S. Korea holds meeting on biz impact from Iraq instability

The government convened an emergency meeting on Sunday to keep a close eye on developments unfolding in Iraq amid worries that deepening instability in the oil-rich country could negatively affect Korean companies and the overall Korean economy.The meeting, held in Seoul, was attended by Yoon Sang-jick, minister of trade, industry and energy, along with a dozen officials from state-run energy companies and other private-sector firms doing business in Iraq.The meeting came amid concerns of civil

June 15, 2014

Korea logs trade surplus for 28th straight month in May

South Korea logged a trade surplus for the 28th consecutive month in May, despite sluggish exports growth, customs data showed Friday.South Korea's exports came to $47.8 billion last month, down 1 percent from a year earlier, while imports rose 0.3 percent on-year to $42.5 billion, according to the data from the Korea Customs Service. Earlier, the trade ministry said that exports declined 0.9 percent and imports increased 3 percent over the same period. Korea logged a trade surplus of $5.3 billi

June 13, 2014

Korea, Canada initial free trade agreement

South Korea and Canada have initialed their bilateral free trade agreement (FTA), the South Korean government said Friday, with the official signing due in the second half of this year.The trade pact was initialed by South Korean Deputy Trade Minister Choi Kyong-lim and his Canadian counterpart, Ian Burney, in Seoul on Thursday, according to the Ministry of Trade, Industry and Energy.With the FTA, South Korea will immediately eliminate its 8 percent import tariffs on all automobiles and auto par

June 13, 2014

Tax agency imposes W2.48tr on concealed assets

South Korea’s tax agency said Thursday it has levied nearly 2.5 trillion won ($2.46 billion) in taxes on concealed assets over the past two years since it launched teams to chase tax evaders.The National Tax Service launched the teams at each regional tax agency in February 2012 that were exclusively tasked with finding hidden assets and slapping taxes on them. The teams were promoted to divisions last September and are now staffed with a total of 212 employees.According to the NTS, the division

June 12, 2014

Foreigners net buy Seoul stocks for 2nd straight month

Offshore investors remained net buyers of local stocks for the second consecutive month in May on rallies on the Seoul bourse from confidence in global economic recovery, the financial watchdog said Tuesday.However, total investment volume more than halved, the Financial Supervisory Service added.Foreigners scooped up a net 1.5 trillion won ($1.48 billion) worth of local shares last month, down 60 percent from the 3.8 trillion won net purchase in the previous month, according to the FSS.The valu

June 10, 2014

Household loans grow fastest in four months in April

Household loans extended by South Korean financial institutions increased at the fastest clip in four months in April as property trade gained traction, central bank data showed Tuesday.Outstanding household lending by local lenders and nonbanking institutions reached 695.5 trillion won ($684.9 billion) as of end-April, growing 5 trillion won from a month earlier, according to the data by the Bank of Korea.The on-month gain, which marks the biggest since a 6.1 trillion won gain in December, was

June 10, 2014

Won nears 6-year high

The South Korean won rallied to its strongest level in nearly six years on Monday as rate cuts by the European Central Bank were expected to propel more foreign capital inflows into Asia’s fourth-largest economy, lending further support to the local currency, analysts said.The local currency closed at 1,016.20 against the greenback, up 4.3 won from the previous session’s close. The won hit an intra-day high of 1,016.00 to the dollar, the strongest level since Aug. 6, 2008, when the comparable fi

June 9, 2014

Seoul shares end lower on tech losses

South Korean stocks closed lower on Monday as institutional investors sold Samsung Electronics and other tech shares. The South Korean won rose against the U.S. dollar. The benchmark Korea Composite Stock Price Index closed at 1,990.04, down 5.44 points, or 0.27 percent, from Thursday’s close. The market was closed on Friday in observance of Memorial Day. The trading volume was moderate at 207.2 million shares worth 4.51 trillion won ($4.4 billion), with gainers leading losers 463 to 361.Gains i

June 9, 2014

Korea considers lowering 2014 growth outlook

The government is considering lowering South Korea’s growth outlook for this year due to sluggish domestic demand hurt by the ferry disaster in April while it studies measures to revive the national economy, senior officials said Sunday. The Ministry of Strategy and Finance is monitoring the aftermath of the ferry sinking and its impact on domestic consumption to reflect them in this year’s outlook as it prepares to announce economic management plans for the second half of this year. The announc

