The Korea Herald

Household loans up 11.8% in September

Household loans extended by local banks rose 11.8 percent in September from a year earlier due to an increase in collective loans, central bank data showed Wednesday.Outstanding household loans from local lenders came to 688.4 trillion won ($613 billion) as of end-September, compared with 615.7 trillion won from a year earlier, according to the data from the Bank of Korea.Compared with August this year, the amount rose by 6.1 trillion won. The on-month increase marked a decline from an 8.6 trill

Oct. 12, 2016

[Monitor] Korea’s exports tumble 18%

South Korea’s exports dropped 18.2 percent in the first 10 days of October from a year earlier, data from the Korea Customs Service showed Tuesday.Total exports reached $9.47 billion from Oct. 1-10, down from $11.58 billion in the same period last year.Exports of semiconductors fell 5.9 percent on-year and those of wireless devices plunged 31.2 percent. Shipments of cars and auto parts declined 51.9 percent and 20.3 percent, respectively.The sharp drops were attributed to the ongoing partial str

Oct. 11, 2016

Mobile payments up 53% in Q2: BOK

The amount of mobile payments rose 53.3 percent in the second quarter from a quarter earlier, central bank data showed Tuesday, as a growing number of South Koreans are using smartphones for transactions.The daily average of mobile payments came to 20.7 billion won ($18 million) in the April-June period, up 7.2 billion won from the previous quarter, according to the data from the Bank of Korea.Mobile payments allow users to preregister their credit or debit cards and make transactions simply by

Oct. 11, 2016

Debate escalates over tax increases

Despite a protracted economic downturn, South Korea’s tax revenues in the first seven months of this year increased by 20.1 trillion won ($18 billion) from a year earlier to reach 150 trillion won, according to recent data from the National Tax Service.The figure accounts for 67.2 percent of the annual revenue target set by the tax authorities, a 4.8 percentage point increase over the same period last year.This continuous rise in revenues is attributable to a booming property market, increasing

Oct. 10, 2016

[WWF Special] Running out of Earth to live on

For more than 40 years, humanity’s demands have exceeded what our planet can regenerate. This year, people are using natural resources equivalent to 1.6 times that found on Earth. And for Koreans, the amount is 3.3 times that found on the planet. This is according to the ecological balance sheet, known as the Global Ecological Footprint Report, released by the World Wild Fund for Nature, Korea (WWF-Korea) and the Global Footprint Network. The report shows that there is a signific

Oct. 10, 2016

[WWF Special] Running out of Earth to live on

Electronic payment hits record high in Q2

The amount of payments made electronically hit a record quarterly high in the second quarter, central bank data showed Monday, in the latest sign that a growing number of South Koreans are using electronic means for financial transactions.The daily average amount of electronic financial transactions came to 322 billion won ($289 million) in the April-June period, up 7 percent from the previous quarter, according to the data from the Bank of Korea (BOK).The Q2 reading marks a slight decline from

Oct. 10, 2016

Park to meet Japanese business leaders over economic cooperation

South Korean President Park Geun-hye will meet with a Japanese business delegation Monday in Seoul to discuss ways to bolster bilateral economic cooperation, her office Cheong Wa Dae said.At the presidential office, Park will hold the 19-member delegation of the Japanese Business Federation, also known as Keidanren, presidential spokesman Jung Youn-kuk said. The Keidanren delegation, led by its Chairman Sadayuki Sakakibara, is in Seoul to attend a meeting with their South Korean counterparts."Pr

Oct. 10, 2016

Park to meet Japanese business leaders over economic cooperation

Gov't to tighten oversight of banks over household debts

South Korea's chief financial regulator said Monday that it needs to turn the screws on local banks and other lenders extending mortgage loans at a rapid pace, as the government is struggling to curb household debts."The government will take strong, specific follow-up measures" to the Aug. 25 announcement aimed at slowing the growth in the amount of household debts, Yim Jong-yong, chairman of the Financial Services Commission (FSC), told reporters.His remarks came amid public criticism that the

Oct. 10, 2016

Gov't to tighten oversight of banks over household debts

‘More room’ to cut interest rate for S. Korea: minister

South Korea’s Finance Minister Yoo Il-ho said over the weekend there is “more room” to use monetary policy at the central bank and partly admitted that lower interest rates led to a rise in household debt.His comments came as the Bank of Korea is to decide its key rate on Thursday this week amid weak exports, slow manufacturing production and growing household debt.South Korea's Finance Minister Yoo Il-ho(right) talks with the U.S. Federal Reserve Chair Janet Yellen before the G20 Finance Minist

Oct. 9, 2016

‘More room’ to cut interest rate for S. Korea: minister

S. Korea, Britain agree to bolster trade ties

Finance Minister Yoo Il-ho met with his British counterpart on Friday (local time) in Washington, D.C., to discuss ways to expand ties between the two countries after London's exit from the European Union (EU).Yoo is on a U.S. trip to attend the conferences of the World Bank and the International Monetary Fund, as well as the G20 Finance Ministers and Central Bank Governors meetings.During his visit, Yoo and his British counterpart Philip Hammond discussed post-Brexit issues, especially as the c

