AJU PRESS - ASIA NEWS HUB

Journalist

Kim Yeon-jae김연재

ReporterBank of Korea & Market, Macroeconomics

'Kim Yeon-jae is a journalist at AJU Press (AJP's English platform),
covering macroeconomics, international finance, and geopolitics.
He closely tracks central bank monetary policies, global energy supply chains,
and the Korean defense industry. "Peering into the risks behind the euphoria."

Latest by Kim Yeon-jae

FSS to launch probe as won volatility deepens SEOUL, June 9 (AJP) - The Financial Supervisory Service (FSS) will launch a joint inspection with the Bank of Korea (BOK) to crack down on speculative currency trading and other market-disrupting activities, as they step up warnings to banks after the won briefly weakened past 1,560 per dollar earlier this week. The South Korean currency later pared losses following repeated verbal intervention by financial authorities, but officials remain on alert as expectations of further U.S. rate hikes and geopolitical uncertainty continue to fuel sharp swings in the foreign exchange market. The FSS held an FX stabilization meeting Tuesday with treasury executives from major commercial banks and foreign bank branches, following a broader interagency meeting on the foreign exchange market a day earlier. The regulator said it will work with the central bank to examine whether recent market volatility and won weakness have been used for speculative transactions or other activities that distort market prices. Foreign bank branches with large positions in non-deliverable forwards (NDFs) are expected to be among the first targets of the inspections. FSS' senior vice governor Kim Sung-uk urged banks to comply with foreign exchange trading rules and strengthen internal controls against market-disrupting behavior. The FSS also told banks to avoid aggressive marketing campaigns or excessive competition to attract dollar deposits at a time of heightened exchange-rate volatility. Banks were also asked to give clearer guidance to consumers on potential foreign exchange losses. The regulator specifically called for stronger cooperation to ensure offshore NDF trading does not add to volatility or one-way bets in the domestic foreign exchange market. The FSS will temporarily tighten oversight of major banks' foreign exchange positions by shortening the review cycle from monthly to weekly or even daily checks. At the same time, the regulator will extend by six months, through the end of this year, a grace period for supervisory measures tied to advanced foreign currency liquidity stress tests. Moon Ji-sung, deputy minister for international affairs at the Ministry of Economy and Finance, also reaffirmed that authorities will respond sternly to speculative trading that undermines market order. The FSS also plans to call in other major financial sectors, including securities firms and insurers, to review risk controls related to overseas investment marketing, dollar-denominated insurance products and foreign exchange volatility. 2026-06-09 18:02:02
Korea's Q1 GDP strongest in more than 5 yrs, nominal growth 50-yr high *Updated with additional data, comments, and market response SEOUL, June 09 (AJP) - South Korea's economy turned out strongest three-month performance in more than five years in the quarter ended March with nominal growth at a 50-year high, according to the finalized first-quarter figure, but the bigger surprise came from income — up record 9.2 percent — as booming chip prices amplified the gains from the AI-driven semiconductor boom. Real gross domestic product expanded 1.8 percent from the previous quarter in the January-March period, according to the Bank of Korea on Tuesday. Real gross national income, a broader measure of purchasing power, jumped 9.2 percent over the same period, more than five times the pace of GDP growth and the strongest on record. The data further underlined how the global race to build artificial intelligence infrastructure is reshaping South Korea's economy, with soaring semiconductor prices boosting national income far faster than production itself. The economy grew 3.8 percent from a year earlier, up from a preliminary estimate of 3.6 percent released in April and marking the fastest annual expansion since the first quarter of 2021. The quarterly growth rate was the strongest since the third quarter of 2020, when the economy expanded 2.3 percent. The upward revision reflected newly available data for the final month of the quarter, which showed stronger facilities investment and private consumption than initially estimated. Facilities investment was revised upward by 1.8 percentage points from the advance estimate, while private consumption was raised by 0.1 percentage point. The gap between GDP and GNI reflected improved terms of trade and rising income earned abroad. Real net factor income from overseas climbed to 11.6 trillion won ($7.56 billion) in the first quarter from 8.2 trillion won in the previous quarter, while higher semiconductor export prices boosted the purchasing power of