Bank of Korea Governor Shin Hyun-song reiterated the need for an interest rate increase on July 9. The central bank has maintained the benchmark interest rate at 2.5% since July of last year, but it has indicated a potential shift towards tightening monetary policy. Market analysts expect a significant likelihood of a rate hike during the Bank's Monetary Policy Committee meeting on July 16.
KB Kookmin Bank has reduced its housing loan limit from 600 million won to 300 million won, following similar moves by Shinhan Bank, which has imposed restrictions on mortgage insurance (MCI, MCG) subscriptions. Mortgage insurance allows borrowers to secure loans without applying the small rental deposit, known as 'banggongje.' The restrictions are expected to decrease the actual loan limits available to borrowers, heightening anxiety among homebuyers as lending regulations from major banks continue to tighten.
The Korea-Mongolia Comprehensive Economic Partnership Agreement (CEPA) has been tentatively agreed upon, paving the way for increased exports of consumer goods and access to the Mongolian market for key industries. Under the agreement, tariffs on cosmetics will be eliminated immediately, while tariffs on ramen and seasoned seaweed will be removed within five years. Additionally, trucks, auto parts, pharmaceuticals, and construction machinery will benefit from duty-free treatment. The agreement also includes provisions for cooperation in infrastructure, finance, and healthcare, strengthening the foundation for Korean companies in Mongolia. The negotiations, which had been stalled for about 19 months due to disagreements over market access, reached a final agreement following a summit meeting.
The Democratic Party of Korea introduced a bill on July 9 to abolish the prosecution's supplementary investigation rights under the Criminal Procedure Act. The party plans to expedite the bill's processing by submitting it to the Legislative and Judiciary Committee on the morning of July 10. The People Power Party criticized the proposal, calling it a move towards complete police monopoly over investigations. Party leader Jang Dong-hyuk emphasized that the recent heinous case involving the rape and murder of a high school girl highlighted the importance of supplementary investigations by the prosecution, stating that without them, the truth would have remained buried.
The Fair Trade Commission has approved Mirae Asset Consulting's acquisition of the cryptocurrency exchange Korbit, marking the first acquisition of a cryptocurrency exchange by a financial group. Mirae Asset Consulting signed a contract in February to acquire 92.06% of Korbit for approximately 133.4 billion won and subsequently applied for a corporate merger review. The commission determined that Korbit's market share of only 0.5% posed a low risk of limiting competition, leading to the approval of the merger. Based on trading volume, Korbit ranks as the fourth-largest exchange in South Korea, following Upbit, Bithumb, and Coinone.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.