Oct. 8, 2016

Samsung head's shares valued over 14 tln won

Samsung Electronics Chairman Lee Kun-hee saw his stakes value surpass 14 trillion won (US$12.5 billion) for the first time, data showed Saturday, as shares under Samsung Group soared after U.S. hedge fund Elliott Management urged the tech giant to split into two.According to the data compiled by industry tracker Chaebul.com, the combined value of shares held by Lee advanced 25 percent on Friday compared to the first trading session of 2016.Market watchers said the increase came after Elliott als

Oct. 8, 2016

Korean shares down in late morning trading

South Korean shares traded 0.25 percent lower late Friday morning as investors awaited a closely watched US jobs report to figure out the timing of an interest rate hike. The benchmark Korea Composite Stock Price Index lost 5.25 points to 2,060.05 as of 11:20 a.m.Investors remained cautious ahead of US nonfarm payroll report later in the day to get clues on whether the Federal Reserve will raise rates before the end of this year.Most market heavyweights traded weak, while Samsung affiliates we

Oct. 7, 2016

14% of professionals earn less than $1,800 a month: lawmaker

Nearly 14 percent of South Korea's professionals posted less than 2 million won ($1,800) in monthly earnings last year, an opposition party lawmaker said Friday.Rep. Park Kwang-on of the main opposition Minjoo Party said 4,609 out of 33,319 professional workers such as lawyers and accountants said their average annual earnings stood at less than 24 million won last year, citing data by the National Tax Service.By job, 20.1 percent of architects reported to the tax authorities that their annual e

Oct. 7, 2016

Korean stocks start lower ahead of US jobs data

South Korean shares opened a tad lower Friday as investors awaited a closely watched US jobs report to figure out the timing of an interest rate hike. The benchmark Korea Composite Stock Price Index shed 1.9 points, or 0.09 percent, to 2,063.4 in the first 15 minutes of trading. Investors remained cautious ahead of US nonfarm payroll report later in the day to get clues on whether the Federal Reserve will raise rates before the end of this year.Most market heavyweights traded weak, while Samsun

Oct. 7, 2016

Seoul to spend extra W10t to stimulate economy

The South Korean government said it will spend an extra 10 trillion won ($8.9 billion) in the fourth quarter this year to prop up the slowing growth rate, as exports and manufacturing are hit by a series of strikes at automakers and corporate restructuring.Finance Minister Yoo Il-ho said in an economy-related ministers meeting that the local economy’s fourth quarter will face mixed elements.“Spending the scheduled extra budget in the fourth quarter and the consumption event Korea Sale Festa will

Oct. 6, 2016

Seoul to spend extra W10t to stimulate economy

Court dismisses suit against current electricity rate system

A Seoul court on Thursday ruled in favor of the state-run electric power supplier, dismissing a suit filed against the country's controversial electricity rate system which critics say excessively charges users. In August 2014, a total of 17 plaintiffs filed the case against the Korea Electric Power Corporation, saying the power supplier made unfair profits by overcharging ordinary citizens.The plaintiffs cited the Act on the Regulation of Terms and Conditions, which stipulated that any clause w

Oct. 6, 2016

Gov't to purchase all surplus rice to stabilize market prices

The South Korean government said Thursday that it will purchase all of this year's rice surplus as part of efforts to deal with a chronic supply glut of the staple crop.The Ministry of Agriculture, Food and Rural Affairs projected that some 300,000 tons of rice will be in excess this year, as the estimated 4.2 million ton supply will outnumber the 3.9 million ton demand."The government will pull the total rice oversupply out of the market before the end of this year," said the ministry. "The exa

Oct. 6, 2016

Manufacturers' Q4 biz outlook still gloomy: poll

South Korea's major manufacturers are still pessimistic about business conditions for the fourth quarter of this year due to China's slowing growth and growing protectionism, a poll showed Thursday.The Korea Chamber of Commerce & Industry said its business survey index for the October-December period came to 86, slightly up from 85 tallied in the previous quarter. The result is based on a survey of 2,400 manufacturing companies nationwide. A reading of under 100 means pessimists outnumber optimi

Oct. 6, 2016

[MONITOR] Asset inherited to underaged offspring reach W3.05 trillion

The number of underage South Koreans who have inherited assets from their parents reached 26,227 in the past five years, with the average value per person reaching 120 million won.They included some 2,207 who are aged less than 2, who received a total worth of 196.9 billion won.The Minjoo Party of Korea Rep. Park Kwang-on, who released the data during the parliamentary audit, said the effective inheritance tax rates among such underaged receipients was low, at 20.9 percent.

Oct. 5, 2016

[MONITOR] Asset inherited to underaged offspring reach W3.05 trillion

Views clash on economic policies in parliamentary audit

Rival party lawmakers gave clashing reviews of the country’s economy and the government’s economic policies during a parliamentary audit Wednesday. Lawmakers from opposition parties stressed that expansionary policies to bolster the property market resulted in rising housing expenses for the ordinary citizen and snowballing household debt. But those from the ruling Saenuri Party noted the Korean economy is in better shape in some areas compared to that under former President Lee Myung-bak.Korea’

Oct. 5, 2016

Views clash on economic policies in parliamentary audit