South Korea is seeking to reshape its economy in the post COVID-19 era by invigorating the convergence of new and old industries and creating more jobs, through its latest economic stimulus measures dubbed the “Korean New Deal,” the government said Thursday. Borrowing the policy concept from the New Deal -- a Great Depression-era set of government projects in the US in the 1930s -- Korea’s Finance Ministry pledged large-scale investments and a systemic overhaul for the packag

The Ministry of Economy and Finance on Wednesday asked all government ministries to cut discretionary spending by 10 percent in their requests for next year’s budget. The government aims to use the money saved to invest in new projects that could reinvigorate the economy amid signs of an economic downturn brought on by the latest coronavirus pandemic, according to the Finance Ministry. A task force formed of vice ministers and ranking officials will be launched to map out a strategic b

The Financial Services Commission said Tuesday that it will start receiving applications for its part-time MBA program focused on digital finance from May 15. The program, slated to launch in September, will be managed by KAIST College of Business, a graduate school from technology and management, and jointly promoted by the FSC and the Seoul Metropolitan Government. The program will receive 40 students for this year’s fall semester to be the first graduating class. Those who have wor

Competition between traditional banks and fintech or Big Tech companies, such as Kakao, is set to heat up further as the financial authorities clear away hurdles to new projects. In this new environment, traditional lenders will be required to diversify their revenue sources -- from interest on loans to commissions and trusts -- to keep their heads above water in the financial market, officials and experts here say. “With the digitalization of the global economy and the expansion of e-co

South Korea’s government on Monday vowed to announce key economic measures including extensive job creation actions within the upcoming weeks, upon judgment that the economic risks stemming from the novel coronavirus pandemic will persist. “This month will be the time to outline (the directions) for the second-half of the year against the economic crisis,” Deputy Prime Minister and Finance Minister Hong Nam-ki said at a meeting of officials. The chief fiscal policymaker the

Jeonbuk Bank’s Cambodian subsidiary recently floated corporate bonds worth $10 million, becoming the first South Korean financial institution to do so in the Southeast Asian nation, the lender’s holding group, JB Financial Group, said Monday. Phnom Penh Commercial Bank issued the bonds with a maturity period of three years and an annual interest rate of 6.5 percent. They are worth $25 in par value. The plan was approved by the Securities and Exchange Commission of Cambodia, whic

A 30-year-old woman living in an apartment complex in eastern Seoul turns on her phone, taps on the screen a few times then quickly heads off to a nearby post office to send a package. A day later, a 45-year-old man in the same neighborhood receives the package containing an Ikea lamp. Despite the novel coronavirus crisis that has weighed down the nation’s consumerism and economy in recent months, mobile flea markets have allowed Koreans to continue engaging in sustainable shopping whil

After a fruitful 2019, some of South Korea’s major banking groups have posted mixed performances for the January-March period as of Friday, with the balance sheets yet to reflect the full impact of the coronavirus. Shinhan Financial Group said Friday that its net profit for the first quarter increased 1.5 percent on-year to 932.4 billion won ($754.9 million), buoyed by its move to acquire the remaining stake in Orange Life and taking complete ownership of the insurer in January. Shinh

With global oil prices tanking, South Korea’s exports and its key industries are projected to face more hurdles, according to market watchers Tuesday.  The price of US crude oil plummeted from $18 a barrel to minus $38 within hours early Tuesday, as oil producers ran out of space to store the oversupply created by the ongoing pandemic. It rebounded into positive territory, above $1, around noon, but onlookers expect risks to linger for the time being. This has been spurring concer

Commercial lender Hana Bank and internet-only Kakao Bank said Monday they have updated their respective mobile services to help locals make international financial transactions amid the novel coronavirus outbreak. Hana Bank has expanded the services of its foreigners-only mobile banking app to locals to help limit face-to-face interactions that is usually required when handling international wire services here. The Hana EZ app provides artificial intelligence and big data-based service

