Journalist

Kim Yeon-jae
  • INTERVIEW: AI may turn Koreas inward finance into strategic edge: Carstens
    INTERVIEW: AI may turn Korea's inward finance into strategic edge: Carstens SEOUL, March 27 (AJP) - Unlike globally recognized industrial giants such as Samsung, LG and Hyundai, South Korea’s financial sector remains relatively underexposed overseas — yet its domestic orientation could become a strategic advantage in the era of artificial intelligence, a former top central banker said. Artificial intelligence is set to fundamentally reshape financial intermediation, from payments to supervision, according to Agustín Carstens, former general manager of the Bank for International Settlements. “AI will facilitate what we call ‘agentic payments,’ but, more importantly, it will significantly enhance the efficiency of transaction settlement,” Carstens said in an interview with AJP. He added that AI-enabled transparency could materially lower compliance costs by allowing regulators to monitor financial institutions in real time. “If regulators have continuous access to banks’ balance sheets and can assess them rapidly using AI, the need for heavy and costly reporting frameworks diminishes considerably,” he said. Carstens also pointed to growing momentum behind South Korea’s digital currency initiatives, particularly the Bank of Korea’s won-based stablecoin project, under incoming governor Shin Hyun-song — a former BIS colleague. Shin’s appointment comes at a critical juncture for financial innovation. Carstens underscored his expertise in tokenization, central bank digital currencies and AI-driven financial systems. “Through the BIS, we have undertaken extensive work on tokenization, central bank digital currencies and the broader impact of AI on the economy,” he said. “He is a leading expert in these areas and is well positioned to sustain the Bank of Korea’s momentum in advancing the digitalization of the financial system.” Carstens was in Seoul to speak at the 19th Asia-Pacific Financial Forum (APFF) 2026, hosted by Aju Business Daily, which this year examined why Korea’s financial sector has lagged its industrial base in global reach. However, longer-term digital ambitions remain contingent on near-term macro risks. South Korea’s energy-dependent economy is highly exposed to disruptions in the Middle East, particularly via the Strait of Hormuz, a critical artery for global oil and gas flows. “Korea depends significantly on energy supplies that transit the Strait of Hormuz,” Carstens cautioned. “Any disruption there could have immediate and material consequences for key sectors of the economy.” Such geopolitical shocks, he added, could weigh on the manufacturing and digital backbone of the economy — even as AI opens a pathway for structural upgrading in finance. 2026-03-27 08:53:57
  • South Korea to buy back $3bn bonds to bolster market
    South Korea to buy back $3bn bonds to bolster market SEOUL, March 26 (AJP) -South Korea will buy back 5 trillion won ($3.3 billion) of sovereign bonds in a rare market intervention to cap a surge in yields that have overshot the policy rate by more than 100 basis points amid the prolonged Middle East conflict. The Ministry of Economy and Finance (MOEF) said Thursday it will conduct the buyback on Friday, targeting Korea Treasury Bonds (KTBs) with maturities ranging from two to 10 years — one of the largest liquidity injections into the local bond market in recent years. The move comes as benchmark yields have spiked sharply, with the three-year KTB rising to 3.558 percent and the 10-year to 3.859 percent on Wednesday, both the highest levels since late 2023. The surge reflects a rapid sell-off in bonds as investors price in geopolitical risk, a weaker won and persistent inflation pressure. The buyback forms part of a broader emergency package that includes tax cuts, policy financing and a supplementary budget, as authorities shift into what they described as a “wartime” economic response to the monthlong Gulf conflict. “In the face of a grave wartime situation, we will mobilize all possible policy tools and the optimal mix,” Deputy Prime Minister for Economy Koo Yun-cheol said at a press briefing. The government said the intervention is aimed at preemptively containing excessive volatility and ensuring stable liquidity in the bond market, where yields have risen well above the 2.5 percent base rate. Bond prices move inversely to yields, and the sell-off has been exacerbated by currency weakness. The won has breached the key 1,500-per-dollar level and continued to slide toward 1,510, adding to upward pressure on market rates. MOEF said it will maintain round-the-clock monitoring of financial markets and coordinate closely with the Bank of Korea to deploy additional stabilizing measures if needed. Whether the intervention will help to reverse the sentiment remains uncertain, unless the war ends and removes oil