Journalist

Kim Yeon-je
  • South Korea GDP confirmed contracting in Q4, 2025 growth slowest in five years
    South Korea GDP confirmed contracting in Q4, 2025 growth slowest in five years SEOUL, Mar. 10 (AJP) — South Korea confirmed that its economy contracted in the fourth quarter of 2025, while full-year growth slowed to its weakest pace in five years amid a slump in construction and slowed investment activity. According to final data released by the Bank of Korea on Tuesday, real gross domestic product (GDP) fell 0.2 percent from the previous quarter in the October–December period, marking a return to contraction after earlier gains in the year. The decline reflected weakness in key sectors of the economy. Manufacturing output dropped 1.5 percent from the previous quarter, while construction shrank 4.5 percent as both building and civil engineering projects slowed. The services sector expanded 0.6 percent, supported by gains in finance, healthcare and social services. On the expenditure side, private consumption rose 0.3 percent, mostly on health care spending, while government consumption increased 1.3 percent largely due to higher health insurance payouts. Construction investment fell 3.5 percent and facility investment declined 1.7 percent, while exports slipped 1.7 percent from the previous quarter. For the full year, South Korea’s economy grew 1.0 percent in 2025, sharply slowing from 2.0 percent in 2024 and marking the weakest expansion since the pandemic-hit year of 2020. Nominal GDP reached 2,663.3 trillion won last year, up 4.2 percent from the previous year but down 0.1 percent to about $1.87 trillion when converted to U.S. dollar, as the Korean won averaged a record low of 1,439 per dollar during the year. Gross national income per capita stood at 52.4 million won, up 4.6 percent from a year earlier. In dollar terms, however, it rose only 0.3 percent to $36,855, leaving Korea’s per-capita income in the $36,000 range for a third consecutive year as currency weakness offset domestic income gains. The GDP deflator, a broad measure of price levels across the economy, rose 3.1 percent in 2025. Real gross national income (GNI) expanded 1.4 percent in the fourth quarter, reflecting improved terms of trade and higher overseas income receipts. 2026-03-10 09:04:07
  • S&P Global inspectors arrive in Seoul to conduct annual review
    S&P Global inspectors arrive in Seoul to conduct annual review SEOUL, March 9 (AJP) - American credit rating agency S&P Global is set to conduct its annual review of South Korea's sovereign credit rating. A delegation led by Kim Eng Tan and Andrew Wood, executive directors responsible for the agency's Asia Pacific region, arrived in Seoul on Monday for a three-day consultation ahead of the upcoming review, the Ministry of Economy and Finance said. They are scheduled to talk with key financial and economic officials including those from the Bank of Korea (BOK) and the Financial Services Commission (FSC). They will also meet with researchers and other staff from state-run think tanks such as the Korea Institute for International Economic Policy (KIEP) and the Korea Development Institute (KDI). According to the ministry, their evaluation is expected to primarily focus on monetary and fiscal policies in order to assess the country's capacity to manage internal and external uncertainties and economic variables. In particular, S&P Global is expected to assess how South Korea will respond to the fallout from the Middle East conflict following U.S.-led airstrikes on Iran earlier this month and possible disruptions from the closure of the Strait of Hormuz, which have further weakened the already declining Korean won amid heightened financial market volatility that began in the second half of last year. The agency's annual review is typically released in April after completing these evaluations. South Korea's sovereign rating has remained unchanged at "AA" for the past nine years, one notch below a top-tier triple-A, following its last upgrade from "AA−" in 2016. The ministry, led by Deputy Prime Minister and Finance Minister Koo Yun-cheol, plans to coordinate with other relevant ministries to stress the resilience of the South Korean economy. 2026-03-09 17:31:12
  • Black Monday exposes vulnerabilities of external-reliant Korean economy
