BOK chief says won will level off if Middle East conflict eases

Bank of Korea Governor Rhee Chang-yong, during his visit to the United States, projected the volatility of the won-dollar exchange rate would ease if the Middle East tension did not escalate further. The won-dollar exchange rate has been fluctuating heavily over the past few weeks, influenced by the strong demand for the greenback, with the anticipation that the US Federal Reserve will continue its aggressive monetary tightening due to the hotter-than-expected inflation readings. The strong safe

April 21, 2024

Gold trading volume spikes amid Mideast crisis

The trading volume of gold in South Korea has jumped sharply this month amid escalating tensions in the Middle East, data showed Saturday. The daily trading volume of gold in the country came to 16.9 billion won ($12.25 million) as of Friday, according to the data from the Korea Exchange, the country's bourse operator. The reading marks a sharp increase from a daily average of 6.86 billion won for March. Such an increase follows tensions in the Middle East, prompted by Iran's drone and

April 20, 2024

S. Korea pledges W23tr venture capital fund for green investment at G20 meeting

South Korean Finance Minister Choi Sang-mok unveiled the country's plan to bolster green investment in the private sector by establishing a venture capital fund worth 23 trillion won ($16.6 billion), the ministry said Friday. Emphasizing the importance of leveraging private capital for climate financing, Choi made the announcement during the Group of 20 finance leaders' meeting held in Washington on Wednesday and Thursday, the ministry said. During a session on sustainable finance, Cho

April 19, 2024

Economics professor, ex-BOK official named as new monetary policymakers

The Bank of Korea said Friday that an economics professor and a former BOK official have been recommended to replace two outgoing monetary policymakers of the central bank. Lee Soo-hyung, a professor at Seoul National University, and Kim Jong-hwa, a former BOK deputy governor, were named to sit on the BOK's seven-member rate-setting board. If appointed by President Yoon Suk Yeol, Lee and Kim will start their four-year terms by replacing Suh Young-kyung and Cho Yoon-je, respectively. Lee and

April 19, 2024

Exchange rate volatility does not pose 'significant' economic challenges in Korea's case: IMF official

Exchange rate volatility does not present 'significant" economic challenges to South Korea, an official at the International Monetary Fund said Thursday, advising policymakers in Seoul not to "overly" focus on what moves the US Federal Reserve will take. During a press briefing, Krishna Srinivasan, director of the IMF's Asia and Pacific Department, made the remarks as concerns deepened over the recent depreciation of the Korean won at a time when Asia's fourth large

April 19, 2024

Trilateral talks acknowledge ‘serious’ slumps of won, yen

The top finance policymakers of South Korea, the US and Japan shared their concern on the recent devaluation of the Korean won and the Japanese yen during their first trilateral talks Wednesday. Korea's Finance Minister Choi Sang-mok, US Treasury Secretary Janet Yellen and Japan's Finance Minister Shunichi Suzuki held three-way talks on the sidelines of the International Monetary Fund and Group of 20 finance leaders' meetings in Washington. They were the first trilateral talks to

April 18, 2024

Regulator calls for collaboration of shareholders, firms

The head of the financial regulator on Thursday stressed the need for businesses and their shareholders to work together to ensure joint development, saying the government will work to create a virtuous cycle between shareholder activities and business growth. Lee Bok-hyun, chief of the Financial Supervisory Service, noted that shareholder activism will only continue to grow, but said efforts by shareholders may end in vain unless they are sound and reasonable enough to be supported by other sha

April 18, 2024

Korea, Japan finance chiefs vow to tame rampant FX market volatility

South Korea and Japan’s finance ministers voiced concerns over the recent depreciation of their currencies against the US dollar, showing their intention to step into the market to support the won and yen, according to Korea's Finance Ministry on Wednesday. Finance Minister Choi Sang-mok met with his Japanese counterpart Shunichi Suzuki on Tuesday for the first time since he took office on the sidelines of the G20 Finance Ministers and Central Bank Governors Meeting in Washington. &ld

April 17, 2024

Indo-Pacific deal on supply chains takes effect in S. Korea

A US-led Indo-Pacific agreement on supply chains went into effect in South Korea, Seoul's trade ministry said Wednesday. The Indo-Pacific Economic Framework was launched by US President Joe Biden in 2022, involving 14 member nations, including South Korea, the United States and Japan. "The government plans to come up with measures to utilize the IPEF, as the country needs a policy that supports the industrial supply chain," Trade Minister Cheong In-kyo told a meeting with corporat

April 17, 2024

Credit card transactions hit W900tr in 2023

Last year, South Korea's card payments surged past 900 trillion won ($644.6 billion) for the first time, amid heightened inflation and escalating consumer prices. Data compiled by the Financial Supervisory Service reveals that the combined card payment performance of the nation's eight major credit card companies -- Shinhan, Samsung, Hyundai, KB Kookmin, Lotte, Woori, Hana, and BC -- reached 920.5 trillion won, marking a 6.4 percent increase from the 2022 total of 856.4 trillion won. T

