Gov't, biz community urge early resumption of labor dialogue

Government officials and the business community on Thursday urged an early resumption of three-way talks on labor market reform that are currently facing a boycott by the labor sector.   The trilateral talks between the government, business and labor organizations have been stalled since April 8 when representatives from the Federation of Korean Trade Unions walked out of negotiations in opposition to proposed changes to regulations concerning layoffs.FKTU leaders were expected to declare their

Aug. 20, 2015

BOK governor underscores structural reform for growth

The chief of South Korea's central bank on Thursday reiterated the importance of structural reform in spurring growth, acknowledging the bank's monetary policy has a limited impact on Seoul's policy initiative to restructure the labor and financial market."Since the effects of accommodative monetary policy in boosting demand cannot last for a long time, structural reforms to enhance productivity in the financial and labor sectors are essential for sustainable growth," Bank of Korea Gov. Lee Ju-y

Aug. 20, 2015

Doosan Group adopting wage peak system

Doosan Group, a major South Korean conglomerate, said Thursday it will implement the so-called wage peak system in all its units starting next year, becoming the first local business group to do so.The new wage system calls for employees to accept a reduced salary in exchange for working until the retirement age set by the company. The government is pushing public and private companies to adopt the system in an effort to help alleviate high youth unemployment.According to group officials, a majo

Aug. 20, 2015

S. Koreans going abroad jump amid drop in foreign visitors: data

South Korean overseas tourists surged nearly 20 percent on-year in the first seven months of 2015 on favorable exchange rates and cheaper airfare, with the number of inbound tourists falling due to the Middle East Respiratory Syndrome outbreak, official data showed Thursday.According to the data provided by the Tourism Knowledge and Information System, outbound travelers totaled 10.82 million in the January-July period, up 19.4 percent from the same period a year earlier.The sharp increase surpa

Aug. 20, 2015

Park's push makes headway in reviving the economy

President Park Geun-hye's administration has made meaningful headway in revitalizing the economy in the face of challenges over the past two and a half years, although tough challenges lie ahead, local observers say.Days before Park's halfway point in her five-year term in office on Aug. 25, economists pointed out that while lofty goals set at the outset have yet to be fully met, the administration has been consistent in its push for reforms, with some gains having already been made in the realm

Aug. 20, 2015

U.S. launches anti-dumping investigation of S. Korean steel products

The U.S. trade watchdog has launched an anti-dumping investigation into allegations that South Korea and six other foreign countries sell hot-rolled steel flat products in the U.S. at unfairly low prices.The U.S. International Trade Commission posted a notice in the Federal Register saying it has instituted the investigation to determine whether the U.S. industry is harmed by "imports of certain hot-rolled steel flat products from Australia, Brazil, Japan, Korea, the Netherlands, Turkey and the

Aug. 20, 2015

S. Korea, Ecuador set to launch FTA talks

South Korea and Ecuador will announce the start of negotiations for a bilateral free trade agreement next week, the Seoul government said Wednesday.The announcement will be made Tuesday at a meeting of the countries' trade ministers in Seoul, according to the Ministry of Trade, Industry and Energy.The declaration of the start of FTA talks comes nearly two years after the countries concluded a joint feasibility study in June 2013."Ecuador is expected to become a gateway for our companies to the l

Aug. 19, 2015

Won falls 2.2 pct on U.S., China jitters

The real value of the Korean won against key foreign currencies dropped 2.2 percent on-month in July, data showed Wednesday, providing exporters with breathing room to boost their overseas sales that had taken a hit from a strong won.The won's real effective exchange rate reached 112.42 last month, dropping from 114.95 in June and marking the third straight month of decline, according to the data by the Bank for International Settlement's effective exchange rate indices covering 61 economies.REE

Aug. 19, 2015

Lotte's fast food unit undergoes tax probe

South Korea's tax authorities have conducted a monthlong tax probe into the fast food chain arm of Lotte Group, which is embroiled in a family feud over control of the sprawling retail giant, sources said Wednesday.Investigators from the National Tax Service inspected the main office of Lotteria in Seoul between July 7 and Aug. 11, according to the sources.It is the first tax probe into Lotteria since 2011 and comes after the service carried out an audit into Daehong Communications, the advertis

Aug. 19, 2015

Biz groups expand capital spending in H1

South Korean conglomerates have stepped up their capital spending in the first half of the year, data showed Wednesday, moving in line with government efforts to stimulate the country's slowing growth. The combined spending by 266 affiliates under the top 30 local business groups came to 38.78 trillion won ($32.7 billion) during the January-June period, up 31.5 percent from a year earlier, according to the data compiled by corporate researcher CEO Score. Expenditures in equipment and facilities

