Thinner Wallets of Koreans Over the Past 2 Years [3-Minute Brief]

[At a Glance]
① Bank of Korea Holds Interest Rates Steady, Will Cut Only When Inflation Is Controlled
② Much-Debated Bitcoin Spot ETF Finally Approved
③ Internet Banks Attract Customers Switching Mortgage Loans

MARKET INDEX

- US New York stock market's three major indices closed mixed near flat
- December Consumer Price Index (CPI) stronger than expected
- Some say the first interest rate cut may be delayed

TOP3 NEWS

■ Bank of Korea holds rates steady for 1 year... rate cuts await inflation control

- Bank of Korea kept the base rate at 3.50% for 8 consecutive times
- Plans to shift only after inflation clearly subsides
- High household debt levels also a factor for continued tightening

■ Much-discussed Bitcoin enters spot ETF

- US SEC approved Bitcoin ETF on the 10th
- Opens channel for global institutional funds inflow
- Additional fund inflow estimated at 26 trillion KRW

■ Parental allowance increased to 1 million KRW for 0-year-olds and 500,000 KRW for 1-year-olds

- Government to raise parental allowance up to 1 million KRW starting January this year
- Previously, only 700,000 KRW for 0-year-olds and 350,000 KRW for 1-year-olds
- Policy to compensate income loss due to childbirth and childcare

Graphic News: Internet banks attracting customers refinancing mortgage loans

- Customers switching to internet banks offering lower interest rates than commercial banks
- Lower capital procurement and operating costs due to online business model
- Internet banks expect to attract customers for jeonse loans by the end of this month

the Chart: Prices surpassing wages since 2022

- High inflation persisted after the COVID-19 pandemic, but wage increases were lower
- Living cost index affecting perceived inflation rose more than consumer price index
- Similar trend expected this year... minimum wage up 2.5%, inflation forecast 2.6%

Terms in the News: 'Reconstruction Safety Inspection' fluctuating for 21 years depending on administration

- Safety inspections assess housing deterioration and defects to determine reconstruction eligibility
- Must receive D grade (conditional reconstruction) or E grade (reconstruction confirmed) among A to E grades for approval
- Structural safety weight and fast-track policies largely influenced by government policies

Today's Key Schedule

○ Overseas
- 04:00 US December Federal Fiscal Balance
- 08:50 Japan November Adjusted Current Account Balance
- 10:30 China December Consumer Price Index
- 12:00 China December Trade Balance
- 16:00 UK November Monthly GDP
- 16:45 France December Consumer Price Index
- 19:00 China New Loans
- 21:00 India December Consumer Price Index
- 21:30 European Central Bank (ECB) Chief Economist Lane Speech
- 22:30 US December Producer Price Index

◇ Lunch & Commute Weather

○ Lowest temperature -4℃(▲2℃) ｜ Highest temperature: 4℃(▼2℃)
○ Precipitation probability 0% in the morning｜0% in the afternoon
○ Fine dust level Bad in the morning｜Moderate in the afternoon

OK in 3 minutes, essential time-efficient economic news. Published daily at 8 AM.

This content was produced with the assistance of AI translation services.