[Graphic News] Middle class shrinking worldwide

The shares of many countries’ populations who are on middle incomes has fallen and particularly in advanced countries, statistics gathered by the Organization for Economic Cooperation and Development showed.The share of South Korea’s population that was in the middle income group -- defined as those with household disposable income of between 75 and 200 percent of the median -- came in at 60 percent, lower than the OECD average.The middle income groups have been declining since 1980. Countries s

Feb. 1, 2017

Kang, finance minister during 1997 financial crisis, dies

Former Finance Minister Kang Bong-kyun, who led the ministry at the heart of the financial crisis in the late 1990s, passed away Tuesday. Kang suffered from pancreatic cancer for three years before he died at the age of 74.  Kang led the finance ministry for two years after the nation asked the International Monetary Fund to borrow $58 billion in a bailout package in late 1997. He led the reform of conglomerates and financial institutes alike. After heading the ministry under the Kim Dae

Feb. 1, 2017

Korea to expand FTA network to offset US protectionism

South Korea’s policymakers are scrambling to cope with rapid changes in global trade conditions as new US President Donald Trump has put into practice his protectionist pledges.Measures drawn up at their meeting last week focused on expanding the country’s network of free trade agreements with the rest of the world, increasing imports from the US and winning more contracts to build massive infrastructure facilities abroad. (Yonhap)An escalation in the trade conflict between the US and China, Kor

Feb. 1, 2017

7 out of Seoul's 10 most expensive houses located in Itaewon

Seven out of the 10 most expensive houses in South Korea are located in the popular foreigner-heavy neighborhood of Itaewon in the heart of Seoul, government data showed Wednesday.Among them, Lee Myung-hee, chairwoman of South Korea's retail giant Shinsegae Group, owns the most expensive house, according to the survey by the Ministry of Land, Infrastructure and Transport. This file photo shows the house of Lee Myung-hee, chairwoman of South Korea's retail giant Shinsegae Group. (Yonhap)Lee's 2,8

Feb. 1, 2017

Korea's trade agency hires US lobbying firm for Trump govt.

South Korea's state-funded trade agency has signed a contract with a US lobbying company to deal with the Donald Trump era, officials said Wednesday.Ever since Trump has stated his protectionist policies, a sense of alarm has grown here over trade pressure from the new US administration. Kim In-ho, chairman and CEO of the Korea International Trade Association, in a photo provided by KITA (Yonhap)"(We) recently inked a contract with the US lobbying firm K&L Gates," an official at the Korea Intern

Feb. 1, 2017

AmCham heads to sell Trump on ‘win-win’ KORUS FTA

Following the recent inauguration of US President Donald Trump, economic tensions are soaring as the new US administration’s tougher trade policy stance and “America first” approach may drastically impact the terms of the current Korea-US Free Trade Agreement. 　This year is already shaping up to be a monumental period for the two countries' economic and political relationship with a new US president, the pending election of a new South Korean president, as well as a new US Ambassador to Korea fo

Feb. 1, 2017

Korea to jack up R&D spending on service sector

The government said Wednesday that it will double research and development  spending on the local service sector in five years in search of a new growth engine, amid a deep slump in the manufacturing sector. The Ministry of Science, ICT and Future Planning said it will pour an R&D budget of 1.25 trillion won ($1.07 billion) into the service sector, including software, medicine and tourism industries, in 2021, compared to 664.7 billion won allocated for this year.  Finance Minister Yoo Il-ho visi

Feb. 1, 2017

Superrich prefer stock transfers to real restate

When it comes to bequeathing a fortune, South Korea’s superrich prefer stocks over real estate or cash, according to the country’s tax agency on Tuesday. The superrich who transferred at least 5 billion won ($4.3 million) in assets between 2011 and 2015 made combined taxable transfers of assets worth 8.3 trillion won to their children or spouses, the National Tax Service said. The most preferred form of their wealth transfer was in stocks, followed by cash and real estate. Nearly

Jan. 31, 2017

Korea's national debt tops W900tr

South Korea's national debt surpassed 900 trillion won ($770 billion) last year largely due to the government's expansionary fiscal policy to cope with a years-long economic slump, data showed Tuesday.The conservative administrations of Lee Myung-bak and Park Geun-hye have favored the issuance of debts to finance the fiscal expansion, instead of hefty taxes. This composite image alludes to South Korean government bonds. (Yonhap)The country's debt, which covers the central government's general an

Jan. 31, 2017

Emerging markets to struggle with ‘America First’ policies

With US President Donald Trump exuberating execution of controversial policies in the first two weeks in office, his “America First” goal would hurt emerging markets including South Korea, financial service company Nomura said in a report published on Friday. Rising US trade protectionism, tougher immigration rules and a reassessment of US foreign policy positions, which seem to be at the heart of President Trump’s “America First” goal, would make emerging markets