income generated from the same volume of exports. A key factor behind the surge was real gross domestic income (GDI), which measures the real purchasing power generated from domestic production. While GDP shows how much the economy produced, GDI shows how much real income that production created after changes in export and import prices. Real GDI rose 8.7 percent on quarter and 13.2 percent from a year earlier. "Real GDP shows the volume of goods and services produced by a country, while real GDI shows the real purchasing power of income," Kim Hwa-yong, director general of the BOK's national accounts department, said during a briefing. "Even if the same volume is exported, higher export prices and lower import prices increase the resources available for consumption and investment." Kim compared the economy to a semiconductor company. "GDP would show how many chips were produced, while GDI would reflect how much income was actually earned from selling them," he said. He added that higher export prices and lower raw material costs would push up real GDI. The strong data supported the Korean capital markets after suffering one of the worst Black Monday sessions. Yields on both the three-year and 10-year government bonds fell more than 4 basis points in morning trading, while the benchmark KOSPI rose more than 3 percent. The U.S. dollar, which had climbed above 1,550 won, retreated sharply to 1,516.70 won. Korea's broad economic performance in the first quarter was literally defined by semiconductors. The central bank said information and communications technology industries contributed a record 19.9 percent of overall economic growth during the quarter, fueled by surging demand for AI-related chips and related investment. Manufacturing output rose 3.9 percent from the previous quarter, led by computers, electronics and optical products. Production of computers, electronics and optical products jumped 12.5 percent, while ICT manufacturing surged 15.4 percent. In contrast, non-ICT manufacturing contracted 0.9 percent, highlighting the widening gap between semiconductor-related industries and the rest of the economy. The divergence points to an increasingly uneven recovery in which a handful of AI-linked industries are driving growth while broader manufacturing remains comparatively subdued. Exports rose 5.9 percent from the previous quarter, led by semiconductors and other IT products, while imports increased 3.9 percent on stronger purchases of machinery, equipment and automobiles. Facilities investment jumped 6.6 percent, reversing a decline in the previous quarter as companies stepped up spending on machinery and transportation equipment. Private consumption rose 0.6 percent as spending increased on both goods and services, including clothing and finance-related services. Construction investment increased 1.4 percent, snapping a prolonged downturn as both building construction and civil engineering projects improved. Construction output itself rose 2.2 percent from the previous quarter, the first meaningful rebound after a string of quarterly declines, although the sector remained 3.9 percent smaller than a year earlier. Government consumption fell 0.4 percent, mainly due to lower health insurance benefit payments. On the production side, services expanded a modest 0.6 percent, supported by wholesale and retail trade, accommodation and food services, and finance and insurance. Financial and insurance activities rose 2.4 percent, reflecting strength in financial investment institutions and related services, while transport and information and communications services contracted. The semiconductor boom also generated a sharp increase in corporate earnings. Nominal GDP expanded 10.5 percent from the previous quarter and 17.1 percent from a year earlier, while nominal GNI increased 11.0 percent quarter-on-quarter and 17.1 percent year-on-year. Employee compensation rose 4.0 percent from the previous quarter, but total operating surplus, a broad measure of corporate profits, surged 17.0 percent, indicating that much of the windfall accrued to companies rather than households. The GDP deflator climbed 12.9 percent from a year earlier. Kim cautioned against interpreting the surge in nominal GDP as a sign of runaway inflation. "The expansion in nominal GDP growth was not due to a surge in domestic prices, but was driven by higher export prices centered on semiconductors," Kim said. "It is different in nature from the periods in the 1970s and 1980s, when nominal growth rose because of cost-push inflation." The income surge also transformed the nation's saving and investment profile. Korea's gross saving rate rose to 41.7 percent in the first quarter from 36.0 percent in the previous quarter, while the gross domestic investment ratio fell to 25.3 percent from 28.2 percent. The household net saving rate, however, slipped to 8.8 percent from 9.1 percent, as high interest rates and a weaker won reduced room for savings. 2026-06-09 11:55:26
