It has been revealed that the outstanding corporate loans of the five major commercial banks in South Korea have surged by over 65 trillion won since the beginning of this year. With the government and financial authorities seeking to restrain household loans, there is increasingly intense competiti
The proportion of young adults aged 19 to 34 living alone surpassed 20 percent as pf 2020, more than three times the rate 20 years ago. The unmarried rate among young adults, which stood at 54.5 percent in 2000, has skyrocketed to 81.5 percent in just two decades. Consequently, it is anticipated tha
Korea’s real gross domestic product (GDP) is expected to rise by 2.0 percent next year from this year, according to the state-run Korea Institute for Industrial Economics and Trade (KIET) in its 2024 Economic and Industrial Outlook report released on Nov. 20. The relatively conservative forecast is
Due to high interest rates and an economic downturn, both households and businesses are experiencing a significant increase in being unable to even repay loan interest.According to banking sources on Nov. 20, the non-profitable loan balances of KB Kookmin, Shinhan, Hana, and Woori Bank surged by 27.
In the ratio of corporate debt to South Korea’s gross domestic product (GDP), it has been revealed that the country has moved from the fourth to the third position globally in just three months.According to the world debt report released by the Institute of International Finance (IFF) on Nov. 16, co
The author is an analyst for NH Investment & Securities. He can be reached at bk@nhqv.com -- Ed.Although the Covid-19 pandemic has ended, it has impacted global policies and life patterns. Anti-globalization has accelerated, and the new Cold War has deepened, with regional wars erupting. While drama
The author is an analyst for NH Investment & Securities. She can be reached at jiyoony@nhqv.com -- Ed.In 2023, the consumer goods portion of Korea’s exports surpassed that of capital goods for the first time in 25 years. While domestic consumption should weaken on higher interest expense burden in 2
The author is an analyst for Shinhan Securities. He can be reached at sanghoonpure.cho@shinhan.com -- Ed.3Q23 OP of KRW126.8bn (+44.6% YoY) beats consensus by 12%GS Retail posted operating profit of KRW126.8bn (+44.6% YoY) on sales of KRW3.09tr (+4.5% YoY) in 3Q23, beating the market consensus by 12
The author is an analyst for NH Investment & Securities. He can be reached at sw.kang@nhqv.com -- Ed.With the US unemployment rate rising for a second straight month, we are nearing the threshold for the Sahm Rule recession indicator (which has a 100% historical accuracy rate). Given the effects of
The author is an analyst for NH Investment & Securities. She can be reached at jiyoony@nhqv.com -- Ed.If excluding one-off labor costs, AmorePacific met 3Q23 consensus. Due to the slow recovery of Sulwhasoo in China, earnings growth at the firm is likely to remain flat in 4Q23. However, we see justi
As corporate loan delinquencies rise, the increasing volume of non-performing loans in banks has eroded their capacity to absorb losses, leading to a deterioration in their financial health.According to Kookmin Bank, Shinhan, Hana, and Woori banks on Oct. 30, the balance of non-performing loans (NPL
While the global economy faces a downturn, domestic beauty industry leaders like Amorepacific and LG Household & Health Care are grappling with challenging times. In stark contrast, Kolmar is flourishing on its own. Amid the repercussions of the economic downturn, the consumer market has experienced
The International Monetary Fund (IMF) has praised South Korea’s sound fiscal policies, stating that the country’s national debt is at an appropriate level. However, the IMF has also expressed concerns about the high levels of household debt in South Korea.According to the transcript of a press brief
The author is an analyst for Shinhan Securities. He can be reached at jk.ahn@shinhan.com -- Ed.BOK likely to keep base rate at 3.50% given inflation and household debtAt the upcoming October meeting, we expect the Monetary Policy Board (MPB) of the Bank of Korea (BOK) to make a unanimous decision to
Hanwha Solutions announced on Oct. 17 that it will expand its module production capacity in the United States, which was 1.7 gigawatts (GW) in the first half of this year, to 8.4 GW by the first half of next year, a five-fold increase.This makes it the largest capacity for a solar company producing
The results of an analysis about third quarter 2023 market capitalization changes in the domestic stock market were released by CXO Research Institute, an organization specializing in Korean business analysis, on Oct. 11. Based on the analysis, the total market capitalization of the domestic stock m
Habitat for Humanity addressed the crisis of affordable and inclusive housing in Asia and the Pacific and urged stakeholders to take sustainable approaches for adequate housing in informal settlements, at a press conference hosted by the global non-profit housing organization today. Habitat also hig
Korea’s industrial production, which had shrunken due to a slump in the semiconductor industry, made a comeback as semiconductor production rebounded.According to Statistics Korea on Oct. 4, the nation’s semiconductor production surged 13.4 percent month on month in August, the largest increase in f
As of the end of last year, South Korea’s household debt-to-GDP ratio reached 108.1 percent, making it the second-largest country in the world in terms of household debt relative to national economic size. It was ranked fourth globally in 2021, but it has climbed two more steps in just one year.Acco
As of the second quarter of this year, household and corporate debt has surged to approximately 2.26 times the nation’s economic size as measured by the gross domestic product (GDP). The Bank of Korea (BOK) has issued a warning emphasizing that the further expansion of private credit could potential