Seoul-Tokyo summit needed to restore ties, resolve pending issues: biz leaders

Business leaders of South Korea and Japan called Monday for the leaders of the two countries to hold a summit at an early date to address pending bilateral issues and help restore economic ties. The Federation of Korean Industries (FKI) and the Japan Business Federation, or Keidanren -- major business lobbies in the two countries -- made the joint call during their annual meeting that was resumed after a nearly three-year hiatus caused by the COVID-19 pandemic. "We must upgrade the declara

EconomyJuly 4, 2022

Preemptive measures in store to tackle risks from rising rates: chief policymakers

South Korea's finance minister, the central bank chief and financial regulators said Monday they will step up policy coordination to minimize fallout from rising interest rates at home and abroad. In a meeting presided over by Finance Minister Choo Kyung-ho, they discussed economic and financial situations amid heightened external economic uncertainty from the prolonged war between Russia and Ukraine, and the Federal Reserve's aggressive monetary policy tightening. The meeting brought

EconomyJuly 4, 2022

Fiscal chief vows extra W40tr to help exporters

Finance Minister Choo Kyung-ho said Sunday that he would help Korean companies sell more goods overseas by offering more loans at a time when Korea’s exports snapped 15 months of double-digit growth in June, stocking recession worries. The trade deficit in January-June this year reached $10.3 billion, the highest level ever recorded in the first six months of a year, despite record-high exports in the same period, as soaring energy prices offset the export gains. “I am not quite su

EconomyJuly 3, 2022

Retail inflows at 2-year low as recession worries mount

The average daily trading volume of retail investors on the main board Kospi in June dropped to its lowest level since February 2020, data from the Korea Exchange showed Sunday. The fall comes as investors are bracing for a growth slowdown from the US Federal Reserve’s rate hikes. The value of shares investors bought and sold in a day on average on the benchmark index reached 4.3 trillion won ($3.3 billion) last month. That is a little more than 3.7 trillion won recorded in February 2020

MarketJuly 3, 2022

No. overseas travelers surpasses 1 million mark in June

The number of international travelers spiked to 1.28 million last month, surging 420 percent on-year, despite surging airfares and insufficient flight schedules, the Transport Ministry said Sunday. This was the first time that the number of monthly international travelers surpassed 1 million since the outbreak of COVID-19. The increase in international travel demand is likely to help the Transport Ministry achieve its goal of restoring the number of inbound and outbound flights to 50 percent o

MobilityJuly 3, 2022

Wagon, hatchback make a comeback as more drivers seek practicality

The long, swoopy, not-so-pretty design of wagon and hatchback has definitely not been popular in South Korea, a country where SUVs and luxury sedans make up most of the market share. But targeting drivers who seek compact car with sedan-like driving comfort and spacious cargo space like SUVs, automakers are launching wagons and hatchbacks to lure consumers amid shifting trends. According to the country’s largest automaker Hyundai Motor Group, its luxury brand Genesis will start selling a

MobilityJuly 3, 2022

[Exclusive] SK Pharmteco to invest extra $30m for Irish plant expansion

SK Pharmteco, a global contract development and manufacturing organization under South Korean conglomerate SK Group, will invest an additional $30 million (39 billion won) for the second phase expansion of its subsidiary SK Biotek’s Irish pharmaceutical manufacturing plant, an executive told The Korea Herald. “The total funding over the two phases is expected to be $65 million -- $35 million for phase one and an additional $30 million planned for the second phase expansion,” s

IndustryJuly 3, 2022

Calls grow over legislation of digital data inheritance

When a person dies, a will provides instructions on where and to whom their property, possessions and asset go. But what happens to the things they leave behind that only exist online? A local platform operator said Sunday that it had been working with law firms on a bill that would define the type of digital assets subject to inheritance, the range of disclosure and eligibility. Demand for people to be able to keep photos and texts left behind by deceased loved ones has been growing, but the

IndustryJuly 3, 2022

LG Energy Solution chief leaves for Europe to push factory automation

South Korean lithium-ion automotive battery maker LG Energy Solution announced Sunday that its Chief Executive Officer and Vice Chairman Kwon Young-soo has embarked on a trip to Europe to support the company’s push for the automation of manufacturing. Kwon left Seoul on Sunday with he plans to visit Wroclaw, southwestern Poland, where LG Energy Solution’s 70-gigawatt-hour battery plant is located, according to the company based in Seoul. The Wroclaw location has annually produced

IndustryJuly 3, 2022

KB vows to serve customers amid economic uncertainty

KB Financial Group Chairman Yoon Jong-kyoo said Friday that he would better serve customers by giving them what they need amid worsening inflation pushing up interest rates, at a biannual meeting with executives held in-person for the first time since January 2020. “The mission of financial institutions like us is to offer protection to clients, like having whatever they have with us stay unharmed in the event of a crisis,” Yoon said, describing client protection as the top priority

