Asia’s fourth-largest economy shrank 3.2 percent on-quarter in the April-June period, central bank data showed Tuesday, slightly slower than the central bank’s previous estimate, but nonetheless showing its sharpest contraction since the 2008 global financial crisis. While the figure was an improvement from a 3.3 percent estimated contraction announced in July, it marked a sharp on-quarter decline from minus 1.3 percent for the January-March period. The economy also contracted 2.7

With the COVID-19 pandemic accelerating digitalization of the financial sector and magnifying risks for individual investors, financial authorities recently vowed to create a safe and friendly environment for senior citizens here. To help the elderly carry out smooth banking transactions, local lenders would be required to alert their customers when closing a brick-and-mortar branch with a high-proportion of senior customers, Deputy Prime Minister and Finance Minister Hong Nam-ki said during a

South Korea is mulling another set of extra budget if the level of social distancing goes up a notch, enforcing a lockdown, according to the chief fiscal policymaker. “The rise in the coronavirus cases and implementation of stricter social distancing level would work as key variables in drafting the fourth extra budget,” Deputy Prime Minister and Finance Minister Hong Nam-ki said at a press briefing held Thursday. “If the situation reaches Level 3, then (the lockdown’s

South Korea’s economy is forecast to see a sharper-than-expected contraction of 1.3 percent this year under the coronavirus pandemic, the central bank said Thursday, fueling concerns that this year may see one of the worst negative growth figures in decades. In May the Bank of Korea slashed the growth forecast from the previous minus 0.2 percent. The May revision sent shock waves across the nation, as it was previously expecting a 2.1 percent expansion since February. BOK Gov. Lee Ju-y

South Korea’s major banking groups have recently outlined long-term plans for multitrillion won investments in “green” and “digital” projects -- the two key pillars of the “Korean New Deal.” Staying true to its identity, agricultural NH NongHyup Bank said Wednesday that it would commit 8 trillion won ($6.7 billion) over five years to support new energy projects and loans for smart farms, which would enable greater use of information and communication te

South Korea’s consumer sentiment rose for the fourth consecutive month in August, boosted by optimism for economic improvement, but doubts that recent measures will cool the heated real estate market remained strong, data from the Bank of Korea showed Tuesday. The composite consumer sentiment index inched up 4 points on-month to 88.2 this month, hitting the highest since February, when the figure stood at 96.9, weighed on by the outbreak of the COVID-19. It has been slowly improving si

Despite border restrictions placed during the COVID-19 pandemic, South Korea’s major lenders KB Kookmin and Hana posted robust net profit overseas in the first-half of the year, buoyed by their performance in Southeast Asia. Overall, the combined net profit of four major banks here -- KB Kookmin, Hana, Shinhan and Woori -- in the first-half of the year increased 20.1 percent to 289.2 billion won ($242.9 million), latest data showed. While KB Kookmin and Hana gained momentum, taking adv

The delinquency rates for loans extended by South Korean banks have overall surged last month, sending lenders jitters as they apparently brace for side-effects of the government’s forbearance extension measures. Loan delinquency rates of the five major commercial banks here -– KB Kookmin, Shinhan, Hana, Woori and NH NongHyup -– all came in an estimated range of 0.23 percent and 0.36 percent, according to data provided by the banks. The top and bottom lines of the range ea

South Korea has decided to set aside 20 trillion won ($16.8 billion) from next year’s budget to finance its “New Deal,” a policy package designed to boost the economy in the post-coronavirus era through digital transformation, the finance minister said Thursday. It also vowed to establish and operate an exclusive fund worth 400 billion won until 2024 to back up digital and tech startups. “Full execution of the 4.8 trillion won fund from the third supplementary budget wi

To quell the market volatility that the coronavirus has caused, South Korea’s monetary policymakers took a number of steps -- some expected and others unprecedented -- to funnel liquidity and cushion the effects of the pandemic.  But while the market may have dodged a bullet, experts warn that Korea needs to be cautious about monetary policy from now on, considering the potential adverse effects of quantitative easing. “The benefits of the use of QE in other countries in the

