Latest news with #Rhee
Korea Herald
2 days ago
- Entertainment
- Korea Herald
Hungary showcases Rubik's cube in Seoul
Hungary is showcasing Rubik's Cube to the Korean public through the "Rubik 80/50: Fifty Years of Magic' exhibition from May 29 to August 12. Speaking at the opening of the exhibition, Hungarian Ambassador to Korea Istvan Szerdahelyi said that the Rubik's Cube is more than a clever toy: it is part of Hungary's cultural heritage — a symbol of creativity, curiosity and the power of human imagination. 'For half a century, it has captured the hearts and minds of millions around the globe," Szerdahelyi said, citing the exhibition as a spirit of discovery and as a bridge between Hungary and Korea. According to Rhee Jong-kook, executive vice president of the Korea Foundation, the exhibition marks two important milestones: the 80th birthday of Hungarian architect Erno Rubik and the 50th anniversary of his groundbreaking invention, the Rubik's Cube. 'Conceived in 2024 to commemorate these anniversaries, it traveled three cities before arriving here at the KF Gallery. It celebrates the enduring spirit of creativity and exploration and the universal joy of problem-solving,' Rhee said. 'One special aspect of this exhibition is archival content and cube installations created by faculty and students of Moholy-Nagy University of Art and Design,' underlined Rhee. Rhee highlighted the university's legacy in experimental design and the Rubik's Cube as a symbol of creativity and interdisciplinary thinking. 'Just as the Rubik's Cube connects people across generations and cultures, we hope this exhibition strengthens the bond between our two nations (South Korea and Hungary),' Rhee said. sanjaykumar@
Korea Herald
3 days ago
- Business
- Korea Herald
BOK chief backs need for won-based stablecoin, warns of FX risks
Central bank notes price growth slowing, but pandemic-era surges still weigh on consumers Bank of Korea Gov. Rhee Chang-yong said Wednesday that he is not opposed to the issuance of a Korean won-pegged stablecoin and, in fact, sees a need for it. When asked whether the issuance of a won-based stablecoin could trigger inflation by increasing the money supply, Rhee clarified his position. 'I do see the need for a won-backed stablecoin. Let me be clear — I am not against it,' he said during a press conference held at the central bank's headquarters. He added that the impact of such a stablecoin on the monetary system would depend on the form of issuance and the type of assets backing it. However, Rhee raised concerns over potential challenges to foreign exchange controls. 'If a won-based stablecoin is issued, it could facilitate the conversion of won-denominated assets into dollar-based stablecoins, which could increase demand for foreign stablecoins and complicate forex management,' he said. The ruling Democratic Party of Korea has been pushing to allow non-banking institutions to issue a won-based stablecoin. 'We would need to consider the broader implications for bank profitability and structural changes if payment and settlement functions — traditionally handled by banks — are expanded to the non-banking sector," Rhee said. He added that the central bank would work with the Ministry of Economy and Finance and the Financial Services Commission to establish appropriate measures as soon as possible. Wednesday's press conference was also held to review the current inflation trend in Korea. In the first five months of 2025, consumer prices rose 2.1 percent — slightly higher than the 1.8 percent increase seen in the last six months of 2024, but still near the central bank's target of 2 percent. 'The pace of growth has stabilized, but prices remain elevated due to the sharp rise that occurred during the COVID-19 pandemic,' Rhee said. From 2021 to May 2025, overall consumer prices increased by 15.9 percent. Meanwhile, the cost of living index — which includes a selected subset of essential items — rose 19.1 percent during the same period, outpacing general inflation by 3.2 percentage points and highlighting rising household burdens. The Bank of Korea also commented on the potential inflationary impact of recent US tariff measures. The central bank noted that the tariffs could actually help ease inflationary pressure in Korea, given its heavy reliance on exports to both the US and China. The logic: weaker global demand could lead to lower raw material prices. Additionally, if China redirects its low-cost goods to markets like Korea due to reduced exports to the US, it could create further deflationary pressure. However, the BOK emphasized the uncertainty surrounding these projections. 'Since the implementation and scope of tariffs could vary depending on negotiation outcomes, factors such as won depreciation or partial supply chain disruptions could offset any downward pressure on prices,' the central bank said in a statement.
