Foreigners' trip cancellations surge after MERS outbreak

A growing number of overseas travelers are calling off their trips to South Korea over fear of the Middle East Respiratory Syndrome that hit the nation, dealing a blow to the tourism and hotel industry here, industry officials said Thursday. The number of trip cancellations jumped from 2,500 on Monday to 7,000 on Tuesday, mostly by people from China and other Asian regions, and it is expected to grow in the wake of more cases of people infected with the contagious disease, the state-run Korea To

June 4, 2015

Koreans' overseas card spending hits record high in Q1

Overseas credit card spending by South Koreans soared to a fresh high in the first quarter of this year as more travelers went overseas amid low oil prices, central bank data showed Thursday.Overseas credit card bills totaled $3.21 billion in the first three months of the year, up 0.5 percent from three months earlier, according to the data by the Bank of Korea. From a year earlier, the amount climbed 13.8 percent.The first-quarter amount broke the previous quarterly record of $3.2 billion recor

June 4, 2015

MERS fears grip S. Korean tourism, retail sectors

Fears over the Middle East Respiratory Syndrome are casting a pall over South Korea's tourism and retail industries as the respiratory illness does not show signs of a letup, prodding overseas travelers to cancel their trips and locals to abstain from outdoor activities, industry sources said Wednesday.South Korea on Tuesday reported its first two deaths from MERS since the first confirmed case two weeks ago, fueling growing concerns about its spread in the country.Although MERS has not yet seri

June 3, 2015

MERS outbreak casts cloud on economy

Concerns over the negative impact of an outbreak of Middle East respiratory syndrome on the Korean economy are rising after the health authorities reported the first two deaths from the disease Monday. “Unless the authorities prevent the further spread of MERS, the number of Chinese travelers could fall at a fast pace, which will deal a blow to domestic consumption,’’ said Lim Hee-jung, a researcher from Hyundai Research Institute.Spending by Chinese visitors has boosted domestic consumption in

June 2, 2015

One policymaker opposes rate freeze in May: minutes

One member of the central bank's monetary policy committee opposed a majority decision last month to hold the policy rate steady at a record low of 1.75 percent, its May minutes showed Tuesday.As widely expected, the Bank of Korea (BOK) left the key rate on hold after unexpectedly slashing it by a quarter percentage point in March. The move marked its third rate cut in the past year, following one cut in August and another in October.According to the minutes from the May 15 meeting, Ha Sung-keun

June 2, 2015

S. Korea's current account surplus narrows in April

South Korea's monthly current account surplus narrowed in April from a four-month high in the previous month but continued to extend its surplus streak to a 38th straight month, data showed Tuesday.The current account surplus reached $8.14 billion last month, down from a $10.43 billion surplus in March, according to the provisional data released by the Bank of Korea. The current account is the broadest measure of cross-border trade.The on-month decline was largely attributed to the primary incom

June 2, 2015

S. Korea's consumer prices edge up 0.5 pct on-year in May

South Korea's consumer prices grew less than 1 percent for the sixth month in a row in May, a government report showed Tuesday, fueling worries of deflation in Asia's fourth-largest economy.The country's consumer price index inched up 0.5 percent last month from a year earlier, the report by Statistics Korea showed. Last month's number represents a gain from 0.4 percent growth tallied for both April and March, which were the lowest increases since July 1999, when consumer prices moved up just 0.

June 2, 2015

Seoul shares fall 0.59 pct on export, Greek debt woes

South Korean stocks fell 0.59 percent Monday as investor sentiment was dampened by concerns about the country's slowing exports and the lingering Greek debt problem, analysts said. The local currency lost ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index lost 12.43 points to 2,102.37. Trading volume was moderate at 416.9 million shares worth 5.8 trillion won ($5.2 billion), with losers outnumbering gainers 489 to 329.South Korea's exports shrank 10.9 percent last mon

June 1, 2015

Household debt, low growth major threats to S. Korean financial

Surging household debt and a prolonged low-growth trend are two major systemic risks facing South Korea's financial system, a poll showed Monday. The household debt issue topped the list of key systemic risks cited by market watchers at 66 percent, followed by a sluggish growth trend and inflation at 64 percent, according to the semi-annual survey conducted by the Bank of Korea.The central bank polled 82 officials at local banks and non-banking institutions in addition to foreign assets managers

June 1, 2015

S. Korea's exports plunge 10.9 pct on-year in May

South Korea's exports posted their biggest drop in almost six years in May, though its trade surplus expanded as imports shrank at a faster pace, the government said Monday.In May, the country's overall outbound shipments came to $42.39 billion, down 10.9 percent from the same month last year.It was the largest on-year decline since a 20.9 percent plunge in August 2009.May marked the fifth consecutive month of an on-year drop in exports. Imports also plunged 15.3 percent on-year to $36.07 billio

