Korea's Samsung in rough patch with arrest request, recalls

A request by South Korean prosecutors to arrest Lee Jae-yong, the 48-year-old vice chairman and de facto leader of Samsung Electronics, has added to the troubles for the country's most valuable company after a spate of recalls last year. Lee faces allegations he offered $36 million in bribes to a friend of President Park Geun-hye, who has been impeached. Prosecutors say they also suspect him of embezzlement and lying under oath. A Seoul court will review the request for his arrest Wednesday and

Jan. 16, 2017

Kumho Asiana Group chief confident of taking back tire-making affiliate

The chief of Kumho Asiana Group, parent of Asiana Airlines Co., said Tuesday that he will exercise his right to buy back a tire-making unit from its creditors currently up for sale.The creditors of Kumho Tire Co., led by the state-run Korea Development Bank, are set to announce this week a preferred bidder for a 42.1 percent stake in South Korea's No. 2 tire maker, with a Chinese tire maker reportedly picked as the prime bidder."It is right to exercise the right to buy back (Kumho Tire)," Kumho

Jan. 16, 2017

Korean companies seek to disperse China risks

South Korean corporations are scrambling to find ways to contain or reduce growing risks posed by China to their business in the world’s second-largest economy. (123rf)They have found themselves bearing the brunt of Beijing’s anger at Seoul’s agreement in July to deploy an advanced US missile defense system here to protect against nuclear and missile threats from North Korea.While refraining from taking outright retaliatory measures, China has heightened nontariff barriers and increased other re

Jan. 16, 2017

Korea's top 100 firms cut jobs amid economic slump

South Korea's top 100 large-cap companies have cut more than 7,000 jobs in 2016, data showed Monday, as they are reluctant to hire new employees amid the economy's prolonged sluggishness.According to the data by market tracker Chaebul.com, the leading companies had a combined 861,578 employees as of the end of September 2016, down 0.8 percent, or 7,132 people, from the same period a year earlier.The job reduction is most noticeable in South Korea's shipbuilding industry, with the country's leadi

Jan. 16, 2017

Govt. statistics point to sweeping indicators of economic hardship

Economy-related numbers from different government offices all show sweeping indicators of hard times in progress from stagnant income to homes becoming more unaffordable and businesses going bankrupt, analysts said Monday.Average monthly household income in the third quarter last year was 4.445 million won ($3,781), up 0.7 percent from a year ago, figures from Statistics Korea showed. Real income, however, fell 0.1 percent. The actual income has been in a continuous drop from the third quarter o

Jan. 16, 2017

Korea's home transactions inch up in Dec.

South Korea's home transactions continued to increase from a year earlier last month, the government said Monday, amid a move to limit the supply of new homes as a way of reducing household debt.The number of home transactions came to 88,601 in December, up 0.8 percent from the same month in 2015, according to the Ministry of Land, Infrastructure and Transport.The tally marked a 13.9-percent plunge from the previous month.However, December marked the fifth consecutive month of on-year gain.Such

Jan. 16, 2017

Korea logs 59th straight month of trade surplus in Dec.

South Korea logged a trade surplus for 59 straight months in December, with its exports remaining in positive terrain, customs data showed Monday.The country's trade surplus came to $6.8 billion last month, compared with a surplus of $6.9 billion tallied in the same month in 2015, according to the data from the Korea Customs Service.Exports rose 6.4 percent on-year to $45.1 billion in December, extending its winning streak to two months in a row, while imports jumped 8 percent to $38.3 billion l

Jan. 16, 2017

Lotto sales reach new record in 2016

Sales of the Korean lottery Lotto hit their highest last year, statistics from the operator showed Monday, a trend that comes during economic slumps, social analysts say.The statistics from the Korea Lottery Commission said Lotto sales reached 3.55 trillion won ($3.02 billion), or 3.55 billion tickets, last year, an increase of 9 percent from the year before.The sales volume is the highest on record since it was first introduced in the country in 2002. The monetary amount of the sales is also th

Jan. 16, 2017

Long-term unemployment rate hits 14-year high

South Korea‘s job market is under strain from not only a rising unemployment rate but also an increasing number of people who have been jobless for a long time, data showed Sunday.The number of jobseekers surpassed 1 million in 2016 for the first time since 2000, according to Statistics Korea.Of the total, 133,000 were unemployed for more than half a year, accounting for 13.1 percent of the unemployed.It marks the highest number since 13.8 percent was posted in 2002.The rate reached double digit

Jan. 15, 2017

BOK cuts 2017 growth outlook to 2.5%, holds key rate

South Korea’s central bank Friday lowered its 2017 growth outlook to 2.5 percent, citing a greater risk in already weak domestic consumption.Bank of Korea Gov. Lee Ju-yeol speaks during a press conference in Seoul, Friday. (Yonhap)Despite bigger downside risks, the Bank of Korea kept its base rate unchanged at a record low of 1.25 percent in an apparent move to strike a balance between supporting growth and seeking stability in the financial market. It was the seventh consecutive rate freeze sin

