The Korea Herald

Korea's GDP per capita to top $30,000 in 2018: report

South Korea will likely see its gross domestic product per capita touch the landmark $30,000 level in 2018, a parliamentary report predicted Tuesday.If the $30,000 plateau is attained in two years, it will have taken 12 years since South Korea reached the $20,000 level in 2006.Other leading economies of the world have spent 8.2 years on average in raising their per capita income from $20,000 to $30,000.Switzerland needed only two years to make the jump and Japan spent five years, while it took 1

Sept. 20, 2016

Korea's GDP per capita to top $30,000 in 2018: report

Tax revisions to result in 4.7 tln won in additional corporate tax: report

Local businesses are expected to pay an additional 4.7 trillion won ($4.2 billion) per year in corporate tax due to tax revisions over the past four years, a study showed Tuesday, amid growing calls from the opposition bloc to further hike corporate tax.Since the incumbent administration came into office in early 2012, the government has enacted 14 separate revisions to various tax-related laws that have resulted in a significant increase in the amount paid by local firms, according to the Feder

Sept. 20, 2016

Tax revisions to result in 4.7 tln won in additional corporate tax: report

[Graphic News] Korean exports' global market shares shrink

The global market shares of major Korean export products like ships and display panels are dwindling, indicating that their international competitiveness is weakening, according to a report on Sunday.The market share of Korea‘s top 13 export items accounted for 5.3 percent in the global market in 2015, shedding 0.4 percentage points from 2011, the Korea International Trade Association said in a report. The key export items include semiconductors, autos, ships, steel, flat panel displays, wireles

Sept. 19, 2016

[Graphic News] Korean exports' global market shares shrink

Korea’s underground economy larger than OECD peers: research

The size of South Korea’s underground economy in 2014 is estimated at 161 trillion won ($143 billion), or nearly 11 percent of the nation‘s gross domestic product, a report showed Monday.According to a research paper which analyzed the underground economy and tax evasion in 26 Organization for Economic and Cooperation Development countries, Korea’s shadow economy is, on average, bigger than 25 of its OECD peers. Between 1995 and 2014, Korea’s underground economy, on average, made up 10.89 percen

Sept. 19, 2016

Korea’s underground economy larger than OECD peers: research

Turnover rate of deposits hits 11-year low

The turnover rate of deposits in South Korea hit a record low in more than 11 years in July, central bank data showed Monday, in the latest indication that money circulation is clogged.The deposit turnover rate for July recorded 20.3, the lowest since February 2005 when it stood at 18.1, according to the Bank of Korea.The rate is calculated monthly based on the amount of withdrawals and the average account balance. Less turnover means fewer withdrawals, signaling that people are holding on to th

Sept. 19, 2016

Turnover rate of deposits hits 11-year low

Business closures by self-employed increasing for those with hired workers

Business shutdowns by the self-employed with hired workers went up for the 10th consecutive month in August, national statistics showed Monday, another sign of an economic slowdown.The number of self-operating businesses with hired hands decreased by 1,000 last month compared with a year ago, according to Statistics Korea. The self-employed are categorized in two different groups -- those that have hired workers and those that do not. Business closures by the latter have been declining steadily

Sept. 19, 2016

Business closures by self-employed increasing for those with hired workers

[Graphic News] Korean life expectancy rapidly increases

South Korea’s life expectancy has increased at a rapid rate over the past two decades, largely on advances in medical services, a report showed last week.According to the Korea Insurance Research Institute, South Korea’s life expectancy came to 81 years as of end-2013, up 8.6 years from 72.5 years in 1990.KIRI officials attributed the large increase to medical advances, with the life expectancy of people diagnosed with cardiovascular diseases growing an average 3.9 years, according to the report

Sept. 18, 2016

[Graphic News] Korean life expectancy rapidly increases

Korea is losing export competitiveness: report

South Korea is losing export competitiveness in the major industrial sectors as China is catching up fast in the technology and manufacturing industries, a report showed Sunday. The market share of Korea's top 13 export items accounted for 5.3 percent in the global market in 2015, shedding 0.4 percentage point from 2011, the Korea International Trade Association said in a report. The key export items include semiconductors, autos, ships, steel, flat panel displays, wireless communications equipm

Sept. 18, 2016

KOSPI sees net foreign buying for 8 months

Offshore investors have kept buying Korean stocks for eight consecutive months on ample liquidity, marking the longest buying streak in seven years, the main bourse operator said Sunday. Foreigners have purchased a total of 12.87 trillion won ($11.43 billion) worth of stocks in the main KOSPI market from Feb. 1 to Sept. 9, the Korea Exchange said. Overseas investors bought 4 trillion won in July alone when major economies rolled out quantitative easing measures in the wake of Britain's vote to l

Sept. 18, 2016

Korean economy facing growing downward risks in H2

A series of unfortunate industrial and economic events at home and abroad are weighing down on the South Korean economy, blasting hopes for recovery in the second half of 2016. According to a report by LG Economic Research Institute on Tuesday, the Korean economy is highly likely to suffer sluggish consumption, exports and facility investment for the last four months of the year as the fourth-largest economy in Asia is recently hit by collapse of the country’s largest shipper, recalls of the new

Sept. 13, 2016

Korean economy facing growing downward risks in H2

Korea posts 55th consecutive month of trade surplus in Aug.

