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Corporate borrowing picks up amid slowing household loans SEOUL, September 09 (AJP) - Bank loans showed mixed trends last month, with corporate borrowing accelerating while household loan growth slowed despite an increase in mortgage-related lending. Household loans increased by 3.4 trillion won (US$2.5 billion) in August, easing from a 5.5 trillion won rise in July, according to data released by the Bank of Korea (BOK) on Wednesday. Corporate loans expanded by 9.7 trillion won, up from 7.7 trillion won a month earlier. The slowdown in household borrowing masked a different trend in housing-related lending. Mortgage loans increased by 4 trillion won, up from 3.5 trillion won in July, as housing transactions in the Seoul metropolitan area and increased housing supply supported demand. Loans for jeonse, South Korea's lump-sum deposit lease, continued to fall, declining by 700 billion won after an 800 billion won drop in July. Other household loans including unsecured credit and overdraft loans fell by 600 billion won after rising by 2.0 trillion won a month earlier. The BOK attributed the decline to weaker individual stock investment and tighter management of credit loans by banks. The figures showed that overall household loan growth was easing, even as mortgage demand remained high. Household loans through banks increased by 24.5 trillion won during the first eight months of this year, below the 27.3 trillion won increase recorded over the same period last year. Mortgage borrowing rose by 17.3 trillion won during the period, compared with 27.7 trillion won a year earlier. Other household loans increased by 7.2 trillion won after declining by 300 billion won during the first eight months of 2025. Corporate borrowing moved in the opposite direction. Bank loans to companies increased by 9.7 trillion won in August, exceeding both July's 7.7 trillion won increase and the 8.4 trillion won gain recorded a year earlier. Loans to large companies rose by 4.9 trillion won, up from 3.8 trillion won, as banks stepped up lending and companies sought funds partly to repay corporate bonds. Loans to small and midsized enterprises increased by 4.8 trillion won from 3.9 trillion won, supported in part by expanded financing programs at some banks. The shift extended a trend seen in July, with companies relying more heavily on bank credit while the corporate bond market remained in net repayment. Corporate bank loans increased by 66.9 trillion won during the first eight months of this year, compared with 39.7 trillion won during the same period in 2025. Corporate bonds, meanwhile, recorded 17.2 trillion won in net repayments over the period, reversing from net issuance of 3.9 trillion won a year earlier. Bonds remained in net repayment by 900 billion won in August after 1.9 trillion won in July, as higher interest rates raised issuance costs and the market entered a seasonal lull. Commercial paper and short-term notes recorded net issuance of 4.1 trillion won, little changed from 4 trillion won in July, supported by working-capital demand from some public enterprises. Higher market rates continued to add pressure to corporate funding conditions. The three-year government bond yield rose to 3.84 percent at the end of August from 3.76 percent at the end of July, while the 10-year yield climbed to 4.31 percent from 4.26 percent. The BOK attributed the increase to higher oil prices following renewed tensions in the Middle East, changing monetary policy expectations at home and abroad and higher long-term government bond yields in major economies. Short-term market rates also rose sharply following the BOK's August policy rate increase. The yield on three-month bank bonds rose to 3.21 percent from 2.99 percent, while the 91-day certificate of deposit rate increased to 3.12 percent from 2.95 percent. Financial flows also reversed some of July's sharp movements. Asset managers received 23.5 trillion won in August after recording a 42.8 trillion won decline in July, led by a 15.5 trillion won increase in equity funds. Bond funds, by contrast, declined by 300 billion won after increasing by 700 billion won in July as market interest rates rose. Bank deposits edged up by 100 billion won after falling by 30.0 trillion won in July. Time deposits increased by 20.3 trillion won as household funds returned and local governments temporarily deposited cash. The KOSPI ended August at 6,820, up from 6,595 at the end of July, while the KOSDAQ climbed to 834 from 720. The BOK said investor sentiment improved further in early September amid strength in U.S. technology shares, pushing the KOSPI close to 7,000. AJP Takeaways - South Korea's bank household loans increased by 3.4 trillion won in August, slowing from July even as mortgage lending accelerated to 4.0 trillion won. - South Korea's corporate bank loans increased by 9.7 trillion won, with companies continuing to rely on banks and corporate bonds remaining in net repayment. - South Korea's market rates rose further in August, and asset-manager inflows rebounded amid an equity-market recovery from July's decline. September 9, 2026 1 -
Bitcoin Drops to $78,000 Amid Rising Oil Prices Bitcoin prices have fallen to the upper $70,000 range. Analysts attribute this decline to increased speculation about interest rate hikes by the Federal Reserve ahead of the release of U.S. inflation data, coupled with rising oil prices from the Middle East, which have heightened inflation concerns.As of 8 a.m. on September 9, Bitcoin was trading at $78,510, down 0.59% from the previous day, according to global cryptocurrency market site CoinMarketCap.Recently, Bitcoin surpassed $82,000 last week, reaching its highest level in nearly three months, but has since dropped back to the $70,000 mark. The surge past $80,000 triggered profit-taking, and growing uncertainty surrounding U.S. monetary policy has hindered further gains.The spike in international oil prices is also putting pressure on cryptocurrency investment sentiment. With rising military tensions in the Middle East, Brent crude oil prices have approached $99 per barrel. Higher oil prices can increase inflationary pressures, making it more difficult for the U.S. to ease its monetary policy. In fact, U.S. stock markets have seen major indices decline amid concerns over rising oil prices and inflation.Investors are adopting a wait-and-see approach ahead of the upcoming release of the U.S. Producer Price Index (PPI) for August on September 10 and the Consumer Price Index (CPI) on September 11. The market anticipates a 0.4% increase in the August CPI compared to the previous month, with core CPI expected to rise by 0.2%. If inflation figures come in higher than expected, the likelihood of a rate hike by the Federal Reserve could increase, which would weigh on risk assets like Bitcoin.The potential for an increase in the U.S. benchmark interest rate is also contributing to the decline in cryptocurrency prices. Last month, stronger-than-expected U.S. employment data has bolstered expectations that the Federal Reserve may raise rates at its upcoming Federal Open Market Committee (FOMC) meeting on September 16.However, aside from Bitcoin, major altcoins are showing upward trends. Ethereum has risen 0.23% to $2,488. Tether is up 0.01% to $0.99, while Ripple (XRP) has increased by 2.13% to $1.41.Meanwhile, at 8 a.m. on the same day, Bitcoin was trading at 106,500,000 won (approximately $79,385) on Bithumb, reflecting a Kimchi premium of 1.306%, indicating that domestic prices are higher than international rates.* This article has been translated by AI. September 9, 2026 0 -
