Gov't seeks 3% expansion in 2017 budget

Government ministries and other public entities are hoping to boost their annual spending by 3 percent next year, the slowest rate of growth in at least six years, the finance ministry said Friday.According to the Ministry of Strategy and Finance, government offices have submitted preliminary requests for their 2017 budget that totaled 398.1 trillion won ($343.19 billion), compared with 386.4 trillion won this year.The request, if finalized, will mark the slowest on-year expansion at least since

June 10, 2016

Hanmi Science acquires medication management firm JVM

[THE INVESTOR] Hanmi Science, the holding company of South Korea’s Hanmi Pharmaceutical, said Thursday that it has acquired local medication management automation company JVM Co. under a stock swap agreement.　Hanmi Science acquired a 30 percent stake in JVM by purchasing 1.89 million JVM shares for 129 billion won ($112 million) -- 20 percent of which was paid in cash and the remaining 80 percent through Hanmi Science shares.Hanmi Science (Yonhap)“Through the merger, we expect great synergies be

June 9, 2016

Gaepo-dong apartments’ price per pyeong tops W40m

Apartment prices in Gaepo-dong in Gangnam-gu, southern Seoul, are the highest in the nation, surpassing 40 million won ($34,600) per pyeong (3.3 square meters), industry data showed Thursday.According to real estate information provider Real Estate 114, the value of apartments in Gaepo-dong has reached 43.3 million won per 3.3 square meters, up 17 percent on-year. Gangnam (Yonhap)The average value of overall apartments in the country has also surpassed 10 million won per pyeong for the first tim

June 9, 2016

Korean economy expected to improve further in Q2: finance minister

The South Korean finance minister said Thursday that Asia's fourth-largest economy will show far clearer signs of recovery in the second quarter helped by government-led stimulus policies."The South Korean economy has been in a modest recovery mode in recent months, rebounding from a slowdown in the beginning of the year," Finance Minister Yoo Il-ho said in a meeting of economy-related ministers in Seoul. Finance Minister Yoo Il-ho (Yonhap)"In the second quarter, we will see the effects of incre

June 9, 2016

Ruling party urges gov't to expand public projects to save shipbuilders

South Korea's ruling Saenuri Party said Thursday the government should roll out more state military projects to help normalize financially troubled shipbuilders, which emerged as a potential threat to local industries and the job market."Although restructuring in the private sector is inevitable, there also must be government efforts to provide (troubled firms) with work," Saenuri said during the meeting with government policymakers. The party highlighted that the government should consider plac

June 9, 2016

FTC to raise asset ceiling for conglomerate watch list to 10 tln won

The South Korean antitrust watchdog said Thursday that it will raise the asset ceiling for its conglomerate watch list for the first time in seven years as part of its efforts to pave the way for local mid-sized business groups to conduct more activities.In a report submitted to an economy-related ministers' meeting held in Seoul, the Fair Trade Commission will increase the minimum asset criteria from the current 5 trillion won (4.3 billion) to 10 trillion won in September, with state-run corpor

June 9, 2016

BOK cuts key rate to 1.25% for June

In a surprise move, South Korea's central bank slashed its policy rate by 25 basis points Thursday, apparently anticipating a further delay in what many believe an imminent U.S. rate hike.The Bank of Korea slashed the key rate to a new record low of 1.25 percent for June, marking the first rate cut in 12 months.The BOK had stood pat on the key rate after sending it to the previous record low in four rate cuts between August 2014 and June 2015.The decision came as a surprise to many as the South

June 9, 2016

Korean economy faces slowdown in growth potential: IMF

The South Korean economy faces headwinds both at home and abroad due mainly to rapid aging and faltering exports, with its growth potential slowing down at the same time, the International Monetary Fund said Wednesday."With income levels still short of the OECD frontier, (South Korea's) potential growth has slowed," the IMF mission, which had an annual consultation with the South Korean government, said a press release."At the same time, Korea is facing major structural headwinds including: rapi

June 8, 2016

Continental may participate in bidding for Kumho Tire

German automotive firm Continental AG’s interest in acquiring local tire company Kumho Tire has increased the pressure on Kumho Asiana Group chairman, as he has to solely prepare around 1 trillion won ($8.6 billion) to reacquire the firm. Local news reports said Tuesday Continental is in talks with financial investors to participate in the bidding for the Korean tire company, citing sources from the creditors of Kumho Tire. Other global firms, including French tire firm Michelin and Chinese stat

June 8, 2016

May household loans gain at fastest pace this year

Despite tougher mortgage loans, lending by South Korean banks to households in May rose at the fastest clip this year on increased collective loans, central bank data showed Wednesday.Outstanding household loans extended by local lenders came to 660.9 trillion won ($573 billion) as of end-May, up 6.7 trillion won from a month earlier, according to the data from the Bank of Korea.It marked the sharpest on-month increase this year as well as an acceleration from the 5.3-trillion-won gain in the pr

