Korean finance minister refutes Trump's attack on FTA

Korea's chief economic policymaker said Thursday benefits from the free trade agreement with the United States far outweigh the disadvantages, refuting opponents' arguments that the bilateral pact has hurt the American economy and jobs. "Despite the fact that the KORUS FTA has brought enormous benefits to consumers and investors of the two countries, it is no secret that some criticize it based on the increased U.S. current account deficit," Finance Minister Yoo Il-ho said during a meeting with

June 30, 2016

[Herald Interview] Expert sees more reasons for Korea Discount

Korea Inc. is in a generational transition. From Lee Kun-hee to Lee Jae-yong at Samsung and from Chung Mong-koo to Chung Eui-sun over at Hyundai Motor, Korea’s top business groups are preparing for father-to-son transfers of ownership and managerial control.  This, according to corporate-governance expert Kim Woo-chan, poses a greater risk to global investors considering Korean stocks.               Kim Woo-chanThe “Korea Discount” -- lower equity valuations of Korean companies due partly to pas

June 30, 2016

Korean gov’t to restrict overseas projects by state-run energy firms

[THE INVESTOR] The South Korean government will tightly restrict state-run energy firms’ new investment in overseas resource development in the midst of low oil prices as the government pushes for sweeping restructuring efforts, the Ministry of Trade, Industry and Energy said on June 30. The ministry will strengthen monitoring on loss-making overseas assets of public energy firms such as the Korea National Oil, the Korea Gas and the Korea Resources. “All their oversea assets will be subject to t

June 30, 2016

Korea needs bold deregulation to spur growth

South Korea should ramp up efforts to ease regulations on its labor, corporate and financial sectors to help stimulate the sputtering economy, an expert said Thursday."The level of deregulation for the sectors has not improved much over the past 14 years," Choi Jin-woo, a professor who teaches at Korea University in Seoul, said at a seminar. "The country should push for stronger deregulation to induce tangible economic growth."The Korea Economic Research Institute under the Federation of Korean

June 30, 2016

Korea’s industrial output picks up in May

 [THE INVESTOR] South Korea’s industrial output swung back to growth in May on the back of increased production in chips and petroleum products, a government report showed on June 30. According to Statistics Korea, total output increased by 1.7 percent from April, reaching an all-time high in 15 months. It jumped 4.8 percent from May 2015. Pixabay.comThe mining, manufacturing, gas and electricity industries led the increase, logging an output growth of 4.3 percent last month from a year ago. It

June 30, 2016

[Graphic News] Female job quality remains low

The job quality of Korean women still remains low compared to their male counterparts, although the female employment rate edged up slightly last year, data showed Monday.Statistics Korea said in its compiled report that among all female employees, 40.3 percent were irregular workers as of March this year, while the figure for men stood at 25.5 percent.In terms of salary, a female worker was paid an average 1.78 million won ($1,530) a month last year, 62.8 percent of that of men in the country.

June 29, 2016

Korean, British, EU diplomats hold talks on Brexit

Senior diplomats of Korea, Britain and the European Union held talks Wednesday to coordinate their response to Britain's decision to leave the EU.The three-way meeting came as Seoul has been taking measures to stem any fallout from "Brexit" after the British people voted in a referendum Thursday to leave the 28-member bloc.First Vice Foreign Minister Lim Sung-nam, who formerly served as Seoul's top envoy to London, said Korea respects the decision of the British people."But regardless of the out

June 29, 2016

[Herald Interview] Busan-Jinhae FEZ closer to becoming global business hub

Once a wasteland, the Busan-Jinhae Free Economic Zone in South Gyeongsang Province is now closer to its goal of becoming a global business and logistics hub, a top official said.With a land area of 51.2 square kilometers, Busan-Jinhae FEZ is a specially designated region to attract foreign investment in order to strengthen competition for businesses by supporting regional development and improving the business environment as well as living conditions. Busan-Jinhae FEZ Commissioner Jin Yang-hyun

June 29, 2016

Korean foreign minister calls for closer economic ties with Latin America

South Korea's foreign minister on Wednesday called for closer economic cooperation with Latin American countries, saying distance is no longer an issue in the modern era.Yun Byung-se made the remarks during the Korea-Latin America Partnership forum which is expected to bring together more than a 1,000 government officials, businessmen and students from both sides over the next three days."Central and South America form an important pillar in our promotion of connectivity through global networkin

June 29, 2016

Korea's medicine exports jump 22 pct in 2015

Medicine exports by Korean pharmaceutical firms jumped by 22 percent in 2015 from a year earlier, the biggest on-year rise in five years, data showed Wednesday.Outbound shipments of locally manufactured medicines stood at $2.94 billion last year, up 22 percent from the previous year, according to the data by the Ministry of Food and Drug Safety. Local pharmaceutical firms produced US$16.96 billion worth of medicines in 2015, up 3.4 percent from a year earlier, they showed.Medicine exports have b

