Top economic officials say market 'largely stabilized' following martial law debacle

Top economic and financial authorities said Friday that the financial and foreign exchange markets have "largely stabilized" following the brief imposition of emergency martial law earlier this week. Such assessment was made during an emergency meeting to evaluate the potential impact of President Yoon Suk Yeol's declaration of martial law late Tuesday, which was reversed within hours by the National Assembly. Friday's meeting was attended by Finance Minister Choi Sang-mok, t

Dec. 6, 2024

S. Korea logs current account surplus for 6th month in October

South Korea reported a current account surplus for the sixth consecutive month in October, driven by strong sales of semiconductors and cars, central bank data showed Friday. The country's current account surplus reached $9.78 billion in October, following a $10.94 billion surplus the previous month, according to preliminary data compiled by the Bank of Korea. The country has recorded a current account surplus since May, and the accumulated surplus for the first 10 months of the year has mo

Dec. 6, 2024

'Value-up' gone up in smoke? Political crisis deepens 'Korea discount'

South Korea’s stock market was already on fragile ground before President Yoon Suk Yeol’s unexpected martial law declaration further undermined the government’s yearlong push to boost corporate value. Foreign investors sold a net 200 billion won ($141 million) on the benchmark Kospi within the first two hours of Thursday’s trading, extending the 400 billion won offloaded the previous day after the six-hour martial law announcement. As of 3 p.m., foreign investors had dump

Dec. 5, 2024

Financial watchdog calls on securities firms to draw up 'contingency' plans against market volatility

South Korea's financial watchdog called on securities firms Thursday to draw up contingency plans as market volatility is likely to increase amid martial law-related political turmoil. The local financial markets were roiled on Wednesday by President Yoon Suk Yeol's declaration of emergency martial law late Tuesday, which was lifted hours later after a parliamentary vote to block the decree. Earlier in the day, the opposition-controlled National Assembly introduced a motion to impeach

Dec. 5, 2024

S. Korean economy expands 0.1% in Q3; politics to have limited impact on growth: BOK

The South Korean economy expanded by 0.1 percent in the third quarter of 2024 amid weak domestic demand and slower export growth, central bank data showed Thursday. The country's real gross domestic product -- a key measure of economic growth -- increased 0.1 percent in the July-September period from the previous quarter, matching an earlier estimate, according to preliminary data from the Bank of Korea. The figure was markedly lower than the market expectation of a 0.5 percent gain. The ec

Dec. 5, 2024

Korea’s sovereign rating unscathed by martial law saga

S&P Global Ratings said Wednesday that South Korea’s sovereign credit rating won’t be hurt by the brief imposition of martial law in the country the previous night. “There is no substantial reason to change Korea’s current rating since the martial law was relieved in a few hours and the country’s economy is fundamentally sound,” Kim Eng Tan, senior director of Asia-Pacific sovereign ratings at S&P, said during a seminar jointly held with NICE Investors

Dec. 4, 2024

South Korea braces for prolonged market turmoil, pledges 'unlimited liquidity'

Six hours of unexpected martial law have rattled local markets, with volatility expected to persist despite the lifting of the emergency measure. In response to potential aftershocks, local authorities have pledged comprehensive actions to ensure normal operations and stabilize volatility, including the government's commitment to injecting "unlimited liquidity." "The foreign exchange market and overseas trading of Korean stocks, unsettled by last night’s martial law dec

Dec. 4, 2024

Korea's stock markets to open as usual

South Korea's bourse operator Korea Exchange has decided to open stock markets as usual amid concerns over market volatility induced by President Yoon Suk Yeol's brief imposition of an emergency martial law declaration. Stock market indicators, which plummeted due to President Yoon's sudden declaration, showed slight stabilization after parliament voted in favor of a motion demanding the lifting of martial law. As of 2:30 am, the Kospi 200 overnight futures and options index stood at 322.80, dow

Dec. 4, 2024

Wednesday's stock market operation undecided: KRX

South Korea's bourse operator said Wednesday it is yet to be decided whether stock markets will open as usual following President Yoon Suk Yeol's unexpected emergency martial law declaration. Yoon declared martial law in a previously unannounced late-night address Tuesday, accusing the opposition side of controlling the parliament and paralyzing the government by conducting "anti-state activities." "It is yet to be decided if the stock markets will be opened Wednesday,&q

Dec. 4, 2024

Korean won hits 2-year low after Yoon declares martial law

The Korean won fell to a two-year low against the US dollar after President Yoon Suk Yeol declared emergency martial law late Tuesday. The Korean currency weakened as much as 1.4 percent and touched 1,430 won per dollar during the nighttime offshore trading. The decline followed a late-night television address by President Yoon, who claimed the move was necessary to protect the country from "anti-state" forces. The Korean won sharply dropped right after Yoon’s declaration at arou

