The South Korean government may dial back the scale of tax cuts aimed at curbing inflation, as tax revenue for this year is likely to fall below the estimate. According to the Ministry of Economy and Finance, Korea’s tax revenue amounted to 54.2 trillion won ($41 billion) in the first two months of this year, marking a 15.7 trillion won drop from the 69.9 trillion won recorded in the same period last year. If the tax revenue from March to December is similar to the year before, the total

Economy April 10, 2023

The wealthiest in Korea tended to increase their shares of safe haven assets, such as cash holdings and deposits, rather than taking a risk with real estate in 2022, according to a report published Sunday by a think tank under Hana Bank. According to the 2023 Korean Wealth Report compiled by the Hana Institute of Finance, the wealthiest members of society owned an average of 18.7 billion won ($14.2 million) in cash holdings and deposits, accounting for an average of 58 percent of total assets, m

Market April 9, 2023

Local market watchers expect the Bank of Korea to keep the base rate unchanged once again at its rate-setting meeting on Tuesday, in light of the recent slowdown in inflation. However, the recent decision to cut oil production by global oil cartel OPEC+ could complicate the situation, exacerbating inflationary pressures. Recent figures show that inflation has passed its worst peak in Korea, easing the pressure on the central bank, which has repeatedly stressed it prioritizes price stabilization.

Economy April 6, 2023

South Korea's national debt is growing at an alarming pace, posting a record high of over 1,067 trillion won ($811 billion) last year, the Finance Ministry said Tuesday. The country’s debts – the amount owed by central and provincial governments, excluding state and public bonds owned by national institutions such as the National Pension Service -- came to a record 1,067.7 trillion won last year, according to a report on the 2022 national settlement of accounts approved at a C

Economy April 4, 2023

Asia’s largest private equity firm MBK Partners founder and Chairman Michael Byung-ju Kim highlighted China’s recovering domestic consumption and Korea and Japan’s changing demographics triggered by fast aging as key investment points in the region this year, in a letter to investors on Sunday. With its portfolio spanning across Asia, the Seoul-based company manages over $26 billion in the capital. Kim shed fresh light on the quality of growth of the Northeast Asian economies.

Market April 3, 2023

This is the fifth installment of a series of interviews on chiefs who run overseas units of Korean asset management, banking and securities companies, examining their key strategies for global expansion. -- Ed. Taking a step beyond simply adapting to the local market, Seoul-based securities firm Mirae Asset Securities’ Vietnamese arm looks to fully establish itself in the Southeast Asian country. Since 2007, South Korea's largest securities firm Mirae Asset Securities has been wor

Economy April 3, 2023

Despite the government’s efforts, Korea failed to join World Government Bond Index, a global benchmark that measures the performance of sovereign bonds. Financial Times Stock Exchange Russell, the index operator of WGBI, announced its Fixed Income Country Classification on Thursday. Korea will remain on the watch list, being placed on hold for its index inclusion until the next decision. Korea, which had been on the watch list, a prerequisite for its potential inclusion, since September,

Economy March 31, 2023

More than six out of 10 foreign firms operating in Korea are considering increasing their investments here, a survey conducted by the Korea Chamber of Commerce and Industry showed Thursday. While the Korean government has been working on attracting more foreign capital to boost the economy, many foreign-invested businesses here are positive there would be greater investments in Korea, the survey showed. The poll was conducted by the KCCI, Sookmyung Women’s University professor Oh Joon-seok

Industry March 30, 2023

McKinsey & Co., a global consulting firm, said Wednesday it has promoted partner Hyejin Kang to senior partner. Kang, who assumes the role on April 1, holds a bachelor's degree in microbiology from Seoul National University and a doctorate in neuroscience from the California Institute of Technology in the US. Since joining the company in 2001, Kang has been in charge of evaluating corporate culture of Korea’s top 100 companies. She is credited for playing a leading role in facilit

Industry March 29, 2023

South Korea is expected to join the World Government Bond Index in September, a crucial step for it to attract more foreign funds, according to industry sources on Wednesday. WGBI, managed by Financial Times Stock Exchange Russell, is one of the three major government bond indices, along with the Bloomberg-Barclays Global Aggregate Index and JP Morgan Government Bond Index-Emerging Markets. Tracked by funds worth $2.5 trillion to $3 trillion, it measures the performance of sovereign bonds from 2

Economy March 29, 2023

This is the fourth installment of a series of interviews on chiefs who run overseas units of Korean asset management, banking and securities companies, examining their key strategies for global expansion. -- Ed. Though Vietnam’s financial market has not yet matured, when it does, it will come out in full bloom, said Kim Jong-seok, CEO of NH Securities Vietnam, the Vietnamese arm of Seoul-based NH Investment & Securities. Over the past few years, Vietnam’s economy has been outpa

Market March 27, 2023

Kakao's plan to acquire leading K-pop agency SM Entertainment is nearing its final stage, with the music label's annual general meeting set to take place Friday. According to industry sources, the South Korean internet and portal giant's tender offer to buy a 35 percent stake of SM has won enough support from SM investors. Earlier this month, Kakao offered to buy off shares at 150,000 won ($115) each in a bid to become the largest shareholder of the K-pop powerhouse. The official

Market March 26, 2023

South Korea’s National Tax Service Commissioner Kim Chang-ki promised fair taxation for European companies doing business in Korea during a roundtable meeting hosted by the European Chamber of Commerce in Korea on Thursday. The tax agency revived the government-industry meeting after a 12-year hiatus as part of its renewed commitment to better communications with the foreign corporate community here. Some 30 ECCK members, including Chairperson Dirk Lucat, attended the meeting held at a Seo

Industry March 23, 2023

The US Federal Reserve lifted its base rate by 25 basis points on Thursday, easing pressure for the Bank of Korea, which had been concerned about key rate differences between the two countries. The Federal Open Market Committee went for a quarter-point move, raising the target interest rate from 4.5-4.75 percent to 4.75-5 percent. The quarter-point raise fell in line with the market expectation which projected the Fed will not go for a 50 basis point hike following the recent turmoil in the bank

Economy March 23, 2023

Top financial policymakers of Korea and Japan may hold a one-on-one meeting for the first time in seven years, following the recent easing of tensions between South Korea and Japan. The Finance Ministry is looking into launching talks between its minister Choo Kyung-ho and his Japanese counterpart Shunichi Suzuki, following President Yoon Suk Yeol’s state visit to Japan. With the Korean government announcing that a Seoul-backed foundation would compensate victims of wartime forced labor ea

Economy March 21, 2023