Choo calls for end to protectionism, supply chain recovery during G20 meeting

MARRAKESH, Morocco -- South Korea's finance minister called Saturday for concerted international efforts to end protectionism and recover supply chains to address economic challenges stemming from Russia's protracted war in Ukraine, COVID-19 and other factors. Finance Minister Choo Kyung-ho made the call during the two-day G20 Finance Ministers and Central Bank Governors Meeting held in Marrakesh, Morocco, which ended Friday, according to the Ministry of Economy and Finance. Choo calle

Oct. 14, 2023

S. Korea has 'no urgency' to cut key lending rate soon: IMF director

MARRAKESH, Morocco -- South Korea has "no urgency" to lower its key lending rate as bringing down inflation still remains a priority, a director at the International Monetary Fund said Saturday. Krishna Srinivasan, the director of the Asia and Pacific Department at the IMF, made the remarks, noting that the Bank of Korea has "appropriately" maintained a monetary policy tightening approach as inflation remains elevated above its 2-percent target. "Given the fact that infl

Oct. 14, 2023

South Korean oil payments for Iran frozen again over Hamas links

South Korea's $6 billion payment for Iranian crude oil has been frozen by the US administration again due to rising tensions regarding Iran's suspected links to the militant group Hamas, according to reports from multiple media outlets on Friday, including The New York Times. These funds were originally intended for humanitarian assistance under strict US oversight. Now held in a Qatari bank, they are caught up in a diplomatic tangle following recent Hamas-initiated hostilities against

Oct. 13, 2023

Subsidiary expansion procedure for insurers overseas to be simplified: FSC

Authorities are planning to slim down on the procedure for insurance companies acquiring foreign subsidiaries. The Financial Services Commission, South Korea's financial regulator, announced Friday its planned revision of the Enforcement Decree of The Insurance Business Act, reducing down the procedures for insurance companies seeking to acquire foreign subsidiaries. Currently, Korean insurance companies must either obtain direct approval from the FSC or submit a preliminary report when acq

Oct. 13, 2023

S. Korea vows enhanced market monitoring, measures to curb inflation over Israel-Hamas clash

South Korea will be fully prepared for any scenarios related to the ongoing conflict between Israel and Palestinian militant group Hamas to minimize its impact on inflation and the broader economy, a senior finance ministry official said Thursday. First Vice Finance Minister Kim Byoung-hwan made the remarks while presiding over an emergency economic meeting meant to discuss responses to the worst clash in decades between the two sides that began last week. "The conflict has caused limited i

Oct. 12, 2023

S. Korea logs current account surplus for 4th month in August

South Korea logged a current account surplus for the fourth straight month in August on the back of a widened trade surplus and increased interest income from overseas, central bank data showed Wednesday. The country's current account surplus reached $4.81 billion in August, following the surplus of $3.74 billion the previous month, according to preliminary data from the Bank of Korea. August's surplus came as the country's trade balance has remained in the black for five straight

Oct. 11, 2023

IMF maintains 2023 growth outlook for S. Korea at 1.4 pct

The International Monetary Fund (IMF) maintained its 2023 growth outlook for South Korea at 1.4 percent Tuesday but revised down the forecast for next year amid a global economic slowdown. The organization's latest projection for 2023 is the same as its forecast made in July when it slashed the growth outlook for South Korea by 0.1 percentage point, citing "persistent challenges" in the global economy. The figure is on par with the South Korean government and the Bank of Korea

Oct. 10, 2023

Israel-Hamas conflict to deepen inflation woes

The conflict between Israel and Hamas militants in the Gaza Strip has raised concerns for the Korean economy as the prospect of a full-blown war in the Middle East could lead to a surge in oil prices and further pave the way for more inflationary pressures. "Though the international financial market has shown a limited response to the incident, considering it is still in the early stages, the uncertainties are very high," Finance Minister Choo Kyung-ho said at a meeting held Tuesday

Oct. 10, 2023

Shinhan to bet big on insurance tech startup

Shinhan Financial Group announced Tuesday that it will invest 6.5 billion won ($4.82 million) into Habit Factory, an advanced data analysis insurance technology start-up, through the group’s strategic investment fund. According to the financial institution, Habit Factory is a Seoul-based "insurtech" company -- a portmanteau of “insurance” and “technology” that aims to innovate the traditional insurance industry through the use of information technologies

Oct. 10, 2023

Seoul sees no major disruptions in oil, gas imports amid Israel-Palestine conflict

South Korea has seen no major impact from the Israel-Palestine conflict on the country's imports of crude oil and natural gas, the trade ministry said Monday. Officials from the Ministry of Trade, Industry and Energy, the state-run Korea National Oil Corp. and the Korea Gas Corp held an emergency meeting earlier in the day to look into the supply of the two key fuel sources following the conflict, the ministry said. The government expects no delays or disruptions in importing oil and gas fr