price-driven inflationary scare. The buyback delivered only a mild lift to shorter-dated bonds while triggering a selloff at the long end, effectively inverting the policy’s intended signaling. The two-year government bond yield fell 2.2 basis points to 3.489 percent, with the three-year little changed at 3.552 percent. But yields further out the curve moved sharply higher: the 20-year jumped 3.9 basis points to 3.880 percent and the 30-year rose 4.6 basis points to 3.762 percent. Rather than easing overall financing conditions, the move steepened the curve — a sign that investors see the intervention as a near-term liquidity patch, not a solution to underlying inflation and supply risks. In effect, the market is pricing in more pressure ahead, demanding higher compensation for holding long-dated debt even as the government steps in. Immediate market response was lukewarm — and telling. The buyback delivered only a mild lift to shorter-dated bonds while triggering a selloff at the long end, effectively inverting the policy’s intended signaling. The two-year government bond yield fell 2.2 basis points to 3.489 percent, with the three-year little changed at 3.552 percent. But yields further out the curve moved sharply higher: the 20-year jumped 3.9 basis points to 3.880 percent and the 30-year rose 4.6 basis points to 3.762 percent. Rather than easing overall market conditions, the move steepened the curve — a sign that investors see the intervention as a near-term liquidity patch, not a solution to underlying inflation and supply risks. In effect, the market is pricing in more pressure ahead, demanding higher compensation for holding long-dated debt even as the government steps in. 2026-03-26 15:05:06
  • Rising subprime borrowers face delinquency risk amid fast rate rises in Korea
    Rising subprime borrowers face delinquency risk amid fast rate rises in Korea SEOUL, March 26 (AJP) - A growing pool of overleveraged, subprime borrowers is emerging as a key financial risk in South Korea, with war-driven surge in market and dollar rates amplifying repayment stress. Data released Thursday by the Bank of Korea (BOK) showed the share of “subprime borrowers” — defined by the BOK as individuals with loans from three or more financial institutions, belonging to the bottom 30 percent income bracket and holding low credit ratings who would bear much higher borrowing terms — rose to 6.7 percent at end-2025, up from 6.4 percent in the previous quarter. The ratio had hovered near 7 percent earlier in the year before easing temporarily on the back of the government’s “bad bank” debt relief program, which targeted long-term small-scale delinquencies. The improvement, however, proved short-lived, reversing within a quarter. More concerning is the steady buildup of borrowers at risk of slipping into that category. The share of “potentially vulnerable borrowers” climbed from 17.5 percent at the start of 2025 to 18.0 percent by the fourth quarter, signaling a widening pipeline of credit-strained households. With debt spread across multiple institutions, repayment risks are compounding. Such borrowers face heightened exposure to “Ponzi-like” rollover behavior, making them particularly vulnerable to default if income fails to keep pace with rising interest costs. The BOK defines this group broadly as either middle-income borrowers with multiple loans or low-income borrowers with debt from at least two institutions. Corporate indicators point to a parallel strain, underscoring a deepening K-shaped divergence. The share of “zombie” small and medium-sized enterprises (SMEs) — firms with an interest coverage ratio (ICR) below 1.0 — jumped to 61.4 percent in the third quarter, up from 56.9 percent in the second quarter. The figure is nearly double that of large conglomerates, at 32.6 percent. SMEs’ average ICR stood at minus 0.4, indicating operating profits are insufficient to cover even interest payments, while large firms improved to 4.7, widening the corporate gap. The outlook is darkening further as external shocks intensify. The Korean won has weakened past the 1,500-per-dollar level — a threshold last seen during the global financial crisis — amid disruptions tied to the effective closure of the Strait of Hormuz. Korea’s heavy reliance on Middle Eastern energy has amplified the impact. Market rates, a key gauge of borrower stress, have also surged. As of Wednesday, the three-year government bond yield stood at 3.558 percent, up 21 percent year-to-date, while the 10-year yield climbed to 3.859 percent, more than 100 basis points above the 2.5 percent policy rate. “If holding rates steady has not eased principal and interest burdens, it suggests income weakness across households and firms has not been fully reflected,” said Jang Jeong-su, deputy governor general for financial stability and payments. “As market rates rose, delinquency rates followed, increasing the number of vulnerable borrowers and firms,” added Kim Jeong-ho, head of the BOK’s stability analysis team. Officials also flagged the policy dilemma facing incoming BOK Governor nominee Shin Hyun-song. “While a rate hike could support financial stability, it would also increase the burden on vulnerable borrowers and firms,” Jang said, noting the central bank will closely monitor both domestic conditions and external risks, including developments around the Strait of Hormuz. 2026-03-26 13:44:14
