Latest news with #KimByoung-hwan
Iraqi News
06-04-2025
- Business
- Iraqi News
S. Korea plans $2 bn emergency aid for auto sector hit by U.S. tariffs
INA-sources ASouth Korea plans to offer emergency policy financing worth 3 trillion (about $2 billion) to support its automobile industry, which has been dealt a major blow by the United States' recent imposition of a 25% tariff on imported vehicles. According to financial industry sources, the S. Korean government is preparing policy financing measures in anticipation of the difficulties facing the domestic auto sector due to the U.S. tariffs on Korean car exports. A senior financial official said the government is coordinating with related ministries to draw up support measures, noting, 'We are taking this situation very seriously, given its impact on our GDP. We will need to mobilize all available resources.' Authorities are expected to expand existing programs offered through policy lenders such as the Korea Development Bank (KDB). This year, policy institutions including KDB, the Industrial Bank of Korea, Korea Credit Guarantee Fund, and the Korea Technology Finance Corporation (Kibo) have committed to supplying a total of about $170 billion, to help companies cope with worsening global conditions and restructure legacy industries. Up to 60% of this funding will be disbursed in the first half of the year, with an additional $6.8 billion already front-loaded compared to previous years. Separately, the government has confirmed plans to establish a new fund of up to $34.2 billion over five years to support future mobility industries such as electric vehicles, in response to heightened external uncertainties under the second Trump administration. The Korea Development Bank is set to oversee the fund, which the government aims to start disbursing later this year, pending parliamentary approval of an amendment to the KDB Act and related guarantees. Lawmakers from both the ruling and opposition parties are backing a joint proposal to expedite the process. The Financial Services Commission also plans to convene a financial status meeting on Apr. 7, calling together the heads of the country's five major financial holding companies. Financial Services Commission Chairperson Kim Byoung-hwan and Financial Supervisory Service Governor Lee Bok-hyun will meet with executives from the five financial groups, as well as representatives from the Korea Federation of Banks, Korea Financial Investment Association, Korea Development Bank, IBK, Korea Credit Guarantee Fund, Korea Deposit Insurance Corporation, Korea Exchange, and Korea Securities Finance Corporation. Kim is expected to review the liquidity status of companies most affected by the tariffs and urge financial institutions to maintain steady credit flows. The financial authorities currently estimate total financial sector exposure to the auto industry—including loans and market-based borrowing—at around $34.2 billion. On Mar. 26, U.S. President Donald Trump signed an executive order to impose a 25% tariff on all vehicles not manufactured in the United States. The move poses a significant threat to S. Korea's automobile exports, its top export category to the U.S. In 2024, S. Korea shipped $34.74 billion worth of vehicles to the U.S., which accounted for 49.1% of its total auto exports of $70.79 billion. In a recent report, the IBK Economic Research Institute projected that if the 25% tariff is implemented, S. Korea's auto exports to the U.S. could fall by as much as 18.6% this year compared to 2024. source: The CHOSUN Daily
Korea Herald
04-03-2025
- Business
- Korea Herald
Watchdog levies over W60b in fines in 2 yrs over illegal short selling: data
South Korea's financial watchdog has imposed over 60 billion won ($41 million) in fines on global and local investors over illegal short selling over the past two years, data showed Tuesday, with the country set to lift its temporary ban on the stock trading practice at the end of this month. According to the data compiled by the Financial Supervisory Service and submitted to Rep. Lee Kang-il of the main opposition Democratic Party, the watchdog imposed a combined 63.5 billion won in fines in 58 illegal short selling cases from March 2023 to last month. The figure may further rise as details of measures currently under review were not disclosed. The FSS has been investigating 14 global investors and is planning to complete its probe before March 31, when the short selling is scheduled to resume. The country imposed a temporary ban on the practice in November 2023 after a series of naked short selling violations involving several global investment banks were discovered. Kim Byoung-hwan, the chief of the Financial Services Commission, said earlier the regulator is planning to allow short selling on all publicly traded companies here. Before the short selling ban, only 350 listed firms, namely the constituents of the KOSPI 200 index and the KOSDAQ 150 index, had been subject to short selling. (Yonhap)
Korea Herald
24-02-2025
- Business
- Korea Herald
Regulator warns Apple Pay against shifting fee burden to consumers
