Banks' household loans inch down amid tightening efforts

Banks' household loans inch down amid tightening efforts Despite banks' move to tighten household lending, home-backed loans fell a mere 5 percent on-month in September from a record high level a month earlier, data showed Sunday. The daily average amount of new mortgages extended by five major lenders came to 301.8 billion won ($230.1 million) in Sept. 1-26, down 16 percent from the daily average logged in August, according to data from the banks. Excluding the three-day Chuseok holid

Sept. 29, 2024

Credit card loans hit record high this year: data

Credit card loans have risen sharply to reach an all-time high this year as banks have tightened lending and small businesses have suffered financial difficulties amid weak domestic demand, officials said. Loans extended by eight major credit card firms reached 44.67 trillion won ($34.05 billion) during the first eight months of 2024, surpassing the total amount for all of 2023, which stood at 41.55 trillion won, according to data from the Financial Supervisory Service and released by Rep. Kang

Sept. 29, 2024

Biz outlook down for 3rd month in September amid recession woes

South Korea's business sentiment dipped for the third consecutive month in August amid dim prospects for the US economy and other major economies, a central bank poll showed Friday. Local companies' business sentiment index (BSI) stood at 91.2 this month, down from 95.1 the previous month following the 92.5 in July, according to the survey by the Bank of Korea. The index measures corporate prospects for business conditions. A reading below 100 means pessimists outnumber optimists. The

Sept. 27, 2024

Korea to face another massive shortfall in tax revenue

The South Korean government is expected to see another significant shortfall in tax revenue this year, due mainly to the sluggish semiconductors industry and the real estate market slump, according to the Ministry of Economy and Finance on Thursday. The government is forecast to collect 337.7 trillion won ($254 billion) this year, 29.6 trillion won -- 8.1 percent -- less than the ministry's earlier forecast when planning the 2024 budget. This year’s projection is 6.4 trillion won unde

Sept. 26, 2024

Egypt offers gateway for Korean businesses in emerging markets: ambassador

Egypt's Ambassador to Korea, Khaled Abdelrahman, highlighted the growing potential for collaboration between Egypt and South Korea, particularly in investment and tourism, during the second session of the Global Business Forum Wednesday. Hosted by The Korea Herald, the forum seeks to facilitate knowledge exchange and build networks among Korean business and academic leaders to address the challenges posed by technological advancements and societal shifts. The GBF commenced its sixth edition

Sept. 26, 2024

Financial firms turn to carbon trading for growth, ESG goals

The local carbon trading market is set for a boost early next year, with an influx of financial firms joining as players and securities firms expanding their roles as transaction brokers. Effective Feb. 7, 2025, the government has amended the Enforcement Decree on the Allocation and Trading of Greenhouse Gas Emission Permits, allowing financial institutions -- such as asset managers, banks and insurers -- to participate. These firms will be required to trade through brokers. The revision also es

Sept. 26, 2024

Household debt poses risk to financial stability: BOK

South Korea's financial system remains relatively stable, but rising household debt and home prices may increase potential financial instability, a central bank report showed. In its report on financial stability, the Bank of Korea said there are high expectations about monetary easing as household debts and home prices do not show signs of drastically slowing down. The central bank warned of high chances of financial imbalance growing due to a rise in home prices and household debts. The a

Sept. 26, 2024

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