Insurance firms' lending down sharply in Q3

Loans extended by insurance companies in South Korea decreased sharply in the third quarter from a year earlier amid high interest rates and tightened lending rules, data showed Friday. Insurers' outstanding loans reached 266.9 trillion won ($191.4 billion) as of the end of September, down 6.4 trillion won from a year earlier, according to data from the Financial Supervisory Service. The figure also marks a 0.5 trillion-won decline from three months earlier. The on-year decrease was attri

Nov. 22, 2024

S. Korean steelmakers call for thorough scenario-based strategies for Trump policy

South Korean steelmakers on Friday called for establishing a joint consultative body with the government to devise strategies for expected policy changes by the Donald Trump administration, the industry ministry said. Officials from major steelmakers, including Posco and Hyundai Steel, made the call during a meeting with Industry Minister Ahn Duk-geun in Seoul, where they discussed potential impacts of new policy measures by the upcoming US government and their responses, according to the Mini

Nov. 22, 2024

KEC makes inroads into Europe with massive Turkey highway project

Korea Expressway Corporation is making progress on its largest overseas project to date, a highway in Turkey that could serve as a gateway for expanding its expertise into Europe and beyond. The company celebrated a key milestone last month by signing a financial agreement for the Nakkas-Basaksehir Motorway in Istanbul. The expressway, at 2.1 trillion won (about $1.5 billion), is part of Turkey’s ambitious efforts to improve regional transportation. A critical link in Turkey’s high

Nov. 21, 2024

[Herald Interview] Korea Expressway CEO leads push to export Korean road expertise globally

Faced with a slowdown in South Korea’s domestic construction market, Korea Expressway Corp. is looking overseas to fuel its future growth. In a conversation with The Korea Herald, CEO Ham Jin-gyu outlined how the state-run organization is expanding into international markets to meet the growing demand for road infrastructure expertise, from construction to long-term operation and maintenance. “For us, overseas business is not just an option -- it’s a necessity,” Ham said.

Nov. 21, 2024

Exports increase 5.8% in Nov. 1-20 period

South Korea's exports increased 5.8 percent on-year in the first 20 days of November, data showed Thursday. Outbound shipments reached $35.6 billion in the Nov. 1-20 period, compared with $33.8 billion tallied a year earlier, according to the data from the Korea Customs Service. Imports shed 1 percent on-year to $34.8 billion during the period, resulting in a trade surplus of $800 million, the data showed. In October, exports rose 4.6 percent on-year to $57.5 billion, the 13th straight mont

Nov. 21, 2024

IMF lowers Korea's 2025 growth outlook to 2%

The International Monetary Fund on Wednesday lowered its economic growth forecast for South Korea to 2 percent next year, down from 2.2 percent projected in October, citing high uncertainties and weak domestic demand. The announcement came after a team of IMF officials led by Korea mission chief Rahul Anand made a two-week visit to Seoul for an annual country meeting with the finance ministry, the Bank of Korea and other institutions to discuss the country's economic policy measures. "

Nov. 20, 2024

Producer prices down for 3rd month in Oct. on falling farm produce prices

South Korea's producer prices fell for the third consecutive month in October, led by a marked fall in the prices of agricultural products, central bank data showed Wednesday. The producer price index, a major barometer of consumer inflation, fell 0.1 percent in October from a month earlier, following a 0.2 percent on-month decline the previous month, according to the preliminary data from the Bank of Korea. On a yearly basis, the index rose 1 percent last month, marking the 15th consecutiv

Nov. 20, 2024

S. Korean banks' Q3 net down on decreased interest income

South Korean banks' net profit fell in the third quarter of the year from three months earlier on a fall in interest income, data showed Tuesday. The combined net profit of 20 banks in the July-October period came to 6.2 trillion won ($4.44 billion), down 13.9 percent from three months earlier, according to the data from the Financial Supervisory Service. From a year earlier, the reading marks a 14.8 percent rise. The interest income of the 20 banks came to 14.6 trillion won in the third qu

Nov. 19, 2024

Trade minister calls for minimizing business uncertainties amid 2nd Trump administration

Trade Minister Cheong In-kyo emphasized on Monday that all efforts should be focused on thoroughly preparing to minimize uncertainties for businesses as former US President Donald Trump is set to take office for his second term. Cheong made the remarks during a meeting with ministry officials, as Trump, who is set to return to the White House in January next year, has pledged to implement significant policy changes, including higher tariffs on imported goods. The ministry has held a series of me

Nov. 18, 2024

Financial authorities say recent stock market plunge excessive, vow implementation of value-up funds

South Korean financial authorities said Monday the recent stock market plunge was excessive, given economic fundamentals, vowing to enhance market monitoring and swiftly implement a policy fund to strengthen valuation of local companies. The message was released during an interagency meeting among chiefs of the Financial Services Commission, Financial Supervisory Service and the Korea Exchange, as well as market experts and relevant institutions, in Seoul, in response to steep losses incurred in