The number of new coronavirus cases has surged sharply in recent days, feeding concerns about another round of lockdowns here, and the nation’s central bank said Wednesday that most South Koreans are likely to suffer economically if heavy restrictions are put in place once again. “If lockdown and social distancing measures are strictly enforced due to the resurgence of the virus, nonessential workers without the option of remote working will be extremely vulnerable to losing their

South Korea’s early response to the current pandemic crisis effectively contained its spread, minimizing economic damages in the first half, offering a rosy outlook. On Tuesday, the Organization for Economic Cooperation and Development lifted the country’s growth forecast this year to minus 0.8 percent from the previous minus 1.2 percent, propelling the country to No. 1 in terms of slowdown among member states. Highlighting the resilience of the Asia’s fourth-largest econom

Citibank and Standard Chartered Bank’s Korean subsidiaries posted mixed earnings in the second quarter, as per their disclosures Friday. The New York-based lender’s subsidiary bit the dust amid the coronavirus pandemic, with its net profit plummeting 72.4 percent on-year to 30.3 billion won ($25.5 million). This was mostly due to provisions set aside for coronavirus risks coupled with dissipated effects from the sell-off of its landmark headquarters tower last year. Its net profi

For the temporary national holiday slated for Monday, South Korean lenders and financial authorities said Friday that loan payments, ATM fees and other services would be adjusted for the time being. According to the Financial Services Commission, loan payments due Monday will be automatically delayed to Tuesday. Late fees will be waived, but some loans -- including those that could require early payoff fees, charged when customers pay off their principal balance early -- may require consulting

South Korea’s economy is expected to shrink minus 0.8 percent this year, the Organization for Economic Cooperation and Development said Tuesday, lifting it from the previous forecast of minus 1.2 percent and propelling the country to No. 1 in terms of growth rate. Asia’s fourth-largest economy became the first among OECD’s 37 member nations to have its growth forecast adjusted upward from the international organization’s earlier projections announced in June, a biannua

South Korea’s inbound shipments of Japanese consumer goods -- especially tobacco, beer and automobiles shrank considerably in July -- amid the continuing nationwide boycott, data showed Monday. The boycott spread like wildfire across the country since July last year, when Japan said it would regulate exports of three key materials needed for Asia’s fourth-largest economy’s chip and display manufacturing. The nation’s import of Japanese goods overall dropped 23.4 perc

South Koreans’ demand for jeonse loans -- designed for investors looking for two-year leases instead of purchases -- increased in July, due to government efforts to cool down the heated real estate market with loan restrictions, data showed Sunday. According to the data compiled by five major banks -- KB Kookmin, Shinhan, Hana, Woori and NH NongHyup -- the outstanding amount of such loans increased by 2.2 percent, or 2.02 trillion won ($1.8 billion), on-month to 94.55 trillion won as of e

With torrential rains battering South Korea’s central regions, local financial groups are lending a helping hand, including donations and staff volunteers to flood-hit regions. Woori Financial Group has sent food and water supplies and a volunteer group in North Chungcheong Province, one of the regions that was hardly hit by torrential rains. The group previously donated 100 million won ($84,100) for flood relief and sent support packages including hygiene, daily necessities and clothe

South Korea saw its current account surplus narrow to an eight-year low in the first half of the year, with the coronavirus pandemic dealing a blow to the global trading system, data from the central bank showed Thursday. The current account surplus for the January-June period came to $19.17 billion, marking the smallest figure since the same period in 2012, the Bank of Korea said. The surplus came to $9.65 billion at the time. The current account surplus measures an economy’s imports

In a bid to calm real estate prices, South Korea’s ruling party said Monday it would seek legislation to levy a heavier tax on property speculation by foreign nationals. The Democratic Party of Korea and the government said the bill would impose a 20 percent acquisition tax on home purchases by foreign nationals if the buyers do not reside there for more than six months out of the year without an acceptable reason. The current law states that taxes for foreign nationals buying real est