  • Koreas relative under-globalized may underpin Korean Inc. strength
    Korea's relative 'under-globalized' may underpin Korean Inc. strength SEOUL, March 25 (AJP) - South Korea’s financial sector may look under-globalized next to the country’s export-driven industrial giants, but that is not necessarily a weakness, former Bank for International Settlements (BIS) General Manager Agustín Carstens said Wednesday. Speaking at the 19th Asia-Pacific Financial Forum (APFF) 2026 in Seoul, Carstens said Korea’s financial system has played a strategically effective role by channeling resources into the country’s strongest industries rather than simply pursuing international expansion for its own sake. “The fact that it does not internationalize so much doesn’t mean that it’s a failure of the Korean banking system,” Carstens said at the forum hosted by Aju Business Daily and ABC at The Plaza Seoul. “Basically, what the financing strategy of Korea has done is concentrating on the winner sectors, and you chose very well who the winners would be — the automobile industry, the appliance industry, the shipping industry, the building industry, semiconductors, and so on.” This year’s forum, held under the theme of why Korean finance remains largely domestic while non-financial Korean companies have expanded aggressively abroad, drew banking leaders, policymakers and lawmakers, including Aju Business Daily President Lim Kwu-jin, Reform Party leader Rep. Lee Jun-seok, and People Power Party lawmakers Rep. Yoon Han-hong and Rep. Kang Myung-gu. Carstens, who previously served as governor of Mexico’s central bank before leading the BIS, said the domestic focus of Korean finance should be understood in the broader context of its economic role. “The financial system plays a tremendously important role in the economy and it basically transforms savings into investment,” he said, stressing that finance serves as the foundation for industrial growth. He also said global supply chains are no longer being shaped solely by economic efficiency. “Supply chains are being reorganized along geopolitical lines, not purely economic lines,” he said. That shift, he added, is part of a broader structural transformation in which manufacturing will gradually lose its dominance as the main engine of employment. “Manufacturing will be less important in the economy and will not be the main source of employment,” he said. In a dialogue session that followed, Carstens spoke with Kim Jun-san, senior researcher at the KB Financial Group Research Institute, on the future of Korean finance, deglobalization and digital money. On trade fragmentation, Carstens argued that deglobalization should be seen less as a breakdown than as a reshuffling of existing patterns. “Deglobalization means reorganization of trade,” he said, describing the return of protectionism as a restructuring of the global order rather than its collapse. On digital finance, Carstens reiterated his skepticism toward stablecoins, saying, “stable coins by themselves are not stable,” and instead laid out a vision centered on central bank digital currencies. He said the future financial system should enable “transactions with anybody at any time in any currency immediately,” underscoring the need for an integrated system built around central bank-backed digital infrastructure. Carstens also briefly noted that Shin Hyun-song, the former BIS Monetary and Economic Department chief and a longtime colleague, is an expert in digital finance. The forum then turned to artificial intelligence and digital assets. Kim Jun-san described AI as more than a tool for efficiency, calling it “core infrastructure reshaping entire industries.” He said finance has moved beyond simple digital transformation into what he called an era of “intelligent transformation,” in which AI fundamentally changes business models and customer experiences. Citing JPMorgan as an example, Kim said AI adoption should not be limited to automation, but should be approached as a force capable of reshaping the business itself. He argued that South Korea should focus less on competing head-on with the United States and China in foundation models and more on embedding AI quickly and deeply across existing industries. “Korea is not so much a country that makes AI best, but a country that adopts and utilizes it fastest,” he said. “In the AI era, data, organization, and usage methods determine competitiveness more