Unemployed 20-somethings hits new high for H1

The number of unemployed South Koreans in their 20s hit a new first-half record, data showed Sunday, adding to concerns over murky employment outlooks for the country's younger generation.There were 410,000 unemployed people aged between 20 and 29 in the January-June period, the highest level since relevant data was compiled by Statistics Korea. The previous record was 402,500 in the first half of 2000.The number of unemployed people in their 20s had hovered in the 330,000 level following the gl

July 26, 2015

S. Korean retailers launch sales to woo shoppers

Massive sale events are in swing at South Korean department stores, hypermarkets and duty-free shops in their latest attempt to win back shoppers as consumer sentiment remains dim following the Middle East Respiratory Syndrome outbreak, market watchers said Sunday.Lotte Department Store, the country's biggest department store chain, opened the "Lotte Black Super Show" at KINTEX, a suburban exhibition center outside of Seoul, on Thursday to slim down its stock of products.Sales in the first three

July 26, 2015

S. Korea's trade projected to hit 5-year low in 2015

South Korea's trade volume is forecast to hit a five-year low this year as a stronger local currency and low oil prices weigh heavily on Asia's fourth-largest economy, data showed Friday.The country's exports reached $268.7 billion in the first six months of the year, down 5.1 percent from a year earlier, while imports fell 15.6 percent on-year to $222.4 billion, according to the data compiled by the Korea Customs Service.As a result, South Korea posted a 10.1 percent drop in total trade volume

July 24, 2015

S. Korean consumer sentiment inches up in July

Consumer sentiment in South Korea rose slightly in July after plummeting to a two-year low on concerns over the Middle East Respiratory Syndrome (MERS) outbreak last month, central bank data showed Friday.  The overall consumer sentiment index reached 100 in July, inching up from 99 in the previous month, according to the Bank of Korea. A reading below 100 indicates that pessimists outnumber optimists.  In June, the index fell below the benchmark level for the first time in more than two years,

July 24, 2015

Park to meet business leaders on creative economy

President Park Geun-hye will hold a meeting with business leaders representing the nation’s 17 conglomerates to discuss ways to expand her creative economy vision on Friday, the presidential office said Thursday.The meeting was planned as she wrapped up her on-site visits Wednesday to 17 technology innovation centers across the country, a policy mission carried out over nearly two years. The centers are the centerpiece of her mantra of the creative economy aimed at nurturing venture companies in

July 23, 2015

Biz lobby urges defenses against activist shareholders

South Korea's top business lobby on Thursday stressed the need for the introduction of teh so-called poison pill and other defensive measures against shareholders seeking to make changes in the companies in which they own a stake.  The call by the Federation of Korean Industries, the lobby group for the country's family-controlled conglomerates, came following a recent controversy over U.S. hedge fund Elliott Associates' opposition to a merger between two key units of Samsung Group.     "We need

July 23, 2015

Korea's economic growth slows on MERS, drought fallout

South Korea's economic growth slowed in the second quarter as the country was hit hard by the outbreak of Middle East Respiratory Syndrome and the worst drought in a century, central bank data showed Thursday.  The economy grew 0.3 percent in the April-June period, decelerating from a 0.8 percent on-quarter expansion three months earlier, according to the preliminary data by the Bank of Korea.  The figure is lower than a 0.4 percent estimate suggested by BOK Gov. Lee Ju-yeol earlier this month b

July 23, 2015

Regulator gives preliminary approval for Hana Bank-KEB merger

South Korea's top financial regulator on Wednesday gave preliminary approval for the merger of two flagship banks of Hana Financial Group Inc., the country's third-largest banking group by assets.  Hana Financial has tried to merge Hana Bank and Korea Exchange Bank  since it acquired KEB from U.S. buyout fund Lone Star in 2012. Its efforts have dragged on for years as the KEB's union had strongly opposed the merger until recently, citing Hana's earlier promise to keep it independent.  The Financ

July 22, 2015

Seoul shares skid 0.91 pct on foreign selloff

South Korean stocks ended 0.91 percent lower Wednesday as foreigners dumped their holdings ahead of an upcoming Fed meeting, analysts said. The Korean won gained against the U.S. dollar after hitting a fresh two-year low in the previous session.  The benchmark Korea Composite Stock Price Index (KOSPI) tumbled 18.89 points to 2,064.73. Trading volume was significantly heavy at 1.1 billion shares worth 6.7 trillion won (US$5.8 billion), with decliners dwarfing gainers 548 to 256.  Wednesday's trad

