AJU PRESS ASIA FIRST NEWS AGENCY

Journalist

Kim Yeon-jae
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
  • Luxembourg looks to deepen partnership at National Day celebrations in Seoul
    Luxembourg looks to deepen partnership at National Day celebrations in Seoul SEOUL, June 23 (AJP) - Luxembourg marked its annual National Day at a reception in central Seoul on Monday, highlighting the country's deepening partnership with South Korea across various sectors including finance, advanced technology, and green growth. In his opening remarks at the reception which was held at The Hotel Shilla, a day ahead of the country's public holiday on June 23, Luxembourg Ambassador to Seoul Jacques Flies said the occasion provided an opportunity to reflect on the achievements of the two countries and look ahead to a more ambitious partnership. He said relations between Luxembourg and Korea had gained strong momentum over the past year, particularly in the financial sector, as the two countries seek to deepen economic cooperation. Flies highlighted closer cooperation in banking, payment services, and asset management, saying the Luxembourg Stock Exchange has helped connect South Korean issuers to global capital markets. He said South Korean entities have raised about 27 billion euros through 38 bonds listed in Luxembourg over the past two years, with some 2.8 billion euros listed on the Luxembourg Green Exchange, supporting sustainable development projects in South Korea. Citing green finance as a key area of Luxembourg's expertise, he said Luxembourg's membership in the Global Green Growth Institute, headquartered in Seoul, reflects its commitment to sustainable growth with South Korea. He also said cooperation was expanding into space, quantum technology, and healthcare, amid growing exchanges between companies and institutions in both countries. South Korea's ambassador and deputy minister for public diplomacy at the Ministry of Foreign Affairs, Lim Sang-woo, also delivered remarks at the event. He stressed the historical bond between the two countries which was forged during the Korean War (1950~1953), when Luxembourg sent troops to South Korea, more than a decade before the two countries established diplomatic relations in 1962. Lim recalled that Luxembourg dispatched more than 85 soldiers to the distant Asian country, despite still recovering from World War II and having a population of about 200,000 at the time. On behalf of the South Korean government, Lim also said his country would always remember the sacrifice of Luxembourg's soldiers and that their friendship has since grown into a broader partnership. Pointing to bilateral trade rising by more than 60 percent in 2025 from a year earlier, he expressed hope for further growth and exchanges. Lim also said Luxembourg's accession to the Global Green Growth Institute would create new opportunities for environmental cooperation between the two countries. "True friendship that transcends borders runs deeper than mere interests and stands firm in the face of any challenge," Lim said. He added that the relationship between South Korea and Luxembourg would become an "even more shining treasure" in the years to come. 2026-06-23 15:07:32
  • Korea consumer confident stays positive, but jitters rise over higher rates
    Korea consumer confident stays positive, but jitters rise over higher rates SEOUL, June 23 (AJP) - South Korea's consumer confidence remained positive for a second straight month, shrugging off the prolonged Gulf conflict on the back of a strong stock market, but the outlook deteriorated as concerns grew over higher rents and interest rates, central bank data showed Tuesday. According to the Bank of Korea, the Composite Consumer Sentiment Index edged up to 106.6 in June from 106.1 in May, marking a second consecutive month above the 100 threshold after recovering from Gulf-triggered energy jitters. A reading above 100 means consumers are more optimistic than the long-term average. The index had stood at 112.1 in February before falling to 99.2 in April, when higher oil prices, currency volatility and Middle East-related uncertainty weighed on household confidence. Assessments of current living conditions improved slightly to 94 from 93, while perceptions of current economic conditions rose to 86 from 83. Expectations for household finances were unchanged at 97, while the broader economic outlook slipped slightly to 92 from 93. Household income expectations remained steady at 100, and spending plans held firm at 110, supported by expectations of stronger income growth and hiring prospects amid robust exports and a buoyant stock market. Jitters over higher interest rates, inflation and housing prices, however, darkened the future outlook. The