S. Korea's current account surplus narrows in Aug.

South Korea's current account surplus shrank from a month earlier in August mainly on a fall in exports that led to a cut in the surplus in the goods balance, data showed Friday.  The current account surplus came to $8.46 billion in August, compared with a revised $9.3 billion surplus in the previous month, according to the preliminary data from the Bank of Korea.  The on-month drop was largely attributed to a greater drop in the balance of goods, which slumped to $8.97 billion from $10.05 billi

Oct. 2, 2015

S. Korean banks' loan delinquency rate rises in Aug.

The delinquency rate for loans extended by South Korean banks rose in August from a month earlier due to a rise in soured loans extended to companies and households, the financial watchdog said Friday.  The average delinquency rate of bank loans stood at 0.76 percent at the end of August, up 0.07 percentage point from a month earlier, according to the Financial Supervisory Service.  From a year earlier, the figure dropped 0.2 percentage point from 0.96 percent, it added.  Loans with both the pri

Oct. 2, 2015

S. Korean retailers offer promotional sales under 'Korea Black Friday' event

More than 26,000 retailers across the country started massive promotional sales events on Thursday, wooing foreign tourists and locals to buy goods at cheap prices, which the government hopes will help stimulate sagging domestic demand.Under the title, Korea Black Friday, home appliance makers such as Samsung Electronics Co. will also hold various sales events for two weeks.The super sales event is expected to involve some 27,000 stores and markets across the country, making it the very first an

Oct. 1, 2015

S. Korea's exports fall 8.3% on-year in Sept.

South Korea's exports dropped for the ninth straight month in September, but its trade surplus hit the second-highest level in the country's history as imports slipped at a faster rate, the government said Thursday.Outbound shipments came to $43.50 billion last month, down 8.3 percent from the same month last year, according to the Ministry of Trade, Industry and Energy.Imports plunged 21.8 percent on-year to $34.56 billion.The country's trade surplus climbed to $8.94 billion from $3.26 billion

Oct. 1, 2015

S. Korea's industrial output edges up 0.4% in Aug.

South Korea's industrial output inched up in August from the previous month on greater overseas demand for mobile phones and semiconductors, a government report showed Thursday.According to the report by Statistics Korea, production in the mining, manufacturing, gas and electricity industries gained 0.4 percent on-month in August, a turnaround from a 0.3 percent on-month fall in July.Compared with a year earlier, industrial production inched up 0.3 percent."South Korea's overall exports plunged

Oct. 1, 2015

Shareholders file collective suit against Daewoo Shipbuilding

A group of 119 minority shareholders filed a class action suit against Daewoo Shipbuilding & Marine Engineering Co. on Wednesday, demanding 4.1 billion won (US$3.47 million) in compensation for losses from an investment made based on the company’s doctored financial statement.The plaintiff filed the suit with the Seoul Central District Court, claiming the shipbuilder exaggerated profits in the 2014 financial statement by lowering production costs and hiding losses. They also held Deloitte Anjin

Sept. 30, 2015

Korea to lag emerging markets in growth

Korea will likely be ranked 11th among 13 major emerging economies in terms of economic growth this year, according to projections by research institutes at home and aboard.Citing analysis from investment banks, some local economists on Wednesday forecast that Korea’s 2015 gross domestic product growth will likely stay below 2.5 percent. This could the lowest after Brazil and Russia, both of which are projected to post a negative growth.India is estimated to see on-year growth of 7.4 percent, fo

Sept. 30, 2015

S. Korean financial firms most vulnerable to China shock: data

South Korean financial firms are the most vulnerable to an economic slowdown in China, with their exposure to the world's second-largest economy being the highest in the world, market data showed Wednesday.Local banks and non-bank institutions' outstanding loans to China reached $24.5 billion as of end-March, accounting for 17.5 percent of their total overseas lending of $140 billion, according to the data.South Korean financial firms' exposure is in stark comparison with those of other countrie

Sept. 30, 2015

S. Korea can penalize Volkswagen for cheating on emissions: gov't

South Korea can penalize German automaker Volkswagen AG for cheating on its vehicle emissions under a free trade deal with the European Union, the government said Tuesday.According to the environment ministry, the free trade agreement reached between the EU and Asia's fourth-largest economy and South Korea's local law have provisions allowing authorities here to deal with emissions-related cheating by car manufacturers. "The FTA permits Seoul to randomly check if a carmaker adhered to technical

