The Korea Herald

Consumer sentiment falls amid uncertain economic factors

South Korea’s consumer sentiment in November is the worst since the 1998 Asian financial crisis, reflecting people’s growing fear over the already weak economy.According to the Bank of Korea’s data, the composite consumer sentiment index plunged to 95.8 in November, the lowest since April 2009 when it was 94.2. A figure below 100 means pessimists outnumber optimists.It was the first time in five months that the index fell below 100 since June at 98.8.The survey was conducted on 2,056 households

Nov. 25, 2016

Consumer sentiment falls amid uncertain economic factors

Finance minister reaffirms relentless push for corporate restructuring

South Korea's top economic policymaker said Friday that the government will continue its push to restructure ailing sectors such as shipbuilding and shipping in order to help Asia's fourth-largest economy take another leap in the future."The government has been implementing corporate restructuring schemes as they are not an undeniable task for the survival of the economy and a future growth," Finance Minister Yoo Il-ho said during a minister-level meeting."The corporate restructuring is the proc

Nov. 25, 2016

Corporate card spending dips at bars, golf courses on anti-graft law

Corporate credit card spending declined at restaurants, bars and golf courses in South Korea in October, apparently affected by the introduction of a tough anti-corruption law.The legislation took effect in late September, covering millions of public servants, school teachers and journalists nationwide.Widely called the Kim Young-ran Act after the former supreme court judge who drafted it, the law prohibits them from accepting free meals valued 30,000 won ($25.40) or more and gifts worth 50,000

Nov. 25, 2016

Consumer sentiment hits near 8-year low in November

South Korea's overall consumer sentiment fell to the lowest point in nearly eight years this month, central bank data showed Friday, reflecting a further economic slowdown.The composite consumer sentiment index for November came to 95.8, the lowest since April 2009 when it stood at 94.2, according to the data from the Bank of Korea (BOK). A reading above 100 means optimists outnumber pessimists.A separate index gauging the people's sentiment toward the current economic condition came to 60 for N

Nov. 25, 2016

[MONITOR] Young singles mostly live in Hongdae, Gangnam

Singles in their 20s mostly live near the subway stations of Hongdae and Konkuk University, while singles in their 30s tend to reside around Gangam and Silim, a report showed.The report, which won in a contest arranged by the Seoul Institute, analyzed residential choices of single households for the sake of rejuvenating the local economy around subway stations. It was written by Park Geun-deok of Hanyang University in his doctorate course.Both men and women in their 20s living alone were concent

Nov. 24, 2016

[MONITOR] Young singles mostly live in Hongdae, Gangnam

Korea’s household debt hits all-time high

South Korea’s household debt hit a new high in the third quarter this year, data showed Thursday, posing a greater threat to the vulnerable economy anticipated to be hit by higher interest rates.The Bank of Korea’s data showed that household credit rose by 38.2 trillion won ($32.3 billion) in the July-Sept. period to reach 1,295.8 trillion won at the end of September, the highest volume in the country’s history. When added to the 7.4 trillion won household lending by banks in October, the total

Nov. 24, 2016

Korea’s household debt hits all-time high

BOK to cut rate-decision meetings to eight starting next year

South Korea's central bank said Thursday it will cut the number of rate-decision meetings starting next year to be able to make more insightful decisions in macroeconomic policies. Currently, the Bank of Korea holds a monetary policy meeting every month to set the key rate and announces its annual economic forecast every three months. In a major policy change, the BOK said it will hold a monetary policy meeting in just eight months of the year, excluding March, June, September and December. Inst

Nov. 24, 2016

Some local banks raise rates on new deposits

Some local banks have raised rates on new deposits, but the increase seems to be negligible compared to hikes in their lending rates, industry data said Thursday.NH Nonghyup Bank, one of the largest lenders in South Korea, raised its rates by up to 0.25 percentage point on new two-year time deposits for individual and corporate customers. This means the rate paid by the bank on a new two-year time deposit stands at 1.45 percent for individuals and 1.40 percent for corporate customers.A NH Nonghy

Nov. 24, 2016

Korea to introduce household debt warning system

South Korea said Thursday it will soon introduce a new early warning system for potential risks from the nation's massive household debt, especially as interest rates here may soon start an upward trend.Household debt totaled 1,295.8 trillion won ($1.1 trillion) as of the end of September, up 3 percent from three months earlier, according to the Bank of Korea.Taking into account a 7.5-trillion-won increase in household borrowing from local banks in October, market watchers say household credit i

Nov. 24, 2016

[MONITOR] Companies see net profit rise, reduce R&D costs

Last year’s drop in international oil prices has led to a drop in South Korean businesses’ decline in sales, but a raise in net profits, data by Statistics Korea showed.The businesses, however, reduced research and development investment amid heightened concerns of a downward economy.The data showed that as of 2015, the number of companies with 50 or more permanent employees and capital of 300 million won ($255,000) or over surged by 0.3 percent from the previous year to 12,460.