Korea's Q1 GDP strongest since Q3 2020 as chip sector drives one-fifth of growth SEOUL, June 09 (AJP) - South Korea's economy expanded at its fastest pace in more than four years in the first quarter, driven by a semiconductor-led investment and export boom that drove near one-fifth of the growth, central bank data showed Tuesday. Real gross domestic product (GDP) grew 1.8 percent from the previous quarter and 3.8 percent from a year earlier in the January-March period, according to the Bank of Korea's final estimate. The figures were revised up from preliminary growth rates of 1.7 percent quarter-on-quarter and 3.6 percent year-on-year released in April. The quarterly expansion was the strongest since the fourth quarter of 2021, when the economy also grew 1.8 percent, while the annual growth rate marked the fastest pace since the 4.1 percent recorded in the third quarter of 2020. The upward revision reflected newly available data for the final month of the quarter, which showed stronger facilities investment and private consumption than initially estimated. The data underscored the outsized role of Korea's semiconductor sector in the current expansion. Information technology industries contributed a record 19.9 percent of overall economic growth, fueled by booming demand for artificial intelligence-related chips and related investment. Manufacturing output rose 3.9 percent from the previous quarter, driven by computers, electronics and optical products. ICT manufacturing output surged 15.4 percent, while non-ICT manufacturing contracted 0.9 percent, highlighting the widening gap between semiconductor-related industries and the rest of the industrial sector. On the expenditure side, facilities investment jumped 6.6 percent from the previous quarter, reversing a decline in the preceding period as companies expanded spending on machinery and transportation equipment. Exports rose 5.9 percent, led by semiconductors and other IT products, while imports increased 3.9 percent on stronger purchases of machinery, equipment and automobiles. Private consumption grew 0.6 percent as spending on both goods and services increased. Construction investment rose 1.4 percent, snapping a string of quarterly declines, while government consumption fell 0.4 percent due largely to lower health insurance benefit payments. Real gross national income (GNI), a broader measure of national purchasing power, surged 9.2 percent from the previous quarter, far outpacing GDP growth and accelerating from a 1.8 percent increase in the fourth quarter, as a weak won and soaring chip prices improved South Korea's terms of trade while lifting income earned from exports and overseas investments Real net factor income from abroad rose to 11.6 trillion won ($7.56 billion) in the first quarter from 8.2 trillion won in the previous quarter. Nominal GDP expanded 10.5 percent from the previous quarter and 17.1 percent from a year earlier, while nominal GNI rose 11.0 percent on quarter. The GDP deflator climbed 12.9 percent from a year earlier, reflecting higher export prices and stronger corporate earnings. 2026-06-09 09:54:50
Won recovers after verbal intervention while bond sell-off deepens SEOUL, June 8 (AJP) - The South Korean won slightly recovered on Monday after a series of verbal warnings from financial authorities, which prompted traders to pull back from their dollar bets. There was also speculation that authorities may have directly intervened in the market. In Seoul, the won closed at 1,548.2 per dollar after opening at 1,555.2 and briefly rising to 1,560 before reversing sharply in morning trade. The turnaround was largely attributed to policy intervention. Yun Kyung-soo, director general of the international department at the Bank of Korea (BOK), and Lee Hyung-ryul, director general of the international finance bureau at the Ministry of Economy and Finance, issued a joint statement, warning that authorities will "never tolerate excessive volatility and one-way herd behavior decoupled from economic fundamentals and will respond strongly." The statement followed two emergency meetings held on last Thursday and Sunday by top economic and financial policymakers including Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol and BOK governor Shin Hyun-song. The Sunday meeting marked the first weekend market-monitoring meeting in about a year and a half since Dec. 8, 2024, when authorities met in the aftermath of disgraced ex-President Yoon Suk Yeol's botched martial law debacle. The unusually strong warning appeared to gain traction after earlier verbal interventions failed to calm the volatile currency market. Market participants also raised the possibility that authorities may have supplied dollar liquidity through smoothing operations, noting that the exchange rate had already started to retreat from its intraday high about an hour before the official statement was released. "Direct smoothing operations cannot be officially confirmed, but we are seeing tangible moves to cushion the won," an FX trader said on condition of anonymity. Despite