The Korea Herald

Consumer prices mark sharpest rise in 7 months

Consumer prices in South Korea climbed 1.2 percent on-year last month, marking the biggest jump in seven months after remaining stagnant or declining amid growing deflation concerns, data from Statistics Korea showed Wednesday.　The on-month increase of 0.6 percent in overall consumer price level was the highest since January 2013. The upward change in consumer prices was backed by soaring prices for agricultural products such as vegetables, fruits and fish, which saw an average increase of 15.4

Oct. 5, 2016

Consumer prices mark sharpest rise in 7 months

Concerns deepen over ballooning household debt

Concerns have been deepening about the ballooning household debt in South Korea.As of end-June, the country’s household borrowings amounted to a record high of 1,257.3 trillion won ($1.149 trillion), up 11.1 percent from a year earlier, according to data from the Bank of Korea.The ratio of household debt to disposable income stood at 145.6 percent at the end of March, a 4.9 percentage point increase over the previous six months. The increase surpassed the average annual rise of 3.1 percentage po

Oct. 5, 2016

Concerns deepen over ballooning household debt

Finance ministry remains cautious about economic recovery

South Korea's finance ministry on Wednesday remained cautious about whether Asia's fourth-largest economy has gotten on a clear recovery track, as economic indicators have been fluctuating in recent months amid rising uncertainties at home and abroad.In its reports submitted to the National Assembly for an annual parliamentary audit, the Ministry of Strategy and Finance said the country's economy is facing flaccid recovery momentum with the local financial market staying unpredictable.South Kore

Oct. 5, 2016

BOK chief leaves for US for G20 meeting on global economy

South Korea's central bank said its governor left for the United States on Wednesday for talks with his counterparts from the world's major economies on pending economic issues and ways to stabilize global financial markets. Bank of Korea Governor Lee Ju-yeol is scheduled to attend the G20 Finance Ministers and Central Bank Governors meetings in Washington on Thursday, according to the central bank.Lee also plans to attend annual meetings of the International Monetary Fund and the World Bank Gro

Oct. 5, 2016

Gov't, ruling party mull purchasing surplus rice for price stability

The South Korean government and the ruling Saenuri Party have agreed to consider purchasing surplus rice produced in the country in bulk to ensure price stability amid concerns of falling prices caused by a better-than-expected harvest."We urged the government to purchase the surplus production in bulk within this year to separate them from the market," said Rep.Kim Gwang-lim, the policy official of Saenuri, after the meeting, adding the government also said it will make efforts to reflect such

Oct. 5, 2016

Consumer price rise hits 7-month high in September

South Korea's consumer prices rose at the fastest clip in seven months in September amid growing concerns over possible deflation, a government report showed Wednesday.The country's consumer price index rose 1.2 percent last month from a year earlier, marking the highest monthly gain in seven months, according to the data compiled by Statistics Korea.The figure had stayed below the 1 percent level four straight months since May.From a month earlier, the index edged down 0.6 percent in September.

Oct. 5, 2016

Increased imports help narrow current account surplus in August

South Korea recorded its lowest current account surplus in four months in August due to a slight increase in imports, the central bank said on Tuesday. The Bank of Korea said the country gained $5.51 billion in current account surplus in August, narrowing from $8.67 billion in the previous month, citing its preliminary report on the balance of payments.The surplus volume kept shrinking for two months in a row since June as a result of slight increases in imports during the period. And it is the

Oct. 4, 2016

Increased imports help narrow current account surplus in August

Korea needs both monetary and fiscal easing: BOK chief

Bank of Korea Gov. Lee Ju-yeol said the Korean economy needs both monetary and fiscal easing, should it recover its growth momentum. “Monetary policy alone cannot help recover the economic growth, and we need fiscal easing as well,” Lee said in a parliamentary audit by the Strategy and Finance Committee.His comments came as the prospect for the Korean economy in the second half turned bleaker. The Korea Economic Research Institute recently revised down the economic growth outlook for the second

Oct. 4, 2016

Korea needs both monetary and fiscal easing: BOK chief

Korea welcomes 11.5 mln travelers through Aug.

A total of 11.5 million foreigners visited South Korea in the first eight months of this year, up 21.7 percent from two years ago, the Ministry of Culture, Sports and Tourism said Wednesday. The number of Chinese travelers was tallied at 5.61 million through August, surging 36.1 percent from 2014, while those from Hong Kong and Taiwan increased 23.7 percent to 1.07 million over the period, the ministry said. The ministry said it expects to see a rising influx of travelers during China's national

Oct. 4, 2016

This year's growth target of 2.8% likely to be attained: vice minister

The South Korean economy is expected to attain its 2016 growth target of 2.8 percent in the end despite some downside pressures ahead in the remainder of the year, a vice finance minister said Tuesday."Our earlier growth forecast was set at 2.8 percent and the economy has been well following the path for the first three quarters as we've anticipated," Vice Finance Minister Choi Sang-mok said in a luncheon meeting with local media. "Despite many lingering downside risks in the fourth quarter, we

