Mortgage lending loses momentum in South Korea after tighter rules SEOUL, December 10 (AJP) - Growth in South Korea’s mortgage lending slowed to its weakest pace in 20 months in November, as tighter bank lending standards and easing demand for rental deposit loans weighed on household borrowing, central bank data showed on Wednesday. According to the Bank of Korea’s financial market trends report, outstanding household loans at deposit-taking banks, including policy mortgages, rose by 1.9 trillion won in November to 1,175.6 trillion won. Mortgage loan balances increased by 7 trillion won to 935.5 trillion won, marking the smallest monthly rise since March 2024. BOK official Park Min-cheol said total household lending across banks and non-bank financial institutions edged down to just over 4 trillion won, indicating continued deceleration in mortgage growth. He added that stricter loan management at banks had pushed some borrowing demand toward non-bank lenders. In contrast, corporate lending accelerated. Bank loans to companies rose by 6.2 trillion won to 1,372.2 trillion won in November. Loans to large corporations increased by 2.4 trillion won to 296.9 trillion won, while lending to small and medium-sized enterprises (SMEs) rose by 3.8 trillion won to 1,075.3 trillion won. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-10 15:38:58

Labor Ministry to inspect Coupang's warehouses after recent massive data breach SEOUL, December 1 (AJP) - E-commerce giant Coupang's logistics centers and delivery warehouses will be inspected next week, the Ministry of Employment and Labor said Monday. The move follows a surprise inspection by Labor Minister Kim Young-hoon at a logistics center in Goyang, Gyeonggi Province last week, shortly after a major data breach was detected. The inspection, set to begin next Wednesday, will cover Coupang's four logistics centers and three warehouses affected by the recent breach, as well as five delivery agencies contracted with the company. The ministry will assess night shifts including work hours, health checkups, and rest areas. If any risks or deficiencies are found, relevant measures will be imposed for improvement. Depending on the findings, the ministry may extend inspections to other logistics centers and delivery hubs. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-01 10:58:45

South Korea's central bank widely expected to freeze rate at Thursday's meeting: Survey Bank of Korea Governor Lee Chang-yong at the Oct. 23 monetary policy meeting/ Photo by Joint Press Corps SEOUL, November 25 (AJP) - The Bank of Korea is widely expected to keep its benchmark interest rate unchanged at 2.50 percent at its final policy meeting of the year, slated for Thursday, as it prepares to lift growth projections for both 2024 and 2025. The anticipated hold comes amid firmer economic activity and persistent concerns over a weak won, rising home prices and elevated household debt — factors that analysts say have effectively ended the rate-cut cycle that began last year. A survey by Aju Business Daily of 10 bond and macroeconomic analysts showed unanimous expectations for another rate hold at the Nov. 27 meeting, marking the fourth straight pause. Nine of the experts expect one dissenting vote in favor of a cut, while one respondent anticipates full consensus. Currency and property market pressures remain central to the bank’s cautious stance. The won has hovered over 1,470 per dollar recently. “With the exchange rate at 1,470 won, cutting rates is burdensome,” said Park Sang-hyun, an analyst at iM Securities. “Real estate prices in Seoul remain unstable, making a hold inevitable.” Cho Yong-gu of Shin Young Securities said stronger economic indicators and ongoing government efforts to stabilize housing and currency markets reduce the likelihood of a cut. “Economic forecasts are being revised upward. A rate cut seems unlikely,” he said. Markets are now watching for signals on whether the easing cycle has formally ended. Analysts say the key indicators will be the size of the revisions to next year’s growth outlook and the bank’s forward guidance through early 2026. A forecast that exceeds Korea’s potential growth rate — estimated at about 1.8 percent — would strengthen the case that no further cuts are coming. “If the growth forecast is raised to around 2 percent, expectations for a rate cut next year will diminish significantly,” said Ahn Ye-ha of Kiwoom Securities. Eighty-eight percent of surveyed experts expect the central bank to raise this year’s growth outlook from 0.9 percent to over 1 percent, and next year’s from 1.6 percent to 1.8–1.9 percent. Park of iM Securities said a revision is “highly likely,” citing the base effect and a recovery in the semiconductor sector. BOK Governor Lee Chang-yong has also hinted at a possible upgrade in the bank’s growth projections, reinforcing expectations that the easing phase is over. Four of analysts surveyed said the May rate cut marked the end of the cycle, with the central bank now entering a prolonged hold. Kang Seung-won of NH Investment & Securities expects the policy rate to eventually settle at 2.25 percent after the first half of next year, while noting that the exchange rate and updated growth forecasts remain crucial. Meritz Securities’ Yoon Yeo-sam predicted the 2.50 percent rate would likely stay in place through 2026. “We’ll see improved economic and inflation forecasts in this meeting,” he said. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-25 10:00:09

