MERS fallout seen to have tapered off: BOK governor

The chief of South Korea's central bank on Wednesday said the adverse impact of Middle East Respiratory Syndrome on domestic demand appears to have fizzled out one month after its first outbreak in Asia's fourth-largest economy."Some weekly consumption-related indicators showed that while figures have slipped on an on-year basis, the extent of the fall has declined from the first and second week of the outbreak, which is why we are hoping the impact is weakening," Bank of Korea Gov. Lee Ju-yeol

June 24, 2015

Heavy household debt poses risk to S. Korea: Fitch

Heavy and rising household debt poses a potential risk to South Korea's economy as a sharp rise in defaults could disrupt its financial stability, global credit appraiser Fitch Ratings said Tuesday. The falling debt level among government and state enterprises is positive for the nation's credit prospects, but a sharp pick-up in defaults among households could wreak havoc on its economy, according to the credit appraiser."Korea's sovereign ratings are underpinned by moderate public indebtedness

June 23, 2015

S. Korea's tax revenue rises on more corporate taxes

South Korea's tax revenue rose in the first four months of 2015 from a year earlier, helped by more taxes collected from businesses, the government said Tuesday.The finance ministry said it collected 78.8 trillion won ($71.5 billion) in taxes in the January-April period, up 4.3 trillion won from the same period a year earlier.The Monthly Public Finance report attributed the increase to more corporate taxes collected in the four-month period vis-a-vis the year before, with income taxes also risin

June 23, 2015

S. Korea's savings rate hits 17-year high in Q1

South Korea's savings rate hit a 17-year high in the first quarter of this year, weakening consumption that has been cited for sluggish economic growth, official data showed Tuesday.The national savings rate, which subtracts all consumption costs and expenditures from the gross national disposable income, stood at 36.5 percent in the January-March period, up 1.5 percentage points from 35 percent a year earlier, according to the data by the government and the Bank of Korea.The savings rate, which

June 23, 2015

Gov't mulling economy-boosting steps, including extra budget: finance minister

The government is considering a package of measures to prop up weak economic growth, including drawing up a supplementary budget, the top economic policy maker said Monday.Speaking at a National Assembly interpellation session in Seoul, Choi Kyung-hwan said that the Middle East Respiratory Syndrome outbreak has exerted a considerable negative impact on the economy though the exact fallout has yet to be determined."There is a need to check various details and developments in regards to the supple

June 22, 2015

S. Korean exports to drop 3.1 pct in 2015: think tank

South Korea's exports are expected to contract some 3 percent on-year in 2015 due to slowing global trade and falling oil prices, a state-run think tank forecast Monday.The Korea Institute for Industrial Economics and Trade also predicted that Asia's fourth-largest economy will grow 2.9 percent this year from 2014 as an export slump eases and domestic demand posts modest growth in the second quarter.In its latest report on the economy, KIET said South Korea's outbound shipments will reach $555.1

June 22, 2015

Import farm prices gain 5.6 pct in May

Prices of imported farm products rose more than 5 percent on-month in May mainly due to a rise in international grain and vegetable costs, government data showed Monday.According to the data by the Korea Customs Service, the price index for imported farm produce stood at 100.4 last month, a gain of 5.6 percent from 95.1 tallied the month before but down 6.1 percent from a year earlier. April's number was the lowest reading since 89.9 reached in December 2007. The service said the gain was helped

June 22, 2015

Bank loans to households, firms soar amid low rates

Bank lending to households and businesses in South Korea has been rising at a fast clip over the past year as interest rates remain persistently low, central bank data showed Sunday.  Outstanding bank loans to household and corporate borrowers came to 1,302.4 trillion ($1.19 trillion) as of last Monday, up more than 100 trillion won from the start of August last year, according to the data by the Bank of Korea.  Bank lending to companies stood at some 700 trillion won, with the remainder owed by

June 21, 2015

Household savings growth lowest since 2007 financial crisis

South Korean households' savings grew at the slowest pace in almost eight years in 2015 as South Koreans struggle to meet spending commitments and sought after investment vehicles offering higher returns amid low interest rates, data showed Sunday.  Households' deposits at banks stood at 547.74 trillion won ($494 billion) at the end of April, up 5.1 percent, or 26.55 trillion won, from a year earlier, according to the data compiled by the Bank of Korea.  Of the tallied, savings deposits, which e

