Emerging markets face sharp currency depreciation

Emerging economies in Asia and South America are facing a sharp depreciation of their local currencies as the global foreign exchange market has been rattled by China's devaluation and a highly possible U.S. rate hike, data showed Monday.Starting last Tuesday, China's central bank devalued its yuan more than 4 percent for three days in a row, setting the daily reference rate at around 6.4 yuan to the U.S. dollar.Dealers said China's aggressive measure has sparked concerns about a series of curre

Aug. 17, 2015

Big firms send large amount of money to tax havens

Large South Korean companies have sent more than $400 billion to offshore tax havens over the past eight years, with nearly 40 percent of the amount yet to be returned home, data showed Sunday.According to the data by the Bank of Korea and other government agencies, local big firms remitted a combined $432.4 billion to tax havens abroad between 2007 and 2014.Of the total, $158.3 billion has been repatriated so far, with the rest, or 37 percent, yet to be returned home.Only $12.3 billion was clas

Aug. 16, 2015

S. Korea logs trade surplus for 42nd month in July

South Korea posted a trade surplus for the 42nd month in a row in July as imports dropped at a much faster pace than exports, customs data showed Thursday.  According to the data by the Korea Customs Service, the country's trade surplus reached $7.72 billion last month, up significantly from $2.34 billion the year before but smaller than the $9.91 billion reached in June.  Exports contracted 3.4 percent on-year to $46.56 billion in July, while imports nosedived 15.3 percent to $38.84 billion. In

Aug. 13, 2015

Household loan growth slows in July

Household loans extended by South Korean lenders slightly slowed from the previous month but still remained high on robust home transactions, central bank data showed Wednesday.  Outstanding household loans extended by local banks totaled 601.9 trillion won ($509.1 billion) as of the end of last month, gaining 7.4 trillion won from June, according to the Bank of Korea.  The monthly gain was smaller than the 8.1 trillion-won increase in June but still bigger than the 7.3 trillion-won gain logged

Aug. 12, 2015

Gov't to push public firms to adopt peak wages

The government said Wednesday it will aggressively push the public sector to adopt peak wages for workers within this year as part of an ongoing effort to create more job opportunities for young people.  Public corporations and state-run organizations that adopt peak wages early will receive higher marks in their performance evaluations, an official said, adding they will also be given incentives when it comes time to negotiate annual wage hikes.   If public companies accept wage peaks for worke

Aug. 12, 2015

S. Korea's jobless rate edges down to 3.7 pct in July

South Korea's jobless rate inched down in July as more people were hired in the manufacturing and hospitality sectors, a government report showed Wednesday.  According to the report by Statistics Korea, the jobless rate stood at 3.7 percent last month, down from 3.9 percent in June. The number, however, represents a 0.3 percentage-point rise from a year earlier.  The seasonally adjusted jobless rate for July was 3.7 percent, down from 3.9 percent tallied for the previous month.  The number of em

Aug. 12, 2015

S. Korea's overseas investment up 12.1 pct in H1

South Korea's overseas direct investment rose 12.1 percent on-year in the first half of this year, fueled by local businesses' efforts to strengthen their presence in the United States and some Southeast Asian countries, government data showed Tuesday.  Companies invested a combined $17.45 billion abroad in the January-June period, compared with $15.57 billion a year earlier, according to the data by the finance ministry. This figure is also larger than $16.67 billion sent abroad in the first si

Aug. 11, 2015

Service-sector recovery still weak despite waning MERS fallout

The recovery pace of the local service industry remains slack though the fallout of the Middle East Respiratory Syndrome outbreak has waned, with the economy facing external risks such as a possible U.S. rate hike, the finance ministry said Tuesday.  The viral disease, first confirmed on May 20, has claimed 36 lives and infected 186 people, although no new cases have been reported since July 4.  In its latest economic report called the Green Book, the ministry said the MERS outbreak is offsettin

Aug. 11, 2015

Policy lenders struggle with mounting bad loans

South Korea's two policy lenders have shouldered massive bad loans, estimated at 5.5 trillion won ($4.75 billion), over the past five years, due to a series of collapses of big name companies during the economic slump, a report said Tuesday.  The Korea Development Bank and the Export-Import Bank of Korea have extended loans to 333 companies that have been under court receivership over the last five years, according to the report submitted by the banks to the parliament.  In general, a bank can c