Japanese yen and bonds rally as BOJ tightening bets build SEOUL, September 08 (AJP) - The Japanese yen and long-dated government bonds rallied together Tuesday as investors priced faster tightening by the Bank of Japan (BOJ) alongside lower longer-term inflation risks. The yen strengthened as far as 152.89 per dollar, its strongest level since Feb. 17, before returning to around 153.3. Japan's 10-year government bond yield fell 4 basis points to 2.890 percent in morning trading. Ataru Okumura, senior rate strategist at SMBC Nikko Securities Inc., said underlying inflation was already around 2 percent and the BOJ was increasingly expected to accelerate the pace of rate hikes. The simultaneous gains in the currency and bonds reflected different expectations at the short and long ends of Japan's rate market. The 20-year Japanese government bond (JGB) yield fell 5 basis points to 3.695 percent, while the 30-year yield dropped 5.5 basis points to 3.965 percent. The policy-sensitive two-year yield declined a smaller 1.5 basis points to 1.835 percent, flattening the yield curve. Expectations of another BOJ rate increase strengthened after economic data suggested Japan could withstand tighter monetary policy. Japan's economy expanded at an annualized 1.4 percent rate in the second quarter, revised up from 1.1 percent. Real wages rose 2.4 percent from a year earlier in July, their strongest increase since May 2021. Markets were pricing about a 97 percent probability that the BOJ would raise its policy rate by 25 basis points next week. Expectations of further tightening were also building. A stronger yen meanwhile reduced longer-term inflation pressure by lowering the local-currency cost of imported energy, raw materials and other goods. JGB futures rose in early Tokyo trading as investors focused on the stronger currency's potential to ease inflationary pressure even as expectations for BOJ tightening remained intact. Japan's current yield levels have also changed the incentives that helped sustain years of yen weakness. The 10-year yield briefly exceeded 3 percent earlier this month, reaching its highest level in about three decades before retreating toward 2.9 percent this week. Higher Japanese yields reduced the appeal of yen-funded carry trades, giving investors less incentive to borrow cheaply in Japan and shift funds into higher-yielding overseas assets. Cross-border yen borrowing reached 360 trillion yen in March, leaving a large pool of positions potentially exposed to a rapid appreciation of the currency. Previous BOJ rate increases and foreign-exchange intervention had failed to provide lasting support for the yen. The latest move instead combined tightening expectations with potential capital repatriation and an unwind of carry trades. Japan and the United States have also maintained a more explicit focus on the currency since their joint intervention in July. Japanese Finance Minister Satsuki Katayama said Tuesday that Tokyo and Washington remained aligned on maintaining stable foreign-exchange markets and continued to communicate closely on currency policy. Positioning accelerated Tuesday's move as traders closed bearish yen bets after USD/JPY broke key support levels, helping push the exchange rate briefly into the 152 range. The shift also reached South Korean markets, although domestic factors remained important. The won traded at 1,338.95 per dollar in late-morning Seoul trading after touching 1,336.3. Exporter dollar selling, foreign equity purchases and yen strength added downward pressure on USD/KRW. Korean government bonds strengthened across the curve at the morning session close. The three-year yield fell 2.4 basis points to 3.876 percent, while the 10-year yield declined 2.3 basis points to 4.362 percent. The 20-year yield fell 2.1 basis points to 4.546 percent, while the 30-year yield dropped 2.4 basis points to 4.607 percent. Won strength was also supported by semiconductor exports and exporter dollar selling, while Korean bonds continued to reflect domestic monetary-policy and government-bond supply expectations. Tuesday's moves reflected more than a simple rise in expectations for higher Japanese policy rates. Investors increasingly distinguished between tighter BOJ policy at the short end and lower longer-term inflation risk, allowing the yen and long-dated JGBs to strengthen together while adding support to neighboring Korean markets. AJP Takeaways - Japanese yen strengthened to 152.89 per dollar Tuesday, its strongest level since Feb. 17, as BOJ tightening expectations and short-position unwinding accelerated. - Japanese government bonds rallied at the long end as yen appreciation reduced imported-inflation pressure despite expectations for another BOJ rate increase. - South Korean markets moved in the same broad direction, with the won strengthening into the 1,330 range and Korean government bond yields falling through the 30-year maturity. September 8, 2026 1 -
Yen Falls to 152 Against Dollar, Ending '160 Yen Era'? The yen fell to around 152 against the dollar on the morning of September 8. The exchange rate had approached 164 yen in late July but dropped to the low 155 yen range following a joint intervention by the U.S. and Japan. However, it returned to the 160 yen level by the end of August. Just a week later, the yen plummeted nearly 8 yen to the 152 range. The break of the previously strong 155 yen support level prompted not only short-term speculators but also long-term investors to liquidate their yen positions. Market observers are divided on whether the yen will hover in the mid-150s for the time being or trend back toward 160 yen as the year progresses. In Tokyos foreign exchange market, the yen-dollar exchange rate briefly dropped to 152.88 yen, nearing this years low of 152.11 yen recorded on January 28. The euro-yen exchange rate also fell to 178.86 yen, the lowest level since mid-November of last year. Trading was subdued the previous day due to the U.S. Labor Day holiday. Amid this backdrop, the exchange rate quickly broke below the 155 yen mark. The Nihon Keizai Shimbun reported on September 8 that the breakdown of the 155 yen level, which had served as a strong support during Japans unilateral interventions in April and the U.S.-Japan joint intervention at the end of July, led to a surge in stop-loss dollar selling and yen buying, accelerating the downward trend. Analysts suggest that this decline is not limited to short-term speculators. Yusuke Okada, a senior researcher at Mitsubishi UFJ Trust Bank, stated, Both hedge funds and long-term investors are unwinding their yen selling and dollar buying positions, indicating a shift in market dynamics. The backdrop for this position liquidation is the expectation that the Bank of Japan (BOJ) will accelerate its interest rate hikes. BOJ Governor Kazuo Ueda hinted at the possibility of rate increases during a press conference on September 1. The market is nearly pricing in a 0.25 percentage point increase in the policy rate at the BOJs monetary policy meeting scheduled for September 17-18. There are also growing expectations that the BOJ may continue to raise rates every three months or that the terminal rate could be higher than previously anticipated. If this occurs, the interest rate differential between the U.S. and Japan may narrow more quickly, reducing the appeal of trading yen for dollars. Additionally, concerns about potential joint intervention by U.S. and Japanese authorities are encouraging yen buying. U.S. Treasury Secretary Scott Vessenst recently reiterated strong support for Japan taking decisive market and