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Measuring News Sentiment of Korea Using Transformer

Author

Listed:
  • Beomseok Seo

    (Bank of Korea)

  • Younghwan Lee

    (Bank of Korea)

  • Hyungbae Cho

    (Bank of Korea)

Abstract

We have developed the Korean news sentiment index (NSI) to gauge the economic sentiment of Korea on a daily basis by analyzing news texts gathered from the Internet. Our framework utilizes cutting-edge natural language processing techniques to compute the NSI and examine keywords, offering insights into its fluctuations. We designed a sentiment classifier using transformer neural networks that effectively process extensive news samples to compute the NSI of Korea. We compute the NSI more frequently and immediately than official indices that rely on monthly surveys. Through this, we can identify changes in economic sentiment before official statistics are released. Moreover, the proposed framework offers keyword analysis and sector indices to clarify why economic sentiments fluctuate. Our comprehensive assessments demonstrate that the NSI is a valuable leading index and an essential tool for identifying inflection points in economic sentiment.

Suggested Citation

  • Beomseok Seo & Younghwan Lee & Hyungbae Cho, 2024. "Measuring News Sentiment of Korea Using Transformer," Korean Economic Review, Korean Economic Association, vol. 40, pages 149-176.
    • Handle: RePEc:kea:keappr:ker-20240101-40-1-05
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    News Text Data; Natural Language Processing for Economic Analysis; Sentiment Shocks;
    All these keywords.

    JEL classification:

    • C45 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Neural Networks and Related Topics
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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