interest-rate outlook index jumped 12 points to 126, its largest monthly increase since December 2016. The BOK said expectations of a policy rate hike and higher market interest rates were reflected in the reading. The home-price outlook index rose eight points to 120, its highest level since January, as apartment sale and jeonse prices accelerated, particularly in Seoul and Gyeonggi Province. The index has now risen for three consecutive months after falling to 96 in March. Recent housing data illustrate why consumers are becoming more sensitive to home prices. Seoul apartment prices rose 0.27 percent in the week ended June 15, matching the previous week's pace, while Dongtan in Gyeonggi Province jumped 2.22 percent over the same period, the fastest increase nationwide. Inflation expectations also remained elevated. Consumers' perceived inflation rate over the past year stayed at 3.0 percent, while one-year-ahead inflation expectations remained unchanged at 2.8 percent. Three-year inflation expectations rose 0.1 percentage point to 2.7 percent, while five-year expectations held steady at 2.6 percent. Petroleum products remained the dominant factor shaping inflation expectations, cited by 77.5 percent of respondents. But that share fell by 7.7 percentage points from May as international oil prices retreated toward $70 a barrel after the United States and Iran made progress toward a memorandum of understanding aimed at ending the conflict. More consumers, meanwhile, pointed to rents and personal services as future price drivers. Public utility charges were cited by 29.6 percent of respondents, followed by agricultural, livestock and fisheries products at 28.6 percent. The survey was conducted from June 9 to 16 among 2,245 urban households nationwide. 2026-06-23 07:56:21
  • FIFA sends hidden message to South Korea before final group match
    FIFA sends hidden message to South Korea before final group match SEOUL, June 22 (AJP) - FIFA has sent a playful message of support to South Korea ahead of their final group match at the 2026 FIFA World Cup. The world football governing body posted a series of photos of South Korean players on its official Instagram account Monday in Korea, along with the message, “Fighting for the final group match,” written in Korean. The post featured Cho Gue-sung, Eom Ji-sung, Lee Han-beom, Lee Kang-in, Hwang Hee-chan and Hwang In-beom. Each photo contained one Korean syllable at the top, forming a hidden message when read in order. The letters combined to read, “Even if you fall, again,” a phrase understood by fans as a call for the team to rise again after defeat. South Korea, led by head coach Hong Myung-bo, opened Group A with a 2-1 comeback win over Czechia before losing 1-0 to Mexico in their second match. The team sit second in Group A with three points and will face South Africa in their final group match on June 25. A draw would be enough for South Korea to secure a place in the knockout stage. 2026-06-22 18:00:29
  • SME loan delinquency rate at top five banks hits record high
    SME loan delinquency rate at top five banks hits record high SEOUL, June 22 (AJP) - Loan delinquencies among small and medium-sized enterprises at South Korea’s five major banks rose to the highest level in data going back to January 2020, underscoring growing stress among smaller companies and self-employed borrowers. The average delinquency rate on won-denominated loans at KB Kookmin, Shinhan, Hana, Woori and NH NongHyup stood at 0.51 percent at the end of May, according to financial industry data released Monday. That was up 0.05 percentage point from 0.46 percent a month earlier and 0.14 percentage point from 0.37 percent at the end of last year. The deterioration was most pronounced among SMEs. Their average delinquency rate at the five banks reached 0.73 percent at the end of May, the highest since comparable data became available in January 2020. The figure rose from 0.50 percent at the end of last year to 0.65 percent at the end of April, before climbing another 0.08 percentage point in May alone. By comparison, the delinquency rate for loans to large companies rose to 0.09 percent from 0.03 percent over the same period. The delinquency rate for household loans increased more moderately to 0.35 percent from 0.30 percent. Signs of deeper credit stress also widened. The five banks’ average substandard-or-below loan ratio for won-denominated loans stood at 0.44 percent at the end of May. For SMEs, the ratio reached 0.68 percent, also the highest level in data going back to January 2020. That was more than twice the level for large companies at 0.30 percent and households at 0.27 percent. Substandard-or-below loans refer to loans classified as difficult to recover normally, including