Jan. 30, 2017

Korea seeks to boost SME exports

South Korea is stepping up efforts to increase exports by small and medium-sized enterprises, many of which are struggling to stay afloat in the sluggish domestic markets.Less than one in 10 local SMEs have a record of shipping their goods abroad, according to data from the Small and Medium Business Administration. The amount of exports hovered below $100,000 for 40 percent of SME exporters. (123rf)Park Sung-taek, chairman of the Korea Federation of SMEs, said there would be no future for the co

Jan. 30, 2017

Rates for household loans inch up in December

Bank lending rates on new household loans edged up in December while interest rates paid by banks on new deposits also increased, central bank data showed Thursday.The average interest rates on fresh household loans extended by local banks came to 3.29 percent last month, up 0.09 percentage point from the previous month, according to the Bank of Korea. (Yonhap)The BOK data came amid South Korea's efforts to tackle rising household debt. The country's overall household debt reached a record high

Jan. 26, 2017

Korea set to expand imports from US

South Korea said Thursday that it will consider importing more US products this year as part of its efforts to adjust its trade schemes to new trade policies by the Donald Trump administration.The government unveiled the 2017 overseas economic policy plans at a minister-level meeting in Seoul chaired by Finance Minister Yoo Il-ho, focusing on increasing policy resilience against rising uncertainties and trade protectionism.A container ship carrying import goods is anchored in Seattle in the Unit

Jan. 26, 2017

Weakening consumption drags down Korean economy

Concerns are deepening that weakening domestic consumption will further drag down South Korea’s sluggish economy this year, offsetting any positive effect of a rebound in exports.Experts caution that Asia’s fourth-largest economy may suffer from the worst slump in domestic demand since the 2008 global financial crisis. (123rf)According to the Korea Economic Research Institute, a private think tank, the country’s private consumption is projected to grow 1.7 percent in 2017, down from 2.4 percent

Jan. 25, 2017

Korea, Malaysia extend $4.2b currency swap deal

South Korea's central bank said Wednesday it has agreed with its Malaysian counterpart to extend their bilateral currency swap line, a move that could further strengthen bilateral financial cooperation.Under the deal that will last until January 2020, the two countries can exchange 5 trillion won ($4.2 billion) for 15 billion ringgit ($3.3 billion) or vice versa, which could also be used to settle payments linked to their bilateral trade, the Bank of Korea said in a statement. (Yonhap)"This arra

Jan. 25, 2017

Korea says illegal imports up 8% in 2016

South Korea's customs agency said Wednesday that it has caught illegal imports in 89,336 cases in 2016, up 8 percent from a year earlier.The Korea Customs Service said it seized imports of foods that contain harmful substances in 9,033 cases, up 315 percent from 2,867 cases in 2015. (Yonhap)Among the items seized by the agency include dietary supplements that could cause hallucination and stomachache, sexual performance drugs and supplements meant to enhance athletic performance.Some of the item

Jan. 25, 2017

KOTRA chief says Korea's exports will grow 3.4% in 2017

South Korea's exports will likely post positive growth for the first time in three years in 2017, the head of a local trade agency said Wednesday, pledging all-out efforts by his organization to help ensure growth."External conditions will likely remain unfavorable for South Korea's exports this year due to Donald Trump's America First policy and China's China Inside policy. Also, with the issue over South Korea's scheduled deployment of a US air defense system, but we can turn a crisis into an

Jan. 25, 2017

Korea’s growth slows in Q4 on weak consumption: BOK

The South Korean economy expanded at the slowest pace in more than a year in the fourth quarter last year, weighed down by weak private consumption and a slowdown in the construction boom, the central bank said Wednesday.The nation’s gross domestic product grew 0.4 percent in the fourth quarter from the previous three months, slowing from 0.6 percent quarterly growth in the third quarter. The fourth-quarter figure is the lowest since the 0.4 percent growth in the second quarter of 2014.For the w

Jan. 25, 2017

Korea's population mobility slumps at slowest pace in 43 yrs in 2016

South Koreans changed residences from region to region at the lowest pace in 43 years last year due largely to the deepening economic downturn and rapid aging, government data showed Wednesday.The number of people who moved to other regions in the country dropped 4.9 percent on-year to 7.38 million throughout 2016, marking the lowest amount since 1979 when it posted 7.32 million, according to the data by Statistics Korea. (Yonhap)Among them, 66.7 percent moved within their cities or provinces, w

Jan. 25, 2017

New home permits shrink 5.1% on-year in 2016

New home permits issued in South Korea dropped 5.1 percent from a year earlier last year, the government said Wednesday, amid ongoing government efforts to limit the supply of new homes.Construction permits issued for new homes came to 726,048 in 2016, compared with 765,328 issued the previous year, according to the Ministry of Land, Infrastructure and Transport. (Yonhap)The drop was attributed to a sharp decrease in Seoul and its surrounding area.New home permits issued in Seoul plunged 26.2 pe

Jan. 25, 2017