Park’s pet ministry to buttress science, information and tech

The Ministry of Future Creation and Science, the tentative name for a new ministry formed by integrating two former ministries ― one for science and technology and the other for information and communication ― is expected to be one of the key pillars of the Park Geun-hye administration.From early on in her campaign, Park emphasized that one of her core election pledges would be to sharpen the nation’s science and technology edge. The new ministry is consequently expected to be the vehicle for Pa

Jan. 16, 2013

U.S. to lead global trade talks on services

The United States will kick off multilateral trade talks on service sectors with key countries and economic blocs including Korea, China, Japan and the European Union, the country’s top trade representative Ron Kirk said Tuesday.“The negotiations will begin in Geneva, Switzerland, with a group of 20 trading partners who represent nearly two-thirds of global trade in services,” he said in a statement.The trade chief had also sent his notification to U.S. Congress earlier in the day.The related ta

Jan. 16, 2013

Eximbank sets aside W74tr for exporters

The state-run Export-Import Bank of Korea said Wednesday it will provide local exporting companies with 74 trillion won ($69.8 billion) in lending and loan guarantees to help their overseas shipments.Of the total, 50 trillion won will be provided in loans with the remaining 24 trillion won to be provided through guarantee, the policy lender said in a statement. The fund is the largest yearly amount set aside by the policy lender, it said, adding that 60 percent of it will be extended in the firs

Jan. 16, 2013

Korea to sharply hike capacity for power generation

In response to rising demand for electricity, the government plans to expand the nation’s electricity generation capacity to 110 million kilowatts by 2027, up 37.5 percent from the current 80 million kilowatts, officials said on Wednesday. The officials from the Ministry of Knowledge Economy said the plan will be included in the upcoming Sixth Basic Plan on Electricity Demand and Supply to be published by the ministry at the end of this month.The report, which has been released every two years s

Jan. 16, 2013

Transition team seeks tighter scrutiny of conglomerates

The transition team of President-elect Park Geun-hye is considering expanding the rights for government agencies to file complaints with prosecutors against malpractices by conglomerates.The Fair Trade Commission, the country’s antitrust watchdog, has had the exclusive right to do so against corporate violators.But the team is also seeking to disperse this power to the Small and Medium Business Administration, the Board of Audit and Inspection, the Public Procurement Service and the Anti-Corrupt

Jan. 15, 2013

Market bets on cigarette price hike

Despite denial from the Finance Ministry, the incoming Park Geun-hye government is expected to raise the prices of cigarettes to fund social welfare programs, analysts said Tuesday.The Ministry of Strategy and Finance denied news reports that policymakers are poised to raise cigarette prices or create a new tax on the products.The official denial came a day after a news provider reported that “the Finance Ministry and the Ministry of Health and Welfare are pushing ahead with a hike in tobacco pr

Jan. 15, 2013

Park bolsters power of finance minister

The decision to revive the post of deputy prime minister in charge of economy reflects President-elect Park Geun-hye’s determination to bolster the power of finance minister to tide over the current economic difficulties facing the nation.The post of deputy prime minister was scrapped during the Lee Myung-bak administration. The finance minister will concurrently serve as the deputy prime minister under the Park administration.The personnel policy that the finance minister also takes on the post

Jan. 15, 2013

Power market may open to private firms

The new government is likely to break up state-run Korea Electric Power Corp.’s monopoly in the electricity sales market, according to news reports.The transition committee is discussing ways to restructure the electricity market, which was one of the campaign pledges of President-elect Park Geun-hye, the reports said.The direction for restructuring is to remove the inefficiency caused by the electricity monopoly of KEPCO and to stabilize the supply and demand of electricity. The reform of the e

Jan. 14, 2013

S. Korean exporters feared to face growing protectionism: report

South Korean exporters will likely continue to face growing protectionism this year as major economies struggle to create jobs and shield their local industries from a prolonged economic slowdown, a report said Monday.According to the report compiled by the Korea Trade-Investment Promotion Agency (KOTRA), China, South Korea's top trading partner, is imposing anti-dumping tariffs on 16 South Korean products such as synthetic rubber as of December.The neighboring country is also considering raisin

Jan. 14, 2013

Seoul shares to trade in tight range

South Korea’s stock market is expected to trade in a tight range this week with economic indicators from China and the currency exchange being among the major factors that will determine its direction, analysts said on Saturday.The benchmark Korea Composite Stock Price Index (KOSPI) closed at 1,996.67 last week, down 0.75 percent from a week earlier after undergoing choppy trading.The local currency’s ascent against the U.S. dollar and the weakening yen of Japan could weigh on the market amid wo

Jan. 13, 2013

Finance Ministry to reevaluate all fiscal spending plans from scratch

   The Ministry of Strategy and Finance said Sunday that it will reevaluate all of its existing fiscal spending plans from scratch to come up with the necessary funds needed to meet President-elect Park Geun-hye's campaign pledges, sources from the presidential transition team said Sunday.   Park, who takes office as the country's first woman chief executive on Feb. 25, has said she will need 134.5 trillion won(US$127.3 billion) over the next five years to follow through on the various promises

Jan. 13, 2013

S. Korea's leading export products on decline

  South Korea saw the number of its leading export products fall from a year earlier, raising alarm bells over the country's trade competitiveness, data showed Sunday.   The number of South Korea's leading export products reached 61 in 2011, down from 71 the previous year, according to the data by the financial industry and the Korea International Trade Association (KITA). Leading export products refer to product categories in which South Korea ranks first in export market share.   The data show

Jan. 13, 2013

Younger people's economic participation hits 27-yr low

Economic participation among younger people in South Korea dropped to the lowest level in about 27 years, data showed Saturday, indicating the frozen job market is taking its toll especially on young job seekers.According to the data by Statistics Korea, the economic participation rate among those in their 20s stood at 60.1 percent last month, down from 62.3 percent tallied in the same month a year earlier.The figure marked the lowest level since February 1986, when the rate was 59.6 percent.The

Jan. 12, 2013

Seeds of conflict remain at Ssangyong despite reinstatement

Despite Ssangyong Motor’s Thursday agreement to reinstate 455 workers on unpaid leave from 2009, another labor dispute is looming at the nation’s fifth-largest carmaker. At the center of the brewing controversy is how to deal with those who voluntarily resigned or were fired during the restructuring process in 2009. The carmaker didn’t include them in the list of reinstatement, but labor circles, including the Korean Metal Workers Union, have urged the company to rehire them as they left the com

Jan. 11, 2013

Transition team may upgrade status of small business agency

The transition team of President-elect Park Geun-hye is expected to consider elevating the administrative status of the Small and Medium Business Administration, which oversees policy support for smaller businesses. On Friday, the state-run agency offered its policy briefing to the transition team, emphasizing the necessity for it to be upgraded to a ministerial-level government office to carry out relevant policies more efficiently. The agency, affiliated with the Ministry of Knowledge Economy,

Jan. 11, 2013

NTS targets tax evasion suspects, shadow economy

A key part of the incoming Park Geun-hye administration’s fiscal policy is to cover 6 trillion won ($5.7 billion) each year of its increased welfare budget with taxes collected from the “underground economy.”For this, the National Tax Service is preparing to gain more access to the Financial Intelligence Unit’s information on cash transactions and conduct tax inquiries on sectors highly suspected of tax evasion.“We first need to establish the necessary infrastructure ― that is, greater access to

Jan. 11, 2013