monetary policy actions to address the yens significant undervaluation. Following these remarks, speculation has increased that U.S. and Japanese authorities may engage in joint intervention to correct the yens depreciation. However, there are cautious views regarding whether the recent drop in the exchange rate was indeed a result of actual intervention. Mitsuhiro Ueda, a foreign exchange analyst at Daiwa Securities, told Asahi Shimbun on September 7, If it were actual intervention, the yen would have appreciated much more sharply than this. Moreover, expectations for easing tensions in the Middle East have weakened dollar buying pressure. On September 7, Irans Foreign Ministry announced that negotiations with Oman regarding a temporary route in the Strait of Hormuz have entered the final stages, with a potential agreement possible within days. This has tempered the movement to buy dollars amid Middle East instability, and expectations are growing that Japans trade balance will improve if international oil prices stabilize. Forecasts Suggest Yen Could Fall to 149 The 155 yen level that was breached the previous day may now act as a resistance level against further increases in the exchange rate. Makoto Noji, a senior foreign exchange and foreign debt strategist at SMBC Nikko Securities, told Nikkei on September 7 that even if the exchange rate rebounds, there is a high likelihood of yen buying orders coming in as it approaches 155 yen, suggesting a potential drop to 152 yen this week. He added that if the BOJ raises rates and adopts a more hawkish stance at the meeting on September 17-18, the yen could fall to 150 yen. Shusuke Yamada, a senior Japan foreign exchange and interest rate strategist at Bank of America Securities, noted that the yen has strengthened not only against the dollar but also against other currencies, viewing the recent decline in the exchange rate as a correction of excessive yen depreciation, and he forecasts an exchange rate of 149 yen by year-end. However, there are also predictions that the yen-dollar exchange rate could rise back to the 160 yen level. According to the Yomiuri Shimbun, Tsuyoshi Ueno, a senior economist at NLI Research Institute, stated that the BOJ may find it difficult to raise rates beyond market expectations, and concerns about expansionary fiscal policy during the year-end budget formulation process may resurface, leading to a rebound in the exchange rate toward 160 yen as the year progresses. Daisuke Karakama, a chief market economist at Mizuho Bank, mentioned to Nikkei that while there is a possibility of the exchange rate falling below 150 yen this year, long-term pressures for yen selling, such as increasing foreign direct investment and a growing digital deficit, remain, indicating that the risk of a renewed yen depreciation toward 160 yen persists.* This article has been translated by AI. September 8, 2026 1
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KOSPI Recovers Above 7000 Amid Semiconductor Stabilization and Battery Strength The KOSPI opened higher on September 8, recovering above the 7000 mark during trading. This is the first time the index has surpassed 7000 since August 18. Following a sharp rise the previous day, Samsung Electronics and SK Hynix entered a period of stabilization, while secondary battery stocks and some semiconductor materials showed strength.As of 9:05 a.m., the KOSPI was up 26.97 points (0.39%) at 7022.36, having briefly reached 7047.91 during the session.In the securities market, individual investors have net purchased 59.4 billion won, while foreign and institutional investors have net sold 71.5 billion won and 5.7 billion won, respectively.Among the top market capitalization stocks, Samsung Electronics remained steady at 270,000 won, and SK Hynix also held at 1,783,000 won. LG Energy Solution (up 1.24%), Samsung Biologics (up 0.48%), and KB Financial (up 1.65%) saw gains, while Samsung Electro-Mechanics (down 1.79%), SK Square (down 0.62%), and Hyundai Motor (down 0.38%) faced declines.The KOSDAQ index rose by 6.01 points (0.73%) to 828.20. Individual investors net purchased 13 billion won, while foreign and institutional investors net sold 500 million won and 11.5 billion won, respectively.In the KOSDAQs top market capitalization stocks, JUSUNG Engineering increased by 4.43%. Other gainers included HPSP (up 3.56%), EcoPro (up 3.03%), IOTech (up 2.74%), EcoPro BM (up 2.72%), Simtec (up 2.59%), Rino Industry (up 2.49%), and Wonik IPS (up 2.21%).Meanwhile, U.S. markets were closed for Labor Day. European markets showed mixed results ahead of the European Central Banks (ECB) monetary policy meeting, influenced by rising international oil prices and government bond yields. The German DAX and the UK FTSE 100 fell by 0.15% and 0.08%, respectively, while the French CAC 40 and Euro Stoxx 50 rose by 0.33% and 0.17%.International oil prices increased amid ongoing military tensions between the U.S. and Iran, with Brent crude briefly surpassing $98 per barrel. Factors contributing to the rise included reduced shipping through the Strait of Hormuz and the OPEC Pluss decision to maintain existing policies.Seo Sang-young, a researcher at Mirae Asset Securities, stated, European government bond yields have risen as expectations for ECB interest rate hikes have intensified, particularly following the strong performance of far-right parties in Germanys regional elections, highlighting concerns over fiscal deficits. We believe that the ECBs influence and political issues will continue to impact the market in the second half of the year.He added, The dollar weakened against other currencies due to the strength of the yen, which has been bolstered by expectations of a faster pace of interest rate hikes by the Bank of Japan and the emergence of new government policies in Japan. September 8, 2026 0
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Market Preview: U.S. Holiday and Mixed European Markets Amid Semiconductor Profit-Taking U.S. markets were closed for Labor Day, while European stocks showed mixed results amid anticipation of the European Central Bank (ECB) monetary policy meeting, rising international oil prices, and concerns over increasing government bond yields in major countries. The domestic market is expected to see profit-taking in semiconductor stocks, which surged the previous day.On September 8, financial investment industry sources reported that the German DAX and the UK FTSE 100 indices fell by 0.15% and 0.08%, respectively, while the French CAC 40 and Euro Stoxx 50 indices rose by 0.33% and 0.17%. European semiconductor stocks, including Infineon (up 6.91%) and ASML (up 2.25%), showed strength.International oil prices and government bond yields in Europe increased. Brent crude oil briefly surpassed $98 per barrel amid ongoing military tensions between the U.S. and Iran. The outlook for ECB interest rate hikes and concerns over budget deficits following elections in Germanys Saxony-Anhalt also contributed to upward pressure on bond yields.The domestic market may enter a consolidation phase early in the trading session, particularly in semiconductor stocks. As of 8:15 a.m. in the NXT pre-market, Samsung Electronics was trading at 269,500 won, down 0.19% (500 won) from the previous trading day. SK Hynix also recorded a decline of 0.17% (3,000 won), trading at 1,786,000 won. Other major semiconductor and technology stocks, including SK Square (-0.27%), Hanmi Semiconductor (-0.62%), and Samsung Electro-Mechanics (-0.55%), were also in the red.The previous day, the domestic market surged due to strong U.S. employment data for August, which raised concerns about a potential interest rate hike by the Federal Reserve in September, but was buoyed by optimism surrounding artificial intelligence (AI). Samsung Electronics and SK Hynix led the indexs rise, increasing by 5.7% and 8.3%, respectively.Han Ji-young, a researcher at Kiwoom Securities, stated, Today, we expect profit-taking to occur following yesterdays short-term surge, influenced by the direction of U.S. 10-year Treasury yields and news flow related to the U.S.