Journalist
Kim Yeon-jae, Lee Jung-woo
duswogmlwo77@ajupress.com
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Roller-coaster KOSPI turns into a playground for high-frequency traders SEOUL, April 21 (AJP) — South Korea’s stock market is back on a roller-coaster ride, with sharp swings raising concerns that high-frequency trading (HFT) and weak oversight are amplifying volatility and feeding unfair practices. The KOSPI rally, which had pushed past the 6,000 level, was abruptly halted by the late-February outbreak of war, sending the market into a steep downturn. The index has since rebounded and is again heading toward new highs, underscoring the intensity of recent market swings. Such volatility has drawn in day traders and algorithm-driven players. According to data submitted to the office of Democratic Party lawmaker Kim Seung-won by the financial watchdog earlier this month, more than 2,200 high-frequency trading accounts were registered with the Korea Exchange in February alone. The transaction value from these accounts reached nearly 4,000 trillion won ($2.72 trillion), accounting for approximately 60 percent of total trading value that month. High-frequency trading refers to algorithm-based transactions executed in seconds or milliseconds. While it is credited with providing market liquidity, it is also blamed for amplifying volatility. “Electronic trading platforms can facilitate the growth of HFT firms, with a potential negative impact on the resilience of liquidity,” the International Monetary Fund noted in a recent report. The proportion of HFT in Korea is not unusually high compared with global peers. In the United States, such trading accounts for up to 70 percent of activity on Nasdaq, while Japan’s Nikkei 225 shows a similar level to Korea at 50 to 60 percent. Major European markets also see HFT volumes reaching up to 50 percent. The key difference lies in oversight. In the United States, the Securities and Exchange Commission and Financial Industry Regulatory Authority directly supervise HFT activity. Japan’s Financial Services Agency requires high-speed traders to register directly, a system also adopted in major European markets. In Korea, supervisory authority rests with the exchange itself. Because the Korea Exchange also profits from transaction fees generated by these accounts, critics argue the system is akin to “leaving the fish with the cat.” The Financial Services Commission and Financial Supervisory Service have also faced criticism, as specific regulations governing HFT remain lacking and investigations typically begin only after incidents occur. Meanwhile, suspected cases of unfair trading are on the rise. According to data provided to Rep. Kim by the exchange on Sunday, major domestic brokerage firms issued more than 12,000 regulatory actions against users from January to March this year — the highest level since the fourth quarter of 2021, when excess liquidity fueled a market-wide surge. Among these, 1,299 cases resulted in the most severe sanction — “refusal of entrustment,” or a suspension of trading. On average, about 20 accounts were frozen daily. Most cases involved “spoofing” — placing large orders with no intent to execute — or “wash sales,” in which simultaneous buying and selling creates a false impression of market activity. “It is true that unfair trading tends to be concentrated early in the year when capital flows in,” an official from the Financial Supervisory Service said. “However, the scale and frequency of these cases are unprecedented.” The Korean market has already exhibited significantly higher volatility than other major economies. Following the blockade of the Strait of Hormuz, the Korean stock market plunged about 19 percent over March 3–4, compared with declines of only 3 to 4 percent in Japan’s Nikkei and Taiwan’s TAIEX during the same period. The subsequent recovery was equally sharp. From March 4 to April 20, the KOSPI surged more than 25 percent, while the Nikkei rose about 9 percent. Reflecting this trend, the KOSPI Volatility Index stood at 50.32 as of April 20, more than double its level a year earlier. At the height of the sell-off on March 4, the index spiked to 80. As of Tuesday, the KOSPI closed at a record high of 6,388.47, up 2.72 percent. While the rally has outpaced gains in the Nikkei (0.9 percent) and TAIEX (1.7 percent), the market remains vulnerable to sharper declines in future downturns. 2026-04-21 17:06:53 -