    Black Monday exposes vulnerabilities of external-reliant Korean economy SEOUL, Mar 09 (AJP) - The Black Monday bombshell in South Korean capital markets has once again laid bare the vulnerabilities of the country’s external-reliant economy, now facing the dreaded triple highs of oil prices, the dollar and interest rates — a classic recipe for stagflation. Crude prices touched above $110 per barrel for the first time since the early months of Russia’s invasion of Ukraine in 2022, marking one of the fastest climbs since the oil crises of the 1980s. Futures on U.S. benchmark West Texas Intermediate (WTI) and Brent crude soared more than 25 percent Sunday and more than 50 percent since attacks on Iran began on Feb. 28. Dubai crude — the benchmark most relevant for South Korea — closed Friday at $99.14. The jump marks the sharpest escalation in 31 months, since intraday prices briefly cleared $100 in mid-2022 following Russia’s invasion of Ukraine. The sudden spike in the three major benchmarks — which had stabilized near $80 just a week earlier — was triggered by news that Mojtaba Khamenei, the second son of Iran’s late supreme leader Ali Khamenei, has officially succeeded his father. Mojtaba, long seen as a shadow power broker who famously backed former President Mahmoud Ahmadinejad, is widely viewed as a hardliner whose ascension reinforces fears of a prolonged conflict and the potential shutdown of the Strait of Hormuz. The conflict has already brought tanker traffic through the Strait of Hormuz to a near standstill. Roughly 20 million barrels of oil per day — about one-fifth of the world’s seaborne crude supply — normally passes through the narrow waterway linking the Persian Gulf to global markets. Data from Vortexa shows that roughly 16 million barrels per day of oil have effectively been stranded behind the strait and cut off from global supply chains. Retail fuel prices have quickly followed the surge. As of Sunday, the average price of gasoline at filling stations in the Seoul metropolitan area reached 1,945.73 won ($1.35) per liter, while diesel climbed to 1,967.19 won — up 11 percent and 18 percent respectively since Feb. 28. In a rare reversal, diesel prices have now surpassed gasoline for the first time since February 2023. Analysts attribute the inversion to rising marine fuel demand and surging maritime logistics costs as tanker traffic reroutes. U.S. President Donald Trump attempted to calm markets by granting India a temporary waiver to import Russian oil and posting on social media that prices would drop “when the destruction of the Iranian nuclear threat is over.” Market sentiment, however, remained rattled. Asia’s energy exposure magnifies the shock The rapid breach of the $100 psychological threshold reverberated across East Asian markets due to the region’s heavy dependence on Middle Eastern energy supplies. In 2025, Asia absorbed 87 percent of the crude oil and 86 percent of liquefied natural gas (LNG) shipments passing through the Strait of Hormuz. South Korea remains particularly exposed. The country relies on the Middle East for 70.7 percent of its oil imports and 20.4 percent of LNG supplies, of which roughly 15 percent comes from Qatar. Compounding concerns, Qatar’s main LNG export facility — which normally accounts for roughly 17 percent of global LNG flows — is currently offline after being struck by an Iranian drone. On March 6, Qatar’s energy minister Saad al-Kaabi told the Financial Times that it could take “weeks to months” to restore normal operations even if the war were to end immediately. Financial markets buckle Foreign investors reacted swiftly to the deteriorating outlook, dumping more than 3.3 trillion won ($2.4 billion) worth of KOSPI shares on Monday. The benchmark index plunged nearly 8 percent, while the Korean won weakened toward the 1,500-per-dollar level — its lowest point since the aftermath of the global financial crisis 17 years ago. The panic quickly spilled into the bond market. The three-year government bond yield jumped 25 basis points to 3.477 percent, while the 10-year yield rose 15.3 basis points to 3.769 percent — the biggest single-day increase in 41 months since the aftermath of the U.S. Federal Reserve’s aggressive tightening cycle in September 2022. Verbal intervention from policymakers did little to calm investors. President Lee Jae Myung ordered “extraordinary vigilance” from fiscal and monetary authorities, while Bank of Korea senior deputy governor Ryoo Sang-dai warned that the moves in interest rates and the exchange rate appeared “excessive.” The central bank also