S. Korean economy burdened by slow employment, external factors

[THE INVESTOR] South Korean economy continues to be plagued by a sluggish labor market despite improving domestic spending, the Ministry of Strategy and Finance said in a report on July 8.According to the report, consumer spending is on the rise, but the rate at which employment is rising has dropped and industrial output has yet to recover fully.  Job fair sponsored by a South Korean companayThe ministry also said that UK’s departure from the European Union and other domestic and international

July 8, 2016

Consumption pickup offsets steady slump in export, output: gov't report

The South Korean economy continues to be on a downward slope due to a slump in exports and industrial production despite an apparent uptick in private consumption, a government report showed Friday."Consumption is showing some signs of recovery, but the production side has remained in the doldrums, with a slowdown in employment," the finance ministry said in its monthly economy assessment report called the "Green Book."The report is based on the latest economic indicators of such key factors as

July 8, 2016

More people paying maximum for health insurance as affluent population rises

The number of people paying the maximum for state-run health insurance, about 2.3 million won (1,990) a month, is increasing each year, health authorities said Friday, a sign that the number of rich people in South Korea is rising. Records from the Ministry of Health and Welfare and the National Health Insurance Service showed the number of the employed paying the maximum totaled 3,130 as of April, up from 2,508 in 2012. The number for the unemployed increased to 577 from 359.The employed group

July 8, 2016

[Graphic News] College graduates’ top choice in job hunt: Naver

For the second consecutive year, college graduates who are seeking jobs have picked the nation’s Internet portal giant Naver as the employer they most want to work for, according to a survey by Internet recruiting service Incruit on Thursday.Naver was followed by food giant CJ Cheiljedang, cosmetics maker AmorePacific and Samsung Electronics.Incruit officials said respondents seem to think that when it comes to job seeking, a company’s vision and job stability are more important than high wages.

July 7, 2016

Thriving underground economy presents terrorism financing threat

[THE INVESTOR] South Korea’s growing underground economy may pose vulnerability to terrorism financing, according to experts. “The size of the Korea’s underground economy is large, about 30 percent of the total gross domestic product,” Kang Kyung-hoon, a professor at Dongguk University, said at a public hearing on the danger of money laundering in Korea, hosted by the Korea Institute of Finance on July 7.  “Terrorism funds have been rarely generated (in Korea), but the danger still persists.”The

July 7, 2016

Government, new Saenuri leadership meet to renew ties　

[THE INVESTOR] The presidential office, the ruling party, and the government met Thursday, seeking to cooperate over economic revitalization and to cement relationships in the new parliamentary term.Key officials of the Saenuri Party, the Cabinet and Cheong Wa Dae met at Prime Minister Hwang Kyo-ahn’s official residence for the first tripartite gathering since the 20th National Assembly kicked off on May 30.From the Blue House, the recently appointed presidential Chief of Staff Lee Won-jong part

July 7, 2016

Park urges investment for new growth

South Korean President Park Geun-hye urged her key policymakers and industry executives to come up with deregulatory policies and take risks by investing in technology for new businesses.In a trade and investment promotion meeting presided over by the president at Cheong Wa Dae on Thursday, Park said that the time is ripe for the country to be aggressive and create new growth through creativity and technology.“The very best way to spur investment and exports is to continuously pioneer in new mar

July 7, 2016

Chinese tourists are biggest foreign shoppers in Seoul: survey

Chinese tourists are the biggest shoppers in Seoul by spending an average of more than 2 million won ($1,730) per person on purchases, a think tank survey on foreign shopping in the country's capital said Thursday. According to the outcomes of the poll of 1,045 foreign tourists who visited the capital last December, they spent an average 1.06 million won each on shopping. The Seoul Institute conducted the survey. Chinese tourists were the biggest spenders with 2.13 million won per capita on aver

July 7, 2016

Gov't to offer funds, tax benefits for VR industry

Korea announced a package of measures Thursday to foster its virtual reality industry, which includes direct financial support and tax incentives.The government will create 40 billion won ($34.5 million) of special funds, 20 billion won this year and the rest in 2017, for small and medium-sized firms immersed in developing VR gear and content.The VR sector will be added to the list of "new industries" eligible for tax credits of up to 30 percent for research and development projects.The decision

July 7, 2016

Gov't to promote private investments in newly emerging industries

The government on Thursday announced a fresh set of measures, deregulations and tax rewards to stimulate private investments in newly emerging industries, such as pet care services and halal food and culture.In a pan-government trade and investment promotion meeting chaired by President Park Geun-hye, relevant ministries unveiled new policy efforts to encourage the private sector to invest approximately 4 trillion won ($3.4 billion) in the promising industries."The government has been making eff