the won's recovery, the bond market extended its selloff, as investors grew more convinced that persistent currency pressure could force BOK to keep a hawkish policy stance. The debt market came under heavier pressure as the benchmark three-year government bond yield rose 5.8 basis points to 3.940 percent, while the 10-year yield jumped 9.4 basis points to 4.348 percent, with both reaching their highest levels in about two years and seven months since November 2023. The bond selloff deepened as investors interpreted the authorities' defense of the won as a sign that currency weakness has become a more urgent policy concern. That added to expectations that the BOK will maintain a hawkish stance, or even raise rates, if exchange-rate volatility continues to threaten inflation and financial stability. Analysts said downward pressure on bond prices is likely to persist until the market sees a clearer policy response from the central bank. "Expectations that the BOK will raise the benchmark rate to around 3 percent, or possibly as high as 3.25 percent this year, are now being treated almost as a foregone conclusion," said Park Ju-noo, an analyst at Hana Securities. "Investors need to prepare for a scenario in which the three-year yield breaks above the 4 percent threshold." 2026-06-08 17:34:56
Fear of rate hikes drives corporate lending surge in Q1 SEOUL, June 8 (AJP) - Corporate loans in South Korea grew the most since the third quarter of 2022, as companies increased borrowing in the first three months of this year, according to data released by the Bank of Korea (BOK) on Monday. Outstanding industrial loans by deposit-taking institutions stood at 2,061.8 trillion won (US$1.33 trillion) at the end of March, up 35.6 trillion won from the previous quarter. The increase widened sharply from an 8.5 trillion won gain in the fourth quarter. The central bank cited seasonal factors, productive finance, and renewed credit-line borrowing all contributed to the increase, but the widespread rise suggested stronger demand for funds ahead of a potential interest rate hike by the BOK. By industry, loans to manufacturers rose 11.1 trillion won, compared with a 1.2 trillion won increase in the previous quarter. Loans to service companies increased by 24 trillion won, up from a 9.2 trillion won gain, while construction loans rose by 400 billion won, turning positive for the first time in seven quarters. In particular, working-capital loans showed the sharpest increase as they jumped by 26.2 trillion won in the first quarter, far above the previous quarter's 1.9 trillion won increase. Facility loans also rose by 9.4 trillion won. "The expansion in working-capital loans was driven partly by the re-extension of credit lines that companies had temporarily repaid at the end of last year to manage financial ratios," said Lee Hye-young, an BOK official. "Facility loans in both manufacturing and services also saw faster growth," she added. Lee also said increased corporate lending by financial institutions under the government's productive finance drive contributed to the rise. Since late last year, the government has promoted productive finance as a key policy goal, seeking to redirect capital away from real estate and household lending toward corporate investment and regional development. By lender type, loans by deposit banks increased by 25 trillion won, compared with a 9.6 trillion won gain in the previous quarter. Loans by non-bank deposit-taking institutions rose by 10.6 trillion won, reversing a 1.1 trillion won decline. Among deposit bank loans, lending to large companies increased by 12.7 trillion won, while loans to small and medium-sized enterprises rose by 11.6 trillion won. Within the service sector, loans to financial and insurance companies increased by 9.8 trillion won, while loans to wholesale and retail businesses rose by 4.9 trillion won. Faster loan growth could become a burden if it overlaps with monetary tightening. With companies already increasing debt, higher benchmark and market rates could quickly lift interest expenses. The pressure would be especially direct for working capital, or short-term funds used for wages, interest payments and raw material purchases. Construction and non-bank lending also remain risk points. Higher rates could add refinancing pressure on weaker developers and prompt non-bank lenders to tighten standards if bad-loan risks rise. The BOK said the latest loan increase remains manageable. "There have been much larger increases in the past, so in absolute terms, the current level does not appear excessively large," Lee said, asked whether it could raise credit risks. 2026-06-08 15:14:15