New Bank of Korea chief stresses "discretion" as oil shock weighs prices and growth SEOUL, April 21 (AJP) —New Bank of Korea Governor Shin Hyun-song underlined “discretion” and “flexibility” in steering monetary policy as Middle East-driven supply disruptions stoke inflation while weighing on growth. “Upward pressure on prices and downward pressure on the economy have simultaneously increased due to rising international oil prices following the Middle East conflict,” Shin said in his inauguration address Tuesday, as he began his four-year term. He pledged to enhance the “efficacy” of monetary policy through a reassessment of policy firepower and closer coordination with the government where needed, while also vowing to strengthen communication with markets. “We are going through a seismic transitional phase, with an AI-driven technological shift compounded by geopolitical conflicts,” he said. Domestically, Shin pointed to structural headwinds including demographic decline, widening income disparities, and growth constrained by housing instability and elevated household debt. “In today’s financial markets, the boundaries between banking and non-banking, as well as domestic and international sectors, are rapidly blurring,” he said. “It has become difficult to fully identify and respond to risks using existing frameworks alone.” He called for stronger early-warning systems by making more active use of market price indicators and improving visibility into the non-banking sector — a move seen as targeting regulatory arbitrage, with card loans approaching 43 trillion won ($29.2 billion). On foreign exchange policy, Shin signaled continuity. “Together with the government, we will promote 24-hour foreign exchange market operations and establish an offshore won settlement system,” he said, echoing plans set out by predecessor Rhee Chang-yong, who had pledged to introduce round-the-clock trading by July. On digital finance, Shin said the central bank would expand the use of a central bank digital currency (CBDC). “We will enhance the utility of CBDCs and deposit tokens through the second phase of ‘Project Hangang,’” he said, adding that international cooperation would be key to raising the won’s status in the evolving digital payments ecosystem. Shin also reaffirmed the importance of structural reform — a core theme under Rhee — calling it “an important part of monetary policy operations.” He takes office with the won still under pressure, as the dollar hovers near levels last seen after the global financial crisis. The currency was trading at 1,472.4 per dollar, retreating from around 1,520 won before the two-week truce between the United States and Iran. 2026-04-21 11:03:46 -
BOK's new chief to start work Tues after last-minute confirmation SEOUL, April 20 (AJP) — South Korea’s incoming central bank chief Shin Hyun-song is set to begin his term Tuesday under a cloud of unresolved personal controversies, after the National Assembly approved his confirmation report Monday following two earlier rejections. Shin marks the first nominee for the Bank of Korea governorship to fail to secure initial approval from the parliamentary Strategy and Finance Committee since confirmation hearings became mandatory in 2014. The former economist at the Bank for International Settlements faced intense scrutiny during his April 15 hearing over a range of personal matters, including family wealth, overseas asset holdings and alleged irregularities involving his children. Lawmakers raised concerns about his family’s substantial foreign-currency assets, an allegedly irregular transfer to Korea University, and questions surrounding his daughter’s failure to report her loss of Korean nationality, along with allegations of maintaining a so-called “paper residence.” “Approximately 93 percent of the nominee’s 4.6 billion won ($3.1 million) in financial assets are held in foreign currencies,” Rep. Park Dae-chul of the opposition People Power Party said, linking the issue to broader pressure on the Korean won from rising overseas investment. Rep. Chun Ha-ram of the Reform Party also pressed Shin over allegations that his daughter applied for residency using a canceled resident registration number after renouncing her Korean nationality. The committee had twice rejected Shin’s confirmation report on April 15 and April 17, citing delays in the submission of supporting documents. While the president can appoint a central bank governor without parliamentary consent, securing the committee’s endorsement is widely seen as critical to establishing political legitimacy at the outset of the term. By contrast, former Governor Lee Ju-yeol — the first to undergo the confirmation process — faced little resistance, with his reappointment smoothly approved in 2018. Shin’s immediate predecessor, Rhee Chang-yong, encountered some criticism over what was described as a “midnight appointment” and his long tenure abroad, but his confirmation proceeded without major controversy. President Lee Jae Myung is expected to electronically sign off Shin’s appointment during his state visit to India during the day to avoid a leadership vacuum at the central bank, as Rhee’s term ends Monday. 2026-04-20 17:09:28 -