Sept. 29, 2015

Youth unemployment worse than during financial crisis: report

Unemployment among young people in South Korea is worse than the level reached during the global financial crisis, a state-run think tank said Tuesday, calling for urgent measures to tackle the problem.The Korea Institute for Industrial Economics and Trade said in a report that overall conditions for young people just entering the job market are worse than in 2009, when the country, and the world at large, was still struggling with the 2008 global crisis.Government statistics have consistently s

Sept. 29, 2015

Think tank cuts S. Korea's growth outlook to 2.4%

South Korea's economic growth rate for 2015 is expected to slow to 2.4 percent from an earlier estimate of 2.7 percent due to weak consumer spending and falling exports, a private think tank said Tuesday.In its latest economic outlook, the Korea Economic Research Institute predicted Asia's fourth-largest economy will likely expand 2.6 percent in 2016 from this year.KERI's projection is far lower that the government's revised growth forecast of 3.1 percent for this year.Affiliated with the countr

Sept. 29, 2015

Global trade to grow at slowest pace since financial crisis: BOK

Global trade in 2015 and 2016 is expected to grow at the slowest pace since the financial crisis, which could pose serious challenges for an export-oriented economy like South Korea, the central bank said Tuesday.The report by the Bank of Korea predicted worldwide trade will grow 2-3 percent this year and in 2016, far lower than the average 6 percent annual growth tallied from 2001 through 2008, when the bursting of the U.S. housing bubble triggered a financial crisis that rocked the entire worl

Sept. 29, 2015

Discount chains, department store sales drop in Aug.

South Korea's major department stores and discount chains reported a drop in sales in August compared to the year before, mainly due to a shift in the date of the Chuseok holiday, the government said Tuesday.The combined sales of three department store chains -- Hyundai, Lotte and Shinsegae -- backtracked 7.6 percent on-year last month, according to the Ministry of Trade, Industry and Energy. The total sales of three major discount outlet chains -- E-Mart, Homeplus and Lotte Mart -- also fell 6.

Sept. 29, 2015

Gov't mulls 3 pct wage hike for public sector in 2016: source

The government is mulling a 3-percent wage increase for public-sector corporations in 2016 as it tries to push state-run companies to set the pace for the country to switch to a wage peak system aimed at creating more jobs, a finance ministry source said Tuesday.The increased rate that will be finalized in early December is the same as those for government workers, but lower than the 3.8 percent hike agreed upon for 2015.Public-sector wages shot up 5.1 percent in 2011 and dipped to 1.7 percent i

Sept. 29, 2015

S. Korea‘s mandatory spending to exceed half of fiscal spending

South Korea’s mandatory spending will likely exceed 50 percent of fiscal spending in 2018, raising concerns that the government‘s capacity to counter the economic slump could weaken down the road, a report showed Monday.　According to the report submitted by the government to the National Assembly, the government’s mandatory spending will rise from 172.6 trillion won (US$144.5 billion) in 2015 to 183.4 trillion won in 2016, 195 trillion won in 2017 and 206.5 trillion won in 2018.　This represents

Sept. 28, 2015

S. Korean bourse to stay choppy on U.S. rate woes

The South Korean stock market is expected to remain choppy next week as investors avoid risky assets amid uncertainties regarding the timing of a looming U.S. rate hike, analysts said Saturday. The benchmark Korea Composite Stock Price Index (KOSPI) closed at 1,942.85 points on Friday, down 2.66 percent from a week earlier.This week, Seoul shares began lower on Monday after the U.S. Federal Open Market Committee decided to maintain its key rate whilst adding that it will keep watch on the ongoin

Sept. 26, 2015

Samsung Pay processes $30 mln of transactions in S. Korea

South Korea's top smartphone maker Samsung Electronics Co. said Thursday its mobile payment solution has processed tractions totaling US$30 million in the month after its debut in South Korea.The South Korean giant officially released Samsung Pay at home on Aug. 20.The platform, available for Samsung's high-end smartphones, including the Galaxy S6 and the Galaxy Note 5, supports magnetic secure transmission technology that works on traditional credit card machines.Like rivals Apple Pay and Andro

Sept. 24, 2015