Most Popular
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Tensions heighten ahead of first president-opposition chief meeting
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Seoul to provide housing subsidy to married couples with newborns
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[KH Explains] No more 'Michael' at Kakao Games
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Rapper jailed after public street fight with another rapper
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Woman gets suspended term for injuring boyfriend with knife
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Samsung chief bolsters ties with Germany’s Zeiss
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Nominee for chief of anti-corruption body pledges 'independence, effectiveness'
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NewJeans pops out ‘Bubble Gum’ video amid troubles at agency
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Med schools expect 1,500+ new admission slots next year
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KT launches new mobile plans for foreign residents
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S. Korea, US sign a $60b currency swap deal
The Bank of Korea and the US Federal Reserve Board on Thursday signed bilateral currency swap arrangements totaling at $60 billion, to be effective for the next six months, South Korea's central bank said. "The latest (US-Korea) currency swap deal seeks to reduce the strain upon the recently struggling global dollar currency market," the BOK said in a late night release. The US Fed conventionally had permanent currency swap deals with five other central banks -- Canada, B
March 19, 2020
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BOK to purchase 1.5tr won in bonds as market stabilization step
The Bank of Korea on Thursday said it will purchase 1.5 trillion won ($1.16 billion) in state bonds to help stabilize the local market hit hard by growing jitters caused by the spread of the new coronavirus. "The Bank of Korea decided to purchase state bonds to help stabilize the bond market and expand its holdings subject to repurchase agreements," the central bank said in a press release. The announcement came shortly after local authorities said they are ready to step in if neces
March 19, 2020
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S. Korea to extend antidumping duty on Japanese steel plates
South Korea's trade watchdog said Thursday it will extend its existing antidumping duty on Japanese stainless steel plates, citing substantial damage to the local industry. The Korea Trade Commission said Seoul will continue to apply the 13.17 percent antidumping tariff on the Japanese products for the next five years. South Korea has been imposing the tariff on the Japanese plates since April 2011. The plates are widely used in different industries including the petrochemical, shipbuilding an
March 19, 2020
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S. Korea's exports of masks up 2,200% in Feb. amid coronavirus spread
South Korea's exports of protective masks surged nearly 23 times in February from a year earlier amid the global outbreak of the new coronavirus, data showed Thursday, although the volume is likely to plummet this month in line with the export ban. Outbound shipments of textile articles, which include masks, came to $157 million in February, up from $6.85 million a year earlier, according to the data compiled by the Korea International Trade Association. It also more than doubled from $7
March 19, 2020
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S. Korea ready to step in to ease credit crunch
South Korea said Thursday it will take steps to counter a potential credit crunch in the capital market amid growing market jitters caused by the outbreak of the new coronavirus. "The government will swiftly take market stabilization steps under its contingency plans if needed, so businesses will not face difficulties in securing necessary funds," Vice Finance Minister Kim Yong-beom said after a meeting in Seoul to review the country's financial condition. The official said the
March 19, 2020
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[Economy in Pandemic 2] South Korea likely to undergo temporary recession
The Korea Herald is publishing a series of interviews and analyses on the looming threat to the domestic economy from COVID-19. This is the second installment. -- Ed. The impact of the fast-spreading novel coronavirus on the global economy is far harder than projected, greater than the previous pandemics in the modern era. The latest virus outbreak is likely to trigger an economic recession globally -- more so in South Korea, which is heavily dependent on exports for its growth. Market watche
March 18, 2020
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S. Korea raises cap on currency forward positions amid forex imbalance
In an emergency move to counter the latest market disturbance caused by COVID-19, South Korea’s government on Wednesday activated a “phase one contingency plan,” expanding the cap on foreign exchange forward positions of banks. It also said that it will reduce the airport landing fees for airplanes and exempt highway tolls for express buses, as a relief measure for the transportation industry which took the hardest blow from the epidemic spread. Starting Thursday, local ba
March 18, 2020
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US shale firms' crisis may benefit Korean refiners: sources
South Korean oil refiners will likely benefit from a crisis in the US shale industry sparked by plunging international crude prices, industry sources said Wednesday. A recent tumble in oil prices is projected to cut US shale oil firms' production sharply down the road, leading to a drop in supply from American producers and rising prices of petroleum products. According to the sources, Bloomberg New Energy Finance (BNEF) recently predicted US shale oil output to drop by 1 million barre
March 18, 2020
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Coronavirus could trigger ‘unprecedented’ economic crisis: vice minister
In an emergency response to the latest stock market plummeting in the United States, the South Korean government on Tuesday warned that the ongoing coronavirus pandemic could possibly expand into an “unprecedented” economic crisis. “We should take into account that the spread of COVID-19 may lead to an unprecedented complex crisis situation for both the real economy and the financial market,” said Kim Yong-beom, first vice minister of finance, in an urgent meeting wit
March 17, 2020
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[Economy in Pandemic] Coronavirus puts Korean economy into uncharted territory
The Korea Herald is publishing a series of interviews and analysis over looming threats of COVID-19 on the Korean economy and beyond. This is the first installment. -- Ed. Despite a series of emergency actions being taken by governments around the world, the novel coronavirus -- and its resulting disease COVID-19 -- is wielding sweeping power over the global financial market and the real economy, indicating rising global recession risks. The Bank of Korea cut its policy rate Monday to a recor
March 17, 2020
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Korea's money supply grows in Jan.
