Korean Financial Markets Daily - 2025-06-06
☕ Morning Espresso - Korean Credit Market
Daily intelligence from YNA, Einfomax & TheBell
June 06, 2025 - 05:19 KST
✨ HIGHLIGHTS
📊 News Reported by Multiple Sources
US Designates Korea as Currency Monitoring Target Sources: YNA, EINFOMAX
The U.S. Treasury Department has designated South Korea as one of 9 countries to be monitored for currency practices. This comes after the U.S. had removed Korea from the currency monitoring list in 2023, only to re-add it in late 2024. The Treasury's biannual report on major trading partners' macroeconomic and exchange rate policies will now closely watch Korea's foreign exchange market interventions, which the U.S. believes are aimed at gaining trade advantages. This decision reflects ongoing trade tensions between the U.S. and Korea, and could lead to potential punitive actions if the U.S. deems Korea's currency practices as manipulative.
Dollar-Won Drops on Trump-Xi Call, Closes at 1,356.50 Sources: YNA, EINFOMAX
The dollar-won exchange rate closed in the mid-1,350 won range after narrowing its losses in overnight trading. The rate fell 13.00 won from the previous day's close in Seoul to 1,356.50 won, as the dollar index recouped losses during London and New York sessions. The drop came despite a rise in US jobless claims, as the call between Presidents Trump and Xi helped ease market tensions. With the Seoul FX market closed for a holiday on June 6, trading lacked a clear directional bias overnight.
Doosan Bobcat Earns First Domestic Credit Rating of 'AA-' Sources: YNA, EINFOMAX
Doosan Bobcat, a leading construction equipment manufacturer, has received its first domestic credit rating of 'AA-' from Korea Ratings, reflecting the company's operational stability and strong profitability. This milestone achievement opens the door for Doosan Bobcat to potentially issue won-denominated corporate bonds in the local market, as it has not done so before, focusing primarily on the North American market. The rating agency highlighted Doosan Bobcat's EBITDA margin of 13% and debt ratio of 74% as of last year, indicating the company's solid financial position and creditworthiness.
Convenience store Emart24 names new CEO Sources: YNA, EINFOMAX
Emart24, a convenience store chain owned by Shinsegae Group, has appointed Choi Jin-il, a 51-year-old executive, as its new CEO. Choi, who previously served as the MD (Merchandising) and Innovation Head at Emart, will take over the role from the outgoing CEO, Song Man-jun, who is stepping down due to health reasons. Choi, who joined Shinsegae in 2000, is known as a product specialist, having held positions such as the planning and operations team leader for the No Brand business and the fresh food division. At 51, Choi is the youngest among Shinsegae Group's subsidiary CEOs. The company expects Choi to strengthen Emart24's product competitiveness, improve profitability, and enhance the brand's value.
Samsung Fire Hosts Korea's Largest Global Insurance Conference Sources: YNA, EINFOMAX
Samsung Fire & Marine Insurance, the largest non-life insurer in South Korea, hosted the 2nd Korea International Insurance Conference (KIIC) on June 4-5. The two-day event, held at the Inspire Resort in Yeongjong-do, was attended by over 900 insurance experts from 150 companies across 23 countries. The conference provided a platform for domestic and global insurance professionals to discuss the various risks and volatility facing the industry, with the aim of generating insights and identifying new business opportunities. The event was co-sponsored by industry associations and 10 major insurers, underscoring its significance as the premier insurance industry gathering in Korea.
⏰ NEWS TIMELINE
12:58 - Chin Sung-jun: "Additional Supplementary Budget of 20-21 Trillion KRW Needed... May Increase Further Depending on President's Will" Source: EINFOMAX
Democratic Party policy chief Chin Sung-jun estimated that the additional supplementary budget size would be 20-21 trillion KRW. In a radio interview on MBC on the 6th, Chin said, "Our economic situation is worsening, and the stagnation in consumer economy is severe, so it may increase further depending on the President's will and the government's fiscal capacity." He noted that the Democratic Party had proposed 35 trillion KRW for the first supplementary budget earlier this year, but the government only accepted a 12 trillion KRW supplementary budget, which later increased to around 14 trillion KRW during the review process. He said that additional supplementary budget of 20-21 trillion KRW is needed.
Read More: EINFOMAX
12:46 - [US Exchange Rate Report] The Noteworthy Points to Watch for in Future 'Exchange Rate Negotiations' Source: EINFOMAX
Amid ongoing exchange rate negotiations between the US and Korea, a notable point in the US Treasury Department's semi-annual exchange rate report is that it has maintained Korea's status as a 'monitoring subject'.
According to the US Treasury Department's exchange rate report on June 6th, the US Treasury Department mainly mentioned that the Korean foreign exchange authorities have focused on addressing excessive volatility in the won, which saw a significant depreciation pressure last year. It also noted the increase in the National Pension Service's overseas assets.
Furthermore, the US Treasury Department stated that it will pay attention to measures related to capital inflows and outflows, as well as the use of pension funds and sovereign wealth funds for exchange rate adjustments, suggesting the possibility of continued discussions on related matters.
Read More: EINFOMAX
12:45 - [US FX Report] Dollar-Won Plunges 120 Won in Two Months - Will It Fall Further? Source: EINFOMAX
The Seoul foreign exchange market is busy checking how the exchange rate report released by the US every six months will affect it. For now, the content has not changed much from the previous report, and the recent sharp drop in the Dollar-Won exchange rate is expected to have a limited impact on the exchange rate level.