South Korea’s central bank’s unprecedented decision to extend loans to brokerages and other nonbanking institutions will help them avoid the worst amid an economic crisis brought on by the novel coronavirus, experts said Friday. The Bank of Korea announced Thursday that it planned to launch a special loan program worth 10 trillion won ($8.1 billion), which would allow local banks, brokerages and insurers to borrow funds for up to six months against collateral from the central bank

South Korea’s central bank has decided to launch a new loan program for brokerages, temporarily broadening its range of collateral to corporate bonds, officials said Thursday. The move aims to provide cushion for the local market, which has been struggling to deal with the economic fallout of the new coronavirus. Under the program worth 10 trillion won ($8.1 billion), local brokerages and nonbanking financial institutions including brokerages and insurers will be allowed to borrow funds

The ruling Democratic Party of Korea’s landslide victory in the latest national assembly elections is expected to work as a catalyst for President Moon Jae-in’s economic policy agenda -- including more emergency cash handouts and housing market regulations. Thursday’s preliminary election results allowed the Democratic Party and its satellite Platform Party to secure 180 seats in the 300-member National Assembly, which is likely to expand the scope of the government's e

Slammed by the novel coronavirus, South Korea’s labor market is shrinking fast, sparking concerns over its impact on consumer spending and the possibility of a sharp recession. Total payouts for state unemployment benefits hit a record high of nearly 900 billion won ($738 million) in March, data released by the Ministry of Employment and Labor showed Monday. The figure had jumped by a whopping 40.4 percent on-year, affected by the risks stemming from the COVID-19 crisis. The number of

South Korea’s central bank is awaiting government signoff on an emergency program that would extend loans to nonbanking institutions, sources said Sunday, as both monetary and fiscal authorities aim to further funnel liquidity into the markets to counter the effects of the novel coronavirus. “We are currently preparing to launch an emergency lending program as swiftly as possible,” a Bank of Korea official said. The program -- which is expected to mirror actions taken by t

South Korea’s central bank on Thursday decided to freeze its policy interest rate at 0.75 percent, hinting its willingness to review the effects of last month’s big rate cut coupled with quantitative easing efforts. Following a monetary policy board meeting earlier in the day, the Bank of Korea decided to keep its base rate steady after it slashed it by half a percentage point to a record low on March 16. It was the first emergency rate cut in more than a decade to combat the risk

South Korea’s household and corporate debts saw unprecedented growth last month, data from financial authorities showed Wednesday, as risks stemming from the novel coronavirus continue to weigh on the economy. Bank loans extended to local households, including state-backed mortgage loans, increased by 9.6 trillion won ($7.88 billion) on-month to 901.9 trillion won, the Bank of Korea said. It is the highest figure since the BOK started keeping records on household debt in 2004. The corr

South Korea’s national debt last year surpassed 1,700 trillion won ($1.39 trillion) for the first time, weighed down by increased treasury bond issuance coupled with the government’s consequent fiscal expansion, a government report showed Tuesday. The national debt jumped 60.2 trillion won on-year to 1,743.6 trillion won as of end of 2019, according to the annual national financial report reviewed and endorsed by the Cabinet. The Cabinet meeting was presided by Prime Minister Chung

South Korea’s 10 financial holding groups’ combined net profit increased 31 percent last year, data showed Monday, but the upward trend is unlikely to continue next year. According to the watchdog Financial Supervisory Service, the combined net profit of Shinhan, KB, NH Nonghyup, Hana, Woori, BNK, DGB, JB, Korea Investment and Meritz came to 15.2 trillion won ($12.3 billion) in 2019. The figure was up nearly 3.6 trillion won or 31 percent on-year. The corresponding figure for 201

The government decided Friday to make emergency cash payments to households in the bottom 70 percent income bracket, financially hit by the novel coronavirus, by using March health insurance premiums as key standard. The temporary, yet controversial scheme will provide 1 million won ($814) each to four-person households with salaried workers that paid March premiums below 237,000 won, according to the government. Though the households’ March insurance payments stand as a common standar