announced an extension of its currency swap agreement with the Swiss National Bank. Spillover into the real economy The financial turbulence underscores how sensitive South Korea’s economy remains to oil price shocks. A report released March 3 by the Hyundai Research Institute noted that while South Korea ranked as the world’s 12th-largest economy in 2024, it was the seventh-largest consumer of oil globally. The combined shock of rising crude prices and a weakening won is expected to intensify inflationary pressure. Hyundai Research Institute estimates that if international oil prices average $150 per barrel, consumer inflation could rise by 0.8 percentage points to 2.9 percent, while economic growth could slow by a similar margin from its current 2 percent forecast. The Bank of Korea and government projections of roughly 2 percent growth were based on oil prices averaging around $62 per barrel. Should growth slip below 2 percent — following an already weak 1 percent expansion in 2025 — economists warn the economy could drift toward stagflation as import-driven inflation collides with slowing output. “As South Korea is a net energy importer, the upward trend in the current account surplus is likely to lose momentum as oil prices rise,” said Lee Min-hyuk, a researcher at KB Kookmin Bank. Stock rally loses steam The geopolitical shock has also punctured the optimism surrounding Korea’s stock market rally. “Since the KOSPI had outperformed other markets, there is still room for profit-taking, and with a lack of positive catalysts further declines are possible,” said Cho Jun-ki, an analyst at SK Securities. The benchmark index surged 76 percent in 2025 — nearly triple the gains of Japan’s Nikkei 225 or Taiwan’s TAIEX. Even before Monday’s crash, the KOSPI had risen 14.9 percent in 2026, more than double the Nikkei’s roughly 7 percent gain. Bond markets may also face sustained pressure. “During the 2011 Libyan crisis, government bond yields rose by more than one percentage point between the start of the year and August,” said Kim Sung-soo, a researcher at Hanwha Investment & Securities. Kim expects a similar trajectory this year, projecting a ceiling of around 3.5 percent for the three-year yield and 3.9 percent for the 10-year yield. “A quick recovery is unlikely,” he said. Oil outlook remains grim Energy markets are bracing for further volatility. Goldman Sachs warned in a Sunday report that crude prices could exceed $150 per barrel by the end of March, noting that the roughly 20 million barrels of oil transiting the Strait of Hormuz each day places the current crisis on a scale comparable to the oil shocks of the 1970s. Daishin Securities reached a similar conclusion, saying oil could remain above $100 for an extended period if global strategic petroleum reserves begin to tighten. South Korea currently holds strategic petroleum reserves equivalent to roughly 200 days of consumption, according to the Korea National Oil Corporation — the sixth-largest reserve among non-oil-producing countries. 2026-03-09 15:54:59
  • Seoul issues verbal intervention as won hits lowest since global financial crisis
    Seoul issues verbal intervention as won hits lowest since global financial crisis SEOUL, March 09 (AJP) - South Korean authorities issued a verbal intervention Monday as the won weakened to its lowest level since the global financial crisis, with officials warning they would take “appropriate” measures to stabilize financial markets. “The bond yields and the won-dollar exchange rate are showing excessive volatility compared with Korea’s economic fundamentals due to Middle East risks,” Bank of Korea Senior Deputy Governor Yoo Sang-dai said during an emergency meeting. The comment came as oil prices surged amid expanding battle zones and fuel production disruptions across the Middle East, including the de facto closure of the Strait of Hormuz, a key artery for global oil shipments to Asia. Market anxiety has also intensified after Iran named Mojtaba Khamenei, a hardline son of the slain supreme leader, as the country’s new leader — a move seen as signaling a prolonged conflict. The U.S. dollar jumped to 1,495.50 won, approaching the psychologically important 1,500-won level for the first time since the aftermath of the global financial crisis on March 12, 2009. The sharp move came as foreign and domestic institutions rushed to sell Korean assets. Foreign investors dumped more than 2 trillion won ($1.5 billion) worth of shares on the benchmark KOSPI in early trading. Government bond yields also climbed in line with global markets, tracking a sharp rise in overseas rates, including nearly 10 basis points in the U.K. 10-year gilt yield. 2026-03-09 11:21:57