June 1, 2015

S. Korea's short-term foreign debt down in Q1

The ratio of South Korea's short-term foreign debt to its foreign reserves fell to the lowest level in a decade in the first quarter, bolstering the country's buffer against possible capital outflow, central bank data showed Monday.The country's short-term external debt totaled US$112.8 billion as of the end of March, down $2.5 billion from the end of last year, according to the data compiled by the Bank of Korea.Korea's total external debt reached $418.9 billion as of end-March, also down $6.5

June 1, 2015

S. Korean asset managers' net edges down in Q1

South Korean asset management companies saw their net profits edge down in the first quarter of this year from a year earlier due to a rise in operating and non-operating expenses, the financial watchdog said Sunday.A total of 87 asset managers posted a combined 89.3 billion won ($80.6 million) in net income in the January-March period, compared with 89.5 billion won a year earlier, according to the Financial Supervisory Service.The slight decline came as their selling and administrative expense

May 31, 2015

S. Korea's shadow banking sector estimated at 1,500 tln won

The size of shadow banking in South Korea is estimated to have grown to more than 1,500 trillion won($1.35 trillion) last year, data showed Sunday.The data submitted by the central bank to Justice Party Rep.Park Won-suk showed that the size of the country's shadow banking sector expanded 11.6 percent on-year to 1,503 trillion won as of the end of last year.Shadow banking refers to financial activities through non-banking channels, including hedge funds, real estate trust funds and off-balance sh

May 31, 2015

Seoul shares edge up on eased Greece woes

South Korean stocks rose Thursday, snapping their two-day losing streak, on eased concerns over Greece's debt talks with its creditors, analysts said. The local currency dropped against the U.S. dollar. The benchmark Korea Composite Stock Price Index gained 3.39 points, or 0.16 percent, to 2110.89. Trading volume was moderate at 410.7 million shares worth 6.72 trillion won ($6.07 billion), with gainers surpassing losers 455 to 370.Analysts said positive progress in talks between Greece and its c

May 28, 2015

Bank lending rates fall again in April

Bank lending rates for new loans in South Korea fell for a fourth straight month in April following a surprise rate cut in the previous month that sent the base rate to a record low, central bank data showed Thursday.In a surprise move, the Bank of Korea slashed its policy rate by a quarter percentage point to 1.75 percent in March as part of wider policy efforts to spur growth in Asia's fourth-largest economy.The average rate for new loans to households, companies and other organizations came i

May 28, 2015

S. Korea's biz sentiment remains pessimistic for June

A majority of South Korea's largest companies remain pessimistic about their business outlooks for June on worries about weak exports and other unfavorable market conditions at home and abroad, a poll showed Thursday.According to the survey by the Federation of Korean Industries of the country's top 600 companies by sales, the business survey index for June stood at 96.4, down from the May outlook of 99.4. This marks the lowest BSI in three months. A BSI reading below 100 means pessimists outnum

May 28, 2015

S. Korea unlikely to take hit from U.S. rate hike: Bernanke

South Korea is unlikely to be hit hard by a possible U.S. interest rate hike, former Federal Reserve chairman Ben Bernanke said, dismissing concerns it could spark a massive capital outflow from Asia's fourth-largest economy.The U.S. central bank is widely expected to raise its key rate as early as June, the first time in almost a decade, as the world's No. 1 economy is showing signs of recovery. The forecast has raised concerns it could trigger a sudden outflow of capital from emerging markets,

May 28, 2015

Korean won hits 2-month low vs dollar on looming U.S. rate hike

South Korea's currency fell to the lowest level against the U.S. dollar in two months on Wednesday, moving in tandem with major counterparts' descent against the greenback on rising speculation that the U.S. Federal Reserve will hike borrowing costs, analysts said.The Korean won was changing hands at 1,107.30 per dollar as of 1:37 p.m., down 6.3 won from the previous session's close.The local currency's drop came as the U.S. dollar has spiked on data showing that the world's largest economy is o

May 27, 2015

KDI urges outside directors' greater independence

South Korea's outside directors should become more independent in order for them to better control management and protect the rights of all shareholders, a state-run think tank said Wednesday.The report by the Korea Development Institute showed under the prevailing practice of outside directors being chosen because they know the CEO of a company or major shareholders, there will always be a risk of people failing to check management in an effective manner."Many outside directors are from the sam

May 27, 2015