The government has launched an evaluation into major milk makers‘ push to raise their product prices, worrying that such price hikes could make other milk-based goods more expensive and eventually drive up the overall inflationary pressure, government sources said Tuesday.The move comes as Seoul Milk and Maeil Dairies will raise their milk prices on Thursday and Friday by 250 won ($0.23) per liter.The country’s major milk producers claim that 106 won is linked with increased raw milk prices, whi

Aug. 6, 2013

Sales at South Korea’s department stores were forecast to have contracted about 2 percent in July, preliminary data showed Tuesday, raising worries that private-sector spending still remains weak.According to the data provided by the finance ministry, sales at department stores were estimated to have shrunk 2.1 percent on-year in July, a sharp turnaround from June‘s 4.1 percent growth.Sales at discount chains were also projected to have dropped by 5.2 percent over the same period. In June, sales

Aug. 6, 2013

With the end of the prolonged rainy season and arrival of midsummer heat, the nation’s electricity shortage is expected to reach its peak from late this week to early next week.A heat wave is set to hit the peninsula from Thursday, after which the country’s electricity reserves may fall under the critical level, according to the Korea Power Exchange on Monday.“The backup electricity level will remain stable in the early half of this week, as most of the highly energy-consuming companies are curr

Aug. 5, 2013

South Korea's foreign-exchange reserves rose to a record high in July following the largest fall in 13 months in June as a weaker U.S. dollar raised the conversion value of non-dollar assets, the central bank said Monday.The country's foreign reserves reached US$329.71 billion as of end-July, up $3.27 billion from the previous month, according to the Bank of Korea (BOK).The FX reserves fell by $1.66 billion in June, the largest monthly decline since May 2012, due mainly to repayment of maturing

Aug. 5, 2013

Confidence that the Korean economy will gain ground in the second half of this year is growing on the back of a rosier outlook for the global economy.Economic indices showing solid rebounds in production in the U.S., China and the eurozone, Korea’s three biggest trading partners, are fueling projections that Korea could regain a growth rate of 4 percent.U.S. manufacturing activity measured by the Institute of Supply Management hit a record of above 50, improving employment in the sector in July.

Aug. 4, 2013

The government’s move to raise the ceiling for loans exclusively for “jeonse” is facing criticism for its potential negative effect on mounting household debt. Jeonse is a rental system under which tenants put up a lump-sum deposit for rent, instead of monthly rental fee. Property owners either invest the jeonse deposit or collect interest on the sum through their bank. Jeonse rental costs have soared particularly in Seoul due to a supply shortage as people delay making home purchases due to fal

Aug. 4, 2013

South Korea’s exports to emerging countries in Asia dropped in July from a year earlier, data showed Sunday, casting clouds over the export-reliant country‘s economy down the road.South Korea’s exports to the members of the Association of Southeast Asian Nations, which include Indonesia, Vietnam and Thailand, shed 5.4 percent on-year in July, the Korea International Trade Association data showed.The figure marked the lowest tally since a 25.7 percent on-year drop in August 2009, the data also sh

Aug. 4, 2013

Philip Morris Korea said Sunday that it would put the summer edition of its Marlboro Fresh lineup on sale for five weeks starting Monday. The summer edition carries a new design in black, with a twist to the classic Marlboro Chevron-shaped logo, adding a vibrant mirror-like surface that reflects light. The Marlboro Fresh lineup comes in four menthol flavors: Marlboro Ice Blast, Marlboro Ice Blast One, Marlboro White Fresh and Marlboro Black Fresh. Marlboro Ice Blast and Marlboro Ice Blast One ha

Aug. 4, 2013

As part of the government’s move to regularize the underground economy, the Korea Customs Service will seek access to the credit card expenditures of overseas travelers, despite disputes over privacy.Back in March, shortly after the new presidential office kicked off, the KCS submitted a bill to give customs authorities access to overseas credit card use on a monthly basis. Currently, the office only receives a yearly report from the Credit Finance Association.The idea was suggested as a means t

Aug. 2, 2013

Korea, China and Japan completed the second round of talks for their trilateral trade pact, adding momentum to their push for economic unity in Northeast Asia.During the four-day meeting held in Shanghai this week, the representatives of the three countries discussed key issues such as rules of origins and customs procedures, according to the Ministry of Trade, Industry and Energy on Friday.This was progress from the first round of talks held in Seoul in March, in which the basic terms of refere

Aug. 2, 2013

The 317 trillion won ($282 billion) project to develop a tourist complex city across Muuido and Yongyudo islands near Incheon International Airport has collapsed due to the ongoing economic stagnation and investment delays.The Incheon Free Economic Zone said Thursday that it canceled the contract with 8City, a private consortium organized back in 2007 to construct the tourist attraction complex, officials said.Considering the economic hardships, the IFEZ has extended investment deadlines 13 time

Aug. 1, 2013

South Korea’s trade surplus slightly widened last month as its overall trade volume grew from a year earlier, the government said Thursday.In July, the country’s exports amounted to $45.84 billion, up 2.6 percent from the same month last year, according to the Ministry of Trade, Industry and Energy.The July figure marks a turnaround from a 0.9 percent on-year drop in the previous month.The country’s trade surplus came to $2.71 billion with its imports growing 2.7 percent on-year to $43.13 billio

Aug. 1, 2013

SoloPower Korea, a firm jointly established by a U.S.-based thin-film solar photovoltaic producer and its local partner CTI Co., said Wednesday that the company has concluded an investment contract worth $100 million with U.S.-based Blue Coast Securities Corp.SoloPower Korea CEO Song Dong-jeong said that the company has been struggling to find a proper investor in Korea due to lack of awareness of CIGS ― semiconductor material composed of copper, indium, gallium and selenium ― as well as the eco

Aug. 1, 2013

NHN Corp., the operator of the country’s top portal Naver, has been renamed Naver Corp., after its main business and gaming business were reorganized into two separate entities, it said Thursday.In March, Naver decided to split itself into two firms ― Naver Corp. and NHN Entertainment Co. ― in a bid to focus on its mainstay business.With the split, Naver has a total of 25 affiliates under its wing, it said.NHN Entertainment with 1 trillion won ($892 million) in assets will be listed on the count

Aug. 1, 2013

More than two years since effectuation, the once-disputed Korea-U.S. Free Trade Agreement now seems to be on track, but its wide range of tariff cuts is now leading to anti-dumping regulation issues.But export industries, however, have compained that the Korean government has failed to provide a sufficient protective barrier, especially after the trade function was transferred from the Ministry of Foreign Affairs earlier this year.Last week, the U.S. Department of Commerce kicked off an investig

Aug. 1, 2013

South Korea's trade surplus slightly widened last month as its overall trade volume grew from a year earlier, the government said Thursday.In July, the country's exports amounted to US$45.84 billion, up 2.6 percent from the same month last year, according to the Ministry of Trade, Industry and Energy.The July figure marks a turnaround from a 0.9 percent on-year drop in the previous month.The country's trade surplus came to $2.71 billion with its imports growing 2.7 percent on-year to $43.13 bill

Aug. 1, 2013

South Korea's minimum wage has been set at 5,210 won ($4.66) per hour for next year, up slightly over 7 percent from this year, the labor ministry said Thursday.Earlier this month, a trilateral council of government, labor and management representatives agreed to raise the country's minimum wage for 2014 by 7.2 percent from the current 4,860 won per hour. The increase plan was confirmed as no objections or complaints were raised by labor and management, the ministry said, adding that it will mak

Aug. 1, 2013