S. Korea's household credit hits fresh high in Q1

Household credit in South Korea soared to an all-time high in the first quarter, data showed Wednesday, adding to growing concerns over the country's already fast-growing household debt.Household credit totaled 1,099.3 trillion won ($992.1 billion) as of end-March, up 11.6 trillion won from a revised 1,087.7 trillion won at the end of last year, according to the data compiled by the Bank of Korea.Household credit refers to credit purchases and loans extended by financial institutions, including

May 27, 2015

S. Korea's export slowdown expected to last till Q3: BOK

South Korea's outbound shipments, a main growth engine for Asia's fourth-largest economy, are likely to remain weak into the third quarter largely due to slowing growth in China and unfavorable currency circumstances, a central bank report forecast Wednesday."A fall in prices of key export products, weakening price competitiveness stemming from a weakening yen and euro as well as slowing growth in China are likely to limit export growth," the report by the Bank of Korea said.The regional economi

May 27, 2015

S. Korea's seaport cargo shrinks 0.6 pct on-year in April

Cargo processed at South Korean seaports inched down from a year earlier last month, the government said Wednesday, apparently reflecting a recent drop in the country's exports.In April, cargo handled at the country's seaports came to 117.68 million tons, down 0.6 percent from the same month last year, according to the Ministry of Oceans and Fisheries.The drop was caused by a fall in both trade and domestic cargo.Import-export cargo slipped 0.25 percent on-year to 97.91 million tons last month w

May 27, 2015

Import farm price index hits 7-year low in April

Prices of imported farm products hit the lowest level in more than seven years in April mainly due to a drop in international grain and vegetable costs, government data showed Wednesday.According to the data by the Korea Customs Service, the price index for imported farm produce stood at 95.1, down 1.9 percent from 96.9 the month before and 98.1 tallied a year earlier.It was the lowest reading since 89.9 reached in December 2007. The service said the drop was mostly due to weaker prices for key

May 27, 2015

Korean investments in foreign securities hit 7-year high in Q1

The value of foreign securities held by South Korean institutions soared to the highest level in more than seven years as major local asset managers and insurers beefed up their buying of foreign assets and overseas stock markets continued to rise, data showed Wednesday.The outstanding value of foreign securities held by local institutional investors reached US$105.7 billion as of the end of March, the highest level since the $116.5 billion in the second quarter of 2007, according to the prelimi

May 27, 2015

S. Korean banks' loan delinquency rate rises in April

The delinquency rate of loans extended by South Korean banks rose in April from a month earlier due to a rise in fresh bad loans, the financial watchdog said Wednesday.The average delinquency rate of bank loans stood at 0.76 percent at the end of April, up 0.07 percentage point from a month earlier, according to the Financial Supervisory Service.From a year earlier, the figure dropped 0.15 percentage point from 0.91 percent, it added.Loans with both the principal and interest overdue by one mont

May 27, 2015

S. Korea pledges $600 mln for Asian infrastructure projects

South Korea on Tuesday signed a deal with the Asian Development Bank to provide $600 million in soft loans for major development projects in Asia over the next three years, the finance ministry said Tuesday.The memorandum of understanding, signed in Seoul between Finance Minister Choi Kyung-hwan and ADB President Takehiko Nakao, makes it possible to tap Seoul's Economic Development Cooperation Fund to finance infrastructure projects, the ministry said.The EDCF is a state-run fund launched in 198

May 26, 2015

S. Korea's terms of trade rise for 8th month in April

South Korea's terms of trade improved for an eighth straight month in April as lower oil prices worked to drag down import prices more sharply compared with the fall in export prices, data showed Tuesday.The country's net terms-of-trade index for goods climbed 11.7 percent on-year to 99.56 last month, slightly picking up from 11.3 percent on-year growth in March, according to the preliminary data by the Bank of Korea.The index gauges the quantity of imports that can be purchased through the sale

May 26, 2015

S. Korean Cabinet OKs free trade deal with China

South Korea's Cabinet approved a free trade agreement with China, an official said Tuesday, the latest in a series of steps toward implementation of the pact.The endorsement was made in a Cabinet meeting presided over by President Park Geun-hye, said presidential spokesman Min Kyung-wook.The move came three months after the two neighbors initialed the deal that could help boost Seoul's trade with the world's second-largest economy.South Korea hopes to sign the deal with China in June. The deal i

May 26, 2015

Margin debt ratio on KOSDAQ hits record high

Stock purchases on credit reached an all-time high on South Korea's secondary bourse this month as more investors borrowed money from brokers to bet on the booming market, data showed Tuesday, raising concerns over potential price fluctuations.Margin lending amounted to 3.97 trillion won ($3.64 billion) as of Wednesday, or 3.5 percent of the total capitalization of freely traded stocks on the tech-laden KOSDAQ, the Korea Financial Investment Association said.The margin loan rate was 3.1 percent

