DIRS.INFO The most relevant business & tech news

☆ South Korea Q3 GDP growth slows to 1-year low, slightly ahead of expectations
▼ + stars: | 2022-10-26 | by ( ) www.reuters.com time to read: +1 min

SEOUL, Oct 27 (Reuters) - South Korea's economy grew at its slowest pace in a year in the third quarter, just ahead of expectations, on pent-up spending by consumers and companies, the central bank's advance estimates showed on Thursday. The country's gross domestic product (GDP) grew by a seasonally-adjusted 0.3% in real terms in the third quarter from the previous quarter, the Bank of Korea estimated, marking the slowest pace since the third quarter of 2021. Economists in a Reuters poll had expected the economy to grow 0.1% quarter-on-quarter in the July-September period, slowing from a 0.7% gain in April-June. On an annual basis, gross domestic product (GDP) increased 3.1% in the third quarter after a 2.9% gain in the second quarter and versus expectations for 2.8% growth in the poll. Reporting by Jihoon Lee and Choonsik Yoo Editing by Shri NavaratnamOur Standards: The Thomson Reuters Trust Principles.

☆ South Korea's economy likely ground to near halt in Q3
▼ + stars: | 2022-10-25 | by ( Devayani Sathyan | ) www.reuters.com time to read: +2 min

The export-led economy was expected to have expanded a seasonally-adjusted 0.1% last quarter, according to the median forecast of 21 economists, a sharp slowdown from the 0.7% quarterly growth in April-June. Three economists forecast an outright contraction and two expected the economy to flatline. "GDP growth is likely to have been slower in 3Q22 compared with 2Q22, mainly due to the slowdown in consumption. That, along with the Bank of Korea's (BOK) aggressive interest rate hikes to curb decade-high inflationary pressures, will weigh on the economy. According to a separate Reuters poll, growth is forecast to average 2.6% this year and ease to 1.9% next year.

☆ S.Korea to expand corporate-bond buying program - finance minister
▼ + stars: | 2022-10-23 | by ( ) www.reuters.com time to read: +1 min

SEOUL, Oct 23 (Reuters) - South Korea's financial authorities will raise the ceiling for their corporate bond-buying facility to 16 trillion won ($11 billion) from the current 8 trillion won, Finance Minister Choo Kyung-ho said on Sunday. The measure is aimed at easing concerns of a liquidity crunch in corporate bond and short-term money markets, Choo said after a meeting with top financial officials, including the Bank of Korea governor and financial regulatory agency chief. Commercial paper issued by securities firms will be included in the facility's purchase list, while an additional 3 trillion won of liquidity will be supplied by the Korea Securities Finance Corporation for securities firms experiencing temporary liquidity shortages, he said. ($1 = 1,428.3200 won)Register now for FREE unlimited access to Reuters.com RegisterReporting by Jihoon Lee; Editing by Christopher Cushing and William MallardOur Standards: The Thomson Reuters Trust Principles.

☆ South Korea expands corporate bond-buying program amid credit crunch concern
▼ + stars: | 2022-10-23 | by ( ) www.cnbc.com time to read: +1 min

South Korea Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho speaks with his staff attending the G-20 Finance Ministers Meeting in Bali, Indonesia on July 16, 2022. South Korea's government will expand its corporate bond-buying program among other liquidity supply measures amid growing worries about a credit crunch in bond and short-term money markets. The government will double the ceiling of its corporate bond-buying facility run by state-run banks to 16 trillion won ($11 billion), Minister of Economy and Finance Choo Kyung-ho said on Sunday. Commercial paper issued by securities firms will be included in the facility's purchase list, while an additional 3 trillion won of liquidity will be supplied by the Korea Securities Finance Corp for securities firms experiencing liquidity shortages, he said. The Bank of Korea's monetary policy board will also consider its own measures, such as reactivating a special purpose vehicle to purchase corporate bonds and commercial paper first introduced during the pandemic, Governor Rhee Chang-yong told reporters.