than technology.” Park Jung-pil, head of the Digital Innovation Office at the Bank of Korea, echoed that view, saying the success of AI adoption at a central bank depends less on the technology itself than on data governance and institutional readiness. “Data governance is most important in the process of adopting AI,” Park said, emphasizing that data must be reorganized into a form AI systems can effectively use, rather than merely accumulated. He added that cultural and human factors remain a critical obstacle. “There is also cultural resistance from users who do not want to use AI,” he said, calling for parallel efforts to reshape organizational culture and strengthen workforce capability. Kim Min-seung, head of the Korbit Research Center, closed the session with an overview of the digital asset market, describing the current phase as a shift “from regulation-centric to institutional integration.” He said virtual assets, once viewed negatively by political and financial circles, have gained legitimacy following exchange-traded fund approvals and policy changes, particularly in the United States. “The market has continuously grown despite political and institutional pressure,” Kim said, adding that digital assets are increasingly being seen as strategic national assets. Still, he said, regulatory refinement remains essential as on-chain finance moves closer to becoming part of the broader financial system. 2026-03-25 17:29:16
  • BOK chief nominees hawkish instincts to face Gulf-driven inflation test
    BOK chief nominee's hawkish instincts to face Gulf-driven inflation test SEOUL, March 24 (AJP) —The choice of former Bank for International Settlements (BIS) economist Shin Hyun-song as the new central bank chief reflects a “firefighting” role against the Gulf War-driven perfect storm South Korea faces, and according to a former BIS colleague, he is best suited for the job. How far and how fast the Bank of Korea governor nominee will translate his hawkish academic stance into policy is now the market’s central question, as Shin is set to take the helm amid growing inflationary pressure from the Gulf war fallout. President Lee Jae Myung on Sunday has tapped Shin, a former BIS head of research, as the next BOK governor. Shin, according to Agustín Carstens - former general manager of the Bank for International Settlements (BIS) in Seoul to speak at the Asia-Pacific Financial Forum hosted by Aju Media Corp. on Wednesday - “has a mixture of characteristics that is very unique.” He "knows the Korean economy and financial system very well, and is an expert in macroeconomics and finance, including the connections between Korea and the rest of the world", Carstens said, adding that makes him the ideal monetary chief to “assess the shocks that the world and financial system is experiencing and to assess how it would affect the Korean economy very well.” Given his academic track record, Shin is widely viewed as more responsive to shocks than incumbent Rhee Chang-yong, whose policy stance has often been seen as cautious. Critics, including Democratic Party lawmaker An Do-geol, argue that the BOK’s passive signaling under Rhee contributed to a surge in household lending. “With the won hovering near 1,500 and 10-year yields pushing above 3.8 percent, the president appears to have seen a ‘firefighter’ in Shin,” an anonymous finance ministry official said. Markets have already begun pricing in a more hawkish turn. The three-year bond yield spiked to above 3.6 percent and the 10-year yield climbed to 3.8 percent upon the announcement, sharply above the 2.50 percent base rate. Shin’s reputation as a policy hawk dates back to his early work during the global financial crisis. In a Federal Reserve Bank of New York paper, he warned that loose monetary policy fuels balance sheet expansion and asset bubbles, underscoring the need for preemptive tightening. He reinforced that stance in a 2022 interview, arguing that “it is better to overreact with rate hikes than to be timid” when tackling inflation. His framework extends beyond rate policy. In a 2012 NBER paper, Shin highlighted “non-core liabilities” such as certificates of deposit and financial bonds as key sources of systemic risk, calling for tighter monitoring during credit booms. Yet Shin is not a one-dimensional hawk. At the BIS, he has also emphasized policy calibration. In a March 16 briefing on a potential Strait of Hormuz disruption, he suggested central banks may “look through” temporary supply shocks rather than react mechanically with rate hikes. This places Shin at the center of a clear policy tension: a hawk in principle, but pragmatic in execution. His communication philosophy also signals a shift. In a 2017 BIS speech titled “Can central banks talk too much?”, Shin warned that excessive signaling risks trapping policymakers in an “echo chamber,” diminishing the effectiveness of forward guidance. This contrasts