Journalist

Kim Yeon-jae
  • Koreas Oct job data flags persistent weakness in youth employment, record idled MZ
    Korea's Oct job data flags persistent weakness in youth employment, record idled MZ SEOUL, November 12 (AJP) - South Korea’s headline job figures for October extended their steady growth but also underscored persistent cracks in youth hiring and a record number of economically idled people in their 30s — a troubling sign for a country already strained by a fast-aging population and chronically low birth rate. According to data released Wednesday by the Ministry of Data and Statistics, the number of employed people added 193,000 from the same month a year ago to reach 29.04 million in October. Employment among those aged 40 to 49 saw the most notable improvement, with the employment rate rising 0.9 percentage point to 80.4 percent. In contrast, the rate for people aged 15 to 29 — a key barometer of youth labor conditions — fell 1 percentage point to 44.6 percent, marking the 18th straight month of decline. The slide coincides with the job slump in manufacturing, which remains critical for hiring. The overall unemployment rate stood at 2.2 percent, down 0.1 percentage point from a year earlier. But the seasonally adjusted jobless rate, regarded as a clearer gauge of underlying trends, inched up 0.1 percentage point on-year to 2.6 percent. Employment trends also diverged by gender. The rate for men slipped 0.3 percentage point to 76.4 percent, while that for women climbed 0.8 percentage point to 63.5 percent. By industry, health and social welfare services added the most positions, up 280,000. Arts, sports and leisure-related services posted the fastest growth pace, increasing 13.9 percent, or by 70,000 jobs. Service-sector activity strengthened overall, supported by government stimulus vouchers distributed to most households. Manufacturing shed 51,000 jobs, down 1.2 percent. Construction lost 123,000 positions, a 6 percent drop, while agriculture, forestry and fisheries decreased by 124,000, or 7.8 percent. By employment type, full-time jobs rose by 286,000 and temporary roles by 79,000, while day labor fell by 55,000. The economically inactive population — those outside the labor force by choice or due to discouragement — reached 16.12 million, up 38,000 from a year earlier. While inactivity due to childcare or old age declined, the number of people “idled” without a clear reason for not working — typically those who have given up looking — jumped 5.5 percent, or 135,000. People in their 30s saw the steepest increase among core working-age groups, up 7.7 percent, or 13,000, to 334,000 — the highest level on record. Idling was even more pronounced among those in their 20s, totaling 402,000, up 15,600 from a year earlier. The number of people who have given up job hunting despite wanting employment rose to 366,000, up 21,000. Active job seekers fell sharply by 38,000, or 6 percent, to 598,000. 2025-11-12 12:10:58
  • Asian stocks give up morning gains; KOSPI barely holds positive terrain
    Asian stocks give up morning gains; KOSPI barely holds positive terrain SEOUL, November 11 (AJP) - Asian markets ended a volatile Tuesday mostly lower, with Korea’s main index the lone outlier that managed to stay in positive territory despite surrendering most of its early jump. Morning gains faded as lingering doubts over the U.S. Federal Reserve’s rate path outweighed relief over progress toward ending the U.S. government shutdown. South Korea’s benchmark KOSPI rose 0.81 percent to 4,106.39 after surging nearly 3 percent earlier in the day. The index briefly slipped into negative territory around 2:20 p.m. before recovering modestly. The won weakened, with the U.S. dollar climbing to as high as 1,464.8 won amid a delayed release of the Seoul–Washington tariff-negotiation factsheet. Retail investors took profits, offloading 282 billion won ($193 million) and curbing the early rally. Institutions and foreign investors turned net buyers, picking up 222.6 billion won and 78.3 billion won, respectively. Market bellwethers Samsung Electronics and SK hynix led the gains. Samsung rose 2.88 percent to 103,500 won, while SK hynix added 