Aug. 19, 2015

Retailers, food firms target solo diners with instant meals

South Korean retailers and food manufacturers are expanding their ready-to-eat meal products to cater to the country's rapidly growing single households who opt to eat in, partly to save time and money, market watchers said Wednesday.Retailers and food makers, in turn, are swiftly moving to increase their market share in the so-called "home meal replacement" segment, which includes products ranging from ready-to-eat loach soup to instant rice topped with Mapo Tofu. CJ Cheiljedang Corp., one of t

Aug. 19, 2015

Producer prices fall for 12th month in July

Producer prices in South Korea declined for the 12th straight month in July, tracking a fall in global oil prices, data showed Wednesday.The producer price index, a measure of future consumer inflation, reached 101.43 in July, down 4 percent from the previous year, according to the preliminary data from the Bank of Korea .It slipped 0.3 percent from a month earlier.Prices of coal and petroleum products plummeted 31 percent from a year ago, the biggest on-year fall since 33.5 percent in April.Uti

Aug. 19, 2015

Seoul shares dip 0.62 pct amid lingering yuan woes

South Korean stocks fell 0.62 percent Tuesday, as investors refrained from making risky bets amid lingering aftershocks from the yuan devaluations, analysts said.The local currency lost ground against the U.S. dollar. The benchmark Korea Composite Stock Price Index dropped 12.26 points to close at 1,956.26. Trading volume was moderate at 467 million shares worth 5.54 trillion won ($4.67 billion) with decliners far outpacing advancers 628 to 206. "Although the yuan fear has eased, we need more ti

Aug. 18, 2015

Imported carbonated drinks cost far more than abroad

Imported carbonated beverages are sold at much higher prices in the local market than abroad, a consumer advocacy group said Tuesday, advising consumers to make prudent decisions on buying those products.According to the Korean Woman's Federation for Consumers, the price difference between carbonated drinks sold in the country of origin and South Korea reached as high as 7.9 times. Prices for the same products differed considerably depending on where it was purchased, making it important for peo

Aug. 18, 2015

Gov't pushing to fuel growth despite challenges: finance minister

The government plans to come up with measures to fuel economic growth despite mounting challenges that could derail recovery efforts, the top economic policymaker said Tuesday.Addressing lawmakers at the National Assembly's Special Committee on Budget and Accounts in Seoul, Finance Minister Choi Kyung-hwan pointed out that external and internal problems were posing problems for Asia's fourth-largest economy.South Korea's growth was helped by a combination of low crude oil prices, low interest ra

Aug. 18, 2015

Government to push bill to widen service sector

The government will prioritize getting pending service-related bills passed by the National Assembly before the political parties plunge into campaigning mode for next year’s April 13 general elections, said officials at the Ministry of Strategy and Finance on Monday.Seven of the 30 bills aiming to boost the economy through the service sector have been pending at the National Assembly for up to three years, according to the ministry.Deputy Prime Minister Choi Kyung-hwan was quoted by a news prov

Aug. 17, 2015

Samsung to create 30,000 jobs for younger people

Samsung Group, South Korea's top conglomerate, said Monday it will create some 30,000 new jobs for the younger generation over the next two years, a move to help tackle protracted youth unemployment in line with the government's efforts to improve the job market. Samsung said in its youth job creation plan that it will offer traineeships to 3,000 candidates who are seeking to work for one of its subcontractors. The family-run conglomerate said it plans to pay for the trainees' monthly wages of 1

Aug. 17, 2015

Fuel surcharge for int'l flights to be lowered to zero in Sept.

The fuel surcharge that international flight passengers have to pay is expected to be lowered to zero in South Korea for the first time in six years next month as global oil prices continue to drop, industry sources said Monday.The surcharge system allows air carriers to adjust the extra fees for international and domestic routes each month in tandem with changes in the average price of fuel traded via Singapore's spot market. The surcharge is not levied if the average fuel price falls below $1.

Aug. 17, 2015

Passenger car sales drop amid less demand for sedan models: data

Passenger car sales in South Korea fell during the first seven months of this year despite overall vehicle sales growth as most sedan models suffered marked setbacks, industry data showed Monday.Five carmakers operating in South Korea sold a combined 714,015 vehicles, including sedans and recreational vehicles, during the January-July period, up 3.1 percent from a year earlier, according to the data.The growth was driven mostly by more demand for RVs, including sport utility vehicles. In contras

Aug. 17, 2015