June 29, 2016

Calls rise for reworking tax breaks for foreign-invested firms

Questions are being raised about the relevance and effects of extensive tax breaks given to foreign-invested companies in the country.Critics say a wide range of tax benefits for foreign-invested enterprises have done little to help spur the Korean economy in recent years, causing local firms to be subject to what they call reverse discrimination.At a public hearing hosted by the Korea Institute of Public Finance in Seoul last week, participants called for changes in the current system of provid

June 29, 2016

Lending rates on household loans decline in May

Bank lending rates on new household loans dropped from a month earlier in May, central bank data showed Wednesday.However, interest paid by banks on fresh deposits fell at a faster clip, further widening the gap between the interest rates paid to and by local banks.The average interest rate on fresh household loans came to 3.16 percent in May, down 0.01 percentage point from the previous month, according to the data from the Bank of Korea.The May reading marked the second consecutive month of dr

June 29, 2016

Seoul shares extend gains in late morning trade

Korean shares extended gains late Wednesday morning as investors speculate that there will be concerted global efforts to shore up markets reeling from the post-Brexit rout.The benchmark Korea Composite Stock Price Index rebounded for three straight sessions to rise 23.54 points, or 1.22 percent, to 1,959.76 as of 11:20 a.m., after shedding 3.38 percent from Thursday to Friday. The local stock market is also buoyed by the government's fiscal stimulus package worth 20 trillion won announced Tuesd

June 29, 2016

Effect of tax cut tapers off in car sales

Growth in Korea's auto market tapered off this year despite a consumption tax cut program on passenger cars, industry data showed Wednesday.Korean and foreign carmakers sold a combined 637,369 units in the first five months of this year, up 8.3 percent from 588,541 units from the same period last year, according to the data compiled by the Korea Automobile Manufacturers Association and the Korea Automobile Importers and Distributors Association.In comparison, a total 594,457 passengers cars were

June 29, 2016

Think tank cuts Korea's growth outlook on external woes

The Korean economy is expected to grow at a slower pace this year than initially estimated due to Britain's vote to leave the European Union and other unfavorable external factors, a leading private think tank said Wednesday.In its latest economic report, the Korea Economic Research Institute lowered its 2016 growth outlook for Asia's fourth-largest economy to 2.3 percent from an earlier 2.6 percent.The economy is projected to expand 2.7 percent in the first half of this year from a year earlier

June 29, 2016

Korea's manufacturing sentiment dips to 3-month low for July

Korean manufacturing companies' business sentiment worsened for July from a month earlier with more firms expecting worse conditions for domestic sales, central bank data showed Wednesday.The business survey index of manufacturing firms here came to 72 for the upcoming month, down from 74 for June, according to the Bank of Korea.The BSI for July marks the lowest level since 70 registered for April. A reading above 100 means optimists outnumber pessimists while a reading below the benchmark means

June 29, 2016

Korea needs W26tr in extra budget: think tank

[THE INVESTOR] Korea will need as much as 26.6 trillion won ($22.5 billion) in supplementary budget to weather negative elements from external and internal economic conditions, a think tank said on June 26. In a report published on June 26, Hyundai Research Institute said that Korea needs between 11.5 trillion won and 26.6 trillion won in supplementary budget to offset negative factors at home and abroad. According to the report, Korea has about 113 trillion won remaining in this year’s budget t

June 28, 2016

Market rebounds on Korea’s plan for extra spending

Investor confidence was restored Tuesday with the market responding positively to the South Korean government’s plan for extra spending in the second half of this year to cushion the economy from internal and external shocks.The benchmark KOSPI edged up 0.49 percent at 1,936.22 on continued institutional buying, after opening with a loss following overnight selloffs on Wall Street. (Yonhap)But the Seoul equity index soon headed for an upswing as the Finance Ministry announced that it will aggres

June 28, 2016

N. Korea pushes clean energy development to earn currency

[THE INVESTOR] North Korea is pushing to embrace renewable energy such as solar and wind to address the country’s power shortage issues and make profit by selling tradable carbon emissions credits, according to a think tank’s report published on June 28.The country seeks to develop green energy and reduce greenhouse gases by ratifying laws related to environment protection and waste management, the study conducted by Hyundai Research Institute said. Currently, the North Korean government is carr

June 28, 2016

[H2 ECONOMIC POLICY] Gov’t to focus on boosting international trade in H2

[THE INVESTOR] The Korean government will introduce measures to improve trade conditions during the second half of the year, the Ministry of Strategy and Finance said on June 28.The ministry said that the government will actively respond to regional trade pacts such as the Trans-Pacific Partnership, and take steps to maximize the benefits of existing bilateral free trade agreements. The government will also draw up a US$25 billion support package to aid Korean firms win contracts in Iran, and ra

June 28, 2016