Concerns are growing over the negative impact of the strengthening won on Korea’s exports, with expectations also being raised that a rise in the value of the currency will help boost investment and consumption.The value of the won gained 1.16 percent against the US dollar over the past two weeks to close at 1,069.6 won per dollar in the Seoul foreign exchange market Friday.It marked the second-steepest appreciation among the currencies of Group of 20 major economies following Mexico&rsquo

Economy April 9, 2018

Concerns over Korea’s mounting state liabilities and debt are being deepened by the Moon Jae-in administration’s push to hire a massive number of public sector workers and expand government spending beyond limits set by an existing fiscal management plan.Korea saw its state liabilities for pensions paid to retired public employees and debt owed by central and regional governments more than double over the past six years to exceed 1,500 trillion won ($1.42 trillion) combined last year

Economy April 4, 2018

Recent economic data show a modest recovery in the country’s economy that has fallen short of boosting employment and improving people’s livelihoods.Underlying the trend is a widening polarization between large and small companies and between exporting and domestically focused firms, experts say.What is further concerning is the economy is set to face severe downside risks in the latter half of this year when the impact from deteriorating external and internal conditions will begin b

Economy April 2, 2018

Korea is moving to free itself of the possibility of being designated by the US as a currency manipulator, which remains an uncertain factor for its exporters after the two countries this week reached an agreement on amending their bilateral free trade deal and exempting Korea from US steel tariffs.The Ministry of Strategy and Finance and the Bank of Korea said in a joint statement earlier this month they had studied plans to advance the foreign exchange market in the country.No decision has bee

Economy March 28, 2018

Negotiations with China and Japan on a trilateral free trade agreement could provide Korea with a framework instrumental in coping with rising global protectionism, experts say.Intensifying trade conflicts between the US and China might get Beijing to be more positive on reaching the three-way accord, which would create the world’s third-largest trade bloc after the North American Free Trade Agreement and the EU.The three Northeast Asian countries combined accounted for 23.3 percent of glo

Economy March 26, 2018

Concerns are rising that Korea, which is heavily dependent on exports for growth, will become the biggest victim of a looming global trade war prompted by US protectionist measures and retaliatory moves from other major economies.China and the EU are poised to react strongly if they are subject to hefty US tariffs on steel and aluminum imports, which are slated to come into force Friday.The trade conflict between the US and China is set to further flare up as President Donald Trump’s admin

Economy March 21, 2018

The Moon Jae-in administration’s employment policy, which relies on fiscal spending and is unaccompanied by regulatory and labor reforms, will do little to ease Korea’s deteriorating situation of youth joblessness, experts say.What is further concerning is that a set of pro-labor measures taken by the administration is pushing an increasing number of local firms to move production abroad, reducing jobs at home.The Ministry of Strategy and Finance is drawing up a supplementary budget

Economy March 19, 2018

Calls are rising for President Moon Jae-in’s administration to be more strategic and flexible in coping with mounting US trade protectionism, which is casting a broadening shadow on Korea’s exports.Moon instructed his aides last month to confidently and resolutely deal with what he called “unreasonable” US protectionist measures. The instruction came days after the US Department of Commerce released a report recommending President Donald Trump impose stiff tariffs on stee

Economy March 14, 2018

Korea needs to move faster to join a Pacific trade deal signed by Japan and 10 other regional nations last week without the presence of the US, experts here say.Seoul officials have withdrawn their attention from the Japan-led process of reviving the Trans-Pacific Partnership since President Donald Trump pulled the US out of it to pursue his “America First” agenda shortly after taking office early last year. An interministerial task force formed to consider Korea’s entry to the

Economy March 12, 2018

Calls are growing for more strenuous efforts to improve the country’s labor productivity to offset the negative effects of reduced work hours and increased wages on companies and the economy as a whole.Korea’s labor productivity remains near the bottom among major economies.A Korean worker produced added value worth $33.10 per hour on average in 2016, far below the average of $47.10 for 35 member states of the Organization for Economic Cooperation and Development. The corresponding f

Economy March 7, 2018

Industrial restructuring has been going adrift under President Moon Jae-in’s administration, deepening concerns about the weakening of the country’s economic fundamentals.In December, the administration announced a new direction for corporate restructuring, which focused on ensuring a balance between financial logic and industrial consequences and considering the effects on regional economies and employment.To fit into the redefined approach, the government’s main arm for indus

Economy March 5, 2018

Mounting trade pressure from the US has prompted speculation here that Washington is linking trade issues to security concerns to keep in check what it views as President Moon Jae-in’s enthusiastic push for inter-Korean rapprochement ahead of the North’s denuclearization.Many commentators note South Korea is receiving the harshest treatment from the Trump administration, though its trade surplus with the US dropped significantly last year while the US’ imbalances with other major economies widen

Viewpoints March 1, 2018

Questions are being raised about the relevance of the government’s move to draw up a supplementary budget this year to cope with the country’s deteriorating unemployment problem.Critics note President Moon Jae-in’s administration is looking for an easy way to tap into taxpayers’ money to bolster employment at the risk of neutralizing fiscal disciplines.Finance Minister Kim Dong-yeon, who doubles as deputy prime minister for economic affairs, said last week that the govern

Economy Feb. 26, 2018

Korea Inc. is being squeezed between growing risks from its two largest trading partners and a raft of anti-business policies pushed by President Moon Jae-in’s administration.The country’s manufacturing exporters have faced mounting protectionism in the US and intensifying competition with their Chinese rivals both in traditional and high-tech sectors.Under recommendations made last week by the US Department of Commerce to President Donald Trump, steelmakers from Korea and 11 other c

Economy Feb. 21, 2018

Calls are rising for timely measures to stabilize the increasing fluctuation in the value of the Korean won.Economists note a failure to properly respond to currency fluctuations could lead to sparking foreign capital flight or dampening exports that have shored up Asia’s fourth-largest economy.The won has depreciated against the US dollar in recent weeks as the global shock waves prompted by the prospect of steep US rate hikes hit local financial markets.Foreign investors net sold Korean

Economy Feb. 19, 2018