Private sector created least jobs in 7 yrs in 2016 amid slumping economy

The private sector created the least jobs in seven years last year amid businesses shying away from recruiting employees due to a protracted slumping economy, government data showed Monday.The number of employees rose 242,000 in the private sector last year from the previous year, Statistics Korea data said. Job opportunities in large corporates such as Samsung, Hyundai and LG (Yonhap)The figure is the smallest since 2009 when the comparable number was minus 264,000.Private sector employees surg

March 6, 2017

Fed’s looming rate hike poses risks to Korean economy

The US Federal Reserve’s clear signal for a rate hike this month is posing downward risks to the Korean economy amid the nation’s all-time-high household debt and worries over a potential foreign capital exit on a narrowed interest rate gap between Korea and the US.The Fed Chair Janet Yellen cemented her view on Friday that the Fed will raise interest rates at its meeting on March 14-15 if US employment and inflation data meet the Fed’s earlier expectations, according to news reports.She also sa

March 5, 2017

Korea's per capita GNI unlikely to reach $30,000 in 2017

South Korea is unlikely to reach its long-held target of $30,000 in gross national income per capita this year, as its economy is losing steam at a faster pace, local experts said Sunday.The GNI per capita refers to the total domestic and foreign output by residents of a country, reflecting the income level of the economy.South Korea's GNI per capita was $27,340 in 2015, ranking 46th in the world, with 43 countries over the $30,000 level, regarded as "advanced economies."For last year, South Kor

March 5, 2017

[News Focus] China’s travel ban raises alarm on economic impact

China’s reported ban on travel agencies on selling tour programs to South Korea is expected to take a toll on South Korean tourism and retailers here who rely on Chinese tourists. The China National Tourism Administration reportedly called in two dozen travel agencies in Beijing and instructed them to stop selling South Korean tour programs including group packages and services for individual tourists, according to news reports Thursday and Friday. Some sources said the ban was spreading to othe

March 3, 2017

Finance minister pledges to push forward with stronger corporate restructuring

South Korea's finance minister said Friday that he will put more efforts into intense corporate restructuring in all industries in a bid to revive the country's growth potential."It is important for companies to preemptively reorganize and restructure to prevent possible risks," Finance Minister Yoo Il-ho said in a ministerial meeting in Seoul. "The government will push forward with corporate reorganization both in the manufacturing and service industries." (Yonhap)He said the government will he

March 3, 2017

Seoul stocks sink 1.1% on Chinese backlash over THAAD

South Korean stocks dropped by more than 1 percent Friday as investor sentiment was dampened by the growing spat between China and South Korea over the deployment of a US missile defense system. The Korean won fell sharply against the US dollar.The benchmark Korea Composite Stock Price Index shed 23.90 points, or 1.14 percent, to close at 2,078.75. Trade volume was moderate at 408 million shares worth 4.97 trillion won ($4.3 billion), with losers outnumbering gainers 633 to 184. (Yonhap)The loca

March 3, 2017

BOK selects dozen operators for pilot project for coinless society

South Korea's central bank said Friday that it has selected a dozen operators for its pilot project that could potentially transform the country into what it calls a coinless society.Under the project set to begin in April, consumers can deposit small change left from purchases of goods into their prepaid or mobile cards at convenience stores, discount stores and department stores, according to the Bank of Korea. (Yonhap)The BOK said 12 participants in the pilot project include CU, a major South

March 3, 2017

Trade ministers of S. Korea, US to meet in Washington next week

South Korea's trade minister will meet with his US counterpart next week to discuss pending issues between the two countries, the ministry here said Friday.The Ministry of Trade, Industry and Energy said Trade Minister Joo Hyung-hwan will visit Washington on March 5-8 and have talks with new US Secretary of Commerce Wilbur Ross and other officials. South Korea's Trade Minister Joo Hyung-hwan (Yonhap)Ross was confirmed by the Senate on Monday and took the helm of the Department of Commerce the fo

March 3, 2017

Korea needs to cut reliance on US economy: think tank

South Korea should reduce its reliance on the US economy and push to galvanize domestic demand as the world's No. 1 economy is expected to continue its slow growth down the road, a state think tank said Friday.In a report on the future of the US economy, the Korea Institute for International Economic Policy forecast its annualized average growth rate to hover below 2 percent until 2060 due mainly to its population aging and the slowing pace of technological innovation."Since the early 2000s, Ame

March 3, 2017

Former finance minister grilled over alleged influence-peddling

Prosecutors questioned former Finance Minister Choi Kyoung-hwan Friday over suspicions of influence-peddling to get one of his former interns a job at a public corporation. The four-term lawmaker of the ruling Liberty Korea Party appeared at the Anyang branch of the Suwon District Prosecutors' Office in the morning. Rep. Choi Kyoung-hwan of the ruling Liberty Korea Party touches a computer at the National Assembly in Seoul on Feb. 10, 2017. (Yonhap)Choi is suspected of pressuring the chief of th