with Rhee’s tenure, which featured frequent communication on structural factors such as demographics, supply chains and social dynamics. Despite these nuances, few dispute that Shin will respond proactively to inflation risks. “We expect Shin to favor tightening once excess liquidity and easing financial conditions become evident,” said Kim Jin-wook of Citi, who forecasts two 25-basis-point hikes this year. KB Securities’ Lim Jae-kyun did not fully agree, saying that if the Gulf-driven shock proves temporary and inflation expectations remain anchored near 3 percent, the BOK may refrain from immediate tightening. Beyond traditional monetary policy, the BOK under Shin's watch is expected to accelerate digital agenda. Carstens, described him as a "world-leading expert" in the impact of technological change, including tokenization and artificial Intelligence and was confident Shin would bring "a lot of dynamics, or continue the dynamics, of what the Bank of Korea has started to do in terms of digitizing the financial system and the role of the central bank.” 2026-03-25 10:04:02
  • Koreas PPI extends gains for sixth month in Feb; war-driven pressure yet to hit
    Korea's PPI extends gains for sixth month in Feb; war-driven pressure yet to hit SEOUL, March 24 (AJP) — South Korea’s producer prices rose for a sixth straight month in February, as higher energy and commodity costs lifted input prices across the board, pointing to building import-driven inflation pressure even before the full impact of war-related shocks. The producer price index (PPI) stood at 121.36 (2020=100) in February, up 0.6 percent from a month earlier, according to preliminary data released by the Bank of Korea (BOK) on Tuesday. On a year-on-year basis, the index rose 2.4 percent, the fastest pace since a 2.6 percent gain in July 2024. The increase was led by industrial goods, which rose 0.6 percent on-month. Coal and petroleum products surged 4.0 percent, exerting strong upward pressure on the overall index. Prices climbed sharply for diesel (7.4 percent), naphtha (8.7 percent) and gasoline (5.3 percent), reflecting higher global oil benchmarks. Dubai crude, for instance, rose 3.6 percent in February amid heightened Middle East tensions. Utility costs also picked up. Gas prices for industrial use rose 1.8 percent from a month earlier, pushing up the broader category of electricity, gas and water. A persistently weak won added to cost pressures, lifting import prices even before disruptions to the Strait of Hormuz following attacks on Iran. The domestic supply price index, which tracks inflation in the production pipeline, rose 0.5 percent on-month. Raw material prices increased 0.7 percent, reversing a 0.9 percent drop in January, while intermediate input costs rose 0.6 percent, contributing 0.2 percentage points to final goods prices. Yet the February data likely understate the scale of inflationary pressure ahead. The won-dollar exchange rate closed February at 1,438.4. By Monday, it had surged 5.5 percent to 1,517.6 won, while global oil prices have jumped roughly 50 percent from late February levels, suggesting the bulk of war-driven cost pressure has yet to feed through into producer prices. 2026-03-24 08:49:17
  • Frenzied retail stock buying triggers Seoul warning on forced liquidation
    Frenzied retail stock buying triggers Seoul warning on forced liquidation SEOUL, March 23 (AJP) - Leveraged stock buying by retail investors remained feverish on Monday despite 6-percent rout on escalating Gulf war fears, prompting the financial regulator to warn on forced liquidations. The Financial Supervisory Service issued a set of guidelines on Monday aimed at preventing disputes in margin trading, saying recent sharp swings in the domestic stock market had heightened the risk of forced sell-offs for investors using credit financing. “When the domestic stock market has recently shown sharp volatility, the risk of forced liquidation for investors using credit financing has increased, and related disputes and complaints are being steadily filed,” the regulator said. The FSS noted that investors are often swept up in fear of missing out during rallies. As share prices rise, it becomes harder to enter the market with cash alone, pushing some investors to rely on margin loans. When prices then fall sharply, mandatory liquidations are triggered if the collateral ratio drops below 140 percent. Outstanding margin balances surged 21.5 percent in just over two months, rising from 27.4 trillion won ($18.13 billion) at the start of the year to 33.3 trillion won as of March 20. Saying many disputes stem from investor misunderstanding or oversight, the FSS issued several reminders. For complaints that investors did not receive advance notice before forced liquidation, the regulator advised checking whether the brokerage’s phone number had been blocked. Under the Capital Markets Act, brokerages are