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Economy

Seoul launches state-run body to implement $350 bil. US investment pledge

State-run Korea-U.S. Strategic Investment Corp. (KUIC) officially set sail Thursday with the task of implementing Korea's $350 billion investment pledge to the United States in return for lower tariffs, the finance ministry said. "Through the launch of the KUIC, the alliance between Korea and the United States has developed beyond the economy and security to strategic industries, further advancing our solid partnership," Finance Minister Koo Yun-cheol said during the opening ceremony in Sejong. "Korea and the U.S. will combine each other's strengths to leap forward together as an indispensable hub in the global supply chain," Koo added. The new company, based in the central city of Sejong, was launched after the National Assembly passed the Special Act for Korea-U.S. Strategic Investment Management in March. In October last year, Seoul and Washington reached an agreement on Korea's $350 billion investment pledge. Under the law, the new company will operate for 20 years, with the government providing 2 trillion won ($1.3 billion) for its establishment. "The U.S., with the world's most advan

17h agoBy Yonhap
Seoul launches state-run body to implement $350 bil. US investment pledge
Economy

Korea rises 6 spots to 21st in world competitiveness rankings

Korea rose six places to rank 21st out of 70 countries in the International Institute for Management Development’s World Competitiveness Ranking, marking its second-highest position since it was first included in the evaluation in 1997, the Ministry of Finance and Economy said Thursday. Among countries with per capita incomes of more than $30,000 and populations of more than 50 million, Korea ranked second after the U.S., up from third place. The annual ranking is regarded as one of the most representative indicators of national competitiveness, the ministry said. Covering 70 countries, including OECD members and emerging economies, the IMD assessment evaluates the capacity of nations and businesses to increase wealth and improve quality of life. Korea’s previous highest ranking was 20th in 2024, while its lowest was 41st in 1999. Across the four main categories, sharp gains in business efficiency and infrastructure drove Korea’s overall rise. Government efficiency remained unchanged from the previous year, while economic performance edged down. Business efficiency saw the biggest j

18h agoBy Lee Yeon-woo
Korea rises 6 spots to 21st in world competitiveness rankings
Economy

US Fed's hawkish hold strengthens case for BOK rate hike in July

The U.S. Federal Reserve's hawkish signal has reinforced expectations that the Bank of Korea (BOK) will raise interest rates as early as next month, market observers said Thursday. With inflation concerns persisting in both countries, monetary officials in Washington and Seoul are increasingly focused on restoring price stability, potentially marking the start of a renewed tightening cycle in both economies. The Fed held its benchmark interest rate steady Wednesday (local time) in its first policy decision since Kevin Warsh became its chair. The U.S. central bank unanimously left the federal funds rate unchanged at 3.5 percent to 3.75 percent, marking its fourth consecutive pause. The latest dot plot showed that nine of the 19 Federal Open Market Committee participants expected interest rates to be higher than current levels for the rest of this year. Warsh did not submit a rate projection. The Fed's hawkish stance has added to pressure on the BOK to tighten its policy, as officials here seek to contain inflation and limit the impact of a wide interest rate gap with the United States. Mar

18h agoBy Lee Hyo-jin
US Fed's hawkish hold strengthens case for BOK rate hike in July
Economy

KOSPI tops another historic milestone 9,000 on chip rally

Seoul stocks crossed another round-number milestone of 9,000 for the first time in their history Thursday, buoyed by an extended rally in chipmakers and other artificial intelligence (AI)-related stocks, in the face of a hawkish stance by the U.S. Federal Reserve and Iran uncertainty. The benchmark Korea Composite Stock Price Index (KOSPI) added 129.42 points or 1.46 percent to 8,993.66 as of 1:52 p.m., after rising as high as 9,040.52. It took less than a month for the index to top the new milestone, after breaking the 8,000-point mark on May 26. The index had delivered a record-breaking run for five straight sessions since last Thursday on the peace agreement reached between the United States and Iran, as well as extended optimism for the AI sector. The KOSPI broke above the 3,000 mark on June 20, 2025, and surpassed 4,000 points on Oct. 27, 2025. On Jan. 22, it hit 5,000 points and touched 6,000 points on Feb. 25. The benchmark index was led by the country's two chip giants — Samsung Electronics and SK hynix — on continued confidence over AI and related sectors. Shares of Samsung Ele

20h agoBy Yonhap
KOSPI tops another historic milestone 9,000 on chip rally
Economy

US may shift toward tighter monetary policy: financial authorities

Washington may shift toward a tighter monetary policy as the U.S. Federal Reserve underscored its commitment to taming inflation, South Korea's financial authorities said Thursday. Finance Minister Koo Yun-cheol made the assessment alongside Bank of Korea (BOK) Gov. Shin Hyun-song, Financial Services Commission Chairman Lee Eog-weon and Financial Supervisory Service Gov. Lee Chan-jin as they discussed the outcome of the overnight Federal Open Market Committee (FOMC) meeting. The U.S. Federal Reserve on Wednesday (U.S. time) held its benchmark interest rate steady in its first rate decision since Chair Kevin Warsh took office last month, with at least half of policymakers anticipating higher rates later this year. The U.S. central bank decided unanimously to leave the rate unchanged at a range of 3.5 percent to 3.75 percent, marking its fourth consecutive pause. The "dot plot" projection chart showed that nine of the 19 FOMC participants expected borrowing costs to be higher by year-end. Warsh did not submit a dot plot projection. "The global financial market had expected the FOMC to hold

1d agoBy Yonhap
US may shift toward tighter monetary policy: financial authorities
Economy

