Personal credit card spending flat in July amid MERS outbreak

Growth in credit card spending by South Korean individuals remained unchanged in July from a year ago due apparently to the Middle East Respiratory Syndrome outbreak, data showed Wednesday, pointing to the slow recovery of consumer spending.  In July, individuals' credit card billings expanded at an annualized rate of 6.6 percent, the same growth rate posted for the same month a year earlier, according to the data compiled by the Credit Finance Association.  The association didn't disclose the v

Sept. 2, 2015

S. Korea's current account surplus narrows in July

South Korea's current account surplus narrowed in July from a record high in the previous month due mainly to a fall in the goods balance, data showed Wednesday.  The current account surplus reached $10.11 billion in July, compared with a revised $12.11 billion surplus in June, according to the provisional data released by the Bank of Korea. The current account is the biggest measure of cross-border trade.  The monthly decline was largely attributed to a drop in the balance of goods, which slump

Sept. 2, 2015

S. Korea's tax revenue gain fails to match economic growth: report

South Korea's tax revenue growth has failed to keep up with its economic expansion, a lawmaker said Wednesday, calling for the "normalization" of the country's corporate income taxes.  Citing a report by the National Assembly Budget Office, Rep.Park Kwang-on of the main opposition New Politics Alliance for Democracy said South Korea's "economic growth to tax revenue elasticity" figure stood at minus 0.1 as of 2013.   The number was the third lowest number among the 29 Organization for Economic C

Sept. 2, 2015

S. Korea's short-term foreign debt hits 2-year high

The ratio of South Korea's short-term foreign debt to its foreign reserves soared to the highest level in two years as local branches of foreign lenders increased their borrowing from overseas, data showed Tuesday.The country's short-term external debt totaled $121.2 billion as of the end of June, increasing $8.4 billion from three months earlier, according to the data by the Bank of Korea.Korea's total external debt reached $420.6 billion as of end-June, also gaining $1.7 billion over the three

Sept. 1, 2015

S. Korea's foreign assets hit record high in Q2

South Korea's foreign assets reached a record high in the second quarter of the year on more investments in overseas securities and increased foreign exchange reserves, government data showed Tuesday.  According to the data released by the finance ministry, the country's external assets stood at $711.9 billion as of end-June, $30.2 billion more than three months earlier.  In comparison, South Korea's external debt reached $420.6 billion as of the end of June, up $1.7 billion from the end of the

Sept. 1, 2015

S. Korea's exports plunge 14.7% on-year in Aug.

South Korea's exports tumbled nearly 15 percent on-year in August despite a series of government measures to boost trade, the government said Tuesday.  Outbound shipments came to US$39.33 billion in August, down 14.7 percent from the same month last year, according to the Ministry of Trade, Industry and Energy. It marks the eighth consecutive month of decline.  Still, the country's trade surplus widened to $4.35 billion as imports dropped at a faster rate of 18.3 percent on-year to $34.98 billio

Sept. 1, 2015

S. Korea's consumer prices edge up 0.7% in Aug.

South Korea's consumer prices grew less than 1 percent for the ninth month in a row in August, a government report showed Tuesday, as Asia's fourth-largest economy grapples with deflation concerns.  The country's consumer price index inched up 0.7 percent last month from a year earlier, the report by Statistics Korea showed.   The latest number remains unchanged from 0.7 percent on-year growth tallied for July.  "Weak international oil prices are exerting a downward pull on overall inflation num

Sept. 1, 2015

S. Korea cements presence in China's import market

South Korea expanded its presence in China's import market in the first half of the year thanks to strong demand for its semiconductors and consumer goods, data showed Monday.  China, the world's No. 2 economy, imported $82.8 billion worth of South Korean products in the January-June period, which accounted for 10.7 percent of Beijing's total imports valued at $775.8 billion, according to the data by the Korea International Trade Association.  The comparable figures were 9.3 percent for the same

Aug. 31, 2015

Number of firms on antitrust watch list unchanged in Aug.