June 8, 2016

Korea lifts hurdles to open won-yuan direct trade market

The South Korean government said Wednesday that it has lifted the legal hurdles to opening the won-yuan direct trade market in China later this year.A revised local currency law allows all South Korean nationals and businesses to engage in any financial transactions in China using the local currency, including won-yuan spot trading and the settlement of accounts, according to the Ministry of Strategy and Finance.So far, the South Korean currency had been permitted to be used only in trade paymen

June 8, 2016

Seoul to form W11 tln recapitalization fund to turn around ailing core industries

South Korea's government and central bank announced Wednesday that they will jointly create an 11 trillion won ($9.5 billion) recapitalization fund to help state-run banks rehabilitate the nation's debt-stricken shipping and shipbuilding companies, capping months of intensive debate on restructuring the ailing core industries.The recapitalization fund includes 1 trillion won directly injected by the government into the Export-Import Bank of Korea (Korea Eximbank) and a loan of 10 trillion won ex

June 8, 2016

Korean economy needs to be rebalanced

Korea faces an increasing need to ensure a balance between exports and domestic demand, which is crucial for the sustainable growth of its economy, economists say.They note changes in global economic conditions make the need more urgent but government policymakers are not yet fully up to the task.The country’s outbound shipments fell for the 17th consecutive month in May, though the pace of decline decelerated from the preceding months.The National Assembly Budget Office said in a report release

June 8, 2016

Gov't report cites continuing sluggishness in export, production

The South Korean economy has remained in the doldrums due to weak exports and production stemming from waning global demand, despite a slight recovery in domestic consumption, a government report showed Wednesday."Amid a delayed recovery of the world economy, faltering exports and production have dragged down the South Korean economy," the finance ministry said in its monthly economy assessment report called "Green Book.""But domestic demand, including private consumption, has been in a favorabl

June 8, 2016

Korea to host world congress of home economics organization

South Korea will play host to this year's world congress of the International Federation for Home Economics in the city of Daejeon on July 31-Aug. 6, organizers said Tuesday.The organizing committee of the 23rd IFHE World Congress, titled "Hope & Happiness: The role of Home Economics in the pursuit of hope & happiness for individuals and communities now and in the future," is expected to bring together about 1,000 scholars, policymakers and experts from 54 countries.The gathering is held every f

June 7, 2016

Lotte Chemical bids to acquire Axiall in U.S.

Lotte Chemical, the petrochemicals unit of South Korea’s Lotte Group, said Tuesday that it has made an offer to buy U.S.-based chemicals producer Axiall Corp. with aims to expand its business portfolio and strengthen its footing in North America.The company said it submitted its bid to take over Axiall Corp. last Saturday. No further details were disclosed, including its offering price.Axiall Corp. is an Atlanta-based chemicals firm that specializes in producing integrated chlorovinyls and vinyl

June 7, 2016

Korean economy faces headwind, but domestic consumption cruises

The South Korean economy is facing a slowdown in the manufacturing sector and the overall economy stemming from protracted sluggish exports, but a steady upbeat trend of domestic consumption buffers a further slump, a state-run think tank said Tuesday."The recent fall in several production indicators implies a minor slowdown in overall economic activities," the Korea Development Institute said in its monthly evaluation of the country's economic conditions."Mining and manufacturing production and

June 7, 2016

M&A deals dragging on

Merger and acquisition deals in Korea, previously expected to flourish thanks to industry-wide corporate restructurings, are actually dragging on due to little interest from potential buyers, industry sources said Tuesday.Early in January, mobile messaging app operating giant Kakao Corp.’s 1.87 trillion won ($1.57 billion) acquisition of Loen Entertainment, the top operator of online music in the local market, was expected to prompt the M&A market later this year.However, major deals that draw k

June 7, 2016

BOK forecast to hold key rate steady for June: poll

South Korea's central bank is widely expected to hold its key rate steady in June, a poll showed Tuesday, amid what economists called mild signs of recovery and a looming U.S. rate hike.In a survey conducted by Yonhap Infomax, the financial news arm of Yonhap News Agency, 11 out of 13 economists polled forecast the Bank of Korea (BOK) to stand pat on its key rate this month.The BOK has kept its policy rate frozen for 11 consecutive months since June 2015 after sending it to a record low of 1.5 p

June 7, 2016

Korea pushed to balance trade with U.S.

Concerns are rising here over what has been deemed as increasing U.S. pressure on Korea to do more to alter its trade practices and business environment.The pressure, which is expected to escalate further in the lead-up to and beyond the U.S. presidential election in November, seems related mainly to the growing trade imbalance between the two sides. Korea’s trade surplus with the U.S. jumped to $28.3 billion last year from $15.2 billion in 2012, when a bilateral free trade agreement came into f

June 6, 2016