Nov. 18, 2024

[KH Explains] Why Korean bank shares got bump from Trump's 2nd term

Shares of local banks are putting up a fight in the bearish Korean stock market, as investors are pricing in expectations that lenders could excel in the second Donald Trump administration under softened regulation and higher interest rates. The KRX Banks index, representing shares of top financial service providers such as KB, Shinhan, Woori and Hana, closed at 913.69 on Nov. 7, up 2.33 percent on-day, after Trump secured his victory in the US presidential election. It was the highest-gaining i

Nov. 17, 2024

KEPCO wins 2 new renewable energy deals in Saudi, Guam

The state-run Korea Electric Power Corp. (KEPCO) said Friday it has secured new renewable energy deals in Saudi Arabia and Guam, expected to lead to over 1 trillion won (US$717.1 million) in sales over the next 25 years. A consortium of KEPCO and Masdar, an energy firm from the United Arab Emirates, won a bid for a project led by the Saudi Power Procurement Company, under the Middle Eastern country's national renewable energy program. The project expected to cost 1.5 trillion won is aimed a

Nov. 15, 2024

Economy continues on 'gradual' recovery path, yet uncertainties linger: finance ministry

The South Korean economy is gradually recovering, supported by stabilizing prices, but uncertainties remain both at home and abroad, the finance ministry said Friday. The ministry made the assessment in its monthly economic report, the Green Book, highlighting plans to promote a road map for strengthening the sustainability of the country's economy. "Our economy is seeing a gradual recovery amid stabilizing prices, but uncertainties persist due to changing conditions at home and abroad

Nov. 15, 2024

S. Korean trade minister discusses supply chain at APEC CEO summit in Peru

Trade Minister Cheong In-kyo attended an economic event for business executives at the Asia-Pacific Economic Cooperation summit in Peru, where he exchanged views on the global supply chain with other participants, his office said Friday. In the event held Wednesday, Cheong also highlighted that his country sought to gain insights from Peru about preparing for the annual summit of 21 global leaders as Seoul is set to host the 2025 APEC summit in Gyeongju, North Gyeongsang Province. During his vis

Nov. 15, 2024

Korea to take action if currency falls more

South Korea’s finance minister warned against excessively volatile currency moves on Thursday, vowing to take swift action if needed amid the rapid depreciation of the Korean currency against the US dollar. Financial authorities will bolster efforts to stabilize the financial and foreign exchange market experiencing continued fluctuation stemming from uncertainties over major anticipated US policy shifts as Donald Trump won a second term in the White House. “As uncertainties remain

Nov. 14, 2024

S. Korea's fiscal deficit further widens through Sept.

South Korea's fiscal deficit grew markedly during the first nine months of 2024, the finance ministry said Thursday, partly due to increased expenditure. The managed fiscal balance, a key gauge of fiscal health calculated on stricter terms, posted a deficit of 91.5 trillion won ($65.1 billion) in the January-September period, up 20.9 trillion won from the same period last year, according to the finance ministry. This year's tally was the third-largest figure for the cited period, the m

Nov. 14, 2024

Finance minister says gov't to actively respond to excessive volatility in FX market

Finance Minister Choi Sang-mok said Thursday the government will take active steps, if necessary, to address excessive volatility in the foreign exchange (FX) market. Since Donald Trump's victory in the US presidential election last week, the local currency has been fluctuating around the psychologically significant level of 1,400 won against the US dollar. In a meeting with other economic policymakers in Seoul, Choi said that if there is excessive volatility in the financial and FX markets

Nov. 14, 2024

S. Korea to proactively address Trump-related uncertainties, upgrade FTAs

South Korea will proactively address changes in the global trade environment ahead of the launch of the new US administration, while upgrading existing trade pacts with key partners to maintain upward momentum in exports, the industry ministry said Wednesday. The Ministry of Trade, Industry and Energy made the announcement in a report marking the start of the second half of the Yoon Suk Yeol administration, unveiling plans to sustain export growth, which has continued for 13 straight months thro

Nov. 13, 2024

Import prices jump by most in 6 months on oil prices, strong dollar

South Korea's import prices rose by the largest margin in six months in October due to rising global oil prices and the weak Korean currency, central bank data showed Tuesday. The import price index advanced 2.2 percent last month from a month earlier, snapping two months of drops, according to the preliminary data from the Bank of Korea. The figure marked the highest on-month increase since April when the prices jumped 3.8 percent. From a year earlier, import prices fell 2.5 percent foll

Nov. 13, 2024

NHN shifts to loss in Q3 on one-off factor

NHN Corp., a South Korean information technology and game company, said Tuesday it turned to a net loss in the third quarter despite record sales due to an one-off factor sparked by massive payment delays by e-commerce platforms earlier this year. The company posted a net loss of 110.3 billion won ($78.7 million) for the July-September period, turning from a profit of 8 billion won a year earlier, according to its regulatory filing. It also swung to an operating loss of 113.4 billion won from a

Nov. 12, 2024