Watchdog to probe parts prices of imported cars

South Korea’s antitrust watchdog said on Sunday it plans to launch an investigation into consumers’ complaints about the overpriced auto parts used in imported foreign vehicles.“As consumers’ complaints are growing over excessive repair costs of imported vehicles, we are going to look into auto part prices of imported cars in September and October,” Noh Dae-lae, head of the Fair Trade Commission, told reporters during a meeting Thursday. His remarks were embargoed until Sunday. He said that the

Aug. 31, 2014

Gov't, ruling party mull hiking 2015 budget by around 5 pct

The government and the ruling party are considering hiking the 2015 budget by about 5 percent, a move apparently aimed at boosting the economy while keeping the country's fiscal status sound. The expansion is lower than the 6 percent increase requested by government ministries and agencies. It is also much lower than the about 10 percent increase in spending that experts have expected since the government unveiled its economy stimulus measures in July."We were briefed on the government's stance

Aug. 31, 2014

South Korea's industrial output grows 1.1% on-month in July

South Korea's industrial output grew for the second straight month in July, raising expectations that the economic recovery might be gaining some momentum, a government report showed Friday. According to the report by Statistics Korea, production in the mining, manufacturing, gas and electricity industries expanded 1.1 percent last month from June. The growth rate, however, slowed down from a revised 2.6 percent gain a month earlier.Production in the service sector inched down 0.4 percent on-mon

Aug. 29, 2014

Korea logs current surplus for 29th straight month

South Korea extended its current surplus streak to a 29th consecutive month in July, helped by solid exports and a narrowing service account deficit, central bank data showed Thursday.The current surplus came in at $7.91 billion last month, compared with $7.92 billion in June, according to the preliminary data by the Bank of Korea. The current account is the broadest measure of cross-border trade.With the July data out, South Korea's current account surplus during the January-July period totaled

Aug. 28, 2014

All firms must subscribe to private pension plans by 2022

The government said Wednesday it will force companies to subscribe to private retirement pension programs in phases by 2022 in an effort to provide a stronger safety net for retirees. Companies with 300 employees or more will have to subscribe to retirement pension programs for their workers starting in 2016.Other firms with smaller workforces are required to subscribe by 2022, according to the Finance Ministry.The decision was announced at a meeting of key economic policymakers, chaired by Fina

Aug. 27, 2014

Anti-trust watchdog probes banks on suspected interest-rate rigging

The South Korean anti-trust watchdog has launched an inspection on local banks suspected of colluding to fix interest rates, bank industry sources said Wednesday, a move insiders linked to the government’s push for lenders to expand credit loans to small and midsized firms.According to the sources, the Fair Trade Commission dispatched officials starting Tuesday to four local banks ― Kookmin Bank, Hana Bank, Woori Bank and Shinhan Bank ― to examine their interest rates for lending and savings.The

Aug. 27, 2014

Conglomerates expand R&D spending on recovery hopes

South Korea's major conglomerates increased spending on research and development in the first half of this year on expectations of a global economic recovery, data showed Wednesday.The combined amount of R&D investment made by 55 affiliates of South Korea's top 10 conglomerates increased 8.28 percent on-year to 30.12 trillion won ($29.64 billion) in the January-June period, according to the data reported in their regulatory filings.Of the tallied firms, 31 companies expanded their spending on R&

Aug. 27, 2014

Samsung gets accreditation for virtual reality headset

South Korean tech giant Samsung Electronics Co. recently obtained government certification for its virtual reality headset, a state agency said Tuesday, creating a buzz that the new product may be showcased at the Internationale Funkausstellung Berlin next month.The National Radio Research Agency, a state-run institution under the Ministry of Science, ICT and Future Planning, said it has recently granted the world’s top maker of smartphones a radio wave certificate for the product named “Gear VR

Aug. 26, 2014

Seoul shares up on shipbuilder, construction gains

South Korean stocks advanced Tuesday as investors returned to buying mode on hope of additional stimulus from the European Central Bank, analysts said. The local currency rose against the U.S. greenback.The benchmark Korea Composite Stock Price Index gained 7.16 points, or 0.35 percent, to close at 2,068.05. Trading volume was slim at 283 million shares worth 3.6 trillion won ($3.5 billion), with gainers beating losers, 499 to 304.Market watchers said investors went bargain hunting, picking up s

