Articles by Choi Si-young
Choi Si-young
siyoungchoi@heraldcorp.com-
BOK signals rate hike slowdown while slashing growth forecast
Bank of Korea Gov. Rhee Chang-yong told lawmakers Monday that the central bank will deliver the usual 0.25 percentage point interest rate hikes this year, while acknowledging that the economy would fall short of the 2.7 percent annual growth for 2022. The central bank a month ago backed its biggest single rate raise of 0.5 percentage point to tame persistent inflation prompted by a global surge in materials and food costs. The bank holds three more board meetings, each in August, October and No
Economy Aug. 1, 2022
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Foreign investors turn net buyers of South Korean stocks in July
Foreign investors were net buyers of South Korean stocks in July, reversing their selling spree for the last six months over recession worries and looking to step in and buy on the cheap amid signs of a market bottom. According to the Korea Exchange on Sunday, foreigners purchased net 2.3 trillion won ($1.7 billion) worth of shares on the benchmark Kospi, the highest monthly volume since a 3.3 trillion-won inflow in December last year. The main board rose to 2,451.50 Friday, up 5.1 percent from
Market July 31, 2022
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Inflation outlook hits all-time high as growth prospects dim
South Koreans expect prices to rise at a record level in the next 12 months and the economy to underperform, a Bank of Korea survey showed Wednesday, as the export-led economy faces shrinking growth over poor exports. In a monthly survey of 2,500 households conducted July 11-18, consumers forecast inflation to average 4.7 percent, hitting its highest level since 2008 when the central bank began releasing the data. The all-time high, up from the previous 3.9 percent in June, also marked the lar
Economy July 27, 2022
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Poor exports darken outlook for South Korea’s growth
South Korea’s worsening trade deficit is raising concerns over a growth slowdown for the export-led economy, despite unexpected growth reported in the second quarter. The Bank of Korea said Tuesday that gross domestic product for April-June rose 0.7 percent on-quarter, higher than the 0.6 percent growth in the first quarter -- fueled by the government’s decision to scrap practically all COVID-19 restrictions. “Consumer spending pushed up growth in the second
Economy July 26, 2022
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[Market Eye] Could banks trade crypto in Korea?
South Korea’s top financial regulator is looking to allow banks to start trading cryptocurrencies, but experts are wary of whether the agency is as committed to protecting consumers along the way, saying it has so far shown little interest in pursuing it. The latest plan the Financial Services Commission revealed last Tuesday is part of its larger deregulation initiative to loosen rules that prevent banks from expanding into businesses the agency has not authorized, such as initial coin
Economy July 26, 2022
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Bank of Korea warns against worsening wage-price spiral
The higher people expect prices to soar, the worse a wage spiral becomes as rising living costs prompt bigger wages, with persistent inflation on the rise, the Bank of Korea said Monday in a report. “Prices and wages look like they have nothing to do with each other, but in the long run, data consistently shows they do,” the report said, referring to surging prices in Korea. Inflation hit a 24-year high of six percent in June, prompting the central bank to back its first-t
Economy July 25, 2022
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DSME creditor warns of bankruptcy over shipyard strike
Daewoo Shipbuilding & Marine Engineering may face a court-ordered rehabilitation process unless action is taken on a monthlong strike there, the company’s main creditor Korea Development Bank said Friday. “It would be more difficult for DSME to repay its debts as the strike drags on … we’re not going to help the builder unless it gets back to work,” an executive at the state-run bank said, suggesting that the country’s third-largest shipbuilder would hav
Industry July 22, 2022
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Home prices drive household wealth
South Korean household wealth jumped 8 percent on-year, with net worth per household estimated at 544.7 million won ($415,593) thanks to a surge in house prices, a Bank of Korea report showed Thursday. Real estate made up 75 percent of household wealth. The net worth of households, nonprofit organizations, financial and nonfinancial companies and the government came to 19,000 trillion won, up 2,030 trillion won, or 11.4 percent, from the previous year. That is the biggest annual increase since
Economy July 21, 2022
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Work-life balance key to women leadership: Yellen
US Treasury Secretary Janet Yellen said work-life balance plays a key role in shaping a work environment that is appealing to women, who she described as still underrepresented in workplaces, at a meeting with the Bank of Korea’s female workers held Tuesday in Seoul. “Work-life balance is a tremendous problem. I guess it’s a huge problem here, too,” Yellen said, describing having a family while working in challenging jobs as a hurdle for women pursuing a career. The meet
Economy July 19, 2022
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Regulator holds firm on debt relief plan
South Korea’s top financial regulator said Monday that its plan to help low-income earners reduce their debt burdens does not encourage reckless investments in stocks or real estate, amid criticism that young Koreans who have made losses from such investments could repay debts with taxpayers’ money. “We’re not helping those who have had to cut their losses on stocks and cryptocurrencies to pay for loans (taken out for investment),” Kim Joo-hyun, chairman of the Fin
Economy July 18, 2022
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Weak won set to persist with US intent on more rate hikes
The South Korean won could further depreciate against the US dollar in months to come as long as the US backs aggressive monetary tightening to fight raging inflation, analysts said, as the Korean currency weakened to a 13-year low of 1,326.1 won per US dollar Friday. The breach of the 1,300 won psychological threshold -- prompted by rising US rates luring investors and soaring demand for the safe-haven asset amid global economic uncertainty -- is the latest indication that policymakers in Seou
Market July 17, 2022
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Yoon vows debt relief for low earners after rate hike
President Yoon Suk-yeol pledged Thursday to help low-income earners with their mounting debt burdens, a day after the central bank made its biggest single rate hike to tame persistent inflation, at a weekly meeting he convened for the second time. The meetings deal with pressing economic issues affecting what they call a “vulnerable group” of self-employed people, small business owners and those fresh out of college. Policymakers discussed inflation last week. This week, they unveil
Economy July 14, 2022
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[Market Eye] Short selling ban back in focus as stocks slide
South Korea’s top financial policymaker on Monday hinted at banning short selling again to prevent a jumpy stock market, but some market analysts say the plan should be reexamined since its effect on long-term market stability is still debatable. The ban -- which was temporarily put on the benchmark Kospi and junior Kosdaq in March 2020 over pandemic-induced volatility -- was partially lifted in May 2021, when the bearish investment practice was allowed on the Kospi 200 and the Kosdaq 15
Market July 13, 2022
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BOK backs historic rate hike amid growing recession fears
The Bank of Korea delivered a half-point interest rate hike Wednesday, the biggest increase since 1999, to tame unruly inflation, despite growing concerns the move could trigger soaring debt burden and an abrupt economic slowdown. The hike, which comes after inflation hit a 24-year high of six percent in June and takes the current policy rate to 2.25 percent, adds strain to the world’s highest household debt that amounts to a little over 104 percent of Korea’s gross domestic product
Economy July 13, 2022
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Seoul housing prices show signs of slowdown
South Korea’s overheated housing market is showing signs of cooling down, as Seoul housing prices have inched down in recent months with persistent inflation and soaring interest rates squeezing household budgets. According to the Land Ministry on Monday, apartment prices in Apgujeong-dong, a wealthy neighborhood in Gangnam-gu, Seoul, dropped by as much as 300 million won ($230,000) in June from the previous month. A price slowdown was palpable in other affluent Seoul districts like Son
Economy July 11, 2022
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