South Korea has announced plans to more than double the volume of overseas bonds it can issue to support its activities in the foreign exchange market. The new issuance cap will be set at $3.5 billion. Officials cite the need for a stronger response to sharp economic fluctuations as the main driver behind this decision.
South Korean automaker Hyundai Motor plans to temporarily suspend production of certain electric vehicle (EV) models at its major plant in Ulsan. The decision comes in response to declining global demand for EVs and mounting trade barriers, including new tariffs imposed by the United States.
In recent years, South Korea's market has been engulfed by financial challenges related to stock issuance and capital expansion. These developments have piqued the interest of both local and international investors, prompting regulatory bodies to exercise stricter oversight of large corporations' actions. A prominent example is the situation involving Hanwha Aerospace, a company that faced regulatory demands after announcing a major capital increase.
South Korean company DN Solutions Co., a manufacturer of equipment, is preparing to conduct an initial public offering (IPO) in Seoul. This deal could become one of the largest in the country this year, with anticipated fundraising ranging from $800 million to $1 billion.
The robust US dollar continues to exert significant pressure on the currency markets of emerging Asian economies. In the context of high US bond yields and volatility in global financial markets, the region's countries are taking decisive steps to safeguard their currencies. This impact is most clearly illustrated by the examples of Indonesia and South Korea, where serious measures are being implemented to stabilize their economies.
