BOK expected to hold policy rate steady in August: poll

South Korea's central bank is expected to keep its key rate frozen in August, two months after setting it at a record low level to bolster growth in Asia's fourth-largest economy, a poll showed Monday.In a survey conducted by Yonhap Infomax, the financial news arm of Yonhap News Agency, 13 out of 14 economists polled predicted the Bank of Korea to assume a wait-and-see mode.Emily Dabbs, an analyst from Moody's Analytics, said the Bank of Korea will likely keep rates on hold at 1.25 percent at it

Aug. 8, 2016

[Graphic News] Public sector’s financial health improving: report

The financial health of South Korea’s public sector is improving for the second consecutive year, showed a report by the Bank of Korea last week. The total revenue of the general government sector and public corporations stood at 735.6 trillion won ($659.4 billion) in 2015, up 3.4 percent from the previous year. The public sector’s total expenditure recorded 701.8 trillion won, a 1.1 percent on-year increase. The outpacing revenue growth produced a 33.8 trillion won surplus last year, nearly dou

Aug. 7, 2016

Foreigners net buyers in July despite THAAD row

Foreigners were net buyers of South Korean stocks last month, data showed Sunday, an indication that concerns on Beijing's possible economic retaliation against Seoul over an anti-missile system did not scare off foreign investors. Seoul and Washington announced last month that they have officially decided to deploy a Terminal High Altitude Area Defense battery, an advanced U.S. antimissile system, in South Korea to cope with the ever-growing nuclear and missile threats from North Korea. The dec

Aug. 7, 2016

Political circles in tug-of-war over tax hikes on rich

South Korea’s political circles are once again engaged in a tug-of-war over the most sensitive issue -- taxes -- with the progressives locking horns with the government and the conservatives over the proposal of tax hikes on the rich and conglomerates ahead of the National Assembly’s regular session next month. With Korea’s tax burden among the lowest in the Organization for Economic Cooperation and Development, the progressive Minjoo Party of Korea is making a case with its own set of tax code

Aug. 7, 2016

[Photo News] SK cheers Korean team in Rio Olympics

Employees of SK Group cheer for South Korean athletes participating in the Rio Olympics in front of its headquaters building in central Seoul, with a banner that reads “Go Team South Korea,” on Thursday. Goldman Sachs predicted that South Korea will rank fifth, with 13 golds. (Lee Sang-sub/The Korea Herald) 

Aug. 4, 2016

Weak economic outlook calls for another rate cut: analysts

Exports, South Korea’s main growth driver, dropped more than 10 percent in July, with imports decreasing faster than outbound shipments by 14 percent.Low inflation below the 1.1 percent target on falling oil prices and slow industrial production driven by decreasing global demand continue to drag Asia’s fourth-largest economy.With key statistical data pointing south, socioeconomic outlooks showing negative signs and doubts over the impact of the government’s stimulus proposal, market analysts ar

Aug. 4, 2016

Gov't bans Seoul city from providing allowances to young jobseekers

South Korea's government on Thursday halted the Seoul city's controversial program of providing cash allowances to thousands of young jobseekers, which kicked off earlier this week.On Wednesday, the Seoul Metropolitan Government said it had selected a total of 3,000 applicants and would provide them with 500,000 won ($448) per month, for up to six months, to help them maintain basic living standards, while they try to find work.The Ministry of Health and Welfare, however, prohibited the municipa

Aug. 4, 2016

Economy still faces bumpy road: think tank

The South Korean economy will unlikely gain recovery momentum in the short-term as faltering exports and flaccid production offset a modest rise in domestic consumption, a state-run think tank said Thursday."Despite continued favorable growth in domestic demand, including retail sales and construction investment, the economy is showing little signs of an overall recovery," the Korea Development Institute said in its monthly evaluation of the country's economic conditions."Moreover, a rapid impro

Aug. 4, 2016

External factors hamper Korea’s economy

A series of unfortunate events and negative factors abroad are hindering South Korea’s economy from growing toward its desired targets. The impact of the U.K.’s Brexit vote was beginning to ease up, with the government pledging fiscal support through a 28 trillion won ($25 billion) stimulus following the central bank’s monetary easing. But falling oil prices are now in the way of Asia’s fourth-largest economy reaching its potential.With crude oil prices dropping below $40 per barrel, the Korean

Aug. 3, 2016

Heavy debts, private education costs weigh down household consumption

Data released by the Bank of Korea last week showed the country’s economy grew by 0.7 percent on-quarter during the April-June period of this year. The figure, which represents a 0.2 percentage point improvement from the previous quarter, is still disappointing for policymakers and economists here, given a range of stimulus measures taken by the government, including those to help boost private consumption.On-quarter growth of Asia’s fourth-largest economy has remained below 1 percent since the