required to notify clients before carrying out a margin call sale. In cases where investors argued that more shares were sold than necessary to cover the collateral shortfall, the FSS said they must take into account the so-called haircut, or discount rate. Forced liquidations are typically executed at prices discounted by up to 30 percent from the previous day’s close, and the 140 percent collateral ratio should be calculated on that basis. The watchdog also cautioned against relying on intraday price movements when calculating collateral ratios. Even if the ratio appears stable during trading hours, a forced liquidation can still occur if the requirement is not met at the closing price. It also stressed that investors should not treat forced liquidation itself as the reason they failed to make a profit. If a liquidation involves multiple stocks and an investor wants to protect a particular holding, the investor must request a change in liquidation priority in advance through the brokerage. For example, if the default order is A-B-C, the investor may ask that B and C be sold first to preserve stock A. The FSS added that disputes involving overseas stocks are also common, as many investors underestimate how exchange-rate swings and the higher volatility of individual foreign stocks can quickly erode collateral ratios. It also noted that interest-charging methods on margin loans differ by brokerage, and that prolonged delinquency on unsettled receivables may make future credit trading more difficult While the KOSPI ended Monday 6.5 percent lower, retailers bought a net 7 trillion won, matching the selling by foreign and local institutions. 2026-03-23 17:09:52
  • FX deposits fall for second month on overseas investment, import payments
    FX deposits fall for second month on overseas investment, import payments SEOUL, March 23 (AJP) - Resident foreign currency deposits in South Korea declined for a second straight month in February, as corporate demand for overseas investments and import settlements weighed on balances. According to data released Monday by the Bank of Korea (BOK), outstanding resident foreign currency deposits at foreign exchange banks stood at $117.53 billion at end-February, down $490 million from a month earlier. The decline follows a sharper $1.4 billion drop in January, extending the downward trend. Resident foreign currency deposits include holdings by domestic residents, local companies, foreigners residing in Korea for more than six months, and foreign corporations operating in the country. By currency, U.S. dollar-denominated deposits fell by $340 million, while Japanese yen deposits declined by $210 million. In contrast, euro deposits rose by $200 million. Corporate deposits — which make up the bulk of total holdings — led the decline, dropping $450 million to $100.23 billion. Individual deposits edged down $40 million to $17.31 billion. By institution, deposits at domestic banks decreased by $280 million, while those at local branches of foreign banks fell by $210 million. The BOK said the decline in dollar deposits was driven by outbound investments and payments for import bills, while the drop in yen deposits reflected settlements of current account transactions. The data suggest the continuation of demand-driven fluctuations seen in recent months. In January, euro deposits had also declined, largely due to corporate payment needs. 2026-03-23 14:50:14
  • KOSDAQ shines alone; Nikkei suffers Black Friday on Gulf crisis, hawkish BOJ
    KOSDAQ shines alone; Nikkei suffers "Black Friday" on Gulf crisis, hawkish BOJ SEOUL, March 20 (AJP) — Asian equity markets showed mixed results with limited volatility on Friday, yet a sharp divide emerged between Seoul and Tokyo. While the tech-heavy KOSDAQ rallied by over 1 percent, Japanese stocks suffered a bruising "Black Friday" as monetary tightening fears gripped the Nikkei. The South Korean won showed no signs of recovery amidst the prolonged blockade of the Strait of Hormuz and the U.S. Federal Reserve’s hawkish stance on interest rates. Although the won rose to the 1,480 level during intraday trading, it surrendered all gains to close at 1,500 per dollar, unchanged from the previous session. Signals from the Bank of Japan (BOJ) regarding a potential rate hike on Thursday - right after the rate freeze - also weighed heavily on regional currency markets. With both the Fed and the BOJ maintaining hawkish leanings, as the impact of the Strait of Hormuz blockade on the South Korean economy began to materialize, the yield gap between South Korea’s long-term and short-term bonds narrowed further.The 10-year treasury yield fell 4.3 basis points to 3.736 percent, while the 3-year yield jumped 8.1 basis points to 3.410 percent. The benchmark KOSPI closed at 5,781.20, up 0.31 percent. Despite a mountain of external risks, the index managed a slight gain, led by a rally in alternative energy