2.15 percent to 619,000 won. Tariff-sensitive stocks, however, were under pressure. With the tariff-agreement factsheet still on hold, Hyundai Motor — which remains subject to the 25 percent U.S. auto tariff — slipped 0.55 percent to 269,000 won. Japan’s Nikkei 225 also reversed early gains, ending 0.14 percent lower at 50,842.93 after rising more than 0.7 percent in morning trade. Kawasaki Heavy Industries — buoyed in prior sessions by expectations tied to the Takaiichi Sanae cabinet — extended its sharp retreat, plunging 6.11 percent to 10,685 yen ($69.29). Sony, in contrast, jumped 5.51 percent to 4,520 yen after raising its fiscal-year 2025 earnings outlook by 8 percent to 1.43 trillion yen, citing strong image-sensor performance and the success of the blockbuster anime film Demon Slayer: Infinity Castle. China’s Shanghai Composite slipped 0.39 percent to 4,002.76. Advanced-equipment makers outperformed, with Beijing Worldia Diamond Tools surging 16.04 percent to 82.58 yuan ($11.6). Consumer-exposed sectors lagged amid persistent domestic weakness; Dalian Sunasia Tourism tumbled 7.17 percent to 47.11 yuan. Taiwan’s TAIEX mirrored the broader regional reversal, ending down 0.3 percent at 27,784.95 after an early rise of more than 0.4 percent. Hong Kong’s Hang Seng Index also surrendered gains, trading 0.12 percent lower at 26,618 as of 4:11 p.m. 2025-11-11 16:31:22
  • CJ CheilJedangs 3Q dips nearly 27% on cost spike related to raw materials and FX
    CJ CheilJedang's 3Q dips nearly 27% on cost spike related to raw materials and FX SEOUL, November 11 (AJP) - South Korea's food giant CJ CheilJedang on Tuesday reported double-digit fall in its third-quarter earnings as the global popularity of K-food was outweighed by money-losing bio and feed operations. According to its disclosure, its operating profit plunged 25.6 percent on year to 203 billion won on revenue of 4.5 trillion won ($3.08 billion) for the quarter ended September. Including CJ Logistics, consolidated revenue inched up 0.3 percent on year to 7.43 trillion won, while operating profit still dropped 15.9 percent to 346.5 billion won. The drag was attributed to the Bio division and the Feed & Care (livestock and animal feed) business. The Bio unit posted revenue of 979 billion won, down 8 percent on year, while operating profit tumbled 72 percent to 22 billion won. The company cited intensified competition in high-value amino acids such as tryptophan and arginine, which drove down margins and pressured overall market conditions. Feed & Care revenue fell 2 percent to 569 billion won, while operating profit slumped 63 percent to 12 billion won, weighed down by declining livestock prices in Vietnam, one of its key sourcing markets. The core food remained resilient on robust overseas demand, but its bottom line was hurt by ongoing U.S.-China trade tensions that hurt food inputs like soybeans. The unit generated revenue of 2.98 trillion won, up slightly from a year earlier, while operating profit rose 4 percent to 168.5 billion won. CJ CheilJedang said reduced holiday gift-set sales were offset by stronger sales of Global Strategy Products (GSP) such as mandu dumplings and instant rice. The company added that soaring soybean prices in North America, sharp foreign exchange fluctuations, and increased promotional spending in Europe pushed up costs, but domestic processed-food sales helped cushion profitability. Revenue rose across all major overseas markets — the Americas, Japan, China, Oceania, and Europe — with Europe, a relatively new market for the company, delivering a robust 13 percent on-year increase. In contrast, domestic revenue slipped 3 percent due to weaker Chuseok gift-set sales. CJ Logistics helped offset some of the group’s earnings weakness. The subsidiary reported revenue of 3.67 trillion won, up 3 percent on year, while operating profit rose 4 percent to 148 billion won, supported by expanding domestic parcel volumes and increased orders from third-party logistics (3PL) clients. CJ CheilJedang was trading at 227,000 won as of 9:40 a.m., down 1.3 percent, as the outlook on trade environment remains foggy. CJ CheilJedang estimated modest top-line growth but projects its operating margin to decline from 5.6 percent in the third quarter to around 3 percent due to costs related to surging soybean prices in North America. It was buoyant about expansion across Asia and Oceania and plans to keep up the European momentum by implementing region-specific strategies. 2025-11-11 10:17:27