Aug. 3, 2016

Seoul city starts providing allowances to young job seekers

The Seoul city government started a controversial program that provides allowances to thousands of young job seekers Wednesday, which it said aims to help people maintain basic living standards while they try to find work.The Seoul Metropolitan Government said it has selected a total of 3,000 applicants and will provide them with 500,000 won ($448) per month, for up to six months. The plan, which has been opposed by the central government, is designed to support people from ages 19 to 29, who ha

Aug. 3, 2016

KDB: Korea's major industries likely to post negative growth

The Korea Development Bank on Wednesday said the country's major industries could post negative growth in the second half of the year.The South Korean policy lender said the prospects of shipping lines and shipbuilding are "very bad," while describing those for the car, steel, machinery and construction industries as "a bit bad" in a new report.South Korean shipbuilders have been under severe financial strain in the face of declining new orders amid a protracted slump in the world's economy.The

Aug. 3, 2016

Japan Cabinet OKs new stimulus package to pump up growth

TOKYO (AP) – Japan's Cabinet approved a fresh economic stimulus package on Tuesday worth more than 28 trillion yen ($275 billion), Prime Minister Shinzo Abe's latest effort to get the stalling recovery back on track.Abe called the package, part of a supplementary budget for the parliament to approve in an extraordinary session starting in September, ``an investment for the future.'' It focuses on Japan's agriculture and tourism, and on providing support for the child and elder care industry to e

Aug. 2, 2016

Consumer prices in July rise at slowest pace in 10 months

South Korea’s consumer price index rose 0.7 percent last month on-year, the slowest in 10 months, according to Statistics Korea on Tuesday.Due to falling international oil prices, the inflation rate has remained in the zero percent territory over the last three months, well below the central bank’s target of 2 percent for 2016-2018.In light of forecasts that global oil prices will decrease to around $30 per barrel on overcapacity rather than rebounding toward $50 later this year, it remains unce

Aug. 2, 2016

Korea's employment growth stalls amid weak economy

South Korea's job market recovery stalled in the first quarter of this year amid weak economic growth despite improvements in other members of the Organization for Economic Cooperation and Development, data showed Tuesday.South Korea's employment rate for people aged 15-65 stood at 65.9 percent for the January-March period, unchanged from the three months prior, according to the OECD data cited by the Korea Institute of Public Finance.The average employment rate for all OECD members came to 66.8

Aug. 2, 2016

Korea's consumer prices gain 0.7% on-year in July

South Korea's consumer prices rose by less than 1 percent for the third consecutive month in July, government data showed Tuesday, amid a flaccid economic recovery.The country's consumer price index rose 0.7 percent last month from a year earlier, marking the lowest on-year gain in 10 months, according to the data compiled by Statistics Korea.The figure grew 0.8 percent on-year both in June and May, after rising 1 percent or more during the February-April period.From a month earlier, the index e

Aug. 2, 2016

Korea faces rising protectionism

In a meeting of government officials and corporate executives convened last week to discuss how to boost exports, Trade Minister Joo Hyung-hwan called for strengthened efforts to put an end to a record streak of on-year monthly declines in Korea’s outbound shipments since the start of last year.He saw August as a crucial period to test whether the country could make a turnaround in exports, noting the pace of decrease has been decelerating in recent months.As adverse factors that might leave the

Aug. 1, 2016

[Monitor] Trade volume likely to fall short of $1 trillion

In its economic outlook report released Monday, the Bank of Korea forecast that the nation’s trade volume this year would amount to $901 billion, with $497 billion in exports and $404 billion in imports.

Aug. 1, 2016

Korea's exports fall 10%

South Korea’s current account surplus extended its record for the 52nd consecutive month in June, but the record surplus was mostly due to falling oil prices rather than an increase in exports over imports on global demand, according to the Bank of Korea on Monday.The current account surplus, the broadest measure of trade, hit a record of $12.17 billion in June, the biggest since the central bank began collecting the trade data in 1980. The June surplus gained $300 million, compared to a year ag

Aug. 1, 2016

More firms subject to strict antitrust rules in July

The number of South Korean business groups' affiliates subject to restrictions on mutual investments and loan guarantees rose in July from a month earlier, the antitrust watchdog said Monday.The Fair Trade Commission said the number of firms on its monthly watch list stood at 1,781 as of end-July, up 11 from the previous month.Such affiliates are owned by the country's 65 largest business groups, including Samsung Group, Hyundai Motor Group and Kakao Corp., the operator of South Korea's top mobi

Aug. 1, 2016