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Exports up 9.5% during first 10 days of July
South Korea's exports gained 9.5 percent from a year earlier in the first 10 days of July, data showed Friday. Outbound shipments reached $19.4 billion in the July 1-10 period, compared with $17.72 billion tallied a year earlier, according to the data from the Korea Customs Service. Imports went up 1.8 percent on-year to $19.99 billion during the period, resulting in a trade deficit of $594 million, the data showed. (Yonhap)
July 11, 2025 -
BOK halts easing cycle to counter soaring home prices
The Bank of Korea held its base rate steady Thursday, aiming to rein in mounting household debt amid a resurgent property market. The central bank maintained the rate at 2.5 percent. The rate freeze was supported by all six members of the Monetary Policy Board excluding BOK Gov. Rhee Chang-yong, whose individual vote is not disclosed. Amid the financial authorities’ move to impose strict lending regulations, such as capping mortgage loans at 600 million won ($437,000) in the Greater Seoul area,
July 10, 2025 -
Morningstar says Korean stocks are emerging markets' best bet for decade
A fund manager at Morningstar Wealth is selling Chinese and Japanese equities to increase exposure to South Korea, which he’s betting on to provide the best returns in both emerging and Asian markets over the next decade. Korea’s key draws are technology stocks tied to the artificial intelligence boom and a newfound political will for corporate reforms, according to Mark Preskett, a London-based senior portfolio manager at the firm. He said he’s betting on annual returns from Korean stocks of 11
July 10, 2025 -
BOK holds rates steady amid property market heat
The Bank of Korea held its base rate steady Wednesday, aiming to rein in a resurgent property market and mounting household debt. The central bank maintained the rate at 2.5 percent, pausing its rate-cut cycle after two reductions earlier this year that lowered the rate by a combined 0.5 percentage point to support the sluggish economy. The BOK’s decision underscores its concern over rising household debt, fueled by an overheated housing market. A sharp increase in household loans could threaten
July 10, 2025 -
S. Korea logs W35.5tr fiscal deficit in January-May period: data
South Korea's fiscal deficit came to 35.5 trillion won ($25.8 billion) in the first five months of the year, the finance ministry said Thursday. The managed fiscal balance, a key gauge of fiscal health calculated on stricter terms, posted a deficit of 54.2 trillion won in the cited period, according to data from the Ministry of Economy and Finance. The figure marked an improvement from a managed fiscal deficit of 74.4 trillion won recorded over the same period last year. The improvement is attri
July 10, 2025 -
Small biz owners see net profits drop 15% in H1: poll
South Korea's small businesses saw their net profits shrink significantly from a year earlier in the first half amid a slowing economy, a poll showed Thursday. According to the survey of 500 self-employed small business owners, their net profits over the past six months fell 15.3 percent on-year. Sales dropped at a similar rate of 15.2 percent from a year earlier. The most cited challenge for businesses owners was shrinking consumer demand, followed by rising materials costs and increasing rent
July 10, 2025 -
Strings attached: Korea’s stimulus coupons spark retail divide
South Korea’s one-time cash grants -- part of a 31.8 trillion-won ($23.1 billion) supplementary budget that will provide every Korean citizen with at least 150,000 won starting July 21 -- are not as free as they seem. They come with strings attached, as they are only allowed for use at small businesses, traditional markets and mom-and-pop stores with annual revenue below 3 billion won. As the government puts it, these restrictions are meant to prevent “misuse” and are intended to support small b
July 9, 2025 -
Power consumption surges amid heat wave
The early onset of heat waves in South Korea has driven electricity demand to levels typically seen in the peak of summer. According to the power authorities Wednesday, the maximum power demand surged to 95.7 gigawatts on Tuesday, setting a new all-time high for the month of July. This broke the previous July record of 93.4 gigawatts set just a day earlier on Monday, surpassing the previous record of 92.99 gigawatts set on July 7, 2022. Demand exceeding 90 gigawatts has usually been observed bet
July 9, 2025 -
Seoul mulls tax cut on dividends to spur payouts, investment
Expectations are high that President Lee Jae Myung’s push to revitalize Korea’s capital markets could be bolstered by reforms to the country’s dividend tax system, potentially unlocking value through higher payouts. Under the current tax regime, if annual dividend income exceeds 20 million won ($14,640), it is combined with other financial income such as interest and pensions for comprehensive tax assessment, resulting in a combined effective tax rate of up to 49.5 percent. This high tax burden
July 8, 2025 -
Samsung Electronics estimates 56% drop in Q2 operating profit on chip slump, US tariffs
Samsung Electronics Co. on Tuesday estimated its second-quarter operating profit plunged 55.9 percent from a year earlier due to sluggish chip business and the fallout from US trade policies, missing market expectations. The world's biggest maker of memory chips expected an operating profit of 4.59 trillion won ($3.4 billion) for the quarter ending in June, sharply down from 10.44 trillion won a year earlier, according to an earnings guidance released by Samsung Electronics. From the previous qu
July 8, 2025 -
Customs agency nabs 2 firms for evading tariffs for steel exports to EU
The Korea Customs Service said Monday it has nabbed two local companies on charges of illegally exporting steel products to the European Union without paying tariffs. The two companies have been referred to the prosecution for allegedly exporting some 126,000 tons of color-coated steel sheets, worth 230 billion won ($168.5 million) to EU member nations between 2020 and 2023 without paying any duties, according to the agency's Seoul office. The companies are suspected of having filed false report
July 7, 2025 -
Gov't, ruling party agree to strive to curb inflation, swiftly implement extra budget
The government and the ruling party agreed Sunday to make an all-out effort to stabilize prices and to swiftly implement the supplementary budget in an effort to better support the livelihoods of the people and spur economic growth, officials said. The agreement was made during a high-level policy coordination meeting between the ruling Democratic Party (DP) and the government held at the prime minister's residence in Seoul. The meeting marked the first of its kind since Prime Minister Kim Min-s
July 6, 2025 -
BOK calls for oversight body to regulate stablecoins
With talks around won-denominated stablecoins heating up, the Bank of Korea has proposed setting up a policy body to regulate the issuance of the digital payment instrument. In a recent submission to the policy planning committee under President Lee Jae Myung, the central bank suggested that any issuance of won-backed stablecoins should require consensus among relevant institutions, including the BOK itself. While the BOK had remained wary over adopting a won-backed stablecoin, the committee has
July 6, 2025 -
S. Korea to begin cash handouts to all citizens July 21
South Korea will begin distributing cash handouts to all citizens July 21 as part of a government initiative aimed at stimulating domestic consumption, officials said Saturday. The move follows the Cabinet's approval of a 31.8 trillion-won ($23.3 billion) supplementary budget, passed by the National Assembly on Friday. The handout program is a key part of the first supplementary budget of the Lee Jae Myung administration. Under the plan, all South Korean citizens residing in the country as of Ju
July 5, 2025 -
Loan curbs have only begun: Lee
Even before last week's lending rules began to ripple through the market, President Lee Jae Myung signaled that more aggressive real estate measures are on the way, calling the recent curbs just the start of a broader crackdown to cool housing prices. Speaking Thursday at a press conference marking his first 30 days in office, Lee described the so-called “June 27 loan curbs” as “just a taste” of what’s to come. “We have a range of policies ready to curb demand while expanding supply,” he said. L
July 4, 2025