BOK governor says uncertainties will grow in 2H

[THE INVESTOR] Bank of Korea Gov. Lee Ju-yeol said on June 22 that the Korean economy is expected to see increasing external and internal uncertainties in the second half of the year. He pointed out that the UK’s referendum result on Britain’s exit from the European Union could further spur volatility in global financial market, during a meeting with economic experts held at the central bank’s headquarters in Seoul. Bank of Kora Gov. Lee Ju-yeol. The InvestorLee also expressed concerns that the

June 22, 2016

Gov't spending more than planned by May: finance ministry

The South Korean government has exceeded its planned fiscal spending earmarked for the first five months of the year as part of its efforts to stimulate the sluggish economy, the finance ministry said Wednesday.The government earlier announced that it would spend some 60 percent of this year's 280 trillion won ($242 billion) budget set aside for the central government in the first half in order to get over tough challenges at home and abroad.The Ministry of Strategy and Finance said it has execu

June 22, 2016

People's Party head urges opening special committee on job creation

Ahn Cheol-soo, the co-chairman of South Korea's minor opposition People's Party, said Wednesday the National Assembly should establish a special committee on creating jobs to meet the changing industrial scope and deal with the soaring unemployment among youths."The fourth-industrial revolution is a huge challenge and opportunity for us," Ahn, an entrepreneur-turned-politician, said during his speech at the National Assembly. "The National Assembly should take the lead in kicking off the special

June 22, 2016

Samsung Electronics to lead Q2 earnings growth: analysts

[THE INVESTOR] Korea Inc. is expected to show steady growth in the second quarter but only if Samsung Electronics is included in the club. Local securities firms have revised up their projections for aggregate operating profit of 172 companies listed on the benchmark KOSPI to 33.83 trillion won (US$29.2 billion) as of June 22, up 1.67 percent from their forecast a month earlier. “The burden of KOSPI’s high valuation has been eased as major companies’ Q2 revenue forecasts have continuously increa

June 22, 2016

Private donations slip amid economic slump

South Koreans donated less money in 2014 as more people felt the pinch of the prolonged economic slump, while companies donated more to charities, data showed Wednesday. Total donations were tallied at 12 trillion won ($10.3 billion) in 2014, retreating from 12.47 trillion in 2013, the National Tax Service said. It was the first time that the amount has contracted since tax authorities compiled the data in 2006.The amount of donations has steadily increased from 8.14 trillion won in 2006 to 9.61

June 22, 2016

Top biz groups' overseas sales fall 7.4% in 2015

South Korean business groups saw their overseas sales drop last year as low oil prices and a prolonged economic slowdown have shrunk demands in major markets, industry data showed Wednesday. The combined sales of 1,022 firms under the top 30 business groups generated at home and abroad came at 1,231 trillion won ($1.06 trillion) in 2015, down 6.3 percent from a year ago, according to data compiled by corporate tracker CEO Score. Sales in foreign markets decreased at a faster pace than those in t

June 22, 2016

Households see share of insurance, pension assets hit new high

South Korean households saw their insurance and pension assets reach a new high in 2015, data showed Wednesday, as they increased such assets to better prepare for old age amid low interest rates.According to the data by the Bank of Korea and the Hana Institute of Finance, local households' insurance and pension assets came to 989 trillion won ($857 billion) as of the end of last year, accounting for 31.1 percent of their total financial assets.The percentage was a fresh all-time high. The ratio

June 22, 2016

BOK chief warns uncertainties will continue to rise

The head of South Korea's central bank on Wednesday noted that financial and economic uncertainties remain high at home and abroad, and will likely rise for some time, demanding what he called cautious monetary and financial policies.Citing a recent newspaper report, the Bank of Korea governor said the only thing central banks are certain of are high uncertainties."Uncertainties at home and abroad are continuing to increase, and they may further expand following the outcome of the upcoming vote

June 22, 2016

SM Entertainment to build culture playground in Changwon

K-pop powerhouse SM Entertainment and Changwon City, South Gyeongsang Province, will collaborate for setting up a colossal culture complex, the city mayor said on June 21.SM Entertainment along with a consortium consisting of top-tier construction companies is planning to build a nine-story complex with parking space designed to accommodate approximately 206 vehicles, near the city’s main bus terminal, Changwon Mayor Ahn Sang-soo said in a press conference.Aerial view of SM Entertainment’s cultu

June 21, 2016

Korea’s competitiveness in advanced manufacturing drops

[THE INVESTOR] Korea’s competitiveness in advanced manufacturing sector has declined over the past years, due mainly to sluggish performance in semiconductor and mobile industry, according to a report by Hyundai Economic Research Institute released on June 21. From 2010 to 2014, added value in Korea’s advanced manufacturing industry -- which includes aerospace, semiconductor, IT and pharmaceutical, among others -- declined by 4.7 percent. Japan is the only other major country that dropped, by 9.

