Job losses at shipbuilders hurt overall employment

The corporate restructuring of shipbuilders is hurting the overall number of jobs in the Korean economy, with its repercussions spreading into other industries such as electronics and information technology, government data showed Monday.According to data from the Ministry of Employment and Labor, the economy added only 292,000 jobs, or 2.4 percent of the total jobs of 12.65 million, in October from a year earlier, the slowest pace in six years since September 2010.  (123rf)The employment data i

Nov. 7, 2016

Yim seeks contingency plans for financial market

The nominee for Deputy Prime Minister for Economy Yim Jong-yong on Monday declared a state of emergency for South Korea’s economy, and ordered the implementation of contingency measures for the financial and foreign exchange markets to guard against risks. Presiding over an emergency meeting on financial market conditions, Yim, who is designated to double as the strategy and finance minister, decried the current status of the Korean economy and financial market as being “in a crisis.”“The econom

Nov. 7, 2016

[ECONOMY AT RISK] Korean economy facing increasing risks from outside

The Korea Herald is publishing a series of articles on the alarming state of the country’s economy and the challenges to be addressed. This is the third installment -- Ed. The South Korean economy, internally constrained by sluggish consumption and investment, is also surrounded by growing external risks. The export-driven economy, in particular, is significantly dependent on its two biggest trading partners, the US and China. While the US is expected to have a new president after Tuesday’s elec

Nov. 6, 2016

[NEWS FOCUS] Leadership uncertainty adds downside risks

The uncertain future of the Korean government’s economic team is adding downside risks to the country, which is bracing for imminent headwinds.President Park Geun-hye on Wednesday hurriedly named Chairman of the Financial Services Commission Yim Jong-yong as the new deputy prime minister and finance minister, along with the appointment of a new prime minister, in an attempt to divert public anger over the Choi Soon-sil scandal. While Finance Minister Yoo Il-ho (left) presides over an economy-rel

Nov. 6, 2016

Koreans' overseas spending hits record high in Q3

South Koreans' overseas spending reached an all-time high in the third quarter of the year, driven by a large increase in the number of people traveling abroad, data from the central bank showed on Sunday.South Koreans spent a total of $6.59 billion in the July-September period in overseas countries, up 21.7 percent from the previous quarter and 24 percent from a year earlier, according to the data compiled by the Bank of Korea.The figure did not include spending for studying overseas.The sharp

Nov. 6, 2016

No. of irregular workers tops 6.4 million in Korea: gov't

The number of workers with irregular job status in South Korea has exceeded 6.4 million, with the income gap between them and regular employees widening, government data showed Thursday.There were a total of 19.62 million paid workers in the country as of August, up 1.6 percent from a year earlier, according to Statistics Korea.The number of irregular workers rose 2.8 percent on-year to 6.44 million, while that of regular ones climbed 1.1 percent to 13.18 million.The ratio of irregular workers i

Nov. 3, 2016

Korea unveils measures to deter property speculation

To curb the excessive rise of real estate prices, the South Korean government Thursday released a set of anti-speculation plans that include an extended ban on the transfer of home purchasing rights in affluent areas. “The government will limit the transfer of home purchasing rights and enhance monitoring when giving prior purchasing rights to new home buyers, as well as root out illegal activities to curb speculative demand,” Finance Minister Yoo Il-ho said in an economy-related ministers’ meet

Nov. 3, 2016

Plight of small businesses adds to economic woes

The deepening plight of many small and medium-sized companies is poised to exacerbate South Korea’s economic woes as the country’s large corporations have been struggling with slumping demand both at home and abroad.Industrial output by Asia’s fourth-largest economy fell by 2 percent from a year earlier in September, government data showed this week. A report released by the Bank of Korea on Sunday showed sales of about 574,000 local firms that close their books in the July-December period rose

Nov. 2, 2016

[MONITOR] South Korea's domestic credit surge

The Bank of Korea warned that the country’s domestic credit is fast rising at a rate of 5.9 percent (comparative price level considered) compared to other countries. Domestic credit compared to nominal gross domestic product has continued to set new records each quarter and reached 195.7 percent as of June this year.

Nov. 2, 2016

Choi scandal spilling over to banks

The snowballing scandal of Choi Soon-sil, President Park Geun-hye’s confidante, is seen spilling over to the financial industry, as eight banks submitted banking records of Choi and her aides amid allegations preferential loans might have been given to Choi and her associates. Eight commercials banks handed over transaction records and other information regarding Choi and other individuals involved in the massive corruption and manipulation of the government affairs scandal as requested by prose

Nov. 2, 2016

Veteran technocrat pledges to salvage economy amid crisis

Yim Jong-yong, the nominee for deputy prime minister for economy, pledged Wednesday to salvage the sinking Korean economy. “Assuming this position at a time of serious economic situations gives me a sense of grave responsibilities,” Yim said at a press conference at the Seoul government complex in Gwanghwamun on Wednesday. Yim Jong-yong, the nominee for deputy prime minister for economy, walks to a press briefing at the Seoul Government Complex on Wednesday. (Yonhap)“It is not an exaggeration to

Nov. 2, 2016

[ECONOMY AT RISK] Indicators warn of economic crisis in Korea

The Korea Herald is publishing a series of articles on the alarming state of the country’s economy and the challenges to be addressed. This is the first installment -- Ed. Dark clouds hang over South Korea’s economy, as almost all of its economic indicators point downwards, while top economic policymakers fail to spearhead economic reforms, amid one of the country’s worst influence-peddling scandals that is shaking the core of the government. Recent data by the Bank of Korea and the government s

Nov. 1, 2016

Korea's consumer prices rise 1.3% on-year in Oct.

South Korea's consumer prices rose more than 1 percent for the second consecutive month in October amid concerns over potential deflation in Asia's fourth-largest economy, government data showed Tuesday.The country's consumer price index rose 1.3 percent last month from a year earlier, marking the highest monthly gain since February, according to the data compiled by Statistics Korea.The index stayed over the 1 percent level for the second straight month, following a growth of less than 1 percen

Nov. 1, 2016

Scandal brings renewed attention to 'quasi-tax' burdens on companies

Allegations that President Park Geun-hye’s closest confidants used their influence to coerce the country’s big conglomerates into making multimillion-dollar donations to two nonprofit foundations have served to draw attention to the increasing extra tax burdens local companies are compelled to shoulder.The Mir and K-Sports foundations, established in 2015 and early this year, respectively, collected about 80 billion won ($70 million) from 53 corporations in just a few months.Choi Soon-sil, who m

Oct. 31, 2016

Production, consumption slip in September

South Korea’s industrial output and consumption shrank in September, government data showed Monday, reflecting the nation’s dire economics situation. The impact from sluggish exports, the Galaxy Note 7 recall, Hyundai Motor strike and Hanjin Shipping bankruptcy were felt on the indexes of industrial output and consumption in September, according to data released by Statistics Korea. The index of all industry production in September decreased by 0.8 percent from the previous month

Oct. 31, 2016

Ministry plans W11tr orders for shipbuilders

Finance Minister Yoo Il-ho said Monday the government will order more than 250 public vessels, including naval and military vessels, worth more than 11 trillion won ($9.6 billion) by 2020 to help ailing local shipbuilders deal with the drying up of new orders.For the shipping industry, the government will give 6.5 trillion won in fresh financing to help shippers secure new vessels, he said.“The global shipbuilding industry is likely to recover from 2018. However, by 2020, orders will not reach t

Oct. 31, 2016