South Korea’s financial regulator said Tuesday it has decided to further ease local lenders’ obligations to pile up liquid assets until September, in a move to encourage them to prop up the real economy reeling from the prolonged COVID-19 pandemic.  The liquid coverage ratio, or LCR, is the proportion of necessary assets held by financial institutions, which serves as a key indicator for a bank’s financial soundness.  Under the current LCR regulation designed to c

South Korea’s food prices increased at the fourth-highest rate among members of the Organization for Economic Cooperation and Development in January, largely due to a supply shortage brought on by bird flu, according to data and market experts Monday. January’s prices for groceries and nonalcoholic beverages soared by 6.5 percent on-year, more than twice the OECD average of 3.1 percent, data compiled by the OECD and Statistics Korea showed. Among the 37 OECD member states, steepe

South Korea’s vice finance minister on Friday warned of possible drivers of inflation, including rising oil prices and farm products, vowing efforts to closely monitor a potential surge in consumer prices.  “The consumer price index has continued an upward trend from 0.6 percent in January to 1.1 percent last month, largely due to gains in global oil prices and farm products,” said Vice Finance Minister Kim Yong-beom during an economic meeting.  “There seems

Financial Supervisory Service Gov. Yoon Suk-heun, whose three-year term ends in two months, is facing intense backlash from the related labor union, which holds him responsible for the watchdog‘s alleged failure in personnel management.　 Last month, the market watchdog reportedly promoted two officials who had received heavy sanctions due to their involvement in hiring irregularities, immediately prompting fierce criticism from union members. “The FSS’ latest decision to pr

South Korea’s financial regulator said Tuesday it has extended the grace period for loan repayments until September as part of policy effort to support individuals and businesses reeling from the resurgence of the COVID-19 pandemic.  “In response to small-and medium-sized enterprises and merchants’ economic difficulties wrought by the prolonged social distancing rules amid the virus resurgence, the Financial Services Commission and financial circles have decided to exte

The Bank of Korea said Monday it has agreed with Switzerland’s central bank to extend their bilateral currency swap arrangements for another five years, as part of a move to further bolster financial cooperation. The currency swap deal totaling at 11.2 trillion won ($10.1 billion), which was set to end on Monday, will last until March 2026, according to the BOK. “The extension of the currency swap deal aims to enhance bilateral relations in the area of finance and to strengthen f

South Korea could be home to international financial behemoths if the government avoids regulatory overlap and takes a more flexible approach to operational issues faced by foreign banks in the rulemaking process, the head of BNP Paribas South Korea said.  In an interview with The Korea Herald, Philippe Noirot, head of territory for BNP Paribas South Korea, said “overlapping regulations” may pose hurdles for foreign financial institutions’ to enter into the South Korean m

  Kim Jung-tai, the incumbent chairman of Hana Financial Group, was officially tapped by board members to lead the banking giant for another year, the group said Thursday.  Hana Financial Group’s recommendation committee for CEO nominations had recommended Kim as the sole candidate for the next president, allowing him to clinch a fourth term in office.  Once the appointment is confirmed during a general meeting of stockholders and board of directors slated for March, Kim

The chief of the nation’s intellectual property office vowed Wednesday to reinforce intellectual property rights protection of digital inventions to contribute to South Korea‘s efforts to become a pacesetting nation in the digital era.  “In the era of digital economy, business realms driven by digital intellectual property are forecast to expand rapidly. A transition to digital economy depends on active creation of patents for innovative digital technologies across indus

South Korea’s economy posted negative growth amid the prolonged COVID-19 pandemic last year, but it ranked third in terms of economic growth rate among major economies, data showed Tuesday.  The local economy shrank 1 percent in 2020 from a year earlier, the worst on-year growth estimate since 1998 when the gross domestic product contracted 5.1 percent in the wake of the Asian financial crisis. The latest figure, however, marked the third-highest among 15 major economies, according

South Korea’s central bank is widely expected to freeze its base rate at a record low of 0.5 percent this week over lingering economic uncertainty with a flare-up in new coronavirus cases, experts said Monday. The Bank of Korea is slated to hold its monetary policy board meeting slated for Thursday. “Affected by the virus resurgence, the nation’s job market and private spending have remained sluggish. So, there’s a high chance for the central bank to maintain its base r

Tensions between the nation’s financial regulator and its central bank are escalating. The two institutions are at odds over which one should hold supervisory authority in the area of online payment settlements, which are emerging as key financial transactions in this era of the digital economy. Payment settlement is the process through which a merchant receives the money that customers have paid for a particular product or service. Responding to increased demand for online payment sett

  As part of a move to promote gender equality at work, BNP Paribas South Korea has hosted an online event named Gender and Power Talks in partnership with law firm Shin & Kim LCC and the Korean-German Chamber of Commerce and Industry. Ahead of International Women’s Day slated for March 8, leaders from the three organizations discussed measures to foster female leadership across industries in the virtual event, which was held on Wednesday.  “(BNP Paribas South Korea)

Contactless, airport check-in systems will be set up across the country by next year, South Korea’s Vice Finance Minister said on Friday, in a bit to digitalize the nation’s social infrastructure. “By 2022, (the government) will implement a contactless check-in system at 15 airports across the nation, which automatically confirms identification of passengers via biometric data, in order to increase convenience of residents using local airports,” Vice Finance Minister K

Financial Services Commission Chairman Eun Sung-soo said Wednesday that there were no political considerations at play in the regulator’s latest decision to extend its temporary ban on short selling, stressing that the practice a “necessary” trading tactic. “Even tough retail investors have voiced against short selling, the authorities reached a conclusion that short selling is a necessary trading tactic in the stock market,” Eun said at a parliamentary briefing,