Regulator vows zero tolerance for illegal transaction of virtual assets

The country's top financial watchdog warned against illegal transactions of virtual assets, calling on cryptocurrency exchanges and other virtual asset firms to strictly follow rules. The warning came about two months after the country enacted the new Virtual Asset Users Protection Act, allowing the maximum penalty of life imprisonment for financial gains of more than 5 billion won ($3.75 million) through illegal transactions of virtual assets. "The financial government will continue t

Sept. 26, 2024

Financial regulator calls for timely supply of funds to businesses

The financial regulator stressed the need to supply enough funds to local businesses in a "timely" manner, noting a recent US rate cut may increase market volatility. Kim So-young, deputy chief of the Financial Services Commission, also insisted that there still remained many uncertainties stemming from the upcoming US presidential election and increasing tensions in the Middle East, as well as widely expected rate reductions in major economies. "The speed of rate reductions in ma

Sept. 24, 2024

KHNP, Czech hydrogen group agree on cooperation for clean hydrogen

Korea Hydro & Nuclear Power said Monday it has signed a memorandum of understanding (MOU) with a Czech hydrogen association to seek cooperation for clean hydrogen. The agreement, inked with the Czech Hydrogen Technology Platform (HYTEP) in Prague last week, will focus on exchanging information and seeking cooperation in the European market for clean hydrogen, according to KHNP. Under the agreement, the two institutions aim to collaborate in the production of clean hydrogen using surplus ener

Sept. 23, 2024

Exports fall 1.1% during first 20 days of September

South Korea's exports lost 1.1 percent on-year in the first 20 days of September despite robust sales of semiconductors due mainly to the fewer number of working days and weak demand for automobiles, data showed Monday. Outbound shipments reached US$35.58 billion in the Sept. 1-20 period, compared with $35.97 billion tallied a year earlier, according to the data from the Korea Customs Service. Per-day exports, however, advanced 18 percent on-year to $2.74 billion. The number of working days

Sept. 23, 2024

[Herald Interview] US election may unleash growth for Korea: Laffer

With the upcoming US presidential election scheduled for November, South Korea stands to benefit significantly if the new administration brings a change in economic policy, according to Arthur B. Laffer, founder and chairman of Laffer Associates. "A return to pro-growth economic policies in the US is a prerequisite for widespread global economic growth, much as we saw during the Reagan era, where nations around the world cut tax rates after seeing US success," Laffer said during an ema

Sept. 22, 2024

Household loan growth slows in September

The growth pace of household loans slowed in September amid fresh loan tightening measures and the extended holiday period, data showed Sunday. As of last Thursday, the accumulative household loan balance at the five major banks — KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and NongHyup Bank — totaled 728.9 trillion won ($545.6 billion), reflecting a marginal increase of 2.72 trillion won since the end of August. At the current pace, the monthly increase for September is ex

Sept. 22, 2024

Korea’s influential ‘ants’ to rally against capital gains tax

South Korea’s retail investors are trying to exert their influence on the country’s stock market policies, having tasted success in their last campaign. Dubbed as “ants” for their ability to influence policies when they act as a group, the individual investors are backing a proposal by President Yoon Suk Yeol’s administration to scrap a capital gains tax imposed on financial investments. The main opposition Democratic Party opposes the abolition of the levy, say

Sept. 21, 2024

Bank of Korea eyes rate cut after US Fed's historic pivot

Following the US Federal Reserve's historic half-point rate cut, expectations are rising that South Korea may follow suit, while closely monitoring its overheated real estate market and soaring household debt. On Wednesday, following a two-day Federal Open Market Committee meeting, the Fed cut its benchmark rate by 50 basis points, marking its first reduction in over four years since the COVID-19 pandemic outbreak in 2020 and the first half-point cut since the 2008 global financial crisis.

Sept. 19, 2024

Fast-food delivery industry logs 23% growth in H1

South Korea's food delivery industry continued to grow this year, with the most prominent increase seen in fast-food delivery services, according to a Thursday report by a local data analysis firm. The value of food delivery services came to 7.87 trillion won ($5.9 billion) in the first half of the year, according to Finda, marking a 6.55 percent increase compared to the same period last year. Fast-food delivery in particular saw a rise of 22.72 percent to come in at 1.72 trillion won for t

Sept. 19, 2024

Container shipping costs to US east coast, Europe up for 4th month

Container shipping costs from South Korea to the US east coast and Europe increased for the fourth consecutive month in August amid prolonged geopolitical risks in the Red Sea, data showed Thursday. The average shipping cost for a 40-foot container from South Korea to the US east coast rose 11.9 percent on-month to 8.66 million won ($6,530), according to data from the Korea Customs Service. The cost to Europe increased to 8.06 million won, up 2.8 percent over the same period. On the other hand,

