Park to renew calls for expansion of free trade to curb protectionism

President Park Geun-hye plans to renew her calls for the expansion of free trade to curb the rise of protectionism during this week's Asia-Europe Meeting summit in Mongolia, she said in an interview on Thursday.In her written interview with Mongolia's Montsame news agency, Park stressed that promoting free trade among nations across the world is a "shortcut" to achieving a global economic recovery.The interview was published a day before the two-day ASEM summit in the Mongolian capital of Ulaanb

July 14, 2016

Korea's home transactions sink 23.4% in H1

South Korea's home transactions tumbled 23.4 percent in the first six months of the year from a year earlier, the government said Thursday, in an apparent sign of a slowdown in the local real estate market.The number of home transactions came to 468,000 during the January-June period, compared to a record high of 611,000 over the same period last year, according to the Ministry of Land, Infrastructure and Transport.For June alone, home sales fell 16.1 percent on-year to 92,611, marking the seven

July 14, 2016

Korea-Colombia free trade pact to go into effect this week

The South Korea-Colombia free trade agreement will go into effect from Friday, immediately eliminating tariffs on 4,390 South Korean export products to the South American country, the trade ministry said.Trade volume between the two countries last year reached $1.45 billion, with South Korea exporting $1.13 billion's worth for a $800 million trade surplus, according to the Ministry of Trade, Industry and Energy on Thursday. Colombia, with the third-largest population in South America at 47.6 mil

July 14, 2016

Korea to pour nearly 6 tln won to prop up economy

South Korea will inject a net 6 trillion won ($5.2 billion) into a supplementary budget for the economy in order to invigorate Asia's fourth-largest economy struggling with faltering exports and flaccid domestic demand, the finance ministry said Thursday.Last month, the government announced a set of stimulus programs, including 10 billion won in extra budget for the second half of this year, citing rising uncertainties at home and abroad.South Korea's exports posted negative growth for a record

July 14, 2016

BOK holds key rate steady at record low 1.25% for July

South Korea's central bank kept its policy rate frozen for July on Thursday, one month after it sent the key rate to a record low to bolster growth in Asia's fourth-largest economy.In a widely expected move, the Bank of Korea's monetary policy board voted to keep the key rate steady at 1.25 percent.The board made a surprise rate cut in June after holding the key interest rate steady at 1.5 percent for 11 consecutive months in what many saw as a pre-emptive step to boost local spending, one of tw

July 14, 2016

[Graphic News] Korea-China FTA boosts cross-border investment

Cross-border investment between South Korea and China has risen sharply this year, fanned by the Korea-China free trade agreement, which took effect in December 2015, industry data showed Tuesday. According to the Kora International Trade Association, South Korean entities invested $2.2 billion in China during the first five months of the year. The figure is 12.2 percent higher than that recorded during the same period last year. At the rate recorded in the January-May period, South Korean inves

July 13, 2016

Korea to push for extra spending amid rising youth unemployment

South Korea’s rising youth unemployment rate will be enough reason for the government to push for early extra spending for the latter half of this year as the youth joblessness will hurt the prospects of its economy.Amid low growth forecast and a negative outlook for the job market beset by a growing number of companies reluctant to hire extra workforce, Korea’s youth unemployment reached a monthly record high of 10.3 percent in June.Without the supplementary budget, Finance Minister Yoo Il-ho t

July 13, 2016

Increased wages and red tape force Korean manufacturers abroad

A growing number of Korean manufacturing companies have been moving production facilities abroad, frustrated by rising wages and complicated regulations at home.While acknowledging that transferring factories to other countries may be an inevitable option for maintaining competitiveness in global markets, economists here express concern about the rapid pace of offshoring.According to data from the Bank of Korea and the Hyundai Research Institute, a private think tank, the proportion of overseas

July 13, 2016

S. Korea’s export prices continued to fall in June: BOK

[THE INVESTOR] South Korea’s export prices continued to fall in June, mainly on the back of lower international oil prices, according to preliminary Bank of Korea data on July 13. Export prices, in terms of the Korean currency, fell 4.9 percent on-year in June, with the pace quickening from a 4 percent decline in May. The country’s export price index came to 77.97 percent last month, up 0.7 percent from 77.44 percent the previous month, according to the central bank data.However, from a month ea

July 13, 2016

BOK expected to cut growth forecast again

[THE INVESTOR] The Bank of Korea may lower its economic growth forecast again, and maintain the key rate at 1.25 percent. The central bank is set to hold a Monetary Policy Committee meeting on July 14, and announce a new growth forecast, and pundits say that the 2.8 percent target is likely to be lowered. BOK Gov. Lee Ju-yeol stated after last month’s meeting that the slowdown in global trade is bigger than initially anticipated, and that risks arising from corporate restructuring is likely to g

