S. Korea's jobless rate falls to 3.5 pct in March

South Korea's jobless rate fell in March from a month earlier and job creation also picked up speed, raising expectations that labor market conditions might be rebounding from a slump, a government report showed Wednesday.According to the report by Statistics Korea, the jobless rate stood at 3.5 percent last month, down from the previous month's 4 percent, the highest since February last year. The jobless rate adjusted for inflation also declined to 3.2 percent last month from February's 3.5 per

April 10, 2013

Yongsan liquidation to lead to massive lawsuits

Following state-run rail operator KORAIL’s decision to quit the faltering Yongsan development project, investors and residents are moving to lodge compensation suits against the company or the project developer.KORAIL, the largest shareholder of the project financing vehicle Dream Hub, resolved Monday to liquidate the massive redevelopment project, after its self-rescue plan had been rejected earlier by other private shareholders.The greatest victims of the project fallout are the residents of Y

April 9, 2013

Farm Ministry offers policy consulting to developing countries

Korea will start supporting developing countries by consulting them on its own rural development policy through its official development assistance program, the Ministry of Agriculture, Food and Rural Affairs said on Monday.“The ministry has completed development of 20 modules for the agriculture-related policy consulting services, titled the Korean Agricultural Policy Experiences for Food Security, or KAPEX, geared toward developing countries,” a ministry official said. The 20 modules include a

April 8, 2013

S. Korean exports forecast to recover in Q2

South Korean exports will likely recover in the second quarter of the year on the back of a mild upturn in the major economies such as the United States and China, a poll showed Monday.The index measuring the country's exports for the coming months came in at 54.1 for the second quarter of the year, up 2.3 points from the previous quarter, according to the survey by the Korea Trade-Investment Promotion Agency (KOTRA).The figure marked the highest result since the third quarter of 2011.The index

April 8, 2013

Seoul shares open lower on U.S. losses

South Korean stocks got off to a weak start on Monday, tracking losses on Wall Street in the previous trading session sparked by weak job data, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) moved down 4.77 points, or 0.25 percent, to 1,922.46 in the first 15 minutes of trading.Shares lost ground across the board, with top chipmaker SK hynix falling 0.88 percent and No. 1 carmaker Hyundai Motor losing 0.25 percent. Leading steelmaker POSCO moved down 0.32 percent.U.S. stoc

April 8, 2013

S. Korea to announce new railway projects within H1

South Korea plans to map out new railway projects to create jobs and expand its presence in the global railway market in the first half of this year, the transport ministry said Sunday.The Ministry of Land, Infrastructure and Transport said the new railway projects will include the localization of Korea Train Express (KTX)-II, or "KTX-Sancheon" that can run at a speed of up to 300 kilometers per hour as well as exports of urban railways. The projects will be focused on job creation, the improvem

April 7, 2013

S. Korea's economy recovers at slower pace than expected: report

   SEJONG -- South Korea's economy is recovering at a slower pace than expected amid still weak exports growth and sluggish job creation, a state-run think tank said Sunday.   "The Korean economy showed mitigated contraction in domestic demand and a rebound of exports to a positive growth, but its overall pace of recovery is more moderate than expected," the Korea Development Institute said in its report that analyzed the latest economic indicators.   The report said that retail sales in Februar

April 7, 2013

Seoul fails in Turkey nuclear plant bid

South Korea may have failed to grab Turkey’s nuclear power plant project, which could instead go to China or Japan, a government official said Friday.The official from the Ministry of Trade, Industry and Energy said the country was still waiting for an official report from Ankara, but noted the country’s bid may have already proven unsuccessful.“From what we have heard directly (from Turkey) and from remarks of Turkey’s energy minister in recent interviews, it appears Turkey is now considering b

April 5, 2013

KDB Financial union opposes new CEO pick

Unionized workers at KDB Financial Group Co. on Friday expressed strong opposition to the appointment of a presidential aide as its chief, saying he has been tapped thanks to his political connections.The Financial Services Commission, the country’s top financial regulator, on Thursday picked Hong Ki-taek, an economics professor and an aide to President Park Geun-hye, to head the state-run banking giant. The KDB Financial chief is appointed by the president on the recommendation of the FSC chair

April 5, 2013

Korean economy to grow 2.8% this year: analysts

South Korea’s economic growth rate for this year is expected to beat the government’s estimate on the back of its economic stimulus measures including an extra budget, analysts said Friday.Ten major securities firms’ average economic growth outlook for 2013 came in at 2.8 percent, 0.5 percentage point higher than the 2.3 percent projected by the government last month, according to the analysts polled by Yonhap News Agency.Woori Investment & Securities Co. and Hyundai Securities Co. expected the

April 5, 2013

Seoul shares open lower on political risks

South Korean stocks opened lower on Friday as investors sat on the sidelines due to the rising tensions with North Korea, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) moved down 8.11 points, or 0.41 percent, to 1,951.34 in the first 15 minutes of trading.Shares lost ground across the board, with No. 1 carmaker Hyundai Motor losing 1.93 percent and leading chipmaker SK hynix losing 0.86 percent. Top steelmaker POSCO shed 0.78 percent.North Korea threatened Thursday to pul

April 5, 2013

Shipbuilders’ debt jumps in 2012

Combined debt owed by South Korea’s seven largest shipyards spiked 44 percent last year as shipbuilders sought more loans from banks and debt sales to cope with falling demand, industry data showed Thursday.According to the data, Hyundai Heavy Industries Co., Samsung Heavy Industries Co., and five other shipyards held a combined 21 trillion won ($18.8 billion) in debt at the end of 2012, compared with 14.6 trillion won a year earlier.The debt includes bank loans and proceeds from sales of corpor

April 4, 2013

Korea's new housing policy unlikely to spur market: IBs

Foreign investment banks (IBs) don't expect South Korea's property market to get a boost from the government's new housing policy in the short term largely because anticipations of an increase in home prices remain weak, a report showed Thursday.On Monday, the government announced a set of measures aimed at boosting the country's sluggish real estate market. It included tax breaks for first-time homeowners and a cut in the supply of new homes to keep prices from falling further. According to the

April 4, 2013

KORAIL pressed to quit Yongsan

The state-run rail operator KORAIL is under pressure from the government to withdraw from the nation’s single largest but money-losing project to redevelop Yongsan, at the heart of Seoul, into an international business district.Government officials said the Ministry of Land, Infrastructure, and Transport had instructed KORAIL to open an exclusive account for the Yongsan development project, separate from its accounting business on rail operation.The instruction is tantamount to a call for giving

April 3, 2013