S. Korea likely to grow 3.7 pct in 2015: think tank

The South Korean economy will likely grow 3.7 percent next year on the back of improving exports and expanding domestic consumption following a recovery in the United States, a think tank said Monday.   The Korea Institute of Finance (KIF) said in a report that the growth rate will hit 3.6 percent in the first six months and 3.9 percent in the latter half of 2015. The think tank's 2014 growth estimate stood at 3.5 percent.   The KIF's 2015 forecast is lower than the central bank's 3.9 percent pr

Dec. 15, 2014

Average loan total per person rises to nearly 50 mln won

The number of debtors and their credits from local banks are projected to hit record highs this year amid rising household debts, industry data indicated Monday.   Some 10.5 million people took out loans from commercial banks as of the end of June, data showed, for a total amount of 487.7 trillion won (US$442.6 billion). The figure had peaked at 10.45 million people in 2012 and declined to 10.44 million in 2013.   The loan total translates to individual lenders owing 46.41 million won each on av

Dec. 15, 2014

BOK mulls cutting growth forecast as headwinds build

The Bank of Korea will consider cutting its growth forecast for next year after keeping its benchmark interest rate unchanged Thursday while it assesses weakness in the domestic and international economies.“It’s difficult for the Bank of Korea to keep its 3.9 percent growth outlook for 2015,” Gov. Lee Ju-yeol told reporters today in Seoul after the central bank held the policy rate at a four-year low of 2 percent. Lee cited weak consumer and business sentiment in Korea and cuts to economic estim

Dec. 11, 2014

Korean firms’ dividend payouts to be among lowest this year

South Korean firms are expected to keep their dividend payouts low this year, with the portion of their payouts against profit far below that of their global peers, data showed on Wednesday.According to Daewoo Securities Co., who compiled the data, South Korean firms are forecast to log a dividend payout ratio of 13.7 percent this year, compared with Taiwanese rivals’ 43.56 percent and Indian firms’ 21.9 percent. The ratio refers to the percentage of earnings a company gives to shareholders in t

Dec. 10, 2014

Korea to beef up economic cooperation with Eurasia

South Korea will strengthen infrastructure needed to increase economic cooperation with the Eurasian countries that have a great potential to become a major global economic block, the finance minister said Wednesday. “We will work to establish networks required to enhance inter-connectivity in transportation, logistics, ICT and energy within the region, a move aimed at resolving barriers that companies face due to a lack of infrastructure, high logistical costs and investment uncertainty,” Finan

Dec. 10, 2014

Seoul shares plunge 1.3% on China woes

South Korean stocks closed 1.3 percent lower Wednesday, as investors were unnerved by China’s change of regulations in short-term borrowing to curb excessive leveraging, analysts said. The local currency gained ground against the U.S. dollar. The benchmark Korea Composite Stock Price Index slid 25.39 points, or 1.29 percent to finish at 1,945.56. Trading volume was moderate at 358.9 million shares worth 3.81 trillion won ($3.45 billion) with decliners outstripping gainers, 568 to 236. “It’s hard

Dec. 10, 2014

Falling oil prices bring mixed benefits to S. Korea

Plunging oil prices are welcome news for the overall economy of energy-hungry South Korea by giving companies and consumers extra money to spend, but they will come down hard on already-struggling oil refiners and shipbuilders, market watchers said Wednesday. Oil has taken a beating after the Organization of the Petroleum Exporting (OPEC) countries last week decided not to cut output, letting the price slide further. Dubai crude tumbled to $65.33 a barrel on Monday, the lowest level since Septem

Dec. 10, 2014

State think tank cuts growth outlook on sluggish spending, weak exports growth

A major state-run think tank on Wednesday revised down South Korea's 2014 and 2015 growth estimates, citing sluggish domestic demand and exports growth restrained by tough overseas market conditions.The Korea Development Institute (KDI) forecast that the Korean economy will grow 3.4 percent this year, down from 3.7 percent it suggested in May. It cut next year's growth projection from 3.8 percent to 3.5 percent, and said even the target may not be met, given the "growing downside risks." The KDI

Dec. 10, 2014

Home sales in S. Korea grow 7.2 pct on-year in Nov.

