Koo Yoon-chul: "Will Actively Utilize Available Measures if Foreign Exchange Imbalance Persists" (Comprehensive)

On November 14, Koo Yoon-chul, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance, stated that uncertainty in the foreign exchange market has been increasing recently, adding, "If the imbalance in foreign exchange supply and demand persists, we will actively utilize all available measures to respond." Deputy Prime Minister Koo presided over a market situation review meeting on this day, where recent trends in domestic and international financial and foreign exchange markets were assessed and future response strategies were discussed. The meeting was attended by Bank of Korea Governor Rhee Changyong, Financial Services Commission Chairman Lee Eogwon, and Financial Supervisory Service Governor Lee Chanjin. The won-dollar exchange rate closed at 1,467.6 won in the previous week's trading, up 2.0 won, marking a third consecutive day of increases. The sharp rise in government bond yields, driven by concerns that the Bank of Korea's rate-cutting cycle may be endin

Policy

11.14 09:24

[1mm Finance Talk] "Do We Have to Keep Serving the Former Governor's Loyalists?"...FSS Unsettled Over Plans for Minor Reshuffle

There is growing unrest within the Financial Supervisory Service (FSS) amid reports that the upcoming executive reshuffle will not be extensive. Employees are increasingly concerned that if executives appointed during the previous governor's tenure remain in their positions, the harsh supervisory and inspection practices, as well as frequent overtime work that characterized that period, will be repeated. As speculation mounts that Governor Lee Chanjin is considering only a minor reshuffle, internal opposition is also rising. According to the financial sector on November 14, a post regarding the executive reshuffle appeared on the FSS's anonymous bulletin board earlier this month. The post called for a vote on which executives should be 'out' in the upcoming personnel changes. Out of approximately 2,000 FSS employees, about 300 participated in the vote. As a result, Senior Deputy Governor Lee Sehun and several deputy governors who held key positions during former Governor Lee Bokhyeon

Policy

11.14 07:50

China to Become World's Top Net Creditor Nation by Year-End [Economic Policy Zoom-In]

China is projected to become the world's largest net creditor nation by the end of this year. Japan held the top spot for net foreign financial assets for about 30 years until 2023, and Germany took the lead in 2024. While there are several variables, China is expected to take the top position by the end of this year. As of the end of the second quarter this year, Germany still holds the top spot, but it is ahead of China by only 80 billion dollars. In the first half of this year, China recorded a current account surplus of 294.1 billion dollars, while Germany posted 120.1 billion dollars, resulting in a difference of about 170 billion dollars. If similar trends continue in the second half, it is almost certain that China will become the world's top net foreign asset holder. Japan, after losing its number one position to Germany last year for the first time in 34 years, has already dropped to third place as of the end of the second quarter this year, behind China. Hong Kong and Norway

Policy

11.13 11:14

Banks Face Emergency in Managing Soundness Amid Need for Productive Finance and Surging Exchange Rate

As the won-dollar exchange rate continues its sharp upward trend, banks are now on high alert to manage their financial soundness. With banks already expanding corporate lending and taking on additional financial burdens to promote productive finance, the recent surge in the exchange rate has raised concerns that the Common Equity Tier 1 (CET1) ratio?a key indicator of financial soundness for major financial holding companies?could decline. Won-dollar exchange rate surges by over 70 won in two months, putting pressure on banks' soundnessAccording to the financial markets on November 13, the won-dollar exchange rate, which stood in the 1,380 won range in mid-September, has surged by more than 70 won in just two months, closing at 1,465.7 won as of the previous day's weekly trading session. During intraday trading the previous day, it reached 1,470 won, marking the highest level in seven months since April 9. The surge in the exchange rate is attributed to a combination of factors, incl

Policy

11.13 07:47

"Extending Restaurant Hours Is Not Enough... Start by Improving the Side Dishes," Experts Advise [The Era of 24-Hour Trading Is Coming ③]

