Korea's exports of consumer goods to China tops $7b in 2016

South Korea sold more than $7 billion worth of consumer goods to China last year, a report showed Tuesday, amid growing concerns that this sector will suffer the most from a trade spat between the two countries over the deployment of an advanced US anti-missile system. The outbound shipments of consumer products reached $7.02 billion as of end-2016, accounting for about 11 percent of all consumer goods sold abroad last year, according to the latest report by the Korea International Trade Associa

March 14, 2017

Korea's export prices fall 1.6% last month on strong won

South Korea's export prices fell 1.6 percent in February from a month earlier due mainly to the strengthening won, central bank data showed Tuesday.The dollar fell 3.4 percent to 1,144.92 won in February compared to a month earlier, the Bank of Korea said in a statement.For exporters, the won's gain means decreased income as dollar-denominated earnings from their overseas businesses fall in value when repatriated into the local currency.Import prices also declined 2.2 percent last month from the

March 14, 2017

[Graphic News] Small businesses heavily dependent on China

South Korea’s small and mid-sized businesses in some industries are heavily dependent on China for their exports, and are continuing to suffer from Beijing’s trade retaliation for Seoul’s hosting of the Terminal High Altitude Area Defense missile system.Exports by small businesses to China reached $22.5 billion last year, up 1.9 percent from the previous year, according to the Korea Customs Service and the Small and Medium Business Administration.While industries exporting parts and materials to

March 13, 2017

Korea on alert over currency swap deal with China

South Korea’s financial officials are worried that China will refuse to extend a bilateral currency swap deal set to expire in October, in yet another retaliatory move against Seoul’s hosting of a US missile defense system.The Seoul-Beijing swap line worth $56 billion accounts for nearly half of the total amount of Korea’s currency arrangements with other countries.A Seoul bank employee handles Chinese currency (Yonhap file photo)Officials here say Finance Minister Yoo Il-ho will call for separa

March 13, 2017

Korea's finance minister to remain alert against possible risks

South Korea's top economic policymaker said Monday he will never let his guard down and take firm action against any possible changes in the real economy and the financial market in the aftermath of the country's leadership vacancy."The government will keep operating in emergency mode and deal firmly with pending issues," Finance Minister Yoo Il-ho told reporters in Sejong. "We have been monitoring the market around the clock for months, and nothing has been unusual." Finance Minister Yoo Il-ho

March 13, 2017

Korea signs $13m deal with Ethiopia on customs clearance system

South Korea's customs agency said Monday that it has signed a $13 mln deal with Ethiopia to export an electronic customs clearance system to the African country.Under the deal, South Korea's electronic customs clearance system called "UNI-PASS" will be installed in Ethiopia by 2020, Korea Customs Service said in a statement.  The logo of Korea Customs Service (Yonhap)UNI-PASS is the brand name of the electronic clearance portal system developed by KCS.South Korea has exported the UNI-PASS system

March 13, 2017

Despite claims, US bigger winner in FTA with Korea

The United States has benefited even more than South Korea has from the countries' free trade agreement, experts here said Monday, noting a demand to renegotiate the terms of the bilateral pact by Washington may well work to serve Seoul's interest.The Korea-US FTA, also known as the KORUS FTA, went into effect five years ago this week. (Yonhap)Washington has yet to file an official demand for the renegotiation of the open trade pact, but is expected to do so under the new Donald Trump administra

March 13, 2017

Korea likely to recover $2b daily exports mark in March

South Korea's average daily exports will likely exceed $2 billion this month buttressed by growing shipments of semiconductors, petroleum and petrochemical products, government officials said Monday.Exports of petroleum and petrochemical goods reached $6.7 billion and those for semiconductors $6.4 billion in February. The figures represent a 72.3 percent and 54.2 percent surge, respectively, from a year earlier. (Yonhap)"We expect export growth will continue for the time being as both advanced a

March 13, 2017

Korean economy at crossroads amid leadership vacuum

The ouster of former President Park Geun-hye has cleared political uncertainty in South Korea, but growing external risks might pose threats to the nation’s economy amid the two-month leadership vacuum leading up to the next election, the central bank and local economists warned Sunday. Following Park’s impeachment Friday, Korea’s economy now faces five major threats, according to the Hyundai Research Institute: uncertainty over US President Donald Trump; retaliation over the deployment of a US

March 12, 2017

Majority of Korean companies say THAAD row hurts business: survey

A majority of businesses in the content, tourism and retail sectors said they are suffering from the ongoing spat between South Korea and China over the deployment of a US missile defense system, a survey showed Sunday.According to the survey conducted on 597 firms in those sectors by the Korea International Trade Association, 56.2 percent of the respondents said that China's apparent economic retaliation has already "negatively affected" their businesses, with 32.9 percent responding that they