-Iran situation, leading to sector differentiation in the market.Recently, the domestic market has shown clear sector rotation. Sectors that performed well last month, such as cosmetics, IT electronics, chemicals, and non-ferrous metals, have seen declines of 7.9%, 4.9%, 4.3%, and 4.0%, respectively, this month. In contrast, semiconductors, which fell by 1.5% last month, have risen by 5.2% as of September 7, placing them among the top-performing sectors, alongside energy, which rose by 5.7%.Notably, foreign investors net bought approximately 2.6 trillion won in the KOSPI, with 2.3 trillion won specifically in the semiconductor sector. Whether this buying trend continues during the price correction phase will be a key factor influencing semiconductor stock movements.A researcher noted, The important aspect is whether the continuity of foreign net buying is maintained during the price correction phase. We will also watch for sector rotation into other AI infrastructure sectors, such as IT hardware and power equipment, as well as consumer goods and shareholder return-related sectors, during this period of consolidation for semiconductors.They added, If this virtuous cycle of sector rotation continues, it will support our previously suggested scenario of the KOSPI breaking above the 7,000 mark in September and establishing a recovery path with higher lows.* This article has been translated by AI. September 8, 2026 0
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Bitcoin Retreats to Below $80,000 Amid Caution Ahead of U.S. CPI Release Bitcoin has fallen back to the high $70,000 range, failing to maintain its position above $80,000. This decline is attributed to growing caution regarding the Federal Reserves monetary policy ahead of the U.S. Consumer Price Index (CPI) announcement.As of 8 a.m. on September 8, Bitcoin was trading at $78,933, down 1.39% from the previous day, according to global cryptocurrency market site CoinMarketCap.Major altcoins also experienced declines. Ethereum dropped 0.96% to $2,481, while Ripple (XRP) fell 2.40% to $1.38. Solana decreased by 2.47% to $103.35, and Binance Coin (BNB) was down 1.86% at $737.18.Recently, Bitcoin had been on an upward trend, supported by demand for gold and Bitcoin as a hedge against concerns over U.S. fiscal health and the Treasurys expansion of long-term bond purchases. After dropping to just above $60,000, Bitcoin had recently recovered to the $80,000 mark.However, the upcoming release of the U.S. Producer Price Index (PPI) and CPI on September 10 and 11 appears to have halted this upward momentum. Market expectations regarding the Federal Reserves interest rate decision for September may shift based on these inflation indicators, leading to increased caution among investors.Meanwhile, at 8 a.m. on Bithumb, Bitcoin was trading at 10,757,000 won (approximately $79,863), reflecting a 0.25% decrease from the previous day. The so-called Kimchi premium, which indicates the extent to which domestic prices exceed international prices, was recorded at 1.306%.* This article has been translated by AI. September 8, 2026 0
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Semiconductor Boom Fails to Boost Domestic Economy, Echoes of the 1990s The Hyundai Economic Research Institute has raised concerns about the South Korean economy, noting that while the semiconductor sector is thriving, domestic consumption is declining.In August, exports surged by 68.7% compared to the previous year, driven by strong semiconductor sales. The semiconductor sectors share of total exports jumped from 25.9% to 47.5%. However, retail sales in July fell by 2.4% from the previous month. The growth rate of household income, after government support was withdrawn, worsened from -0.3% in the first quarter to -1.3% in the second quarter.The youth unemployment rate rose to 6.8%, an increase of 1.3 percentage points from a year ago, with the number of employed young people declining for the 45th consecutive month. Despite record semiconductor exports, household sentiment has soured, illustrating a K-shaped polarization in the economy. This situation is reminiscent of past experiences where the boom in a specific industry obscured the overall economic picture, often with disappointing outcomes.The most painful precedent occurred between 1994 and 1995, when the three major semiconductor companies recorded an average growth rate of 98%. Manufacturing capacity utilization reached a historic high of 85.4%, and the unemployment rate fell to 1.9%. Many hailed it as the greatest boom since the founding of the nation.A Samsung Electronics official confidently stated that supply would not be able to keep up with demand until the early 2000s. However, the market shifted unexpectedly. By late 1995, DRAM prices began to decline, plummeting by 51% in 1996 and 65% in 1997. Currency and stock prices also fluctuated dramatically, culminating in a financial crisis by the end of that year.At the time, Kang Man-soo, then Vice Minister of Finance and Economy, later reflected that the semiconductor boom had blinded them to the downturn in other sectors. They were intoxicated by the numbers of the boom, while warning signs accumulated unnoticed.The second case mirrors the current situation. Recently, the top 10 companies in the semiconductor supercycle accounted for over 50% of exports for the first time. In contrast, exports from medium and small enterprises remained around 10%. The employment multiplier for the semiconductor industry is two jobs per 1 billion won, while the manufacturing average is six jobs, and the automotive and shipbuilding sectors generate seven jobs.Even with booming semiconductor sales and rising exports, job creation remains stagnant. Most of the gains in the KOSPI index are concentrated in Samsung Electronics and SK Hynix. Individual investors are heavily borrowing to invest in these two companies, creating a distorted perception of the export boom that is spilling over into the asset market.Japan is experiencing a similar situation, with its current account surplus and overseas dividend income reaching record highs. However, household consumption has declined for four consecutive months, with 55% of respondents indicating they feel financially strained. This disparity between corporate profits and household finances exemplifies K-shaped polarization.All three cases share a common message: the boom in a specific industry does not guarantee the overall health of the economy. Ignoring this gap can exacerbate asset market concentration. If household debt burdens are factored in, future shocks could be even more severe.South Korea currently faces the risks highlighted in these three cases: reliance on the semiconductor sector, asset market concentration, and stagnation in household purchasing power. This complicates monetary policy, making it difficult to tighten measures aimed at controlling inflation and debt. A nuanced approach, including sector-specific responses like adjusting fuel taxes and supporting vulnerable groups and small businesses, is necessary. Policies must be carefully tailored to each industry to facilitate a soft landing.The boom of 1995 serves as a reminder that when indicators look good, it is crucial to examine the underlying issues. This should not be dismissed as overly cautious; rather, it calls for heightened vigilance. September 7, 2026 1