BOK's Rhee swan song: central bank must act as think tank beyond rate tools SEOUL, April 20 (AJP) — Bank of Korea Governor (BOK) Rhee Chang-yong emphasized the central bank’s dual role as a think tank in his swan-song remarks before retiring Monday, even as critics argued the Bank of Korea strayed into non-monetary areas such as housing and education under his watch. In his final speech before stepping down, Rhee reflected on the limits of traditional policy tools after navigating multiple crises over the past four years. “Managing various crises over the past four years, I have realized once again that it is becoming increasingly difficult to achieve stability and growth through monetary and fiscal policies alone,” he said, stressing that deeper socioeconomic reforms are essential for policy effectiveness. He pointed in particular to changes in the foreign exchange market, warning that its structure has shifted in ways that constrain conventional responses. Rhee said the market, once dominated by foreign capital flows, is now increasingly driven by domestic actors such as corporations, individuals and the National Pension Service. “We have entered an era where domestic overseas investment fluctuates based on various factors, including the labor market, tax policies, pension systems and geopolitical risks, rather than just interest rate differentials,” he said. Under such conditions, relying solely on market intervention or interest rate adjustments to manage exchange rates could produce unintended side effects, he warned. Rhee also addressed structural challenges including low birth rates and sluggish growth, making clear that short-term policy measures would be insufficient. Labor and education reforms, he said, remain the only viable medium- to long-term solutions. He reiterated his long-held view that the central bank should expand its role beyond traditional monetary policy. “My belief that we should look beyond the boundaries of monetary and financial policy to become the nation’s top think tank remains the same,” Rhee said, urging continued research into structural issues such as housing, youth employment and elderly poverty. Reflecting on his tenure, Rhee described it as a period of “constantly having to exceed expected boundaries,” shaped by successive global and domestic shocks. Following the inflation surge triggered by the Russia-Ukraine War shortly after he took office, the central bank raised its benchmark rate to 3.5 percent, including two “big step” hikes. Those tightening measures were followed by a series of disruptions, including instability in real estate finance, the collapse of Silicon Valley Bank, rising household debt, surging housing prices in the Seoul metropolitan area and exchange rate volatility driven by Middle East tensions. Rhee cited inflation control as a key achievement. Consumer prices, which peaked at 6.3 percent in July 2022, eased to the high-2 percent range in late 2023 and have remained in the low-to-mid 2 percent range since 2024. He also pointed to the first decline in the household debt-to-GDP ratio in two decades as a meaningful milestone. The ratio, which peaked at 99.2 percent in the third quarter of 2021, has since fallen to the high-80 percent range. Additional achievements included the introduction of Korean-style forward guidance and the publication of more than 20 structural reform reports aimed at improving policy communication. Since 2022, the central bank has regularly issued “BOK Issue Notes” addressing non-monetary topics such as demographic shifts and changes in the global trade order. Internationally, Rhee was appointed as the first head of a non-reserve currency central bank to chair the Committee on the Global Financial System at the Bank for International Settlements. Despite these gains, Rhee acknowledged that financial and foreign exchange markets remain unsettled. The Korean won weakened about 9 percent from 1,367 per dollar in June 2025 to around 1,490 in April 2026, a sharper decline than other major Asian currencies such as the Japanese yen and Chinese yuan, which fell by only 1 to 2 percent over the same period. “It weighs heavily on my heart to leave while the foreign exchange and financial markets have not sufficiently stabilized due to the ongoing conflict in the Middle East,” Rhee said, expressing hope that stability would eventually return based on South Korea’s experience in managing past crises. Since taking office on April 21, 2022, Rhee has been credited with managing crises through timely interest rate adjustments in the early stage of his tenure, and expanding the central bank’s scope through the publication of issue notes. However, he also faces criticism for failing to take bolder monetary action against household debt, - holding benchmark rate still at 2.5 percent for 7 consecutive sessions - which surpassed 1,800 trillion won ($1.21 trillion), and the weakening won toward the end of his term. Shin Hyun-song, former head of the monetary and economic department at the BIS, is expected to succeed Rhee from Tuesday. Shin is clearly distinguished from Rhee by his track record of hawkish stances including preemptive interest rate hikes and balance sheet reductions during past crises such as the U.S. financial crisis and the Russia-Ukraine war, as well as his consistent emphasis on the intrinsic role of central banks. The National Assembly has yet to adopt a confirmation report due to ongoing controversies surrounding Shin’s foreign assets and alleged "paper residence." Whether President Lee Jae Myung will move forward with the appointment later today remains a key focus of attention. The won opened at 1,479.5 per dollar in the Seoul foreign exchange market, up 4 won from the previous session. 2026-04-20 11:53:31 -