According to the exchange rate report released by the US Treasury Department on June 6, Korea was designated as a 'currency monitoring country' again, following November last year. The Treasury Department cited ▲ a trade surplus of more than $15 billion with the US in goods and services ▲ a current account surplus exceeding 3% of GDP ▲ exchange rate intervention exceeding 2% of GDP for 8 out of 12 months as the reasons.
Read More: EINFOMAX
12:45 - [US FX Report] Foreign Exchange Market Source: EINFOMAX
As the United States maintains its designation of South Korea as a 'currency monitoring country', market participants expect the decision to have a limited impact on the USD-KRW exchange rate. The US Treasury Department announced on June 6th that it will designate 9 countries, including South Korea, China, Japan, Singapore, Taiwan, Vietnam, Germany, Ireland, and Switzerland, as currency monitoring countries. The Treasury Department's three evaluation criteria are: ▲ a trade surplus of more than $15 billion in goods and services with the US ▲ a current account surplus exceeding 3% of GDP ▲ net purchases of dollars exceeding 2% of GDP for at least 8 out of 12 months. South Korea meets the criteria for a current account surplus and a trade surplus with the US.
Read More: EINFOMAX
11:51 - U.S. Treasury on Japan's Monetary Policy: "Not a Criticism of Policy Guidance or FX Intervention" Source: EINFOMAX
A U.S. Treasury official clarified that the mention of the Bank of Japan's (BOJ) monetary policy direction in the semi-annual currency report was "not a specific claim" and not a criticism of policy guidance or foreign exchange intervention. According to the Nikkei newspaper on June 6th, a senior U.S. Treasury official stated that "Japan, as a member of the G7, has a strong commitment not to manipulate its exchange rate through domestic policies." The Treasury report positively assessed Japan's FX intervention transparency, while rarely commenting on monetary policy. The Treasury said the BOJ's...
Read More: EINFOMAX
10:45 - President Lee: "Special Sacrifice for All Deserves Special Compensation" Source: EINFOMAX
President Lee Jae-myung said on the 6th, "Special sacrifice for all must be met with special compensation." At the 70th Memorial Day ceremony held at the National Cemetery in Seoul, President Lee stated that "honoring the sacrificed and dedicated is the minimum courtesy and the rightful responsibility and duty of the state." He added, "The saying that 'independence fighters' families are ruined for 3 generations, while pro-Japanese families prosper for 3 generations' must disappear forever." He emphasized that "the country must become one where sacrifice for the nation and community is met with due compensation, and devotion for all is the highest honor." He also said, "The Lee Jae-myung administration will take responsibility and...
Read More: EINFOMAX
10:04 - NDF at 1,352.30/ 1,352.70 won...Down 3.30 won Source: EINFOMAX
The 1-month USD/KRW non-deliverable forward (NDF) market in New York declined. Overseas brokers reported that the 1-month USD/KRW NDF was quoted at 1,352.50 won (MID) at the close on the previous night. Considering the recent 1-month swap point (-2.60 won), it is 3.30 won lower than the closing price of the Seoul foreign exchange spot market (1,358.40 won) the previous day. The bid price (BID) was 1,352.30 won, and the ask price (ASK) was 1,352.70 won. The European Central Bank (ECB) held a monetary policy meeting on the 5th (local time) and uniformly lowered its three key policy rates by 25 bp (1 bp = 0.01 percentage points). The dollar weakened amid the strength of the euro.
Read More: EINFOMAX
07:53 - U.S. Warns Again Against Currency Manipulation: 'All Available Tools Will Be Used If Detected' (Update) Source: EINFOMAX
The Trump administration in the United States has once again warned major trading partners against currency manipulation. It also expressed its willingness to use all available tools if manipulation is detected.
In the semi-annual 'Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States' report submitted to Congress on May 5 (local time), the U.S. Treasury Department stated that 'President Trump is committed to pursuing economic and trade policies that promote strong economic growth, reduce the trade deficit, and address unfair trade practices.' The report also said 'In this administration, the Treasury Secretary will be vigilant in detecting and taking action against currency manipulation.'
Read More: EINFOMAX
07:31 - U.S. Warns Again Against Currency Manipulation: "Will Identify and Act on It" Source: EINFOMAX
The Trump administration in the United States has once again warned major trading partners against currency manipulation. In the biannual 'Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States' report submitted to Congress on May 5, the U.S. Treasury Department stated that "President Trump is committed to pursuing economic and trade policies that promote robust economic growth, reduce the trade deficit, and address unfair trade practices." The report also said that "in this administration, the Treasury Secretary will pay close attention to identifying and taking action against currency manipulation, including unwarranted foreign exchange market intervention and other unfair practices."
Read More: EINFOMAX
07:08 - U.S. Maintains Korea as 'Currency Monitoring Country' - Ireland and Switzerland Added (Update) Source: EINFOMAX
The United States has maintained its policy of designating Korea as a 'currency monitoring country'. In the biannual report on 'Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States' submitted to Congress on May 5 (local time), the U.S. Treasury Department stated that it has designated 9 countries, including Korea, China, Japan, Singapore, Taiwan, Singapore, Vietnam, Germany, Ireland, and Switzerland, as currency monitoring countries.The U.S. had excluded Korea from the currency monitoring list in January 2023, but re-designated it in November of last year. The Treasury Department's biannual currency report monitors countries that actively intervene in the foreign exchange market to gain an advantage in trade relations. The Treasury Department's report aims to
Read More: EINFOMAX
📚 TAIL
Direct Sources
• Policy & Economy: YNA Economy • Bond & Forex: Einfomax Markets • Corporate Credit: TheBell Financial
Intelligence Summary
• Articles Analyzed: 183 • Active Sources: YNA, EINFOMAX • Analysis Time: 274.0s • Coverage Period: Last 24 hours
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