The Korea Herald

Gap widening between GDP growth, sentiment

The Bank of Korea’s recent data showed that the gap between the nation’s overall economic growth and ordinary people’s sentiments is likely to widen in 2014.The central bank has been unveiling an adjusted gross domestic product by taking the employment factor into consideration in a bid to measure the disparity between the conventional index and real public sentiment.In its latest announcement over the yearly economic outlook, the central bank forecast that the economy would grow 4 percent this

April 13, 2014

Gap widening between GDP growth, sentiment

Korea seeks to remove non-tariff barriers set by its main trade partners

The trade ministry said Sunday that it is seeking ways to remove non-tariff barriers set by its main trade partners on concerns they may sap Seoul's overseas shipments.China topped the list with 35 cases of non-tariff barriers, followed by the U.S. with 31 and Japan with 31, according to the trade ministry and the Korea International Trade Association. The number of the European Union's non-tariff barriers reached 29, trailed by Indonesia with 22 cases and Vietnam with 19.Countries around the wo

April 13, 2014

[Desk Column] The great salary divide

The recent unveiling of the multi-billion won salaries that registered board of directors at Korean companies took home seems to have shaken many, including myself.But as I was unsure of exactly how to see it, I asked many about their views, and the answers varied quite a bit depending on each person’s circumstances.An ajumma friend in her late 30s who had never worked at any kind of business enterprise was in awe, saying she could not imagine how someone could be paid that much, adding she woul

April 10, 2014

Korea left with little choice on rice market opening: officials

Korea may have no choice but to open up its rice market, government officials here said Thursday, one day after the World Trade Organization again rejected the Philippines’ request to waiver its mandatory rice market liberalization.It was the sixth time the WTO has rejected such a request since the negotiations began in 2011, according to officials from the Ministry of Agriculture, Food and Rural Affairs.“The WTO decision largely tells us two things. One is that it will be nearly impossible for

April 10, 2014

Korean listed firms’ debt ratios fall in 2013

Korean listed firms saw their debt ratios fall last year as they stepped up efforts to improve their financial status amid protracted economic uncertainties, data showed Wednesday.The average debt ratio for 568 companies traded on Seoul’s main bourse came to 88.19 percent at the end of last year, down 4.5 percentage points from a year ago, according to data compiled by the Korea Exchange.Their combined debt reached 578.31 trillion won ($554 billion) at the end of last year, up 0.92 percent from

April 9, 2014

Simpler customs clearance planned for products purchased via foreign websites

South Korea’s customs agency said Wednesday it will simplify the customs clearance process for low-priced consumption goods purchased on foreign websites, a move aimed at shortening delivery time and increasing benefits to consumers.The Korea Customs Service said it will apply the clearance process called “de minimis” to consumption goods bought from foreign websites starting in July.The rule will be applied to products priced at $100 or lower. For goods bought from U.S. websites, the cap will b

April 9, 2014

Korea, Australia ink free trade pact

South Korea and Australia on Tuesday signed a free trade agreement that is expected to reinforce economic ties and help respective businesses find new opportunities.The tearing-down of tariffs on automobiles, beef and other traded goods is expected to give Korea’s gross domestic product a 0.14 percent increase and boost customer welfare by $1.6 billion within 10 years of the FTA’s effectuation, the Korean government said. The signing was held between Korean Trade Minister Yoon Sang-jick and his

April 8, 2014

National debt hits W1,117tr driven by pension liabilities

South Korea’s national debt rose to about 1,117 trillion won ($1.06 trillion) in 2013 mainly due to increased pension liabilities, the Finance Ministry said Tuesday.According to a settlement of accounts for last year’s budget compiled by the ministry and approved by the Cabinet, South Korea’s national debt including the central government’s debt and provisions came to 1,117.3 trillion won, up from 902.1 trillion won tallied a year earlier. This represents 78.2 percent of the country’s gross dome

April 8, 2014

National debt hits W1,117tr driven by pension liabilities

Skepticism greets Dongbu’s pick of ex-lawmaker as new chairman

It is understandable that Dongbu Group, amid rising pressure for restructuring, may want to recruit fresh figures for a change but the appearance of a former senior lawmaker is nevertheless abrupt, especially when he is an outlander to its business.Officials announced on Monday that Choi Yeon-hee, former fourth-term lawmaker of the ruling conservative Saenuri Party, has been named as chairman for the construction and agriculture business sectors.He will thus be one of the group’s three joint chi

April 8, 2014

Skepticism greets Dongbu’s pick of ex-lawmaker as new chairman

S. Korea's national debt rises to 1,117 tln won

South Korea's national debt rose to about 1,117 trillion won ($1.06 trillion) in 2013 mainly due to increased pension liabilities, the finance ministry said Tuesday.According to a settlement of accounts for last year's budget compiled by the ministry and approved by the Cabinet, South Korea's national debt including the central government's debt and provisions came to 1,117.3 trillion won, up from 902.1 trillion won tallied a year earlier. This represents 78.2 percent of the country's gross dome