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Global Financial Markets on Edge as U.S.-Iran Conflict Drives Oil Prices Higher As the military conflict between the United States and Iran continues, volatility in global financial markets is increasing ahead of the U.S. consumer price index (CPI) release for August and key monetary policy meetings in major economies. With escalating tensions in the Middle East causing a surge in international oil prices, there is growing concern that higher-than-expected inflation in the U.S. could lead to an increased likelihood of interest rate hikes by the Federal Reserve.According to the International Financial Center, Brent crude oil prices rose by 7.80% to $96.28 per barrel on September 4, compared to the previous weekend. The ongoing military conflict has significantly reduced the number of vessels passing through the Strait of Hormuz, a crucial oil transport route. Market analysts are increasingly worried about potential disruptions to oil supply, as the likelihood of a swift resolution to the conflict diminishes.OPEC+, the coalition of major oil-producing countries, has decided to maintain its current production policy in October. However, due to the impact of the Middle Eastern conflict, actual supply levels are falling well short of targets, suggesting continued uncertainty in oil prices.The upcoming U.S. CPI report, scheduled for release on September 11, is expected to be a key factor influencing the Feds monetary policy direction. Analysts predict that the headline CPI will show a year-over-year increase of 3.4%, remaining unchanged from the previous month, while the month-over-month increase is expected to rise from 0.1% to 0.4%. Core CPI is projected to increase by 2.4% year-over-year and 0.2% month-over-month. Given the persistent inflation concerns, the Feds interest rate trajectory may shift based on the detailed indicators.Additionally, the European Central Bank (ECB) monetary policy meeting scheduled for September 10 is another variable to watch. The market anticipates a 0.25 percentage point increase in key policy rates, with attention focused on whether further rate hike signals will be issued.The strengthening of the Japanese yen has also emerged as a factor that could influence global capital flows. The yen appreciated by 2.45% against the dollar last week, reaching 156.26 yen. Factors contributing to the yens strength include expectations of further interest rate hikes by the Bank of Japan, potential selling of foreign bonds by Japanese investors, and a narrowing interest rate gap between the U.S. and Japan.If the interest rate gap between the U.S. and Japan continues to narrow, there may be a reduction in yen carry trades. Market estimates suggest that positions betting on a weaker yen could amount to as much as 17 trillion yen, and if these positions are fully liquidated, the dollar-yen exchange rate could drop to between 142 and 146 yen. Nomura has analyzed that, in an extreme scenario, the Bank of Japan could implement three consecutive interest rate hikes.* This article has been translated by AI. September 7, 2026 0
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Real Estate Trends: Gangnam Prices Fall While Gangbuk Sees Gains The Seoul apartment market is experiencing diverging price trends between the Gangnam and Gangbuk areas. While prices in Seocho and Gangnam districts are declining, Gangbuk, which includes Seongbuk and Nowon districts, has seen prices rise by around 0.5%, driving the overall increase in Seoul housing prices.According to the Korea Real Estate Agencys weekly apartment price trends report released on September 3, the rate of increase in Seoul apartment sales was 0.22%, a decrease of 0.07 percentage points from the previous week’s 0.29%. While key areas in Gangnam are experiencing declines, Gangbuk is showing a notable increase, highlighting a clear regional disparity.Gangnam Buyer Sentiment Drops, Gangbuk Sees GrowthLooking at the detailed figures, among the three districts in Gangnam, Gangnam District recorded a decline of -0.41%, widening its drop by 0.3 percentage points from the previous week. Seocho District fell by 0.23%, a decrease of 0.18 percentage points. Songpa District saw a slight increase of 0.01%, but this was a reduction of 0.08 percentage points from the previous week, nearing a stable range.In contrast, the previously considered outer Gangbuk area is showing a clear upward trend. Seongbuk District recorded the highest increase at 0.54%, followed by Jungnang at 0.52%, Nowon at 0.5%, and Gangbuk at 0.45%.A similar trend is observed in the rental market. During the same period, Seoul apartment rents rose by 0.21%, while Gangnam and Seocho districts recorded declines of -0.13% and -0.1%, respectively. Conversely, Seongbuk and Gangbuk districts saw increases of 0.38%, and Nowon and Dobong districts rose by 0.37% and 0.32%, respectively.The KB Real Estate Weekly KB Apartment Market Trends report released on the same day also confirmed the price differences between Gangnam and Gangbuk. Gangnam District recorded a decline of -0.04% for the third consecutive week, while Nowon District saw an increase of 0.63%, and Dobong District rose by 0.45%, ranking first and second, respectively.In the rental market, Gangnam District recorded a decline of -0.03% for the third consecutive week, while Nowon Districts increase of 0.46% surpassed the average rental increase in Seoul of 0.19%.A representative from KB Real Estate stated, In Gangnam, buyers and sellers have adopted a wait-and-see approach amid ongoing discussions regarding the revised tax reform plan, leading to a slowdown in transactions. In contrast, in Nowon District, affordable listings are being quickly absorbed, causing prices of newly listed properties to rise as well.Tax Reform and Interest Rate Hikes Prompt Caution in Gangnam, While Outer Areas AdjustThe weakness in the core Gangnam area is attributed to uncertainties surrounding tax reforms targeting high-priced homes and other policy uncertainties.On August 3, the government announced a tax reform plan for 2026, which included adjustments to the comprehensive real estate tax and capital gains tax systems. Initially, it proposed reducing the basic deduction for non-resident homeowners and increasing the tax burden cap, but on September 1, it reversed its stance to maintain the current system, increasing policy uncertainty within a month.Financial conditions have also played a role. The Bank of Koreas Monetary Policy Committee raised the base interest rate from 2.75% to 3.00% on August 27. Although the government expanded the total supply capacity for household loans on August 13, it decided to maintain key regulations such as loan-to-value (LTV) and debt service ratio (DSR), indicating that the burden of financing high-priced homes remains significant.In contrast, mid-range areas are supported by relatively lower purchase prices and genuine demand. Homebuyers, facing price burdens and limited inventory, are turning their attention to Gangbuk, where financing challenges are less severe.Kim In-man, head of Kim In-man Real Estate Research Institute, stated, Due to the recent impacts of tax reforms and loan regulations, there has been an increase in properties for quick profit realization in Gangnam, while buyers are adjusting their expectations in the outer areas of Seoul. For the time being, the buying trend is expected to continue in Gangbuk and the outskirts of Seoul.* This article has been translated by AI. September 5, 2026 0