loans overdue for three months or longer. The increase suggests that rising delinquencies are beginning to translate into a broader buildup of bad loans. Individual banks also showed sharp deterioration in SME loan quality. At some banks, SME delinquency rates rose to their highest levels since 2016, pointing to the most severe repayment pressure in about a decade. Analysts say smaller companies are being squeezed by a combination of higher oil prices, a weaker won and rising market interest rates. The Middle East war has increased energy and raw material costs, while the won’s depreciation has raised import bills. Borrowing costs have also moved higher. The three-year Korean Treasury bond yield stood at 3.731 percent at the end of May, up 13.6 basis points from the end of April, according to the Korea Financial Investment Association. The 10-year and 30-year yields rose 14.5 basis points and 21.6 basis points, respectively. Higher market rates tend to feed into bank lending rates with a lag. SMEs and self-employed borrowers are particularly vulnerable because they depend more heavily on bank loans than large corporations and often carry a higher share of floating-rate debt. The data also point to a widening divide between export-led large manufacturers and domestic demand-oriented small businesses. While semiconductor exports have supported Korea’s headline trade recovery, many smaller firms in services, real estate and rental businesses are facing weaker cash flows. A commercial bank official said delinquency rates were rising quickly among SMEs in real estate, rental and service sectors, warning that the credit-quality gap by company size could widen further if domestic and external uncertainties persist. Financial authorities are monitoring the trend closely. The Financial Supervisory Service said earlier that the delinquency rate on won-denominated loans at domestic banks rose to 0.61 percent at the end of April, up 0.05 percentage point from a month earlier, and pledged to encourage banks to strengthen loss-absorbing capacity and support debt restructuring for vulnerable borrowers. 2026-06-22 17:53:56
  • Asias currencies wobble again, but this is not another IMF moment
    Asia's currencies wobble again, but this is not another IMF moment SEOUL, June 22 (AJP) - Asia's currencies are flashing warning signs again, stirring uncomfortable memories of the late 1990s, when one collapsing exchange rate after another triggered a regional financial meltdown. This time, however, the story is fundamentally different. From South Korea’s won and Indonesia’s rupiah to the Philippine peso, parts of Asia have come under renewed pressure as Gulf energy disruptions raise inflation risks, U.S. interest rates remain elevated and Asian savings increasingly migrate toward dollar assets. The pressure is not uniform. The Indonesian rupiah has weakened more sharply than the won this year, while the Philippine peso has also struggled. The Malaysian ringgit and Thai baht have been more resilient on a year-to-date basis, but remain exposed to the same forces: energy costs, dollar rates and shifting capital flows. Yet policymakers are showing little of the panic that once accompanied such numbers. This time, the pressure is less about Asia running out of dollars than about Asian savings moving into dollar assets. That distinction may define a new era of currency management across the region. The average value of the won against the U.S. dollar in June has slipped to its weakest level since 1998, when South Korea was under an International Monetary Fund bailout. According to Bank of Korea data, the won traded at an average of 1,521.4 per dollar between June 1 and 19, based on daytime closing prices in Seoul. The average marked the weakest monthly level since February 1998, when the won averaged 1,626.7 per dollar. It was also weaker than the 1,453.3 average recorded in March 2009 during the global financial crisis. The won has remained above the psychologically important 1,500 level for 24 consecutive trading sessions since May 15. Yet the resemblance to earlier crises largely ends there. Asia’s currency pressure is broad, but uneven The Indonesian rupiah, Malaysian ringgit and Thai baht have all experienced even larger declines this year, while Taiwan and India have seen substantial foreign capital outflows. Taiwan has recorded roughly $22 billion in equity outflows and India about $31 billion. South Korea has experienced an even larger withdrawal, with around $78 billion leaving the market by June 12. Several forces are converging simultaneously. The Gulf conflict has revived concerns over energy security. The Federal Reserve has maintained a higher-for-longer interest rate stance. At the same time, Asian investors themselves