May 26, 2015

S. Korea, Uzbekistan discuss biz cooperation

South Korea and Uzbekistan held a business forum in Seoul on Tuesday to discuss ways to expand bilateral economic and corporate cooperation.The forum, jointly hosted by the two government and state-run trade promotion agencies, was attended by about 200 businesspeople and high-ranking government officials of the two countries, including Deputy Prime Minister Choi Kyung-hwan and his Uzbek counterpart, Rustam Azimov.The gathering was held ahead of Uzbek President Islam Karimov's visit to Seoul sch

May 26, 2015

BOK chief voices concern over bleak export outlook

The chief of South Korea's central bank on Tuesday expressed worries over the country's sluggish exports, saying they are unlikely to rebound for the time being due to "factors that cannot be resolved in the short term.""Exports have fallen for four straight months this year and data showed that the trend is continuing into May," Bank of Korea Gov. Lee Ju-yeol said ahead of a meeting with economic professors and researchers.While noting that sluggish global demand and low oil prices are factors

May 26, 2015

S. Korean consumer sentiment hits 7-month high in May

Consumer sentiment in South Korea improved to the highest level in seven months in May, central bank data showed Tuesday, in the latest sign of recovering domestic demand.The overall consumer sentiment index reached 105 in May, up from 104 in April and gaining for two months in a row, according to the Bank of Korea. A reading higher than 100 indicates that optimists outnumber pessimists.After dropping sharply in the aftermath of the deadly ferry sinking in May last year, the monthly index has be

May 26, 2015

S. Korea expects to hold about 3.5 pct stake in China-led AIIB

South Korea expects to hold a stake of about 3.5 percent in the China-led Asian Infrastructure Investment Bank, a delegate attending last week's meeting of the AIIB's founding members said Monday. Senior officials from the 57 founding-member nations of the AIIB held the latest round of talks in Singapore last week during which they agreed on the charter of the new regional lender. The AIIB is seen as a potential counterbalance to U.S.-led multilateral lenders such as the Asian Development Bank a

May 25, 2015

Listed firms pay 2 tln won in retirement allowance in 2014

South Korea's 10 biggest companies by assets paid more than 2 trillion won ($1.83 billion) in retirement allowance last year as they underwent tough restructuring amid a protracted economic slump, industry data showed Monday.The conglomerates' 97 listed affiliates paid a combined 2.1 trillion won in retirement benefits in 2014, up 33.3 percent from 1.6 trillion won the previous year, according to the data compiled by corporate tracker Chaebul.com.Their administrative costs, referring to expenses

May 25, 2015

Recovering real estate market pushes up credit card spending on furniture

South Korea's credit card spending on furniture rose sharply in the first two months of this year on the back of a rise in home transactions as the local property market has been on a clear recovery track, data showed Monday.According to the data compiled by the Bank of Korea, South Korean people bought 124.4 billion won ($114.1 million) worth of furniture by credit card in January, up 40.5 percent from a year earlier.In February, the figure rose 34.8 percent on-year to 121.6 billion won, added

May 25, 2015

Korea’s elderly poverty rate tops OECD

South Korea recorded the highest poverty rate for elderly citizens among 34 members of the Organization for Economic Cooperation and Development, a report from the Paris-based organization showed Friday.According to the report, 49.6 percent of senior Koreans aged 65 or more were found to have lived below the poverty line as of 2012. The number far exceeded the OECD average of 12.6 percent to top the list in elderly poverty rate.Over the past few years, a contributing factor to elderly poverty in

May 22, 2015

Monthly household income grows 2.6 pct in Q1

The monthly income of South Korean households increased 2.6 percent on-year in the first quarter thanks to more employment and increased wages, a government report showed Friday.The monthly income of households consisting of two members or more averaged 4.51 million won ($4,131) in the January-March period, according to the report by Statistics Korea. When adjusted for inflation, income increased 2 percent.The growth rate accelerated from a 2.4 percent gain reached in the final quarter of last y

May 22, 2015

S. Korea, ASEAN to expand customs cooperation to fuel trade

South Korea and the Association of Southeast Asian Nations have agreed to expand customs-related cooperation to fuel trade, the government said Friday.  The Korea Customs Service said the understanding was reached at the 11th annual meeting of South Korea-ASEAN customs chiefs in Brunei on Thursday.   The 10-member economic bloc represents the second-largest export market for locally made goods after China, but companies taking full advantage of the free trade agreement reached in 2005 stood at j

May 22, 2015

BOK chief voices concern on young unemployment

South Korea's top central banker on Friday raised worries over bleak job market prospects for the younger generation in the coming years as the country is ready to extend the retirement age to 60 next year, echoing recent policy efforts aimed at revving up structural reform.  "Employment is a big issue. As many people point out, it's true that unemployment will become a serious issue over the next 2-3 years when the retirement age is extended to 60 starting next year," Bank of Korea Gov. Lee Ju-

May 22, 2015