June 21, 2015

S. Korea to focus on reviving economic growth: finance minister

South Korea will place its top policy priority on putting the economy back on the path of recovery, the finance minister said Friday, amid escalating concern over the fallout of the Middle East Respiratory Syndrome outbreak on growth.In a meeting with the heads of the country's leading economic think tanks in Seoul, Choi Kyung-hwan also said  the government will come up with "sufficient" measures to prop up economic recovery if necessary.Since the first outbreak was confirmed on May 20, MERS has

June 19, 2015

Producer prices fall for 10th month in May

South Korea's producer prices declined on-year for the tenth straight month in May in tandem with lower oil prices, data showed Friday.The producer price index, a barometer of future consumer inflation, reached 101.87 in May, falling 3.5 percent from a year earlier, according to the preliminary data from the Bank of Korea. The May reading gained 0.1 percent from a revised 101.76 in April.The on-year fall was attributed to weak oil prices.Prices of coal and petroleum products slumped 28.8 percent

June 19, 2015

Seoul shares up 0.34 pct on dovish note from FOMC

South Korean stocks ended 0.34 percent higher Thursday as the U.S. Federal Open Market Committee's dovish stance helped to soothe investor concerns over an early rate hike, analysts said. The local currency gained ground against the greenback.The benchmark Korea Composite Stock Price Index moved up 7.02 points to 2,041.88. Trading volume was low at 381.13 million shares worth 5.24 trillion won ($4.73 billion), with gainers beating decliners 443 to 378. Analysts said the relatively dovish stance

June 18, 2015

BOK to offer soft loans to MERS-hit biz sectors

South Korea's central bank said Thursday that it will offer 650 billion won ($587 million) in soft loans to business sectors hit hard by the outbreak of Middle East Respiratory Syndrome. Since the report of the first case on May 20, MERS has claimed 23 lives and infected 165 people, with more than 6,700 others put under quarantine. Local think tanks and foreign investment banks have warned the outbreak will adversely affect some sectors and hurt overall economic growth.The Bank of Korea said sup

June 18, 2015

MERS outbreak negative for S. Korea's credit: Moody's

The outbreak of Middle East Respiratory Syndrome in South Korea is negative for the country's credit rating as the contagious disease has dampened consumer sentiment in Asia's fourth-largest economy, Moody's Investors Service said Thursday.South Korea on Thursday reported three more deaths, bringing the death toll to 23. Confirmed cases stood at 16, with more than 6,700 people in isolation for possible infection after coming in close contact with MERS patients."The spread of the illness is credi

June 18, 2015

MERS clouds Q2 corporate earnings outlook

in South Korea is making a big dent on local companies, in particular domestic-focused players, with their second-quarter earnings estimates drastically cut, data showed Thursday. The operating income estimate for 224 listed firms inched down 0.4 percent as of Thursday compared to May 20, when the first case of MERS was reported in Asia's fourth-largest economy, according to data compiled by the corporate researcher FnGuide.Among 101 companies whose profits mostly rely on domestic consumption su

June 18, 2015

U.S. rate freeze seen to have limited impact on S. Korea

The U.S. Federal Reserve's decision to stand pat on its key interest rate is in line with market expectations and will have a limited impact on South Korea's financial sector, the government said Thursday.Officials attending a macroeconomic and financial policy meeting in Seoul chaired by Vice Finance Minister Joo Hyung-hwan said that while the Federal Open Market Committee adjusted growth estimates, it signaled the economy remained on track for an interest rate hike this year."With the U.S. Fed

June 18, 2015

Heads of 3 public firms face dismissal for lax management

Three state-funded corporation chiefs are facing dismissal and three others received a regulatory warning for negligent management, the Finance Ministry said Wednesday.In its announcement of the result of the 2014 assessment of 116 government agencies and public firms, the ministry said it has asked President Park Geun-hye to lay off two chiefs.They are Korea Resources Corp. president Koh Jung-sik and Korea Midland Power CEO Choi Pyeong-rak, both of whom took office in 2012 during the Lee Myung-

June 17, 2015

BOK chief hints at downgrade of growth forecast

The chief of South Korea's central bank on Wednesday hinted at lowering its 2015 growth estimate as downside risks have increased due to the expanding Middle East Respiratory Syndrome outbreak.When questioned by lawmakers on the chances of trimming the Bank of Korea's 3.1 percent growth outlook, BOK Gov. Lee Ju-yeol said such a scenario is possible "under the current circumstances, if other factors do not occur."The central bank is set to announce its revised economic outlook on July 9, when it

June 17, 2015