Oct. 4, 2016

Labor force participation rate for 20-somethings hits 10-yr high

The labor force participation rate for South Koreans in their 20s reached a 10-year high in the second quarter, government data showed Tuesday, due mainly to a surge in the number of jobless 20-somethings.According to the data by Statistics Korea, 65.7 percent of people aged 20 to 29 were inside the labor force during the April-June period. It was up 1.3 percentage points from a year earlier and the highest since 65.8 percent in the fourth quarter of 2005.In particular, the labor force participa

Oct. 4, 2016

Korea's current account surplus hits 4-month low at $5.51 bln in August

South Korea's current account surplus hit the lowest in four months in August due to slowing exports and increased imports, central bank data showed Tuesday.The current account surplus reached $5.51 billion in August, compared with $8.67 billion in July, according to the preliminary data from the Bank of Korea.The August figure represents a drop from an $8.54 billion surplus from a year earlier and also marks the lowest in four months. The current account is the biggest measure of cross-border t

Oct. 4, 2016

[Photo News] Park meets softbank chief

South Korean President Park Geun-hye (right) meets Masayoshi Son, the chairman of Japanese telecommunications giant SoftBank Corp., to discuss bilateral cooperation on investments and new industries at Cheong Wa Dae on Friday. (Yonhap)

Sept. 30, 2016

Gov't urges Seoul to adopt performance-based wage system

The South Korean government on Friday urged Seoul city to adopt a performance-based wage system for the organizations under it, adding the change is necessary to make public bodies more competitive.The Ministry of the Interior, as well as finance and labor ministries, made a joint statement urging the Seoul Metropolitan Government to show more willingness to drop the outdated seniority-based wage system.Adopting the wage system based on workers' individual performances both in the private and pu

Sept. 30, 2016

Gov't urges Seoul to adopt performance-based wage system

Some 670,000 households unable to pay electricity bill: report

Some 670,000 households were unable to pay their electricity bill this year as of July, a report from the state energy supplier showed Friday, a tally that may increase after record summer heat is estimated to have jacked up the bill from using air conditioning.The report, submitted by the Korea Electric Power Corp. to the National Assembly energy committee, said 670,000 households owed 83.1 billion won ($75.8 million) in unpaid power bills during the first seven months of this year. The number

Sept. 30, 2016

Some 670,000 households unable to pay electricity bill: report

Nationwide strikes weigh on economy

Strikes by railway and subway workers as well as Hyundai Motor workers are taking a further toll on the nation‘s economy, already suffering from continued low growth in the wake of weak consumption and exports.As the strikes have continued for several days, damage has begun to snowball due to the partial paralysis of car production and logistics networks, industry watchers said Thursday.Financial damages from the strikes by unionized workers of Hyundai Motor, the country’s biggest carmaker, have

Sept. 29, 2016

Extreme caution prevails toward anti-graft law

Public servants in South Korea are behaving extremely carefully to avoid violating the newly implemented anti-corruption law. The Improper Solicitation and Graft Act that went into force Wednesday is expected to bring about big and small changes, with the aim of rooting out corruption in the public sector. Also called the “Kim Young-ran Act” -- named after the former chief of the Anti-Corruption and Civil Rights Commission who initiated the drive in 2011 -- it bans all employees of government ag

Sept. 29, 2016

Extreme caution prevails toward anti-graft law

'Korea Sale Festa' kicks off with huge discounts from retailers

South Korea kicked off a nationwide shopping event on Thursday with a variety of promotions, cultural and entertainment events to draw more shoppers at home and abroad and revive the sluggish domestic consumption.The massive shopping campaign called "Korea Sale Festa" runs until Oct. 9, involving major retailers, manufacturers and traditional markets, while cultural and entertainment programs for foreign travelers will be held throughout October. The shopping festival is jointly hosted by the Mi

Sept. 29, 2016

Seoul may intervene in Hyundai Motor strike

The South Korean government is considering intervening in Hyundai Motor’s labor strike, as a new wave of labor actions might put more stress on the country’s already-slowing economy. “Given its impact on the broader industry and national economy, the government will consider all possible measures to put a swift end to the Hyundai Motor strike,” Labor Minister Lee Ki-kwon said Wednesday. Unionized workers of Hyundai Motor, Korea’s largest carmaker, began their first full strike in 12 years Monday

Sept. 28, 2016

Seoul may intervene in Hyundai Motor strike

Seoul expects 250,000 Chinese tourists in early Oct.

The Seoul Metropolitan Government said Wednesday around 250,000 tourists are set to visit the city in early October thanks to China celebrating a key holiday, stressing every effort will be made to offer various programs to welcome the visitors.Seoul said it will operate visitors' centers in major tourist areas throughout the city, including the shopping districts of Myeongdong and Dongdaemun, which are hubs for the country's fashion industry. The centers will provide a variety of information to

Sept. 28, 2016