Won hits 17-yr low at open, bonds extend losses SEOUL, June 8 (AJP) - The South Korean won fell to its weakest level at the start of trading on Monday, hitting a 17-year low as the currency was battered by expectations of a hawkish Fed and speculative offshore bets amid the prolonged conflict in the Middle East. The domestic debt market also suffered a severe rout, spreading intense volatility across broader financial markets. The won opened at 1,555.2 won per dollar, tumbling 16.1 won from the previous session. This marks the lowest level for the local currency since March 6, 2009, when it began trading at 1,597 won during the global financial crisis. Severe weakness had already materialized in the offshore non-deliverable forward (NDF) market, where the rate broke through 1,560 won over the weekend. Meanwhile, retail exchange rates at several physical booths fell below 1,600 won. Market sentiment crumbled after stronger-than-expected U.S. non-farm payrolls fueled expectations that the Federal Reserve, led by Chair Kevin Warsh, would pivot back to raising interest rates. Following the data, the Nasdaq plunged over 4 percent and the Philadelphia Semiconductor Index crashed more than 10 percent, while the U.S. Dollar Index surged past the 100 level. These dual pressures are being directly reflected in South Korea's equity and foreign exchange markets. The benchmark KOSPI triggered a circuit breaker after plunging 8.37 percent to open at 7,477.46, while foreign investors offloaded over 900 billion won (US$578.7 million) during the morning session, further compounding downward pressure on the won. As the currency rattled, heads of the nation's four financial watchdogs convened an emergency meeting on Sunday to issue high-intensity warnings against speculative one-way bets. Despite repeated hawkish signaling from Bank of Korea governor Shin Hyun-song hinting at rate hikes, exchange rate anxieties have shown no signs of calming. While financial authorities refrained from announcing explicit direct interventions, market participants suspect that dollar-selling measures, including currency swaps with the National Pension Service, are actively underway. After opening around 1,550, the won pared some early losses to trade near the upper 1,550s by mid-morning. "While direct smoothing operations cannot be officially confirmed, we are observing tangible movements to cushion the currency's floor," an FX trader said on the condition of anonymity. The debt market also faced severe disruption, with sovereign yields spiking to multi-year highs. As of early morning, the benchmark three-year government bond yield crossed 3.9 percent and the 10-year yield topped 4.3 percent, marking their highest levels since November 2023. Downward pressure intensified as a domestic interest rate hike is increasingly viewed by the market as a foregone conclusion. Sentiment was further dampened as major global sovereign debt yields spiked in tandem, with the 30-year U.S. Treasury yield breaking above the 5 percent threshold. South Korea's phased inclusion into the World Government Bond Index (WGBI) since April was intended to drive foreign capital inflows, but external shocks have completely muted its impact. A near-record net purchase of 10-year bonds by foreign investors on June 2 proved short-lived, as it was driven primarily by temporary 30-year bond auction rollovers. 2026-06-08 11:06:46
Financial watchdogs step up warnings as won slides despite verbal interventions SEOUL, June 7 (AJP) - Financial authorities on Sunday issued their strongest warning yet over speculative trading and other suspicious activity, as the South Korean won's sharp decline pushed the won-dollar rate above 1,560. They vowed to step up inspections and scrutiny of illegal foreign exchange transactions by importers and exporters at an emergency meeting convened by Finance and Economy Minister Koo Yun-cheol, which was attended by key financial chiefs including Bank of Korea governor Shin Hyun-song, Financial Services Commission chairman Lee Eog-won, and Financial Supervisory Service governor Lee Chan-jin. The warning came after two earlier verbal interventions failed to prevent further weakening of the currency. Participants assessed that the won's exchange rate against the dollar rose sharply over the weekend, amid expectations that the Fed may raise interest rates. According to the ministry, the exchange rate climbed from around 1,539.1 won on Friday afternoon to 1,560.2 later in the day as the U.S. market opened. Sunday's meeting followed a series of warnings from monetary and financial authorities. BOK governor Shin said during a press briefing late last month that the central bank would "not tolerate herd behavior in the exchange rate." During a meeting earlier last week, Koo also issued a similar warning, vowing to "immediately take necessary measures" against any irregularities. Despite these warnings, the rate crossed 1,560 won, while retail won-selling rates quoted by some currency exchange booths approached the 1,600 level. Officials said the won's recent volatility was partly attributed to foreign investors cashing out and reshuffling their portfolios after a chip-driven rally in the domestic stock market. The latest warning was stronger than previous ones, as the one in late May focused on countering market perceptions that the BOK governor would tolerate