Drillship for East Sea gas exploration launches operation

A drillship participating in a major resource exploration project in the East Sea began its first drilling operation early Friday, the state-run oil company said, marking the full-fledged start of the search for an estimated 3.5 billion to 14 billion barrels of oil and gas. The announcement followed the arrival of the West Capella, operated by Norway-based Seadrill Ltd., near the southeastern port city of Busan on Dec. 9 for supplies. The drillship reached its first drilling site Tuesday. The dr

Dec. 20, 2024

Seoul shares plunge nearly 2% on hawkish Fed, Micron shock; won tumbles

Seoul shares tumbled nearly 2 percent Thursday as risk appetite weakened after the US Federal Reserve hinted at a slower monetary easing cycle next year and US tech giant Micron Technology's sharp losses overnight. The Korean won was sliding against the US dollar. The benchmark Korea Composite Stock Price Index plummeted 48.5 points, or 1.95 percent, to close at 2,435.93. The local currency was trading at 1,451.9 won against the greenback at 3:30 p.m., down 16.4 won from the previous sessio

Dec. 19, 2024

Authorities on alert as Korean won sinks to 15-year low

The Korean won fell Thursday to its weakest levels against the US dollar since the 2009 global financial crisis as the dollar strengthened after the US central bank signaled a slower pace of rate cuts, fueling concerns over further depreciation as markets continue to digest political turmoil unfolding here. The Korean currency opened at 1,453 per dollar, down 17.5 from the previous session. This is the first won slide to breach 1,450 against the greenback in over 15 years, since March 16 in 20

Dec. 19, 2024

Finance minister warns of short-term market volatility following US rate cut

Finance Minister Choi Sang-mok on Thursday forecast heightened volatility in South Korea's financial and foreign exchange markets in the short term following the US Federal Reserve's latest rate cut. The Federal Open Market Committee concluded its two-day meeting Wednesday by lowering its benchmark interest rate by a quarter percentage point to a range of 4.25 to 4.50 percent. It followed a quarter-percentage-point cut last month and a 50-basis-point reduction in September. "With

Dec. 19, 2024

Seoul shares open sharply lower after Fed rate cut; won sharply down

Seoul shares started over 1.8 percent lower Thursday after the US Federal Reserve cut its rate for the third consecutive time but signaled fewer rate cuts next year. The Korean won opened sharply lower against the US dollar. The benchmark Korea Composite Stock Price Index shed 45.47 points, or 1.83 percent, to 2,438.96 in the first 15 minutes of trading. The Korean won also plummeted to breach 1,450 won per US dollar, reaching a 15-year low. It was trading at 1,450.8 won against the greenback at

Dec. 19, 2024

Household spending projected to fall 1.6% next year: poll

Households in South Korea are expected to reduce their spending by an average of 1.6 percent in 2025 from this year, a poll showed Thursday. According to the survey on 1,000 adults conducted by Mono Research from Nov. 13-20, 53 percent of respondents said they plan to reduce their spending next year, while 47 percent indicated an increase. When asked about the rate of change in spending, the average was recorded at minus 1.6 percent. The poll was commissioned by the Federation of Korean Industri

Dec. 19, 2024

US Fed cuts key lending rate by quarter-percentage point, signals fewer cuts next year

The US Federal Reserve on Wednesday lowered its benchmark interest rate by a quarter-percentage point and signaled the possibility of two reductions next year, two fewer than what it penciled in three months ago. After the two-day Federal Open Market Committee meeting, the central bank announced the decision to reduce the rate to the 4.25 to 4.50 percent range. It followed a quarter-percentage-point cut last month and a 50-basis-point reduction in September. FOMC members' new median economi

Dec. 19, 2024

Govt. vows to encourage increased corporate investment

The South Korean government pledged to implement a set of measures to stimulate corporate investment despite the recent political disruption sparked by President Yoon Suk Yeol's short-lived martial law declaration. “With the escalated uncertainties surrounding the economy, a sense of crisis has been growing,” Deputy Prime Minister and Finance Minister Choi Sang-mok said at a governmental meeting held at the Government Complex Seoul on Wednesday, joined by other economy-related

Dec. 18, 2024

Seoul vows to restore market credibility amid political turmoil

Finance Minister Choi Sang-mok on Wednesday vowed to restore market credibility amid the ongoing political turmoil, stressing that the indicators that gauge market volatility and economic instability show signs of easing thanks to the swift responses by the government and the country's constitutional and economic systems. "The budget plan and key tax bills were passed in the National Assembly on Dec. 10, demonstrating that Korean economic policies are moving forward through consultatio

Dec. 18, 2024

Samsung to present AI-driven appliances at CES 2025

Samsung Electronics announced Wednesday that it will unveil a new lineup of home appliances powered by artificial intelligence at CES, the world’s largest tech trade show taking place in Las Vegas from Jan. 7-10, 2025. The lineup includes AI-driven refrigerators, washing machines and dryers designed to streamline household tasks and enhance connectivity. Central to these devices is Samsung’s “AI Home” solution, which allows users to remotely monitor and control all compat