Home sales in South Korea expanded in November from a year earlier, with the cumulative sales so far this year reaching an 8-year high, government data showed Wednesday.According to the data provided by the Ministry of Land, Infrastructure and Transport, the number of home transactions stood at 91,050 last month, up 7.2 percent from a year earlier. The figure, however, was down 16.8 percent compared with October when home sales spiked, bolstered by the government's property market stimulus measu

Dec. 10, 2014

S. Korea to beef up economic cooperation with Eurasia

South Korea will strengthen infrastructure needed to increase economic cooperation with the Eurasian countries that have a great potential to become a major global economic block, the finance minister said Wednesday. "We will work to establish networks required to enhance inter-connectivity in transportation, logistics, ICT and energy within the region, a move aimed at resolving barriers that companies face due to a lack of infrastructure, high logistical costs and investment uncertainty," Finan

Dec. 10, 2014

Household loan growth hits record high in October

Household loans extended by South Korean financial institutions grew at a record pace in October as mortgage loans sharply rose, data showed Tuesday, following government measures to jolt the ailing property market.Outstanding household lending by local lenders and non-banking institutions increased 7.8 trillion won ($7 billion) in October from a month earlier to 730.6 trillion won, according to the Bank of Korea.The October growth, compared with a 5.6 trillion won gain in the previous month, ma

Dec. 9, 2014

Sales at department stores, discount chains down in November

Sales at local department stores and discount chains declined for a third straight month in November, adding to worries that private-sector spending is not sturdy enough to support economic recovery, preliminary government data showed Tuesday.According to the data from the finance ministry, department store sales dropped 5.6 percent on-year in November, while discount chain sales shrank 3.9 percent over the same period.This marked the third straight month of decline since September, when they fe

Dec. 9, 2014

S. Korea's ICT exports grow 3.6 pct in Nov.

South Korea's exports of information communication technology (ICT) products rose from a year earlier last month, largely on growing shipments to the United States and China, the government said Tuesday.Outbound shipments of ICT products came to US$15.18 billion in November, up 3.6 percent from the same month last year, according to the Ministry of Trade, Industry and Energy.The November figure marked a 5.5 percent drop from $16.07 billion in the previous month. However, it was a turnaround from

Dec. 9, 2014

Sales at department stores, discount chains down in Nov.: data

Sales at local department stores and discount chains declined for a third straight month in November, adding to worries that private-sector spending is not sturdy enough to support economic recovery, preliminary government data showed Tuesday.According to the data from the finance ministry, department store sales dropped 5.6 percent on-year in November, while discount chain sales shrank 3.9 percent over the same period.This marked the third straight month of decline since September, when they fe

Dec. 9, 2014

Seoul named best place to hold int'l biz meetings for 3rd year

Seoul has been named the best destination for international business meetings by a premier U.S.travel magazine for a third straight year, the municipal government said Tuesday.The honor, one of 60 categories recognized by the Business Traveler magazine every year, went to Seoul for its versatility, city officials said, citing the magazine's editor."Choosing a city in which to hold an event is an important decision, both for the attendees and for the organizations involved," editorial director Da

Dec. 9, 2014

Global DRAM market to expand 16% in 2015

The global market for dynamic random access memory (DRAM) is anticipated to grow 16 percent on-year in 2015, data showed Monday, casting a brighter outlook for South Korea’s two tech giants who dominate nearly 70 percent of the market.According to the data compiled by industry tracker DRAMeXchange, the combined market size for DRAM products is expected to reach $54.1 billion next year, helped by robust demand from smartphones and tablet PCs.South Korea’s Samsung Electronics Co. and SK hynix Inc.

Dec. 8, 2014

FTC chief vows to ‘sternly’ deal with price rigging

Korea’s corporate watchdog will “sternly” deal with price rigging that undermines fair competition in areas closely tied to everyday life, its new head said Monday.In his inauguration speech, Fair Trade Commission chairman Jeong Jae-chan also promised to step up monitoring on monopolies and abuse of intellectual property rights.“When it comes to price rigging that hampers market competition in areas closely linked to people’s daily lives, I will respond sternly,” Jeong said. “Monitoring will be

Dec. 8, 2014

9 in 10 Chinese VIP tourists spend over W50 mln in Korea: survey

Nine out of 10 Chinese tourists on VIP package to South Korea spent over 50 million won (US$44,840), making them the biggest foreign consumer group, a survey said Monday.According to the survey conducted by Cosmojin Tour, a Seoul-based travel agency, 87 percent of 596 Chinese who traveled to South Korea on exclusive VIP tours between Feb. 1 and Nov. 20 spent over 50 million won. Another 8 percent spent over 300 million won. Seven out of 10 bought luxury brands at duty free shops, two in 10 prefe

Dec. 8, 2014