A slower rate hike schedule by the US Federal Reserve may give South Korea greater leeway in terms of setting monetary policy in the new year, the head of the country's central bank said Thursday.On Wednesday (US time), the Fed raised its key interest rate for the fourth time this year to a range of 2.25 percent to 2.5 percent. It also said it will raise the rate twice next year after reviewing global economic data and international financial markets."The rate hike and its scheduled adjustm

South Korea will make thorough preparations for any destabilizing factors after the US raised interest rates, a senior official said Thursday.Lee Ho-seung, the first vice minister of economy and finance, also said in a meeting with relevant officials in Seoul that a possible hike in market rates in South Korea is something that households and companies can cope with.South Korea's overall household debt reached a record 1,514 trillion won ($1.34 trillion) as of September. He made the remarks afte

South Korean banks will adopt new global rules on management and supervision of interest rate risk next year, the nation's financial watchdog said Thursday. The so-called Interest Rate Risk in the Banking Book (IRRBB) capital requirements were introduced by the Basel Committee on Banking Supervision in 2016 to help banks better measure and control interest rate risk. The new rules will replace the Basel Committee's 2004 rules on management and supervision of rate risk. In a statement, the F

The interest rate differentials between the United States and South Korea have had a negligible effect on the outflow of foreign capital from the domestic bond market, showed a study by Korea’s central bank on Wednesday. This finding stood in contrast to widespread views that foreign capital outflow from the Korean financial market would be accelerated if the base rate of the US Federal Reserve were higher than the Bank of Korea.  The study, “Determinants of Capital Flows in the

The head of South Korea’s central bank on Tuesday warned of persisting internal and external risks in Asia’s fourth-largest economy and the lack of a driver for economic growth other than semiconductor businesses within the next five years. In a press conference Tuesday evening, Bank of Korea Gov. Lee Ju-yeol said Korea has yet to come up with an alternative in the face of the downturn of the semiconductor-making business, mainly led by market giants, such as Samsung Electronics and

South Korean stocks advanced Wednesday on the back of institutional buying, with investors setting eyes on the upcoming results from the US Federal Reserve's rate-setting meeting, analysts said. The South Korean won firmed against the US dollar.The benchmark Korea Composite Stock Price Index rose 16.73 points, or 0.81 percent, to 2,078.84. Trading volume was moderate at 412.55 million shares worth 5.02 trillion won ($4.46 billion), with winners overwhelming losers 531 to 292. The index rebo

South Korea's finance minister vowed Wednesday to remove uncertainty over corporate investments as Asia's fourth-largest economy is moving to cut red tape.Hong Nam-ki, the minister of economy and finance, also said the government will swiftly resolve difficulties companies could face in making investments, calling corporate investments "a key to economic revitalization." The issue of corporate investments has urgency as South Korea is seeking to create jobs and boost the economy.South

South Korea's new finance minister and the central bank chief on Wednesday vowed to make concerted efforts to tackle uncertainties and bolster the economy next year."It doesn't seem that the economy will worsen next year, but we can't let our guard down as there are downside risks out there," Bank of Korea Gov. Lee Ju-yeol said before holding a luncheon meeting with the country's newly inaugurated Finance Minister Hong Nam-ki. "The BOK and the finance minister will cooperate on ma

The South Korean government on Wednesday announced the second stage of its plans to supply more homes to stabilize the overheated housing market, involving the building of 155,000 homes in areas near Seoul.On top of the 35,000 new homes announced in September, 155,000 dwellings will be created at 41 sites in Seoul, Incheon and Gyeonggi Province starting in 2020, according to the Ministry of Land, Infrastructure and Transportation. The sites for 110,000 homes will be released in the first half of

South Korea's trade with Vietnam increased 7 percent in the first 11 months of this year compared with a year ago, Seoul's trade ministry said Wednesday. The bilateral trade volume reached $62.6 billion as of November, making Vietnam South Korea's fourth-largest trading partner after China, the United States and Japan, the Ministry of Trade, Industry and Energy said. South Korea's exports to Vietnam rose 1.9 percent on-year to $44.5 billion over the period, while its imports soared 22 perce

The South Korean bond market was rarely affected by fluctuating interest rate gaps with the United States in the past but was instead highly influenced by global financial risks, a central bank report said Wednesday.Foreign investors, including sovereign funds and private banks, hold more than 100 trillion won ($88.9 billion) worth of South Korean bonds, accounting for 6 percent of the total market value. The report published by the Bank of Korea said most offshore investors did not budge an inc

South Korea plans to give preliminary approval to a third Internet-only bank in May next year as the government seeks to reinvigorate the financial industry, the head of the financial regulator said Wednesday. Choi Jong-ku, chairman of the Financial Services Commission, told reporters that the regulator will receive applications from companies to set up an Internet-only bank in March next year.  Two Internet-only banks -- K-Bank and Kakao Bank -- were launched last year. The two banks have

The normalization pace of US monetary policy and the ongoing trade dispute between Washington and Beijing are the two big downside risks that the South Korean economy will have to deal with next year, the central bank chief has said."The South Korean economy has a high reliance on trade, and its financial market is wide open. We have to be ready to cope with global issues," Bank of Korea Gov. Lee Ju-yeol said in a press meeting Tuesday.The US Federal Reserve is widely expected to raise

During a meeting of economy-related ministers on Monday, the South Korean government set next year’s economic growth at between 2.6 and 2.7 percent, similar to the level for this year. Various economic institutions have placed South Korea’s economic growth estimate for 2019 at between 2.5 percent to 2.8 percent, amid sluggish investment, a slowing global economy and the US-China trade war.The Hyundai Research Institution and LG Economic Research Institute gave the lowest growth rate

The Vietnamese football team’s latest victory in the regional finals under South Korean coach Park Hang-seo has helped South Korean companies.A leading beneficiary was Shinhan Bank, which appointed Park as honorary ambassador earlier this year, seeking to expand its overseas business in the Southeast Asian state.The Vietnamese team defeated Malaysia in the ASEAN Football Federation Suzuki Cup finals on Saturday, scoring its first victory in a decade. Even before the match, Shinhan Bank Vie