  • Asian stocks rise across the board; KOSPI rebounds sharply
    Asian stocks rise across the board; KOSPI rebounds sharply SEOUL, November 10 (AJP) - Asian stocks rose across the board on Monday, relieved by the developments in the United States as Washington appeared to move closer to ending the longest-ever federal government shutdown. South Korea’s benchmark KOSPI led regional gains, climbing 3.02 percent to 4,073.24 as the market warmed up the government’s plan to lower the separate tax rate on dividend income from 35 percent to 25 percent. Institutional investors drove the rebound, buying a net 1.3 trillion won ($895 million). Retail investors sold 1.16 trillion won to take profits, while foreign investors, who had supported early trading, reversed course late in the session and sold a net 155 billion won. Samsung Electronics and SK hynix both finished higher, with Samsung up 2.76 percent to 100,600 won and SK hynix rising 4.48 percent to 606,000 won. Hyundai Motor added 2.46 percent to 270,500 won. Financial stocks also gained on expectations that a resolution to the U.S. shutdown could revive prospects of Federal Reserve rate cuts. KB Financial rose 4.28 percent to 129,000 won, while Shinhan Financial increased 1.81 percent to 78,800 won. Among battery makers, Samsung SDI advanced 2.94 percent to 315,000 won, while LG Energy Solution inched up 0.43 percent to 465,500 won. Transformer-related shares extended their strong run. HD Hyundai Electric climbed 4.77 percent to 857,000 won, and Hyosung Heavy Industries gained 3.02 percent to 2,254,000 won. Japan’s Nikkei 225 rose 1.33 percent to 50,946, supported by the upbeat global backdrop. Semiconductor material supplier Denka, which produces spherical silica and acetylene black, jumped 7.48 percent to 2,435.5 yen ($15.81). Automakers saw mixed trading. Honda slid 4.67 percent to 1,511 yen due to production disruptions following Nexperia’s suspension of automotive chip exports, while Nissan rose 2.11 percent to 359 yen on signs of recovering domestic vehicle sales. China’s Shanghai Composite Index edged up 0.53 percent to 4,018, and Taiwan’s TAIEX gained 0.79 percent to 27,869.91. Hong Kong’s Hang Seng Index was up 1.5 percent at 26,658 as of 4:16 p.m., led by retail stocks rather than the tech names that fueled previous rallies. Pop Mart, maker of the “Labubu” figurines, rose 8.6 percent to 222 Hong Kong dollars ($28.6). 2025-11-10 17:33:56
  • KOSPI sinks below 4,000 as U.S. tech selloff deepens; KRW nears 1,460 per USD
    KOSPI sinks below 4,000 as U.S. tech selloff deepens; KRW nears 1,460 per USD SEOUL, November 07 (AJP) - Asian stocks tumbled on Friday as a sharp overnight correction in U.S. technology shares reignited concerns about a potential “AI bubble,” sending investors toward safe-haven assets and pushing the Korean won to its weakest level in months. The won briefly touched 1,458.0 per U.S. dollar during intraday trading, pressured by simultaneous foreign selling, lingering uncertainties surrounding U.S. tariff negotiations, and a broad pullback from risk assets after the renewed tech rout on Wall Street. The dollar eased slightly to 1,457.35 won as of 4:40 p.m., up 9.65 won from the previous session, whereas it lost 0.24 yen to 153.50 yen. The Nasdaq slump was led by Tesla and Nvidia, both key customers for South Korean suppliers. Additional pressure came from renewed scrutiny of OpenAI’s financial structure, which revived questions about overheated AI valuations, while U.S. labor concerns resurfaced after data indicated 150,000 layoffs in October, clouding the broader economic outlook. Sentiment further weakened on reports that at least six of the nine U.S. Supreme Court justices expressed skepticism over the legality of the Trump administration’s reciprocal tariffs, dimming prospects for timely policy clarity and complicating