The number of South Korean corporate bankruptcies jumped to a seven-month high in November, the central bank said Monday, raising concerns at signs of an economic slowdown.The number of companies that went belly-up totaled 130 last month, up from 118 in October, according to the Bank of Korea.The figure is the highest since 134 bankruptcies registered in April. The BOK added that the number of newly set-up firms reached 5,432 in November, growing 358 from the previous month.The default rate of c

Dec. 19, 2011

South Korea plans to actively use its tariff quota system to cope with supply-side instability that can fuel inflationary pressure in 2012, the finance minister said Monday.In a meeting with economic policymakers, Bahk Jae-wan said Seoul plans to use the flexible tariffs to stabilize prices of products that may experience supply shortfalls.“There may be supply problems with products such as rice, dried chili peppers, garlic and pork in the coming months that can affect consumer prices,” he said.

Dec. 19, 2011

South Korea is seeking to create an Asian financial safety next year as part of the Chiang Mai Initiative Multilateralization regime to better insulate the regional economies from a worldwide financial meltdown, the country’s senior economic policymaker said Monday.Speaking at the G20 global economic cooperation conference hosted by the Korea Development Institute, Finance Minister Bahk Jae-wan said that there is support and sympathy for setting up a regional precautionary credit line. The plan

Dec. 19, 2011

South Korea’s real interest rate remained in negative territory for the 25th straight month in November, data showed Monday, raising concerns the trend will continue into next year amid a possible global economic downturn.The real interest rate, or the benchmark interest rate minus the consumer inflation rate, stood at minus 1 percent in November, according to the data compiled by the Bank of Korea.The November figure extended the minus real interest rate period to its longest streak since the B

Dec. 19, 2011

By Yang Sung-jinSouth Korea’s stock market has demonstrated the most volatility of any market worldwide this year, data showed on Monday.Even aside from the turbulence sparked by the news of Kim Jong-il’s death, the financial industry’s data suggests that Korean investors rode a roller coaster ride this year, thanks to greater external uncertainties.The eurozone sovereign debt crisis, the growing local derivatives market and heavy reliance of the Korean economy on trades added to volatility, bro

Dec. 19, 2011

By Cynthia J. KimThe death of North Korean leader Kim Jong-il sparked immediate concern in the market, pushing the won to a two-month low against the dollar and dropping Seoul stocks to a three-week low.The benchmark KOSPI lost 3.43 percent and closed at 1,776.93 after sliding as much as to 1,750.60 at around noon when North Korea announced that the communist leader died on Dec. 17. The local currency lost 1.4 percent to 1,174 won against the greenback after dipping as low as 1,179.95. The junio

Dec. 19, 2011

Factories running as usual in Gaeseong industrial park despite news of Kim’s deathNews of North Korean leader Kim Jong-il’s death had no immediate impact on the joint industrial park just north of the inter-Korean border Monday, but observers are wary of temporary setbacks in production during the official mourning period.Once Kim’s Swiss-educated heir Jong-un firms up his control over the government, however, inter-Korean trade and economic collaboration are expected to expand in the long term.

IndustryDec. 19, 2011

Global rating firms predicted Monday that the death of North Korean leader Kim Jong-il would not lead to a downgrade of South Korea’s credit rating.Moody’s Investors Service said that the economic fundamentals of Seoul would not change with Kim’s death.“We will continue to rate South Korea on the basis of its economic, institutional and government financial fundamentals,” a senior vice president at Moody’s in Singapore was quoted by a Chinese news provider as saying.He said these would not chang

Dec. 19, 2011

SEOUL, Dec. 19 (Yonhap) -- South Korea's finance minister said Monday the government is keeping close tabs on developments and will take all necessary steps to determine the economic impact of the North Korean leader's death."Seoul is checking all changes, carefully analyzing their implications and

Dec. 19, 2011

The death of North Korea's Kim Jong Il is not a ratings trigger in itself?for South Korea, Fitch Ratings said in an e-mail today. "However, clearly it gives rise to additional uncertainty and we will keep the situation under close review," the e-mail said.Moody’s Investors Service said the deat

Dec. 19, 2011

TOKYO, Dec 19, 2011 (AFP) - The dollar rose against other currencies on Monday following news that North Korean leader Kim Jong-Il had died, which sparked worries over instability in the reclusive state.The greenback gained ground as market players digested the announcement from North Korean state t

Dec. 19, 2011

SHANGHAI (AP) _ Asian stock markets slid Monday amid news that the mercurial leader of nuclear-armed North Korea has died, raising fears of increased political instability in the region.South Korea's Kospi index dived 4.1 percent to 1,765.15. Japan's Nikkei 225 index was down 1.1 percent at 8,304.47

Dec. 19, 2011

The South Korean stock market was one of the world's most volatile this year as global uncertainties triggered massive flows of foreign capital in and out of the local bourse, data showed Monday.The local stock market moved 1.23 percent on a daily basis on average in 2011, sharply up from 0.73 perce

Dec. 19, 2011

The vice chairman of Hyundai Motor Co. and its heir apparent is the third-richest person in South Korea in terms of stock holdings, thanks to a surge in share prices of the country's largest automotive conglomerate, a report showed Monday.Chung Eui-sun, the only son of Hyundai Motor's Chairman Chung

Dec. 19, 2011