  • Day 7 Middle East War: Hormuz chokepoint jolts Korean macroeconomy
    Day 7 Middle East War: Hormuz chokepoint jolts Korean macroeconomy SEOUL, Mar 06 (AJP) - The war in the Middle East is reverberating far beyond the battlefield. For South Korea — one of the world’s most energy-dependent industrial economies — the shock is moving rapidly through the core channels of the macroeconomy: the currency, bond yields, financial markets and ultimately consumer prices. The immediate trigger is the Strait of Hormuz, the narrow maritime corridor off Iran’s coast through which a large share of the world’s seaborne oil passes. Even without a formal closure, the risk of disruption has been enough to push energy prices, freight costs and financial volatility sharply higher. For Seoul, the result has been a swift repricing of risk across markets. The Korean won has been the first pressure point. As of 2 p.m. Friday, the currency was trading around 1,471 per dollar, nearly 3 percent weaker than the Feb. 25 pre-war level of 1,426.69. During Wednesday’s overnight trading, the won briefly slipped past the 1,500 mark, its sharpest intraday drop since the Asian financial crisis. Verbal intervention from the Bank of Korea (BOK) helped stabilize the currency near 1,462, though it weakened again toward 1,480 the following day. Between the New York close on Feb. 26 and March 3, the won fell 3.15 percent, the steepest decline among major currencies. Over the same period, the New Taiwan dollar dropped 1.39 percent, the Japanese yen 1.01 percent and the euro 1.54 percent. Bond markets reacted just as sharply. On March 3, the yield on Korea’s three-year government bond rose 13.9 basis points to 3.18 percent, while the 10-year yield climbed 14.8 basis points to 3.594 percent — a steeper increase than the rise in U.S. Treasury yields that day. The pressure on the currency reflects Korea’s structural exposure to energy shocks and global capital flows. South Korea imports roughly 70 percent of its crude oil from five Middle Eastern suppliers — Saudi Arabia, the UAE, Kuwait, Iraq and Qatar. More critically, around 95 percent of those shipments must pass through the Strait of Hormuz, one of the world’s most important energy chokepoints. Shipping data suggests traffic through the waterway has slowed dramatically since hostilities began. On Monday only two vessels reportedly transited the strait, far below the usual daily average of 50 to 80 tankers. Freight costs have surged as well. The Baltic Dirty Tanker Index, a benchmark for crude transport rates, jumped 54 percent in a week, rising from 1,991 on Feb. 27 to 3,083 on March 5. In global currency markets the won is often treated as a risk-sensitive proxy for trade and energy exposure, meaning geopolitical shocks that push oil prices higher tend to trigger outsized moves in Korea’s exchange rate. The currency shock has been amplified by extreme volatility in equity markets. Over the two sessions from March 3 to March 4, the KOSPI plunged nearly 20 percent, including a 12.06 percent single-day crash — a drop steeper than the declines following the September 11 attacks in 2001 or the dot-com crash in 2000. Foreign investors drove much of the selling. More than 5.17 trillion won ($3.5 billion) in foreign capital exited Korean equities on March 3 alone, accelerating the pressure on the currency. The selling was concentrated in large-cap exporters — particularly semiconductor and automobile stocks that had led the market rally over the past year. Analysts say the move reflects rapid portfolio rebalancing rather than a deterioration in corporate fundamentals. Oil shock threatens inflation and growth The larger concern now lies in the real economy. Energy costs feed directly into inflation, and the recent surge in oil prices could quickly reverse Korea’s disinflation trend. South Korea’s consumer price index rose 2 percent in February, while core inflation excluding food and energy stood at 2.5 percent. At that time, oil prices were relatively stable. That situation has changed quickly. Dubai crude futures have climbed to around $81 per barrel, Brent crude trades near $84, and U.S. WTI remains close to $79, with markets increasingly focused