Dec. 18, 2024

Trade minister highlights need to work with like-minded nations to overcome uncertainties

Trade Minister Cheong In-kyo on Wednesday emphasized the importance of a robust multilateral trading system to support the country's strong exports and stable supply chains amid growing global uncertainties, including the launch of a new US administration. Cheong made the remark during a virtual meeting with government officials, where participants discussed ways to address trade uncertainties through methods beyond bilateral agreements, according to the Ministry of Trade, Industry and Ener

Dec. 18, 2024

S. Korea to ease regulations, enabling new hydrogen charging stations

South Korea's industry ministry said Wednesday the country plans to implement eased regulations for hydrogen charging stations next year in line with efforts to support the sector's ecosystem. The set of new rules is reflected in the revised high-pressure gas safety control act, which will be implemented in May, focusing on lowering barriers for building new hydrogen charging stations, according to the Ministry of Trade, Industry and Energy. Under the updated guideline, the required sa

Dec. 18, 2024

S. Korean economy grows 6.9% per year since 1954 under new base year

South Korea's economy grew at an annualized rate of nearly 7 percent after a change in the base year for economic growth data compilation, central bank data showed Wednesday. According to the data from the Bank of Korea, Asia's fourth-largest economy expanded at an average 6.9 percent per year from 1954 to last year under the new base year of 2020, up from a 6.8 percent advance under the previous base year of 2015. The data also showed that the nominal gross domestic product (GDP) stoo

Dec. 18, 2024

S. Korea unveils blueprint for energy R&D projects

South Korea's industry ministry on Wednesday unveiled a blueprint for government investment in energy research and development projects to maintain a stable power supply using carbon-free sources. The energy technology development plan, effective through 2033, is expected to generate an economic effect of 59 trillion won ($41 billion), according to the Ministry of Trade, Industry and Energy. Under the blueprint, the country aims to achieve a technological self-sufficiency rate of 90 percent

Dec. 18, 2024

Martial law debacle likely to hurt job market: report

The political turmoil following President Yoon Suk Yeol's ill-fated martial law declaration could negatively impact the labor market, according to a report by a state-run think tank. The Korea Labor Institute said that employment for 2025 is expected to increase by less than 100,000 compared to this year, in its report submitted to Rep. Kim Hyun-jung of the main opposition Democratic Party of Korea. This is significantly less than the institute's previous estimate of 120,000, which it

Dec. 17, 2024

Political uncertainty weighs on Korea’s credit rating

The political turmoil surrounding President Yoon Suk Yeol has begun to subside since the National Assembly passed the motion to impeach him on Saturday, but the uncertainty in state leadership continues to weigh on the country’s sovereign credit rating. Shortly after the fiasco caused by Yoon’s martial law declaration earlier this month, three major global credit appraisers -- Moody's Ratings, Fitch Ratings and S&P Global Ratings -- warned that prolonged political instabilit

Dec. 17, 2024

Economy's biggest fear is uncertainty, says SK chief

SK Group Chairman Chey Tae-won, who also heads the Korea Chamber of Commerce and Industry, on Tuesday urged policymakers to ensure consistent economic policies to support businesses amid growing uncertainty following the National Assembly’s impeachment of President Yoon Suk Yeol over his botched martial law decree. During a meeting with National Assembly Speaker Woo Won-shik, Chey relayed the business community’s concerns regarding stalled economic bills and the challenge of navigati

Dec. 17, 2024

Govt. to front-load 75% of next year's state budget in H1

The finance ministry said Tuesday that 75 percent of fiscal spending for 2025 will be allocated for implementation in the first half of the year to better support vulnerable populations. The Cabinet approved a plan to front-load 431.1 trillion won ($300.2 billion) from next year's total fiscal budget of 574.8 trillion won during the January-June period, according to the ministry. The spending will primarily focus on assisting low-income and other vulnerable groups, as well as supporting sma

Dec. 17, 2024

Chief financial regulators from S. Korea, Japan agree on further cooperation

Chief financial regulators from South Korea and Japan agreed on Monday to further cooperate for the stability of the financial market in the East Asian region. Lee Bok-hyun, governor of the Financial Supervisory Service (FSS), held a meeting with Ito Hideki, commissioner of the Financial Services Agency (FSA), in Tokyo earlier in the day. They exchanged views on the global economic and financial situation, and its impact on Korean and Japanese financial institutions as well as the recent develop

Dec. 16, 2024

Get ready for aggressive US trade policy: ex-Trump adviser

A former top trade adviser to US President-elect Donald Trump during his first administration warned that Trump's second term would likely adopt a more “aggressive” stance on trade, urging South Korean businesses to engage proactively with US officials to navigate potential challenges. Stephen Vaughn, a lawyer and former acting US Trade Representative, spoke at a seminar, titled "Trade Regulations Under Trump's Second Term: Risk Management and Strategies for Korean Com

Dec. 16, 2024