Korea unveils tax reform bill to spur economy

South Korea unveiled its tax code revision bill Thursday, featuring a major overhaul of the outdated inheritance tax system and new measures to boost investment and encourage marriage. Featuring tax cuts and incentives, the plan is expected to reduce tax revenue by approximately 4.4 trillion won ($3.17 billion) over the next five years. However, the government projects that economic recovery later this year will improve revenue conditions and offset this reduction. "This year's tax rev

July 25, 2024

Chief financial regulator nominee says to manage rising household loans

The nominee to head the Financial Services Commission said Monday that the authorities would manage rising household loans amid concerns that such fast-rising loans could hurt economic recovery and the financial system. "We are in a situation to remain guarded (against the pace of household loans)," Kim Byoung-hwan, a former vice finance minister who was nominated as the FSC chief, said during a parliamentary confirmation hearing. "Authorities will thoroughly manage such loans.&qu

July 22, 2024

Biden's withdrawal sparks mixed outlook for Kospi

Analysts here took a mixed view on how US President Joe Biden’s withdrawal from the November presidential race would affect South Korean shares, with growing uncertainty expected to hurt investor sentiment. Some brokerages expected the benchmark Kospi index to dip below the 2,650 level due to heightened short-term volatility. Others anticipated the main bourse would rise to 2,900 thanks to the recovery of shares in the semiconductor, automobile and rechargeable battery industries. These

July 22, 2024

Exports rise 18.8% during first 20 days of July

South Korea's exports rose 18.8 percent on-year in the first 20 days of July, data showed Monday, on the back of the robust performance of chips and cars. Outbound shipments reached $37.17 billion in the July 1-20 period, compared with $31.2 billion tallied a year earlier, according to the data from the Korea Customs Service. Imports grew 14.2 percent on-year to $37.2 billion during the period, resulting in a trade deficit of $50 million. By sector, outbound shipments of semiconductors jump

July 22, 2024

Record-high college graduates not working or looking for jobs

The number of South Koreans without a job or seeking a job marked an all-time high in the first half of this year, government data showed Sunday. According to Statistics Korea, there were 4.058 million people in the country with a college degree who were considered an "economically inactive population," which refers to those aged 15 or over who are unable to or unwilling to work. This includes students, homemakers, those preparing for state exams for government official posts and peo

July 21, 2024

Korea logs record US trade surplus in 1st half amid surging Trump risks

South Korea logged an all-time high trade surplus with the United States in the first half of this year based on strong auto exports, as the country monitors the US presidential race carefully and the chances of a second Donald Trump administration’s heavy protectionism. According to the Ministry of Trade, Industry and Energy and Korea International Trade Association on Sunday, Korea posted a record US trade surplus of $28.7 billion from January to June this year, up 55.1 percent from the

July 21, 2024

S. Korea-Turkey revised double taxation treaty to take effect next week

A bilateral double taxation avoidance treaty between South Korea and Turkey was to come into force next week, Seoul's finance ministry said Friday. The revised convention, set to take effect Sunday, sets the maximum rate of withholding tax in the source country on income payments at 15 percent, compared with the current 20 percent, according to the Ministry of Economy and Finance. The revision aims at easing the tax burden on companies doing business in the other country, and better prevent

July 19, 2024

S. Korea's unemployment up 16.9 percent on-year: report

Recent government data showed Thursday that the number of involuntarily unemployed people in South Korea reached 1.24 million in June, marking a 16.9 percent increase from the same month last year. According to a report by Rep. Hwang Jung-a of the main opposition Democratic Party of Korea, the figure for June actually marked a substantial decrease compared to 1.89 million in January, and a slight increase from 1.23 million in May. But this year's monthly figures have risen considerably

July 18, 2024

Czech bid paves way for S. Korea's advance into nuclear energy market in Europe: industry minister

South Korean Industry Minister Ahn Duk-geun said Thursday that the country's recent winning of a nuclear power project in the Czech Republic will pave the way for its active advance into the broader European nuclear energy market. On Wednesday, the state-run Korea Hydro & Nuclear Power was selected as a preferred bidder to build two reactors at the Dukovany power plant by beating France's EDF. "We were able to secure a bridgehead to export nuclear reactors to Europe, which is

July 18, 2024

S. Korea, India hold fresh round of trade talks

South Korea's industry ministry said Wednesday it held a fresh round of trade talks with Indian officials to improve a bilateral partnership agreement. Director General of FTA Negotiations Ryu Peob-min and his Indian counterpart, Anant Swarup, started the three-day session in Seoul to discuss the agenda, including goods, services and investment, according to the Ministry of Trade, Industry and Energy. South Korea and India implemented the CEPA in 2010 and have been carrying out negotiations