on the possibility of prices exceeding $100 if Hormuz disruptions intensify. Retail fuel prices are already rising. In Seoul, the average gasoline price increased about 8 percent in a week, from 1,749 won per liter on Feb. 28 to roughly 1,889 won. According to estimates from the Hyundai Research Institute, oil prices above $100 per barrel could reduce South Korea’s annual GDP growth by 0.3 percentage points while raising consumer inflation by around 1.1 percentage points. “A 10 percent rise in international oil prices is estimated to lift South Korea’s CPI growth by about 0.22 percentage points,” said Kwon Hee-jin, a researcher at KB Securities. The Bank of Korea has warned that prolonged conflict could amplify those pressures. “If the Middle East conflict is prolonged, international oil and energy prices are likely to rise,” said Yoo Seong-wook, head of the financial statistics department at the central bank. He added that the shock could weaken global economic conditions and indirectly affect Korea’s trade balance by slowing exports, underscoring the close link between oil prices and growth. For now, the central macro variable is the duration of the conflict. Analysts broadly believe a prolonged war is unlikely, as few global powers have an appetite for sustained escalation. “The crux of the matter is that no one wants a protracted war,” said Patrick Han, head of global business at SK Securities. Still, the conflict has already reshaped financial expectations. Han noted that market hopes for an early U.S. interest-rate cut have temporarily evaporated, as rising energy prices risk reigniting inflation pressures. China’s role could also become decisive. “If the Strait of Hormuz remains closed for an extended period, pressure from China — one of Iran’s key economic partners — will intensify,” said Lee Seung-hoon, a researcher at Meritz Securities. Roughly 40 percent of China’s crude imports pass through Hormuz, while Iranian oil accounts for about 13 percent of its total supply. Some analysts also point to the practical limits of military escalation. The Bank of Korea’s London office has estimated that high-intensity combat could last one to two weeks, shorter than earlier projections, due to constraints on ammunition reserves on both sides. U.S. military officials said Iranian missile launches had already fallen sharply by Thursday. Still, significant uncertainty remains. “For the war to end, negotiations must begin, but it is unclear whether such dialogue can even start,” Han said, noting that Iran’s trust in Washington and Jerusalem may have been shattered by the strikes. “The speed with which negotiations begin will ultimately determine how quickly the conflict can end.” Until shipping flows through Hormuz normalize, South Korea’s macro outlook will remain closely tied to developments thousands of kilometers away in the Persian Gulf. 2026-03-06 15:55:36
  • Koreas inflation steady in Feb, but at risk as it is mostly fed by soft energy prices
    Korea's inflation steady in Feb, but at risk as it is mostly fed by soft energy prices SEOUL, March 06 (AJP) -South Korea’s inflation held steady in February despite the Lunar New Year factor - keeping consumer prices within the central bank’s 2 percent target range for a sixth straight month - but may come under pressure as the recent easing mostly came from cheaper energy prices that have reversed following the outbreak of war in the Middle East. The consumer price index rose 2.0 percent from a year earlier in February to 118.40 (2020=100), unchanged from January, according to data released Thursday by Statistics Korea. On a monthly basis, prices increased 0.3 percent, driven by gains in services, agricultural products and utilities even as industrial goods declined. Service prices rose 2.6 percent from a year earlier, with personal services climbing 3.5 percent, the fastest pace since January 2024. The increase was largely attributed to higher travel and accommodation costs during the Lunar New Year holiday. Prices for overseas package tours jumped 10.1 percent, domestic group tours 9.5 percent, and hotel accommodation 12.8 percent from a year earlier. Car rental charges surged 37.1 percent, marking the sharpest increase since related data began in 1995. Food and agricultural prices showed mixed movements. Agricultural, livestock and fishery products rose 1.7 percent from a year earlier, slowing from 2.6 percent in January. Vegetable prices dropped 