SEJONG -- Economic policymakers on Friday said they would ramp up pressure on gas stations in a bid to ease inflationary pressure from surging energy costs, as soon as an expanded fuel tax cut goes into effect next week. The government announced last week that it would further increase tax cuts on fuel consumption from the current 30 percent to 37 percent, the maximum legal cap. “In consultation with the oil refinery industry, (the government) plans to induce a cut in supply prices for g

Consumption of gasoline and diesel in South Korea jumped more than 40 percent in May from a month earlier, as expanded fuel tax subsidies channeled pent-up demand from the pandemic, data showed Friday. The combined consumption of the two fuel types reached 24.82 million barrels, up 43 percent from 17.35 million barrels logged in April, according to the data by Petronet, an online petroleum information provider run by the Korea National Oil Corp. The surge contrasts with the declining trend seen

South Korea's trade deficit is expected to widen this month compared with a month earlier due mainly to fewer working days and a trucker strike, the finance ministry said Friday. The country had national holidays for the June 1 local elections and Memorial Day on June 6, and truckers staged a weeklong strike over a minimum wage scheme and other state supports earlier this month, disrupting and delaying production and outbound shipping. During the first 20 days of this month, the country

South Korea’s financial authorities on Thursday warned of a “perfect storm” approaching the nation’s economy, while pledging to pump liquidity into financial institutions to cushion them from growing risks, if needed. The concerns come as the US Federal Reserve’s aggressive rate hikes, a strong dollar trend, high inflation and ongoing global supply chain bottlenecks have been rattling the Korean market. “Some experts compare the current economic state to t

A senior central bank official on Thursday underscored the importance of preventing inflation expectations from rising as the country is grappling with rising prices amid high energy and commodity costs. Bank of Korea (BOK) Deputy Gov. Lee Seung-heon voiced concerns that inflation pressure remains high for the time being, citing such factors as the ongoing war in Ukraine that has exacerbated supply-chain disruptions. "Mandated to maintain price stability, the BOK should preemptively manage

Debt owed by South Korean households and companies in the first quarter of this year reached a combined 3,468.4 trillion won ($2.6 trillion), or 219.4 percent of South Korea’s gross domestic product, the Bank of Korea said Wednesday, warning a rate hike could worsen repayment burdens and hurt people’s purchasing power. The central bank, set to raise borrowing costs in July amid red-hot inflation, said in a report on financial stability that household and company debts fell by 0.1 pe

South Korea's top central banker will head to Switzerland this week to attend the general assembly of the Bank for International Settlement (BIS), his office said Wednesday. BOK Gov. Rhee Chang-yong will leave for Basel on Thursday to attend the annual BIS meeting over this weekend, according to the BOK. Rhee is to meet with top central bankers of other countries and exchange views on the latest economic and financial market situations, it added. He will also attend a BIS board meeting duri

The number of babies born in South Korea fell to a record low in April amid the chronically low birthrate, while that of deaths hit an all-time high due to rapid aging and the COVID-19 pandemic, data showed Wednesday. A total of 21,124 babies were born in April, down 7 percent from the previous year, according to the data from Statistics Korea. It marked the lowest for any April since 1981, when the statistics agency started compiling related data. South Korea is struggling with a chronic declin

Internet-only bank Toss Bank said Tuesday that it will sell stocks to raise 100 billion won ($77.2 million) to fund business expansion. In a regulatory filing, the company said it will issue a total of 15 million common shares and 5 million convertible stocks at a price of 5,000 won per share. With the stock offerings, Toss Bank's total paid-in capital will amount to 950 billion won. Since its launch, Toss Bank has sold stocks worth 600 billion won to beef up its capital base. Launched in 2

Ahead of July rate decision, BOK warns annual inflation could hit 14-year high

SEJONG -- The Yoon Suk-yeol administration on Tuesday unveiled the first batch of its real estate measures that offer lowering tax burdens for first-time homeowners and expanding tax deductions for tenants, taking the first step to realize its campaign pledge to “normalize” the housing market. The government will come up with detailed measures for the supply of 2.5 million homes and more no later than August.　 At a joint briefing, First Vice Minister of Economy and Finance Bang Ki

South Korea's exports fell 3.4 percent in the first 20 days of June from a year earlier due mainly to fewer working days, and its trade deficit widened on higher global energy costs, customs data showed Tuesday. The country's outbound shipments stood at $31.28 billion in the June 1-20 period, compared with $32.4 billion a year earlier, according to the data from the Korea Customs Service. The fall is attributable to fewer working days during the cited period due to holidays for the Jun

South Korea's central bank said Tuesday it expected inflation to grow at a faster pace than previously anticipated and possibly hit the highest level in 14 years for this year as price pressures are mounting from rising demand and a tight supply. In an apparent forward guidance, Bank of Korea (BOK) Gov. Rhee Chang-yong said the central bank will carry out its monetary policy with a priority on price stability until inflation ends its upward trend, hinting that it will likely continue to raise it

The government on Tuesday vowed to relax regulations on loans for "jeonse" home rentals and to raise tax deduction rates for monthly rental contractors in a move to help ease financial burdens on tenants and stabilize the housing market. Under the Yoon Suk-yeol administration's first package of measures on the property market, the government also pledged to reform the presale price cap scheme imposed on private apartments and offer a tax cut to landlords who sell their homes after long

South Korea’s top financial regulator said Monday that banks should step up efforts to protect self-employed and small business owners who are affected most by surging interest rates, at a meeting held with 17 local bank CEOs ahead of a rate decision by the Bank of Korea in July. “Rising interest rates and prices could push them into defaults and we have to be ready for that,” said Gov. Lee Bok-hyun, who was named to lead the Financial Supervisory Service two weeks ago. The me