The Korea Herald

Overdue taxes top W7tr

The amount of overdue taxes in South Korea has exceeded 7 trillion won ($6.57 billion) despite the government’s stepped-up efforts to crack down on tax evasion, data showed Tuesday.According to the data offered by the National Tax Service, a total of 732,903 people had failed to pay due national taxes as of end-June. Their combined overdue taxes stood at 7.26 trillion won. The number of tax delinquents was down from the 805,249 tallied in end-2011, but the amount of unpaid taxes spiked 33 percen

Oct. 7, 2014

[Graphic News] Korea’s national debt rises

The South Korean central government’s debt is on the rise, according to government data released Monday. The debt is expected to grow this year to 496.8 trillion won ($464 billion), up 7 percent from 464 trillion won last year, according to a mid-term debt management plan submitted to the National Assembly.The interest on that debt is an expected 21.2 trillion won, up 12 percent on-year, as state borrowing continues to rise. This is the first time in the country’s history that interest on debt h

Oct. 6, 2014

[Graphic News] Korea’s national debt rises

S. Korea's biz community sets up consultative group on China FTA

South Korea's business community has set up a consultative group aimed at reflecting their interests in ongoing free trade agreement (FTA) talks with China, the country's international traders' organization said Monday.According to Korea International Trade Association (KITA), the group will hold regular talks with government policymakers to not only push for more openness in China's manufacturing and service sectors, but to get timely feedback on what headway is being made.The first working lev

Oct. 6, 2014

[Herald Interview] ‘Korea should no longer expect trickle-down effect’

South Korea should no longer expect a “trickle-down” of benefits from conglomerates and the rich to small companies and low-income earners, a local economics professor said, urging the government to seek a paradigm shift in its growth strategy. Korea has been considered a model country of “condensed” economic success from the ashes of the Korean War within a half century, heavily leaning on the spillover effect from the growth of conglomerates. “Big-businesses-friendly economic policies with an

Oct. 5, 2014

[Herald Interview] ‘Korea should no longer expect trickle-down effect’

KOGAS moves headquarters to Daegu

Daegu officials welcome the relocation of KOGAS’ head office to the city. (KOGAS)The state-run Korea Gas Corp. started operations at its new headquarters in Daegu on Oct. 1.Welcomed by city government officials and companies in Daegu after about two weeks of moving, KOGAS CEO Jang Seok-hyo wished the company and employees good luck and future prosperity.KOGAS’ 64,892-square-meter new building, on which construction began in March 2012, has 13 floors. The building is 50 percent more energy effici

Oct. 5, 2014

Samsung, Hyundai fined for collusion

The nation’s antitrust watchdog said Sunday it had fined Samsung C&T and Hyundai Development Co., two of Korea’s top 10 builders, a combined 19 billion won ($17.7 million) for colluding in 2009 to fix the bidding price for the third stage of a construction project to build Seoul subway Line No. 9. The Fair Trade Commission slapped the construction arm of Samsung Group with a fine of 16.2 billion won, while Hyundai Development was fined with 2.7 billion. The watchdog added it would report irregul

Oct. 5, 2014

Korean economy to grow 3.6 percent in 2015

The South Korean economy is expected to expand 3.6 percent in 2015 from this year amid sluggish private consumption and low inflation, a private think tank forecast Sunday. The Hyundai Research Institute predicted Asia’s fourth-largest economy will likely grow 3.5 percent in the first half of next year and gain 3.6 percent in the second half.The think tank’s 2015 outlook is the same as its forecast of 3.6 percent for this year.HRI’s growth forecast for next year, however, is lower than a 4 perce

Oct. 5, 2014

New FDI to Korea soars 38 percent this year

New foreign direct investment pledged to South Korea jumped 38 percent on-year in the first nine months of this year despite slowing economic growth at home and abroad, the government said Sunday.In the January-September period, the amount of new FDI pledges to South Korea came to $14.82 billion, up 37.9 percent from a year earlier and the highest-ever figure for the nine-month period, according to the Ministry of Trade, Industry and Energy. The amount of new FDI that arrived here during the per

Oct. 5, 2014

Household loans to top W1 quadrillion mark this year

South Korea’s household loans extended by financial institutions are expected to surpass the 1 quadrillion won ($942.6 billion) mark this year, data showed Sunday.Outstanding household loans by financial institutions, including commercial lenders, insurers and financial agencies stood at 982.5 trillion won as of the end of the second quarter, according to data from the Bank of Korea. As of end-August, household loans reached 993 trillion won. If the trend keeps up, the country’s household loans

Oct. 5, 2014

BOK expected to cut key rate in Oct. on slow recovery

South Korea's central bank is expected to slash its key interest rate in October in the wake of its August rate cut due to a slow recovery in the country's economy and volatile foreign exchange rates, market watchers said Sunday.In August, the Bank of Korea cut the base rate to 2.25 percent from 2.5 percent, the first rate reduction in 15 months, in an effort to lend support to the government's efforts to boost the economy. Last month, the central bank froze the rate as widely expected.The BOK i