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KOSPI Faces Volatility Amid Geopolitical Tensions and U.S. Inflation Data The KOSPI index fell over 1% this week due to renewed geopolitical risks and rising interest rate concerns. Next week, the domestic market is expected to experience increased volatility ahead of U.S. inflation data and the simultaneous expiration of futures and options. Analysts suggest that while the U.S.-Iran conflict and fluctuations in international oil prices may pose short-term challenges, strong semiconductor exports and expectations of a U.S. interest rate freeze could provide support.According to the Korea Exchange, the KOSPI dropped 1.50% during the week of August 31 to September 4. The KOSDAQ also fell by 2.97% during the same period.This week, the domestic market faced heightened volatility as geopolitical tensions between the U.S. and Iran escalated. The U.S. conducted direct strikes against Iran, resuming hostilities and diminishing hopes for normalization in the Strait of Hormuz, which led to a sharp rise in international oil prices. Coupled with a rise in global long-term interest rates, the KOSPI plummeted nearly 4% in a single day on September 2.However, by the end of the week, the rise in U.S. long-term interest rates stabilized, and dovish comments from Federal Reserve officials helped restore some investor sentiment. On September 4, the KOSPI closed at 6,687.21, up 107.73 points (1.64%) from the previous trading day, driven by rebounds in semiconductor stocks such as Samsung Electronics and SK Hynix. Foreign and institutional investors also supported the indexs rise, with net purchases of 943.4 billion won and 1.9273 trillion won, respectively.Market analysts identify U.S. inflation and interest rate trends as key variables for next week. The U.S. is set to release its Producer Price Index (PPI) on September 10 and Consumer Price Index (CPI) on September 11, drawing attention to how these figures may influence the Federal Reserves monetary policy in September.Recent disappointing U.S. employment data has emerged as a factor supporting a freeze on interest rates. The ADP private employment report for August showed an increase of only 38,000 jobs, falling short of market expectations, while job openings also came in below forecasts. Coupled with dovish remarks from Fed officials, concerns about a rate hike in September have eased somewhat.However, rising international oil prices add uncertainty to the inflation outlook. Continued tensions between the U.S. and Iran could lead to higher oil prices and increased inflation expectations, potentially pushing long-term interest rates back up. The U.S. CPI for August is projected to rise by 3.4% year-on-year, and if inflation comes in higher than expected, it could weigh on the stock market.On a positive note, the fundamentals of the semiconductor sector remain relatively strong. South Koreas exports in August reached $98.3 billion, a 68.7% increase from the previous year, with the average daily export growth rate for semiconductors at 216%. As semiconductor exports continue to perform well, analysts believe there will be little change in profit outlooks for the sector.Na Jeong-hwan, a researcher at NH Investment & Securities, stated, Recent stock price volatility has clearly decreased from its peak, and semiconductor fundamentals are in good shape. The semiconductor sector accounts for over 70% of KOSPI net profits, and with the growth rate of semiconductor exports expanding, it is essential to maintain a strategy focused on this sector.However, next week will see the simultaneous expiration of futures and options on September 10, which could lead to increased short-term volatility due to supply and demand factors. With trading volumes in the domestic market significantly declining, fluctuations in foreign investors positions in cash and futures could lead to larger index movements.Na added, Given the decrease in trading volume coinciding with the simultaneous expiration, short-term stock price volatility may increase depending on the direction of foreign investors cash and futures investments. While maintaining a focus on semiconductors, it is also important to consider sectors that may benefit from secondary batteries and AI platforms and services if upward momentum slows.Positive forecasts have also emerged regarding the domestic economy and the won. Samsung Securities highlighted the potential for a large current account surplus due to soaring semiconductor prices to translate into increased domestic consumption through government spending and corporate investment. As a result, they have revised their year-end forecast for the won-dollar exchange rate from 1,380 won to 1,300 won, and for next year, from 1,300 won to 1,250 won.Heo Jin-wook and Jeong Seong-tae, researchers at Samsung Securities, noted, The South Korean economy is entering a phase where unprecedented positive terms of trade shocks are materializing due to soaring semiconductor prices driven by a global AI investment boom. We expect that the significant income increase effects will gradually spread throughout the domestic economy as we move through the second half of this year.* This article has been translated by AI. September 5, 2026 0
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Yen Falls Sharply Against Dollar Amid Speculation of Currency Intervention In just two days, the yen-dollar exchange rate plummeted by more than 5 yen, dropping from the low 160s to the mid-155s per dollar. This decline is attributed to growing expectations of accelerated interest rate hikes by the Bank of Japan (BOJ) and the possibility of the U.S. Federal Reserve maintaining its current rates this month, which could narrow the interest rate gap between the U.S. and Japan. Additionally, speculators who suffered losses from the joint yen-buying intervention at the end of July rushed to close their yen short positions, further amplifying the downward trend in the exchange rate. Although no actual intervention has been confirmed this time, concerns about potential intervention have prompted yen buying, leading to a short squeeze as the yen-dollar rate fell. Market sentiment suggests that the unwinding of yen carry trades has begun.According to the Nihon Keizai Shimbun (Nikkei), on September 3, the yen-dollar exchange rate fell to as low as 155.30 yen per dollar in the New York foreign exchange market, marking its lowest level in about a month. In the Tokyo market on September 4, the rate briefly dropped to 155.28 yen but rebounded to 156.10-156.12 yen by noon due to dollar buying from importers and other real demand. Compared to the previous day at 5 p.m., this represents a decrease of 0.93 yen.Nikkei identified the initial trigger for the sharp decline in the exchange rate as proactive dollar sales by investors anticipating intervention by Japanese authorities. A foreign exchange dealer from a Japanese bank noted that on September 2, there were reports that Japanese authorities had conducted a rate check with financial institutions to inquire about the exchange rate levels. As this speculation spread, the yen-dollar rate fell by about 1 yen in a short time, entering the 158 yen range. The rate then remained stable for a while.Michael Ashley Shulman, a partner at Serity Partners, explained, Many forex traders suffered losses from the joint U.S.