South Korea extended its trade surplus streak to 55 months in August on the back of a turnaround in exports for the first time in 20 months, customs data showed Tuesday.The country's trade surplus came to $5.1 billion last month, down from a record $7.6 billion in the previous month, according to the data from the Korea Customs Service.The figure also marked a 17.8 percent on-year rise from $4.3 billion tallied in the same month a year earlier, continuing its bullish run for 55 months in a row s

Sept. 13, 2016

Korea's jobless rate edges up to 3.6% in Aug.

South Korea's jobless rate increased slightly in August from a year earlier, with the unemployment rate for young adults still remaining high amid a prolonged economic slump, a government report showed Tuesday.The unemployment rate in Asia's fourth-largest economy stood at 3.6 percent last month, compared with 3.5 percent tallied in July, according to the report compiled by Statistics Korea.The number of employed people stood at 26.5 million in August, up 387,000 from a year earlier, with the mo

Sept. 13, 2016

Minimum wage hike ineffective to reduce poverty

Minimum wage hike ineffective in poverty reductionBy Kim Kyung-hoSkepticism has been raised over the effect of a minimum wage increase on reducing income inequality in the country.Contrary to its purported purpose of supporting low-income laborers, critics note, the minimum wage raise has mainly helped increase the income of middle-class workers, who account for 44 percent of employees entitled to a minimum wage. They also argue a minimum wage hike may result in fewer job opportunities for low-i

Sept. 12, 2016

Korea's home transactions gain 4.3% in August

South Korea's home transactions gained 4.3 percent from a year earlier last month, government data showed Monday, amid growing concerns over mounting household debt.The number of home transactions came to 98,130 in August, up from 94,110 tallied over the same month last year, according to the Ministry of Land, Infrastructure and Transport. The total number of transactions has been on a steady rise since February when it dropped to 59,000, following tightened bank loan guidelines aimed at cooling

Sept. 12, 2016

Foreign currency deposits grow in August

Foreign currency deposits held by banks in South Korea rose from a month earlier in August on a sharp rise in US dollar deposits by individual investors and exporters, central bank data showed Monday.Outstanding foreign currency deposits held by local residents came to US$67.34 billion as of end-August, up $1.11 billion from the previous month, according to the data from the Bank of Korea.Foreign deposits include those held by foreigners who have stayed in South Korea for more than six months, a

Sept. 12, 2016

Chinese employees of Taiwan cosmetic firm to visit Korea

Employees of Kelti Group, a Taiwanese cosmetics distributor and personal health care provider, are set to visit South Korea this week on an incentive tour program, the state-run tourism organization said Monday. About 6,400 employees of Kelti Group's Chinese branch will arrive in the southwestern port of Yeosu in two groups on Tuesday and Sunday aboard a 14,000-ton cruise ship as part of the group's incentive program, the Korea Tourism Organization said.Departing from Shanghai, the travelers wil

Sept. 12, 2016

More households living in makeshift abodes despite rising housing supply

South Korea's housing penetration rate has well exceeded 100 percent, but there are over 300,000 households who live in makeshift or abnormal arrangements, three times more than five years ago, national statistics showed Monday.Numbers provided by Statistics Korea said that as of November last year, 11,409 households lived in abodes with plastic roofs or made of planks. Another 30,131 households lived in motels and other types of accommodations. Statistics showed 322,591 households lived in temp

Sept. 12, 2016

Central bank freezes rate for 3rd straight month

South Korea’s central bank kept its key base rate unchanged at 1.25 percent for third straight month on Friday, as largely expected by market analysts, citing high household debt and uncertainties concerning the US Federal Reserve’s monetary policy.The decision to freeze its September rate was unanimous, as the Bank of Korea already noted in its minutes of last month’s policy committee meeting that a rapid increase in household debt was posing a risk to the economy.Also, the difficulty in foreca

Sept. 9, 2016

Central bank freezes rate for 3rd straight month

Stocks sharply down on North's suspected nuke test, US falls

South Korean stocks traded sharply lower late Friday morning, as investors were spooked by the possibility of North Korea conducting a nuclear test and overnight losses on Wall Street. The Korean won fell sharply against the US dollar.The benchmark Korea Composite Stock Price Index dropped 25.77 points, or 1.25 percent, to 2,036.96 as of 11:20 a.m. US stocks closed lower Thursday on a slump in tech stocks, with the Dow Jones industrial average losing 0.3 percent to 18,479.91 points in the face o

Sept. 9, 2016

BOK holds key rate steady at 1.25% in Sept.

South Korea's central bank on Friday held its policy rate steady for September, extending its wait-and-see mode for three straight months after sending the key rate to a record low level to strengthen growth for Asia's fourth-largest economy.In a widely expected move, the monetary policy board of the Bank of Korea voted to keep the key rate at 1.25 percent, as central bank officials have recently cited concerns about snowballing household debts and a possible rate hike in the United States.In Ju

Sept. 9, 2016