Trump govt. unlikely to focus on Korean economy

The US government will likely put South Korean economic issues on the back burner for a while as it will focus more on security concerns in the northeast Asian region, experts said Thursday.According to the report by the state-run Korea Development Institute, researchers and experts from renowned think tanks, including the Korea Institute for International Economic Policy, held round-table talks in Seoul last week to discuss the future of Northeast Asia and the Korean Peninsula in the Trump era.

Feb. 23, 2017

Acting president calls for bold policy initiatives to bolster consumption

Acting President and Prime Minister Hwang Kyo-ahn on Thursday called on the government to craft "bold" policy initiatives to stimulate domestic demand, warning that consumption could further weaken due to a string of risk factors, including rising prices.During a meeting of ministers tasked with bolstering local demand, Hwang stressed the need to stop declining consumption "at an early stage" through aggressive steps such as the early execution of state budgets and fiscal reinforcements. Acting

Feb. 23, 2017

BOK holds key rate steady at 1.25% in Feb.

South Korea's central bank on Thursday held its key rate steady for February to support growth ahead of additional US rate hikes this year.The Bank of Korea maintained its policy rate at an all-time low of 1.25 percent for the eighth consecutive month in February after sending the rate to its lowest level to support the growth of Asia's fourth-biggest economy. Lee Ju-yeol, governor of the Bank of Korea (Yonhap)In December, the US Federal Reserve raised its key rate by a quarter of a percentage p

Feb. 23, 2017

KITA pledges efforts to boost Korea's exports

A local association of exporters in South Korea on Thursday vowed all-out efforts to boost the country's exports this year, despite what it called many lingering risks at home and abroad."The ongoing political turmoil continues to have a great impact on our economy and exports," said Kim In-ho, head of the Korea International Trade Association. Kim In-ho, president of the Korea International Trade Association, speaks at the general assembly of KITA in Seoul, South Korea on Feb. 23, 2017. (KITA)"

Feb. 23, 2017

Report urges hike in state pension age

South Korea needs to hike the state pension age to keep its rapid population aging from worsening the financial health of the government-run pension fund down the road, a report showed Thursday.Currently, South Korean subscribers to the state pension fund are entitled to receive payments starting at the age of 61, but the state pension age will be raised to 65 in 2033 under a reform plan. The logo of South Korea's state pension fund operator (Yonhap)In the policy report, Lee Yong-ha, a senior re

Feb. 23, 2017

Korea promotes flexible working system to boost private consumption

South Korea said Thursday that it will expand flexible working hours in the private and public sectors in an effort to boost domestic consumption and stimulate the economy, while expanding financial support to lower income brackets.The government unveiled a set of measures to reinvigorate private consumption at a ministerial-level meeting presided over by Acting President Hwang Kyo-ahn in Seoul. (Yonhap)"Domestic demand is showing some signs of slowdown, offsetting a slight upturn in exports, as

Feb. 23, 2017

Cut in infrastructure investment draws concern

Calls are rising to reconsider the government’s plan to cut back infrastructure investment, which experts say is based on misperception and goes against policy efforts to bolster the country’s faltering economy.Under a five-year fiscal management scheme, expenditure on social overhead capital is set to be reduced by an annual average of 6 percent from 26.1 trillion won ($22.9 billion) in 2015 to 18.5 trillion won in 2020. (123RF)Financial authorities say Korea has sufficient SOC stock and that t

Feb. 22, 2017

Official land prices rise 4.74% this year

South Korea's official average land prices for 2017 rose 4.74 percent from the previous year, marking the fastest annual gain since the 2008-09 global financial crisis, government data showed Wednesday. The rise in land prices came from growing demand as parts of government institutions and public firms moved out of Seoul and construction projects boomed on the southern resort island of Jeju and the port city of Busan, according to the Ministry of Land, Infrastructure and Transport. (yonhap)On a

Feb. 22, 2017

Korea's childbirths drop to record low in 2016

Childbirths in South Korea dropped to a record low last year despite decade-long efforts to tackle the country's chronically low birthrate, a report showed Wednesday.The number of babies born in 2016 reached 406,300, down 7.3 percent, or 32,100, from a year earlier, according to the report by Statistics Korea. (Yonhap)The figure marked the lowest number of newborns since 1970 when the statistics agency started to compile such data.The crude birth rate, referring to the number of live births per

Feb. 22, 2017

Finance minister vows structural reform in face of 4th industrial revolution

The finance minister said Wednesday that his government will do its best to improve South Korea's economic and social systems to support its adaptation to the fourth industrial revolution in a timely manner."The government will go through a close review on our situation, strength and weakness before mapping out a strategy for the fourth industrial revolution," Finance Minister Yoo Il-ho said in a kick-off meeting of the government's fourth-revolution strategy committee on the outskirts of Seoul.