April 16, 2024

Finance chiefs of Korea, US, Japan to hold 3-way talks for first time

Finance leaders from South Korea, the United States and Japan were set to hold their first-ever trilateral meeting in Washington on Wednesday, to step up economic cooperation amid heightened geopolitical risks in the Middle East. Finance Minister Choi Sang-mok departed for the US on Tuesday to attend the three-way meeting, as well as a meeting of Group of 20 finance ministers and central bank presidents as part of the annual Spring Meetings between the International Monetary Fund and the World

April 16, 2024

Korean won weakens amid heightened uncertainty

The Korean won weakened to 1,400 won against the US dollar during trading hours Tuesday, marking a new 17-month low as the Korean economy faces headwinds from the escalating volatility in the Middle East. The local currency against the greenback closed at 1,394.5 won, losing its value by 10.5 won from the previous trading day. Shortly after trading began at 1,389.9 won, the rate weakened to 1,400 won to $1 at 11:32 a.m., marking the first time in 17 months for the currency exchange rate to hit t

April 16, 2024

Korea braces for blows from Middle East conflict

The heightened geopolitical tensions from Iran's attack on Israel have cast gloom on Korea as well, bringing down local shares and leading to currency depreciation. While the Korean won has been losing its value against the US greenback in recent days with weakened anticipation on the US Federal Reserve taking a pivot in its monetary policy any time soon, the escalated volatility has led to further depreciation. The won weakened against the dollar on Monday, with the exchange rate closing a

April 15, 2024

Financial regulator seeks support to help S. Korean member join IASB

The deputy chief of South Korea's financial regulator on Monday sought the support of Andreas Barckow, chief of the International Accounting Standard Board, for the country's efforts to secure a spot on the international board. Kim So-young, vice chairman of the Financial Services Commission, made the request in a meeting in Seoul. The IASB chief is on a visit to South Korea to take part in the International Forum of Accounting Standard Setters, set to be held Wednesday through Frida

April 15, 2024

S. Korea to extend fuel tax cut through June amid Middle East tensions

The government will extend the tax cut on fuel consumption by an additional two months amid growing tensions in the Middle East, Finance Minister Choi Sang-mok said Monday. South Korea has applied a 25 percent discount on the consumption of gasoline and a 37 percent discount on the consumption of diesel and liquefied petroleum gas, which were supposed to expire at the end of this month. The government began implementing a fuel tax cut scheme in 2021 and has extended it eight times so far, with t

April 15, 2024

S. Korea ups guard against economic impact from Middle East conflict

The South Korean government on Sunday announced heightened vigilance against potential domestic repercussions in light of the escalated tensions in the Middle East following Iran's attack on Israel. President Yoon Suk Yeol convened an emergency meeting with cabinet members and relevant government agencies to discuss strategies to respond to the the ongoing conflict between Iran and Israel. The meeting followed Iran's launch of drones and missiles into Israel early Sunday, apparently in

April 14, 2024

BOK holds rate, wary of inflation's ‘last mile’

Nearing the “last mile” of its fight against rising prices, the Bank of Korea held the base rate at 3.5 percent for the 10th consecutive time Friday. The monetary policy board of the central bank decided to maintain the rate through a unanimous vote, keeping the rate steady for more than a year since February 2023, BOK Gov. Rhee Chang-yong said at a press conference held shortly after the rate-setting decision. “While the headline and core inflation moved in a nearly synchroniz

April 12, 2024

Uneven pace of economic recovery among sectors continues in S. Korea: finance ministry

The South Korean economy has largely been on a recovery track on the back of robust growth of exports and manufacturing production, but domestic demand remains weak and uncertainties have grown over global prices of raw materials, the finance ministry said Friday. "Our economy has seen an economic recovery centering on manufacturing output and exports while reporting a high level of employment," the Ministry of Economy and Finance said in the Green Book, its monthly economic assessment

April 12, 2024

[Herald Interview] Weak consumption, property risk could delay Korea’s recovery: ADB economist

While recent figures indicate the Korean economy is on the path of recovery, weak household consumption and a fragile property market could remain challenges for the country, an economist from the Asian Development Bank projected. In its Asian Development Outlook report released Thursday, the international organization based in Manila forecast Korea's gross domestic product to grow by 2.2 percent in 2024 and 2.3 percent in 2025, signaling a turn from the 1.4 percent increase observed last y

April 11, 2024

Yoon's plans to boost stock market likely to fizzle

With the liberal opposition clinching a landslide victory in Wednesday's general election, expectations over President Yoon Suk Yeol’s economic policies that favor stock market investment falter. Yoon’s People Power Party faced a major defeat in the parliamentary elections, as the main opposition Democratic Party of Korea and its satellite party won 175 seats in the 300-member National Assembly. The election results sent a signal to the market that Yoon and his party’s drive to

April 11, 2024