are increasingly allocating savings and leveraged funds to U.S. equities and other dollar-denominated assets. The result is a region-wide imbalance in which structural demand for dollars is steadily overwhelming traditional support from trade surpluses. That is a very different phenomenon from the one that destabilized Asia nearly three decades ago. The latest Gulf tensions have reminded policymakers that Asia remains uniquely exposed to energy disruptions. About a fifth of global oil and liquefied natural gas trade passes through the Strait of Hormuz, and many Asian economies remain heavily dependent on Middle Eastern supplies. South Korea imports more than 70 percent of its crude oil from the region. Japan, Taiwan and India also rely heavily on Gulf energy. Every spike in oil prices now carries a triple effect. Higher import bills weaken currencies. Weaker currencies amplify imported inflation. Inflation risks, in turn, limit central banks' ability to cut interest rates to support growth. The dynamic has become particularly challenging because it is colliding with another long-term trend: Asia's capital is increasingly moving abroad. This is not a replay of 1997 In late 1997, South Korea's official foreign exchange reserves stood at just $24.2 billion, while usable reserves had fallen to only $9.2 billion. More than half of the country's $120 billion in external debt was short-term borrowing due within a year. Today, the numbers tell a different story. South Korea held $426.99 billion in foreign exchange reserves at the end of May. It posted a $28.29 billion current account surplus in April, while its net international investment position stood at $753.6 billion at the end of the first quarter. These are hardly the balance sheets of an economy facing a solvency crisis. The stress is instead emerging from the financial account. In other words, Korea is not suffering from a shortage of dollars. It is facing an abundance of won chasing dollars. The same pattern is increasingly visible elsewhere in Asia. Korea's vulnerability stems from several overlapping factors. The interest rate gap with the United States remains significant. The Bank of Korea's benchmark rate stands at 2.5 percent, while the upper bound of the Federal Reserve's target range remains at 3.75 percent. The differential makes dollar assets more attractive than won-denominated investments. At the same time, foreign investors have become persistent sellers of Korean equities. According to the Bank of Korea, foreign investors withdrew a net $31.83 billion from Korean stocks in May, the largest monthly outflow since comparable data began. Bond inflows of $5.68 billion were nowhere near enough to offset the exodus. Paradoxically, Korea's stock market rally has amplified the pressure. The KOSPI continues to set record highs, expanding the value of foreign-held shares. Even modest profit-taking can therefore generate substantial dollar demand. Asia's capital is becoming a global market force The growing importance of East Asian capital has become significant enough to draw attention from Washington. U.S. Treasury Secretary Scott Bessent has repeatedly underscored the importance of Asian currencies, capital flows and monetary policy decisions as factors that can influence global financial markets. Japan's decision to raise interest rates to 1 percent for the first time in more than three decades has exposed a new source of anxiety in Washington: the possibility that Asian capital could flow back home. Japanese households and institutions collectively hold some of the world's largest pools of overseas assets, including roughly $1.1 trillion in U.S. Treasuries, making Japan the largest foreign holder of American government debt. According to Japanese media reports, Bessent privately encouraged Japanese policymakers to normalize monetary policy sooner rather than later, warning that delaying action could eventually require more aggressive tightening. The episode highlights an increasingly important reality. Asian interest rates no longer matter only for domestic economies. They have become global financial variables. Higher Japanese yields could encourage domestic investors to repatriate funds, reducing demand for U.S. Treasuries and potentially pushing up borrowing costs in the United States itself. Domestic liquidity is adding another layer of pressure. Broad money, or M2, rose 5.7 percent year-on-year in April, reaching 4,153.9 trillion won. At the same time, Korean households, pension funds and institutions continue accelerating their overseas investments. The National Pension Service plans to raise its allocation to overseas equities to 37.2 percent by the end of this year, up from 35.9 percent. Institutional investors already held more than $500 billion in foreign securities at the end of March. The trend reflects a broader shift in investor behavior. South Korea is no longer merely an export-driven economy. It is becoming a major exporter of capital. That creates recurring dollar demand, leaving the won more vulnerable whenever global rates, energy prices or foreign equity flows turn against Korea. 2026-06-22 17:53:37
