S. Korea's jobless rate edges down to 3.4 pct in Aug.

South Korea's unemployment rate inched down in August on increased hiring by the manufacturing and hospitality sectors, but its job creation lost ground sharply due to layoffs by slump-hit wholesalers and retailers, a government report showed Wednesday.According to the report by Statistics Korea, the jobless rate stood at 3.4 percent last month, down from 3.7 percent in July. The number, however, represents a 0.1 percentage point rise from a year earlier.The seasonally adjusted jobless rate for

Sept. 9, 2015

Dismissals emerge as key dispute between labor and management

Job dismissals have emerged as a key dispute between labor and management, casting a pall on the government's efforts to produce a deal on reforming South Korea's rigid labor market.At issue is whether companies should be allowed to let go of workers who are either negligent or underperforming.Under the current labor law, companies can terminate an employee's contract if they are either involved in a corruption or an embezzlement case. Companies are also allowed to layoff a number of workers at

Sept. 8, 2015

Moody's trims S. Korea's 2015 growth estimate

Global rating agency Moody's Investors Service on Tuesday sharply lowered its growth outlook on the South Korean economy for this year, citing the fallout from the slowing Chinese economy.In a report, the rating agency expected Asia's fourth-largest economy to grow 2.5 percent this year, sharply lower than its earlier estimate of a 3.1-percent expansion. Moody's also cut its 2016 projection on the economy to 2.5 percent from its previous 3.4 percent on-year gain.   The downward revision comes as

Sept. 8, 2015

Won rebounds from 5-year low vs dollar

The South Korean won ended slightly higher against the U.S. dollar on Tuesday, snapping a four-session losing streak that sent the currency tumbling to a five-year low in the previous session.The local currency, which weakened against the greenback in morning trade, recouped its losses to close up 2.8 won against the greenback at 1,200.9 won.On Monday, the local currency sank to the lowest level in more than five years in tandem with growing demand for safer assets amid lingering uncertainties a

Sept. 8, 2015

Economy recovering from Q2 slump despite weak exports

South Korea's economy is recovering from the second-quarter slump triggered by the Middle East Respiratory Syndrome outbreak, but weak exports are weighing on its growth, the finance ministry said Tuesday.In its latest economic report called the Green Book, the ministry said consumer spending, business investment and hiring all showed signs of improvement in July as the MERS scare waned. The viral disease, first confirmed on May 20, has claimed 36 lives and infected 186 people, although no new c

Sept. 8, 2015

S. Korea keeps fiscal expansion to fuel growth

South Korea has opted to maintain an expansionary fiscal policy stance for 2016 as the country seeks to prop up its economy struggling with sagging exports and anemic consumption, observers said Tuesday.The government's 2016 budget proposal calls for a 3 percent on-year rise with spending hitting 386.7 trillion won ($324.6 billion), compared with 375.4 trillion won in 2015. The increase comes despite a government projection that a drop in tax revenue and demand for more outlays will push up stat

Sept. 8, 2015

Gov't proposes 3 pct increase in 2016 budget

The government seeks to hike its spending for next year by a modest 3 percent from this year to give the country's economy a much-need shot in the arm amid unfavorable domestic and external conditions, the finance ministry said Tuesday.The government will ask the National Assembly to approve its 386.7 trillion won ($324.6 billion) budget for 2016, larger than the 375.4 trillion won earmarked for 2015. The budget proposal, endorsed by the Cabinet on Tuesday, will be sent to the National Assembly

Sept. 8, 2015

S. Korea faces export slump after MERS shock: KDI

South Korea is emerging from the fallout of the Middle East Respiratory Syndrome outbreak, but slumping exports are posing a threat to the economic recovery, a state-run think tank said Sunday.According to the Korea Development Institute, Asia's fourth-largest economy underwent a smaller-than-expected contraction in consumption with business investment posting a moderate on-year increase in July compared with growth figures posted for the month before."The effect of MERS is clearly on the wane i

Sept. 6, 2015

S. Korea to cut 2016 growth forecast on China woes: finance minister

South Korea will lower its growth forecast for 2016 in the face of an economic slowdown in China, the country's top export market, Seoul's top economic czar said in an interview released online by the Wall Street Journal on Friday.  On the sidelines of the Group of 20 finance ministers meeting in Ankara, Finance Minister Choi Kyung-hwan told the news outlet that South Korea's growth rate will be revised down to 3.3 percent for next year from the 3.5 percent estimate made in June.  The downgrade

Sept. 4, 2015

Loans to self-employed spike as baby boomers retire

Loans extended to the self-employed by South Korean lenders spiked by more than 24 trillion won ($20 billion) in the past year since retired baby boomers opted to open their own businesses, data showed Friday.  Local banks' outstanding loans to the self-employed reached 222.9 trillion won as of the end of June, up 12.3 percent from 198.5 trillion won a year earlier, according to the data submitted to Rep. Kim Gi-juhn of the New Politics Alliance for Democracy by the Financial Supervisory Service

Sept. 4, 2015

Foreigners' card spending dips in Q2

Foreigners swiped less with their credit cards during their stays in South Korea in the April-June period as the Middle East Respiratory Syndrome outbreak led to a fall in the number of visitors to the country, data showed Friday.  Foreigners' card spending in the country totaled $2.73 billion in the second quarter, slipping 1 percent from $2.76 billion three months earlier, according to the data by the Bank of Korea. From a year earlier, it also dipped 6.4 percent.  The local retail and tourism

Sept. 4, 2015

Korea’s quarterly GNI falls for 1st time since 2010

The nation’s gross national income posted minus growth in the second quarter of the year, dropping 0.1 percent from the previous quarter, data from the Bank of Korea showed Thursday. This is the first time in 4 1/2 years that the country marked negative GNI growth on a quarter-to-quarter basis, after the index fell below zero to -1.9 percent during the fourth quarter of 2010.The GNI refers to the total domestic and foreign output claimed by residents of a country, including their salaries, finan

Sept. 3, 2015

Trade minister urges quick approval of FTAs with China, Vietnam

South Korea's minister urged lawmakers Thursday to swiftly approve free trade agreements with China and Vietnam in order to turn around slumping exports.  Seoul formally signed the FTA with China, its largest trading partner and the world's No. 2 economy, on June 1, while the pact with Vietnam was reached in May.     In a meeting with reporters in Sejong City, Minister of Trade, Industry and Energy Yoon Sang-jick stressed the two countries represent South Korea's first- and third-largest oversea

Sept. 3, 2015

S. Korean economy grows 0.3 pct in Q2: BOK

South Korea's economic growth slowed in the second quarter of this year from three months earlier due to the fallout from the Middle East Respiratory Syndrome outbreak and one of the worst droughts in a century, revised central bank data showed Thursday.  The economy grew 0.3 percent in the April-June period, sharply decelerating from the 0.8 percent on-quarter expansion three months earlier, according to the data by the Bank of Korea.  The quarterly reading matches the central bank's earlier es

Sept. 3, 2015

Mortgage loans rise at fast pace in Aug.

Home-backed loans extended by South Korean banks gained at the fastest clip in five years in August, industry data showed Wednesday, due to increased home transactions and a rise in apartment prices.   Outstanding mortgage loans by the country's six major commercial banks, including Kookmin and KEB Hana, reached 327.9 trillion won ($278 billion) as of end-August, up 6.4 trillion won from the previous month, according to the data.  The monthly gain marks the sharpest rise for the month of August

Sept. 2, 2015