Feb. 22, 2017

Report says Korea-US trade mutually beneficial

South Korea continues to profit from its bilateral trade with the United States, but its trade surpluses largely come from outbound shipments of intermediate goods needed by US manufacturers to produce their own finished goods, making their trade both complementary and mutually beneficial, a report said Wednesday.According to the report from the Korea International Trade Association, intermediate products accounted for 46.3 percent of overall South Korean exports to the US in 2015, when such goo

Feb. 22, 2017

[News Analysis] Exports seen improving but no time for relief, experts say

South Korea’s exports, the backbone of the country’s economy, seem on course to end their two-year losing streak this year. If they do, it will be a relief for Asia’s fourth-largest economy, whose exports plunged 5.9 percent on-year in 2016 and 7.9 percent in 2015, the country’s first two straight years of decline.  Export data for the first several weeks of the year suggested a rosy start. In the first 20 days of February, exports soared 26.2 percent from a year

Feb. 21, 2017

Korea ranked near bottom in women's economic empowerment

South Korea ranks among the lowest in terms of women's economic empowerment, with its pay gap between men and women estimated to need more than 100 years to close if the current pace continues, an annual report said Tuesday.The Women In Work Index 2017 released by the PricewaterhouseCoopers put South Korea 32nd among 33 member states of the Organization for Economic Cooperation and Development, with an index of 37.3 compared with the OECD average of 58.7. Mexico was the only lower-ranked country

Feb. 21, 2017

Mercedes-Benz Korea head tapped to lead European biz community

Dimitris Psillakis, president & CEO of Mercedes-Benz Korea, has been elected as the new chairman of the European Chamber of Commerce in Korea in its regular meeting earlier this week, the chamber announced Tuesday.Psillakis moved to Seoul in 2015 to lead Mercedes-Benz Korea after serving in a managing director position at Mercedes-Benz Brazil. Before that, he also built up his career in sales and marketing at Mercedes-Benz Greece. (Yonhap)The ECCK has some 330 member firms.Meanwhile, James Kim,

Feb. 21, 2017

Chinese land ownership in Korea surges

Land owned by Chinese individuals and companies in South Korea has increased by more than five-fold over the past five years, a report showed on Tuesday.The amount of land owned by Chinese entities here came to 16.9 million square meters last year, marking a 486-percent hike from 3.7 million square meters tallied in 2011, according to the report compiled by KB Financial Group. (Yonhap)The increase in land ownership by Chinese entities is in sharp contrast with a 49-percent rise in total foreign

Feb. 21, 2017

Korea's exports jump 26.2% in first 20 days of Feb.

South Korea's exports continued their upbeat mode in the first 20 days of February, underscoring a recovery in the country's outbound shipments, the latest customs data showed Tuesday.Exports amounted to $27.7 billion from Feb. 1-20, up 26.2 percent from the same period last year, according to the data from the Korea Customs Service. (Yonhap)The increase was led by a 51.5-percent on-year gain in exports of semiconductors and a 64.5-percent surge in petroleum products.Imports jumped 26 percent to

Feb. 21, 2017

Korea keeps watchful eye on US currency moves

South Korea needs to take more proactive and comprehensive measures to reduce risks from US President Donald Trump’s push to make major trading partners with the world’s largest economy pay the price for their alleged currency manipulation, experts here say.The immediate task for the country is to avoid being included in a list of currency manipulators when the US Treasury Department releases a biannual report on foreign governments’ currency policies in April. (Openas)Finance Minister Yoo Il-ho

Feb. 20, 2017

Producer price rises reach 2-year record

South Korea’s producer prices rose sharply to a two-year high in January due mainly to hikes in agricultural products prices, central bank data showed Monday.The producer price index came to 102.17 last month, up 3.7 percent from 98.48 a year earlier, according to preliminary data from the Bank of Korea. Producer prices serve as an indicator of future consumer inflation. (Yonhap)The January reading marks the highest in 25 months, while the on-year gain also marks the steepest since December 2011

Feb. 20, 2017

Oil-related tax revenue hits record high in 2016

Oil-related tax revenue in South Korea reached a record high last year as low oil prices fueled demand for petroleum goods, government data showed Monday.The country's oil tax revenue totaled a record 23.7 trillion won ($20.6 billion) in 2016, up 8.9 percent from a year earlier, according to the data. (Yonhap)The figure has been on the rise since 2014 when global oil prices started to fall. It rose to 20.8 trillion won in 2014 and 21.8 trillion won in 2015 from 20.4 trillion won in 2013.The upti

Feb. 20, 2017

Half of new businesses end up going bankrupt within 2 years

Some 800,000 small businesses open shop annually, but about half of them go bankrupt within two years, statistics showed Monday.A report released by Statistics Korea said that among businesses that started in 2013, 62.4 percent were still in operation a year later. The rate fell to 47.5 percent two years later, and further dipped to 38.8 percent after three years.  (Yonhap)The third-year tally placed South Korea 25th among the 26 member states of the Organization for Economic Cooperation and Dev

Feb. 20, 2017