IndustryJuly 3, 2022

5 makers of manhole covers fined for price fixing

South Korea's antitrust regulator said Sunday it has decided to impose a combined fine of 2.14 billion won ($1.64 million) on five producers of manhole covers for colluding to fix prices of industrial products. Segye Cast Iron Co. and four other companies colluded to fix their quotations between September 2011 and January 2020 for more than 1,000 rounds of purchasing bidding for manhole covers, according to the Fair Trade Commission (FTC). They colluded to fix bidding prices and designate a

IndustryJuly 3, 2022

Financial regulator to take measures to ease volatility in stock markets

Financial authorities said Friday they will take a series of measures from next week to ease volatility in stock markets, as the nation's benchmark stock index sank to a 20-month low due to fears of an economic recession.    From next Monday, brokerage firms will be exempted from an obligation to hold at least 140 percent of the value of each stock purchase, to provide credit to their customers, the Financial Services Commission (FSC) said in a statement.    The exemption

EconomyJuly 1, 2022

Korea suffers all-time high trade deficit in 1st half

SEJONG -- South Korea posted a record-high trade deficit during the first half of 2022 in the wake of a spike in import prices of raw materials, state data showed Friday. According to the Ministry of Trade, Industry and Energy, the nation’s exports recorded $350.3 billion during the January-June period, up 15.6 percent compared to the corresponding period of 2021. Imports increased by 26.2 percent on-year to post $360.6 billion. This brought about a trade deficit of $10.3 billion, which

EconomyJuly 1, 2022

[Newsmaker] Internet-only banks lure customers with Tamagotchi-like savings accounts, digital piggy banks

Saving money is never fun. But when combined with a digital pet that grows alongside the size of your savings, it can be more motivating. South Korea’s three internet-only banks -- KakaoBank, K bank and Toss Bank -- have launched unique products such as Tamagotchi-like savings accounts, mobile joint accounts and digital piggy banks to lure customers attracted to the trends. Toss Bank, launched in October last year, has registered 3.6 million users in just eight months through a slew of

MarketJuly 1, 2022

Online shopping expands in May on lifting of virus curbs

Online shopping in South Korea continued to increase in May as the lifting of virus curbs bolstered demand for travel and cultural services and foodstuffs, data showed Friday. The value of online shopping transactions stood at 17.3 trillion won ($13.4 billion) in May, up 10.5 percent from the previous year, according to the data from Statistics Korea. Purchases made through smartphones, tablets and other mobile devices increased 14.6 percent on-year to 12.9 trillion won. Mobile shopping took up

IndustryJuly 1, 2022

Exports up 5.4 pct in June; trade deficit hits record high in H1

South Korea's exports rose 5.4 percent on-year in June on solid demand for chips and petroleum products, but the country extended its trade deficit for the third consecutive month due to high global energy prices, data showed Friday. During the first six months of this year, the country saw exports reach an all-time half-year high, but high-flying energy prices sent the trade deficit to the highest figure for any first-half period, according to the data compiled by the Ministry of Trade, In

IndustryJuly 1, 2022

Apple to allow external app payment options in S. Korea in compliance with local law

Apple Inc. said Thursday it will allow alternative payment options for apps sold in South Korea in compliance with a law that bans app store operators from forcing their own in-app payment systems. The U.S. tech giant announced on its developer site that apps distributed on the company's App Store solely in South Korea will be able to use its "StoreKit External Purchase Entitlement" option to "provide an alternative in-app payment processing option." Apple said developers t

TechnologyJune 30, 2022

Hyundai Motor Group to establish US corporate body in Delaware

South Korean automotive giant Hyundai Motor Group said Thursday that it would establish an overseas corporate body in the state of Delaware, as part of its focus to invest in US companies with future technologies and to manage them more efficiently.  The decision follows a $10.5 billion investment plan for the US, which was announced during US President Joe Biden’s state visit to Seoul on May 21. It marks the largest overseas spending by the Korean company so far.  Tentatively

IndustryJune 30, 2022

Vietnam outpaces S. Korea in instant noodle consumption

Vietnam outpaced South Korea in terms of instant noodle consumption per capita, on the Southeast Asian country’s growing purchasing power and economic growth rate, data showed Thursday. According to Nongshim, a leading ramyeon maker in South Korea, the average Vietnamese eats about 87 servings a year while the average South Korean has 73 servings, citing 2021 data from the World Instant Noodles Association. Nepal was in third place with 55 servings per person a year. Korea topped the wor

ConsumerJune 30, 2022

Slowdown to bite harder next year: experts

The US slowdown is set to cause economic headwinds for South Korea over the next year, though analysts said it would have less impact than the 2007-2008 financial crisis. Fei Xue, an Asia analyst at the Economist Intelligence Unit, told The Korea Herald that the US and EU represent “two major export markets” for Korea and the deceleration expected to take place there soon would lead to waning demand for chips, cars and other export items. For now, such exports alongside stronger do

EconomyJune 30, 2022