Property sector shrinks in Q2 on weak market

South Korea's property and real estate rental industry contracted in the second quarter for the first time in more than four years due to the sluggish market, central bank data showed Monday.According to the Bank of Korea's latest data on gross domestic product, the real estate and rental sector shrank 0.2 percent in the April-June period from three months earlier.It marks the first on-quarter decline since the fourth quarter of 2011, when the industry declined 0.6 percent from three months earl

Aug. 1, 2016

Delinquency of bank loans to big firms jumps in June

The delinquency rate for South Korean bank loans to large companies soared in June from the previous month due mainly to a one-off factor, data showed Monday.Local banks saw the delinquency rate of their lending to big businesses stand at 2.17 percent at the end of June, up 0.81 percentage point from a month earlier, according to the data by the Financial Supervisory Service. From a year earlier, the figure was up 1.49 percentage points.Loans are considered delinquent when payment of both princi

Aug. 1, 2016

Korea's exports tumble 10.2% on-year in July

South Korea's exports fell by more than 10 percent in July, with the rate of decline returning to double digits after single digits in May and June, the trade ministry said Monday.Outbound shipments came to $41 billion last month, down 10.2 percent from the same month last year, according to the Ministry of Trade, Industry and Energy.The July figure marked a record 19th straight month that exports decreased since January 2015.The double-digit fall came after on-year declines of 5.9 percent and 2

Aug. 1, 2016

Korea's current account surplus hits record high in June

South Korea's current account surplus soared to a record high in June as an increased surplus in the goods balance helped offset a widening service account deficit, data showed Monday.The current account surplus reached $12.17 billion in June, compared with an $11.87 billion surplus from a year earlier, according to the provisional data released by the Bank of Korea.The current account is the biggest measure of cross-border trade.The June figure is the highest since 1980, when the central bank b

Aug. 1, 2016

Five banks sell more property assets in H1 amid low margins

South Korea's five major banks sold property assets worth nearly 75 billion won ($67 million) in the first half, far exceeding the 70 billion won for the whole of last year, data from the banks showed Sunday.The move is part of their efforts to ride out declines in their net interest margins, which measure how much a bank earns from its loan and securities portfolios, amid record-low interest rates, bank officials said."Faced with ever-declining interest rates, banks felt the need to cut costs b

July 31, 2016

4 of 10 Korean firms expect worse business conditions in H2

Nearly 4 out of every 10 major South Korean companies expect their business conditions to further deteriorate in the remainder of the year, while more than 4 in 10 said their H1 earnings fell short of earlier expectations, the outcome of a recent survey released Sunday showed.In a survey conducted by the Federation of Korean Industries, 38.7 percent of respondents said they expected their annual earnings to fall short of earlier expectations.The survey was conducted on the country's top 600 comp

July 31, 2016

Average monthly wage 3.13 mln won in May

The average monthly wage of a regular worker at a business with more than five employees stood at 3,133,000 won ($2,796) in May, up 2.9 percent from a year ago, the labor ministry said Friday. That of a temporary worker or day-worker posted 1,431,000 won in that month, up 2.3 percent on year, the ministry said, citing the outcome of its latest survey of some 25,000 businesses in all industries except agriculture.                      Workers in finance and insurance earned the most at 5,367,000

July 29, 2016

Seoul shares end lower after BOJ's disappointing decision

South Korean shares closed lower Friday as investors remained cautious following the disappointing stimulus measures made by the Bank of Japan. The Korean won rose against the U.S. dollar.After choppy trading, the benchmark Korea Composite Stock Price Index lost 4.91 points, or 0.24 percent, to 2,016.19. Trade volume recorded 361.38 million shares worth 4.96 trillion won ($4.42 billion), with decliners outnumbering advancers 457 to 350Local shares started higher after the U.S. Federal Reserve on

July 29, 2016

Rent contributes most to inflation since 2013

[THE INVESTOR] Rent has become the biggest contributing factor to inflation since 2013, a Bank of Korea report showed on July 29.According to the report, rent has come to account for 0.36 percentage points of the 1.1 percent consumer price rise recorded between the beginning of 2013 and June this year. In comparison, rent accounted for 0.29 percent of the inflation rate of 3.1 percent recorded for 2006 to 2012 period. The changes are thought to have been fueled by the spike in residential proper

July 29, 2016

BOK sees higher growth in 2017

[THE INVESTOR] South Korea’s economy will grow at a slightly higher pace in 2017, the Bank of Korea projected.In the monetary policy report submitted to the National Assembly on July 29, the BOK said that next year will see a small increase in growth rate compared to the upper 2 percent range forecast for this year. “The domestic economy is following an improving trend since the first quarter, but due to increasing uncertainties at home and abroad, growth rate for the year will be in the higher