Dec. 3, 2024

Finance minister to convene emergency meeting on martial law declaration

Finance Minister Choi Sang-mok convened an emergency meeting with top economic and financial officials Tuesday following the declaration of martial law. Choi, who doubles as deputy prime minister for economic affairs, met with the heads of the Bank of Korea, the Financial Services Commission and the Financial Supervisory Service, the finance ministry said. The industry ministry later said it has also held an emergency meeting with senior officials to review and discuss matters related to the eco

Dec. 3, 2024

Korea's cypto prices plunge, exchanges paralyzed amid martial law declaration

Cryptocurrency prices plunged and exchanges were paralyzed after South Korean President Yoon Suk Yeol unexpectedly declared martial law on Tuesday night. As of 11:30 p.m. Tuesday, Bitcoin, the world's largest cryptocurrency, was trading at around 120 million won ($83,767), down nearly 8 percent from the previous day. Bitcoin, which hovered at approximately 131 million won as of 10:30 p.m. when Yoon announced martial law, briefly plummeted nearly 30 percent to a low of 93.5 million won. Bitc

Dec. 3, 2024

Seoul to seek mutually beneficial ties with US amid uncertainties: trade minister

South Korea will make efforts to enhance its mutually beneficial ties with the United States, the trade minister said Tuesday, amid rising policy uncertainties surrounding Washington's incoming administration. Trade Minister Cheong In-kyo made the statement during a meeting with key commercial attaches and senior officials from the Korea Trade-Investment Promotion Agency to discuss strategies for sustaining South Korea's export momentum, according to the Ministry of Trade, Industry and

Dec. 3, 2024

Govt. to discuss US export strategies with fisheries industry

South Korea's oceans ministry said Tuesday it plans to hold a series of meetings with the local fisheries industry to discuss export strategies for the US market amid looming protectionism measures, including higher tariffs. The meetings, set to take place throughout this month, come amid growing policy uncertainties surrounding the incoming US administration, which may directly impact the country's seafood exports, according to the Ministry of Oceans and Fisheries. "There are bot

Dec. 3, 2024

S. Korea's inflation rises 1.5% in Nov., meeting target for 3rd month

South Korea's consumer prices increased at less than the central bank's 2 percent target for the third consecutive month in November, data showed Tuesday. Consumer prices, a key gauge of inflation, rose 1.5 percent from a year earlier last month, following a 1.3 percent on-year increase in October, according to the data from Statistics Korea. September saw a 1.6 percent on-year increase. South Korea's consumer inflation has stayed below 3 percent since April and fell below the inf

Dec. 3, 2024

S. Korea settles 62 cases of non-tariff trade barriers in 2024

South Korea's trade ministry said Tuesday it has settled 62 cases of non-tariff barriers this year, helping businesses maintain $9 billion worth of exports. The World Trade Organization members maintained 4,149 technical barriers to trade (TBT) as of November, up from 4,068 tallied in 2023, according to data compiled by the Ministry of Trade, Industry, and Energy. TBTs, which include consumer safety standards and energy and environmental requirements, are often used as non-tariff restrictio

Dec. 3, 2024

Regulator seeks to revise law to protect small shareholders

South Korea’s top financial regulator said Monday it would seek to revise the Capital Market Act to protect individual shareholders when listed companies undertake a merger and relist after a corporate spin-off. "We prepared a proposal for the revision of the Capital Market Act with the recognition that the protection of the interests of general shareholders should be strengthened to enhance the value of the capital market," Kim Byoung-hwan, chair of the Financial Services Co

Dec. 2, 2024

Extending retirement age to 65 could cost W30tr won in labor costs: FKI report

Extending the legal retirement age from the current 60 to 65 could result in additional labor costs of over 30 trillion won ($21.39 billion) per year for local businesses, according to a report released Monday by a lobby group of local entrepreneurs. The Federation of Korean Industries' report estimated that in the first year of the new retirement age, companies across South Korea would have an additional 58,214 workers aged 60 to 64 on their payroll. This number of employees, who, under th

Dec. 2, 2024

S. Korea to extend tariff quota on energy, food imports to ease burden on households

South Korea plans to extend its tariff rate quota on energy and food imports into part of next year to help ease the burden on households, the finance ministry said Monday, as the nation continues to struggle with high inflation and a strong U.S. dollar. The tariff rate quota system allows a specified volume of imports to enter the country under reduced tariff rates for a specific period of time. Under the initiative, the zero-tariff policy for liquefied natural gas imports, used for power gener

Dec. 2, 2024

[Herald Interview] 'Development assistance is important for export-dependent Korea'

Strengthening international development assistance efforts could be a solution to lifting the stagnant Korean economy, as such aid helps create a global economic environment favorable to countries with an export-led growth model, according to the chief of the multilateral lender World Bank Group’s Korea office. “For a country like Korea that is engaged in trading in international markets and a lot of its wealth comes from access to export markets, creating a stable and prosperous g

Dec. 1, 2024