  • World Cup 26: Japan makes history, Egypt fetches first win
    World Cup 26: Japan makes history, Egypt fetches first win SEOUL, June 22 (AJP) - The 2026 FIFA World Cup produced a weekend of milestones across the group stage, from Egypt’s long-awaited first victory to historic wins for the United States and Japan. Japan marked the 1,000th match in World Cup history by becoming the first Asian team to win a tournament match with four goals, while the United States won back-to-back World Cup games for the first time in 96 years. Egypt beat New Zealand for the country’s first World Cup win, and debutants Cape Verde took another point off a major opponent to strengthen their hopes of reaching the knockout stage. The weekend began with the United States beating Australia 2-0 for a second straight win in Group D, following up their opening 4-1 victory over Paraguay. The result sent the U.S. into the knockout stage as the second co-host to advance after Mexico. It also gave the Americans back-to-back World Cup victories for the first time since the inaugural 1930 tournament and their first two-win start since the group-stage format was introduced. In the same group, Turkey were eliminated after a 1-0 defeat to Paraguay, ending their first two matches with 62 shots but no goals. That left Turkey with the unwanted distinction of producing the most shots without scoring by a team eliminated after its first two World Cup group matches. The results left the United States firmly in control of Group D, while Turkey’s exit turned the final round into a fight for the remaining places behind the co-hosts. In Group C, Morocco beat Scotland 1-0 thanks to Ismael Saibari’s winner just 71 seconds into the match, while Brazil claimed their first win by beating Haiti 3-0 behind two goals from Matheus Cunha and another from Vinicius Junior. Japan then delivered one of the weekend’s defining performances, beating Tunisia 4-0 in Monterrey in a Group F match that marked the 1,000th game in World Cup history. Daichi Kamada opened the scoring in the fourth minute, Ayase Ueda struck twice and Junya Ito also found the net, making Japan the first Asian team to score four goals in a World Cup match and win. The Netherlands thrashed Sweden 5-1, with Brian Brobbey and Cody Gakpo each scoring twice, while Germany came from behind to beat Ivory Coast 2-1 and secure a place in the knockout stage. Ecuador and Curacao played out a 0-0 draw, with Curacao goalkeeper Eloy Room making 15 saves to earn the country its first World Cup point. The results kept Japan and the Netherlands on course for a decisive meeting at the top of Group F, while Germany joined the United States in the knockout stage with a game to spare. Sunday’s matches began with Spain restoring some order in Group H after their opening 0-0 draw with Cape Verde. Spain beat Saudi Arabia 4-0 at Atlanta Stadium, with Lamine Yamal scoring the opener in the 10th minute and Mikel Oyarzabal adding two goals. Saudi defender Hassan Al-Tambakti also turned the ball into his own net early in the second half. The win moved Spain to four points, while Saudi Arabia’s heavy defeat wiped away much of the momentum from their opening 1-1 draw with Uruguay. Spain moved top of Group H, but the group remained open with Cape Verde and Uruguay still waiting later in the day. In Group G, Belgium and Iran drew 0-0 in Los Angeles, leaving both teams unbeaten but unable to take full control of the group. Belgium were reduced to 10 men in the 66th minute after Nathan Ngoy was sent off for stopping Mehdi Taremi’s clear scoring chance, but Iran failed to dominate even with a man advantage. Goalkeeper Alireza Beiranvand made key saves to keep Iran level, but the result again pointed to the toll of repeated travel and unsettled preparation. Iran have now drawn both of their matches after opening with a 2-2 draw against New Zealand. Cape Verde’s unlikely run continued in Group H as the debutants drew 2-2 with Uruguay at Miami Stadium, taking another point from one of the group’s established powers. Kevin Pina scored Cape Verde’s first World Cup goal with a free kick in the 21st minute, but Uruguay turned the match around before halftime through Maxi Araujo and Agustin Canobbio. Cape Verde hit back in the 61st minute through Helio Varela and held on for another valuable point. After drawing Spain in their opening match, Cape