Articles by Choi Si-young
Choi Si-young
siyoungchoi@heraldcorp.com-
S. Korea engulfed by rising stagflation fears
Fears over rapid inflation and sluggish growth are gripping South Korea, with indicators pointing to a gloomy outlook and authorities conceding that Asia’s fourth-largest economy is facing a “full-blown crisis.” The Finance Ministry on Thursday revised up its inflation forecast for this year to 4.7 percent from 2.2 percent, with the estimate surpassing 4 percent for the first time in 11 years. Import prices jumped 36.3 percent in May from the same period a year ago on soaring
Economy June 16, 2022
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Kospi slumps in 7-day losing streak
South Korea’s benchmark Kospi fell 45.59 points, or 1.83 percent, from a day earlier to 2447.38 Wednesday, marking a seventh straight negative session as investors dramatically raise their bets on a US Fed hike of 75 basis points on Wednesday there, steeper than the 50 basis points it had indicated. The main board slid to an intraday low of 2436.04, a new 52-week low, as foreign investors carried on a sell-off for a ninth session straight, outweighing purchases by institutional and retai
Market June 15, 2022
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As US Fed decision looms, Kospi sinks under 2,500
Simmering fears over a sharper-than-expected US Federal Reserve rate hike amid red-hot US inflation dragged down South Korea’s benchmark Kospi below the 2,500 mark for the first time in 19 months on Tuesday. The main board closed at 2,492.97, after reaching an intraday low of 2,457.39. The Fed will raise interest rates on Wednesday there, with investors dramatically raising their bets on a hike of 75 basis points, steeper than the 50 basis points the Fed had indicated
Market June 14, 2022
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Kospi hits 19-month low as US inflation skyrockets
South Korea’s benchmark Kospi closed at 2,504.51 Monday, its lowest level since Nov. 13, 2020 when it fell to 2,493.87, as investors priced in a big US rate hike amid a record annual increase in US consumer prices in May. A month earlier, US consumer prices surged 8.6 percent on-year, the largest gain since 1981 on record-high gasoline prices and soaring food costs, fueling bets on a sharper rate hike than the half percentage point raise the US Fed had indicated. The Fed’s two-
Market June 13, 2022
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BOK chief signals July rate hike amid soaring inflation
Bank of Korea Gov. Rhee Chang-yong on Friday backed a “timely” rate hike to avoid fallout from a belated decision, ahead of a policy board meeting in July, in an address to mark the 72nd anniversary of the bank’s founding. The central bank has already lifted interest rates three times this year, doing so at every policy meeting except for the one in February -- a decision experts say demonstrates the central bank’s determination to alleviate the increasing burden on
Economy June 10, 2022
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[Newsmaker] McDonald’s seeks to sell Korean branch again
McDonald’s, the world’s largest burger chain by revenue, is seeking a buyer to take over the Korean business it wholly owns, six years after its first attempt, which fell apart after a local dairy company backed out. “We’re looking for a strategic partner who could help our business here grow. We’re looking at several options with outside advisers,” a McDonald’s Korea official said Friday, declining to elaborate on details. Mirae Asset Securities will
Industry June 10, 2022
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Korea’s Q1 GDP falls short on weak investment, consumption
South Korea’s economy grew 0.6 percent in the first quarter this year from three months earlier, lower than the 0.7 percent growth forecast in April, the Bank of Korea said Wednesday, citing weak investment and consumption as factors behind the revision. Growth in the gross domestic product for January-March, which slowed from 1.3 percent on-quarter in the previous cycle, expanded 3 percent on-year, also a drop from the 3.1 percent growth the central bank projected in April. “Data
Economy June 8, 2022
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Crisis management expert named as new FSC chief
Kim Joo-hyun, chairman of the Credit Finance Association and a former bureaucrat experienced in crisis management at the Financial Services Commission, was tapped to lead the top financial policymaker under the Yoon Suk-yeol government. Kim helped South Korea ride out the 2008 financial crisis as the inaugural chief of policy at the FSC, which was set up in January that year as part of a government reshuffle carried out by then-President Lee Myung-bak, who took office a month later. In 2011, K
Economy June 7, 2022
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Korea’s household debt highest among major economies: report
South Korea’s household debt topped 104 percent of gross domestic product, marking the highest level among 36 major economies, the Institute of International Finance’s data showed. Korea’s household debt fell to 104.3 percent of GDP in the first quarter of this year from 105 percent in the same period a year earlier, still outrunning rivals by a large margin, according to the report the Washington-based private financial industry association released May 18. Household debt l
Economy June 6, 2022
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BOK chief stresses post-pandemic role
Central banks should think about what they should do besides keeping prices stable as emerging economies including South Korea struggle to avert anemic growth once persistent inflation caused by the pandemic cools off, Bank of Gov. Rhee Chang-yong said Thursday at a conference. “To escape a low growth, low inflation trap, should emerging market economies, or Korea for that matter, follow the same advice professor Paul Krugman gave to central bankers in advanced economies, to ‘credib
Economy June 2, 2022
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Businesses step up push for hydrogen support
The South Korean government should help companies build a hydrogen economy because using the renewable energy ensures growth as businesses race to reduce their carbon footprint, Woo Tae-hee, vice chairman of the Korea Chamber of Commerce and Industry, said Tuesday at a forum on green hydrogen. “I believe it is time for us to turn the climate crisis into an opportunity to secure the hydrogen market and improve our economy with strong commitment and collective wisdom,” Woo said at the
Industry May 31, 2022
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BOK rate hike to weigh on self-employed
Self-employed workers will likely bear the brunt of the Bank of Korea’s rate hike on Thursday, the fifth raise since August last year from the central bank’s record low of 0.5 percent amid persistent inflation, a credit ratings agency said Friday in a report. The self-employed in 2020 spent 46 percent of their annual income amid falling earnings to settle debt while households used 34 percent on average to do the same, according to Korea Investors Service.
Economy May 27, 2022
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Convenience stores frequented by men more than women: data
South Korean men shop at a convenience store more often than women, with men in their 20s visiting most often among all age groups of both men and women, at nine times a month on average, according to data released by Samsung Card on Thursday. In the first quarter this year, men using the firm’s card visited a convenience store 6.3 times a month on average, while women shopped there 3.9 times a month on average. How many users were surveyed were not known but as of September last year,
Industry May 26, 2022
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Korea mulls 50-year mortgages for newlyweds
The Yoon Suk-yeol government is considering extending mortgage loan maturity terms for newlyweds and young Koreans aged 19-39 as part of efforts to follow through on a pledge to help young people acquire their homes, amid runaway housing prices in the Seoul metropolitan area. Under the new plan, young people would be able to repay their loan over 50 years, instead of 40 years, the longest repayment period currently offered to newlyweds and Koreans in that age group. “The 50-year loan sc
Economy May 25, 2022
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Inflation outlook highest in 9 years ahead of rate hike
South Korean households’ outlook for inflation in the next 12 months rose this month to the highest level in nine years and seven months, according to a Bank of Korea survey released Tuesday ahead of its rate decision Thursday. Survey respondents forecast inflation to average 3.3 percent, up from the previous record high of 3.1 percent in April. In a monthly survey of 2,500 households conducted May 10-17, the BOK said consumers have braced for higher borrowing costs ahead, wit
Economy May 24, 2022
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