The number of business group affiliates subject to restrictions on mutual investments and loan guarantees remained unchanged in August compared with a month earlier, the antitrust watchdog said Monday.  The Fair Trade Commission said the number of firms on its watch list came in at 1,674 this month, as nine conglomerate affiliates were added while nine were removed. The companies belong to the country's 61 largest business groups.  Six business groups, including LG, Lotte and Shinsegae, had more

Aug. 31, 2015

Biz lobbies demand labor reform for job creation, sustainable growth

South Korea's business community said Monday that labor reform to establish a "fair" and "flexible" employment market cannot be delayed further in order to create jobs for future generations and ensure sustainable economic growth.  The demand comes as long-stalled negotiations will likely resume after the Federation of Korean Trade Unions recently decided to resume dialogue with the government and management on labor market reforms.  "Labor reform to create a fair and flexible labor market is th

Aug. 31, 2015

Koreans' overseas card spending hits record high in H1

Overseas credit card spending by South Koreans hit a fresh record in the first half of 2015 on widened duty-free benefits and a rise in the number of outbound travelers, central bank data showed Monday.  Daily overseas credit card bills reached a record 28.6 billion won ($24.3 million) in the first six months of the year, up 21.7 percent from a year earlier, according to the data compiled by the Bank of Korea.  The on-year growth rate also marked a five-year high since the second half of 2010, w

Aug. 31, 2015

S. Korea's industrial output dips 0.5 pct on weak exports in July

South Korea's industrial output edged down in July as weak exports dented demand for electronic parts and machinery and equipment, a government report showed Monday.  According to the report by Statistics Korea, production in the mining, manufacturing, gas and electricity industries backtracked 0.5 percent last month from June. The decrease comes just a month after production figures rebounded 2.5 percent in June, following three straight months of minus growth from March through May.  Compared

Aug. 31, 2015

Biz bodies urge quick parliamentary approval of FTAs

More than 40 South Korean business bodies urged parliament Sunday to quickly approve free trade agreements  with China, Vietnam and New Zealand to help prop up Seoul's slumping exports.  South Korea's exports, the country's key growth engine, have fallen for the seventh consecutive month this year, buffeted by a global economic slowdown, falling international oil prices and currency fluctuations.  "With South Korea facing such unfavorable factors and its economic growth rate feared to drop below

Aug. 30, 2015

September biz outlook grim on China woes: survey

A majority of companies in South Korea are pessimistic about business conditions for next month as fears of China's weakening growth and its stock market rout cloud the outlook for the global economy, a survey showed Sunday.    According to the poll conducted on the country's top 600 companies by the Federation of Korean Industries, the business survey index for September stood at 95.1.   A reading below 100 means pessimists outnumber optimists about business conditions down the road.   The figu

Aug. 30, 2015

Foreigners continue selling Korean stocks in Aug.

Foreigners have continued their sell-off of Korean stocks this month in the wake of growing uncertainties in the Chinese economy and the timing of the U.S. interest rate hike weighing down on the local equity market, the bourse operator said Sunday.  Foreigners offloaded shares traded on the main KOSPI market for 17 consecutive trading days from Aug. 5 to Friday, with the net amount worth 4.13 trillion won ($3.5 billion), the Korea Exchange said.  The losing streak, the sixth-longest period, was

Aug. 30, 2015

Over 50 public firms adopt wage peak system in Aug.

More than 50 state-run companies and organizations introduced the so-called wage peak system in August amid the government's push for the system in an effort to create more jobs for young people, the finance ministry said Sunday.  As of Friday, 65 out of all public-sector firms and institutions adopted the novel wage system, up 54 from a month earlier and at a much faster clip than expected by the government.  The government had earlier expected some 43 public-sector companies to introduce the w

Aug. 30, 2015

Seoul shares forecast to rally next week

South Korean stocks are expected to move higher next week as jitters over China's growth abate and anticipation for a delay in the U.S. Federal Reserve's rate hike builds up, analysts said Saturday.The benchmark Korea Composite Stock Price Index (KOSPI) advanced 3.3 percent this week to close at 1,937.67 on Friday, snapping a five-week losing streak.The main index got off on a weak note earlier this week, dropping 2.47 percent on Monday on persistent concerns over the world's second-largest econ

Aug. 29, 2015