The Star
4 days ago
- Business
- The Star
BOK chief says he is not against won-based stablecoins but has forex concerns
FILE PHOTO: Rhee Chang-yong, Governor of the Bank of Korea, participates in a panel titled 'How Should Central Banks Battle High Inflation?' at the 2023 Spring Meetings of the World Bank Group and the International Monetary Fund in Washington, U.S., April 14, 2023. REUTERS/Elizabeth Frantz/File Photo SEOUL (Reuters) -South Korea's central bank governor said on Wednesday he was not against issuing won-denominated stablecoins but had concerns about managing capital flows. "Issuing won-based stablecoin could make it easier to exchange them with dollar stablecoin rather than working to reduce use of dollar stablecoin. That in turn could increase demand for dollar stablecoin and make it difficult for us to manage forex," Rhee Chang-yong told a press conference in Seoul. Stablecoins, a type of cryptocurrency designed to maintain a constant value – typically pegged 1:1 to the U.S. dollar – are widely used by crypto traders to move funds between tokens, and are starting to be adopted by more and more companies. Regulators in many countries are skeptical about cryptocurrencies as they are seen as speculative and as competitors to national currencies. Rhee's comments come as South Korea's left-leaning President, Lee Jae Myung, is seen delivering on his election pledge to allow companies to issue won-based stablecoins. The ruling Democratic Party proposed earlier this month the Digital Asset Basic Act, designed to set up regulatory infrastructure needed to help local companies issue won-denominated stablecoins. President Lee appointed a former crypto firm chief, Kim Yong-beom, as his chief policy officer in his first week in office, further boosting speculation that the government would take action to allow issuance of stablecoins backed by the Korean won. Kim has previously served as vice chairman of the Financial Services Commission before becoming chief executive of Hashed Open Research, a think tank affiliated with crypto venture capital firm Hashed Ventures Inc. Governor Rhee has previously told reporters that allowing stablecoins to be issued by local companies, rather than the central bank, could significantly undermine the effectiveness of monetary policy and capital flow control. (Reporting by Jihoon Lee; Editing by Tom Hogue and Muralikumar Anantharaman)
Business Times
02-06-2025
- Business
- Business Times
Bank of Korea's Rhee says US-China trade talks important for Asia
[SEOUL] Bank of Korea (BOK) governor Rhee Chang-yong said the outcome of trade negotiations between the US and China will have an impact on all of Asia's economies, highlighting their significance beyond the bilateral level. 'When we actually measure the impact of US tariffs on us, the indirect impact through China is very important because we are very much connected with them through supply chains,' Rhee said referring to South Korea at a BOK event in Seoul on Monday (Jun 2). The governor said other economies also needed to factor in the US-China element when assessing the hit from the US levies. 'How the negotiations between the US and China will go is also important for Asian economies in general,' Rhee said. The comments underline the concerns among policymakers throughout the region on the outcome of talks between Washington and Beijing, given the interconnectedness of Asia's economies and the large role China plays in driving regional growth. Rhee was speaking at a BOK conference that also featured US Federal Reserve governor Christopher Waller. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up In his comments, Waller had indicated that 10 per cent tariffs may be manageable for businesses in the US as he talked about the likely scenarios that could play out. 'Many businessmen here also say 10 per cent is manageable,' Rhee said, while flagging the importance of Trump's non-reciprocal levies. Rhee said sectoral tariffs were just as important as reciprocal levies for South Korea given the high levels of its exports of semiconductors, steel, aluminium and cars. items that are all subject to separate duties. 'Sectoral tariffs and what's going to happen after Jul 9 is one of the key issues here,' he said. Inflation expectations Following up on Waller's comment that he focuses on market-based measures of inflation expectations, rather than volatile household surveys, Rhee offered a different view. The BOK governor said that Korea's market-based measures are harder to interpret due to limited market depth. 'Our market measure is quite hard to use directly because our market is quite shallow,' Rhee said, adding that prices often respond more to shifts in liquidity than to actual changes in expectations. BLOOMBERG
Korea Herald
29-05-2025
- Business
- Korea Herald
BOK slashes growth forecast by half to 0.8%
Korea faces slowest growth since 2009 as central bank cuts rates to spur recovery South Korea's central bank nearly halved its economic growth projection for this year to 0.8 percent on Thursday, reflecting deepening challenges both at home and abroad. In a bid to support the struggling economy, the Bank of Korea also delivered a quarter-point base rate cut. The revised estimate for gross domestic product growth, a key measure of economic performance, is down 0.7 percentage point from the BOK's previous forecast of 1.5 percent made in February. The downgrade factors in the 0.2 percent economic contraction in the first quarter and heightened trade risks, including US tariff actions. If realized, this would mark the first time since 2009 that the nation's growth rate falls below 2 percent, excluding the pandemic-triggered contraction in 2020. The last instance was when the GDP rose by 0.8 percent in 2009, hit by the global financial crisis. 'The economy is facing challenges, but it's difficult to compare the current situation to that of 2008,' BOK Governor Rhee Chang-yong said at a press conference following the Monetary Policy Board meeting. 'At that time, Korea's potential growth rate was around 3 percent. Now, it has fallen to 2 percent. A 0.8 percent growth is certainly painful, but it's not a crisis on the scale of 2008.' The BOK's revised projection aligns with recent adjustments from other institutions. The Korea Development Institute, for instance, also halved its growth outlook from 1.6 percent to 0.8 percent. Despite the downgrade for 2025, the BOK trimmed next year's growth forecast by just 0.2 percentage point to 1.6 percent, suggesting an anticipated recovery. 'Over the past two years, construction investment has been the biggest drag on growth,' said Rhee. 'The sector had overheated during the real estate boom and is now undergoing a sharp correction, which we expect to stabilize within this year.' The BOK maintained its inflation outlook for 2025 at 1.9 percent, signaling that consumer prices are expected to follow a stable trajectory despite slower growth. To stimulate economic activity, the central bank lowered the base rate by 0.25 percentage point to 2.5 percent. This marks the fourth rate cut since the BOK began easing in October 2024. All six voting members of the Monetary Policy Board supported the rate cut, excluding Governor Rhee, whose vote is not disclosed. Four of the six members were open to further easing within the next three months, while the remaining two expressed opposition. With the latest decision, the interest rate gap between South Korea and the US has widened to 2 percentage points. However, the recent appreciation of the Korean won has helped mitigate concerns over capital outflows and foreign exchange volatility. 'The won's earlier depreciation was excessive compared to the underlying fundamentals of the Korean economy. Its current appreciation is a normalization process,' said Rhee. Attention now turns to the US Federal Reserve's upcoming Federal Open Market Committee meeting scheduled for June 17-18. The next BOK rate-setting meeting will be held on July 10.
