The authors are analysts of KB Securities. They can be reached at scyoo@kbfg.com and cygun101@kbfg.com, respectively. -- Ed. Deposit banks’ new transaction-based net interest spread at 1.88% and balance-based net interest spread at 2.07%For July, deposit banks’ new transaction-based NIS rose to 1.88
South Korea's household credit expanded to a record high in the second quarter, led by a continued rise in banks' mortgage loans.According to the latest data released by the Bank of Korea (BOK) on Aug. 19, total household credits outstanding increased by 25.9 trillion won in the second quart
The author is an analyst of Shinhan Investment Corp. He can be reached at eoyeon.hwang@shinhan.com. -- Ed. US housing starts to gain at an annual rate of 1.24mn (10.5% MoM) in JulyUS housing starts are estimated to have increased at a seasonally-adjusted annual rate of 1.24mn units (+10.5% MoM, +8.6
The South Korean government’s fiscal deficit hit an all-time high of 111 trillion won in the first half of this year. Besides, outstanding household and corporate loans currently amount to approximately 1,000 trillion won each.Specifically, the Bank of Korea announced on Aug. 12 that the outstanding
The authors are strategists of NH Investment & Securities. They can be reached at tedoh@nhqv.com and julie.cho@nhqv.com, respectively. – Ed. New policy measures required, as effects from current Covid-19 relief schemes are to fade after JulyA number of emergency measures put in place under the CARES
The National Assembly Budget Office warned that South Korea’s corporate and household debts have increased too fast since last year and this can pose an increasing burden on the real economy.According to the office and the Bank for International Settlements, South Korea’s private debt-to-GDP ratio w
The won-denominated loans in five major banks totaled more than 1,208.92 trillion won at the end of last month. The total increased by 6.04 percent in just six months despite predictions that the South Korean economy is likely to have posted a negative growth in the first half of this year.The rapid
The authors are strategists of NH Investment & Securities. They can be reached at tedoh@nhqv.com and julie.cho@nhqv.com, respectively. -- Ed. US real economy looks to have hit bottom, but full-fledged recovery yet to materializeThe New York Fed’s Weekly Economic Index (WEI) arrived at -11.5% at end-
The Bank of Korea announced on June 24 that the ratio of the private-sector credit to the nominal GDP reached 201.1 percent at the end of March this year, topping 200 percent for the first time in history. The ratio increased by 4.1 percentage points in three months to show the highest rate of incre
The South Korean government and the Bank of Korea have come up with various liquidity supply measures to deal with the real economic impact of COVID-19. The measures are leading to side effects rather than intended investment.The side effects include rapidly increasing household loans. More and more
The author is an analyst of NH Investment & Securities. He can be reached at will.byun@nhqv.com. -- Ed. We hold a Neutral stance towards the steel industry. While China’s steel prices have rebounded on an unleashing of pent-up demand, annual sessions of the NPC and CPPCC in May, and expectations for
The author is an analyst of NH Investment & Securities. She can be reached at michelle.cho@nhqv.com. -- Ed. The Korean economy has been suffering a blow amid the Covid-19 crisis. With both exports and domestic consumption remaining sluggish, the BOK is now forecasting that the Korean economy will sh
The author is an analyst of KB Securities. He can be reached at scyoo@kbfg.com. -- Ed. Deposit banks’ May loan balance at KRW1,866tn (+10.2% YoY)In May, deposit banks’ loan balance rose to KRW1,866tn (+KRW21.0tn MoM; +10.2% YoY). (1) C&I (commercial & industrial) loans rose to KRW945.1tn (+11.2% YoY
Shinhan Financial Group will provide a total of 85 trillion won in loans and investment over the next five years to support a Korean version of the New Deal. The figure represents a 21 trillion won increase from the 64 trillion won that the group initially set aside to support innovative businesses.
The Bank of Korea announced on May 27 that the average lending rate of local banks fell 0.11 percentage point to 2.8 percent a year last month. It is the lowest since records began in January 1996 and fell for the fourth consecutive month.Specifically, the average corporate lending rate reached an a
Household credits increased 11.0 trillion won in the first quarter to reach a record high of 1,611.3 trillion won as of end-March, the Bank of Korea announced on May 20.The bank said household loans increased by 17.2 trillion won during the quarter, while merchandise credits decreased by 6.1 trillio
Hana Institute of Finance said in its report on April 14 that South Korean banks need to accelerate their digital conversion by making more use of open application program interfaces (APIs) with the ratio of non-face-to-face business soaring in the wake of COVID-19, which will drastically change the
The author is an analyst of NH Investment & Securities. He can be reached at sw.kang@nhqv.com. -- Ed. Both safe and risky asset prices plunged last week on concerns over a slowdown in the real economy. But, an aggressive policy response by governments should lead to a drop in cash demand, helping to
More than 110 billion won out of LIME Asset Management’s 1.6 trillion won PEF investment that has yet to be redeemed has been found to be tied up in real estate project financing in Cambodia. RAUM Investment, a company closely related to LIME Asset Management, made an investment in a Cambodian resor
The Financial Services Commission and the Financial Supervisory Service announced on Jan. 7 that the same loan regulations such as the same loan-to-value (LTV) ratio are being applied to both locals and foreigners taking out mortgage loans from South Korean financial institutions.The announcement wa