The government is scurrying to implement new rules on users and operators of digital coins to effectively oversee the industry, which has been growing at a fast pace on the back of increasing appetite for risky assets. Starting from March 25, new penalty standards for cryptocurrency exchanges that infringe anti-money laundering rules will be implemented, according to the Financial Services Commission on Tuesday. Fines will be imposed on virtual asset service providers that fail to report s

Market March 16, 2021

South Korea plans to expand tax incentives for foreign companies in the digital and green industries sectors to attract foreign direct investments that have been shrinking over the past two years. “In order to strengthen foreign investment in high-tech industries such as digital and green, which have strengths, we plan to draw a roadmap for attracting high-tech foreign investment in the first half of the year,” Finance Minister Hong Nam-ki said at a meeting with economy-related m

Economy March 15, 2021

This is a part of series of interviews and analysis of South Korea’s top bankers, policymakers and investors leading the financial industry here. This is the first installment. -- Ed. Banks are facing ever intensifying competition from IT companies as consumers gravitate toward digital financial services tailored to their needs. Korea Federation of Banks Chairman Kim Gwang-soo, however, believes lenders have a distinctive competency that could overcome challenges posed by fintech

Market March 10, 2021

South Korea will pursue quarantine-free, international travel agreements with other countries and lift other virus-related restrictions to prop up the aviation industry struggling to survive amid a sharp fall in air demand. “The country will push ahead with the signing of ‘travel bubble’ agreements for people to travel without restriction on the basis of the coronavirus situation (suitable for such pact),” Finance Minister Hong Nam-ki said during an emergency economic me

Economy March 3, 2021

South Korea proposed this year’s first extra budget worth 15 trillion won ($13.3 billion) Tuesday, to cover emergency relief funds for small business owners and the jobless population reeling from the COVID-19 pandemic, sparking concerns over the quickly growing national debt. An additional 4.5 trillion won is to be carried over from previously approved budgets for the current fiscal year, bringing the total relief package to 19.5 trillion won. To finance the budget, the country will i

Economy March 2, 2021

South Korea’s top financial authorities sounded warning bells about the absence of underlying value that digital coins hold, as speculative fever has been sweeping cryptocurrency markets in recent months. Market liquidity backed by stimulus packages and accommodative monetary policy may have attracted investors‘ attention to cryptocurrency, but they should stay cautious as the digital asset shows sharp price fluctuations, authorities said. Attending a briefing of the National Asse

Economy Feb. 23, 2021

The Asian Development Bank has appointed a Korean international development expert who has been working at the multilateral institution for 27 years, as managing director general, the Finance Ministry said Monday. Um Woo-chong, who has served as director general and concurrently chief compliance officer of ADB’s Sustainable Development and Climate Change Department, will assume office immediately. It is the second time that a South Korean has taken up the post since the ADB was establ

Economy Feb. 22, 2021

The Financial Supervisory Service on Thursday warned retail investors to be cautious of initial public offerings launched by promising but still loss-making companies, stressing that short-term gains may not be achievable. “As the rules allow (loss-making) companies (but with growth potential) to launch an IPO, profits may not occur within a short period of time after listing,” the FSS said in a statement. As part of efforts to encourage budding companies to draw investment, t

Market Feb. 18, 2021

The head of the Organization of Economic Co-operation and Development said Wednesday that targeted support programs for low-income earners and small businesses will be more effective tool for South Korea to counter the economic fallouts from the coronavirus pandemic than a universal provision of relief funds. “Targeted support measures on those who need it most will have greater multiplier effects, imparting a greater boost to private consumption compared to across-the-board support to

Economy Feb. 17, 2021

The nation’s fiscal chief said Wednesday that housing prices had cooled down since the government announced new supply measures earlier this month. At a meeting with related ministers, Finance Minister Hong Nam-ki said the government would speed up its housing supply plan, unveiled earlier this month, by selecting potential locations for new apartments by June and by strengthening monitoring to prevent illegal housing transactions and tax evasion. “To prevent confusion in the ma

Economy Feb. 17, 2021

The incumbent chairman of Hana Financial Group is seeking a fourth term, which would make him, if elected, the longest-serving chief of a financial institution in South Korean history. Hana Financial Group on Monday evening confirmed the nomination of four candidates for the group’s top post, including Chairman Kim Jung-tai, who has been at the helm of the group since 2012. 　 Kim publicly said last year that he wouldn’t be reluctant to give up the chairmanship. But Kim being sho

Market Feb. 16, 2021

The social distancing rule that prohibits a gathering of more than five people during the Lunar New Year holiday has led Koreans to seek practical alternatives to the tradition of gifting cash to children -- now via mobiles, not in-person. Kakao Bank, South Korea’s internet-only lender, is capitalizing on the special circumstances created by the coronavirus that restrict in-person family visits. The firm has launched a giveaway event for those who send or receive New Year‘s mone

Market Feb. 13, 2021

The nation’s top financial regulators said Monday that their recommendation for lenders to limit dividend payouts was in line with global standards, rebutting criticism that it constituted excessive government intervention. The Financial Services Commission and the Financial Supervisory Service have urged local banks to curb their dividends, saying the prolonged pandemic could hurt local banks’ financial soundness.　 “The recommendation for a dividend reduction is a tempora

Economy Feb. 8, 2021

South Korea plans to supply 830,000 housing units in Seoul and other big cities by 2025 through housing redevelopment projects led by state-run agencies, marking the largest-scale supply measure yet envisioned by the Moon Jae-in administration. The Ministry of Land, Infrastructure and Transport on Thursday announced its real estate plan, which aims to provide affordable housing in big cities to meet the demand from young people and to tackle soaring home prices. “If this measure is imp

Economy Feb. 4, 2021

Tensions flared between South Korea’s fiscal chief and the ruling party leader on Wednesday, as they publicly disagreed over the timing of an additional release of COVID-19 relief funds and who should benefit. Prime Minister and Finance Minister Hong Nam-ki struck a defiant tone against the idea pitched by the ruling Democratic Party Chairman and a leading potential contender for 2022 presidential race Lee Nak-yon to begin discussions on a fourth round of emergency handouts to all househo

Economy Feb. 3, 2021