Concerns raised as N.K falls deeper into isolation

[THE INVESTOR] With North Korea seen as plunging deeper into isolation, concerns are growing over the absence of communication channels with Pyongyang and possible military provocation stemming from miscalculations. Pyongyang’s state media said on July 11 it will “completely” shut down its telephone line with the U.S. in New York in protest against Washington’s recent sanctions on North Korean leader Kim Jong-un over human rights abuses. The so-called New York channel, based in the communist sta

July 12, 2016

Seoul on alert for possible economic reprisal from China over THAAD

[THE INVESTOR] South Korean presidential office is closely monitoring trade with China for possible economic reprisal from China over the deployment of Terminal High Altitude Area Defense system. Speaking to reporters at the presidential office, chief presidential economic advisor Kang Seok-hoon, said that the government is “closely monitoring the situation” in response to questions regarding possible economic retaliation from China. Since Seoul and Washington announced the decision to deploy TH

July 12, 2016

S. Korea’s growth rate to drop further in 2016, 2017: think tank

[THE INVESTOR] South Korea’s economic growth rate will come in at 2.5 percent this year, at drop further in 2017, a think tank projected on July 12. In its second half outlook report, the LG Economic Research Institute projected a growth of 2.1 percent for the final stretch of the year, bringing the annual average to 2.5 percent. For 2017, LGERI projected a growth rate of 2.3 percent. The government’s economic growth rate projection for 2016 is 2.8 percent. The report forecast that dropping expo

July 12, 2016

FM says S. Korea’s growth rate will drop more without supplementary budget

[THE INVESTOR] South Korea’s economic growth rate will drop to about 2.5 percent without supplementary budget, Finance Minister Yoo Il-ho said on July 12.Speaking to the parliamentary Special Committee on Budget and Accounts, Yoo, who doubles as deputy prime minister for economic affairs, said that if the government is not granted the supplementary budget, the country’s growth rate will hover around 2.5 percent.Finance Minister Yoo Il-hoHe said that the ministry will submit the supplementary bud

July 12, 2016

Korean gov’t tax revenue rises W19tr in first 5 months

[THE INVESTOR] South Korean government’s tax revenues for the first five months of the year has increased by 19 trillion won (US$ 16.50 billion) from a year ago, boosted by improvements in consumer spending and the property market. According to data released by the Minister of Strategy and Finance, the government collected 112.7 trillion won in taxes during the first five months of the year. In comparison, the figure for the same period last year was 93.7 trillion won. The Finance Ministry said

July 12, 2016

[Graphic News] Korea‘s tourism deficit edges up this year

Korea has seen its deficit from tourism inch up in the first five months of the year, central bank data showed Sunday.The tourism deficit reached $1.49 billion in the January-May period, up 1.3 percent from the $1.47 billion from the same period last year, according to the data by the Bank of Korea.The BOK attributed the continued deficit of the industry to an increasing number of Koreans going abroad on vacation due to cheap airfare. The number of Koreans who traveled abroad came to 8.85 millio

July 11, 2016

THAAD casts shadow on exports recovery

[THE INVESTOR] South Korea’s decision to deploy the U.S. missile defense system here will likely have repercussions on the country’s trade with China, casting a shadow on its exports prospects, experts said on July 11. Many analysts were cautious to predict how this highly-political issue will play out on the trade front, but investor reactions on Seoul bourses were pretty obvious: key China-sensitive stocks fell, led by Hana Tour and cosmetics maker LG Household & Healthcare. Korea’s Finance Mi

July 11, 2016

FM warns against possible retribution from China on THAAD decision

[THE INVESTOR] South Korean Finance Minister Yoo Il-ho called on the country to stay vigilant against possible economic retaliation from China on Seoul for reaching an agreement with Washington to deploy the Terminal High Altitude Area Defense anti-missile system in South Korea to step up defense against North Korea’s military provocations. “We believe Beijing will make a conscious decision to keep the economy and politics separated, but we are nevertheless establishing contingency plans,” Yoo t

July 11, 2016

THAAD casts shadow on exports recovery

South Korea’s decision to deploy the U.S. missile defense system here will likely have repercussions on the country’s trade with China, casting a shadow on its exports prospects, experts said Monday. Many analysts were cautious to predict how this highly-political issue will play out on the trade front, but investor reactions on Seoul bourses were pretty obvious: key China-sensitive stocks fell, led by Hana Tour and cosmetics maker LG Household & Healthcare. Korea’s Finance Minister, however, se

July 11, 2016

Watchdog probes overpricing allegations against Yuhan Kimberly

[THE INVESTOR] The Fair Trade Commission has launched an investigation into Yuhan Kimberly on allegations that it is overpricing sanitary pads. Yuhan-Kimberly is a joint venture between Korean pharmaceutical and chemical firm Yuhan Co. and Kimberly-Clark of the US. The antitrust watchdog is looking into whether it can apply laws banning companies from abusing their market dominant position when deciding on product prices. FTC head Chung Jae-chan“We are looking into the matter, and because the in

