KDI chief downplays lasting economic impact of martial law

Korea Development Institute President Cho Dong-chul expressed confidence that the recent political turmoil sparked by President Yoon Suk Yeol's brief martial law declaration would not have a lasting economic impact, despite increased volatility in local financial markets. "It's undeniable that the recent unexpected political crisis has harmed our economy. However, I believe a severe risk, such as the foreign exchange crisis we faced in the past, is unlikely," Cho said Wednesd

Dec. 11, 2024

Two scenarios for Korea's economic outlook

How the political uncertainty caused by President Yoon Suk Yeol’s Dec. 3 martial law declaration and the opposition party’s push to remove him from power is resolved may change the course of the country’s economy. The market is keeping a close eye on Yoon’s political future as the main opposition Democratic Party will put to a vote a second motion to impeach him on Saturday. Yoon’s immediate removal and earlier election Market experts believe an early presidenti

Dec. 11, 2024

Choi, Yellen reaffirm ‘strong’ Seoul-Washington ties

Finance Minister Choi Sang-mok held a video conference with US Treasury Secretary Janet Yellen Tuesday to reaffirm the two countries' bilateral relationship amid political turmoil grappling South Korea’s capital market, according to the ministry. The meeting, requested by the Korean side, lasted around 25 minutes, the Ministry of Economy and Finance said through a press release on the following day. The meeting follows Choi’s letter sent to Yellen on Dec. 4, in the aftermath of

Dec. 11, 2024

Political turmoil to have only limited impact on exports: trade minister

Trade Minister Cheong In-kyo on Wednesday insisted the recent political situation in South Korea will likely have only a limited impact on exports, stressing that the government will work to address both internal and external uncertainties. Cheong made the remark during an emergency meeting with trade-related organizations to address market concerns sparked by President Yoon Suk Yeol's short-lived martial law declaration last week, according to the Ministry of Trade, Industry and Energy. &q

Dec. 11, 2024

Govt. to invest W14tr to build 'mega port' in Busan

South Korea's oceans ministry said Wednesday the government will invest 14 trillion won ($9.75 billion) through 2045 to upgrade Busan Port, aiming to achieve the world's largest container handling capacity and establish it as the leading logistics hub in the region. Under the plan, South Korea will construct a new port in Changwon, near Busan, integrating it with the existing Busan Port to create an unified "mega port" with double the current cargo handling capacity, accordin

Dec. 11, 2024

Market stabilization measures to be fully in place amid political turmoil: finance chief

Finance Minister Choi Sang-mok said Wednesday that the government will continue to closely monitor the market and to fully implement market stabilization measures amid lingering uncertainties from a political crisis. Choi made the remarks during a daily emergency meeting with Bank of Korea Gov. Rhee Chang-yong and other top financial officials, as the government is scurrying to minimize economic impacts of President Yoon Suk Yeol's short-lived imposition of martial law last week. "As u

Dec. 11, 2024

Exports increase 12.4% in Dec. 1-10 period on strong chip demand

South Korea's exports grew 12.4 percent from a year earlier in the first 10 days of this month on strong shipments of chips, data showed Wednesday. Outbound shipments reached $17.6 billion in the December 1-10 period, compared with $15.6 billion tallied a year earlier, according to the data from the Korea Customs Service. Imports gained 11.6 percent on-year to $19.1 billion, resulting in a trade deficit of $1.55 billion. Adjusted for the number of working days, daily average exports increas

Dec. 11, 2024

ADB cuts S. Korea's 2025 growth forecast to 2%

The Asian Development Bank has lowered its 2025 growth outlook for the South Korean economy to 2 percent, Seoul's finance ministry said Wednesday. The latest figure marks a 0.3 percentage-point fall from its earlier projection presented in September, the ministry said, citing the latest report by the Manila-based bank. The projection is on par with the forecasts by the International Monetary Fund and the Organization for Economic Cooperation and Development, both of which have projected 2 p

Dec. 11, 2024

Trade minister promises stable business environment in meeting with US lobby group

Trade Minister Cheong In-kyo vowed efforts to maintain a stable economic environment for foreign companies operating in the country while meeting with representatives from a US business lobby group in South Korea on Wednesday amid lingering political turmoil. Cheong's meeting with officials from the American Chamber of Commerce in Korea (AMCHAM) came about a week after President Yoon Suk Yeol's controversial martial law declaration, which caused significant uncertainties in the local b

Dec. 11, 2024

S. Korea newly adds 123,000 jobs in November: data

South Korea's job growth picked up slightly in November compared to a month earlier but the manufacturing sector alone shed nearly 100,000 positions, data showed Wednesday, signaling potential challenges for the country's export-dependent economy. The number of employed people aged 15 years and older came to 28.82 million as of the end of last month, up 123,000 from a year earlier, according to the data compiled by Statistics Korea. Despite a slight improvement compared to the previous