expectations for near-term Federal Reserve rate cuts. South Korea’s benchmark KOSPI fell 1.81 percent to 3,953.76, slipping below the 4,000 threshold for the first time in weeks. Foreign investors sold a net 433.3 billion won ($297 million), and institutions offloaded 220 billion won, while retail investors stepped in to buy 651.3 billion won on bargain hunting. Semiconductor bellwethers retreated in tandem, with Samsung Electronics down 1.31 percent to 97,900 won and SK hynix sliding 2.19 percent to 580,000 won. EV-linked stocks tracked Tesla’s decline, with Samsung SDI tumbling 4.97 percent to 306,000 won and LG Energy Solution dropping 1.38 percent to 463,500 won. Some stocks managed to resist the broader weakness. Kakao rose 3.46 percent to 62,800 won after reporting record-high third-quarter earnings driven by advertising, platform services and music-related content revenue. Innotech, a manufacturer of reliability and environmental test equipment and a key supplier to Samsung Display and Samsung Electronics, delivered a standout KOSDAQ debut. The stock surged 300 percent from its offering price of 14,700 won to close at 58,800 won, one of the session’s few bright spots. Across the region, Japan’s Nikkei 225 lost 1.21 percent to 50,270 as technology and AI-related names weighed heavily, with semiconductor test equipment maker Advantest down 5.54 percent to 19,960 yen ($130) and SoftBank Group tumbling 6.87 percent to 1,600 yen. China’s Shanghai Composite Index slipped 0.25 percent to 3,997 after export and import data disappointed, reinforcing concerns over sluggish domestic demand. Taiwan’s TAIEX fell 0.89 percent to 27,651.41, pressured by global tech weakness, while Hong Kong’s Hang Seng Index was down 1.02 percent at 26,214 as of 4:15 p.m., with Xiaomi sliding 3 percent to HK$42.1 ($5.4) amid a broad selloff in Chinese technology stocks. 2025-11-07 16:47:58
  • Koreas Kakao posts record Q3 earnings, eyes AI-driven boost in Q4
    Korea's Kakao posts record Q3 earnings, eyes AI-driven boost in Q4 SEOUL, November 07 (AJP) - Kakao reported its strongest quarterly earnings ever in the third quarter, with operating profit surpassing 200 billion won ($138 million) for the first time since its founding and expects the rollout of ChatGPT-powered services to offer meaningful boost to the chat platform most Koreans use starting fourth quarter. According to its regulatory filing Friday, Kakao’s consolidated revenue reached 2.087 trillion won in the July–September period, up 9 percent from a year earlier. Operating profit jumped 59 percent on year and 12 percent on quarter to 208 billion won — the highest in company history. As of 11:20 a.m., shares of Kakao were trading at 62,900 won, up 3.46 percent. The platform division generated 1.06 trillion won in revenue, up 12 percent on year. Advertising led the gains with an 11 percent rise to 325 billion won. Within ads, business-message services climbed 22 percent, while display advertising returned to growth — up 0.5 percent after five consecutive quarters of decline. Platform subsidiaries also delivered solid results, with combined revenue rising 24 percent on year to 453 billion won. Kakao Pay reported record operating profit, while Kakao Mobility posted steady gains. The commerce unit underperformed, recording 209 billion won in sales — down 0.1 percent on year and 6 percent on quarter. Still, Kakao said total transaction volume increased 4 percent to 2.5 trillion won as self-purchases rose. Some sales delayed by Chuseok-related logistics will be reflected in fourth-quarter results, it added. Revenue from Kakao’s portal business, led by Daum, fell 5 percent. To improve efficiency, Kakao plans to spin off Daum into a company-in-company (CIC). The content division posted 1.03 trillion won in revenue, up 5 percent on year. The games segment remained weak, with revenue tumbling 34 percent to 154 billion won due to delayed and canceled releases — a trend the company expects to continue for at least the next six months until new titles launch. In contrast, the music business grew 20 percent to 565 billion won, driven by new album launches and concert activity. The entertainment unit