"Extending restaurant hours is not a cure-all. We need to start by improving the side dishes," said Andonghyeon, Professor of Economics at Seoul National University. "Even in Korea, it seems likely that a 24-hour trading era will open for at least a few products within the next five years, but the key issue is speed. We need to proceed sequentially," said Lee Hyoseop, Senior Research Fellow at the Korea Capital Market Institute. Domestic capital market experts agree that the Korean stock market is headed toward a 24-hour trading system similar to the United States. However, they unanimously point out that the critical issues are the 'speed' and 'method' of implementation. They emphasize that, while mechanisms to control liquidity and volatility during nighttime trading must be established, it is also essential to first eliminate zombie companies and improve corporate fundamentals to attract foreign investors. In particular, since investment conditions such as liquidity differ from thos

Policy

11.13 07:00

Lee Changyong: "GDP Improving, But Still Below Potential Growth Rate... Reason for Maintaining Easing Stance"

Lee Changyong, Governor of the Bank of Korea, stated that the central bank is maintaining its accommodative monetary policy stance despite signs of improvement in gross domestic product (GDP) in the second half of the year, as the economy still remains below its potential growth rate. However, he indicated that there is a possibility of upward revisions to this year's and next year's economic growth rates in the revised economic outlook to be announced on November 27, and that decisions regarding the magnitude, timing, and direction of a rate cut will be made after reviewing the relevant data. GDP Remains Below Potential Growth Rate... Rate Cut Cycle MaintainedGovernor Lee made these remarks in an interview with Bloomberg in Singapore on the 12th, where he was attending a fintech (finance + technology) event. When asked why the possibility of a rate cut remains despite higher-than-expected third-quarter GDP and robust exports, he pointed to concerns about an economic growth rate (1.8?

Policy

11.12 17:36

[Q&A] Lee Eogweon: "Increase in Unsecured Loans... Not Enough to Threaten Financial Soundness"

Lee Eog-weon, Chairman of the Financial Services Commission, assessed that the recent increase in unsecured loans is not significant enough to drive the overall growth of household debt or pose a threat to financial soundness. On November 12 at a press briefing held at the Government Complex Seoul in Jongno-gu, Seoul, Chairman Lee responded to a question about whether the recent surge in unsecured loans is manageable within the total lending volume, stating as much. He explained, "Household loans increased in October, but the amount of general mortgage loans dropped from 4 trillion won in June to 1 trillion won in October, showing a continuous decline. Unsecured loans, which were negative in September, increased by about 1 trillion won in October." Regarding the recent trend of 'debt-driven investment,' he emphasized, "It is important to invest under one's own responsibility while managing risks." Concerning the continued record-high real estate prices in certain areas even after the a

Policy

11.12 14:16

[Photo] Vice Chairman Lee Eogweon Speaks on Financial Issues

Lee Eog-weon, Vice Chairman of the Financial Services Commission, speaks on recent issues during a press briefing with reporters at the Seoul Government Complex in Jongno-gu, Seoul, on November 12.

Policy

11.12 14:00

National Growth Fund Secretariat Launched... Ready to Support AI Global Competition

Koo Yoon-chul: "Will Actively Utilize Available Measures if Foreign Exchange Imbalance Persists" (Comprehensive)

[1mm Finance Talk] "Do We Have to Keep Serving the Former Governor's Loyalists?"...FSS Unsettled Over Plans for Minor Reshuffle

China to Become World's Top Net Creditor Nation by Year-End [Economic Policy Zoom-In]

Banks Face Emergency in Managing Soundness Amid Need for Productive Finance and Surging Exchange Rate

"Extending Restaurant Hours Is Not Enough... Start by Improving the Side Dishes," Experts Advise [The Era of 24-Hour Trading Is Coming ③]

Lee Changyong: "GDP Improving, But Still Below Potential Growth Rate... Reason for Maintaining Easing Stance"

[Q&A] Lee Eogweon: "Increase in Unsecured Loans... Not Enough to Threaten Financial Soundness"

[Photo] Vice Chairman Lee Eogweon Speaks on Financial Issues

Special Coverage

In the News