a weaker won, while last week's meeting delivered broader measures across agencies to stabilize the market. By contrast, Sunday's meeting directly singles out speculative trading, offshore NDF activity, and possible market disruption. The BOK and FSS agreed to improve the transparency of offshore non-deliverable forward transactions and to prepare measures to bring more of such trading into the domestic foreign exchange market. Officials also said they would take stern action if violations are found. Potentially illegal "lead and lag" transactions by trade companies will also be subject to scrutiny. Such transactions involve importers accelerating payments or exporters excessively delaying the receipt of export proceeds to benefit from a rising exchange rate. Koo said authorities will monitor market conditions under a 24-hour, high-level alert posture. He warned that market volatility could intensify again depending on the course of the prolonged conflict in the Middle East and upcoming U.S. inflation data. But it remains to be seen whether the stronger warning will lead to inspections, tighter monitoring of offshore transactions, or additional stabilization measures. 2026-06-07 17:18:00
Won plummets past 1,540 as bonds extend losses SEOUL, June 5 (AJP) - South Korea's financial markets remained unsettled on Friday as the won-dollar exchange rate closed at about 1,540 won, for the first time in nearly 17 years and bond yields extended their rise. Heavy foreign selling in local equities continued to weigh on the won and debt markets, while traders saw no clear signs of actual intervention by foreign exchange authorities. In the Seoul foreign exchange market, the exchange rate closed at 1,539.1, down 9.4 from the previous session's overnight close. It was the first time the exchange rate ended regular trading above the 1,540 threshold in 17 years - since the aftermath of the global financial crisis in March 2009. During intraday trading, the rate rose as high as 1,547, marking a sharp increase from Thursday's daytime close of 1,529.7. The won's weakness came alongside a sharp sell-off in the domestic stock market, with the benchmark KOSPI falling more than 6 percent intraday, briefly dipping below 8,100 and triggering a selling "sidecar" that temporarily halted program trading sell orders. Overnight on Wall Street, Broadcom's post-earnings plunge weighed on sentiment toward artificial intelligence and semiconductor stocks, adding pressure to tech and AI heavyweights that had led the recent rally in Seoul. Foreign investors net sold more than 3.5 trillion won ($2.27 billion) worth of KOSPI shares on Friday, after unloading a net 16.5 trillion won over three trading sessions from Monday to Thursday despite a one-day market closure for local elections. The foreign selling streak, which began last month, extended to a 20th consecutive session, the longest stretch of net selling since March-April 2020. Despite limited moves in the U.S. Dollar Index and the dollar-yen exchange rate, the won fell more sharply than major emerging market currencies, underscoring Korea-specific pressure tied to foreign selling in local stocks. The won's underperformance was also clear against regional peers on June 5, with the Singapore dollar, Hong Kong dollar and Vietnamese dong largely flat against the dollar and the Indonesian rupiah down about 0.2 percent, while the won fell nearly 1 percent from the previous session's regular market close. Equity outflows also offset strong exports and a solid current account surplus, adding upward pressure on the exchange rate. The Bank of Korea said Friday that the April current account surplus reached $28.29 billion, the second-largest on record after the previous month's all-time high, but the large goods surplus was overshadowed by currency conversion and hedging demand linked to foreign stock selling. The debt market also extended its losses, with the benchmark three-year government bond yield closing up 2.4 basis points at 3.882 percent - highest level in 31 months - and the 10-year yield rising 2.5 basis points to 4.254 percent. This followed a sharp sell-off on Thursday, when the three-year yield jumped 8.5 basis points to 3.858 percent and the 10-year yield climbed 9.4 basis points to 4.229 percent. The continued bond weakness reflects concerns that the weaker won, rising international crude prices, Middle East tensions and additional U.S. tariff pressure could add to import-price inflation and prompt further tightening by the BOK. Policymakers have stepped up verbal intervention for two consecutive days. Koo Yun-cheol, Deputy Prime Minister and Minister of Economy and Finance, said on Friday that authorities are "responding with extraordinary vigilance to the widening volatility in financial and foreign exchange markets, as well as the challenges facing consumer prices." The remark followed his warning Thursday that "immediate necessary measures" would be taken against excessive one-way herd behavior, but traders said there were no clear signs that authorities had supplied dollars to stabilize the market. "No clear indications of smoothing operations to cap the upper limit of the exchange rate have been observed so far," an FX trader said on the condition of anonymity. With the exchange rate nearing the 1,550 won threshold, market participants are watching the tone of further official messages and whether authorities will take concrete market-stabilization steps. 2026-06-05 18:03:38