March 3, 2017

Retailers see sales drop on weak consumer sentiment

South Korean retailers saw their sales fall in the first two months of this year, weighed by sluggish consumption, industry data showed Friday. The sales of Lotte Department Store, the country's leading retail chain, dropped 1.2 percent in the January-February period from a year earlier, according to company data. Its rival Hyundai Department Store also saw its combined revenue slip 0.7 percent on-year in the cited period, the company said.Shinsegae posted double-digit sales growth over the two

March 3, 2017

Korea, MERCOSUR to launch trade talks in first half

South Korea and the South American trade block MERCOSUR will launch their official negotiations on a trade pact before the first half of this year, the trade ministry here said Friday, amid the country's efforts to tap deeper into the region.South Korea's Trade Minister Joo Hyung-hwan and Susana Malcorra, the foreign minister of Argentina, the chair country of MERCOSUR, signed a joint statement to open the trade talks in Buenos Aires on Thursday (local time), according to the Ministry of Trade,

March 3, 2017

Korea's consumer prices rise 1.9% in Feb.

South Korea's consumer prices rose at a faster-than-expected pace in February as prices of oil-related products picked up, government data showed Friday.The country's consumer price index gained 1.9 percent last month from a year earlier, slowing down from the previous month's 2 percent rise, according to the data compiled by Statistics Korea.From a month earlier, the index also edged up 0.3 percent in February. (Yonhap)Core inflation, which excludes volatile oil and food prices, increased 1.7 p

March 3, 2017

Consumption remains sluggish, industrial output upbeat

South Korea’s consumption remained sluggish in January, in a sign of downward pressure on the country’s economy despite a recovery in exports and industrial output, according to the country’s statistics office Thursday. While industrial production rose for three consecutive months backed by an upturn in exports, consumption saw three straight months of decline due to weak spending during the national holidays in January and a waning of the effects of consumption-boosting meas

March 2, 2017

Cancellations of insurance policies cost people W3.8tr in Jan.-Sept. period

A growing number of South Koreans canceled their insurance policies last year due to financial woes amid a protracted economic slowdown, data showed Thursday.The cancellations cost insurance policyholders 3.89 trillion won ($3.4 billion) in the first nine months of last year, according to the data released by opposition lawmaker Park Yong-jin. (Yonhap)Park's office said it received the data from the Financial Supervisory Service, South Korea's financial watchdog.Insurance firms refund some porti

March 2, 2017

Gift card issuance grows 13% on-year

The total value of gift cards issued in South Korea last year topped 9 trillion won ($7.8 billion) for the first time, data showed Thursday.The trend is apparently good news for department stores, supermarket chains, oil refiners and other related businesses. Models show gift cards in a file photo. (Yonhap)But it also raises worries about such adverse effects as tax evasion.The Korea Minting, Security Printing & ID Card Operating Corp. said it issued 9.5 trillion won worth of gift certificates i

March 2, 2017

USTR accuses Korea-US FTA of enlarging trade deficit, calls for major review

The US Trade Representative said Wednesday the free trade agreement with South Korea resulted in a "dramatic increase in our trade deficit," stressing it's time for a major review of how the US approaches trade deals. "The largest trade deal implemented during the Obama administration -- our free trade agreement with South Korea -- has coincided with a dramatic increase in our trade deficit with that country," USTR said in President Donald Trump's 2017 Trade Policy Agenda. (Yonhap)Compared with

March 2, 2017

Corporate Korea concerned about legislative moves

Concerns are deepening among South Korea’s businesses over moves by political circles that are intended to improve corporate governance, but risk putting their managerial stability in danger.Liberal opposition parties have been pushing to revise the commercial code in the direction of restraining the power of large shareholders and protecting the interest of small shareholders.(123RF)One of the most controversial proposals is to limit the voting rights of largest shareholders of listed companies

March 1, 2017

Household tax burden hits record high in 2016

The tax burden for South Korean households hit a record high in 2016, data showed Wednesday, further worsening their financial situation amid a prolonged economic slowdown.Households spent more than 1.9 million won ($1,670) in taxes on average in 2016, up 2.1 percent from a year earlier, according to data compiled by Statistics Korea. (Yonhap)It marked the highest amount since 2003, when the statistics office started collecting data on the tax burden.The increased tax burden has led to a hike of

March 1, 2017

Korea's exports rise 20.2% in Feb.

South Korea's exports jumped 20.2 percent last month from a year earlier expanding at the fastest clip in five years on rising oil prices and recovering world trade, government data showed Wednesday.Outbound shipments came to $43.2 billion in February, up from $35.9 billion tallied a year earlier, according to the Ministry of Trade, Industry and Energy. (Yonhap)The February rate of increase was the largest on-year gain since February 2012 when it posted a 20.4 percent monthly jump.It is the firs

March 1, 2017