Think tank cuts 2015 growth forecast to 2.8 pct

A major South Korean think tank on Wednesday projected Asia's fourth-largest economy to grow 2.8 percent this year, down from its earlier forecast of 3.7 percent, citing the stuttering economy from a slump in exports and the unexpected outbreak of Middle East Respiratory Syndrome.Exports, the country's key growth engine, were forecast to grow 2.3 percent, slowing from a 2.8 percent increase in 2014, as unfavorable currency circumstances and weakening growth in China offset economic recovery in a

June 17, 2015

Foreigners turn to net sellers in S. Korea this month

Foreign investors have turned to net sellers of South Korean stocks in June on concerns over a looming interest rate hike in the U.S. and continued Greek debt standoffs, data showed Thursday.Offshore investors sold a net 859.6 billion won ($769.6million) in the main KOSPI market for seven trading days starting June 8, according to the data compiled by the Korea Exchange, the main bourse operator. They dumped a net 311.1 billion won worth of shares Tuesday, marking the biggest selling in five mon

June 17, 2015

Moody's cuts POSCO unit's credit outlook to 'negative'

Global credit appraiser Moody's Investors Service Inc. said Tuesday it has revised down the credit outlook for the construction unit of South Korean steelmaker POSCO to "negative" from "stable," citing its weak financial condition.The outlook revision for POSCO Engineering & Construction Co. is attributable to a forecast that its profitability and financial health will likely remain vulnerable for the next one to two years, the global appraiser added. POSCO E&C's EBITDA, or earnings before inter

June 16, 2015

MERS to cut Korea's growth by 0.3 percentage point: report

The outbreak of Middle East Respiratory Syndrome is likely to shave 0.3 percentage point off South Korea's 2015 economic growth as households scale back spending and foreign tourists cancel their visits, a report said Tuesday.Since the first case was confirmed on May 20, the viral disease has claimed 19 lives, sparking a serious health scare and fueling concerns it could negatively impact Asia's fourth-largest economy struggling with weak domestic demand and slumping exports."We now believe that

June 16, 2015

Gov't to focus on expanding exports in H2: official

The government will put the top priority of its second-half economic policy on kick-starting slumping exports and bringing the Middle East Respiratory Syndrome outbreak under control at an early date, a ranking official said Tuesday.South Korea remains gripped by the sluggishness of exports, a key growth engine. Since its outbreak on May 20, the viral disease has claimed 19 lives and sickened 154 people, throwing cold water on consumer spending that has begun to show signs of recovery."The gover

June 16, 2015

S. Korea's recovery slower than major economies: report

South Korea's macroeconomic conditions have been recovering at a slower pace than other major countries since the global financial crisis in the late 2000s, a think tank said Tuesday. According to a report by the Korea Economic Research Institute, growth rates for seven out of eight key macroeconomic indicators for South Korea have slowed compared with the years before the financial crisis in 2009. The think tank analyzed such indicators related to gross domestic product, private spending, unemp

June 16, 2015

BOK may further cut rate if MERS worsens: Goldman Sachs

The Bank of Korea may further cut the key interest rate this year if the Middle East Respiratory Syndrome situation worsens in Asia's fourth-largest economy, a global investment bank said Monday.Since the first case was confirmed on May 20, South Korea has reported 150 MERS infections, the biggest outbreak outside of Saudi Arabia where the respiratory illness was first reported in 2012. As of Monday, 16 people have died and thousands have been put in quarantine.In a report to investors, Goldman

June 15, 2015

MERS outbreak fueling economic uncertainty: finance minister

The outbreak of Middle East Respiratory Syndrome in South Korea is fueling economic uncertainty at a time when private spending is just showing signs of recovery, the top economic policymaker said Monday.Speaking to lawmakers at the National Assembly in Seoul, Choi Kyung-hwan said while the spread of the respiratory illness has not seriously impacted the economy as a whole for now, it has the potential to pose downside risks if the situation drags on. After the first case was confirmed on May 20