July 29, 2016

FSC urges banks to refrain from competitive debt collection

[THE INVESTOR] South Korea’s top financial regulator on July 29 urged domestic lenders to stop their “indiscriminate” debt collection practices against firms that are sensitive to economic upheavals, saying excessive attempts to do so could heighten their instability.“If lenders competitively mount pressure on firms to repay their debt, it will be difficult for them to maintain financial stability,” Financial Services Commission Chairman Yim Jong-yong said during a meeting with heads of policy a

July 29, 2016

BOK to maintain low rates

[THE INVESTOR] The Bank of Korea said on July 29 that it will maintain the low benchmark rate in light of the slow economic growth rate expected in the near future. The Bank of Korea.In a report submitted to the National Assembly, the central bank said that the current monetary policy will be maintained, citing the low growth rate and projections that inflation will fall short of the target. The central bank said that the country’s monetary policy will be implement with the aim of raising inflat

July 29, 2016

Korean shares up in late morning trading

South Korean shares traded a tad higher late Friday morning, led by tech shares.The benchmark Korea Composite Stock Price Index inched up 2.09 points, or 0.10 percent, to 2,023.19 as of 11:20 a.m.Market bellwether Samsung Electronics jumped 2.65 percent. A day earlier, the tech giant announced its biggest quarterly operating profit in more than two years.      Auto shares were mixed, with market leader Hyundai Motor decreasing 2.50 percent while its smaller affiliate Kia Motors inching up 0.24 p

July 29, 2016

Seoul shares open higher on tech gains

South Korean stocks opened higher Friday, led by gains in tech shares.The benchmark Korea Composite Stock Price Index added 3.62 points, or 0.18 percent, to 2,024.72 in the first 15 minutes of trading. (123rf)Tech shares gained, with Samsung Electronics increasing 1.59 percent and top chipmaker SK hynix jumping 2.09 percentAuto shares were mixed, with market leader Hyundai Motor decreasing 0.37 percent while its smaller affiliate Kia Motors increasing 0.47 percent.The local currency was trading

July 29, 2016

Agricultural and fisheries ministries to request review of anti-graft law

[THE INVESTOR] South Korea’s two ministries overlooking agriculture and fisheries on July 28 said they would request the Ministry of Government Legislation’s policy coordination committee to make adjustments to the anti-graft law that will be implemented in September.The Ministry of Agriculture, Food and Rural Affairs and the Ministry of Oceans and Fisheries announced their decision shortly after the Constitutional Court ruled the refuted clauses of the law -- also known as the Kim Young-ran law

July 28, 2016

Constitutional Court subjects journalists, private school faculty to new anti-graft law

[THE INVESTOR] The constitutional court of South Korea on July 28 ruled that a controversial anti-graft law set to be implemented later this year is “constitutional” to subject journalists and private school teachers to the legislation.The court also ruled that it was constitutional for the new law to place a limit on the goods and services that these individuals may be treated to. 123rfThe law currently stipulates a maximum penalty of three years or more in prison, or fines of five times the am

July 28, 2016

Korea to widen tax credits to boost investment, consumption

South Korea set out new tax code revisions Thursday, seeking to boost corporate investments in new future industries and household income and spending to cope with faltering exports and flaccid domestic demand.The government finalized the plan at a meeting chaired by Finance Minister Yoo Il-ho in Seoul, and will submit the bill to the National Assembly by Sept. 2 for approval.It is expected that the new tax code, which includes streamlining tax regulations, will result in 317.1 billion won ($281

July 28, 2016

Special tax rate for foreigners to be raised, extended until 2019

[THE INVESTOR] The special income tax rate for foreign nationals will be extended until the end of 2019, but raised by 2 percentage points, the government announced on July 28.According to the tax revision announced by the Ministry of Strategy and Finance, the special income tax rate for foreigners will remain in place until the end of 2019 at the raised rate of 19 percent. Foreign nationals working in Korea can choose to be taxed at the special rate for five years from the date their Korea-base

July 28, 2016

Seoul to require detailed tax data from multinational firms

[THE INVESTOR] South Korea will require multinational corporations to submit business records including those regarding taxation, as part of its efforts to curb tax evasion. According to the revised tax rules, South Korea will comply with the international Base Erosion and Profit Shifting project and require multinational firms with annual revenues exceeding 1 trillion won (US$889 million) to submit detailed records.                                                                                

July 28, 2016

Korean firms' business sentiment worsens for Aug.

A majority of large South Korean firms expect their business conditions to further deteriorate next month due to weak demands at home and abroad, a survey showed Thursday.The business survey index came to 89.5 for August, down from 90.5 for this month, according to the Federation of Korean Industries.The monthly index is based on a survey of top 600 companies here in terms of sales. A reading below 100 means pessimists outnumber optimists while a reading above the benchmark means the opposite.Th

July 28, 2016