March 12, 2017

Korea, 5 Central American nations initial FTA

South Korea and five Central American countries have initialed their free trade agreement, which is expected to pave wider ways for Asia's fourth-largest economy to tap deeply into the continent, the trade ministry here said Sunday.In November of last year, South Korea and six Central American nations -- Nicaragua, El Salvador, Honduras, Costa Rica, Panama and Guatemala -- struck the FTA deal, 1 1/2 years after the two parties launched official negotiations in June 2015.Officials from South Kore

March 12, 2017

THAAD spat thwarts duty-frees' plans to expand

South Korean duty-free operators are holding back from expanding their businesses on grim prospects that the intensifying trade spat between South Korea and China over the US anti-missile system will further weigh down sales, industry sources said Sunday. HDC Shilla Co., a latecomer in the local duty-free industry, may drop its bid to open a new store in the posh district of Gangnam, in the upcoming licensing bidding slated for around June, sources familiar with the matter said.(Yonhap)The joint

March 12, 2017

Exports jump nearly 20% in early March on high oil prices

South Korea's exports jumped 19.3 percent on-year in the first 10 days of this month led by petrochemical goods, semiconductors and automobiles, government data showed Saturday.Overseas shipments from March 1-10 were estimated at US$1.43 million after hitting a five-year high in the previous month, the Korea Customs Service said in a statement."Rising oil prices in recent months have boosted local exporters who had been suffering from slumping oil prices and slowing demand in global markets," a

March 11, 2017

Korea's finance minister vows firm stance despite impeachment

South Korea's top economic policymaker said Friday that the government will remain steadfast in implementing economic policies and make full efforts to stabilize the economy in the aftermath of an unprecedented court ruling to oust the country's president."The government will keep close tabs on pending trade issues and a possible US rate hike and take swift and resolute action against any possible internal and external risks if necessary," Finance Minister Yoo Il-ho said in an emergency staff me

March 10, 2017

Park’s impeachment clears uncertainty, but external risks still haunt economy: experts

The Constitutional Court’s verdict to oust President Park Geun-hye cleared political uncertainty for the Korean economy, but external risks such as trade issues with the US still remain great challenges, experts said.“It is good news for the Korean economy that the uncertainty has been removed. But due to the vacancy of the presidency, I’m still worried that Korea has limited room to actively deal with the US government’s foreign currency and trade policies,” said Kang In-soo, head of the privat

March 10, 2017

Top regulator says no need for anxiety about financial market

South Korea's top financial regulator assured local and foreign investors on Friday that the unprecedented impeachment of the country's president won't deal a serious blow to the financial market.Yim Jong-yong, chairman of the Financial Services Commission, stressed the nation's financial market has experience in successfully riding out a more difficult situation.Yim Jong-yong, chairman of the Financial Services Commission(Yonhap)He also cited a "general assessment that the current financial fun

March 10, 2017

Korean economy needs concerted efforts to improve growth

Although the Constitutional Court's historical ruling lifted the thick uncertainties stemming from the impeachment of the incumbent president, it is time for the South Korean economy to focus more on overcoming the current strong challenges like intensifying Chinese issues and diminishing growth potential, experts said.The top court ruled to remove President Park Geun-hye from her office some three months after she was impeached by parliament on Dec. 9 on charges of letting a close friend meddle

March 10, 2017

Regulator urges 'emergency response' to household debt

South Korea's state financial watchdog on Friday announced a shift to an "emergency response mode" to the household debt problem dogging the key Asian economy.Outstanding household credit here jumped to 1,344.3 trillion won ($1.15 trillion) in the final quarter of 2016, up 11.7 percent from a year earlier, despite the government's aggressive efforts to curb the growth.Zhin Woong-seop, governor of the Financial Supervisory Service, in a file photo (Yonhap)The authorities admittedy to growing risk

March 10, 2017

Korea-US FTA results in US export increases, better-paying jobs to American workers

The free trade agreement between South Korea and the United States has brought about increases in overall US exports to the Asian country as well as better paying jobs to American workers, the head of the Korea Economic Institute of America said.Donald Manzullo, a former congressman who served as chairman of the Foreign Relations Subcommittee on Asia and the Pacific, made the point in an op-ed piece to the Hill, after the US trade representative released its trade policy report that highlighted

March 10, 2017

Korea's trade minister meets with US counterpart

South Korea's trade minister met with his US counterpart to increase understanding on economic cooperation between the two countries, his office here said Thursday.In a meeting with US Secretary of Commerce Wilbur Ross in Washington, Joo Hyung-hwan said the South Korea-US free trade agreement has contributed to expanding bilateral trade and investment and creating jobs in both countries since its implementation in 2012, according to the Ministry of Trade, Industry and Energy. South Korea's Trade

March 9, 2017