June 15, 2015

S. Korea logs trade surplus for 40th straight month in May

South Korea posted a trade surplus for the 40th month in a row in May as imports dropped at a faster pace than exports, customs data showed Monday.According to the data by the Korea Customs Service, the country's trade surplus reached US$6.3 billion last month, down from $8.53 billion in April, but significantly higher than $4.97 billion a year earlier.Exports dropped 10.9 percent on-year to $42.36 billion in May, while imports nosedived 15.4 percent to $36.06 billion. In May 2014, exports hit $

June 15, 2015

BOK to keep accommodative stance: BOK chief

Bank of Korea Gov. Lee Ju-yeol said Friday that the central bank plans to sustain its accommodative monetary policy stance in the second half of the year if economic recovery remains lackluster.  "(The BOK) will likely proceed in the direction of sustaining its accommodative stance as it is difficult to be positive about domestic economic recovery," the top central banker said in a speech marking the BOK's 65th anniversary. "Policy circumstances may rapidly change due to factors such as a possib

June 12, 2015

Full text of BOK's statement on monetary policy decision for June

Following is a translation of the full text of the Bank of Korea's statement Thursday on its monetary policy decision for June. The central bank's monetary policy committee voted to lower the base rate by a quarter percentage point to a record low of 1.5 percent.  The Monetary Policy Committee of the Bank of Korea decided today to lower the Base Rate by 25 basis points, from 1.75% to 1.50%.  Based on currently available information the Committee considers that the US appears to be emerging from

June 11, 2015

Pork imports jump in April on FMD outbreak: data

South Korea's pork imports surged in April from a year earlier as a foot-and-mouth disease outbreak affected domestic supply, government data showed Thursday.  According to the data by the Korea Customs Service, imports reached 39,000 tons in April, up 24.1 percent from 32,000 tons a year earlier. The value of the imports reached $120 million, marking a 21.7 percent on-year increase.  The outbreak, which began in late December and continued into April, led to a decrease in domestic supply, the K

June 11, 2015

S. Korea's money supply grows most in nearly 5 years

South Korea's money supply expanded at the fastest clip in almost five years in April following a surprise rate cut in March and a continued current surplus streak, central bank data showed Wednesday.  The M2 surged 9 percent on-year to 2,149.2 trillion won ($1,915.8 billion) in April, quickening from an 8.3 percent increase in the previous month, according to the Bank of Korea.  The on-year growth is the fastest since July 2010 when the M2 expanded by 9.3 percent.  From a month earlier, the cou

June 10, 2015

Household lending continues to grow in May

Household loans extended by South Korean lenders continued to trend higher in May as borrowers opted to lock in low interest rates for home purchases, central bank data showed Wednesday.  Outstanding household loans extended by local banks reached 586.4 trillion won ($522.7 billion) as of the end of last month, adding 7.3 trillion won from April, according to the Bank of Korea.  The monthly gain was smaller than a record 8.5 trillion won increase in April. The BOK explained that the number of ap

June 10, 2015

S. Korea's jobless rate dips to 3.8 pct in May

South Korea's jobless rate edged down in May as more people were hired in the manufacturing and service sectors, a government report showed Wednesday.   According to the report by Statistics Korea, the jobless rate stood at 3.8 percent last month, down from 3.9 percent in April. The number, however, rose 0.2 percentage point from a year earlier.  The seasonally adjusted jobless rate for May also moved up to 3.9 percent from 3.7 percent tallied in April.  The number of employed people stood at 26

June 10, 2015

S. Korea mulls economy-boosting steps over MERS

South Korea will take economy-boosting measures if necessary in order to deal with the fallout of the outbreak of Middle East Respiratory Syndrome (MERS), the top economic policymaker said Wednesday.  The MERS outbreak, which was first confirmed on May 20, has claimed nine lives and infected more than 100 people so far, sparking concerns it could dampen consumer spending, thus hampering the economy's recovery.  "The government will take supplementary measures to boost the economy when the need a

June 10, 2015