Short selling ban to end next month as global institutions push for market reforms As Apple Pay, currently available exclusively through Hyundai Card in South Korea, prepares to expand its reach, the head of the country's top financial regulator emphasized that the burden of payment commission fees should not fall on consumers. "The authorities cannot intervene in how Apple and card issuers determine payment commissions. However, shifting the burden onto stores and consumers would be inappropriate," Financial Services Commission Chair Kim Byoung-hwan said Monday at a monthly press briefing held at the Government Complex Seoul. "Apple Pay was introduced in Korea in 2023 because it is widely used globally, and iPhone users had complained of inconveniences due to its absence," Kim added. Apple Pay entered the Korean market through Hyundai Card, a credit card issuer under Hyundai Motor Group. Nearly two years since its launch, Apple is now in discussions with other major Korean card issuers, including Shinhan Card and KB Kookmin Card, to expand its service. "Recently, more card issuers have expressed interest in offering Apple Pay. While regulatory intervention is limited, our priority remains consumer protection," Kim said. Apple reportedly charges a 0.15 percent transaction fee per payment in Korea. By contrast, Samsung Pay currently does not impose any fees on card issuers. The anticipated expansion of Apple Pay has sparked concerns that Samsung Electronics may introduce fees for its digital wallet service as well. "So far, Apple Pay's market share has been relatively small. However, we will monitor its expansion and consider intervention if necessary," Kim stated. Meanwhile, Korea is set to resume short selling on March 31, marking the first time in five years that the ban will be lifted for all publicly traded companies. Korea banned short selling in March 2020 due to market instability during the COVID-19 pandemic. The ban was partially lifted in May 2021, but in November 2023, the government reinstated a full suspension after discovering a series of naked short-selling violations involving global investment banks. "(The partial resumption in 2021) was limited to stocks with high trading volumes and those frequently traded by foreign investors," Kim explained. "This time, the authorities have spent over a year refining the system to prevent unfair trading. It was difficult to justify resuming short selling for only certain stocks while maintaining the ban on others," he added. Kim also emphasized the importance of market credibility, noting that global financial institutions, including Morgan Stanley Capital International and the FTSE Russell Group, had raised concerns over Korea's ban on short selling.
Yahoo
24-02-2025
- Business
- Yahoo
Korea on Track to Lift Shorting Ban on March 31, Regulator Says
(Bloomberg) -- South Korea is on track to lift its ban on short selling across all stocks starting March 31, according to the nation's top financial regulator. Trump Targets $128 Billion California High-Speed Rail Project Trump Asserts Power Over NYC, Proclaims 'Long Live the King' Trump to Halt NY Congestion Pricing by Terminating Approval Airbnb Billionaire Offers Pre-Fab Homes for LA Fire Victims Sorry, Kids: Disney's New York Headquarters Is for Grown-Ups Allowing investors to completely resume short sales is necessary and justifying only a partial lift is difficult, Financial Services Commission Chairman Kim Byoung-hwan said at a briefing on Monday. The nation's credibility in the international community is at stake and authorities have made efforts to complete systems that detect wrongdoings on stock transactions, he added. In November 2023, the country's market regulators banned all types of short selling for listed stocks in its $1.7 trillion equity market, following retail investors' uproar over the trading practice. The restrictions triggered criticism that it would hurt the market's appeal. But the trading system needed to be fixed to uproot wrongdoings and revise rules for improved transparency and fairness, authorities said. The ban was extended once to expire at the end of March. During the ban, officials have investigated global banks on their past short-selling transactions and fined some of them for rule violations. They have also developed an electronic monitoring system to detect naked shorting — a practice of selling shares without borrowing them first — that is illegal in Korea. To address concerns that some single stocks can be targeted by short sellers, authorities plan to temporarily revise the criteria used in banning the practice of shorting certain stocks for a day. Any market impact from the resumption is expected to be short-lived, Kim said. Meet Seven of America's Top Personal Finance Influencers How Med Spas Conquered America India's Most Reliable Retirement Plan: Selling Grandma's Jewelry Crypto, Inflation, Bonds: Your Investment Guide to a Risky Year The Undocumented Workers Who Helped Build Elon Musk's Texas Gigafactory ©2025 Bloomberg L.P. Sign in to access your portfolio
Korea Herald
24-02-2025
- Business
- Korea Herald
S. Korea to fully resume short selling as planned: chief regulator
The chief of South Korea's financial regulator said Monday that the country will lift its temporary ban on short selling next month as planned, and the resumption will have a limited market impact. In a press meeting, Kim Byoung-hwan, the chief of the Financial Services Commission, said the short selling scheme will be fully resumed as planned March 31 as long as no systematic glitches are found. "We have updated related systems and regulatory rules for over one year," Kim said. "We have no reason to partially open short selling." Kim said his agency is working to impose some curbs in case of excessive short selling of specific stocks out of concerns over severe volatility. The country imposed a temporary ban on the practice in November 2023 after a series of naked short selling violations involving several global investment banks were discovered. Before the short selling ban, a total of 350 listed firms, namely the constituents of the Kospi 200 index and the Kosdaq 150 index, had been subject to short selling.