Verde have now taken points from Spain and Uruguay in their first World Cup appearance. A win over Saudi Arabia in their final group match would secure a top-two finish and send Cape Verde into the knockout stage, while a draw could still be enough through the third-placed team ranking. That result kept Group H alive until the final round. Spain lead the group, but Cape Verde and Uruguay remain level on two points, leaving Cape Verde with a real chance to extend their debut campaign. The final match of the weekend brought another landmark as Egypt beat New Zealand 3-1 to claim their first World Cup victory. New Zealand took the lead in the 15th minute through Finn Surman and appeared to be closing in on their own first World Cup win, but Egypt came alive after halftime. Mostafa Ziko equalized in the 59th minute before Mohamed Salah put Egypt ahead in the 67th. Trezeguet sealed the win in the 82nd minute, giving Egypt their first victory in their ninth World Cup match. Salah, who endured a difficult club season before ending his time with Liverpool, delivered when Egypt needed him most and again became the country’s hero. New Zealand, meanwhile, failed to protect a lead for the second time after their 2-2 draw with Iran. Their unbeaten run ended, and their wait for a first World Cup win continues. Egypt’s win changed the shape of Group G. Belgium and Iran remain unbeaten but stuck on two draws, while Egypt now have the clearest momentum going into the final round. New Zealand, 16 years after their last World Cup appearance, are again in danger of an early exit. 2026-06-22 13:02:15
  • Koreas June exports set 20-day record on tripled chip shipments
    Korea's June exports set 20-day record on tripled chip shipments SEOUL, June 22 (AJP) - South Korea’s exports rose to a record for the first 20 days of a month in June, as a powerful rebound in semiconductors pushed shipments nearly 60 percent higher from a year earlier. Exports came to $61.99 billion between June 1 and 20, up 60.4 percent from the same period last year, preliminary data from the Korea Customs Service showed Monday. The figure surpassed the previous 20-day record of $54.3 billion set in March, pointing to a sharper-than-expected acceleration in Korea’s trade recovery. The headline gain was partly helped by the calendar. There were 15 working days during the period, one more than a year earlier. But even after adjusting for working days, exports rose 49.7 percent on-year to an average $4.13 billion per day. Semiconductors did most of the heavy lifting. Chip exports nearly tripled from a year earlier, jumping 188.4 percent to $25.51 billion. That was also the highest figure ever recorded for the first 20 days of a month. The surge lifted semiconductors’ share of total exports to 41.2 percent, up 18.3 percentage points from a year earlier, underscoring how heavily Korea’s export rebound now depends on the chip cycle. Other technology-related shipments also showed strength. Exports of computer peripherals almost quadrupled to $3.07 billion, rising 293.3 percent from a year earlier. Petroleum product exports rose 39.0 percent to $3.68 billion, while ship exports climbed 39.9 percent to $2.22 billion. Passenger car exports were more subdued, rising 2.3 percent to $3.74 billion. Auto parts exports fell 9.5 percent to $1.11 billion. The recovery was broad across major markets, but China and the United States remained the main anchors. Exports to China jumped 86.9 percent to $13.05 billion, while shipments to the United States rose 53.9 percent to $11.40 billion. Exports to Vietnam increased 75.5 percent to $5.93 billion. Shipments to the European Union rose 13.6 percent, and exports to Taiwan more than doubled, rising 103.6 percent. China, the United States and Vietnam together accounted for 49.0 percent of Korea’s total exports during the period. Imports rose at a slower pace than exports, increasing 23.2 percent from a year earlier to $44.50 billion. Semiconductor imports rose 55.5 percent to $7.10 billion, reflecting strong demand across the chip supply chain. Imports of chipmaking equipment also climbed 51.9 percent to $2.14 billion. Energy imports increased as well. Crude oil imports rose 18.8 percent to $5.44 billion, gas imports gained 8.3 percent and coal imports jumped 63.1 percent. Combined imports of crude oil, gas and coal were up 19.9 percent from a year earlier. Imports from China rose 41.1 percent to $11.28 billion, while those from the United States increased 26.0 percent to $5.54 billion. Imports from the European Union, Japan and Taiwan also rose, gaining 16.4 percent, 14.2 percent and 33.8 percent, respectively. With exports growing far faster than imports, Korea posted a trade surplus of $17.50 billion for the June 1-20 period. For the year through June 20, exports totaled $456.45 billion, up 45.6 percent from a year earlier. Imports rose 15.1 percent to $336.79 billion, leaving a cumulative trade surplus of $119.67 billion. The customs agency cautioned that the figures are preliminary and cover only a short period, meaning they can be affected by changes in working days. Some figures may be revised before annual trade data are finalized. 2026-06-22 10:54:15