booked 84 billion won in revenue, down 11 percent on year due to postponed intellectual property releases. Meanwhile, the media division surged 75 percent to 96 billion won thanks to a robust slate of new film releases. Piccoma, the Japanese distribution arm of Kakao Webtoon, generated 127 billion won in revenue, up 2 percent on year. It remained Japan’s top-grossing app in 2025, and its operating profit doubled from a year earlier. Responding to questions about user engagement, a Kakao official said: “Average daily time spent on KakaoTalk has rebounded from 24 minutes to 26 minutes after the update, meeting our initial targets.” The redesign increased both session duration and advertising efficiency, the company added. Kakao expects double-digit growth in Talk Biz ad revenue, boosted by its new services Kanana, on-device AI – and ChatGPT deployment. 2025-11-07 11:29:53
  • Asian markets rebound in tandem with Wall Street recovery
    Asian markets rebound in tandem with Wall Street recovery SEOUL, November 06 (AJP) - Asian stocks closed higher on Thursday, snapping a sharp two-day selloff as easing concerns over an AI bubble and a rebound on Wall Street lifted sentiment across the region. South Korea’s benchmark KOSPI rose 0.55 percent to 4,026.45, recovering from the “Black Wednesday” rout the previous day. Retail investors bought 885 billion won ($611 million) of shares and institutions added 832 billion won, while foreign investors sold 1.7 trillion won, reversing earlier intraday gains of more than 1.5 percent. Semiconductor leaders were mixed. SK hynix rose 2.42 percent to 593,000 won after reaching an intraday high of 607,000 won. Samsung Electronics slipped 1.19 percent to 99,400 won, falling back below the key 100,000-won threshold as foreigners offloaded more than seven million shares. AI-related stocks remained under pressure. Naver, which had surged the previous session on record quarterly earnings, fell 5.21 percent to 264,000 won on heavy profit-taking by foreign investors. Power-grid and transformer names extended recent gains. Hyosung Heavy Industries added 1.62 percent to 2,255,000 won, HD Hyundai Electric rose 0.81 percent to 875,000 won, and LS Corp. jumped 5.58 percent to 217,500 won on optimism over its electricity value-chain businesses including LS Cable and LS Electric. Japan’s Nikkei 225 gained 1.19 percent to 50,810.50, partially recovering Wednesday’s steep drop. Daikin Industries surged 7.79 percent to 19,295 yen ($125.3) after reporting stronger-than-expected earnings on robust industrial cooling demand. China’s Shanghai Composite Index advanced 0.97 percent to 4,007.76, reclaiming the 4,000 mark. Rare-earth producer Inner Mongolia Baotou Steel Union was steady at 2.7 yuan ($0.38) as momentum in the segment eased after U.S.-China trade talks. Cutting-tool maker Beijing Worldia Diamond Tools rose 10.7 percent to 56.13 yuan. Elsewhere in the region, Taiwan’s TAIEX gained 0.66 percent to 27,899.45, and Hong Kong’s Hang Seng Index climbed 2.12 percent to 26,485.90. 2025-11-06 17:56:30
  • Koreas record Jan-Sept current account flags deepening reliance on chip exports
    Korea's record Jan-Sept current account flags deepening reliance on chip exports SEOUL, November 06 (AJP) - South Korea’s thriving semiconductor business has pushed the country’s current account surplus to its largest-ever level for September, but the details point to a growing dependence on a narrow set of export engines. Preliminary Bank of Korea data show the current account logged a $13.47 billion surplus in September, lifting the cumulative black to a record $82.77 billion for the January–September period — up 23 percent from a year earlier. The goods balance contributed a surplus of $14.24 billion, supported by a 9.6 percent rise in exports to $67.2 billion. From January to September, the goods surplus totaled $85.9 billion, about $14.2 billion higher than a year age. Semiconductors and shipbuilding remained the primary drivers of growth. Chip exports surged 22.1 percent on-year to $16.79 billion, fueled by strong global demand for high-bandwidth memory (HBM) chips. SK hynix posted an operating profit of 11 trillion won ($7.7 