Dec. 11, 2024

Korea reaffirms readiness to respond as markets go on wild ride

South Korea’s top economic policymakers said the volatility in the finance and currency markets is excessive, calling on institutional investors to play a responsible role in the fluctuating market as they seek to cushion the blow of political strife incurred by President Yoon Suk Yeol’s declaration of martial law. “Attendees of the meeting agreed that although volatility in the financial and currency markets has been increasing recently, the volatility is somewhat excessive co

Dec. 10, 2024

Finance minister says recent volatility in financial, FX markets 'excessive'

South Korea's top economic policymaker said Tuesday that the recent volatility in the country's financial and foreign exchange markets is "excessive" given the nation's strong economic fundamentals. On Monday, the Korean won weakened to 1,437 won per US dollar, dropping 17.8 won from the previous session, and reaching its lowest level in over two years. The benchmark Korea Composite Stock Price Index (Kospi) also plunged 67.58 points, or 2.78 percent, to close at 2,360.5

Dec. 10, 2024

Korea pledges additional W100b to support rattled stock market

The South Korean government has decided to inject an additional 100 billion won ($69.7 million) to stabilize the local stock market battered by deepening political uncertainty after President Yoon Suk Yeol averted impeachment last week. On Monday, the first trading day after the failed motion to impeach President Yoon, the benchmark Kospi and secondary Kosdaq plummeted to new 52-week lows, while the Korean currency approached its weakest point since 2009. Finance Minister Choi Sang-mok vowed t

Dec. 9, 2024

[Photo News] Emergency meeting of financial leaders

Financial Services Commission Chairman Kim Byoung-hwan (far left) convened a meeting Monday in Seoul with leaders from South Korea’s financial sector, including the chiefs of the five major banking groups — KB, Shinhan, Hana, Woori and NongHyup — alongside representatives from public institutions and industry associations. Kim stated that key financial policy initiatives, such as the capital market value enhancement plan, the establishment of an illegal short-selling monitoring

Dec. 9, 2024

S. Korea to toughen regulation on tomato exports to Japan amid infection woes

South Korea's quarantine agency said Monday it will implement tougher regulations on tomato leafminers as part of efforts to maintain stable exports to Japan amid reported infections. Under the regulation, tomato farms exporting their products to Japan must conduct trap investigations two months prior to harvest to verify that the farms are free from tomato leafminer infections. The decision follows an agreement reached between South Korean and Japanese authorities, with the new rule set to

Dec. 9, 2024

Govt. ready to deploy market stabilization measures, including 'value-up funds'

The government is ready to deploy immediate market stabilization measures, including the injection of "value-up funds" into the country's stock market, Finance Minister Choi Sang-mok said Monday. Choi made the statement during an emergency meeting with top economic and financial officials, as South Korea grapples with the fallout from President Yoon Suk Yeol's declaration of martial law last Tuesday. The declaration was overturned by the National Assembly just hours later. &q

Dec. 9, 2024

Bumpy road ahead for Korean economy

As the fate of embattled President Yoon Suk Yeol is likely to stay in limbo for longer than expected, concerns are mounting over pending economic measures that need to be addressed to rev up the country’s slowing growth. After a failed parliamentary vote on his impeachment Saturday, Han Dong-hoon, leader of the ruling People Power Party, stressed Sunday that he would push for the president’s resignation. The main opposition Democratic Party called for Yoon to immediately step down, t

Dec. 8, 2024

Financial regulators, banking heads to meet amid market instability

South Korea's financial regulators are set to meet with the heads of major financial groups next week amid escalating political tension surrounding President Yoon Suk Yeol’s impeachment motion. The Financial Services Commission is arranging a meeting with the heads of major financial groups, including KB, Shinhan, Hana, Woori and NongHyup, though the date remains unconfirmed. An official from one of the groups indicated that the meeting, initially set for Thursday, was canceled on Sat

Dec. 8, 2024

Korean won worst performer among major peers over martial law shock wave

The South Korean currency was the worst performer around the globe last week as the political turmoil following President Yoon Suk Yeol's short-lived declaration of martial law has affected sentiment, data showed Sunday. The Korean won dropped by 24.5 won per dollar over the past week, the sharpest weekly fall since the third week of January when the currency dropped 25.5 won, according to data compiled by Yonhap Infomax, Yonhap News Agency's financial information arm. The won was down

Dec. 8, 2024

Korea’s finance chief sending out emergency letters to reassure foreign investors

South Korea's finance minister has sought to reassure foreign investors and global financial institutions through emergency letters and meetings, as political tensions intensify following President Yoon Suk Yeol's martial law declaration. An official from the Ministry of Economy and Finance confirmed that the ministry is continuing to send out emergency letters to major economies, financial regulators and investors to assure them that "the nation’s political, economic and na

Dec. 6, 2024