5.9 percent, reflecting improved supply and a base effect from the previous year. Livestock prices rose 6.0 percent, the fastest increase in six months, with pork up 7.3 percent, domestic beef 5.6 percent, and eggs 6.7 percent. Industrial goods prices increased 1.2 percent, while processed food prices rose 2.1 percent, easing from 2.8 percent the previous month. Officials partly attributed the slowdown to seasonal Lunar New Year promotions and a base effect from last year. Petroleum prices fell 2.4 percent from a year earlier, pulling down the overall inflation rate by 0.09 percentage point as global oil prices eased. However, the recent spike in fuel prices following the outbreak of conflict in the Middle East has not yet been reflected in the February data. Gasoline prices climbed about 8 percent over the past week following U.S.-Israeli strikes on Iran that escalated into a broader regional crisis. Core inflation indicators remained slightly above the headline figure. The core CPI excluding food and energy rose 2.3 percent, while another core measure excluding agricultural products and petroleum climbed 2.5 percent. The living cost index, which tracks frequently purchased items, rose 1.8 percent, sharply lower than the near 3-percent levels seen in late 2025. The fresh food index — often referred to as “table inflation” — fell 2.7 percent from a year earlier, the sharpest decline since May last year. Officials said the stability could be disrupted by Middle East tensions that brought the Strait of Hormuz — the choke point responsible for about 80 percent of South Korea’s crude oil shipments — into focus, along with rising shipping fees from disruptions to maritime traffic. 2026-03-06 10:06:16
  • Exports feed black in Koreas C/A surplus for 33rd month in Jan, U.S. stock invest narrows
    Exports feed black in Korea's C/A surplus for 33rd month in Jan, U.S. stock invest narrows SEOUL, March 06 (AJP) - South Korea extended its current-account surplus streak to a 33rd consecutive month in January, though the black figure narrowed from the record level seen the previous month as investment in overseas securities cooled from the frenetic pace of late last year. The current account surplus reached $13.26 billion in January, narrowing from $18.7 billion in the previous month, according to the Bank of Korea (BOK) on Friday. The robust surplus was fed by exports that surged 30 percent on year to $65.51 billion, more than doubling the pace of the 13-percent annual gain in the previous month. Imports also rose 7 percent from a year earlier to $50.34 billion, faster than the 1.7-percent increase recorded a month earlier. The services account remained in the red with a $3.8 billion deficit, largely weighed down by outbound travel. The travel account logged a deficit of $1.74 billion. The primary income account posted a $2.72 billion surplus. Investment income totaled $2.86 billion, down from $4.9 billion in the previous month as dividend income narrowed to $2.3 billion from $3.7 billion. The secondary income account recorded a $830 million deficit as outbound remittances from South Korea outpaced inflows from abroad. Overseas investment by South Korean residents rose $13.46 billion, easing slightly from $14.37 billion in December. Their investment still dwarfed foreign investment in Korean securities, which increased $4.69 billion — mostly in bonds — slowing from $5.68 billion the previous month. Reserve assets — assets held by state authorities to support the currency and meet foreign obligations — decreased by $4.83 billion, widening from a $4.44 billion decline a month earlier. The trade balance also revealed a heavy reliance on a few key sectors. Semiconductor exports skyrocketed 102.5 percent year on year to $20.69 billion, more than doubling in value. Shipments of information and communication devices, including smartphones, surged 66 percent to $4.48 billion. Automobile exports rose 19 percent from a year earlier to $5.74 billion, underpinned by record January sales in the United States by Hyundai Motor and Kia, driven by high-margin models such as hybrids. Ship exports fell 1.5 percent to $2.36 billion, the third consecutive monthly drop since the sector posted a 135-percent jump in October. Exports to the United States jumped 29.4 percent to $12.0 billion, sharply accelerating from 3.7 percent growth in December and a contraction in November. Shipments to China also surged 46.8 percent to $13.51 billion, up from 10-percent growth in December. Imports also reflected skewed activity in Korea's industrial sector. Purchases of precision machinery jumped 31.6 percent on year to $6.81 billion, with semiconductor manufacturing equipment accounting for nearly half of that total at $2.94 billion, a 61.7-percent surge. Imports of raw materials broadly declined. Crude oil imports fell 12.8 percent from a year earlier to $6.19 billion, while gas imports dropped 12.5 percent to $2.7 billion. 2026-03-06 09:45:47
