South Korea’s “economic uncertainty” is precarious amid clear signs of a downturn triggered by the coronavirus pandemic, data showed Tuesday. The latest index of think tank Economic Policy Uncertainty indicates South Korea’s rate reached 428.82 in May, up sharply from 239.36 estimated in November 2019.  This marked the highest level since August last year, when the figure surged to 538.18 as tensions between the US and China escalated over trade issues. The index

Economy July 14, 2020

The financial watchdog said Monday it has issued a disciplinary warning to three lenders -- Shinhan, Hana and Industrial Bank of Korea -- for their slack management in project financing. Project financing refers to a long-term loans issued by savings banks and other lending institutions as well as a number of equity investors, which is aimed at supporting infrastructure projects.  The Financial Supervisory Service slapped disciplinary measures against the lenders as they reportedly subt

Market July 13, 2020

The government on Friday unveiled a set of new real estate regulations centered on raising taxes on owners of multiple homes, as part of a move to rein in soaring housing prices.  According to the latest version, marking the 22nd of its kind since the Moon Jae-in administration took office in May 2017, those who either own three houses or more and homeowners with two houses located in some speculative areas, including Seoul and surrounding cities, will face a comprehensive real estate t

Economy July 10, 2020

The South Korean government vowed to speed up measures to stem the rampant practices of illegal private lending Thursday. Prime Minister Chung Sye-kyun visited a counseling center within the market watchdog Financial Supervisory Service that addresses consumer damages caused by illicit private lending, which normally target low-income families with high interest rates and related frauds.  He was accompanied by FSS Gov. Yoon Suk-heun, Financial Services Commission Vice Chairman Sohn Byun

Market July 9, 2020

Stricter jeonse loan regulations will be imposed starting from Friday, the nation’s financial regulator said Wednesday, adding more pressure on the real estate market as it already faces a series of measures set to curb soaring housing prices. The latest version restricts jeonse loan guarantees and bans loan requests by buyers who already own a house in high speculation areas.  The move came in line with the 21st set of housing price regulations imposed under the Moon Jae-in admini

Market July 8, 2020

South Korea’s top financial regulator Tuesday vowed to induce fair competition between conventional financial companies and Big Tech groups, in preparation for the forthcoming digital shift in the local financial industry. “Responding to the non-face-to-face trend triggered by the COVID-19 outbreak, a growing number of major technology companies, or Big Tech, have been pursuing (new opportunities) from the financial services industry,” said Financial Services Commission Chair

Market July 7, 2020

The number of open banking service subscriptions in Korea has surpassed 20 million, more than 70 percent of the nation’s economically active population, reflecting rapid expansion across the finance sector, authorities said Monday. Launched in December 2019, open banking services enable bank customers to use banking services of different banks via a single smartphone application. Currently there are a total of 72 service providers, including commercial banks and financial technology comp

Market July 6, 2020

South Korea will execute its third supplementary budget of 35.1 trillion won ($29.3 billion) on Monday as part of a move to minimize the economic impact of the ongoing coronavirus pandemic, the Ministry of Economy and Finance said Sunday. The latest COVID-19 response budget, the single biggest spending in the country’s history, was approved by the National Assembly late Friday, surpassing the extra budget of 28.4 trillion won passed amid the 2009 global financial crisis.  Earlier i

Economy July 5, 2020

South Korea’s top fiscal policymaker on Thursday urged Japan to show sincere efforts to lift export curbs and resolve a yearlong trade dispute between the Asian neighbors. “(South Korea) calls on the Japanese government to make efforts with a sincere attitude to normalize its export regulations targeting the nation,” said Finance Minister Hong Nam-ki during an economy-related ministerial meeting held at Seoul Government Complex. “The Korean government has stepped up ef

Economy July 2, 2020

South Korea’s financial authorities said Wednesday they will ramp up their efforts to open up financial big data to local markets in an effort to nurture the industry here. Starting August, the Korea Credit Information Services, a pan-industry body tasked with data preservation and protection, will offer various information collected from nearly 50 million anonymous insurance consumers to both financial and nonfinancial companies via its online-based Financial Bigdata Open System, dubbed

Economy July 1, 2020

South Korea’s top financial regulator Tuesday called on local lenders to build up their capital conservation buffer to absorb losses in preparation for the prolonged COVID-19 crisis. “(The FSC) urges banks to strengthen their loss-absorbing capacity through measures such as increasing allowances for bad debts, while continuing to help lending in the real economy amid the pandemic,” Financial Services Commission Vice Chairman Sohn Byung-doo told a meeting of senior financial p

Market June 30, 2020

  NH NongHyup Bank said Monday that it will hire Lee Sang-rae, a former executive of Samsung SDS as its chief digital officer, a position that has been vacant for nearly six months. Lee, 56, is the first outsider to the bank to take a senior post. The lender launched a digital finance department in 2018. Having in 1991 joined Samsung SDS, the information and communication technology service arm of Samsung Electronics, Lee climbed the corporate ladder by serving senior posts at various de

Market June 29, 2020

South Korea’s financial regulator Monday urged financial institutions and tech companies to widen access to client information to foster personal credit information management services here, dubbed MyData. “To maximize customers interest, financial and ICT companies as well as fintech startups need to open up their data assets as much as possible,” said Financial Services Commission Vice Chairman Sohn Byung-doo.  MyData refers to a business model that offers integrated

Market June 29, 2020

South Korea’s consumer sentiment rebounded for the second straight month in June, but was still far more pessimistic than the neutral view held at the beginning of the year, data showed Friday.  The Composite Consumer Sentiment Index, or CCSI, rose for the second consecutive month to 81.8, up 4.2 points on-month, according to data from the Bank of Korea. This was the highest level since it recorded 96.9 in February.  The CCSI is an economic indicator that measures consumers&r

Economy June 26, 2020

Market concerns grew over a new tax plan on any financial investment, Thursday, with some criticizing that the scheme imposes a heavy burden on retail investors seeking small profits. The government unveiled a set of capital gains taxation of up to 25 percent on annual capital gains worth over 20 million won ($16,600) starting from 2023, while lowering the stock transaction tax.  With individuals expressing concerns online, a petition demanding the withdrawal of the new tax scheme on

Market June 25, 2020