South Korea's inflation expectations inched down for March despite worries over rising public utility bills, a central bank survey showed Wednesday. Ordinary people expected consumer prices to rise 3.9 percent for the year ahead, down 0.1 percentage point from what was surveyed a month earlier, according to the poll conducted by the Bank of Korea. It followed two straight months of a rise. "While price increases in processed food, dining out and transportation remain high, oil prices h

Government will refrain from cash handouts, Yoon says

By Jeffrey D. Sachs The banking crisis that hit Silicon Valley Bank at the beginning of March has now spread rapidly and widely. We recall with a shudder two recent financial contagions: the 1997 Asian Financial Crisis, which led to a deep Asian recession, and the 2008 Great Recession, which led to a global downturn. The new banking crisis hits a world economy already disrupted by the pandemic, the Ukraine War, Western sanctions on Russia, US-China tensions, and climate shocks. At the root of

This week’s utility rate hikes likely to create upward pressure on inflation

South Korea's financial regulator said Monday that local banks showed no signs of abnormality in their withdrawal and deposit operations. The assessment by the Financial Supervisory Service came amid concerns of a global banking crisis following the recent failures of two US banks -- Silicon Valley Bank and Signature Bank -- and the stock plunge of Deutsche Bank, Germany's largest bank. Only a small number of customers with deposits exceeding 50 million won ($38,400), the maximum amoun

South Korea and Japan's latest efforts to restore bilateral ties will give a "significant positive spillover" to Asia's No. 4 economy, the finance minister said Friday. On Thursday, South Korea completed procedures to drop a complaint it filed with the World Trade Organization against Japan over Tokyo's trade curbs as it began domestic procedures to put Japan back on its "white list" of trusted trade partners. The move came after President Yoon Suk Yeol held su

Market maintains expectation that Korea's central bank will freeze rate in April

South Korea's chief economic policymaker warned Thursday of the possibility of further instability in the global financial market, such as a recent bank turmoil sparked by the failure of American lenders, amid the continued monetary tightening moves by the United States and major economies. Finance Minister Choo Kyung-ho made the assessment during an emergency meeting on the macroeconomic situation, which was also attended by Bank of Korea Gov. Rhee Chang-yong and other officials. On Wednes

With Tokyo's export curbs expected to be lifted this week, neighbors seek to cooperate on chips

Top financial policymakers of Korea and Japan may hold a one-on-one meeting for the first time in seven years, following the recent easing of tensions between South Korea and Japan. The Finance Ministry is looking into launching talks between its minister Choo Kyung-ho and his Japanese counterpart Shunichi Suzuki, following President Yoon Suk Yeol’s state visit to Japan. With the Korean government announcing that a Seoul-backed foundation would compensate victims of wartime forced labor ea

The Organization for Economic Cooperation and Development (OECD) on Friday revised down South Korea's growth outlook for 2023 to 1.6 percent, as the global economy continues to stand on "fragile" grounds amid uncertainties. The latest outlook, released through the Paris-based organization's interim report, marked a 0.2 percentage-point drop from a 1.8 percent growth projection in November. The downward revision is in line with the Bank of Korea's assessment released

Limited impact expected on Korean chipmakers after years of localization efforts

Amid changing social norms, more Koreans tie the knot at older age

US Fed likely to hold back on rate hikes due to escalating volatility, giving room for BOK to keep its base rate unchanged

South Korea's monthly job additions slowed for the ninth consecutive month in February, data showed Wednesday, amid forecasts the job recovery will lose steam this year amid the economic slowdown. The number of employed people came to 27.71 million in February, up around 312,000 from a year earlier, according to the data compiled by Statistics Korea. Excluding those aged 60 and above, however, the figure moved down 101,000 over the period. The February figure marked a decrease from 411,000