☆ Analysis: G7 fails to reach intervention deal to ease pain of soaring dollar
▼ + stars: | 2022-10-16 | by ( Leika Kihara | ) www.reuters.com time to read: +7 min

Banknotes of Japanese yen and U.S. dollar are seen in this illustration picture taken September 23, 2022. With a strong push from Japan, finance leaders of the Group of Seven advanced economies included a phrase in a statement on Wednesday saying they will closely monitor "recent volatility" in markets. "Many countries saw the need for vigilance to the spill-over effect of global monetary tightening, and mentioned currency moves in that context. "I've said on many occasions that I think a market-determined value for the dollar is in America's interest. "It's impossible to reverse the yen's downtrend with solo intervention," said Daisaku Ueno, chief forex strategist at Mitsubishi UFJ Morgan Stanley Securities.

☆ Bank of Korea governor says policy guidance harder with won's weakness
▼ + stars: | 2022-10-15 | by ( ) www.reuters.com time to read: +2 min

SEOUL, Oct 15 (Reuters) - South Korea's central bank governor said on Saturday external factors, such as aggressive U.S. policy tightening buoying the dollar and driving the won currency sharply down, made providing forward guidance on policy difficult. The Bank of Korea delivered its second-ever 50-basis-point rate hike on Wednesday and made clear the won's 6.5% slide in September that drove up import costs played a key role in the decision. "I have learned that communication with the public is not easy when transitioning from the traditional strategic ambiguity to forward guidance," Rhee said. He said that while the central bank was not targeting a specific level for the exchange rate, "it has to consider how a sharp rise in the exchange rate would affect financial stability conditions, such as capital outflow pressures." Register now for FREE unlimited access to Reuters.com RegisterReporting by Jihoon Lee Editing by Tomasz JanowskiOur Standards: The Thomson Reuters Trust Principles.

☆ South Korean household loans shrink sharply in Sept as rates rise
▼ + stars: | 2022-10-13 | by ( ) www.reuters.com time to read: +2 min

SEOUL, Oct 13 (Reuters) - South Korean households' loans from banks fell by the biggest amount in more than a year in September amid rising interest rates and an extended property market slowdown, further clouding the outlook for Asia's fourth-largest economy. Bank lending to households, including policy mortgage loans, shrank 1.2 trillion won ($840.96 million) in September, after a 0.3 trillion won gain in August, according to Bank of Korea data on Thursday. Growth in housing mortgage loans slowed to 0.9 trillion won, from 1.6 trillion won in the previous month, while other lending decreased by 2.1 trillion won, led by credit loans. South Korea's central bank has been aggressive in raising interest rates since August last year to tame the world's highest household debt and surging inflation. read moreThe country's property market has abruptly gone from sizzling hot to floundering.

☆ South Korea's Sept unemployment rate rises from record low
▼ + stars: | 2022-10-13 | by ( ) www.reuters.com time to read: +1 min

SEOUL, Oct 14 (Reuters) - South Korea's unemployment rate rose in September from a record low set in August while employment fell slightly, data showed on Friday, a sign that a year-long policy tightening campaign and slowing exports have begun to cool the economy. The country's seasonally adjusted unemployment rate rebounded to 2.8% in September from 2.5% in August, which was the lowest since the data series began in June 1999. However, it was still far below an average of 3.6% set in all of 2021. The employment rate edged down 0.1 percentage point to 62.2% in September from August after adjusting for seasonal factors, the Statistics Korea data showed. Bank of Korea Governor Rhee Chang-yong said after the rate decision on Wednesday that Asia's fourth-largest economy has begun softening, although economists expect it to raise the rate further in the coming months.