Jan. 13, 2017

BOK slashes growth outlook of Korea's economy to 2.5%

South Korea's central bank held its key rate at a record low level on Friday, though it revised down its growth forecast for this year, citing the slowing economy.The Bank of Korea left the base rate at 1.25 percent for a seventh consecutive month in January, while it cut its forecast for gross domestic product this year to a growth of 2.5 percent, from 2.8 percent projected in October.  (123rf)The BOK's growth estimate is also lower than the government's forecast of a 2.6 percent growth release

Jan. 13, 2017

Half of non-tariff barriers to Korea come from China

More than half of non-trade barriers set by foreign countries against South Korea came from China, the Seoul government said Friday, stoking concerns about outbound shipments to Seoul's largest trading partner.Out of 49 non-tariff measures against South Korean goods, Beijing accounted for 26 as of October 2016, the Ministry of Trade, Industry and Energy and the Korea International Trade Association said.Technical barriers to trade) topped the list of non-tariff measures by China against South Ko

Jan. 13, 2017

Full text of BOK's statement on monetary policy decision for Jan.

Following is the full text of the Bank of Korea's statement on its monetary policy decision for January. The central bank's monetary policy board decided Friday to hold the base rate steady at 1.25 percent for the month. (123rf)The Monetary Policy Board of the Bank of Korea decided today to leave the Base Rate unchanged at 1.25% for the intermeeting period.Based on currently available information the Board considers that the trend of global economic recovery has expanded somewhat, led by the US

Jan. 13, 2017

BOK holds key rate steady at 1.25% in Jan.

South Korea's central bank on Friday held its key rate steady for the seventh straight month as it remains cautious about financial stability amid slowing growth.The Bank of Korea maintained its policy rate at an all-time low of 1.25 percent in January after sending the rate to the lowest level to support the growth of Asia's fourth-biggest economy. (Yonhap)"As the inflationary pressures on the demand side are not expected to be high, given the moderate pace of domestic economic growth, the boar

Jan. 13, 2017

Korea, US hold 4th joint committee meeting on FTA

South Korea and the United States held a follow-up meeting on the bilateral free trade pact amid rising concerns over renegotiations sparked by US President-elect Donald Trump, the trade ministry here said Friday.Deputy Trade Minister Lee In-ho and his US counterpart Michael Beeman convened the fourth round of talks under the Korea-U.S. free trade agreement joint committee in Seoul on Thursday to review the implementation of the accord and discuss pending trade issues between the two countries,

Jan. 13, 2017

Young Koreans given various incentives to have more babies

Kang Mi-ok received 2 million won ($1,700) from a rural county in central South Korea in August. The money was meant to promote the birth of a fourth baby.She is set to receive another 8 million won in installments by 2020 from Cheongyang County, South Chungcheong Province, to help her raise the baby. Kang Mi-ok holds her fourth baby as she talks with her husband at a cafe in Cheongyang, 160 kilometers south of Seoul, on Jan. 7, 2017. (Yonhap)"It's completely a bonanza," Kang said as she was car

Jan. 13, 2017

Eyes on Korea-China FTA meeting amid THAAD tension

One day before South Korea and China are scheduled to hold the first meeting of the free trade agreement joint committee, the trade minister here said Thursday that he is considering discussing about recent trade issues with China over Seoul’s decision to deploy a US Terminal High Altitude Area Defense anti-missile battery. “We will raise the relation between issues raised by Korean companies and the deployment of THAAD during the meeting of the Korea-China FTA joint

Jan. 12, 2017

Statistics show children's education taking away bulk of disposable income

The cost of private education for children is heavily eroding what little is left of spendable family income, a challenge to government effort to revive the economy through consumption, statistics indicated Thursday.Official numbers from Statistics Korea said a city-dwelling family of two people or more on average spent 226,576 won ($189.38) a month on out-of-school education for children in the third quarter last year. This is a 6 percent increase compared to a much less 1 percent increase in d

Jan. 12, 2017

Korea's food price inflation highest among OECD states

The pace of food price inflation in South Korea ranked among the top in comparison to other member states of the Organization for Economic Cooperation and Development as of November last year, statistics from the organization showed Thursday.The prices of foodstuffs and non-alcohol beverages in South Korea were up 4.5 percent from a year before, the third highest after Mexico's 4.9 percent and Japan's 4.7 percent, according to the OECD's tally. South Korea was second in October and first in Sept

Jan. 12, 2017

Jobs data shows gloomy market, high youth unemployment

South Korea’s number of jobless hit 1 million for the first time last year, with young job seekers suffering the most, the latest data from the national statistics bureau showed Wednesday.  The unemployment rate for last year was 3.7 percent, the highest since 2010, inching up 0.1 percentage point from the previous year, with the number of jobless reaching 1.01 million, Statistics Korea data showed. It was the first time the tally had exceeded 1 million since the statistics agency ad

Jan. 11, 2017