USD-KRW eases after testing above 1,1470 after verbal intervention SEOUL, November 13 (AJP) -The U.S. dollar softened after briefly topping 1,470 won during Thursday’s session in Seoul, as investment jitters eased following President Donald Trump’s signing of a bill to end the longest-ever U.S. government shutdown. The Korean won, already down 2 percent this month, initially faced renewed downward pressure as foreign investors took profits after their record stock buying, while the greenback strengthened on Washington’s return to normal operations. Selling by foreign investors — coupled with a weakening yen that underscored the recent pattern of bundling Korean and Japanese assets — further weighed on the local currency. But the removal of uncertainty surrounding the U.S. shutdown helped curb foreign stock selling and reversed the dollar’s direction, pushing it down to 1,467.70 won as of 1:20 p.m. Verbal intervention from Bank of Korea Governor Rhee Chang-yong also helped stabilize sentiment. In an interview with Bloomberg TV, Rhee cautioned that authorities could step in if currency movements become “excessive,” while noting that multiple forces — AI-driven stock volatility, dollar strength, Japan’s policy path, U.S.–China trade tensions, and Korea–U.S. investment frameworks — are simultaneously pressuring the exchange rate, limiting the scope for containing the won’s depreciation. Still, Min Kyung-won, an economist at Woori Bank, suggested signs of interventionist impact. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-13 13:36:57

Foreign reserves rise for fourth consecutive month SEOUL, October 10 (AJP) - South Korea's foreign reserves rose by about $6 billion in September, extending their growth streak for the fourth consecutive month since June. According to data released by the Bank of Korea on Thursday, the reserves stood at $422.02 billion at the end of September, up $5.73 billion from the previous month. A Bank of Korea official attributed the increase to higher investment returns and a rise in foreign currency deposits at financial institutions. Breaking down the reserves, securities such as government and corporate bonds increased by $12.25 billion to $378.42 billion. Deposits fell by $6.47 billion to $18.54 billion. Special drawing rights (SDRs), an international reserve asset held with the International Monetary Fund, remained unchanged at $15.78 billion, while gold holdings also stayed steady at $4.79 billion. As of the end of August, South Korea ranked 10th in the world in terms of foreign reserves, with China leading at $3.32 trillion, followed by Japan, Switzerland, India, Russia, Taiwan, Germany, Saudi Arabia, and Hong Kong. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-10 08:55:49