S. Korea, U.S. finance chiefs share concerns over won volatility Seoul, April 19 (AJP) —South Korean and U.S. finance chiefs agreed a volatile exchange rate is undesirable for the interests of the two countries, the Ministry of Finance and Economy said in a statement Monday. Finance Minister Koo Yun-cheol met with U.S. Treasury Secretary Scott Bessent during the G20 Finance Ministers and Central Bank Governors Meeting in Washington, D.C., last Friday to discuss key bilateral issues including the action plan for Seoul's pledge of investments in the U.S., foreign exchange rate, and supply chain disruptions from the Gulf conflict. The primary agenda was the high volatility of the Korean won. "Both ministers agreed that excessive volatility in the Korean won is not desirable, and agreed to continue consultations on foreign exchange market developments," the statement said. Last month, the average daily gap between the appropriate non-deliverable forward (NDF) rate—based on the weekly closing price of the won at 3:30 p.m.—and the actual final quote for one-month NDFs in New York was tallied at 12.2 won. This marks the first time since 2020 that the gap between the appropriate quote and the actual exchange rate has exceeded 10 won. "We shared the view that the volatility of the Korean won has been particularly high and decided to maintain a cooperative relationship to stabilize foreign exchange market trends," Koo separately wrote on his X page, adding that the two leaders also discussed the impact of the U.S.-Israel and Iran conflict on the Korean economy. Another key issue was the ongoing discussion regarding investment in the U.S. following tariff negotiations. South Korea plans to invest a total of $350 billion in the U.S. market over the next 10 years, including a $150 billion investment in the shipbuilding industry. The U.S. had once rolled back tariffs on Korean automobiles from 15 percent to 25 percent, citing delays in legislation by the Korean National Assembly. In response, the National Assembly passed the Special Act on Investment in the U.S. on March 12. Koo explained the Korean government's efforts to implement memorandums of understanding regarding bilateral investments, including the Special Act, to which Bessent responded positively. In the Seoul foreign exchange market on Monday, the won opened at 1,479.5 per dollar. 2026-04-20 10:50:50 -
Seoul flags rising downside risks as Middle East war drags on SEOUL, April 17 (AJP) -South Korea’s government on Friday highlighted increased "downside risks" for the economy as the prolonged Middle East conflict fuels inflationary expectation and dampens domestic sentiment. In its monthly “Green Book” report for April, the Ministry of Economy and Finance said “downside risks to the economy are increasing” due to heightened geopolitical uncertainty stemming from the war — toned up from last month’s milder phrasing of “concerns over rising downside risks.” The shift reflects growing concern that the impact of the conflict is beginning to filter through the broader economy. “Exports, led by semiconductors, have remained strong and domestic demand had been on a recovery trend, but the Middle East war is weighing on consumer and business sentiment, while higher global oil prices are adding to inflation and the burden on livelihoods,” the ministry said. Recent data points show early signs of strain. Consumer prices rose 2.2 percent in March from a year earlier, accelerating from 2.0 percent the previous month, driven largely by a sharp rebound in energy costs. Petroleum prices surged 9.9 percent on-year, reversing a decline in February as global oil prices spiked amid the conflict. Sentiment indicators also weakened. The consumer sentiment index fell 5.1 points to 107.0 in March, while business sentiment readings edged lower, pointing to growing caution among households and firms. Consumption data painted a mixed picture. Card spending at discount stores dropped sharply, while growth in department store sales slowed, suggesting softening discretionary demand. Still, overall card spending rose at the fastest pace since September, and domestic car sales rebounded, indicating that a broader consumption downturn has yet to take hold. “We see pockets of weakness across sectors, but it is difficult to conclude that overall consumption has turned down,” a ministry official said. External demand continues to provide a key buffer. Exports jumped 49.2 percent in March from a year earlier, with semiconductors and computers leading gains, underscoring the resilience of Korea’s tech-driven trade sector despite external shocks. The labor market also remained relatively stable, with employment rising by 206,000 in March, marking a second consecutive month of gains above 200,000. Looking ahead, the ministry warned that global conditions remain fragile. “Volatility in international financial markets and energy prices has increased due to the Middle East conflict and tariff measures by major economies, raising concerns over slower trade and growth,” it said. The government said it will maintain an emergency economic response system, closely monitor developments and push for swift execution of supplementary budget measures to cushion the fallout. 2026-04-17 14:05:35 -
