South Korea is inching ever closer to a repeat of the 2008-2009 global financial crisis as the local won weakened against the US dollar to close at 1,390.9 won in the onshore market -- a 17.3 won retreat from the previous session and its weakest level since 1,391.5 won in March 2009. Stronger bets on US tightening amid the latest discouraging news on inflation led to the dip. The benchmark Kospi shed 38.12 points or 1.56 percent to 2,411.42 from Tuesday, prompted by a sell-off by foreign and ins

Speculation over a third large rate hike of 75 basis points by the US Federal Reserve next week runs higher than ever, but the Bank of Korea sought to reassure market watchers Tuesday that preparations to cushion its impact were underway. “We have to step up monitoring of capital inflows and outflows and currency markets,” said Lee Seung-heon, senior deputy governor at the central bank, warning against growing uncertainties: a hawkish US Fed and a like-minded European Central Bank. T

South Korea’s gross domestic product -- the value of all goods and services created in the country -- improved slightly in the second quarter but underperformed that of most OECD countries on the US and China slowdowns, the latest Bank of Korea data showed Monday. The central bank found that the GDP rose 0.7 percent on-quarter in the April-June quarter, an incremental improvement from the 0.6 percent in the previous quarter. The latest growth rate ranks 20th among 35 countries -- including

A net selling by foreign investors in stocks traded on South Korea’s main board Kospi since January has reached 11.96 trillion won ($8.6 billion) Thursday, according to data from the Korea Exchange Monday. The data showed shares of Samsung Electronics accounted for a little over 9 trillion won, with Naver, LG Energy Solution and Kakao roughly making up the remaining purchases at over 1 trillion won, respectively. That contrasts sharply with a net buying by individual investors, who in the

The South Korean won tumbled to 1,384.2 won per US dollar on Wednesday in the onshore platform, the lowest closing figure since March 2009 during the global financial crisis, despite a warning from authorities that intervention could take place to steady the currency market. The US dollar’s rally – led by investors pricing in higher US interest rates to come by year-end – has been weakening not only the local currency, but six other major currencies, including the Japanese yen.

Higher energy import bills, prompted by changes in the global economy, are to blame for the five-month trade deficit since April, with the trend likely to continue for the next three months, the Bank of Korea said Tuesday in a research paper. The August trade deficit came to $9.47 billion, a monthly record since 1956 when the Trade Ministry began to collect such data. The January-August deficit of $24.7 billion has already surpassed the yearly high set in 1996. Higher prices of energy and petrol

Increasing volatility prompted by changes in the global economy is gripping South Korea’s financial markets, but the economic fundamentals remain strong, Finance Minister Choo Kyung-ho said Monday morning at a meeting of the nation’s economic chiefs. “The won is weakening, but economic indicators like the credit default swap premium are solid,” Choo said, referring to derivative contracts meant to protect investors from a Korean default. The premium on the country's five

A new chief took office Friday to lead South Korea’s pension fund, but his push to reform the country’s main retirement plan to avoid the depletion of its reserves by 2055 has gained little of the support it needs. Kim Tae-hyun, a former senior official at the top financial regulator who most recently served as president of Korea Deposit Insurance Corp., faced a delay in getting to work as the union physically blocked him from entering his office, saying Kim was a placeholder underq

The South Korean won fluctuated sharply Wednesday, reaching a 13-year intraday low at 1,352.3 won per US dollar in the onshore market before closing at 1,337.6, 0.68 percent stronger than the Tuesday’s close, as the dollar continued its rally and the euro pared losses later the day. The search for safe-haven assets like the dollar is still strong, as investors reassess the prospect for higher US rates in light of a more hawkish tone on inflation set by the US Federal Reserve over the week

South Korea’s top financial watchdog said Tuesday it is seeking to support fair competition between fintech firms like Naver and Kakao. “Our hope is that all these companies meeting with us today help to cultivate a fair and transparent environment,” Gov. Lee Bok-hyun of the Financial Supervisory Service said at a meeting with the chief executives at the local tech firms. Lee and the companies discussed whether commissions that the internet platforms collect from sellers usin