BOK taps new deputy governors SEOUL, June 5 (AJP) - Bank of Korea governor Shin Hyun-song appointed two new deputy governors on Friday, filling vacancies in the central bank's research and statistics division and its management division. The appointments mark one of Shin's first major personnel moves since taking up the post of monetary chief in mid-April, placing emphasis on economic forecasting, policy communication and internal management as the central bank navigates heightened market volatility. The BOK said Lee Ji-ho, director general of the research department, was named deputy governor in charge of research and statistics, while Kim Je-hyun, director general of the human resources and administration department, was appointed deputy governor in charge of management. Lee succeeds former Deputy Governor Kim Woong, whose term ended in March, while Kim fills the post previously held by Chae Byung-deuk, who left the BOK earlier this year and was later named president of the Korea Financial Telecommunications & Clearings Institute. Lee joined the BOK in 1997 and has worked in the financial markets, monetary policy and research departments. He also served at the finance ministry before returning to the central bank, where he has led the research department since 2024. The central bank said Lee helped improve its economic outlook process by providing more detailed quarterly projections for growth and inflation, contributing to greater transparency and effectiveness in monetary policy. Kim joined the BOK in 1996 and has held posts across policy, communications and personnel management, including policy adviser, secretary general, communications chief and human resources director. The BOK said Kim helped manage personnel reforms and workforce operations during recent organizational changes and new business projects, citing his understanding of the institution, communication skills and experience assisting the governor. The appointments suggest Shin is seeking to strengthen the BOK's economic analysis and policy messaging at a time when inflation, growth, exchange-rate volatility and financial stability risks are all shaping the policy outlook. Lee's promotion puts a senior research official with both central bank and finance ministry experience in charge of the analytical backbone of monetary policy. Kim's appointment, meanwhile, points to an emphasis on organizational stability and internal execution as the BOK adjusts to new communication tools and changing market conditions. Their three-year terms began immediately and run until June 2029. 2026-06-05 16:15:49
Won weakens further as KOSPI drops over 6% SEOUL, June 5 (AJP) - The South Korean won continued weakening on Friday, with the exchange rate climbing to 1,542 per dollar around noon, from the previous session's close of 1,529.70. The decline came less than a day after the exchange rate weakened past 1,540 won during extended trading, marking its highest intraday level since the global financial crisis. It appears to be largely due to a sharp sell-off in South Korean stocks. The country's benchmark KOSPI tumbled more than 6 percent at one point, briefly falling below 8,100, while a sell-side program trading curb, known as a sidecar, was triggered to slow the pace of the decline. The selloff followed overnight weakness in U.S. technology shares, with Broadcom falling sharply after its earnings release. The decline weighed on investor sentiment toward artificial intelligence (AI) and semiconductor-related stocks, which have been among the key drivers of the recent rally in Seoul. Foreign investors were net sellers of more than 2 trillion won worth of KOSPI shares during the morning session. The selling followed a wave of foreign outflows earlier this week. Foreign investors sold a net 16.5 trillion won worth of KOSPI shares from Monday to Thursday - over just three trading sessions in June. The dollar index and the dollar-yen exchange rate showed relatively limited movements during the same period, while the won's decline deepened alongside foreign selling in the local stock market. Bond yields also extended their rise, though the pace of increase was more limited than the previous session. During morning trading, the three-year government bond yield was up 2.1 basis points at 3.879 percent, while the 10-year yield rose 2.6 basis points to 4.255 percent. The move followed a sharp selloff in the bond market, when the three-year yield jumped 8.5 basis points to close at 3.858 percent and the 10-year yield climbed 9.4 basis points to 4.229 percent. 2026-06-05 13:38:07