Korea to inject 26tr won in H2: finance minister

The government will inject about 26 trillion won ($25.3 billion) in the form of fiscal measures and policy financing during the remainder of this year to help the slowing economic recovery, the finance minister said Wednesday.“In order to carry out diverse policy measures in a speedy manner, we plan to inject about 26 trillion won (into economic recovery efforts) by strengthening fiscal measures and policy financing,” Choi Kyung-hwan told a meeting with other policymakers. This is a follow-up to

July 30, 2014

Overseas travel spending hits new high in June

Overseas travel spending soared to a record high in June as South Koreans continued to flock to foreign destinations despite a prolonged slump in domestic demand, central bank data showed Wednesday.Overseas travel spending totaled $1.7 billion in June, growing 23.3 percent from the previous month, according to the Bank of Korea. The figure does not cover traveling for study purposes.The latest data, which is part of the current account, comes only two months after overseas travel spending set a

July 30, 2014

IMF urges S. Korea to limit foreign exchange intervention

The International Monetary Fund(IMF) urged South Korea to refrain from stepping into the foreign exchange market in its report released Tuesday, saying the appreciation of the country's currency is caused by its large trade surplus and excessive foreign reserves. In an external sector report based on the policies of 2013 and the first half of 2014, the IMF said, "In some countries (China, Korea), FX (foreign exchange) purchases for non-spot market interventions were deployed in the context of re

July 30, 2014

S. Korea to inject 26 tln won in H2 for economic recovery: minister

The government will inject about 26 trillion won (US$25.3 billion) in the forms of fiscal measures and policy financing during the remainder of this year to help the slowing economic recovery, the finance minister said Wednesday."In order to carry out diverse policy measures in a speedy manner, we plan to inject about 26 trillion won by strengthening fiscal measures and policy financing," Choi Kyung-hwan told a meeting with other policymakers. This is a follow-up on the government's economy mana

July 30, 2014

S. Korea's industrial output grows 2.9 pct on-month in June

South Korea's industrial output grew at the fastest pace in four years and nine months in June, raising expectations that the economic recovery might be gaining some momentum, a government report showed Wednesday. According to the report by Statistics Korea, production in the mining, manufacturing, gas and electricity industries expanded 2.9 percent last month from May following a revised 2.8 percent fall tallied a month earlier. This marked the fastest on-month output growth since September 200

July 30, 2014

Overseas travel spending hits new high in June

Overseas travel spending soared to a record high in June as South Koreans continued to flock to foreign destinations despite a prolonged slump in domestic demand, central bank data showed Wednesday.Overseas travel spending totaled US$1.7 billion in June, growing 23.3 percent from the previous month, according to the Bank of Korea. The figure does not cover traveling for study purposes.The latest data, which is part of the current account, comes only two months after overseas travel spending set

July 30, 2014

S. Korea mulling easing daily limit in stock market

South Korea is pushing to ease or lift the current daily limit imposed on stock price movements as part of efforts to stimulate the country's stock market, a local media report said Wednesday.According to the daily JoongAng Ilbo, who cited sources from financial authorities, the government is pushing to phase out the 15 percent daily limit in stock price fluctuations. It said the government could announce its position later this month or in August in a meeting chaired by President Park Geun-hye.

July 30, 2014

Local business sentiment drops to 6-month low

South Korea’s major companies are disappointed by the long-deferred economic recovery stemming from unfavorable exchange rates and sluggish consumer demand due to the ferry disaster, a poll showed Tuesday.The Business Survey Index came to a six-month low of 91.6 for August, down from 94 for the previous month, according to the poll of the country’s 600 largest companies by sales, conducted by the Federation of Korean Industries.A BSI reading below the benchmark 100 means pessimists outnumber opt

July 29, 2014

S. Korea's current surplus slips in June

South Korea extended its current account surplus to a 28th consecutive month in June but saw the figure slip from the previous month as the surplus for goods narrowed, central bank data showed Tuesday.The current surplus reached US$7.92 billion last month, compared with a revised $9.08 billion in May, according to the preliminary data by the Bank of Korea (BOK). The current account is the broadest measure of cross-border trade.With the June data out, South Korea's current account surplus for the

July 29, 2014

Seoul shares hit yearly high

South Korean stocks closed at their highest this year on Monday on improved economic data from China, the country’s No. 1 trading partner, and growing anticipation on a string of stimulus measures unveiled by the government, analysts said. The South Korean won fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index gained 14.96 points, or 0.74 percent, to close at 2,048.81. Trading volume was moderate at 343.3 million shares worth 4.56 trillion won ($4.44 billion), with lose

July 28, 2014

Korea to adopt new online payment system

The South Korean government said Monday that it will introduce alternative online payment systems to offer foreign shoppers easier, simpler access to local shopping malls as part of its deregulation drive to boost the economy. The financial authorities have removed the authentification system that limited foreign shoppers from making direct purchases and caused inconveniences in May, but many shops and stores are still using the process for payments of more than 300,000 won ($293), citing securi

July 28, 2014

New cross-shareholding ban takes effect

South Korea’s antitrust watchdog on Friday launched a ban on any new cross-shareholding investment among the affiliates of conglomerates, a move aimed at improving governance of the nation’s leading family-controlled conglomerates.With the new ruling, the Fair Trade Commission is able to impose penalties of up to 10 percent on all newly issued cross-shareholding arrangements. The bill was approved by the National Assembly at the end of 2013. Cross-shareholding practices are often used by owner f

July 25, 2014

EU delays decision on Korea’s IUU fishing status

The European Union’s legislative commission on Wednesday postponed its decision on whether to designate South Korea as a country conducting illegal deep-sea fishing on the heels of heightened efforts from the local government to hold off related sanctions. “After the European Commission had warned three countries ― Curacao, Ghana and South Korea ― that they were not doing enough to fight illegal fishing in November 2013, it will now grant each country an extra six months. The Commission will rev

July 24, 2014

EU delays decision on designating Korea an illegal fishing country

　The European Union on Wednesday postponed its decision on whether to designate South Korea as a country conducting illegal fishing in the deep oceans on the heels of heightened efforts from the government here to hold off related sanctions. 　“After the European Commission had warned three countries -- Curacao, Ghana and South Korea -- that they were not doing enough to fight illegal fishing in November 2013, it will now grant each country an extra six months. The Commission will review their pr

July 24, 2014

S. Korea revises down growth outlook to 3.7 pct for this year

South Korea's economy will grow 3.7 percent in 2014, the government predicted Thursday, revising down its previous estimate as it worried that anemic consumption and slowing exports growth could hurt its overall economic recovery.The latest estimate is lower than the 3.9 percent gain the government expected earlier this year, later hiked to 4.1 percent to reflect amended statistics standards, according to the finance ministry. The government also projected the economy will grow 4 percent in 2015

July 24, 2014