The Bank of Korea said Tuesday that it is not expecting a shift in its interest rate policy despite a hawkish US stance on inflation Federal Reserve Chairman Jerome Powell revealed over the weekend, as that was already factored in its decision-making process. At a three-day global symposium of central bankers that ended Saturday in Jackson Hole, Wyoming, Powell made it clear he backs rate hikes as needed to tame inflation even if that means slowing growth – a message some say could push t

South Korea’s top financial watchdog is investigating stock short selling practices at Morgan Stanley’s Seoul office, people familiar with the matter said Monday, in the latest sign of a crackdown set to expand this week to regulate the practice that profits from a drop in stock prices. The Financial Supervisory Service will look at Merrill Lynch and Goldman Sachs next, an official at the watchdog said, noting: “These firms are the top priority because most of the short sellin

The Bank of Korea will tighten policy to corral inflation but cannot end it before the US Federal Reserve, BOK Gov. Rhee Chang-yong said Saturday at the annual Jackson Hole meeting in Wyoming -- a three-day global economic retreat of central bankers held in-person this year after a pandemic hiatus in 2020 and 2021. “We are now independent from the government, but we are not independent from the Fed,” Rhee said on the last day of the gathering, in an interview with Reuters, noting th

The Bank of Korea returned to its usual 25 basis point rate hike Thursday, half the historic size seen in July, while slashing its growth forecast for the year amid the persistent inflation forcing the central bank to back a raise for a fourth time in a row for the first time. The unanimous decision reached by all seven board members comes as the country fights inflation at an almost 24-year high. In July, prices jumped 6.3 percent on-year. The policy rate now stands at 2.5 percent, up fro

Amid soaring food costs, prices of ramen, Koreans’ most favored instant food and a common low-cost meal option, are set for an increase next month, in another blow to customers already grappling with persistent inflation. Koreans consumed the most instant noodles per capita in the world in 2020. Nongshim, a leading South Korean ramen maker, said Wednesday that it was raising prices for instant noodles and snacks, effective Sept. 15, by an average of 11.3 percent and 5.7 percent, respectiv

The South Korean won weakened to 1,345.5 won per US dollar on Tuesday, marking a fresh 13-year low, despite a warning that authorities would rein in speculative trading seen as behind the depreciation. The verbal warning, coming for a fourth time for the year, reflects growing volatility gripping the currency markets amid the persistent hawkish outlook on a US rate hike in September boosting the dollar’s safe-haven appeal. The key psychological threshold of 1,300 won is considered

The South Korean won breached the key psychological threshold of 1,300 won per US dollar, weakening to 1,340.2 won before closing at 1,339.8 won in onshore trading Monday -- a new low in 13 years prompted by a hawkish outlook on a US Federal Reserve’s rate hike in September. The 1,300 mark -- last crossed in April 2009 in the wake of the global financial crisis before June 2022 when it was touched again -- is considered a red flag for the economy. The benchmark Kospi lost 1

Self-employed people and small businesses who have suffered major economic disruptions due to the pandemic will receive government support in writing off their debts as long as they pass a thorough screening process, the Financial Services Commission said Thursday. The plan -- revealed earlier to help the group repay loans they had taken out since the pandemic -- aims to reduce their debts, which the agency says needs to happen now because they could soon go bankrupt. But critics have said too

Companies on South Korea’s benchmark Kospi overall saw their combined operating profit in the first six months of this year rise 7 percent from a year earlier, thanks to Samsung Electronics, the biggest company on the main board by revenue. According to Korea Exchange data Friday, 696 firms on the Kospi reported 746 trillion won ($562.2 billion) in revenue between January and June, up 19 percent from the previous year. Operating profits came to 54 trillion won, a 7 percent jump. But the

Investors are being discouraged from using 16 cryptocurrency services companies operating in South Korea without registration from the Financial Services Commission, the top financial regulator said Thursday. The firms, all foreign, are KuCoin, MEXC, Phemex, XT.com, Bitrue, ZB.com, Bitglobal, CoinW, CoinEX, AAX, ZoomEX, Poloniex, BTCEX, BTCC, DigiFinex and Pionex. The firms are expected to face police probes for having failed to report to the agency their plans to engage in business with Kor