The US Federal Reserve on Wednesday decided to keep its interest rates near zero, adding that it doesn’t expect to raise it until at least 2022, as the economy recovers from the repercussions of the novel coronavirus. As the Fed’s rate decision has fundamentally sent ripples across the global economy including South Korea in the past -- with the US being the world’s largest economy -- the latest move is also expected to have mixed effects on Asia’s fourth-largest econo

Woori Financial Group’s privatization plan, which has been stalled due to the novel coronavirus outbreak here coupled with its plunge in stock price, is likely to move forward again, on account of its recent stock price recovery, government sources said Wednesday. The Public Fund Oversight Committee under the policymaking Financial Services Commission, overseeing Woori’s privatization, plans to discuss the sell-off of the state-run Korea Deposit Insurance’s stake in Woori in

Despite the pandemic impact being felt across the world, South Korean  banks are retaining their faith in the ASEAN countries -- dubbed as a new market with relatively high interest rates and demand for fresh funds. With travel restrictions to key ASEAN markets likely to be lifted soon -- as there are zero coronavirus deaths in Vietnam and Cambodia so far -- the countries will not only work as a breather for the lenders, but also as a battleground for heightened competition. The combine

South Korea in April saw its largest current account deficit in nearly a decade, with the COVID-19 pandemic dealing a blow to the nation’s trade, data from the central bank showed Thursday. The export-reliant economy suffered a current account deficit of $3.12 billion, marking the largest amount since January 2011 when the corresponding figure stood at $3.16 billion, the Bank of Korea said. The figure also marked the first current account deficit in nearly a year, as the nation had mai

Despite the rosy picture painted by the government about its third supplementary budget of 35.3 trillion won ($29 billion) announced Wednesday, concerns are rising about the nation’s fiscal soundness as national debt will increase by around 100 trillion won, propelling the debt-gross domestic ratio to a record-high. The proposal follows the first and second supplementary budgets worth a combined 23.9 trillion won, allocated in recent months, to minimize the economic fallout from the COVI

South Korea’s real gross domestic product shrank 1.3 percent on-quarter in the first quarter of this year, nearly missing its previous forecast of 1.4 percent, data from the Bank of Korea showed Tuesday. Through the contraction was 0.1 percentage point lower than the earlier estimate, it marked the largest on-quarter drop since the fourth quarter of 2008, when the country was reeling from the global financial crisis and the corresponding figure stood at 3.3 percent. The country’s

T he outstanding loans extended to local companies and households here increased by a combined 75.4 trillion won ($73 billion) from February to April, when the economic risks stemming from the novel coronavirus pushed them to the brink, data showed Sunday. The figure has increased nearly triple on-year, rising from when businesses and households borrowed a combined 21.9 trillion won, according to data compiled by the Bank of Korea and the policymaking Financial Services Commission. The outsta

South Korea’s volume of short-term floating capital -- so-called “idle funds” -- surpassed 1,100 trillion won ($901 billion), hitting a record-high amid the prolonged COVID-19 crisis and the continued low rate trend, data showed Sunday. The volume of cash, demand deposits, money market funds and other types classified as idle funds reached 1,106.3 trillion won as of end-March, up by around 10 trillion won on-month, according to data compiled by the Bank of Korea and the Korea

South Korean perfumery startup Blend C recently launched its fragrance brand Balanza, which boasts a range of fine fragrance body washes and hand creams based on organic formulas. Dubbed the “Memory Collection,” the products come in three different scents -- Claro, Suave and Bosque -- based on the idea that each fragrance brings back nostalgic memories from the past. Claro emanates notes of freesia and blue cyclamen, while Bosque is a fresh burst of citrus bergamot with a woody

A month after hitting an all-time low in nearly a decade, South Korea’s consumer sentiment improved in May, with the government’s cash relief handout contributing to the rebound, data from the central bank showed Tuesday. The nation’s composite consumer sentiment index -- a leading indicator that reflects households’ consumption and saving -- increased 6.8 points on-month to 77.6, recovering from the previous month, but was still well-below the pre-COVID-19 sentiment.