South Korea presses for currency swap with US as $350 billion deal hangs in balance SEOUL, September 24 (AJP) - South Korea’s negotiations with the Trump administration over a $350 billion investment package remain unresolved, casting uncertainty over the country’s trade relationship with Washington and fueling worries about foreign exchange stability. The deal, first outlined in July, envisioned lowering mutual tariffs from 25 percent to 15 percent, with Seoul channeling $350 billion into U.S. projects — including $150 billion for a shipbuilding fund. But talks have stalled over investment terms, leaving South Korea facing the possibility of high tariffs on its exports if no agreement is reached. President Lee Jae Myung, who met with American lawmakers on Sept. 22, acknowledged the fragility of South Korea’s financial markets in the absence of a deal. He warned that committing such an enormous sum without a currency swap arrangement with the United States could trigger turmoil comparable to the 1997 Asian financial crisis. “The outflow of $350 billion would severely impact South Korea’s economy,” Lee said, adding that a currency swap was essential to guard against shocks. The pledge, still under negotiation, would surpass the total annual foreign direct investment the United States received in both 2023 and 2024, according to the Commerce Department. Funding it poses steep challenges for Seoul. For now, President Lee has called for “commercial rationality” in any final arrangement. But with negotiations dragging on, Seoul must weigh the costs of protecting its export industries against the potential financial strain of an unprecedented investment abroad. Drawing on foreign reserves could weaken the Korean currency and erode investor confidence, while issuing large volumes of bonds risks higher interest rates and slower growth. Economists have sounded alarms. Professor Kim Sang-bong of Hansung University said tapping reserves could push the exchange rate to 2,000 won per dollar from the current 1,350 won range, while extensive bond issuance could drive up borrowing costs across the economy. By contrast, Japan recently committed $550 billion in cash to the United States over three years, a move cushioned by Tokyo’s unlimited currency swap line with the Federal Reserve. Seoul, lacking such a safeguard, faces more acute risks. Some South Korean experts suggest accepting the higher tariff burden might be more manageable than financing the vast outflow. Others propose building stabilization funds or expanding swap networks to protect against capital flight. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-24 10:07:03

Lee Chang-yong to become Korea's first central bank governor to deliver lecture at IMF Bank of Korea Governor Lee Chang-yong is set to become the first South Korean central bank governor to deliver the prestigious Michel Camdessus Central Banking Lecture at the International Monetary Fund (IMF) in Washington, D.C. The lecture series, named after the IMF's longest-serving managing director, is a high-profile forum designed to foster collaboration with central banks and address key issues in monetary policy and the global economy. Past speakers have included prominent figures like European Central Bank President Christine Lagarde, former Federal Reserve Chair Janet Yellen, and former Bank of England Governor Mark Carney, underscoring the event's significance. Lee's speech will be followed by a dialogue with IMF Managing Director Kristalina Georgieva. The event will be live-streamed on the IMF's official YouTube channel on Sept. 18 at 11:50 p.m, (KST). This marks another notable international appearance for Lee, who previously spoke at the U.S. Federal Reserve's Jackson Hole Economic Policy Symposium in 2022 and the European Central Bank's annual forum in Sintra this past June. His participation highlights South Korea's growing influence in international economic and monetary discussions, the BOK said. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-16 13:46:16

Dollar's dominance amplifies US financial shocks in South Korea: BOK The Bank of Korea has warned that South Korea’s economy remains acutely vulnerable to financial turbulence in the United States, a consequence of the dollar’s unrivaled role in global finance and trade. In a report released on Monday, the central bank argued that the international status of the dollar magnifies the effect of American financial shocks, rippling through South Korea’s markets, exports and investment. The analysis also urged policymakers to prepare for shifts in the global currency order, including the rise of dollar-based stablecoins and efforts to expand the use of the Korean won in cross-border settlements. The dollar’s standing as the world’s primary safe asset, the report noted, means that U.S. interest rate hikes or episodes of market instability can quickly strengthen the greenback, depress consumption and investment at home, and raise the cost of South Korean exports abroad. Without the dollar’s dominance in trade and finance, the report estimated, the decline in South Korean production during such shocks could be cut by as much as one-third. A strong dollar also weighs heavily on exporters by pushing up the relative price of South Korean goods. If trade settlements were conducted in won instead of dollars, the bank found, the resulting decline in production could be reduced by a quarter. “The global role of the dollar creates an additional transmission channel that amplifies financial shocks from the United States,” the bank wrote. The study also examined the potential long-term effects of digital innovation in finance. Son Min-kyu, head of the bank’s financial modeling team, said that greater use of dollar-based stablecoins in trade settlements could intensify the impact of dollar fluctuations worldwide, while potentially increasing demand for U.S. Treasuries used as collateral. But the implications for the dollar’s status as the world’s dominant safe asset, Son added, remain uncertain. He noted that South Korea could cushion itself from some of these shocks if its government bonds gain inclusion in the World Government Bond Index, a move that could attract more global investors. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-15 14:43:55