July 17, 2024

Govt. asks refiners for efforts to stabilize oil prices

The industry ministry said Tuesday it has asked the country's four major oil refiners to refrain from excessive price increases as part of efforts to combat lingering inflation. Second Vice Industry Minister Choe Nam-ho made the remark during his meeting with representatives from SK Energy Co., GS Caltex Corp., S-Oil Corp. and HD Hyundai Oilbank, according to the Ministry of Trade, Industry and Energy. "Although consumer prices have slowed to some extent since April, perceived inflatio

July 16, 2024

Delinquency ratio on bank loans rises for 2nd month in May

The delinquency ratio on loans extended by banks in South Korea rose for a second consecutive month in May, data showed Tuesday. The delinquency ratio on banks' won-denominated loans stood at 0.51 percent at end-May, up 0.03 percentage point from a month earlier, according to the data from the Financial Supervisory Service. The rise follows a 0.05 percentage-point on-month increase in April. The May reading marks a 0.15 percentage-point rise from a year earlier. The amount of newly overdue

July 16, 2024

Import prices rebound in June on rise in costs of petrochemicals, raw materials

South Korea's import prices rebounded in June as a rise in prices of petrochemical goods and raw materials offset a fall in oil prices, central bank data showed Tuesday. The import price index rose 0.7 percent last month from a month earlier following a 1.3 percent on-month dip the previous month, according to the preliminary data from the Bank of Korea (BOK). From a year earlier, prices also rose 9.7 percent last month following a 4.7 percent on-year advance the previous month, the data sh

July 16, 2024

Trump presidency won’t be a bane for Korean firms: FKI chief

The head of the Federation of Korean Industries, the country’s major business lobby has said another term for former US President Donald Trump would be favorable for Korean companies operating there, as he would not discriminate against foreign firms that invest in the country. Ryu Jin, the FKI chairman who also serves as the chairman of Poongsan Corp., suggested that Trump’s win in the November presidential election may offer a better business environment for Korean firms than tha

July 15, 2024

HD Hyundai Marine Solution secures W3b stake in AI startup

HD Hyundai Marine Solution, a ship maintenance unit affiliated with Korean shipbuilding giant HD Hyundai, has joined hands with logistics solutions provider SeaVantage, aiming to advance its maritime transport network, the company announced Sunday. HD Hyundai Marine Solution said it signed a deal with SeaVantage, agreeing to strategically invest in the startup by acquiring a 3 billion won ($2.17 million) stake in the company. Lee Ki-dong, CEO of HD Hyundai Marine Solution, Song Hyung-jin, founde

July 14, 2024

S. Korea's average export price of cars hits record high in H1

The average price of South Korean automobiles shipped overseas hit a new record high in the first half of 2024, data showed Sunday, following the growing demand for premium models. According to data compiled by the Korea Automobile & Mobility Association, the average price of car exports reached $25,224 over the January-June period, up 0.5 percent from $25,079 recorded a year earlier. The increase came amid growing demand for eco-friendly models, as well as SUVs and commercial cars, which ty

July 14, 2024

South Korea faces existential issue: OECD

The South Korean economy is poised to continue its recovery in the latter half of this year, yet the country must address its "existential issue," which stems from problems such as low productivity, a declining population and climate change, the Organization for Economic Cooperation and Development said Thursday. "We publish surveys every two years, but this one is about an existential issue for Korea," said Vincent Koen, the OECD's country studies division chief in the

July 11, 2024

BOK maintains key rate at 3.5% but hints at cut

The Bank of Korea kept its benchmark interest rate unchanged for the 12th consecutive time Thursday, while hinting at a future rate cut if the current path of disinflation continues. The central bank has maintained the rate at 3.5 percent for over one and half years, since the rate-setting decision made in January 2023. This is the longest rate freeze ever, surpassing the previous 17-month record in 2016-2017. All six members of the monetary policy board, excluding BOK Gov. Rhee Chang-yong, agre

July 11, 2024

Exports soar 34% from July 1-10 on strong chip sales

South Korea's exports jumped 33.8 percent on-year in the first 10 days of July on strong global demand for semiconductors, data showed Thursday. Outbound shipments reached $17.75 billion in the July 1-10 period, compared with $13.26 billion tallied a year earlier, according to the data from the Korea Customs Service. Per-day exports also gained 10.2 percent on-year to $2.09 billion. Imports grew 26.7 percent on-year to $19.7 billion during the period, resulting in a trade deficit of $2 bill

July 11, 2024

[Herald Interview] TIAA-owned asset manager eyes Korean investors’ appetite for alternative assets

Nuveen, the investment manager of the US Teachers Insurance Annuity Association with $1.2 trillion in assets under management, is seeking to broaden its investor base in the Korean market from big institutions to retail investors by launching funds to invest in unlisted medium-sized companies. Retail investors are now seeking unconventional opportunities in the alternative market to expand their portfolios beyond their typical investment vehicles, such as stocks and bonds. Chang Jae-ho, Nuveen&#

July 10, 2024