news highlight
South Korea to set up 20 trillion won strategic fund at KIC
SEOUL, July 31 (AJP) - South Korea will establish a strategic investment account worth more than 20 trillion won ($14 billion) at the Korea Investment Corp. to supply long-term equity capital to artificial intelligence, semiconductors and other industries deemed critical to national competitiveness. The fund’s initial capacity to make new investments, however, is expected to be limited to about 600 billion won because most of its capital will consist of government-held share
July 31, 2026
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BOK puts policy, markets veterans in key posts SEOUL, July 30 (AJP) - The Bank of Korea moved monetary policy and financial market specialists into key advisory and operational posts on Thursday, underscoring a push to strengthen policy coordination and its capacity to respond to market volatility. The central bank appointed or reassigned 11 department and regional branch heads and promoted 56 employees, including nine to Grade 1 and 15 to Grade 2. Lee Hwa-yeon, previously head of the Policy Coordination Team at the Monetar July 30, 2026 -
Fed holds rates despite three hike dissents, dovish signal: BOK SEOUL, July 30 (AJP) - The Federal Reserve held interest rates steady against three calls for a quarter-point increase, but markets nevertheless interpreted the decision as broadly dovish as Chair Kevin Warsh offered no clear trigger or timetable for further tightening, according to reports from the Bank of Korea’s overseas offices. The assessments were contained in the BOK Washington office’s review of the July Federal Open Market Committee meeting and the New York of July 30, 2026 -
BOK steps up vigilance on Fed uncertainty and Gulf risks SEOUL, July 30 (AJP) -South Korea's central bank said Thursday it would step up monitoring of domestic financial markets, citing mounting uncertainty over U.S. monetary policy and Middle East tensions layered on top of existing investor unease about a possible slowdown in artificial intelligence investment. The Bank of Korea (BOK) convened an emergency market review meeting at 8 a.m. local time, chaired by Deputy Governor Park Jong-woo, to evaluate global market developments f July 30, 2026 -
Korea's factory sentiment hits 4-year high on AI chip, shipbuilding boom SEOUL, July 30 (AJP) - South Korea's manufacturing confidence climbed to its highest level in more than four years in July as a wave of AI-related semiconductor investment, data-center construction and strong shipbuilding and defense orders boosted factory activity, Bank of Korea data showed Thursday. The manufacturing Composite Business Sentiment Index (CBSI) rose 2.0 points from June to 103.2, its highest reading since June 2022 and the third straight month above the long-te July 30, 2026 -
BOK chief argues rate-hike bias best to contain inflation SEOUL, July 29 (AJP) -Bank of Korea Governor Shin Hyun-song on Wednesday said maintaining a rate-hike bias was the most appropriate way to contain inflation, while stressing that the timing and pace of any further tightening would depend on incoming data and economic conditions. Shin made the remarks at a National Assembly Finance, Economy, Planning and Budget Committee meeting after Democratic Party lawmaker Yoon Hu-deok asked whether the central bank planned to raise rates once July 29, 2026 -
Financial regulators to probe leveraged ETFs amid market volatility, policy chief says SEOUL, July 29 (AJP) - Financial authorities will thoroughly review factors behind heightened stock-market volatility, presidential policy chief Kim Yong-beom said on Tuesday during a press briefing in São Paulo, Brazil, while accompanying President Lee Jae Myung on a state visit. Kim said the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) would examine why volatility in South Korean equities tends to be unusually high, while rejecting claims July 29, 2026 -
Finance chief raises growth outlook as South Korea nears $40,000 per-capita income SEOUL, July 24 (AJP) - Deputy Prime Minister and Finance Minister Koo Yun-cheol said Friday that stronger-than-expected economic growth has put South Korea on track for annual growth of around 3 percent and per-capita income of US$40,000, although many households have yet to feel the effects of the stronger economy. The finance chief said the economy had sustained its growth momentum after a robust first quarter. "The likelihood of achieving 3 percent annual growth and per-c July 24, 2026 -
Seoul weighs separate crypto custody regime SEOUL, July 23 (AJP) - South Korea’s financial regulator is considering establishing cryptocurrency custody as a separate regulated business as it prepares to expand corporate access to the country’s digital asset market. The Financial Services Commission is reviewing licensing requirements and conduct rules for custody providers under the government’s planned second-phase digital asset legislation, Kim Sung-jin, director of the FSC’s Virtual Asset Division, July 23, 2026 -
Nearly half of jobless young Korean graduates out of work for over a year SEOUL, July 23 (AJP) -Nearly half of South Koreans aged 15 to 29 who had completed their education but were not working had remained without employment for at least a year as of May, the highest share since the global financial crisis. Nearly two in 10 — a record high — had gone at least three years without work, pointing to a widening pool of young adults left on the sidelines. The proportion of graduates unemployed for at least one year rose 2.0 percentage points July 23, 2026