Real value of Korean won hits over 7-year high: data

The real value of the South Korean won against other key currencies hit an over seven-year high in April, data showed Thursday, in a negative development for the country's exports.  The real effective exchange rate of the South Korean won stood at 115.34 points last month, the highest level since the 118.79 reached in February 2008, according to the data by the Bank for International Settlements.  REER, the weighted average of a country's currency relative to a basket of other major currencies,

May 21, 2015

S. Korea, U.S. seek consultation channel on global economic issues

South Korea and the United States are in consultations to create a new diplomatic channel to focus on global economic issues, officials said Wednesday.  "The two sides are in working-level discussions on the need for such a consultation channel," a government official said, asking not to be named.  If established, it would provide a new mechanism for the Foreign Ministry and the U.S. State Department to discuss broader global economic issues, including climate change, he added.  The envisioned c

May 20, 2015

KDI cuts S. Korea's growth forecast to 3 pct

The South Korean economy will likely grow at a slower pace than previously anticipated this year as slumping exports sap its overall recovery, a state-run think tank said Wednesday.  The Korea Development Institute downgraded its growth forecast for Asia's fourth-largest economy to 3 percent this year from an earlier estimate of 3.5 percent.   The latest prediction is lower than the 3.1 percent growth estimated by the Bank of Korea in early April and much lower than the mid-3 percent range being

May 20, 2015

Finance minister urges quick action on key reforms

South Korea may find itself trailing Japan if it continues to delay key reforms that are critical for long-term economic growth, Seoul's top economic policymaker said Wednesday.  Presiding over a meeting of economy-related ministers in Seoul, Choi Kyung-hwan stressed that the country should take stock of Japan's policies for growth by spurring private investment.  Japan is widely viewed as a benchmark for South Korea because economic and social situations in the two neighboring countries are sim

May 20, 2015

Park renews calls for deregulation

President Park Geun-hye called Wednesday for deregulation to create a dynamic business environment in her latest appeal for cutting red tape.  Park made the comment in a forum organized by a local television broadcaster. High-profile participants in the forum included U.N. Secretary General Ban Ki-moon.  Park has been pushing to lift or ease all but core regulations to help reinvigorate South Korea's economy, calling unnecessary business restrictions "our archenemy" and a "cancer." (Yonhap)

May 20, 2015

Park to help build ecosystem for startups

President Park Geun-hye Tuesday pledged to help build an ecosystem that nurtures startups with creative ideas.    "Creative ideas and imaginative power have become the most important economic elements in creating a new market and jobs as the new era of knowledge information has opened up," Park said in a video message to the ceremony marking the 50th anniversary of the Day of Invention.   "The government is making utmost efforts to build the ecosystem for a creative economy so inventors with goo

May 19, 2015

S. Korea approves $279.5 mln loan for emerging economies

South Korea approved the allocation of $279.5 million in soft loans to support four overseas projects aimed at helping emerging economies build up their infrastructure, the finance ministry said Tuesday.  The loans from the Economic Development Cooperation Fund will be offered to the Sapien-Senamnoi hydroelectric project in Laos, the buildup of the public safety management system in Mozambique, resources development on the Len and Hoang Mai rivers in Vietnam and education-related information bui

May 19, 2015

Finance minister urges companies to create decent jobs

Businesses should take a leading role in supporting sustainable development goals by providing decent jobs, investing in environmental protection and combating corruption, South Korea's top economic policymaker said Tuesday.  Speaking at the Korea Leaders Summit hosted by the United Nations Global Compact in Seoul, Choi Kyung-hwan called on companies to move to incorporate key social values and protect the rights of consumers and employees.  "Decent jobs are the best kind of welfare, with a rise

May 19, 2015

POSCO to finalize cooperation deal with Saudi fund

POSCO Co., South Korea's largest steelmaker, likely will sign a comprehensive cooperation deal with South Arabia's sovereign wealth fund next month that includes the sale of a stake in its construction unit, industry sources said Sunday.POSCO was supposed to complete the deal with the Public Investment Fund earlier last month to sell a 38 percent stake in POSCO Engineering & Construction for about $1 billion. The process, however, has been in limbo since the prosecution launched an investigation

May 17, 2015

S. Korea to expand overseas investment amid excessive surplus

South Korea will likely unveil measures to boost its outbound investment to make use of accumulated dollars and reduce possible risks from the excessive current account surplus, government sources said Sunday.In March, South Korea's current account surplus jumped 41.9 percent on-year to $10.39 billion, the 37th consecutive surplus since March 2012. The Bank of Korea earlier projected a record high of $96 billion in the current account surplus for this year mainly thanks to lower crude oil prices

May 17, 2015

Another BOK rate cut still possible: analysts

SEOUL (Yonhap) -- South Korea's central bank may trim its base rate either in June or July due largely to a slowdown inthe recovery pace of Asia's fourth-largest economy, analysts said Saturday.In a widely expected move, the Bank of Korea (BOK) left its benchmark interest rate unchanged at a record low of 1.75 percent for a second straight month in May, citing expectations for an economic recovery and soaring household debt.While sustaining its view that "the economy will show a modest trend of

May 16, 2015

S. Korea pledges US$3 mln to EBRD this year

South Korea pledged to provide US$3 million in funding to the European Bank for Reconstruction and Development (EBRD) this year as part of its effort to help transitional economies, the finance ministry said Friday.   The agreement to inject more money into the Korea-Technical Assistance and Cooperation Fund was reached during Vice Minister Joo Hyung-hwan's visit to Tbilisi, where he took part in the development bank's annual meeting, it said.   "The fund will help projects that can support coun

May 15, 2015

[Weekender] Beer diversity accelerates evolution of drinkers’ flavor

Big brewers’ brands such as Miller, Michelob, Bud Ice and Corona gained great popularity among South Korean “X-generation” twenty-somethings in the early and mid-1990s.The import beers in a 330 (or 355)-milliliter bottle -- served at bars and Korea’s typical, alcohol sales-permitted cafes -- even attracted a large portion of female college students. The products were actively penetrating a niche in the domestic brewery-dominated market through cafes or convenience stores.But the import beer boom

May 15, 2015

Korea urged to focus on ICT infra projects

South Korea’s participation in the Asian Infrastructure Investment Bank will be beneficial if the country focuses on infrastructure-building projects in information and communications technology and other key areas, experts said. A recent report, titled “The Meaning of AIIB and Opportunity for ICT,” published by the KT Center of Business and Economic Studies, said that in order to Korea to benefit from the AIIB, it should focus on investing in ICT. “Investing in ICT in Asia could also pave the w

May 15, 2015

BOK freezes benchmark rate as expected

In a widely expected move, South Korea's central bank on Friday left its benchmark interest rate unchanged for a second straight month in May, citing expectations for an economic recovery and soaring household debt.   In the monthly rate-setting meeting, the Monetary Policy Committee of the Bank of Korea (BOK) decided to hold the base rate steady at a record low of 1.75 percent. One of the seven board members voted for a rate cut.   While sustaining its view that "the economy will show a modest

May 15, 2015