-Japan intervention at the end of July. Because of that experience, when the rate rose to 160 yen per dollar this time, they bet on the possibility that authorities had already intervened and sold dollars. This proactive dollar selling led to further selling, and as the yen strengthened overnight in New York, yen buying intensified.The second critical point was the 158 yen level. On September 3, when the yen-dollar exchange rate fell below the 200-day moving average (MA) of 158.44 yen in the Tokyo market, the pace of decline accelerated. The 200-day moving average is a key indicator for investors assessing medium- to long-term market trends. A representative from a major European bank observed that leveraged investors who had built up yen short positions in anticipation of a weaker yen began to close their positions to mitigate losses after the breach of the 200-day line, leading to a significant short squeeze.The yen carry trade involves borrowing yen at low interest rates to invest in higher-yielding currencies or assets to profit from the interest rate differential. When the value of the yen rises, currency losses can offset interest income, prompting investors to buy back yen to close their positions. Typically, as investors increase their investment size through borrowing, significant fluctuations in the exchange rate lead to preemptive selling to avoid larger losses. According to the Commodity Futures Trading Commission (CFTC), as of August 25, leveraged funds net short positions in yen were more than double the average since 2020. Although these positions temporarily decreased right after the joint U.S.-Japan intervention at the end of July, they expanded again over the previous two weeks. A dealer from a Japanese bank in New York remarked, Considering the exchange rate levels at which positions were built, some investors may be holding unrealized losses.Changes in U.S.-Japan Monetary Policy OutlookThe shift in monetary policy expectations has also contributed to the decline in the yen-dollar exchange rate. Hajime Takata, a member of the BOJs Policy Board, emphasized during a press conference on September 2 that the situation has changed this year, suggesting the need for flexibility in determining the timing and magnitude of rate hikes, rather than adhering to the previous pattern of raising rates every six months by 0.25 percentage points. He mentioned that consecutive rate hikes are generally possible. The market is even discussing scenarios where the BOJ could raise rates every three months. Bloomberg reported on September 3 that the BOJ is likely to raise its policy rate by 0.25 percentage points to 1.25% at its monetary policy meeting on September 17-18.In contrast, the Yomiuri Shimbun reported that Christopher Waller, a member of the U.S. Federal Reserve, stated during a lecture on September 3 that recent indicators show signs of a slowdown in inflation, indicating that if this trend continues, there is no need to rush into rate hikes. Waller also expressed support for maintaining rates at the Federal Open Market Committee (FOMC) meeting on September 15-16 if inflation continues to ease. The probability of a rate hike in September, as reflected in the U.S. interest rate futures market, dropped from about 63% the previous day to around 50% on the morning of September 4 (Korean time). The expectation that the BOJ may raise rates while the Fed may delay its hikes has led investors to buy yen, anticipating a narrowing of the U.S.-Japan interest rate gap.Speculation that Japan may adjust its financial and fiscal policies under U.S. pressure has also spurred yen buying. The U.S. Treasury revealed on September 1 that Treasury Secretary Scott Vessen received a strong endorsement from BOJ Governor Kazuo Ueda on August 30 for Japan to take decisive market and monetary policy actions to address the significant undervaluation of the yen. Following this, there have been several comments from Ueda and BOJ officials hinting at potential rate hikes. The New York Times reported that during a meeting in Tokyo in May, Vessen expressed dissatisfaction for two hours with Prime Minister Sanae Takaichis aggressive fiscal stance and the BOJs insistence on maintaining low interest rates.It remains uncertain whether the recent sharp decline in the yen-dollar exchange rate will lead to a sustained strengthening of the yen. Hugo Monturiocchio, Chief Investment Officer at Schroders Multi-Asset, stated that recent interventions have only temporarily slowed the yens depreciation, and the appeal of the yen carry trade still exists, leading him to maintain yen short positions. He added, If the BOJ or the government sends a message indicating a desire for a stronger yen, it could lead to a trend reversal toward a stronger yen. Kit Jucks, a senior foreign exchange strategist at Societe Generale, noted, While the yen carry strategy of selling yen to capture interest income has worked until now, it is becoming riskier. There is a possibility that this could mark a turning point for the yen to appreciate to 140 yen per dollar over the coming years.The next critical moment will be the release of the U.S. non-farm payroll data for August on the night of September 4. If the employment figures are weak, expectations for a September rate hike in the U.S. may diminish further, strengthening the yen. Conversely, if the figures are stronger than expected, expectations for a U.S. rate hike may revive, potentially halting the decline in the exchange rate. Nikkei reported, citing a foreign exchange dealer from a Japanese bank, that whether the yen-dollar exchange rate can remain below the psychological resistance level of 155 yen per dollar, which has not been breached despite two interventions this year, will be crucial.* This article has been translated by AI. September 4, 2026 1
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KOSPI Rises Over 2% Amid Strong Foreign and Institutional Buying; KOSDAQ Gains Over 3% The KOSPI index is continuing its upward trend, rising over 2% thanks to significant net buying from foreign and institutional investors. With U.S. long-term interest rates stabilizing and a strong performance in the New York stock market, buying activity is particularly focused on semiconductor stocks. The KOSDAQ is also showing strength, with foreign and institutional investors both engaging in net buying, leading to a gain of over 3%.As of 2:22 PM, the KOSPI is up 162.30 points (2.47%) at 6,742.21, according to the Korea Exchange.The index started the day at 6,654.36, up 74.88 points (1.14%) from the previous close, and has since expanded its gains. Although the index climbed above the 6,700 mark due to continued buying from foreign and institutional investors, the pace of increase has somewhat slowed in the afternoon.In the securities market, individual investors are net selling 3.95 trillion won, while foreign and institutional investors are net buying 1.1264 trillion won and 1.4299 trillion won, respectively. As individuals engage in large-scale profit-taking, foreign and institutional buying is driving the index higher.Among the top market capitalization stocks, Samsung Electronics (up 3.20%), SK Hynix (up 4.82%), SK Square (up 6.52%), Samsung Electro-Mechanics (up 4.86%), and Hyundai Motor (up 0.39%) are all rising, while LG Energy Solution (down 1.50%), Samsung Biologics (down 2.47%), KB Financial (down 3.71%), Samsung C&T (down 0.67%), and Samsung Life (down 1.65%) are declining.Today, the domestic stock market opened higher, buoyed by the strong performance of the New York stock market and the stabilization of U.S. long-term interest rates. On September 3 (local time), the Dow Jones Industrial Average rose by 1.18%, while the S&P 500 and Nasdaq increased by 1.06% and 1.40%, respectively.Notably, dovish