Aug. 11, 2015

S. Korea's GDP surges 31,000-fold since 1953: data

South Korea's gross domestic product has surged 31,000-fold since 1953, fueled by exports and competitiveness in heavy industries and consumer electronics, government data showed Monday.  According to the data by Statistics Korea, the country's nominal gross domestic product shot up from a mere 47.7 billion won ($40.9 million) in 1953, soaring to 1,485 trillion won last year. The data highlights the achievements made by Asia's fourth-largest economy 70 years after being liberated from Japanese c

Aug. 10, 2015

Sales of S. Korean firms in China worsen in Q2

Sales of South Korean companies in China continued to deteriorate in the second quarter due largely to a dip in demand for their products, a survey showed Monday, apparently reflecting worsening economic conditions there.  According to the Korea Institute for Industrial Economics and Trade, the business survey index  for sales of South Korean firms in China in the second quarter came to 66, down from 81 in the first quarter.  A BSI reading below 100 indicates that pessimists outnumber optimists.

Aug. 10, 2015

S. Korean exports to China to continue shrinking in Q3

South Korea's exports to China will likely continue to shrink in the third quarter of this year, due partly to a slowdown in the world's second-largest economy, a report said Monday.  "Due to a slump in China's manufacturing sector and worsening consumer sentiments caused by unstable stock market conditions there, the country's exports (to China) will likely continue to drop in the third quarter," said the report from the Korea International Trade Association.  Poor exports by China's manufactur

Aug. 10, 2015

Foreigners continue net buying of S. Korean stocks

Foreign investors remained net buyers of South Korean stocks in the first seven months of this year on the back of a modest rise in the country's benchmark index, data showed Monday.  Foreigners purchased a net $5.8 billion in the benchmark KOSPI and secondary KOSDAQ markets in the January-July period, maintaining their net-buy position for a fourth year, according to the data compiled by the Korea Exchange, the country's bourse operator.  They have snapped up a net $32.6 billion since 2012, shi

Aug. 10, 2015

Number of self-employed falls to 20-year low

The number of self-employed workers in South Korea fell to its lowest level in 20 years in the first half of the year, in the wake of a protracted economic slowdown.The outbreak of the Middle East respiratory syndrome between May and June, which seriously damaged consumer sentiment, is estimated to have fueled the shutdown of more self-employed individuals.According to Statistics Korea, the number of self-employed people who have no employees stood at 3.975 million as of June 2015, down 107,000

Aug. 9, 2015

Low wages, poor working conditions prompt Air Force pilot exodus: studies

Low wages and poor working conditions are pushing a growing number of Air Force pilots out the door, studies showed Sunday.According to the Air Force, 127 pilots left the military last year, up from 124 in 2013 and 113 in 2012.It said the majority of those were lieutenants and majors, costing the Air Force much-needed experience and veteran leadership.Their departures have also hurt financially. The Air Force estimates that it can cost anywhere between 12 billion won and 15 billion won ($10.3 mi

Aug. 9, 2015

S. Korea's home transactions surge to record high in July

South Korea's home transactions surged to a new monthly high in July, the government said Sunday, pointing to a strong recovery in the real estate market.The number of home transactions came to 110,675 last month, up 43.2 percent from the same month last year, according to the Ministry of Land, Infrastructure and Transport.The July figure is the largest number since the government began compiling such data in 2006."The number of home transactions has breached the 100,000 mark every month since M

Aug. 9, 2015

Seoul shares end lower on U.S. rate, China woes

South Korean stocks closed lower Friday as investor sentiment was dented by prolonged uncertainty over a U.S. interest rate hike and China's economic slowdown, analysts said. The local currency fell against the U.S. dollar.  The benchmark Korea Composite Stock Price Index  fell 0.15 percent, or 3.06 points, to 2,010.23. Trading volume was moderate at 329.75 million shares worth 4.65 trillion won ($3.98 billion), with losers outpacing gainers 422 to 380.  Analysts said the stock market was weighe

Aug. 7, 2015