Nov. 23, 2016

[MONITOR] Companies see net profit rise, reduce R&D costs

[HERALD INTERVIEW] Free economic zones to foster closer networks between foreign, local firms

When it comes to attracting foreign direct investment, people often assume that foreign-invested firms would be most interested in exclusive incentives in free economic zones for the purpose of lowering their labor and capital costs. However, foreign firms actually would prefer to partner with Korean firms here to tap into the growth potential of the Korean market and demand of consumers here, according to the head of the planning office of the eight free economic zones.“A variety of incentives

Nov. 23, 2016

[HERALD INTERVIEW] Free economic zones to foster closer networks between foreign, local firms

Korea to swiftly deal with possible US protectionist measures: minister

South Korea's trade minister pledged Wednesday to swiftly take measures in case US President-elect Donald Trump takes protectionist measures against Seoul.Trade, Industry and Energy Minister Joo Hyung-hwan made the comments in an inaugural session of a consultative body set up between the government and private experts to better deal with trade issues with the US.His comments came amid concerns that Trump could strengthen protectionism. Trump has denounced the free trade pact between South Korea

Nov. 23, 2016

Korea to swiftly deal with possible US protectionist measures: minister

[MONITOR] South Korea’s deficit in IP rights trade narrows

South Korea’s deficit in the trade of intellectual property rights declined in the second quarter this year from a year ago, the Bank of Korea said Tuesday.Korea exported $2.34 billion and imported $2.5 billion in intellectual property rights in the period. The decline was mainly attributed to reduced deficit from the trademark and franchise sector, the bank said.By country, Korea saw the largest trade deficit of $820 million with the United States, and the largest surplus of $460 million throug

Nov. 22, 2016

[MONITOR] South Korea’s deficit in IP rights trade narrows

Consumers giving up spending on gloomy economic outlook

Third-quarter household spending shows a persistent slump in consumption, including in basic foodstuffs, the state statistics office said Tuesday.Expenditures for foodstuffs and non-alcoholic beverages by households of two persons or more fell 3.2 percent in the July-September period compared to the same months last year, according to Statistics Korea. It marks the fourth straight quarter of a fall, the longest since the agency started keeping records in 2003."Real" household spending, which inc

Nov. 22, 2016

Savings banks' net widens 72%: FSS

South Korea's savings banks improved their financial soundness in the first nine months of this year partly thanks to a sharp increase in their net profits, official data showed Tuesday.The aggregate net income of 79 savings banks here jumped 71.8 percent on-year to 764.5 billion won ($644 million) during the January-September period, according to the Financial Supervisory Service (FSS). It added the figure is a provisional one.Their total assets came to 49.9 trillion won as of Sept. 30, up 6 tr

Nov. 22, 2016

Korea, MERCOSUR hold preliminary talks on FTA

South Korea and the South American trade bloc MERCOSUR had preliminary talks on launching official negotiations on a trade deal, as Asia's fourth-largest economy is seeking to tap deeper into the populous region, the trade ministry here said Tuesday.At the two-day exploratory dialogue held in Buenos Aires, Argentina, on Monday (local time), representatives of South Korea and four members of MERCOSUR, which means the Southern Common Market in Spanish and consists of the countries of Argentina, Br

Nov. 22, 2016

Korean economy intact from Choi scandal

The South Korean economy remains "on track" despite the influence-peddling scandal which rocked the country over past few weeks, an official from the Organization for Economic Co-operation and Development (OECD) said Monday.Randall Jones, the OECD's Japan and Korea desk head, said there has been no significant change in the country's stock and foreign exchange market in relation to the scandal surrounding President Park Geun-hye's confidante Choi Soon-sil, who allegedly exerted influence on stat

Nov. 21, 2016

Slapdash budget deliberations go unchecked

South Korea’s legislators have been criticized for their slapdash deliberation on annual budget bills submitted by the government. The ongoing review of the spending plan for next year seems little different from previous ones.More worrisome is that the issue is not getting much public attention amid the influence-peddling and corruption scandal surrounding President Park Geun-hye and her longtime confidante Choi Soon-sil.Many experts note that it is not possible for legislators to thoroughly sc

Nov. 21, 2016

Slapdash budget deliberations go unchecked

BOK speeds up drive for 'coinless society'

Users of prepaid transportation cards in South Korea will be able to recharge them with change left from purchases at local convenience stores, starting next year, under the Bank of Korea (BOK)'s campaign for a "coinless society," officials said Monday.The central bank plans to introduce the test service in the first half of 2017. An image of coinless society plan using prepaid transportation cards. (Yonhap)In the longer term, the BOK will expand the service to supermarkets, pharmacies and other

Nov. 21, 2016

BOK speeds up drive for 'coinless society'

Number of centenarian pension recipients on rise

The number of South Korean recipients of the state pension who are 100 years old or older has risen every year recently, data showed Monday.According to the data by the National Pension Service (NPS), the number of centenarians receiving the state pension came to 54 across the country as of August, up from 18 in 2011, 20 in 2012, 32 in 2014 and 47 in 2015. All centenarian pensioners also were paid the survivor's pension after their children who had subscribed to the state pension died.The state

Nov. 21, 2016

Number of centenarian pension recipients on rise