stocks. Retail investors net purchased 2.23 trillion won ($1.50 billion) and institutional investors bought 403.4 billion won, while foreign investors offloaded 2.67 trillion won in flight to safety and profit-taking moves. Alternative energy stocks, including nuclear and solar power, surged as the Middle East conflict continued to choke petroleum supply chains. Doosan Enerbility, a leader in domestic gas turbines, rose 3.1 percent to 109,600 won ($73.68). SK Innovation also climbed 3.26 percent to 113,900 won after its subsidiary, TerraPower, received a construction permit for an advanced nuclear reactor from the U.S. Nuclear Regulatory Commission (NRC). Daewoo E&C, which declared its entry into the nuclear sector last year, posted the largest gain, soaring 18.18 percent to 19,110 won. Hanwha Solutions, the nation’s top solar module maker, recovered previous losses to close at 51,700 won, up 3.92 percent. In contrast, heavyweights Samsung Electronics and SK Hynix weakened, falling 0.55 percent and 0.6 percent, respectively. The KOSDAQ index experienced a solitary surge, largely driven by the biotech sector ahead of the American Association for Cancer Research (AACR) annual meeting in April. Samchundang Pharm reclaimed the top spot in market capitalization, jumping 14 percent to 112,000 won following its success in developing a biosimilar for Eylea. Peptron, specializing in peptides, also soared 9 percent to 28,500 won. The Nikkei 225 plummeted 3.38 percent to close at 53,372.53. Beyond the Middle East risk and the Fed’s rate freeze, remarks from BOJ Governor Kazuo Ueda acted as a major headwind. Ueda signaled a potential rate hike, noting that "the view to prioritize upside risks to inflation is prevailing." Export-driven stocks, which have long benefited from low rates, took a hit. Market leader Toyota fell 2.32 percent to 3,325 yen ($21.84), and Honda dropped 3.2 percent. Semiconductor-related stocks also suffered, with Advantest and Tokyo Electron falling 4.58 percent and 2.38 percent, respectively. Notably, SoftBank Group Corp. plunged 5.12 percent to 3,558 yen on concerns over rising interest expenses as the "weak yen" era nears its end. Taiwan’s TAIEX edged down 0.43 percent to 33,543.88. While TSMC fell 0.54 percent to 1,840 TWD ($58.12) and Foxconn lost 1 percent, MediaTek rose 1.2 percent to 1,700 TWD, buoyed by its partnership with Nvidia and the success of the Dimensity 9500 chip. In Mainland China, sentiment remained subdued. The Shanghai Composite Index fell 1.24 percent to 3,957.05 on recession fears linked to the Hormuz blockade, while the SZSE Component remained relatively flat, dipping only 0.25 percent to 13,866.20. 2026-03-20 17:13:01
  • IMF to factor Middle East shock into world economic outlook in April
    IMF to factor Middle East shock into world economic outlook in April SEOUL, March 20 (AJP) - The International Monetary Fund perceives rising downside risks in the global economy from volatility in energy prices and financial market stemming from Middle East conflict and will factor the negative impact on growth and inflation into its updated economic outlook in April, according to a senior official. Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol met visiting Dan Katz, First Deputy Managing Director of the International Monetary Fund (IMF) in Seoul on Thursday and discussed strategic response to escalating global risks, the ministry said in a press release Friday. Katz pointed out that recent military clashes in the Middle East, the blockade of the Strait of Hormuz, and strikes on energy production facilities have significantly heightened volatility in energy prices and financial markets. He warned that these factors are increasingly likely to dampen global economic growth. The IMF official added that a prolonged conflict could severely hamper global expansion and trigger widespread inflation, noting that the IMF intends to closely monitor these projections. These assessments are expected to be reflected in the IMF’s World Economic Outlook (WEO) scheduled for release in April. Koo explained Seoul was deploying "all possible policy means" - enforcing cap on gasoline and fuel prices and fast-tracking supplementary budget - to minimize the fallout on the real economy. Katz commended the South Korean government for its "swift and decisive" response to recent market volatility and its impact on the real economy. He assessed that the South Korean economy has historically demonstrated strong resilience in the face of various domestic and international shocks. Furthermore, the IMF deputy chief expressed gratitude for South Korea’s contributions to capacity-building programs for vulnerable and low-income countries, including its recent funding to the IMF. Koo responded by reaffirming Seoul's commitment to further contributing to capacity-building initiatives in emerging fields, such as AI and digital technology. 2026-03-20 15:43:44