comments from Christopher Waller, a member of the U.S. Federal Reserve, have eased concerns about a rate hike in September, alleviating some market pressure regarding interest rates. The U.S. 10-year Treasury yield is currently around 4.76%, while the 30-year yield is at approximately 5.25%.However, there is also a sense of caution ahead of the U.S. employment report for August, which is set to be released tonight. The results of this employment data could influence the Federal Reserves future monetary policy and the direction of U.S. long-term interest rates, making it a key variable for the domestic stock market.At the same time, the KOSDAQ index is trading at 816.21, up 26.00 points (3.29%) from the previous day.In the KOSDAQ market, individual investors are net selling 478.8 billion won, while foreign and institutional investors are net buying 363.9 billion won and 131.4 billion won, respectively.Among the top market capitalization stocks, Alteogen (up 2.65%), EcoPro (up 0.49%), EcoPro BM (up 0.28%), Rainbow Robotics (up 6.07%), JUSUNG Engineering (up 6.13%), Wonik IPS (up 9.33%), and IOTech (up 5.86%) are mostly on the rise.* This article has been translated by AI. September 4, 2026 1
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Global Financial Markets React to Monetary Policies; U.S. and Europe Rise, Japan Declines Global financial markets exhibited mixed movements as they monitored monetary policies and economic trends in major countries. While U.S. and European stock markets rebounded amid easing global bond sell-offs, Japans stock market experienced a slight decline.On September 3, the U.S. Standard & Poors (S&P) 500 index rose by 1.06% to close at 7,747.7. The European Stoxx 600 index also increased by 0.49%. In contrast, Japans Nikkei 225 index fell by 0.17%. The stabilization of global bond market volatility, coupled with reduced concerns over U.S. interest rate hikes, supported investor sentiment.In the bond market, long-term interest rates in major countries fell across the board. The yield on the U.S. 10-year Treasury note decreased by 1 basis point to 4.77%. Germanys 10-year yield dropped by 3 basis points to 3.34%, while Japans fell by 7 basis points to 2.96%. The recent global bond sell-off, driven by concerns over fiscal burdens and monetary tightening in major economies, appears to have subsided somewhat.In the U.S., the likelihood of further interest rate hikes by the Federal Reserve has diminished, contributing to the easing of Treasury yields. Christopher Waller, a member of the Fed, stated on September 3, If upcoming economic indicators confirm a trend of declining inflation, I could support maintaining the current interest rate level.As a result, market expectations for a rate hike in September have decreased from around 60% to the low 50% range. However, the Institute for Supply Managements (ISM) services index for August reached 55.4, the highest in six months, and the price index hit a four-year high, keeping inflation concerns alive.In Asia, Japans monetary policy normalization has emerged as a key variable. Officials from the Bank of Japan anticipate a potential 0.25 percentage point rate hike at the upcoming monetary policy meeting in September. Some market participants are speculating that the rate increase could occur in December this year or January next year. As Japan moves away from its prolonged ultra-low interest rate policy, the impact of bond yields and the yens movements on global capital flows is expected to grow.In China and Europe, signs of economic recovery are emerging. Chinas services Purchasing Managers Index (PMI) for August stood at 51.4, surpassing both the previous months 50.4 and the market expectation of 50.6. The Ifo Institute for Economic Research has raised its forecast for Germanys economic growth this year from 0.8% to 1.4%.In the commodities market, gold prices showed renewed strength, rising by 2.08% to $4,472.9 per ounce, while Brent crude oil fell by 0.12% to $95.52 per barrel. Analysts suggest that increased purchases by central banks and sovereign wealth funds, along with concerns over U.S. fiscal health, are supporting demand for gold.* This article has been translated by AI. September 4, 2026 0
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Blue House Emphasizes Future Response Fund as Financial Reservoir Ryu Deok-hyeon, the Blue Houses financial planning advisor, explained on September 3 that the 162 trillion won Future Response Fund is intended to serve as a financial reservoir to be used steadily over the next two to three years, rather than depleting excess tax revenue all at once.During an appearance on KBS Radios Sasa Geon Geon, Ryu stated, This year and next year, the tax revenue conditions are very favorable. Corporate taxes are significantly boosted by the semiconductor boom, and overall, we are seeing substantial excess tax revenue and additional income.He added, Just because we have a lot of revenue, is it really wise to spend it all? If we do that, while monetary policy tightens, fiscal policy would expand significantly, which may not be desirable.Ryu also expressed caution regarding the proposal to use all excess tax revenue for national debt repayment. He noted, The national bond market needs to maintain stability. If we pay off all the debt next year without issuing any bonds, we would have to issue the same amount or more in the following year, which could jeopardize fiscal health.He explained that the fund should be used adequately for necessary fiscal needs next year while being managed stably, allowing for temporary storage of resources to be used over two to three years.Addressing concerns that the Future Response Fund could bypass the National Assemblys budget review authority, Ryu dismissed this as a complete misunderstanding. He emphasized, All government budgets and funds must undergo National Assembly review. Projects funded by the Future Response Fund will also be subject to this budget review process.Ryu highlighted that the Future Response Fund could play a role in stabilizing finances if tax revenues decline due to a downturn in the semiconductor market. He remarked, It would be great if the semiconductor cycle remains strong, but that is uncertain. At some point, tax revenues could decrease significantly.He added, We have also established mechanisms to draw from the Future Response Fund to address any shortfalls in tax revenue.In response to criticisms that the proposed budget of 820.9 trillion won for next year represents excessive expansion, Ryu countered, I believe next year is a crucial turning point for the South Korean economy. We need fiscal investment to address the lack of future investment over the past three years, reverse the decline in potential growth rates, and respond to polarization amid the semiconductor boom.He specifically noted, Next year, the managed fiscal balance deficit is projected to be 0.1%, which is a very balanced policy not seen in the last 20 years. He added, It is difficult to agree that this is entirely expansionary.Regarding the recent resignation of Kim Yong-beom, the former head of the Blue House Policy Office, Ryu indicated that there would not be significant changes in the fundamental direction of economic policy. He stated, Government policies do not change drastically in a short time. We need to continue navigating in the direction set by our government.On the timing of appointing a successor to the Policy Office, Ryu said, I believe the will of the appointing authority will be determined soon. It is an important schedule.* This article has been translated by AI. September 3, 2026 1