  • Won swings near 1,540 before ending flat; bonds weaken on hawkish Fed
    Won swings near 1,540 before ending flat; bonds weaken on hawkish Fed SEOUL, June 19 (AJP) - The Korean won erased most of its intraday losses Friday after briefly approaching the 1,540 level against the dollar, while government bonds weakened as a hawkish Federal Reserve outlook kept pressure on Seoul’s financial markets. The won closed daytime trading at 1,527.0 per dollar, up 0.1 won from the previous session, according to Seoul foreign exchange market data. The currency came under heavy pressure early in the session as the dollar strengthened on expectations that the Fed would keep policy tight for longer amid persistent inflation risks. The won opened at 1,537.4 per dollar, down 10.3 won from the previous close, and weakened as far as 1,539.5 during intraday trading, putting the 1,540 level back in sight. But the move lost steam in the afternoon, with the won recovering sharply toward the previous day’s closing level. Market participants said the reversal appeared to reflect growing caution over possible smoothing operations by the foreign exchange authorities near the 1,540 threshold. Foreign exchange officials did not confirm whether any intervention had taken place. Still, traders said the authorities’ repeated warnings against one-sided moves in the currency market likely helped cap the dollar-won rate. The bond market also remained under pressure, as expectations of tighter monetary policy at major central banks, including the Bank of Korea, weighed on sentiment. The yield on three-year government bonds rose 3.4 basis points to 3.784 percent, while the 10-year yield climbed 5.3 basis points to 4.171 percent. Bond yields move inversely to prices. 2026-06-19 16:43:47
  • Koreas C/A surplus with U.S. falls and US stockholdings doubles
    Korea's C/A surplus with U.S. falls and US stockholdings doubles SEOUL, June 19 (AJP) - South Korea’s current account surplus with the United States fell for the first time in six years in 2025 amid rising cost of intellectual property and artificial intelligence services, central bank data showed Friday. The data showed that Korea’s goods surplus with the United States remained strong, but was increasingly offset by a wider services deficit and weaker income receipts. According to preliminary regional balance of payments data from the Bank of Korea, Korea posted a current account surplus of $123.05 billion in 2025, up from $99.97 billion a year earlier. The improvement was led by goods. Korea’s goods account surplus rose to $138.07 billion from $110.91 billion, while the services deficit widened to $34.52 billion from $29.43 billion. By region, Korea’s current account surplus with the United States remained the largest at $111.42 billion, but was down from a record $116.97 billion in 2024. It marked the first annual decline since 2019. The goods surplus with the United States increased to $111.98 billion from $109.22 billion a year earlier. Exports to the United States also rose to $185.22 billion from $182.57 billion, as stronger shipments of semiconductors, smartphones and other information technology products offset declines in goods subject to U.S. tariffs. Korea’s services deficit with the United States widened to $14.62 billion from $8.88 billion, mainly as payments for intellectual property rights increased, including trademark fees paid to overseas headquarters of global companies and industrial property fees paid by Korean firms. The primary income surplus with the United States also narrowed to $16.05 billion from $18.15 billion, as earnings at overseas affiliates declined and some domestic companies paid large dividends to their overseas headquarters. Korea’s current account deficits with China and Japan widened. The deficit with China increased to $25.32 billion from $23.45 billion, as the goods deficit widened on weaker exports of steel products and chemicals. The deficit with Japan widened to $20.30 billion from $17.97 billion, as exports of petroleum products fell, imports of semiconductor manufacturing equipment rose and travel payments by Koreans visiting Japan increased. In contrast, Korea’s current account surplus with the European Union rose to $24.42 billion from $22.22 billion, helped by stronger exports of semiconductors and