June 21, 2016

Deposits at brokerages soar amid low rates

[THE INVESTOR] Customer deposits at Korean securities companies have surged to a new high, data showed on June 21, as investors seek high-yielding vehicles amid record-low interest rates. On June 9, the Bank of Korea slashed its key interest rate by a quarter-percentage point to 1.25 percent in an apparent bid to cushion any fallout from the ongoing corporate restructuring drive and bolster the sputtering economy.It was the first rate cut in 12 months.According to data by the Korea Exchange and

June 21, 2016

BOK collects 260 million dormant coins

[THE INVESTOR] The Bank of Korea said on June 21 it has collected more than 260 million dormant coins to turn them back into circulation. The central bank started the recollection campaign in May and people turned in some 267 million coins, worth 36.7 billion won (US$31.64 million), to convert them into banknotes. The result marks a 1.9 percent increase in the number of reclaimed coins from last year’s campaign, and a 1.4 percent rise in their combined value. BOK is making a big push to turn the

June 21, 2016

Korea scraps southeast airport project

[THE INVESTOR] The existing Gimhae Airport near Busan will be expanded instead of building a new airport. The government had reviewed plans to build a new airport in the region, with Miryang and Busan’s Gadeokdo Island thought to be the most likely sites. With the project estimated to cost as much as 10 trillion won (US$ 8.6 billion), the project has been at the center of heated debate and controversy, with critics saying the new airport could fail. By Choi He-suk (cheesuk@heraldcorp.com)

June 21, 2016

NK’s trade dependence on China grows to 91%: report

[THE INVESTOR] North Korea’s dependence on China for international trade has tripled to over 90 percent since 2000, a report showed on June 21. According to a report by Hyundai Research Institute, North Korea’s trade with China is estimated to be US$5.71 billion, accounting for 91.3 percent of Pyongyang’s US$6.25 billion trade in 2015. The figure of US$5.71 billion includes HRI’s estimate of Pyongyang’s crude oil imports from China. Pyongyang, North Korea. Young PioneerThe trade dependence figur

June 21, 2016

Exports set to continue record-long decline

[THE INVESTOR] The downward spiral for Korea’s exports will likely continue for the 18th consecutive month, data showed on June 21. According to Korea Customs Service data, exports between June 1 and June 20 came in at about US$ 25.66 billion, down 12.8 percent compared to the same month last year. The customs office said that the fall in integrated circuit exports has contributed significantly to the figure for June so far. It noted that integrated circuit exports in June fell 9.1 percent compa

June 21, 2016

Location of new southeastern airport to be announced Today

[THE INVESTOR] The location of a new airport in the country’s southeast will be announced at 3 p.m. on June 21, the Ministry of Land, Infrastructure and Transport said.The location of the new airport has been narrowed down to Miryang and Busan’s Gadeokdo Island, with the former considered to be the more likely choice. A bird's eye view of Gadekdo new airport.With the project estimated to require as much as 10 trillion won (US$ 8.6 billion), the project has been at the center of heated debate and

June 21, 2016

Nine in 10 seniors forecast to live on state pension in 2060

Nine in 10 South Korean seniors are expected to live on the state pension in 2060, when the country's national pension fund is estimated to dry up, a report said Tuesday.According to the report by the National Pension Research Institute, 91.3 percent of 17.62 million South Koreans aged 65 and older are projected to receive various state pensions in 2060.Last year, 36.4 percent of 6.78 million senior South Koreans received state pensions, but the ratio will likely soar to 41 percent in 2020, 50.2

June 21, 2016

Ruling party urges gov't to roll out 'significant' extra budget

South Korea's ruling Saenuri Party on Tuesday urged the government to provide a "significant" amount of extra budget to bolster the country's economy that is struggling with a prolonged slump."The country is facing challenges in the job market due to youth unemployment and corporate restructuring issues," the party said during its special meeting arranged to find solutions to the country's employment issues. Ministry of Strategy and Finance in Sejong City (Yonhap)"As the central bank is rolling

June 21, 2016

Pompidou Seoul branch: Culture meets economy

[THE INVESTOR] The French cultural platform Pompidou Centre is set to open a Seoul branch in March 2017 in a move that could help revitalize the Korean economy that is increasingly becoming more diverse. However, there are also doubts and concerns surrounding the plan due to the rumored royalty payment, which is expected to reach 1.5 million euros (2 billion won). The amount would be paid annually to the Paris Pompidou Centre. The Korean art industry is questioning whether the branch’s contribut

June 21, 2016

KFS strives for greener Korea with urban forests

KFS Director Lee Yong-seok briefs President Park Geun-hye about urban forest policies during the 2016 Government 3.0 Fair at Coex, southern Seoul, Monday. (Cheong Wa Dae)The Park Geun-hye administration opened the 2016 Government 3.0 Fair for a three-day run at Coex in southern Seoul on Monday, as part of efforts to enhance communication between government agencies and the public.With the slogan “Government at Your Fingertips,” the fair is displaying 100 booths in seven different categories, exh

June 20, 2016