July 13, 2016

Seoul expects no major reprisal from China over THAAD, contingency plans in place

[THE INVESTOR] The South Korean government has a number of contingency plans in case China takes economic action in retaliation for Seoul’s decision to deploy the Terminal High Altitude Area Defense system, the finance minister said on July 13. Speaking at the National Assembly, Finance Minister Yoo Il-ho, who also doubles as deputy prime minister for economic affairs, said that Seoul has contingency plans for a number of scenarios, but that major economic reprisal is not considered likely. Fina

July 13, 2016

Korea's M2 money supply grows in May

South Korea's M2 money supply continued to grow from a month earlier in May on a rise in short-term deposits, central bank data showed Wednesday.The M2 came to 2,318.5 trillion won ($2,024.7 billion) as of end-May, up 0.7 percent from a month earlier, according to preliminary data from the Bank of Korea.The May tally marks an acceleration from a 0.3 percent on-month gain in the previous month.M2 refers to currency in circulation, including bank debentures and deposits with a maturity of less tha

July 13, 2016

Household debt grows at fast pace in June

Household loans extended by local banks continued to rise at a fast rate in June, apparently on record low interest rates, central bank data showed Wednesday.Outstanding household loans extended by local lenders came to 667.5 trillion won ($582.67 billion) as of the end of last month, up 6.6 trillion won from the previous month, according to the data from the Bank of Korea.The on-month increase far outpaced a five-year average of 3 trillion won for June from the 2010-2014 period, it noted."Home-

July 13, 2016

Korean retailers' Q3 confidence drops

South Korean retailers' business sentiment will remain weak under the current quarter, a survey showed Wednesday, as many expect a continued slump for all related businesses except for e-commerce.The Korean Chamber of Commerce and Industry said its retail business survey index stood at 96 for the third quarter of the year, down from the 98 recorded a quarter earlier.It's based on a poll of 941 retail businesses in Seoul and six other major cities nationwide. A reading below 100 means that pessim

July 13, 2016

Korea-China FTA boosts cross-border investment

[THE INVESTOR] Cross-border investment between South Korea and China has risen sharply this year, fanned by the Korea-China free trade agreement, industry data showed on July 13. The trade pact took effect in December 2015. According to the Kora International Trade Association, South Korean entities invested US$2.2 billion in China during the first five months of the year. The figure is 12.2 percent higher than that recorded during the same period last year. The Korea-China FTA signing ceremony

July 13, 2016

Gov't becoming bigger driver of economic expansion: KDI

The main driver of South Korea's economy is shifting from the private sector to the government, who last year contributed to one-third of the country's economic growth, a think tank said Wednesday.South Korea's economy expanded 2.6 percent last year, with the government contributing 0.8 percent, according to the Korea Development Institute. State spending helped with 0.5 percent and government investment contributed 0.3 percent. Without such contribution, the country's economic growth last year

July 13, 2016

Korea's export prices continue to drop in June

South Korea's export prices continued to fall from a year earlier in June due to a large drop in global oil prices that affected overall prices of South Korean petroleum products, central bank data showed Wednesday.Export prices, in terms of local currency, slipped 4.9 percent on-year last month, quickening from a 4 percent drop in the previous month, according to preliminary data from the Bank of Korea.From a month earlier, export prices inched up 0.2 percent, slowing from a 2.4 percent on-mont

July 13, 2016

Korea's jobless rate drops to 3.6% in June

South Korea's jobless rate dropped slightly in June from a year earlier, but the unemployment rate for young adults remained high amid a protracted economic slowdown, a government report showed Wednesday.The unemployment rate in Asia's fourth-largest economy stood at 3.6 percent last month, compared with 3.7 percent tallied in May, according to the report compiled by Statistics Korea.Job creation edged up from the previous month. The number of employed people stood at 26.55 million in June, up 3

July 13, 2016

Chinese non-tariff barriers raise concerns

[THE INVESTOR] The South Korean economy could be hit hard if China increases non-tariff barriers that restrict the sale of Korean-made goods, as the country is heavily dependent on China for exports, industry data showed on July 12. According to a report released by Hyundai Research Institute, the amount of Korea’s export to China affected by the two most common non-tariff barriers -- technical barriers to trade and sanitary and phytosanitary measures -- has sharply increased since 2008. The num

July 12, 2016