The Federal Reserve has raised a key interest rate in response to a strengthening U.S. economy and expectations of higher inflation, and it foresees three more rate hikes in 2017.The Fed's move will mean modestly higher rates on some loans.Wednesday's action signaled the Fed's belief that the economy has improved over the past year after a rough start to 2016 and can withstand slightly higher borrowing rates. Its expectation of three rate increases in 2017 is up from two in its forecast three mo

Dec. 15, 2016

The unemployment rate among young South Koreans hit a 13-year high for the month of November, as manufacturers reduced new hires amid the prolonged economic downturn, the government said Wednesday. (123rf)According to data from Statistics Korea, the jobless rate among people aged between 15 and 29 rose to 8.2 percent in November, down from 8.5 percent a month earlier but up from 8.1 percent a year earlier. The figure last month is the highest yearly figure for November since 2003.The unemploymen

Dec. 14, 2016

Finance Minister and Deputy Prime Minister for Economy Yoo Il-ho is likely to keep his job, as both ruling and opposition parties as well as acting President Hwang Kyo-ahn were seen supporting Yoo’s continued term Monday.Following the parliament’s passage of a bill to impeach President Park Geun-hye on Friday, it had remained uncertain as to whether the incumbent Yoo would maintain his post or whether Financial Services Commission Chairman Yim Jong-yong, who had been nominated as new finance min

Dec. 12, 2016

Low-income households and small businesses in South Korea look particularly vulnerable to stronger headwinds faced by the country’s sluggish economy.The government is now tasked with steering the economy through worsening conditions at home and abroad, amid prolonged domestic political turmoil following last week’s impeachment of President Park Geun-hye over a massive corruption scandal.In carrying out this thorny task, there is a risk that the weakest part of the economy could take the hardest

Dec. 12, 2016

South Korea urgently needs to decide who will be the nation’s top economic policymaker to deal with growing uncertainties and prop up the faltering economy, experts said Sunday.The parliament’s impeachment of President Park Geun-hye on Friday signaled the start of more uncertainties as to whether incumbent Finance Minister Yoo Il-ho will maintain his post or the Financial Services Commission’s Yim Jong-yong, who had been designated as new finance minister by Park last month, will take over.Polit

Dec. 11, 2016

Finance Minister Yoo Il-ho on Friday convened a meeting of economy-related ministers upon the National Assembly’s impeachment of President Park Geun-hye and vowed to mobilize a combined emergency team for the economy.Yoo, who also acts as the deputy prime minister, said that he sent letters to global credit rating agencies and foreign investors and shared a telephone conversation with some of them to explain in detail the measures the government is planning to take post-impeachment.Finance Minis

Dec. 9, 2016

After a historic impeachment vote Friday, the Korean economy is expected to be thrown into a vortex of uncertainty amid aggravating concerns over sluggish exports and intensifying external volatility from foreign exchange and oil prices.The National Assembly passed a bill to impeach President Park Geun-hye, suspending all her constitutional power. The ultimate fate of the embattled president will be decided by the Constitution Court. Meanwhile, Prime Minister Hwang Kyo-ahn will lead state affair

Dec. 9, 2016

The National Assembly’s impeachment Friday was the death knell for many of the key economic policies endorsed by the Park Geun-hye administration encircled under the theme of the “creative economy."Upon inauguration, Park vowed to restructure the public, education, finance and labor sectors. Reform of regulations and improving labor market polarization have been key tasks for the government.Some of the initiatives are directly intertwined in the presidential scandal, but many economic experts ha

Dec. 9, 2016

The rapidly aging population in South Korea is projected to start declining from 2032, the government said Thursday.According to projections by Statistics Korea, the total population is expected to grow from 51 million in 2015 to peak at 52.96 million in 2031 before falling back to the 1990 level of 43 million in 2065.The government applied the current rates of birth, death and population change to create the projections. The population growth rate is estimated to go into negative territory from

Dec. 8, 2016

Recent political turmoil surrounding President Park Geun-hye will likely create a bigger drag on the South Korean economy in the future, which is experiencing a tepid recovery due to faltering exports and lukewarm domestic demand, a government report said Thursday."The recovery pace of the South Korean economy slowed down to some extent due to sluggish production and investment," the finance ministry said in its monthly economy assessment report called the "Green Book.""With intensifying uncerta

Dec. 8, 2016

Already reeling from sluggish exports and anemic domestic demand, the Korean economy is set to face several big political and external events over the next seven days.This Friday, the National Assembly will vote on whether to pass a motion to impeach embattled President Park Geun-hye.If the parliament passes the motion with more than two thirds of lawmakers voting for the impeachment, the unpopular Prime Minister Hwang Kyo-ahn immediately assume presidential power. It is highly likely that lawma

Dec. 7, 2016