Policies may bring markets back from brink, but impact of COVID-19 on real economy needs attention

South Korea will implement new global bank capital rules in the second quarter of the year, the country's financial regulator said Sunday, a move that could increase corporate lending amid a liquidity crunch caused by the spread of the new coronavirus. The banking regulations, known as Basel III, were agreed upon by financial regulators around the world in 2017. The new rules, including revisions to calculation systems for capital requirements and credit risks, were set in the aftermath of th

Provincial governors and mayors urged the central government Saturday to shoulder the cost of basic income subsidies to help citizens. “It is imperative for the (central) government to take more aggressive and proactive measures to bring the society‘s safety net back to normal,” the Governors Association of Korea, composed of the heads of 17 local governments, said in a proposal to Korea‘s central government. “Facing a national emergency, the (central) governmen

South Korea posted a record high yearly trade surplus in copyrights last year, backed by the global popularity of K-pop, extending its annual surplus streak for the seventh year, the culture ministry said Friday. The trade surplus in copyrights came to $1.62 billion in 2019, the biggest yearly earnings since relevant figures were first compiled in 2010, the Ministry of Culture, Sports and Tourism said, citing data from the Bank of Korea. The same year, South Korea's trade balance in broader in

Amid the snowballing economic fallout of the novel coronavirus, South Korea saw its consumer sentiment aggravate in March, hitting its lowest point in more than a decade, central bank data showed Friday. The composite consumer sentiment index, or CCSI, stood at 78.4 in March, down 18.5 points on-month and marking the lowest score since March 2009, when the world was reeling under the global financial crisis, according to data from the Bank of Korea. The corresponding survey was conducted o

South Korea is feared to be one of the hardest-hit countries in the Asia-Pacific area, given the fact that China, the epicenter of the virus outbreak, accounts for 20 percent of international tourism expenditures. Other vulnerable countries are Thailand, Japan and Vietnam as they depend heavily on Chinese visitors for tourism revenue. The fast spread of the novel coronavirus is also feared to cause the global aviation industry to suffer big losses in passenger numbers and revenue. Should the

South Korea’s central bank said Thursday that it will inject an unlimited amount of liquidity to the financial market over the next three months, in an effort to sustain the volatile market amid the spread of the novel coronavirus. “The Bank of Korea has decided to supply an unlimited amount of liquidity to financial institutions to reduce the economic fallout of COVID-19 and remove uncertainties in the financial market,” the BOK said in a release. “Also, it will expan

Unforeseeable COVID-19 crisis fosters showdown between foreign, small investors

The Bank of Korea said Thursday that it will supply an "unlimited" amount of liquidity over the next three months to financial institutions to help prevent a credit crunch caused by the coronavirus pandemic. "The Bank of Korea decided to provide an unlimited amount of liquidity to financial firms to help minimize the economic fallout from the spread of COVID-19 and remove uncertainties in the financial market," the BOK said in a press release. (Yonhap)

Fiscal chief hints at disapproval of ‘anti-disaster basic income’ payout plan

South Korea will ease foreign exchange liquidity rules temporarily to prod local financial firms to provide more dollars in the currency market currently roiled by the market turbulence, the country's chief economic policymaker said Wednesday. Local financial institutions have been required to hold an adequate amount of foreign currency assets on hand to get over short-term liquidity disruptions. Currently, the foreign exchange liquidity coverage ratio (LCR) for banks is set at least 80 percent.

Seoul shares its epidemic-fighting experience with leading economies

New emergency measure to further bolster SMEs, provide cushion for conglomerates and stabilize financial market

The plunging crude oil prices may increase pressure on South Korea’s financial market with rising volatility forcing investors to secure cash, not to mention its negative impact on the economy. The sharp drop in oil prices in recent weeks has rattled the stock market, already reeling from the deepening coronavirus pandemic. Oil refining and chemical industries are bearing the brunt, not only from plummeting demand but also lackluster investor sentiment.  According to data of the

South Korea on Tuesday highlighted the importance of its budget spending in supporting the country's economic growth next year, signaling a budget hike amid the growing fallout from the spread of the new coronavirus. Under its 2021 budget guidelines, the government said it will continue to maintain the active role of fiscal spending in boosting growth, while seeking to enhance its fiscal soundness. The guidelines, reviewed and approved by the Cabinet on Tuesday, are designed to direct governme