July 22, 2015

Park vows to support local startups' entry into China

President Park Geun-hye pledged Wednesday to help South Korean startups make inroads into the Chinese market, citing growing consumption in one of the world's fastest growing economies.  China has become South Korea's largest trading partner, overtaking the United States.  The innovation center in Incheon "will support local startups' entry into the Chinese market by putting in place a program designed to strengthen exchange and cooperation with China," Park said as she opened the latest innovat

July 22, 2015

BOK governor voices concern on MERS-hit tourism industry

South Korea's top central banker on Wednesday raised worries that the local tourism industry is unlikely to recover quickly from the impact of the Middle East Respiratory Syndrome (MERS) outbreak, a setback that may hamper growth in Asia's fourth-largest economy.  "The decline in foreign tourists was seen as one of the biggest factors that have lowered second-quarter GDP," Bank of Korea Gov. Lee Ju-yeol said in a regular meeting with economists and economics professors, noting that overseas tour

July 22, 2015

Gov't to spur fixed-rate loans to rein in household debt

South Korea's government said Wednesday it will prod local lenders to extend fixed-rate amortized loans and further scrutinize borrowers' repayment ability as part of efforts to stem a sharp rise in household loans amid a potential U.S. interest rate hike.  The set of measures came as the ballooning household debt can be a bugbear for Asia's fourth-largest economy, which is also facing a double whammy of sagging demand and a slump in outbound shipments.  The amount of the country's household deb

July 22, 2015

S. Korean exports to recover in H2: finance minister

South Korea's exports are expected to bounce back in the second half of this year, which could allow the nation's trade volume to top the $1 trillion mark for a fifth year in 2015, the top economic policymaker said Tuesday.  Speaking at a meeting with foreign news correspondents in Seoul, Finance Minister Choi Kyung-hwan said outbound shipments are on the mend after a poor showing in the first half.  According to government data, exports fell 5.1 percent on-year to $268.7 billion in the January-

July 21, 2015

New regional FTA talks slated for next month in Myanmar

South Korea and 15 other countries will hold a fresh round of talks on a regional free trade agreement in Myanmar next month amid stepped-up efforts to wrap it up by year-end, officials here said Tuesday.  The upcoming round of talks on the Regional Comprehensive Economic Partnership, the ninth of its kind, will be held in Naypyidaw on Aug. 3-7, according to the Ministry of Trade, Industry and Energy.  The RCEP negotiations involve South Korea, Japan, China and all 10 member countries of the Ass

July 21, 2015

Investors pour money into short-term vehicles amid low rates

Investors have growingly shifted their money to short-term financial instruments, such as money market funds, in 2015 as interest rates have hit rock bottom, data showed Tuesday.   Money market funds are short-term debt securities, such as Treasury bills and commercial papers. They are widely considered as safe as bank deposits yet provides a higher return.  The net asset value of MMFs came to 38.23 trillion won ($33.1 billion) as of Thursday, surging 46.4 percent from the end of last year, acco

July 21, 2015

Turnover of derivatives market soars 22 pct in H1

The trading volume of the derivatives market soared in the first half from a year ago, recovering from years of decline on the back of a bullish stock market, the bourse operator said Tuesday.   The derivatives market had 338 trillion contracts in total in the January-June period, up 22 percent from a year ago, the Korea Exchange said.   Among them, KOSPI 200 options that track the nation's 200 largest shares on the main bourse posted a 9.1 percent on-year hike to 1.98 million contracts per day,

July 21, 2015

S. Korea unveils new plan to sell Woori Bank

South Korea announced a fresh plan Tuesday to sell state-run Woori Bank following four previous failures to put the country's third-largest lender into private hands, a state committee said.  The government has been trying to sell its 51.04 percent stake in the bank since 2010 in a bid to recover public funds of some 13 trillion won ($11.3 billion) injected to bail it out following the Asian financial crisis in the late 1990s.     The latest sale plan is its fifth bid as four previous auctions f

July 21, 2015

S. Korea opens mini-sized derivatives market

South Korea opened a mini-sized futures and options market on Monday to offer investors wider choices for hedging and trading, hoping to revitalize the once-vibrant derivatives market with robust liquidity.   The Korea Exchange currently operates futures and options trading based on the KOSPI 200 index, a flagship index composed of the top 200 stocks by market capitalization.   The new system offers contracts for as little as 25 million won ($21,900) and 5 million won for KOSPI 200 futures and K

July 20, 2015

Regulator vows to set up crowdfunding platform

South Korea's top financial regulator will set up a crowdfunding platform to help startups and small venture businesses raise funds and capitalize on their ideas and technologies more easily, its chief said Monday.  Crowdfunding is a type of fundraising that a firm uses to raise capital from a large number of individuals who invest small amounts of money, typically via the Internet. South Korea legalized the online crowdfunding business last week, under which venture startups can raise a maximum

July 20, 2015