

S. Korean economy expands 0.1% in Q3; politics to have limited impact on growth: BOK

The South Korean economy expanded by 0.1 percent in the third quarter of 2024 amid weak domestic demand and slower export growth, central bank data showed Thursday. The country's real gross domestic product -- a key measure of economic growth -- increased 0.1 percent in the July-September period from the previous quarter, matching an earlier estimate, according to preliminary data from the Bank of Korea. The figure was markedly lower than the market expectation of a 0.5 percent gain. The ec

Dec. 5, 2024

Korea’s sovereign rating unscathed by martial law saga

S&P Global Ratings said Wednesday that South Korea’s sovereign credit rating won’t be hurt by the brief imposition of martial law in the country the previous night. “There is no substantial reason to change Korea’s current rating since the martial law was relieved in a few hours and the country’s economy is fundamentally sound,” Kim Eng Tan, senior director of Asia-Pacific sovereign ratings at S&P, said during a seminar jointly held with NICE Investors

Dec. 4, 2024

South Korea braces for prolonged market turmoil, pledges 'unlimited liquidity'

Six hours of unexpected martial law have rattled local markets, with volatility expected to persist despite the lifting of the emergency measure. In response to potential aftershocks, local authorities have pledged comprehensive actions to ensure normal operations and stabilize volatility, including the government's commitment to injecting "unlimited liquidity." "The foreign exchange market and overseas trading of Korean stocks, unsettled by last night’s martial law dec

Dec. 4, 2024

Korea's stock markets to open as usual

South Korea's bourse operator Korea Exchange has decided to open stock markets as usual amid concerns over market volatility induced by President Yoon Suk Yeol's brief imposition of an emergency martial law declaration. Stock market indicators, which plummeted due to President Yoon's sudden declaration, showed slight stabilization after parliament voted in favor of a motion demanding the lifting of martial law. As of 2:30 am, the Kospi 200 overnight futures and options index stood at 322.80, dow

Dec. 4, 2024

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