Latest news with #Korea
The Independent
31 minutes ago
- Business
- The Independent
South Korea's central bank cuts borrowing costs to nurse the sluggish economy
South Korea's central bank cut its key interest rate and sharply lowered its growth outlook for the country's economy in 2025, as it moved Thursday to counter U.S. President Donald Trump's tariff hikes and weak domestic demand worsened by recent political turmoil. Following a monetary policy meeting, the Bank of Korea cut its benchmark interest rate by a quarter percentage point to 2.5%. It was its fourth cut since October, when it began lowering borrowing costs for the first time in years to support a weakening economy. The bank slashed its 2025 growth outlook to 0.8%, nearly halving its previous projection of 1.5% announced in February. Share prices jumped, with the Kospi gaining 1.7%. Although trade tensions have recently eased, the global economy is still expected to slow due to the lingering effects of increased tariffs. U.S.- China friction over trade and geopolitical uncertainties will continue to weigh on markets, the bank said in a statement. South Korea's domestic economic activity remained sluggish in April following a contraction in the first quarter driven by weak consumption and business investment, the bank said. It said job creation in manufacturing and other sectors was slow. Since beginning his second term, Trump has vowed to slap huge new tariffs on foreign products entering the United States, including those from Mexico, Canada and China, which he insists will create more domestic jobs and shrink the federal deficit. In recent weeks, South Korea has sent trade officials to Washington to discuss the Trump administration's trade measures, including reciprocal tariffs and potential product-specific duties on semiconductors and cars, which are major exports for the country's trade-dependent economy. A decision by a U.S. federal court saying Trump lacks the legal authority to impose such tariffs could upset his plans, but the White House has appealed and it's unclear what will happen in the longer run. Experts say South Korea's leverage in trade talks and its ability to tackle domestic economic challenges have been undermined by political instability after former President Yoon Suk Yeol's ill-fated imposition of martial law in December. Yoon was formally ousted from office in April, setting the stage for a snap presidential election next week.
Reuters
35 minutes ago
- Business
- Reuters
South Koreans turn out in record numbers for early voting in presidential election
SEOUL, May 29 (Reuters) - South Koreans began turning out in record numbers for early voting on Thursday in the country's snap presidential polls set to take place next week, election commission data showed, as both of the leading candidates cast their ballots. The June 3 election comes after months of political turmoil and a power vacuum following the botched attempt by former leader Yoon Suk Yeol to impose martial law. The liberal Democratic Party's candidate Lee Jae-myung, the frontrunner in the polls before a blackout period banning opinion polls began on Wednesday, cast his ballot in Seoul. "In order to overcome the current crisis... and start again as a Korea of recovery and growth, please vote," Lee said after casting his ballot at a university district in the city. His comment came after the Bank of Korea cut interest rates on Thursday and slashed its 2025 growth forecast for Asia's fourth-largest economy to 0.8% from 1.5% previously. On Wednesday, Lee pledged to establish a new Ministry of Climate and Energy to "respond to the climate crisis", and expand and reorganise the Ministry of Gender Equality and Family to promote equal rights and deal with any reverse discrimination. Some 3,107,164 people, or 7.00% of total eligible voters, had voted as of around 11 a.m. (0200 GMT), according to National Election Commission data, the highest turnout for the equivalent period in a presidential poll and compared with 5.38% in the 2022 vote. South Korea has 44.39 million eligible voters and early voting is allowed on Thursday and Friday. The top three candidates based on the last published Gallup Korea poll before the blackout period put Lee at 49% public support, followed by his main conservative rival Kim Moon-soo of the People Power Party with 35% and another conservative candidate, the New Reform Party's Lee Jun-seok, on 11%. Kim and Lee Jun-seok also voted on Thursday. Kim had eroded what was a more than 20 percentage point gap with Lee Jae-myung at the start of the campaign on May 12, but has failed to convince Lee Jun-seok to drop out and back him to improve his chances.