State-run lender Industrial Bank of Korea and its New York branch have been fined $86 million by the Attorney General’s Office for allegedly failing to manage their anti-money laundering program, documents and local reports showed Monday. The bank’s apparent decision to delay the upgrade of the program for nearly a decade, eventually led to its failure to detect transactions that violated US sanctions against Iran, settlement documents between IBK and the Attorney General’s O

South Korea’s financial regulator said Sunday it will allow customers to swap their online bank accounts among first- and second-tier financial institutions for handling monthly payments. Starting Tuesday, those who wish to switch payment accounts can apply at the bank they wish to deal with or at the Pay Info website, run by the Korea Financial Telecommunications & Clearings Institute, Financial Services Commission officials said. The service, launched in October 2015, simplified t

As South Korea is likely to face a severe economic shock in the second quarter under the novel coronavirus pandemic, the quarterly performance will determine the nation’s growth for the entire year, Vice Finance Minister Kim Yong-beom said Friday. “Shocks are expected to be concentrated in the second quarter,” Kim said during a meeting with senior ministry officials. “As the risks stemming from (the pandemic) prolong, it could evolve into a bigger risk that could sha

South Korea’s producer price index, which serves as a yardstick for inflation, slipped 0.7 percent on-month in April, extending its decline for the third consecutive month, data from the central bank showed Thursday. The index, which reflects how domestic producers receive price changes regarding their outputs, came to 102.08 last month, which fell from the corresponding and revised figure of 102.82 in March. The figure slipped 1.5 percent on-year. The Bank of Korea said that the index

With the National Assembly likely to pass revisions to the Electronic Signature Act on Wednesday, fintech groups and mobile carriers are projected to dominate the related market with their existing online identification services. The revision bill -- likely to be among a set of legislations that the 20th National Assembly will pass at its last plenary meeting –- is projected to fuel privatization of the e-signature industry by abolishing the nation’s public e-certificate system, a

South Korea’s major financial groups and their flagship lenders are projected to exhibit weaker performances this year, analysts said Monday, as they were rattled by Warren Buffett’s recent offloading of big bank stocks coupled with new circumstances under the COVID-19 crisis. Following reports of the Berkshire Hathaway CEO’s unloading of airlines and big bank stocks such as Goldman Sachs and US Bancorp last week, share prices of four major banking groups here -- Shinhan, KB

A multilateral convention of the Organization for Economic Cooperation and Development to combat multinational corporations’ tax avoidance strategies, which exploit gaps and mismatches in tax rules, is slated to take effect here in September, Korea’s Finance Ministry said Thursday. The government has recently deposited its instrument of ratification in the OECD, which would allow South Korea to more smoothly deal with the corporations’ base erosion and profit shifting through

Recalling the nightmares of the 1997-98 Asian financial crisis, the number of employed in South Korea last month fell dramatically and at its fastest pace in two decades, data showed Wednesday. The number of employed here stood at 26.6 million in April, shedding 476,000 on-year, data released by Statistics Korea showed. This was shy of the corresponding figure for February 1999, when 658,000 jobs vanished and the nation’s economy was reeling from the financial crisis. The unemployment

The outstanding amount of government and state-backed bonds increased by a combined 78.3 trillion won from the end of last year to a record high of 1,098.4 trillion won ($900 billion), data showed Monday, with the accelerating growth rate spurring concerns. Outstanding sovereign bonds increased by 65.7 trillion won to 753.5 trillion won and special bonds gained 12.6 trillion won to 344.9 trillion won, respectively, from the end of last year to Friday, data from the Korea Financial Investment

South Korea’s national debt per capita stood at 14.83 million won ($12,145) as of Saturday, data from the National Assembly showed Sunday, feeding concerns that the growing figure may take a toll on the nation’s economy amid sluggish growth projections. National debt held by Asia’s fourth-largest economy stood at 769.18 trillion won in the same period, according to the data provided in the form of a debt clock on the website of the parliament’s budget office. It has