After Gulf war, Section 301 looms as next hit to Korean economy SEOUL, April 16 (AJP) — As South Korean markets price in a winding down of the Middle East conflict, another front is quietly opening — this time in trade. With the KOSPI hitting fresh highs on easing war concerns, attention is shifting to Washington, where a new round of investigations under Section 301 of the Trade Act is gathering pace, raising the risk of fresh tariffs on key trading partners, including South Korea. Seoul, alongside Japan and China, is among 16 countries targeted in the probe announced March 11 by the Office of the United States Trade Representative. Those same countries have also been repeatedly singled out by U.S. President Donald Trump for offering limited support during the Gulf conflict despite their heavy reliance on the Strait of Hormuz for energy imports — a linkage that is increasingly shaping Washington’s trade posture. The Trump administration is turning to Section 301 as a workaround after a Feb. 20 Supreme Court ruling struck down its reciprocal tariff framework, effectively reviving one of its most powerful trade tools. From war shock to trade pressure The potential fallout of the Section 301 investigation was initially overshadowed by the Gulf crisis. Following the Feb. 28 U.S. strike on Iran and Tehran’s subsequent blockade of the Strait of Hormuz, oil markets were jolted. Dubai crude surged nearly 150 percent, while disruptions to supply chains drove up freight rates and fuel surcharges, feeding directly into the real economy. With the immediate energy shock beginning to ease, analysts say Washington is likely to revert to trade pressure. “Tariffs could be back at previous levels by early July,” U.S. Treasury Secretary Scott Bessent said at a Wall Street Journal event this week, citing ongoing Section 301 investigations into what the U.S. deems “unfair” trade practices, including excess profits and oversupply. South Korea’s persistent trade surplus leaves it structurally exposed. In autos, Hyundai Motor Group captured a record 11.3 percent share of the U.S. market in 2025, ranking fourth behind General Motors, Toyota and Ford. The Trump administration had previously imposed a 25 percent tariff on automobiles, later reduced to 15 percent after Seoul pledged large-scale investment under the “Special Act on Investment in the U.S.” Even so, Hyundai’s first-quarter operating profit fell 32 percent on-year to 2.46 trillion won, reflecting the end of a near tariff-free environment. Semiconductors present another point of friction. U.S. tech firms, particularly in artificial intelligence, rely heavily on chips from Samsung Electronics and SK hynix, while U.S.-based Micron Technology has lagged behind in high-value segments such as high-bandwidth memory. Non-tariff barriers remain a persistent source of tension. For years, Seoul restricted exports of high-precision 1:5,000-scale maps to foreign firms, citing national security concerns and the need to protect domestic platforms such as Naver and Kakao. Conditional approval for exports to Google was only granted in late February. Washington has also flagged issues such as network usage fees as potential barriers. Section 301 as a “permanent tool” Economists say the likelihood of tariffs under Section 301 is high. “The U.S. has been maintaining a temporary 15 percent tariff under Section 122, but that expires in July,” said Kang In-soo, an economics professor at Sookmyung Women’s University. “Raising Section 301 suggests they intend to impose tariffs in some form even after that.” Section 122 allows tariffs of up to 15 percent for 150 days. By contrast, Section 301 offers a more durable legal basis. “Unlike the IEEPA framework used previously, Section 301 is a permanent tool with stronger legal footing,” said Jang Sang-sik of the Korea International Trade Association, reinforcing expectations of a more sustained tariff regime. The Korea Institute for International Economic Policy also warned of broad-based damage, noting the lack of precedent for applying Section 301 measures to a close U.S. ally. Some analysts see geopolitical factors compounding the risk. Seoul remained cautious when Washington called for naval support to secure tanker routes through the Strait of Hormuz, saying no formal request had been received. At the same time, South Korea engaged in a series of diplomatic exchanges with countries such as Brazil and France, while extending $2.5 million in humanitarian aid to Iran and Lebanon. The Center for Strategic and International Studies (CSIS) recently described Section 301 as a “strategic tool,” suggesting it could be used as a form of calibrated retaliation. Still, others caution against over-interpreting the linkage. “Section 301 is grounded in claims of unfair trade practices,” Kang said. “It is unlikely that the U.S. would formally tie tariff measures to Korea’s diplomatic positioning.” For South Korea, the concern is less about whether pressure will come than when. With the won already under strain from prolonged energy shocks and trading above 1,400 per dollar for more than six months, additional tariffs could further weaken the currency and fuel inflation. “If large-scale outward investment continues, it could erode Korea’s capacity to stabilize the exchange rate,” Kang said. As the Gulf conflict moves toward de-escalation, markets may be looking past the next risk. But for Korea’s export-driven economy, the end of one crisis may simply mark the beginning of another. 