Journalist

Jang Sun-a
  • Foreign investors extend buying streak in South Korean stocks, bonds
    Foreign investors extend buying streak in South Korean stocks, bonds SEOUL, January 14 (AJP) - Foreign investors were net buyers of South Korean stocks and bonds in December, extending net inflows to a fourth consecutive month. Net foreign inflows into South Korean securities totaled $7.44 billion in December, according to the Bank of Korea’s report on international finance and foreign-exchange market trends released Wednesday. The figure marked the largest monthly inflow since September, when inflows reached $9.12 billion. Bond purchases accounted for the bulk of the inflows, totaling $6.26 billion, while net stock buying came to $1.19 billion. Bond inflows had surged to $11.81 billion in November, the highest monthly figure since the data series began in 2008. In December, foreign holdings of South Korean bonds that matured during the month reached $6.49 billion, the largest amount recorded for any December, the central bank said. A BOK official said equity flows turned positive on expectations that rising memory chip prices would lift profitability at domestic semiconductor companies. Bond inflows, meanwhile, continued to be led by public-sector investors, even as sizable volumes of bonds matured. South Korea’s credit default swap premium on government bonds averaged 22 basis points in December, down from 23 basis points a month earlier, indicating slightly improved perceptions of sovereign risk. 2026-01-14 13:43:50
  • South Korean business sentiment improves for second month, but services outlook slips
    South Korean business sentiment improves for second month, but services outlook slips SEOUL, December 30 (AJP) - South Korean companies reported improved business conditions for a second consecutive month in December, supported by year-end seasonal factors, the central bank said on Tuesday. However, sentiment for the coming month weakened sharply in the nonmanufacturing sector as the seasonal boost is expected to fade. According to the Bank of Korea’s December business survey and Economic Sentiment Index, the all-industry Corporate Business Sentiment Index (CBSI) rose 1.6 points from November to 93.7, extending gains recorded the previous month. The CBSI, which combines key Business Survey Index components for manufacturing and nonmanufacturing, remains below its long-term average of 100, indicating continued overall pessimism despite the recent improvement. Manufacturing sentiment improved, with the CBSI rising 1.7 points to 94.4, supported by better funding conditions and higher production. The nonmanufacturing index climbed 1.4 points to 93.2, driven by stronger sales and improved financing conditions. The central bank said year-end seasonal effects provided a lift to nonmanufacturing activity, while manufacturing benefited from improved conditions in industries linked to U.S. capital spending. Lee Hye-young, head of the Bank of Korea’s economic sentiment survey team, said sectors such as metal processing and machinery and equipment were positively affected by U.S. investment trends. She noted that these industries include a large number of small and medium-sized firms. On currency movements, Lee said the weak won likely boosted profitability for manufacturing exporters, while companies with a high reliance on imports faced pressure on margins. The exchange rate had a more limited impact on nonmanufacturing overall, though some sectors, including wholesale, retail and trade-related industries, were affected, she added. The all-industry CBSI outlook for next month fell 1.7 points to 89.4. Manufacturing expectations rose 1.9 points to 93.6, while nonmanufacturing sentiment dropped sharply by 4.1 points to 86.6, marking the largest monthly decline since January. Lee said manufacturing expectations remained supported by industries that improved this month, while nonmanufacturing sentiment weakened as sectors that benefited from temporary year-end demand anticipated a slowdown in early 2026. The Economic Sentiment Index fell 1.0 point to 93.1, while its cyclical component increased by 0.7 point, the central bank said. 2025-12-30 10:05:16
  • Bank of Korea takes rare moves to boost USD liquidity and defend won
    Bank of Korea takes rare moves to boost USD liquidity and defend won SEOUL, December 19 (AJP) -The Bank of Korea (BOK) on Friday moved to shore up foreign-exchange market liquidity to help stabilize the won, announcing temporary regulatory relief and incentives for financial institutions in desperate move to buttress the local currency without direct intervention. At an emergency meeting held Friday, the central bank’s Monetary Policy Board approved a six-month package of measures to be applied from January through June next year. The steps follow a joint government–BOK announcement a day earlier outlining a “flexible adjustment plan” for the foreign-exchange stability framework. Under the measures, the BOK will for the first time pay interest on excess foreign-currency reserve deposits held by financial institutions in hopes to keep their dollar holdings at home. Previously, banks earned no return on such deposits, but they will now receive interest benchmarked to the U.S. Federal Reserve’s target policy rate range of 3.50 to 3.75 percent. The board also decided to fully waive the foreign-exchange stability levy over the same period. The levy, imposed on non-deposit foreign-currency liabilities under the Foreign Exchange Transactions Act, was introduced to curb excessive foreign-currency borrowing. The waiver is expected to reduce banks’ dollar funding costs and encourage a greater supply of foreign currency to the market. Yoon Kyung-soo, director general of the BOK’s International Department, said the levy waiver alone would lower financial institutions’ foreign-currency funding costs by about 10 basis points. He added that paying interest on foreign-currency reserves would strengthen banks’ liquidity buffers while also supporting profitability. The BOK said the measures would reinforce exchange-rate stabilization efforts alongside regulatory easing announced by the government, which included postponing foreign-currency liquidity stress tests and raising the cap on foreign banks’ forward foreign-exchange positions from 75 percent to 200 percent. Yoon said the central bank convened the emergency monetary policy meeting after judging that recent exchange-rate movements reflected a severe imbalance between supply and demand, but stressed that “this is not a situation comparable to last year’s martial law-related crisis.” He noted that foreign-currency funds previously managed overseas would effectively remain in South Korea if deposited at the BOK, easing pressure on the market. He also said any early-January inflows of excess reserve deposits would be manageable, as foreign-exchange reserves are calculated at month-end. Potential increases in currency-hedging demand from the National Pension Service, he added, were unlikely to pose a major risk, though adjustments could take time. Earlier this week, the central bank has extended $65 billion currency swap arrangement with the NPS. The move marks the first emergency Monetary Policy Board meeting since December 4 last year, immediately after the declaration of martial law. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-19 16:39:25