July 11, 2016

S. Korea to issue W1tr Treasury bills

[THE INVESTOR] The government will issue 1 trillion won (US$ 871.5 billion) in Treasury bills, the Ministry of Strategy and Finance announced on July 11. The T-bills will be issued in two equal batches on July 20 and July 27. Including the bills that will be issued later this month, the value of outstanding T-bills will stand at 4 trillion won. By Choi He-suk (cheesuk@heraldcorp.com)

July 11, 2016

July exports bode ill for S. Korea’s trade

[THE INVESTOR] South Korea’s July exports so far have plunged 21.6 percent from a year ago, fueling worries that exports will continue to spiral in the second half of the year. According to the Korea Customs Service, exports between July 1 and July 10 came in at about US$ 10.35 billion, down 21.6 percent compared to the same period last year. From Jan. 1 to July 10, the country’s exports dropped 10.5 percent from a year ago to come in at US$ 252.1 billion. Until June, South Korea’s monthly expor

July 11, 2016

More salaried workers adding income from outside of jobs

A growing number of salaried workers are making extra money from means other than their main jobs, subjecting them to higher state health insurance payments, statistics from health authorities showed Monday.According to the statistics, 39,143 workers were ordered to pay more insurance money in 2015 because of the income they gained from business operations, dividends, leases and other non-job sources, numbers provided by the Ministry of Health and Welfare and the National Health Insurance Servic

July 11, 2016

BOK expected to hold policy rate steady in July: poll

South Korea's central bank is forecast to keep its key rate frozen in July, one month after sending it to 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, all 12 economists polled predicted the Bank of Korea to assume a wait-and-see mode, partly to gauge the effect of its latest rate cut but also because of growing household debt."The central bank will likely wait to

July 11, 2016

Parliament endorses revisions to income tax exemptions

The parliament agrees with the government that the current income tax exemptions need to be overhauled to create a stronger tax base, a report said Monday.The report by the National Assembly's committee on budget and accounts assessing the 2015 fiscal year noted how the proportion of non-taxpayers was increasing from broadened exemptions over the past years. According to the report, 48 percent of income earners did not pay taxes in 2015, about the same as the previous year.The non-tax paying pop

July 11, 2016

[Graphic News] Samsung heir’s stock assets tumbled 20% this year

Stock assets owned by Samsung Electronics vice chairman Lee Jae-yong suffered the biggest decline among the country’s 50 richest people this year, according to Seoul-based corporate tracker Chaebul.com.Lee‘s stock assets were worth 6.39 trillion won as of this month, down about 20 percent from 7.61 trillion won in January. The sluggish performance of major Samsung affiliates was the primary cause of the fall. The stock assets of Lee’s two sisters -- Boo-jin, CEO of Hotel Shilla and Seo-hyeon, CE

July 10, 2016

Richest 50 Koreans see stock assets fall

The wealth of Korea's 50 richest people by stock assets fell sharply this year, mostly led by the three children of Samsung Group Chairman Lee Kun-hee due to the slumping equity of major affiliates, industry data showed Saturday. The combined equity value of the 50 wealthiest people was tallied at 151.43 trillion won (US$130.88 billion) as of Friday, wiping out 2.65 trillion won from Jan. 4, according to the data compiled by Seoul-based corporate tracker Chaebul.com.Lee Jae-yong, the vice chairm

July 10, 2016

Korean stocks forecast to remain range bound next week

Korean stocks are expected to remain in a tight range, though they may see upward movement on eased woes from Europe, local analysts said Saturday.The benchmark Korea Composite Stock Price Index  closed at 1,963.10 on Friday, down 1.2 percent from a week earlier.The index took off on an upbeat note at the start of the week after recovering from a near crash sparked by Britain's vote to leave the European Union in the previous week.Profit-taking behaviors later faced downward pressure, prompting

July 10, 2016

Finance Minister promises preemptive response to Brexit

[THE INVESTOR] South Korea will prepare for the possible impact of UK’s departure from the European Union through stronger international cooperation and stable management of foreign reserves, Finance Minister Yoo Il-ho said on July 8.Speaking at a meeting of economy-related ministers in Seoul, Yoo, who also doubles as deputy prime minister for economic affairs, said that the government will maintain healthy foreign reserves, saying that it was the “last bastion” for Korean economy.Finance Minist

July 8, 2016

Seoul to consider possible Korea-UK FTA

[THE INVESTOR] South Korea will review opening free trade agreement negotiations with the UK, and to work with the European Union to minimize the impact of Brexit, should the decision be finalized. These and other measures for responding to the fallout from UK’s June 24 referendum were discussed at the meeting of economy-related ministers held on July 8. Pixabay.comAt the meeting, the attending ministers said that the impact of the UK leaving the EU will be analyzed and that the government will

July 8, 2016