billion) in the third quarter, while Samsung Electronics recorded 7 trillion won in chip earnings, underscoring the industry’s outsized contribution to Korea’s external balance. Ship exports also climbed 23.8 percent to $2.77 billion on robust global orders for LNG carriers and other high-value vessels. Hanwha Ocean reported a record third-quarter operating profit of 290 billion won ($200 million). Steel exports offered further support, rising 2.5 percent to $4.01 billion as signs of stabilization emerged despite continued competition from Chinese producers. Korea’s services sector remained a structural drag. The services balance posted a $3.32 billion deficit in September, widening the cumulative shortfall to $22.7 billion in the first nine months of the year — about $5 billion deeper than a year earlier. The travel account continues to make up the largest red. Inbound visitors climbed 16 percent on-year to 14 million, but revenue gains were subdued as solo and small-group travelers replaced big-budget tour groups, reducing duty-free and package-tour spending. The intellectual property (IP) account logged an $850 million deficit, compared with a $660 million shortfall a year earlier, highlighting Korea’s struggle to monetize its cultural output. A Korea Chamber of Commerce and Industry (KCCI) report found no Korean names among the world’s top 50 IP-based goods revenue earners. The United States dominated the list with 32 companies — including Netflix and The Walt Disney Company, followed by Japan – home to Sony Pictures - with seven. Even the hit K-pop–themed Netflix animation “K-pop Demon Hunters” is based on IP owned by Netflix, which acquired the rights from Japan’s Sony Pictures — a reminder that Korea’s expanding cultural footprint often rests on foreign-controlled intellectual property. 2025-11-06 17:54:56
  • Asian stocks under broad foreign selloff, KOSPI and Nikkei biggest casualties
    Asian stocks under broad foreign selloff, KOSPI and Nikkei biggest casualties SEOUL, November 05 (AJP) - Asian stocks tumbled across the board on Wednesday, with recent winners in Seoul and Tokyo turning into the day’s biggest losers. South Korea’s benchmark KOSPI closed down 2.85 percent at 4,004.42, barely holding the psychologically important 4,000 level. The index had plunged more than 5 percent in early trading, triggering a sidecar halt. The selloff followed mounting fears of a potential U.S. market bubble after steep losses in Palantir Technologies and other major AI-linked stocks. Sentiment deteriorated further as the U.S. Supreme Court began hearings on the legality of the Trump administration’s reciprocal tariff structure, unsettling investors in Korea and Japan, both heavily exposed to U.S. trade flows. Warnings from U.S. asset manager Scion Asset Management on Tuesday that key AI-related stocks were “overheated” reinforced concerns. The caution echoed remarks in recent days from Goldman Sachs CEO David Solomon and Morgan Stanley CEO Ted Pick, which helped spark a sharp correction in U.S. equities. Foreign investors offloaded a net 2.51 trillion won ($1.72 billion) in Korean shares, driving the downturn, while retail investors bought 2.56 trillion won to absorb the selling. Index bellwethers Samsung Electronics and SK hynix led the slump. Samsung fell 4.1 percent to 100,600 won after briefly dipping to 96,700 won before trimming losses. SK hynix also slid sharply intraday, dropping below 550,000 won before recovering part of the decline to finish 1.19 percent lower at 579,000 won. Amid the market turmoil, Naver defied the downtrend. The tech giant jumped 4.31 percent to 278,500 won after reporting record third-quarter earnings earlier in the day on the back of expanded AI integration, standing in sharp contrast to the broader AI-driven rout across global markets. The KOSDAQ also slid, losing 2.66 percent to 901.89 after triggering a mid-day sidecar before rebounding above the 900 level. Japan’s Nikkei 225 dropped 2.5 percent to 50,212.27. SoftBank Group plunged 10 percent to 22,640 yen ($147.4), while Hitachi Construction Machinery nosedived 12.17 percent to 4,382 yen after Hitachi Ltd. said it would divest its stake, ending the unit’s subsidiary status. Elsewhere in Asia, Taiwan’s TAIEX shed 1.42 percent to 27,717.06, pressured by the same U.S.-led “AI bubble” fears. In contrast, Chinese and Hong Kong stocks held up better than their regional peers. The Shanghai Composite Index rose 0.23 percent to 3,969.25, while the Hong Kong Hang Seng Index slipped just 0.36 percent to 25,860 as of 4:30 p.m., marking the smallest decline among major Asian markets. 2025-11-05 16:54:41