Oct. 9, 2023

Foreigners ditch sluggish Korean stocks

Foreign investors dumped more than 6 trillion won ($4.44 billion) worth of shares listed on Kospi, Korea’s main bourse, in the past three months amid the slow stock market, data from the Korea Exchange showed Sunday. Non-Korean investors’ net buying on Kospi this year dropped to 7.23 trillion won on Friday after reaching the peak at 14.06 trillion won on June 16. The offloaded shares in the past three months -- worth 6.73 trillion won -- mean foreigners have sold nearly half of the

Oct. 8, 2023

Subway fare in greater Seoul rises to 1,400 won

The basic fare for the subway in the Seoul metropolitan area has gone up by 150 won (US$0.11) to 1,400 won starting Saturday, city government officials said. The adjusted fare was applied from the first trains operating across Seoul, the surrounding Gyeonggi Province and Incheon earlier in the day. It is the first time that public transportation fares in the capital have been raised in eight years since the last markups in June 2015. The basic subway fare now stands at 1,400 won if paid by credi

Oct. 7, 2023

Foreign reserves down for 2nd month in September on strong dollar, stabilization measures

South Korea's foreign reserves fell for a second straight month in September due to the US dollar's rise and market stabilization measures, central bank data showed Friday. The country's foreign reserves had come to $414.12 billion as of end-September, down $4.18 billion from the previous month, according to the data from the Bank of Korea. The dollar's ascent last month reduced the converted value of holdings denominated in other currencies, the BOK explained. The dollar ind

Oct. 6, 2023

BOK, BIS, other central banks seek to launch cross-border transaction project

South Korea's central bank said Friday that, along with the Bank for International Settlements and other central banks, it will launch a project together to automate compliance procedures and offer real-time monitoring in cross-border transactions. In a statement, the Bank of Korea said BIS Innovation Hub Singapore Centre, Reserve Bank of Australia, the BOK, Bank Negara Malaysia and Monetary Authority of Singapor will launch a project, dubbed Project Mandala, which explores the feasibility

Oct. 6, 2023

S. Korea's consumer prices accelerate in September on higher oil costs

South Korea's on-year consumer prices accelerated by the most in five months in September, driven by higher oil costs and rising prices of some farm goods, data showed Thursday. Consumer prices, a key gauge of inflation, rose 3.7 percent last month from a year earlier, according to the data from Statistics Korea. In August, consumer prices increased 3.4 percent on-year, accelerating from 2.3 percent growth tallied in July. It was the highest on-year rise since the 3.7 percent growth tallied

Oct. 5, 2023

Korea to begin experiment with central bank digital currency

South Korean authorities are to chart out a new era of digital payments, carrying out a pilot test for a central bank digital currency, or CBDC, to determine how it could be used as savings and transactions vehicles, according to an announcement made by related authorities on Wednesday. From the fourth quarter of next year, not only banks and other financial institutions, but also individuals will be able to test out the CBDC platform under a pilot program. The Bank of Korea, Financial Services

Oct. 4, 2023

S. Korea, UAE hold formal talks for free trade deal

South Korea and the United Arab Emirates have launched formal negotiations for a bilateral free trade agreement, Seoul's industry ministry said Wednesday. The two nations agreed in 2021 to push for forging a Comprehensive Economic Partnership Agreement, and the first round of talks kicked off in Seoul on Monday for a four-day run, according to the Ministry of Trade, Industry and Energy. The CEPA is a type of FTA, which emphasizes a broader scope of economic cooperation and exchanges on top

Oct. 4, 2023

Industrial output rises 2.2% in August on chip recovery

South Korea's industrial output rebounded in August from a month earlier on the back of a robust recovery in the chip sector, data showed Wednesday. The industrial output advanced 2.2 percent in August from the previous month, after slipping 0.8 percent in July, according to Statistics Korea. It was the sharpest growth since a 2.3 percent rise tallied in February 2021. The rebound came after the country's industrial output, retail sales and facility investment all lost ground at the sa

Oct. 4, 2023

Why retail investors are flocking to state bonds

The South Korean government has decided to allow retail investors to directly invest in state bonds from next year amid the recent fervor for bond investments among individuals. Last month, the government announced its planned revision to the State Bond Act, which aims to roll out bond products solely for retail investors. Korea issues state bonds worth 150 trillion won ($110 billion) every year, but the market has been largely dominated by institutional investors. As of the end of June, almost

Oct. 3, 2023

S. Korea's drop in exports eases in Sept. on chip sales recovery

South Korea's exports fell for the 12th consecutive month in September but logged the smallest on-year decline so far this year, as global demand for semiconductors has been on the recovery track, the industry ministry said Sunday. Outbound shipments fell 4.4 percent on-year to $54.66 billion last month, according to the data compiled by the Ministry of Trade, Industry and Energy. Exports have marked an on-year drop since October last year amid aggressive monetary tightening by the United S

Oct. 1, 2023