June 8, 2014

China catches up in export competitiveness as South Korea loses

China is catching up to South Korea in export competitiveness of key items, including IT, with South Korea beginning to lose ground in Europe, a local economic think tank said Sunday.A report from the Hyundai Research Institute put South Korea's trade specification index on eight key export items at 0.09 last year, up from 0.07 in 2012. The index measures the degree to which a country imports or exports a certain product. A number in the positive means the country is an exporter, and a negative

June 8, 2014

1st-quarter corporate investment rises, but led by handful of big companies

First-quarter corporate investment increased compared to last year, but it was mainly due to a handful of top conglomerates, pointing to a growing imbalance between big and smaller companies, data indicated Sunday.Analysis by corporate watcher CEO Score showed South Korea's top 30 business groups invested 20.5 trillion won ($20.06 billion) in the first quarter of this year, roughly 9 percent more than the same period last year.But excluding Samsung, which increased its investment by 48 percent,

June 8, 2014

Seoul shares fall below 2,000-point mark

South Korean stocks fell 0.65 percent to below the 2,000-point mark Thursday as investors sat on the sidelines ahead of key policy decisions in Europe and U.S. economic data. The local currency rose against the U.S. dollar. The benchmark Korea Composite Stock Price Index, after being closed for the local elections on Wednesday, started on the minus side and settled at 1,995.48, down 13.08 points from the previous session. The reading below the psychologically important 2,000 mark was the first s

June 5, 2014

Korea sells $2b foreign exchange stabilization bonds

The South Korean government said Wednesday that it has successfully sold $2 billion worth of foreign exchange equalization bonds. “The government has successfully sold $1 billion worth of dollar-denominated bonds and euro-denominated bonds worth about another $1 billion,” the Ministry of Strategy and Finance said.The dollar-denominated bonds with a 30-year maturity carry an interest rate of 4.143 percent. It marks the first time the country has issued foreign currency-denominated bonds with a 30

June 4, 2014

Korean banks target rich Chinese for growth

South Korean lenders are reaching out to wealthy Chinese customers as they seek new growth engines amid ultra-low interest rates and lackluster demand on their home turf.Local banks have been providing Chinese-language banking services to mostly blue-collar laborers in southwest Seoul. However, recent moves highlight their efforts to tap affluent Chinese who have already emerged as a major force in the retail sector. Woori Bank, the flagship unit of the nation’s biggest banking group, said Tuesd

June 4, 2014

Stocks inch up on news of Samsung Everland IPO

South Korean stocks finished 0.33 percent higher to reverse an earlier choppy session Tuesday as investor sentiment was buoyed on news of Samsung Everland’s plans to go public in the first quarter of next year. The South Korean won rose against the U.S. dollar. The benchmark Korea Composite Stock Price Index finished at 2,008.56, up 6.56 points from Monday’s close after moving in a tight range. Trading volume was moderate at 241.84 million shares worth 4.49 trillion won ($4.38 billion), with dec

June 3, 2014

Consumer prices grow fastest in 19 months in May

South Korea’s consumer prices grew at the fastest pace in 19 months in May, maintaining their upward trend after a protracted slow price gain that prompted concerns over deflation, a government report showed Tuesday.The country’s consumer price index rose 1.7 percent last month from a year earlier, the fastest on-year rise since October 2012, when it advanced 2.1 percent, according to the report by Statistics Korea. The core inflation, which excludes volatile oil and food prices, rose 2.2 percen

June 3, 2014

Korea's economy to grow 3.63 percent in 2014: global investors

Global investment banks and rating agencies forecast that South Korea's economy will advance in the mid 3-percent range this year, data showed Monday, lower than estimates by local government and institutions. Projections from 33 major IBs and credit rating agencies said South Korea's gross domestic product, the broadest measure of economic performance, is expected to grow 3.63 percent this year, according to Bloomberg data. Last year, the Korean economy grew 3 percent.Barclays and Wells Fargo p

June 2, 2014