April 8, 2014

Gov't to push selective deregulation: PM

(Yonhap) -- South Korea's Prime Minister Chung Hong-won said Monday that the government's deregulation campaign is designed to remove only excessive regulations, not all of them, amid criticism over the possibility of "indiscriminate" deregulation.President Park Geun-hye has initiated a drive to eliminate non-essential regulations in a bid to reinvigorate Asia's fourth-largest economy. Ministries and agencies have announced their plans to remove regulations after accepting complaints and recomme

April 7, 2014

Overseas orders for Korean industrial plants jump 42.1% in Q1

Overseas orders for South Korea’s industrial plants surged from a year earlier in the first three months, with large increases in orders from Africa and the Middle East, the government said Monday.In the January-March period, overseas orders amounted to $16.8 billion, up 42.1 percent from the same period in 2013, according to the Ministry of Trade, Industry and Energy.“The rise in the first quarter appears to be the outcome of government efforts to help remove difficulties for (local) firms whil

April 7, 2014

[Newsmaker] Korea suffers youth unemployment blues

Key economic indicators seem to point toward Korea making a solid recovery.The country’s output has been growing thanks to exports. Its consumer spending has picked up on the back of growing welfare financing by the government.Still, Asia’s fourth-largest economy is finding it hard to create jobs for college graduates, even while they pull all-nighters at libraries to pass conglomerates’ corporate entrance exams.Korea’s youth joblessness, which passed 10 percent in February, has become a bigger

April 6, 2014

[Newsmaker] Korea suffers youth unemployment blues

Stocks to receive boost on foreign buying

Shares on the local bourse are expected to rally this week on steady buying from foreign investors, who are likely to stay positive thanks to solid economic data from home and abroad, according to analysts.They now expect the Korean market to settle above the touted 2,000-point level, noting that the benchmark Korea Composite Stock Price Index surpassed the 2,000-point level at one point Wednesday for the first time in three months.The KOSPI finished the week at 1,988.09 this week, up 0.64 perce

April 6, 2014

SME office seeks to expand leverage in China

XIAN, China ― The Small and Medium Business Administration established a new business foothold in Xian for Korean small and medium-sized enterprises that want to expand into inland China.The Xian SME Business Support Center held its opening ceremony last Wednesday in Xian, about 900 kilometers southwest of Beijing, according to SMBA officials. The event was attended by SMBA administrator Han Jung-wha, Park Cheol-kyu, president of the Small and Medium Business Corporation president, Ham Jeong-oh,

April 6, 2014

SME office seeks to expand leverage in China

Stocks to receive boost on foreign buying

Shares on the local bourse are expected to rally this week on account of steady buying from foreign investors, who are likely to stay positive thanks to solid economic data from home and abroad, according to analysts.They now expect the Korean market to settle above the touted 2,000-point level, noting that the benchmark Korea Composite Stock Price Index surpassed the 2,000-point level at one point Wednesday for the first time in three months.The KOSPI finished the week at 1,988.09 this week, up

April 6, 2014

[Weekender] Plant trees for the future

They might just stand still all day long as if they do nothing at all. But they give us more than most of us realize.They absorb toxic gases and give us fresh, cool air.They add beauty to our natural surroundings, and are used in proverbs, novels and movies for enlightenment.They heal us, bring us closer together and even help us make money.And they ask for nothing in return.Trees and forests have become an important and integral part of society especially as the world faces climate change as a

April 4, 2014

Seoul shares open flat ahead of ECB meeting

South Korean stocks opened almost flat Thursday as investors were divided over whether the European Central Bank will take monetary easing steps, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) added 0.37 points, or 0.02 percent, to 1,997.62 in the first 15 minutes of trading.Carmakers traded mixed, with No. 1 Hyundai Motor falling 0.4 percent and its auto parts affiliate Hyundai Mobis edging down 0.62 percent. Kia Motors climbed 0.66 percent.Tech firms also traded bearish,

April 3, 2014

[Graphic News] Debt-to-GDP ratio hits 265% in 2013

The nation’s combined debt held by households, companies and the government was almost three times larger than the size of the South Korean economy in 2013, according to data from the Bank of Korea on Wednesday. The total amount of debt held by non-financial corporations, government institutions, households and non-profit organizations tallied roughly 3.78 quadrillion won ($3.58 trillion) as of the end of 2013.

April 2, 2014

[Graphic News] Debt-to-GDP ratio hits 265% in 2013

[Uniquely Korean] ‘Seonbae’ takes precedence in Korea

A number of foreigners in Korea, including celebrities such as Australian comedian Sam Hammington, U.S. baseball player Mike Loree and French model and actor Fabien Yoon, have confessed that the most peculiar aspect of Korea was its senior-junior culture.In word-to-word translation, the terms “senior” and “junior” could be put as “seonbae” and “hubae” but the Korean version actually has a unique connotation which creates a strict hierarchy.Under the seonbae-hubae system, people’s “ranks” are dec

April 2, 2014