South Korea's money supply continued to grow in January, partly on an increase in funds held by local households, central bank data showed Tuesday. The country's M2 came to 2,927.5 trillion won ($2.36 trillion) as of end-January, up 0.7 percent from a month earlier, according to preliminary data from the Bank of Korea (BOK). From a year earlier, the reading marks a 7.8 percent rise. M2 is a measure of the money supply that counts the currency in circulation, including bank debentures and dep
March 17, 2020
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[News Focus] COVID-19 makes Korean currency cheaper
SEJONG -- A country’s interest rate generally determines the value of its currency, although this formula may not be applicable to safe havens such as the US dollar, the euro, the British pound and the Japanese yen. For an emerging country whose currency depends on reserve currencies like the dollar, a low interest rate incurs an outflow of foreign capital as the currency becomes less attractive to investors. Capital flight results in a cheap local currency. Over the past few
March 17, 2020
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S. Korea to spend W30b won to support fishery industry
South Korea said Tuesday it will allocate 30 billion won ($24.2 million) to fishing businesses hit hard by the economic fallout from the global spread of the new coronavirus. The decision came amid a sharp decrease in the consumption of seafood from home and abroad due to the COVID-19 epidemic. South Korea said it will provide 20 billion won in loans with a low interest rate of 1.3 percent to local aquaculture households whose sales have tumbled by 15 percent or more in February from a month
March 17, 2020
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Agriculture exports to China drop 6.7% on virus in Jan.-Feb.
South Korea's exports of farm goods to China fell 6.7 percent in the first two months of the year due to the spread of the novel coronavirus, government data showed Tuesday. Shipments of agricultural and livestock products to the neighboring country came to $138 million in the January-February period, compared with $148 million during the same period a year earlier, according to the data from the Ministry of Agriculture, Food and Rural Affairs. The cumulative decline follows a 22.5 percent o
March 17, 2020
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BOK slashes rate to record low 0.75%, after emergency Fed move
Amid growing concerns over COVID-19, South Korea’s key interest rate plunged below 1 percent for the first time in history as the central bank cut it by 50 basis points to a record low of 0.75 percent. The decision came hours after the US Federal Reserve took the drastic step of slashing its benchmark interest rate to near zero to offset the economic fallout from the novel coronavirus. “The US Fed in recent days lowered its interest rate by 150 basis points, which was a swift mo
March 16, 2020
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S. Korea facing more trade barriers from emerging nations: report
Emerging countries launched dozens of new investigations against goods from South Korea in line with growing protectionism around the globe, data showed Monday. Such countries accounted for 34 of the 41 new trade investigation cases against Asia's No. 4 economy in 2019, according to the data compiled by the Korea International Trade Association (KITA). The United States launched five new investigations against South Korea, with Australia and the European Union taking up one each. Emerging nat
March 16, 2020
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BOK under growing pressure to cut rate following Fed rate reduction
The Bank of Korea will have no choice but to take all available measures to shield the local economy against further damage from the outbreak of the new coronavirus, including a base rate reduction, especially since the US Fed cut its own rates to nearly zero, analysts here said Monday. "The Bank of Korea too must now take steps due to the confusion in the local financial market," said Korea Investment & Securities analyst Ahn Jae-kyun. "Like the central banks of other majo
March 16, 2020
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BOK likely to cut rate this week amid calls for more stimulus
South Korea’s central bank is likely to convene an emergency meeting of its monetary policy board this week to slash its interest rates to a record-low of 1 percent, amid growing calls to beef up economic stimulus against the novel coronavirus outbreak. On Friday, Bank of Korea Gov. Lee Ju-yeol attended a special economic meeting related to coronavirus at Cheong Wa Dae, presided by President Moon Jae-in. Economy-related ministers including Deputy Prime Minister and Finance Minister Hong
March 15, 2020
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S. Korea-US trade volume expands 32% on bilateral FTA
Trade volume between South Korea and the United States totaled $135.2 billion last year, up 32 percent from $101.8 billion posted in 2012, when a bilateral free trade agreement went into effect, government data showed Sunday. Trade volume between the two countries in 2019 also moved up 2.7 percent on-year, which is significant considering South Korea's overall trade with the world plunged 8.3 percent over the period to $1.04 trillion, according to the data compiled by the Ministry of Trade, In
March 15, 2020
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S. Korea imposes 6-month ban on stock short-selling
South Korea’s financial authorities on Friday announced a six-month ban on short-selling in the local stock market, effective Monday, in an effort to reduce market volatility amid the spread of COVID-19. The hurried action came as the country’s stock market nose-dived earlier the same day, triggering a temporary trading halt in both the main bourse Kospi and the secondary Kosdaq. “Short-selling of all listed stocks on (the main bourse) Kospi and (secondary) Kosdaq and (ter
March 13, 2020