July 7, 2016

Supermarket chains slow in growth recovery

Leading super supermarkets are expected to report blunted growth in June, going against expectations of a big pickup from last year, when the nationwide scare from a respiratory disease cramped sales, according to industry sources Thursday.Although not official, all three major supermarket chains -- Lotte Mart, E-Mart and Homeplus -- are estimated to have suffered either negative or miniscule at best growth in June compared with the same month last year.Sources at Lotte Mart put June's growth at

July 7, 2016

Trade agency urges enhance energy cooperation with Mongolia

Korea and Mongolia must work to enhance their economic cooperation, especially in the energy and natural resources sector, to help ensure the countries' joint development, a trade promotion agency said Thursday.In a report, the Korea Trade-Investment Promotion Agency or KOTRA insisted now was the right time for South Korea to boost its investment in the East Asian country as Mongolia is increasingly opening up its energy market in the face of a prolonged slump."Mongolia is a high-risk market tha

July 7, 2016

Korean stocks open higher on tech rally

Korean shares opened higher Thursday as an earnings surprise from tech giant Samsung Electronics boosted investor sentiment here.The benchmark Korea Composite Stock Price Index added 16.65 points, or 0.85 percent, to 1,969.77 in the first 15 minutes of trading.The sharp increase came as Samsung said its Q2 operating income was estimated at 8.1 trillion won ($6.99 billion), greatly surpassing the earlier market consensus of 7.32 trillion won.On Wednesday, the local stock market plunged 1.85 perce

July 7, 2016

Koreans report record amount of inheritance, gift tax in 2015

[THE INVESTOR] South Koreans have declared a record amount of inheritance, gift tax last year, the National Tax Service said on July 5. According to the NTS’ report, Korean people filed a total of 2.189 trillion won (US$ 1.9 billion) in inheritance tax in 2015, a 32.5 percent increase from the previous year. A total of 5,452 people received inheritance, an increase of 13.8 percent on-year.The gift tax stood at 2.362 trillion won last year, up 25.8 percent from the previous year. A total of 98,04

July 6, 2016

FM promises gov’t intervention in case of economic crisis

[THE INVESTOR] The government will intervene should external risks facing the South Korean economy be realized, Deputy Prime Minister Yoo Il-ho said on July 6.Speaking at the conference on government finances held in Seoul, Yoo said that the government will intervene if the Korean economy is hit by external factors. Finance Minister Yoo Il-ho“If external risks are realized, state finances (will be used) to overcome the crisis as it was in the past,” Yoo said. He added that concerned ministries m

July 6, 2016

Industrial restructuring holds key to boosting growth potential

Korea needs to accelerate industrial restructuring and deregulation as its growth potential continues to weaken, many economists here say.According to the Ministry of Strategy and Finance, the Korean economy grew by 0.5 percent from a year earlier in the first quarter of this year and fiscal spending made a 0.5 percent contribution to the quarterly growth. This means that Asia’s fourth-largest economy would have barely grown in the cited period without measures to expand fiscal expenditure.The g

July 6, 2016

Korean economy has weak recovery momentum due to faltering exports: KDI

The Korean economy is showing flaccid recovery momentum as weak exports and sluggish investment offset a modest rise in private consumption, a state-run think-tank said Wednesday."The slowdown in production-related indicators moderated, but the upward momentum in overall economic activities has been insignificant," the Korea Development Institute said in its monthly evaluation of the country's economic conditions."However, exports and facilities investment remained in a slump, while the manufact

July 6, 2016

Korean shares down 2.05% in late morning trade

Korean stocks plunged 2.05 percent late Wednesday morning as fears sparked by Britain's decision to leave the European Union spooked investors again, while some sought to cash in part of recent gains.The benchmark Korea Composite Stock Price Index plunged 40.89 points to 1,948.96 as of 11:20 a.m.Foreigners appeared to be exiting the local market with a fervor, dumping 236.9 billion won ($202.7 million) worth of local stocks. The decline also followed overnight losses on Wall Street.The Dow Jones

July 6, 2016

Gold reaches record high in morning trading

[THE INVESTOR] Prices on Korea Exchange’s gold spot market rose to a record high on July 6, fanned by uncertainties in the international financial markets. At 10:10 a.m., gold was trading at 51,213.65 won (US$ 44) per gram. The previous high was 50,520 won per gram recorded on June 27, the first day of trading since UK’s referendum on leaving the European Union. 　By Choi He-suk (cheesuk@heraldcorp.com)

July 6, 2016