BOK cuts 2015 growth forecast for Korean economy

South Korea's central bank on Thursday downgraded its economic growth forecast for 2015, citing the weaker-than-expected recovery pace of Asia's fourth-largest economy.  After freezing the key interest rate at a monthly policy meeting, the Bank of Korea cut its growth forecast for this year to 3.1 percent from an earlier 3.4 percent estimate.  It is the central bank's second revision of the growth prediction in three months. In January, the BOK lowered its growth forecast to 3.4 percent from 3.8

April 9, 2015

S. Korean banks on lookout for overseas markets

South Korean banks are turning their eyes to overseas markets in a bid to seek new profit sources amid a low interest rate trend, data showed Thursday.  Nonghyup Bank, the banking extension of the National Agricultural Cooperative Federation, said it will open a new overseas operation in India later this year, and is planning to open offices in Hong Kong, Cambodia and the United Arab Emirates in the near future. It already has offices in New York, Beijing and Hanoi.  The country's fourth-largest

April 9, 2015

Household lending growth picks up in March

Household loan growth at South Korean lenders accelerated in March from a month earlier on a surge in property transactions and solid demand for loans following a March 12 rate cut, central bank data showed Wednesday.  Household loans, which include mortgage lending, extended by local lenders reached 570.6 trillion won ($521.1 billion) as of the end of last month, gaining 4.6 trillion won on-month compared with a 3.7 trillion won gain in February, the preliminary data from the Bank of Korea show

April 8, 2015

Slowing growth, less demand cited as major concern for biz outlooks: survey

A majority of trade associations in South Korea cited a possible decline in demand caused by slowing economic growth as a reason for concern in their business outlooks this year, a survey showed Wednesday.  According to the survey by the Federation of Korean Industries of 31 business associations representing each sector including steel, automobiles and semiconductors, 23 groups or 74.2 percent said the economic slump and a possible decline in demand are major concerns this year.   Of those surv

April 8, 2015

Iran nuke deal positive for S. Korean firms: finance minister

A landmark deal on limiting Iran's nuclear program is expected to help South Korean companies make inroads into the key Middle Eastern market, Seoul's economic czar said Tuesday.  The remarks come as a deal can effectively lift the economic sanctions placed on Iran by the global community. Such measures have hurt two-way trade with the populous, oil-rich country.     Chairing a meeting of economy-related ministers in Seoul, Finance Minister Choi Kyung-hwan said the provisional agreement, reached

April 7, 2015

Male shoppers on rise in Korean department stores

The portion of men shopping at department stores in South Korea is trending higher, which could make up for a loss of female shoppers who are increasingly turning to online and mobile shopping, data showed Tuesday.  Male customers at nationwide branches of Lotte Department Store, the country's biggest department store operator, represented 27 percent of shoppers this year, up 4 percentage points from the same period five years ago, according to company data.  The data also showed that the latest

April 7, 2015

Gov't approves foreign investment promotion bill

The government Tuesday endorsed a bill lifting restrictions on foreign investment in reclaimed land in the country's southwestern region.  The bill exempts foreign enterprises in the Saemangeum area from requirements to hire people with disabilities, veterans and senior citizens.  These businesses also would be qualified to give unpaid vacations to their employees and hire short-term laborers for a longer period of time in wider sectors than usual.  The bill also simplifies the registration proc

April 7, 2015

S. Korea's economy shows signs of modest recovery: KDI

South Korea's economy is showing signs of a modest recovery, despite overall economic conditions remaining weak, a state-run think tank said Monday.In its latest report on the economy, the Korea Development Institute said that facility and construction investment have picked up from recent slowdowns on a year-on-year basis.On top of such trends, falling oil prices and interest rate cuts are exerting a positive impact on the economy as a whole, it added."Production-related indicators remain slugg

April 6, 2015

S. Korean economy faces crossroads between rebound, slump

The South Korean economy is at a crossroads as the current quarter is likely to determine whether it makes a full-fledged recovery or remains mired in a protracted slump, local observers said Monday.Should ongoing efforts to overhaul the pension program for government employees and the labor market make headway, there is a good chance that things will turn around for Asia's fourth-largest economy.However, the economy could lose momentum and suffer difficulties in making a recovery if the country

April 6, 2015

Export contribution to S. Korea's growth hits 5-year low

The contribution of exports to South Korea's economic growth fell to a five-year low in 2014 as outbound shipments were hurt by a slower than expected global recovery, central bank data showed Thursday.According to data by the Bank of Korea, of South Korea's 3.3 percent economic growth last year, 1.5 percentage points resulted from overseas shipments of goods and services.This translates into a contribution rate of 45.5 percent, the lowest since 2009 when numbers reached minus 28.6 percent as th

April 2, 2015

S. Korea's toy imports jump 20.4 pct in five years: data

South Korea's toy imports have increased at an annual average rate of 20.4 percent over the past five years, government data showed Wednesday.The increase pushed up imports volume to $637 million last year, from $303 million tallied five years earlier, according to the data by the Korea Customs Service.Local demand for "recreational toys," such as musical instruments for kids, puzzles and toys that require assembly, surged 19.7 percent over the cited period, with the import of dolls and figurine

April 1, 2015

Prime minister vows to cut tax waste

Prime Minister Lee Wan-koo said Wednesday he will conduct a thorough check on government spending to ensure that taxpayer money is not wasted.Lee said the government should monitor whether its spending is wasteful or redundant instead of focusing on setting the budget."It's our duty to our citizens," he said at a policy meeting in Seoul.Lee added that the government would be able to save about 3 trillion won ($2.7 billion) if local governments joined in the effort. (Yonhap)

April 1, 2015

S. Korea's trade surplus widens to record high on shrinking imports

South Korea's trade surplus reached a new monthly high in March despite a fall in exports as imports shrank at a faster rate, the government said Wednesday.The country's overall exports came to US$46.99 billion last month, down 4.2 percent from the same month last year, according to the Ministry of Trade, Industry and Energy.Imports plunged 15.3 percent on-year to $38.6 billion.The country posted a trade surplus of $8.39 billion. March marked the 38th consecutive month of surplus.The drop in exp

April 1, 2015

S. Korea's consumer prices edge up 0.4 pct on-year in March

South Korea's consumer prices gained at the slowest pace in nearly 16 years in March, a government report showed Wednesday, signaling that the economy remains gripped by flaccid private consumption.The consumer price index inched up 0.4 percent in March from a year earlier, compared with a 0.5 percent on-year gain in February, according to the report by Statistics Korea. It is the fourth month in a row that consumer inflation has grown below the 1 percent mark, well below the government's 2 perc

April 1, 2015

S. Korea weighing when and how to join TPP: official

South Korea is weighing when and how to participate in a U.S.-led multilateral free trade agreement, known as the Trans Pacific Partnership, though its final decision has yet to be made, a senior trade official said Tuesday.The move comes as the ongoing negotiations for the TPP are approaching an apparent end, according to Deputy Trade Minister Woo Tae-hee."The government plans to hold a fresh round of bilateral talks with other participating countries if necessary as the recent dialogue between

March 31, 2015

Tax revenues up in 2014 on strict checks on imported goods prices

Stringent monitoring of prices for imported flowers, farm and fishery products contributed to 81.1 billion won ($73.2 million) in more taxes being collected in 2014, the Korea Customs Service said Tuesday.The agency said measures to carefully cross-check actual prices of products sold abroad with claims made by importers who bring these goods into the country, resulted in more duties being collected.The prices checked were for flowers, pickled radishes, dried pollack, eel, small octopuses, spoon

March 31, 2015