Falling mortgage loan interest rate stokes debt worries

The interest rate for home-backed loans at South Korean lenders fell below the 3 percent threshold, industry data showed Sunday, raising concerns the trend will further stoke the country's already sizable household debt.The fixed interest rate for mortgage loans at Korea Exchange Bank, which are due to shift to a floating rate scheme three years later, sank to 2.85 percent as of Friday. The interest rate for loans due to shift five years later also dropped to 2.98 percent."Many customers can now

Jan. 18, 2015

Seoul shares dive 1.36 pct on strong foreign selling

South Korean stocks ended 1.36 percent lower Friday as foreigners continued to offload local equities on global financial uncertainties and plunging oil prices, analysts said. The local currency gained ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) failed to recover to the 1,900 mark it surrendered in the morning session and closed at 1,888.13 after plummeting 26.01 points. Trading volume was low at 289 million shares worth 3.9 trillion won (US$3.62 billio

Jan. 16, 2015

Korean won 4th best performer vs dollar this year

The South Korean won has become one of the top four performers among major currencies against the U.S. dollar so far this year, data showed Friday, as a plunge in crude oil prices helped improve corporate earnings in the oil importing country.The South Korean currency has gone up 1.93 percent to 1,082.20 won against the greenback in two weeks since starting off the year at 1,103.50 won, according to market data. The won's appreciation rate was the fourth largest among 26 currencies, while the Tu

Jan. 16, 2015

S. Korea's investment in China jumps 29.8 pct in 2014

Direct investment by South Korean companies into China jumped 29.8 percent from a year ago to US$3.97 billion in 2014, China's commerce ministry said Friday. The rapid growth in investment by South Korean firms in China marked a striking contrast to Japanese companies, whose direct investment in the world's second largest economy dropped 38.8 percent to $4.33 billion last year amid geopolitical tensions between Beijing and Tokyo. Last year, total foreign direct investment into China rose 1.7 per

Jan. 16, 2015

SUV, wagon and minivan sales spike on increased leisure activities

Annual sales of recreational vehicles in South Korea nearly doubled over the past six years, driven by the growing popularity of cars designed for outdoor and leisure activities, industry data showed Thursday.Last year, carmakers sold 407,880 RVs, including sport utility vehicles, wagons and minivans, compared with about 208,000 units tallied in 2008, according to the data. The spike is attributable to increasing demand for vehicles that provide more space for equipment and driving comfort for t

Jan. 15, 2015

Naver ups stake in online video streaming amid YouTube reign

Naver Corp., South Korea’s top Internet portal operator, saw a sharp growth in its online video streaming business last year, closing the gap with the world’s largest video-sharing website YouTube in the local market, data showed Thursday. The number of unique visitors at Naver’s TV Cast spiked 52.4 percent on-year to 47.3 million in 2014, according to data compiled by Seoul-based market tracker Nielson KoreanClick Co. That compares with a 13.3 percent on-year increase for the global video-strea

Jan. 15, 2015

Korean refiners suffered record loss in 2014: report

Major South Korean refiners are expected to have suffered their worst ever performance in 2014 due to relentless slides in oil prices, with their combined operating loss reaching over 2 trillion won ($1.84 billion), according to guidance reports Thursday. The combined operating loss of the four refiners ― SK Innovation, GS Caltex, S-Oil and Hyundai Oil Bank ― reached 1.2 trillion won in the first three quarters of last year, and they are expected to post an additional loss of over 1 trillion won

Jan. 15, 2015

Korea logs 35th straight month of trade surplus in December

South Korea posted a trade surplus for the 35th month in a row in December, helped by a rise in overseas shipments and a decline in imports, customs data showed Thursday.According to the data released by the Korea Customs Service, the country’s trade surplus came to $5.74 billion last month, up from $5.39 billion tallied for the previous month and $3.63 billion a year earlier.Exports moved up 3.6 percent on-year to $49.7 billion, while imports contracted 0.9 percent to $43.95 billion. Export, im

Jan. 15, 2015

S. Korea slashes 2015 economic growth forecast

South Korea's central bank on Thursday slashed its 2015 economic growth forecast and kept its benchmark interest rate unchanged at a record low amid growing concerns of deflation.Bank of Korea Governor Lee Ju-Yeol put the new estimate for Asia's fourth-largest economy at 3.4 percent growth this year, compared to an earlier forecast of 3.9 percent.The bank decision to leave its key rate unchanged at 2.0 percent was widely expected, although some analysts had predicted a cut of 25 basis points to

Jan. 15, 2015

Seoul shares almost flat as BOK freezes rate

South Korean stocks finished almost flat on Thursday after choppy trading throughout the session, as investors are glued to a key policy meeting by the European Central Bank slated later in the day, analysts said. The local currency fell against the dollar.The benchmark Korea Composite Stock Price Index shed 0.41 point, or 0.02 percent to close at 1,920.82. Trading volume was moderate at 332.77 million shares worth 4.46 trillion won ($4.11 billion), with losers and gainers both standing at 391.A

Jan. 15, 2015

BOK cuts growth, inflation outlook on weak recovery

South Korea's central bank on Thursday lowered its economic growth and inflation outlook for this year as Asia's fourth-largest economy continues to stumble due to lackluster domestic demand.The Bank of Korea cut its growth forecast for the year to 3.4 percent from 3.8 percent while slashing its inflation forecast to 1.9 percent from 2.4 percent. The previous forecast was released in October."The outlook for this year is lower than the October forecast, as well as those by other institutions. Bu

Jan. 15, 2015

S. Korea needs structural reform to take further leap: Eurozone official

South Korea's economic fundamentals enabled the country to overcome the recent global financial crisis, but it now needs structural reforms to ride over the era of low growth, the head of Euro Group said Thursday."Years of quite low growth have marked some structural weaknesses, and a number of serious challenges still lie ahead, such as aging and globalization," Jeroen Dijsselbloem, the chairman of the Euro Group, said at a Seoul forum. "Implementing the right reforms can boost the growth."Euro

Jan. 15, 2015

BOK keeps base rate unchanged at 2 pct

In a widely expected move, South Korea's central bank left the base rate on hold at a record low of 2 percent on Thursday as the government is upping the ante on structural reform over short-term policies to bolster growth.With the latest move, the Bank of Korea extended its wait-and-see stance to a third straight month after slashing the base rate by a quarter percentage point twice, in August and October, last year."The monetary committee voted to keep the base rate on hold given that the econ

Jan. 15, 2015

Gov't to use FTAs, smaller companies to fuel growth in 2015

South Korea will make full use of its free trade agreements and promising smaller companies to meet its exports target this year and invest in future-oriented services and industries, economy-related ministries said Thursday in their joint report to the president.The 2015 economic policy goals also include merging information technology into the manufacturing sector to build "smart" factories and research and development in industrial materials, parts design and engineering.The report, presented

Jan. 15, 2015

S. Korea logs 35th straight month of trade surplus in December

South Korea posted a trade surplus for the 35th month in a row in December, helped by a rise in overseas shipments and a decline in imports, customs data showed Thursday.According to the data released by the Korea Customs Service, the country's trade surplus came to $5.74 billion last month, up from $5.39 billion tallied for the previous month and $3.63 billion a year earlier.Exports moved up 3.6 percent on-year to $49.7 billion, while imports contracted 0.9 percent to $43.95 billion. Export, im

Jan. 15, 2015