☆ Asia stumbles as China COVID, sterling wobbles shake sentiment
▼ + stars: | 2022-10-12 | by ( Kanupriya Kapoor | ) www.reuters.com time to read: +4 min

Sterling rose 0.4% to $1.1008 in late Asian trade but there are broader concerns about the direction of policy in Britain. In Japan, the rampaging dollar breached 146 yen for the first time in 24 years, prompting authorities in Tokyo to pledge necessary steps in the foreign exchange market if needed. Renewed U.S. dollar strength also sent the risk-sensitive Australian dollar to $0.6247, the lowest since April 2020. U.S. inflation data on Wednesday and Thursday is expected to keep the Fed on an aggressive rate hike path. It was the third straight dip in prices as investors worried about falling fuel demand and tightening COVID-19 curbs in China.

Joo and Shin voted for a smaller hike in the rate, Rhee said in news conference, but did not elaborate on their views. Twenty-three of 26 analysts expected the bank to go for a half-point hike in a Reuters poll, while the remaining three expected a quarter-point hike. The median forecast in the poll showed the BOK's base rate going to 3.25% by year-end and then peaking at 3.50% in the first quarter of 2023. Almost half of respondents in the Reuters poll expected the base rate to reaching 3.75% in the first quarter of next year. After Wednesday's rate hike, the Korea Federation of Small- to Medium-sized Enterprises expressed "serious concern" about higher rates.

The Bank of Korea (BOK) raised its benchmark policy rate (KROCRT=ECI) by 50 basis points to 3.00% on Wednesday, bringing total rates hike since August last year to 250 basis points. Twenty-three of 26 analysts expected the bank to go for a half-point hike in a Reuters poll, while the remaining three expected a quarter-point hike. "The 50 bp hike today was the BOK's response to the sinking won, it seems." South Korea's three-year treasury bond futures fell after the BOK's statement on the decision. The median forecast in the poll showed the BOK's base rate going to 3.25% by year-end and then peaking at 3.50% in the first quarter of 2023.

☆ We expect the Bank of Korea will allow a wider rate differential with the Fed, says Goldman Sachs
▼ + stars: | 2022-10-12 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe expect the Bank of Korea will allow a wider rate differential with the Fed, says Goldman SachsGoohoon Kwon of the investment bank discusses the Bank of Korea's 50 basis point rate hike.

☆ Asia-Pacific markets mixed amid fears of slowing growth; yen weakens past 146
▼ + stars: | 2022-10-12 | by ( Abigail Ng | ) www.cnbc.com time to read: 1 min

Asia-Pacific markets were mixed on Wednesday amid concerns over the global economy and ahead of the Bank of Korea's rate decision. The Nikkei 225 in Japan was lower by about 0.2% while the Topix lost 0.15%. MSCI's broadest index of Asia-Pacific shares outside Japan was little changed. South Korea's central bank is expected to raise interest rates by 50 basis points to 3% on Wednesday, according to a Reuters poll. The Korean won last changed hands at 1,432.30 per dollar.

☆ Morning Bid: What a fine mess
▼ + stars: | 2022-10-11 | by ( ) www.reuters.com time to read: +2 min

Oct 11 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeeverSometimes it's better to say nothing at all. The rupee is even deeper in the mire than the won - this week it hit a record low of 82.82 per dollar. Both the BoK and Reserve Bank of India have intervened in FX markets this year to support their exchange rates. They - and others - might have to do more, raising the risk that central banks offload more of their U.S. Treasuries. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Morning Bid: China back for dollar thwack
▼ + stars: | 2022-10-09 | by ( ) www.reuters.com time to read: +2 min

Asian trade could be more volatile than usual as China reopens after the Golden Week holiday. Register now for FREE unlimited access to Reuters.com RegisterChina will be very much in focus this week. The Caixin services PMI over the weekend showed that activity contracted in September for the first time since May, and the economic data dump this week includes inflation, trade, and loan growth. Elsewhere in Asia this week the Monetary Authority of Singapore and Bank of Korea are set to raise rates. The BOK has already intervened to support the won, which last week hit a 13-1/2 year low, and the Singapore dollar is also close to a post-2009 low.

