Bank of Korea Keeps Rates Unchanged at 3.50%, Too Early on Stable Won Level

South Korea’s Monetary Policy Board kept its base rate unchanged at 3.5% during its July meeting for a fourth straight meeting on Thursday as widely expected in a unanimous decision while six of the board members kept the door open for further rate hikes and there was no discussion about cutting rates, said Governor Rhee Chang-yong, who did not reveal his own view. The BOK has risen rates by 300 cumulative basis points since the BOK started the tightening cycle … Continue reading “Bank of Korea Keeps Rates Unchanged at 3.50%, Too Early on Stable Won Level”

Bank of Korea Keeps Rates Unchanged at 3.50%, Higher Rate Remains Possible

South Korea’s Monetary Policy Board kept its base rate unchanged at 3.5% during its April meeting as widely expected in a unanimous decision while five of six Board members guide that a higher rate remains possible which is likely geared toward leaning against betting on rate cuts. The BOK has risen rates by 300 cumulative basis points since the BOK started the tightening cycle with seven straight interest hike and the tenth increase since August 2021. Consumer price inflation has … Continue reading “Bank of Korea Keeps Rates Unchanged at 3.50%, Higher Rate Remains Possible”

Bank of Korea Keeps Rates Unchanged at 3.50%, Lowers Headline Inflation Forecast

South Korea’s Monetary Policy Board kept its base rate unchanged at 3.5% during its February meeting. The move follows last month’s hike to the highest level since late 2008 as expected. The move saw the BOK has risen rates by 300 cumulative basis points since the BOK started the tightening cycle with seven straight interest hike and the tenth increase since August 2021. Consumer price inflation has been falling since hitting a 24-year high of 6.3% in July, but the … Continue reading “Bank of Korea Keeps Rates Unchanged at 3.50%, Lowers Headline Inflation Forecast”

2023 Year of the Rabbit, What Does it Mean for You and Financial Markets

The lunar new year typically falls on the second new moon after the winter solstice and is celebrated in countries across East and Southeast Asia, including China, Korea, Japan, Vietnam, Singapore, and Taiwan. The year of the rabbit in the Chinese zodiac occurs every 12 years and the next one begins Sunday January 22, 2023. Lunar New Year is also known as the Chinese New Year or the Spring Festival when Asian communities around the world this year will say … Continue reading “2023 Year of the Rabbit, What Does it Mean for You and Financial Markets”

Semiconductors Lift South Korean ICT Exports to All Time High in 2022

South Korea shipments of information and communications technology (ICT) products in 2022 reached an all-time high of USD 233.3 billion, up 2.5 percent from 2021.  ICT exports achieved a trade surplus of $80.9 billion and make up 34.1% of Korea’s total annual exports. Imports went up 12.9% to $152.5 billion. ICT exports to most major regions expanded, however shipments to South Korea’s largest trading partner, China (including Hong Kong) shrank 4.9% to $102.3 billion as zero-COVID lockdowns and halted production lines … Continue reading “Semiconductors Lift South Korean ICT Exports to All Time High in 2022”

Bank of Korea Raises Rates To 3.50%, Highest level Since August 2008

South Korea’s Monetary Policy Board decided today to raise the Base Rate to 3.50%, the highest level since late 2008 as expected. The move means the BOK has risen rates by 300 cumulative basis points since the BOK started the tightening cycle. This was the BOK’s seventh straight interest hike and the tenth increase since August 2021. Consumer price inflation has been falling since hitting a 24-year high of 6.3% in July, but the current rate of around 5% is … Continue reading “Bank of Korea Raises Rates To 3.50%, Highest level Since August 2008”

South Korean Trade Deficit Biggest Ever Since 1956 with Crumbling Won and High Energy Prices

South Korea for the full year of 2022, the trade balance posted a deficit of USD 47.2 billion, more than double of the previous record deficit of USD 20.72 registered in 1996, and the biggest ever figure since 1956. The trade deficit in South Korea surged to USD 4.69 billion in December 2022 from USD 0.43 billion in the same month a year earlier a preliminary figure showed. However, it was smaller than the market consensus of a 6.74 billion … Continue reading “South Korean Trade Deficit Biggest Ever Since 1956 with Crumbling Won and High Energy Prices”

South Korea’s Kospi the Weakest Stock Market in Asia This Year, Closing Down 24.9%

South Korea’s blue chip Kospi stock market lost almost a quarter of its value in 2022, ending down -24.9%, it was the weakest major Asian stock market this year with its worst performance since 2008. The Kospi was closed for a holiday on the last trading day of the year and closed down -3.3% for the week. Weakness in semiconductor stocks and internet giants particularly hurt the Index with Samsung Electronics being a major component and down 26% decline. Kakao was down … Continue reading “South Korea’s Kospi the Weakest Stock Market in Asia This Year, Closing Down 24.9%”

Bank of Korea Raises Rates To 3.25%, Highest level Since June 2012

South Korea’s Monetary Policy Board decided today to raise the Base Rate to 3.25%, the highest level since June 2012 as expected with continuing US dollar strength. The move means the BOK has risen rates by 250 cumulative basis points since August 2021. This was the BOK’s sixth straight interest hike and the ninth increase since August 2021. Consumer price inflation has remained high at 5.7% in October due to increases in electricity and gas fees and the accelerating price … Continue reading “Bank of Korea Raises Rates To 3.25%, Highest level Since June 2012”

Bank of Korea Raise Rates Again To 3.00% as US Dollar Batters Won and Yen

South Korea’s Monetary Policy Board of the Bank of Korea decided today to raise the Base Rate to 3.00%, the highest since mid-2019 as expected with continuing US dollar strength. The move means the BOK has risen rates by 225 cumulative basis points since August 2021. This was the biggest increase since the central bank adopted interest rates as its primary policy tool in 1999. Consumer prices in South Korea rose 5.6% year-on-year in September 2022, easing slightly from last … Continue reading “Bank of Korea Raise Rates Again To 3.00% as US Dollar Batters Won and Yen”