Washington Post
an hour ago
- General
- Washington Post
A look at key events that triggered South Korea's snap presidential election
SEOUL, South Korea — After months of political turmoil, South Koreans head to the polls next week to elect a president to succeed disgraced former leader Yoon Suk Yeol, who was ousted from office over his ill-fated decision to impose martial law in December. Here is a timeline of events that led to Tuesday's tense snap election:
Coin Geek
an hour ago
- Business
- Coin Geek
South Korea to permit corporations to sell digital assets
Getting your Trinity Audio player ready... South Korea is finally lifting a ban on corporations' involvement in the digital asset world, allowing them to sell their tokens for the first time in eight years. Korea's Financial Service Commission (FSC) announced that local non-profits and exchanges can now cash out their digital assets if they meet all the compliance requirements. The watchdog banned 'crypto' sales by corporations in December 2017 to prevent exchanges from competing with their users and avoid unchecked speculation. In January 2025, the FSC indicated it was mulling allowing corporations to hold digital assets, but it later changed its tune and called for more time to weigh the policy. The agency is now ready to move ahead with the new directive. For exchanges, they must be registered as virtual asset operators and can only sell tokens 'for the purpose of covering operating expenses,' FSC said during the latest meeting of its Virtual Asset Committee. To reduce market impact, exchanges can only sell the top 20 tokens by market capitalization on the five major local exchanges and are subject to daily sales limits. Additionally, they cannot sell the tokens on their own platforms, as doing so would present a conflict of interest. Exchanges must secure a resolution from their board of directors before undertaking any sales and submit disclosure obligations to the FSC. Meanwhile, non-profits that receive digital asset donations can now sell them for the first time, expanding the sources of funding for the country's 14,000 non-governmental organizations (NGOs). Source: Financial Services Comittee To qualify, these corporations must be externally audited by a firm with at least five years of experience. Sales are limited to tokens listed on at least three local exchanges, and the tokens must be cashed out immediately upon receipt. 'Lastly, to prevent money laundering, we have strengthened the confirmation and verification of transaction purposes and sources of funds and only allowed donations and transfers through domestic won exchange accounts, requiring banks, exchanges, and corporations to perform customer verification in an overlapping manner,' the watchdog stated. Beyond the new corporate trading rules, the FSC warned against listing 'zombie coins' whose local daily transaction volume and global market cap don't meet set thresholds. Exchanges must also list memecoins sparingly, and only when they have exceeded a set transaction threshold or have been trading over a long period of time on reputable offshore exchanges. The new rules come just days before South Koreans head to the polls to elect their next president. The two leading candidates, representing the ruling People Power Party (PPP) and the Democratic Party (DP), have sought to lure the 15 million digital asset traders with campaign promises of better laws and new 'crypto' products. The two have also pledged to push for digital asset exchange-traded funds (ETFs) and won-pegged stablecoins; the latter has been the subject of debate over which regulator should oversee the industry. Russia's latest bill allows digital asset seizure In Russia, the government is pushing new laws that would enable the seizure of digital assets used in crime. The Federal Ministry of Justice developed the new bill, classifying digital assets as property the government can confiscate. Speaking at a recent industry event, Deputy Justice Minister Vadim Fedorov noted that as 'crypto' adoption rises, the government has been devising legal means of combating related crime. Fedorov stated that the government will enlist blockchain experts to 'determine the set of necessary measures to ensure the safety of digital currency for subsequent confiscation or settlement of the victims' claims.' The bill, which now heads to the State Duma, acknowledges that some digital assets will require specialized measures due to their inbuilt privacy features. The minister claimed that digital assets have attracted criminals due to their 'anonymity' and lack of a centralized control system. This makes them more efficient for use in crime than cash and other valuables, he added. However, according to Chainalysis, crime only accounted for 0.14% of all digital asset volume in 2024. Separately, the Ministry of Finance is pushing a bill that would establish fines for Russians who make payments in digital currencies within the country. The bill seeks to impose a fine of up to 200,000 rubles ($2,500) for individual violators and up to a million rubles ($12,500) for legal entities. Russian firms have been increasingly using digital assets as payments in their trading with foreign firms, especially with their Chinese and Indian partners. However, digital asset payments are banned for local usage. Watch: Breaking down solutions to blockchain regulation hurdles width="560" height="315" frameborder="0" allowfullscreen="allowfullscreen">
Wall Street Journal
3 hours ago
- Business
- Wall Street Journal
Bank of Korea Cuts Rates, Slashes 2025 Growth Outlook
South Korea's central bank slashed its growth outlook for the year, cutting its policy rate in a widely expected move to support the country's sagging economy. Ending a pause in its easing cycle, the Bank of Korea lowered its benchmark seven-day repurchase rate by a quarter percentage point to 2.50% on Thursday.