  • Equity issues ground to a halt, bond offerings surge in Seoul in Jan
    Equity issues ground to a halt, bond offerings surge in Seoul in Jan SEOUL, March 06 (AJP) - Stock issues virtually came to a halt in January amid overheat concerns while bond issues — particularly in one- to five-year maturities — surged in Seoul, reflecting fears of borrowing rates going higher. According to the Financial Supervisory Service on Friday, total offerings in Korean equities and bonds in January came to 17.7440 trillion won ($12 billion), down 226.4 billion won, or 1.3 percent, from the previous month. Stock issuance totaled 108.2 billion won, off 2.4 trillion won, or 95.7 percent, from 2.4880 trillion won a month earlier and 85.4 percent from a year earlier against the base effect of large-size rights offerings in December, including Hanon Systems (980 billion won) and KDB Life Insurance (500 billion won). Rights offerings raised 28.7 billion won, down 98.5 percent from the previous month. Initial public offerings totaled two deals worth 79.5 billion won, a decline of 86.6 percent. Corporate bond issuance, in contrast, surged to 17.6358 trillion won, up 2.1534 trillion won, or 13.9 percent, from the previous month. Issuance of general corporate bonds jumped to 7.1765 trillion won from 230 billion won, an increase of 3,020.2 percent, as companies mostly in AA or higher investment grade rushed to issue debt on signs of higher yields in U.S. Treasuries and Korean government bonds. For general corporate bonds, refinancing accounted for 5.5010 trillion won, or 76.7 percent of the total, while operating funds and facility investment made up 18.9 percent and 4.5 percent, respectively. By credit rating, AA or higher issues represented 93.6 percent, and by maturity, midterm bonds accounted for 98.5 percent. Financial bond issuance fell 29.4 percent from the previous month to 9.7141 trillion won. As of the end of January, outstanding corporate bonds totaled 752.8585 trillion won, down 0.5 percent from a month earlier. Issuance of commercial paper and short-term bonds in January totaled 154.7302 trillion won, down 24.0329 trillion won, or 13.4 percent, from the previous month. Commercial paper rose 8.2 percent to 46.8926 trillion won, but short-term bonds fell 20.4 percent to 107.8376 trillion won, pulling down the overall total. 2026-03-06 08:52:20
  • Value-up index hit record highs in pre-war rally in Seoul
    Value-up index hit record highs in pre-war rally in Seoul SEOUL, Mar 05 (AJP) - The South Korean "Value-up Index", a specialized stock market benchmark launched by the Korea Exchange (KRX) as a centerpiece of the government-led corporate value-up program, reached an all-time high last month. The index was buoyed by a wave of share buybacks, cancellations, and enhanced shareholder return policies, alongside improving earnings across sectors including semiconductors, industrials, and finance. According to the "Monthly Corporate Value Enhancement Status" report released by the Korea Exchange (KRX) on Thursday, five new companies filed value-up disclosures in February. They were SeAH Steel Holdings from the KOSPI, and four Kosdaq-listed firms; Gold & S, Seoul Electronics & Telecom, JYP Entertainment, and i-SENS. While the initiative was initially led by large-cap KOSPI stocks, the trend is increasingly spreading to the Kosdaq market. To date, a total of 181 companies have filed value-up plans, comprising 132 from the KOSPI and 49 from the Kosdaq. On Feb. 26, the Value-up Index peaked at 2,836.31 points, representing a 185.9 percent surge since its inception on Sept. 30, 2024 (992.13 points). During the same period, the index’s performance outpaced the KOSPI—which also hit a record high of 6,307.27 points—by a margin of 42.7 percentage points. Capital has been flooding into Value-up related Exchange Traded Funds (ETFs). As of late February, the net assets of 13 listed Value-up ETFs reached 2.7 trillion won, a