☆ S.Korean inflation expectations fall for a second month in Sept
▼ + stars: | 2022-09-26 | by ( ) www.reuters.com time to read: +1 min

SEOUL, Sept 27 (Reuters) - South Korean consumers' inflation expectations fell in September for a second month after six months of rises, although the decline was small, a central bank survey showed on TuesdayThe Bank of Korea said in a statement respondents to the survey gave a median answer of 4.2% when asked about their expectations for consumer inflation for the coming 12-month period, down from 4.3% in August, when the rate fell from 4.7% in July. The finding comes as South Korean policymakers have said inflation in Asia's fourth-largest economy would probably reach its peak by October, although the rate of expected inflation was still more than twice the central bank's target of 2%. The same survey found consumer confidence improved for a second month in September as the Consumer Sentiment Index (CSI) rose to 91.4 from 88.0 in August and 86.0 in July, which was the lowest since September 2020. However, the survey was conducted between Sept. 13-20, before the outcome of the U.S. Federal Reserve's Sept. 20-21 policy meeting rattled the global markets and would not include any change in outlook since then. Register now for FREE unlimited access to Reuters.com RegisterReporting by Choonsik Yoo; Editing by Christian SchmollingerOur Standards: The Thomson Reuters Trust Principles.

☆ South Korea finance minister says more foreign-exchange stabilizing measures are on the way
▼ + stars: | 2022-09-25 | by ( ) www.reuters.com time to read: +1 min

SEOUL, Sept 25 (Reuters) - South Korea's finance minister said the government would prepare more measures to stabilise the foreign exchange market, while downplaying the need for a currency swap arrangement with the United States. The measures include utilising the government's foreign exchange equalisation fund to meet shipbuilding companies' FX hedging demands, thereby increasing dollar supply in the local market, minister Choo Kyung-ho said during a televised interview on Sunday. It is part of FX authorities' efforts to ease volatility in the FX market, Choo said, in addition to a currency swap arrangement between the country's central bank and a pension fund announced on Friday, as they are seeing the South Korean won recently weakening at a faster pace than most peers. On a question about the possibility of a currency swap deal between the Bank of Korea and the U.S. Federal Reserve, Choo said it would definitely be helpful for the local market, but is not necessary yet in the current market situation. Register now for FREE unlimited access to Reuters.com RegisterReporting by Jihoon Lee Editing by Chris ReeseOur Standards: The Thomson Reuters Trust Principles.

☆ S.Korea Aug PPI posts first monthly fall in two years - c.bank
▼ + stars: | 2022-09-22 | by ( ) www.reuters.com time to read: 1 min

Register now for FREE unlimited access to Reuters.com RegisterSEOUL, Sept 23 (Reuters) - South Korea's producer price pressures eased in August, posting the first monthly fall in nearly two years, central bank data showed on Friday. The producer price index rose 8.4% in August from the same month a year ago, cooling from a 9.2% rise in July and the slowest pace since September 2021, according to the Bank of Korea data. The index fell 0.3% on a monthly basis, marking its first fall since October 2020. Register now for FREE unlimited access to Reuters.com RegisterReporting by Jihoon Lee; Editing by Kim CoghillOur Standards: The Thomson Reuters Trust Principles.

☆ S.Korean won falls through key level after Fed hike
▼ + stars: | 2022-09-21 | by ( Choonsik Yoo | ) www.reuters.com time to read: +2 min

A South Korea won note is seen in this illustration photo May 31, 2017. The won fell as much as 0.9% to 1,406.8 per dollar in early onshore trading, marking the first time it crossed the 1,400-won mark since late March 2009. Both the finance ministry and the central bank separately issued warnings that they would act against excessive movements in the foreign exchange market. "The authorities will introduce various measures aimed at easing a supply-demand imbalance for foreign currencies from the pension fund and foreign trading companies," Minister Choo Kyung-ho said at a meeting of senior officials. Both the Bank of Korea and the National Pension Service declined to comment on the reports.

Search resuls for: "Bank of Korea"

19 mentions found