Seoul stocks up late Thursday morning on extended chip rally

Seoul stocks were trading higher late Thursday morning, as retail investors snapped up semiconductor heavyweights. The benchmark Korea Composite Stock Price Index (KOSPI) was trading up 64.35 points, or 0.73 percent, to 8,928.59, as of 11:20 a.m. The index trimmed earlier gains on foreign selling, after nearing the 9,000-point mark in early trading. Investors are remaining cautious over the U.S. Federal Reserve's policy direction, after the central bank decided to keep the country's policy rate steady for the fourth consecutive time, and hinted at a rate hike this year to tame inflation. In Seoul, most large-cap shares were trading lower, while semiconductors gathered ground. Samsung Electronics rose 0.94 percent, and its industry rival SK hynix advanced 4.05 percent. In contrast, top carmaker Hyundai Motor shed 1.94 percent, nuclear power plant builder Doosan Enerbility fell 1.84 percent, and defense giant Hanwha Aerospace dipped 1.39 percent. The local currency was trading at 1,524.5 won against the U.S. dollar, down 11.1 won from the previous session.

1d agoBy Yonhap
Seoul stocks up late Thursday morning on extended chip rally
Economy

KOSPI hits record closing high as SK hynix extends rally

The benchmark KOSPI closed at an all-time high of 8,864.24 on Wednesday, moving within striking distance of the 9,000 milestone after rebounding sharply from early losses. SK hynix led the surge, hitting a fresh all-time high above the 2.5 million won ($1,653.66) mark, backed by expectations for expanded shareholder returns, a strong growth outlook for high-bandwidth memory and hopes for a U.S. listing of American depositary receipts. According to the Korea Exchange, the benchmark KOSPI finished at 8,864.24, up 1.58 percent from the previous session, closing at an all-time high. It fell short of the intraday record of 8,933.62 set on June 2. Foreign investors sold a net 990 billion won worth of shares. But institutional and retail investors bought a net 577.7 billion won and 543 billion won, respectively, helping the index reverse early losses and close higher. Despite a plunge in the Philadelphia Semiconductor Index in the U.S., SK hynix extended its winning streak to a fifth consecutive session, closing at 2,521,000 won, up 5.84 percent from the previous session. Samsung Electronics cl

1d agoBy Lee Yeon-woo
KOSPI hits record closing high as SK hynix extends rally
Economy

Inflation to remain above 3% in 2nd half despite US-Iran deal: BOK

Korea's consumer inflation is expected to remain around 3 percent in the second half of the year as the impact of elevated oil prices stemming from the Middle East conflict continues to filter through the economy, the Bank of Korea (BOK) said Wednesday. Although a ceasefire agreement between the United States and Iran has raised hopes for an end to the monthslong war, the BOK said price pressures fueled by higher energy costs are likely to spread beyond petroleum products to other goods and services in the coming months. "Although geopolitical tensions have eased somewhat following the ceasefire agreement between the U.S. and Iran, upside risks to inflation remain," BOK Gov. Shin Hyun-song said during a press briefing. "It could take considerable time for energy supply chains to normalize and for oil prices to stabilize. Higher energy costs could also gradually spill over into other goods and services," he said. Despite recent declines in oil prices as expectations rise that shipping through the Strait of Hormuz will normalize, Shin said the central bank would look beyond short-term mark

1d agoBy Lee Hyo-jin
Inflation to remain above 3% in 2nd half despite US-Iran deal: BOK
Policy

Stock rally halts Korea's pension reform debate

Korea’s national pension reform appears to have been put on the back burner after a strong stock market rally bolstered the National Pension Service’s reserves and delayed the fund’s projected depletion, industry officials said Wednesday. According to the National Pension Service, its fund reserves rose from 1,036 trillion won ($684.3 billion) at the end of 2023 to 1,458 trillion won at the end of 2025. Market observers estimate that the figure had grown to 1,800 trillion won by May. The fund’s rise is largely due to the meteoric performance of the benchmark KOSPI, which ranked first among G20 nations in stock market gains. In 2025 alone, the fund delivered a record-high return of 18.82 percent. Professor Kim Yong-ha of Soonchunhyang University, a former president of the Korean Pension Association, recently told local media that if the fund posts an average annual return of 5.5 percent, its depletion date could be pushed back by 24 years, from 2071 to 2095. Pension reform has long been considered a key task for presidential administrations, but its political sensitivity has kept

1d agoBy Lee Yeon-woo
Stock rally halts Korea's pension reform debate
Economy

Auto exports down nearly 6% on auto parts supply disruptions

Korea's auto exports decreased nearly 6 percent in May from a year earlier, data showed Wednesday, amid disruptions in the supply of auto parts following a fire at a local factory. The combined value of automobile exports came to $5.83 billion last month, down 5.9 percent from the same month last year, according to data from the Ministry of Trade, Industry and Resources. Outbound shipments to North America, Latin America and the European Union fell 1 percent, 3.6 percent and 6.5 percent, respectively. Those to the Middle East dropped 4.2 percent. Exports to Oceania and Africa, on the other hand, shot up 20.1 percent and 16.1 percent, respectively. The ministry said exports of eco-friendly automobiles maintained solid growth, expanding 9.9 percent on-year to $2.4 billion. Domestically, 127,315 vehicles were sold last month, down 10.3 percent. Sales of locally manufactured cars fell 14.2 percent to 96,240, while those of imported cars rose 4.8 percent to 31,075. The data also showed that domestic automobile production contracted 8.2 percent on-year to 329,559 units. Production at Hyundai Moto

1d agoBy Yonhap
Auto exports down nearly 6% on auto parts supply disruptions
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