2026-04-16 17:52:05 -
Foreigners dump over $30 bn KOSPI shares and turn net bond sellers in March SEOUL, April 16 (AJP) -Foreign investors staged a record monthly sell-off in South Korean equities in March amid risk aversion and concerns over the energy-dependent economy from the outbreak of the conflicts in the Gulf and de-facto blockade of the Strait of Hormuz. According to the Financial Supervisory Service on Thursday, foreigners net sold 43.5 trillion won ($31.8 billion) worth of locally listed shares last month, more than doubling from February’s 19.6 trillion won outflow. The exodus was concentrated in the benchmark KOSPI which was making record-breaking rally until the war outbreak. Foreign nationals 43.9 trillion won on the main bourse, while posting a modest 384 billion won net buy in the KOSDAQ. By end-March, foreign holdings of Korean equities fell to 1,576.2 trillion won, down 449.4 trillion won from a month earlier, with their ownership share slipping to 30.7 percent of total market capitalization. The sell-off was broad-based across regions. Europe led the outflows with 26.4 trillion won, followed by the Americas at 9.8 trillion won and Asia at 5.6 trillion won, while the Middle East was the only region to post a net purchase. At the country level, the United Kingdom and the United States accounted for the bulk of selling, while Qatar and the Cayman Islands were among the few net buyers. In fixed income, foreign investors turned net sellers for the first time in five months, withdrawing 10.9 trillion won overall. They purchased 5.4 trillion won worth of bonds but redeemed 16.4 trillion won at maturity, resulting in a net outflow, fanning the bond yields to rise to levels of the rapid tightening cycle in the U.S. Foreign holdings of listed bonds stood at 323.8 trillion won, or 11.6 percent of outstanding balances, at end-March. 2026-04-16 07:50:25 -
BOK nominee Shin faces intense scrutiny over foreign assets, family issues SEOUL, April 15 (AJP) — The nominee to head the Bank of Korea (BOK) came under intense scrutiny Wednesday as opposition lawmakers questioned his foreign-denominated wealth and family-related issues, raising concerns over potential conflicts of interest. Lawmakers on the National Assembly’s Finance and Economy Committee focused on nominee Shin Hyun-song’s asset structure, noting that the central bank chief is tasked with stabilizing the Korean won and the housing market. According to his disclosure, more than 90 percent of Shin’s 4.6 billion won ($3.1 million) in financial assets are held in foreign currencies, including U.S. dollars, British pounds and Swiss francs. Opposition lawmakers argued that such a portfolio could allow him to benefit from a weaker won, minimizing losses during depreciation while gaining when major currencies strengthen. “Approximately 93 percent of the nominee’s 4.6 billion won in financial assets are in foreign currencies,” said Rep. Park Dae-chul of the People Power Party, questioning whether it is appropriate to appoint a central bank governor whose assets could gain from currency weakness. “People are saying it is like letting a cat guard the fish,” added Rep. Park Sung-hoon. The scrutiny comes as the Korean won remains under pressure. The average exchange rate for April stood at 1,493.42 per dollar, among the highest on record, although it showed signs of stabilizing at 1,474.2 on Wednesday. The Bank of Korea has also spent more than $7 billion in foreign exchange reserves since late last year, with the country’s global ranking in reserves slipping from ninth to 12th as of February. Shin, previously described as a “pragmatic hawk” for advocating preemptive tightening following Russia’s 2022 invasion of Ukraine, has recently assessed the current exchange rate and reserve levels as stable—adding to concerns over consistency and potential conflicts. Lawmakers also raised questions over his real estate holdings. Shin owns an apartment in Seoul’s Gangnam district and a studio in Jongno, with a combined value exceeding 3.3 billion won. He reportedly allowed his mother to continue living rent-free in the Gangnam apartment after purchasing it from her, prompting allegations of possible tax avoidance through family transactions. The issue has gained further traction amid President Lee Jae Myung’s remarks criticizing