staggering 446.3 percent increase since their initial launch on Nov. 4, 2024. Both indices suffered sharp declines recently following the U.S. invasion of Iran and the blockade of the Strait of Hormuz. The KOSPI, which stood at the 6,300 level on Monday, plummeted by nearly 1,200 points (20 percent) over Tuesday and Wednesday, before rebounding 9.6 percent on Thursday to close at 5,583.90. The Value-up Index similarly dropped by over 500 points from Feb. 27 through Wednesday, before gaining 225 points (9.7 percent) on Thursday to finish at 2,532.38. Corporate efforts to enhance valuation are becoming increasingly tangible. Eleven firms, including JB Financial Group, Woori Financial Group, Meritz Financial Group, and INNOX Advanced Materials, have filed progress reports at least once a year since their initial disclosures. Meritz Financial Group, for one, has disclosed its progress eight times, providing quarterly updates since its first filing last July. Shareholder return policies are also expanding. Last month, KB Financial Group decided to buy back and cancel 600 billion won worth of its own shares. DB Insurance and Meritz Financial Group also announced plans to cancel shares worth 800 billion won and 700 billion won, respectively. The number of companies providing English-language disclosures for foreign investors has also been on the rise, increasing steadily from 74 in November last year to 82 last month. Under the revision of the Enforcement Decree of the Restriction of Special Taxation Act, which went into effect this February, high-dividend companies must file corporate value enhancement plans to satisfy tax incentive requirements. "We plan to support these companies through briefing sessions and one-on-one consulting to ensure smooth disclosure filings." the KRX stated. 2026-03-05 17:12:14
  • Koreas FX reserves rise in Feb on debt issue amid war-time volatility
    Korea's FX reserves rise in Feb on debt issue amid war-time volatility SEOUL, Mar 05 (AJP) - South Korea’s foreign exchange reserves increased for the first time in three months in February, helped by a $3 billion overseas debt issuance aimed at bolstering ammunition to stabilize the Korean won against major currencies. However, questions remain over how long the increase can be sustained, with the local currency hovering near crisis-era levels in the war aftermath. Foreign reserves rose $1.72 billion from the previous month to $427.67 billion as of end-February — the first increase since November — according to data released Thursday by the Bank of Korea (BOK). The BOK attributed the monthly rise to the successful issuance of foreign exchange stabilization bonds and subsequent investment gains from those funds. Earlier in the month, the central bank tapped global markets with a $3 billion bond issuance to strengthen its intervention capacity. The government issued the U.S. dollar-denominated bonds on Feb. 5, aiming to calm the exchange rate and respond to shifting market dynamics. FX reserves had been declining as authorities intervened to buttress the won, which weakened sharply against major currencies amid rapid capital outflows into U.S. securities. Korean financial authorities deployed a total of $4.7 billion — including $2.6 billion in December and $2.1 billion in January — primarily through a currency swap arrangement between the BOK and the National Pension Service. The currency’s average exchange rate in December consequently appreciated 2 percent to 1,434.9 won per dollar from November’s 1,464.8. It gained a further 0.6 percent in January to 1,427, aided by a broader softening of the U.S. dollar. Those gains were largely erased after the launch of U.S.-Israeli attacks on Iran last Friday and the widening conflict across the Middle East following Iran’s retaliatory strikes on neighboring countries. The dollar briefly surged to around 1,480 won as the KOSPI lost more than 20 percent in two sessions after the war broke out. It later eased to 1,463.50 won as of 8:00 a.m. Thursday amid a partial recovery in oil prices. Despite the volatility, South Korea’s standing in global FX reserve rankings remains largely intact. The country slipped to 10th place globally, losing its ninth-place position to Hong Kong. The shift was primarily driven by the Hong Kong Monetary Authority (HKMA), whose reserves rose $7.7 billion to $435.6 billion in January after realizing substantial gains from asset management operations. 2026-03-05 08:36:46