Sept. 19, 2024

Finance minister says to swiftly take market stabilization measures if needed

Finance Minister Choi Sang-mok said Thursday the government will work closely with the Bank of Korea and swiftly take market stabilization measures if necessary, as the US Federal Reserve cut its interest rates for the first time in over four years. "Following the Fed's monetary policy pivot, the market is moving away from a complex global crisis, which was triggered by excessive liquidity supplied to cope with the pandemic, as well as shocks to the global supply chain caused by the wa

Sept. 19, 2024

BOK likely to cut key rate in November: analysts

South Korea's central bank is likely to cut its policy rate in November, rather than in October, as it wants to be confident of a slowdown in household debt increase amid moderating inflation, analysts have said. The Bank of Korea has only two rounds of its monetary decision meetings left this year in October and November. Last month, the BOK kept interest rates unchanged at 3.5 percent, the highest level in about 16 years, for the 13th straight time. The central bank delivered seven cons

Sept. 14, 2024

Economy shows signs of recovery on strong exports, soft inflation: finance ministry

The South Korean economy continues to show signs of recovery, driven by strong exports and manufacturing output, with consumer prices showing signs of stabilization, the finance ministry said Friday. The Ministry of Economy and Finance made the assessment in the Green Book, its monthly economic report, noting that domestic demand is also recovering, led by facility investment and the service sector. "The South Korean economy is experiencing a recovery trend amid the stabilization of consume

Sept. 13, 2024

Finance chief vows tighter control on household debt

Finance Minister Choi Sang-mok vowed Thursday to curb snowballing household debt and thoroughly control the payment crisis involving e-commerce platforms Tmon and WeMakePrice. The nation's household debt has been on fast growth, sparked by a rise of mortgage loans with the increasing number of housing transactions since around June, Choi said at a meeting of economy-related ministers held at the governmental complex in central Seoul. "The government will work to stably control the risi

Sept. 12, 2024

Online retail continues rapid growth

South Korea's consumer market increased by 33.3 percent from 2014 to 2023, with the annual growth in non-store retailing such as online markets outstripping that of large stores by tenfold. The consumer market for the country was 509.5 trillion won ($380.4 billion) in 2023, up from 382.3 trillion won in 2014, the Korea Chamber of Commerce and Industry's analysis based on Statistic Korea data showed Wednesday. The report looked at the total growth in the time period over various secto

Sept. 11, 2024

BIS raises alarm on Korea's surging household credit

The Bank for International Settlements has cautioned that South Korea’s expanding private sector credit is beginning to weigh on economic growth, with further increases posing additional risks. The Switzerland-based consortium of central banks recently published a report indicating that while rising private sector credit can boost economic activity in emerging markets, exceeding certain levels may lead to growth deterioration. The report described a "U-shaped" relationship betwee

Sept. 11, 2024

Exports rise 24.6% during first 10 days of Sept. on strong chip sales

South Korea's exports rose 24.6 percent on-year in the first 10 days of May on robust global demand for semiconductors, data showed Wednesday. Outbound shipments reached $18.58 billion in the April 1-10 period, compared with $14.91 billion tallied a year earlier, according to the data from the Korea Customs Service. Per-day exports advanced 16.3 percent on-year to $2.48 billion. Imports added 11.3 percent on-year to $18.4 billion during the period, resulting in a trade surplus of $200 milli

Sept. 11, 2024

Job additions rise over 100,000 for 2nd straight month in Aug.

South Korea added more than 100,000 jobs for the second consecutive month in August, but jobs in the construction sector fell by the most ever amid an industry slowdown and extreme heat wave, data showed Wednesday. The number of employed people came to 28.80 million last month, up 123,000 from a year earlier, according to the data compiled by Statistics Korea. In July, the monthly job additions bounced back to over 100,000 for the first time in three months to come to 172,000. In June, 96,000 jo

Sept. 11, 2024

Minister pushes for inheritance tax overhaul

The South Korean government is stepping up efforts to overhaul its inheritance tax system next year, with the Finance Ministry preparing a bill to tax the inheritors instead of the estate that is being inherited. "To enhance fairness and ensure consistency in taxation, as well as align with global trends, the government plans to shift to an inheritance acquisition tax system," Finance Minister and Deputy Prime Minister Choi Sang-mok said Monday in a meeting with journalists at the gove

Sept. 10, 2024

Finance minister calls for scrapping financial investment income tax

Finance Minister Choi Sang-mok has said the government needs to scrap a financial investment income tax and review various tax schemes regarding stock trading in an effort to ease market uncertainty and help boost the stock market. Under the investment income tax scheme, set to take effect next year, capital gains of over 50 million won ($38,000) from stock investments will be subject to a 20 percent tax, while earnings exceeding 300 million won will be subject to a 25 percent tax. "The sch

Sept. 10, 2024