  • KRW falls to weakest in 7 mo as forex data implies limited room for Seoul to defend currency
    KRW falls to weakest in 7 mo as forex data implies limited room for Seoul to defend currency SEOUL, November 05 (AJP) - The South Korean won’s recovery — fueled by the Korea-U.S. trade deal during APEC week and a bullish stock market — proved short-lived as the U.S. dollar climbed to a seven-month high amid renewed concerns over frothy AI-related stocks. The dollar hit 1,446.3 won on Wednesday, its strongest level since April, as foreign investors dumped more than 2 trillion won worth of KOSPI shares as of 2:00 p.m., dragging the benchmark index down more than 3 percent. While the heavy foreign profit-taking reflects the KOSPI’s staggering 70 percent gain so far this year, the upward pressure on the dollar-won exchange rate is largely driven by external factors — leaving Seoul with limited policy options. According to central bank data released Wednesday, South Korea’s foreign reserves stood at $429 billion at the end of October, up $6.8 billion from the previous month. It marked the sixth straight monthly increase and the highest level in 21 months, occurring despite verbal interventions aimed at curbing excessive bias toward a weaker won. The rise in reserves suggests authorities have refrained from deploying significant firepower to defend the currency. Foreign currency deposits increased $7.4 billion to $25.9 billion, supported by robust export performance. Exports in October climbed 3.6 percent year-on-year to a record $59.6 billion, with the cumulative trade surplus already surpassing last year’s total — a factor likely boosting foreign-currency deposits. Improved investment returns at domestic pension funds and financial institutions also contributed. The National Pension Service’s Investment Management Division reported an 8.6 percent return on its overseas equity portfolio — including major U.S. stock market holdings — from January through August. Globally, South Korea moved up one notch to ninth place in foreign-reserve rankings, overtaking Hong Kong, whose holdings fell by about $2.5 billion in October. Despite strong exports and a buoyant stock market, the won has remained weak after briefly strengthening to 1,430 per dollar following Seoul and Washington’s final agreement on payment terms for Korea’s $350 billion investment package last week. The dollar, which averaged 1,453.39 won in January, had eased to 1,364.66 won in June before rebounding to a monthly average of 1,431.17 won as of Nov. 4. According to Park Sang-hyun, researcher at iM Securities, the pressure largely reflects a renewed risk-off mood. “The chance of another rate cut at the January 2026 FOMC meeting is diminishing,” Park said. “Concerns over the financial instability of U.S. regional banks and the prolonged federal government shutdown have restricted liquidity flows, pushing the dollar higher.” Park added that the U.S. Supreme Court’s review of the cross-tariff legality case has further supported the dollar. The court began hearings Wednesday on a lawsuit filed by Democratic-led states and small-business associations challenging the legality of the mutual tariff framework. A ruling against the policy could invalidate the bilateral tariff agreement, dimming prospects for future rate cuts and bolstering the dollar’s strength. The launch of Prime Minister Takaichi Sanae’s new cabinet in Japan — which reaffirmed a policy stance favoring a weaker yen — also weighed on the won-yen pair. Since South Korea and Japan compete directly in key export markets and product categories, Seoul has little choice but to partially align its monetary stance with Tokyo’s to maintain competitiveness. 2025-11-05 14:47:42