Oct. 5, 2014

Household loans expected to top 1,000-tln won mark this year

South Korea's household loans extended by financial institutions are expected to surpass the 1,000-trillion won (US$942.6 billion) mark this year, data showed Sunday, escalating concerns over the number of indebted households seeing meager income growth compared to rises in prices, especially rents. Outstanding household loans by financial institutions including commercial lenders, insurers and financial agencies stood at 982.5 trillion won as of the end of the second quarter, according to the d

Oct. 5, 2014

New FDI to S. Korea soars 38 pct this year

New foreign direct investment (FDI) pledged to South Korea jumped 38 percent on-year in the first nine months of this year despite slowing economic growth at home and abroad, the government said Sunday.In the January-September period, the amount of new FDI pledges to South Korea came to US$14.82 billion, up 37.9 percent from a year earlier and the highest-ever figure for the nine-month period, according to the Ministry of Trade, Industry and Energy. The amount of new FDI that arrived here during

Oct. 5, 2014

Samsung Group mulls moving Lee home for treatment

Lee Kun-hee, the de facto head of Samsung Group who has been hospitalized since May after suffering a heart attack, might be transferred to his house for further medical treatment, group sources said Friday, amid media reports that his condition is improving. In preparation for home medical treatment, the sources said that Samsung Group is building an elevator inside Lee's house located in central Seoul. "It is right that we are building an elevator in case of his release from the hospital

Oct. 3, 2014

South Korea's economy steadily recovering but pace remains

South Korea's economy is recovering steadily, but the pace still remains weak with business sentiment sharply deteriorating, the top economic policymaker said Thursday. "We are making a steady recovery, but its speed and strength remains weak," Finance Minister Choi Kyung-hwan said at a meeting with a journalists' group in Seoul. "In particular, business sales are declining and profitability is getting worse, a sign that corporate sentiment is sharply shrinking." Choi gave a bleak assessm

Oct. 2, 2014

Seoul gears up to tackle weakening yen

The Korean government plans to unveil a set of measures, including tax and financial support to help exporters cope with the weakening yen, government sources said Wednesday.The dollar broke the 110 yen barrier for the first time in more than six years on Wednesday. The greenback soared to 110.09 yen in late morning Tokyo trade, its highest level since August 2008 and up from 109.64 yen in New York.Japanese 10,000 yen banknotes are arranged for a photograph. (Bloomberg)Seoul also plans to provid

Oct. 1, 2014

Seoul shares dip to 2-month low

Korean stocks dipped to their lowest level in more than two months on Wednesday on concerns over the pace of economic recovery and pro-democracy protests in Hong Kong. The local currency fell sharply against the U.S. dollar.The benchmark Korea Composite Stock Price Index shed 28.55 points, or 1.41 percent, to 1,991.54, the lowest level since July 14, when it closed at 1,993.88 points. Trading volume was moderate at 347 million shares worth 3.35 trillion won ($3.16 billion), with decliners far ou

Oct. 1, 2014

Exports grow 6.8% in Sept., trade surplus for 32nd month

South Korea’s exports increased from a year earlier in September, with imports growing at a slightly faster pace, the government said Wednesday.The country’s outbound shipments came to $47.69 billion last month, up 6.8 percent from the same month last year, according to the Ministry of Trade, Industry and Energy.Imports rose 8 percent on-year to $44.33 billion. The country posted a trade surplus of $3.36 billion. September marked the 32nd straight month the country has posted a trade surplus.The

Oct. 1, 2014

[Herald Interview] Houston mayor seeks bigger economic ties with Seoul

The resumption of U.S. energy exports after nearly four decades and the rise of shale gas as a next-generation energy source will reinforce South Korea-Houston ties in the future, Houston Mayor Annise Parker said. “About 50 percent of our major economy is fueled by the oil and gas sector. The unconventional extraction of shale gas in the country has invigorated the atmosphere and has become a game changer. We are learning about Korean companies’ interest in the sector,” said the leader of the la

Oct. 1, 2014

[Herald Interview] Houston mayor seeks bigger economic ties with Seoul

Industrial output shrinks sharpest in nearly 6 years

Korea’s industrial output shrank at the sharpest pace in nearly six years in August, raising worries that the economic recovery might be losing its momentum, a government report showed Tuesday. According to the report by Statistics Korea, production in the mining, manufacturing, gas and electricity industries fell 3.8 percent last month compared to July. This marked the largest on-month drop since December 2008 when it contracted 10.5 percent.Production in the service sector inched up 0.3 percen

Sept. 30, 2014

Industrial output shrinks sharpest in nearly 6 years

Korean manufacturers’ confidence rises for October

South Korean manufacturers’ business sentiment for next month remained negative but jumped to a three-month high, a poll showed Tuesday.The business sentiment index, which measures manufacturers’ outlook on their business situation for the coming month, came in at 78 for October, compared with 74 for September, according to the Bank of Korea.The forecast for next month marks the highest level since the outlook for July, when the index came in at 78. It also marks the first increase since the out

Sept. 30, 2014