  • Koreas M2 growth quickens to 8.7% in Oct; BOK rejects FX link
    Korea's M2 growth quickens to 8.7% in Oct; BOK rejects FX link SEOUL, December 16 (AJP) -South Korea’s broad money supply (M2) has remained in the 8-percent growth range since August and accelerated further to 8.7 percent in October, the Bank of Korea said Tuesday, while pushing back against claims that the liquidity increase is driving the won’s weakness. According to the central bank’s monetary aggregates report, the average M2 balance stood at 4,471.6 trillion won in October, up 0.9 percent from the previous month and 8.7 percent from a year earlier, marking the third consecutive month of annual growth above 8 percent. M2 includes cash, demand deposits and short-term financial instruments such as money market funds and certificates of deposit. The October increase was driven mainly by a 31.5 trillion won rise in securities-related balances, reflecting heavy stock market investment amid a rally in domestic equities. Regular deposits increased by 9.4 trillion won, partly due to banks’ regulatory funding needs. By sector, households and nonprofit organizations recorded a 24.1 trillion won increase in M2 balances, while other financial institutions and corporations also contributed to the expansion. Narrow money supply (M1), which includes only cash and demand deposits, rose 0.2 percent month on month and 8.1 percent year on year. Amid growing debate over whether rapid M2 growth is fueling asset inflation and foreign-exchange volatility, the Bank of Korea said it would revise its monetary statistics in line with updated International Monetary Fund (IMF) guidelines, with revised figures scheduled for release on Dec. 30. From November data onward, the central bank will publish two versions of M2—the current series and a measure excluding securities-related balances—for at least a year, in an effort to clarify underlying liquidity conditions. Kim Min-soo, head of the BOK’s financial statistics team, said securities accounted for 3.3 percentage points of October’s 8.7 percent M2 growth, or about 40 percent of the total increase. “Without securities, the growth rate would have been below 6 percent in September,” he said. The central bank stressed that liquidity alone is not driving housing prices or the exchange rate. Park Sung-jin, head of the BOK’s market operations team, noted that South Korea’s M2 definition differs from that of the United States, where securities are excluded, cautioning against direct comparisons of liquidity conditions across countries. He added that recent housing price increases in the Seoul metropolitan area cannot be attributed solely to money supply growth, pointing to macroprudential measures that have slowed household lending. As for the won, Park said exchange-rate movements are being shaped more by overseas securities investment, exporters’ foreign-currency holdings, and broader capital flows than by domestic liquidity expansion. As of 2:40 p.m. Tuesday, the dollar reversed direction after falling to 1,468 won earlier to 1,475.60 won, up 4.80 won last close on heavy foreign stock selling. 2025-12-16 14:48:02
  • Weaker won sends Koreas import prices up to a 19-mo high
    Weaker won sends Korea's import prices up to a 19-mo high SEOUL, December 12 (AJP) -South Korea’s import prices climbed in November despite a sharp pullback in global fuel costs, as the won’s depreciation against the U.S. dollar outweighed relief from cheaper energy, Bank of Korea data showed Friday. The import price index rose 2.6 percent on month and 2.2 percent on year to 141.82, accelerating from October’s 138.19 and posting the steepest monthly increase since April last year. The gains came even as Dubai crude averaged $64.47 per barrel in November, down from $65 in October, highlighting the dominant impact of exchange-rate movements on the country’s trade conditions. The dollar averaged 1,457.77 won in November — up 2.4 percent from the previous month and 4.6 percent from a year earlier — amplifying import costs across major categories. Raw materials rose 2.4 percent, led by higher natural gas prices, while intermediate goods such as computers and electronic components climbed 3.3 percent. Capital goods increased 1.5 percent and consumer goods 1.8 percent. Some inputs central to Korea’s industrial base posted sharp jumps. Lithium hydroxide surged 10 percent, and flash memory prices leapt 23.4 percent, reflecting a surge in chip-fabrication activity. Bank of Korea price statistics chief Lee Moon-hee cautioned that volatility remains elevated. “The average exchange rate from December 1 to 10 rose by 0.8 percent from the previous month,” he said. “Given the uncertainty, we need to monitor exchange rate fluctuations until the end of the month.” A weak won, however, proved supportive for exporters. The export price index climbed 3.7 percent on month and 7.0 percent on year to 139.73, boosted by a broad-based jump in semiconductor prices. DRAM led the gains with an 11.6 percent rise amid persistent supply tightness. When measured in U.S. dollars, import prices increased 0.7 percent in value and 4.3 percent in volume, while export prices surged 9.1 percent in value and 6.8 percent in volume, improving overall trade conditions. South Korea’s net terms of trade index rose 5.8 percent on year, marking 29 straight months of improvement. Export prices gained 2.1 percent, far outpacing the 3.4 percent decline in import prices, while the volume-based index jumped 13 percent, signaling strengthened purchasing power for the economy. 2025-12-12 07:53:01
  • Mortgage lending loses momentum in South Korea after tighter rules
    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 Coupangs warehouses after recent massive data breach
    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 Koreas central bank widely expected to freeze rate at Thursdays meeting: Survey
    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
    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
    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