multi-homeownership among public officials. Additional controversy surrounds Shin’s academic transfer during military service and his daughter’s citizenship status. Lawmakers alleged that his daughter, who acquired British citizenship, continued to use a Korean passport for decades without proper reporting. “Using a Korean passport for convenience while bypassing residency and immigration laws is ‘cherry-picking’ and deceptive,” said Rep. Chun Ha-ram of the Reform Party. Shin has yet to submit related documents addressing these concerns. Civic groups and experts also weighed in, arguing that a portfolio benefiting from currency depreciation represents a textbook conflict of interest for a central bank chief. “It is natural for the public to distrust a nominee whose portfolio benefits as the real economy falters,” an opposition official said. 2026-04-15 18:01:17 -
Korea's import-export prices surge to Asian crisis-era levels on Gulf shock SEOUL, April 15 (AJP) - South Korea's import prices jumped at the steepest pace in nearly three decades as the outbreak of a full-blown war in the Gulf triggered a sharp surge in energy prices and the U.S. dollar against the Korean won, but trade terms remained robust so far as export prices rose at a similar pace on strong global demand for refined fuels and memory chips. According to preliminary export and import price data for March released by the Bank of Korea (BOK) on Wednesday, import prices in won terms soared 16.1 percent from the previous month, the steepest increase since a 17.8 percent jump in January 1998. From a year earlier, they rose 18.4 percent. The primary catalyst for this surge was international oil prices. Dubai crude jumped 87.9 percent, rising from $68.40 per barrel in February to $128.52 in March, driven by actual supply disruptions amid escalating military tensions between the United States and Iran, combined with fears over a blockade of the Strait of Hormuz. During the same period, Brent crude and West Texas Intermediate (WTI) also breached the $100 and $90 levels, respectively. The dollar rose 2.6 percent from the February average of 1,449.32 won to 1,486.64 won. That translated into surges of 88.5 percent quarter on quarter and 76.9 percent year on year in crude import prices — levels not seen since records began in won terms in 1985. The gain of 83.8 percent on contract exchange rate term marked the biggest increase since a 98.3 percent jump in January 1974 during the first oil crisis. Jet fuel import prices soared 67.1 percent quarter-on-quarter and 81.8 percent year-on-year. Import prices of raw materials jumped 40.2 percent from the previous month and 40.0 percent from a year earlier. Coal and petroleum product import prices rose 37.4 percent month-on-month and 31.3 percent year-on-year. Export prices also rose 16.3 percent from the previous month in March, the biggest increase since 23.2 percent in 1998. Prices for coal and petroleum products surged 88.7 percent month-on-month, led by major fuels including diesel and jet fuel. Chemical product prices also turned upward, indicating that rising energy costs are spreading across intermediate goods. Korean refiners, which supply about 4 percent of global jet fuel, benefited from wider margins, partly supported by prewar inventories. The won weakened sharply following the outbreak of the war, delivering a double hit alongside rising oil prices. As won-denominated trade prices are directly affected by currency fluctuations, the higher exchange rate lifted import prices while also amplifying export price gains. The rise in export prices also reflected continued strength in semiconductor pricing. Prices for computers, electronic and optical devices rose 12.7 percent month-on-month. However, while the first two months of the year were characterized by demand-driven growth centered on chips, the March surge increasingly reflects cost-push pressure from higher energy prices. Trade terms remained solid for now. The net barter terms of trade index rose 22.8 percent year-on-year, while the income terms of trade index jumped 50.9 percent. The surplus largely reflects export prices for semiconductors and petroleum products rising faster than import prices. Market attention is now shifting to April data, as structural pressures from rising raw material and energy costs are expected to become more visible. In a scenario where energy prices and the exchange rate rise simultaneously, higher import costs are likely to spill over into consumer inflation. This could increase the cost burden for corporations and weigh on economic growth. If Middle East risks persist, there are concerns that energy price increases will become entrenched across production costs. The Hyundai Research Institute (HRI) projected that if oil prices remain above $100 per barrel throughout the year, South Korea’s economic growth rate would drop by at least 0.3 percentage points. French investment bank Natixis went further, cutting its growth forecast for South Korea from 1.8 percent to 1 percent — a reduction of 0.8 percentage points. 2026-04-15 09:08:44