passenger cars and a wider primary income surplus due to lower dividend payments. The surplus with Southeast Asia increased to $71.84 billion from $63.44 billion, as exports of semiconductors and related equipment rose and the services balance swung to a surplus for the first time in three years. The biggest improvement came from the Middle East, where Korea’s current account deficit narrowed to $49.75 billion from $67.96 billion. The goods deficit with the Middle East shrank sharply as lower oil prices reduced imports of crude oil, gas and other energy products. Dubai crude averaged $69.40 a barrel in 2025, down 12.8 percent from $79.60 in 2024. Korea’s current account surplus with Central and South America also increased, led by stronger exports of ships and passenger cars. In the financial account, Koreans’ overseas portfolio investment assets jumped to $140.28 billion from $66.97 billion, led by a surge in overseas equity investment. Portfolio investment in the United States more than doubled to $109.13 billion from $49.54 billion, driven by gains in U.S. technology shares. Foreign portfolio investment in Korea also expanded to $52.54 billion from $21.36 billion, as bond inflows jumped ahead of Korea’s inclusion in the World Government Bond Index. 2026-06-19 15:50:02
  • World Cup 26: Home magic as Mexico makes knockouts, Canada first win
    World Cup 26: Home magic as Mexico makes knockouts, Canada first win SEOUL, June 19 (AJP) - The second round of group matches at the 2026 FIFA World Cup began to sharpen the picture in Groups A and B on Thursday local time, or Friday in Korea. Mexico became the first of the tournament’s 48 teams to secure a place in the knockout stage, while Canada earned the first World Cup win in its history and Switzerland also surged in Group B. South Korea, meanwhile, lost 1-0 to Mexico and pushed their knockout-stage fate to the final group match against South Africa. The day began with Czechia and South Africa drawing 1-1 at Atlanta Stadium in Atlanta, Georgia, on Thursday local time, keeping the lower half of Group A open until the final round. Czechia went ahead in the fifth minute through Michal Sadilek, but their early lead did not hold. South Africa equalized in the 83rd minute when Teboho Mokoena converted a penalty. Both teams needed a response after opening defeats, but the draw left them on one point each and kept their survival hopes alive only until the final round. The result also shaped the stakes for South Korea and Mexico, as either side could secure a place in the first knockout round with a win later in the day. In Group B, Switzerland produced a strong response by beating Bosnia and Herzegovina 4-1 at Los Angeles Stadium in Inglewood, California, on Thursday local time. Johan Manzambi broke the deadlock in the 74th minute, and Ruben Vargas doubled Switzerland’s lead in the 84th minute. Manzambi scored again in the 90th minute to make it 3-0, before Bosnia and Herzegovina pulled one back through Ermin Mahmic in stoppage time. Switzerland then completed the scoring with a late penalty from Granit Xhaka. The result lifted Switzerland to four points after their opening draw with Qatar, while Bosnia and Herzegovina, who had drawn Canada, were left under pressure before the final round. Canada then made history on home soil, earning the country’s first World Cup victory with a 6-0 rout of Qatar at BC Place Vancouver in Vancouver, Canada, on Thursday local time. Cyle Larin opened the scoring in the 16th minute, before Jonathan David struck in the 29th minute and again in first-half stoppage time to give Canada a 3-0 halftime lead. Nathan Saliba added the fourth in the 64th minute, and Qatar’s Mohamed Manai scored an own goal in the 75th minute. David completed his hat trick in stoppage time to finish the rout. Qatar were reduced to nine men after Homam Ahmed was sent off in the 33rd minute and Assim Madibo was shown a red card early in the second half, leaving Canada in full control. The landmark win moved Canada to four points, level with Switzerland, but with a major goal-difference advantage after their opening draw against Bosnia and Herzegovina. Qatar, by contrast, saw their hopes of advancing sharply reduced after following their draw with Switzerland with a heavy loss to Canada. Groups A and B now head into the final round with qualification, top spot and survival all still in play. In Group A, Mexico will face Czechia with their place in the knockout stage already secured, while South Korea will meet South Africa with second place on the line. In Group B, Canada and Switzerland will meet in a match likely to decide the group winner, while Bosnia and Herzegovina and Qatar will play with their remaining hopes of advancing at stake. 2026-06-19 15:10:55