Aug. 26, 2014

Finance minister urges lawmakers to pass major economy bills

South Korea's finance minister on Tuesday called on lawmakers to break the prolonged parliamentary deadlock and "swiftly" pass major economy-related bills to help the government jump-start slowing economic growth."The pulse in our economy is weakening," Finance Minister Choi Kyung-hwan said in a joint statement with other key policymakers."If those bills related to the livelihoods of the people do not pass during this session, and if we fail to revive the embers of economic recovery, the economy

Aug. 26, 2014

Ratio of deficit-ridden households increases in Q2

The proportion of households spending more than they take in inched up in the second quarter from a year earlier, government data showed Tuesday, suggesting that people are finding it harder to make ends meet amid slowing economic growth.According to the data provided by Statistics Korea, the proportion of households whose consumption spending exceeded their disposable income stood at 23 percent during the April-June period, up 0.9 percentage point from a year earlier. The increase is attributab

Aug. 26, 2014

Korea mulls building new southern airport

Passenger traffic at a major international airport near South Korea’s second-largest city Busan will hit its maximum capacity in 2023, a government report showed Monday, a finding that is certain to heat up competition among city and provincial governments that want to host a new air hub.Reporting on separate findings by the Paris Airport Authority and the Korea Transport Institute, the transportation ministry said passenger traffic at Gimhae International Airport would rise an average 4.7 perce

Aug. 25, 2014

Online drug smuggling from overseas soars

Seizures of unauthorized drugs bought online soared in the first half of this year, data showed Monday, raising concerns that recently eased customs clearance for goods purchased in overseas online shopping malls may spur such illegal trade. The value of illegal drugs seized by the government among online transactions overseas reached 48.6 billion won ($47.5 million) in the six-month period, according to the data compiled by the Korea Customs Service. The figure is more than 24 times that of 201

Aug. 25, 2014

Conditions for FDI incentives eased

South Korea will lower the requirements for foreign-invested firms to receive financial incentives as it seeks to attract over $20 billion in fresh foreign direct investment for the first time, the government said Sunday.Currently, FDI in any given company or joint venture must be at least twice the value of the land rented inside a foreign investment zone in order for the company to qualify for the special rental rate, which is 1 percent of the land value, according to the Ministry of Trade, In

Aug. 24, 2014

Korea’s inflation stays below 2% for 21st month

South Korea’s consumer price growth remained below 2 percent for the 21st consecutive month in July, data showed Sunday, sparking fears that it could plunge the country into a Japanese-style economic stagnation. Consumer price growth in Asia’s fourth-largest economy has hovered in the 1-2 percent range since November 2012 when it posted 1.6 percent, according to data by Statistics Korea. The low inflation is attributable to a severe slump in domestic demand, economic experts said. Given the situ

Aug. 24, 2014

S. Korea's int'l air passenger traffic rises 10.6 pct in July

South Korea's international air passenger traffic grew more than 10 percent in July from a year earlier thanks to increased flights and routes, the government said Sunday.The number of international air passengers to and from South Korea stood at 5.13 million last month, up 10.6 percent from the previous year, according to the Ministry of Land, Infrastructure and Transport.The number of passengers to and from China spiked 23.2 percent on-year in July, following the expansion of flights and route

Aug. 24, 2014

Big firms keep up in-group deals

More than 12 percent of business deals among large conglomerates in South Korea were so-called intragroup transactions taking place among affiliates, government data showed Thursday.According to data from the Fair Trade Commission, intragroup transactions accounted for 12.46 percent of business deals carried out by 47 major conglomerates. The deals were worth some 181.5 trillion won ($177.5 billion).The ratio was up 0.16 percentage point from a year earlier, while the value of the deals declined

Aug. 21, 2014

Seoul shares sink 1.38% on possible rate hike in U.S.

South Korean stocks sank 1.38 percent Thursday as investor sentiment was shaken by the possibility of an early rate hike in the United States, analysts said Thursday. The local currency fell against the U.S. greenback.The benchmark Korea Composite Stock Price Index lost 28.57 points to close at 2,044.21, dipping below the 2,050 level for the first time in 10 days. Trading volume was slim at 299.8 million shares worth 4.47 trillion won ($4.38 billion), with decliners far outpacing gainers 504 to

Aug. 21, 2014