Global oil price to remain range-bound: report

Global oil prices will likely move in a tight range throughout the year with U.S. shale production keeping a low ceiling, a central bank report said Wednesday.Low oil prices have been partly to blame for a prolonged slump in Korea's exports as petroleum and petrochemical products account for nearly one-fourth of the country's overall outbound shipments. Korea's exports have fallen every single month since the start of last year.Global oil prices have somewhat recovered since hitting what many be

July 6, 2016

Antitrust watchdog closes investigation on banks' rate-rigging allegations

Korea's antitrust watchdog said Wednesday that it has closed a probe into years-long allegations that six local commercial banks fixed their certificate of deposit rates, citing a lack of evidence.Six major banks including Shinhan Bank, Kookmin Bank and Woori Bank had allegedly colluded to rig the CD rate to be at a higher level than the market price between 2009 and 2012, while the central bank started to take the expansionary monetary policy in 2012.A CD is a financial instrument sold by banks

July 6, 2016

[Graphic News] Mobile shopping hits record W2.7tr in May　

Mobile shopping in Korea soared 41.7 percent to a record high of 2.697 trillion won ($2.4 billion) in May from a year earlier, according to a government report Monday.“Purchases on mobile devices jumped last month due to convenience, competitive prices and a bigger range of products. And the trend is set to strengthen over time,” said an official from Statistics Korea.Mobile shopping accounted for 52.1 percent of the country’s overall online shopping sales worth 5.178 trillion won last month, up

July 5, 2016

Korea’s potential growth rate could drop to 1.45% in 2050: think tank chief

[THE INVESTOR] Korea’s potential economic growth rate could fall to as low as 1.45 percent by 2050, Korea Economic Research Institute president Kwon Tae-shin warned on July 5. Speaking at a forum held at the National Assembly, Kwon said that Korea’s potential growth rate has plunged since the 1990s, and that a potential growth rate of 1.45 percent is possible by 2050. “One of the structural problems with the Korean economy is falling potential growth rate,” Kwon said. Saying that Korea’s potenti

July 5, 2016

Gov’t hopes to attract more foreign students, institutions

[THE INVESTOR] International schools on Jejudo Island will to be allowed to send a part of their profits abroad from the first half of next year under the government’s service industry growth plans revealed on July 5. Under the plans, up to 40 percent of the profits will be allowed to be transferred abroad if the school’s debt to capital ratio and other conditions are met. In addition, the government will also review allowing student loans to be given to Korean students studying at foreign insti

July 5, 2016

Korea seeks to create 250,000 jobs in services

The South Korean government seeks to boost the services sector through tax breaks in an effort to increase jobs amid high youth unemployment.The Finance Ministry said Tuesday that it seeks to create 250,000 jobs through such fiscal measures aimed at increasing productivity in the services industry. The government aims to uplift the value of its services sector on par with the average of the Organization for Economic Cooperation and Development in five years. This is also in line with efforts to

July 5, 2016

Demand for bank loans expected to shrink in Q3: survey

Demand for fresh loans from major commercial banks in Korea is expected to shrink in the third quarter, a poll showed Tuesday, amid a government move to stem a surge in household debt.The overall index measuring demand for fresh bank loans came to 9 for the July-September period, down from 10 in the previous quarter, according to the Bank of Korea.A reading above zero means bank lending will continue to increase, while a reading below the benchmark means demand will likely shrink. The quarterly

July 5, 2016

Korean firms already outrun by Chinese rivals: KERI

Chinese companies have already outrun Korean rivals in competitiveness and are quickly catching up in the high technology sector, an analysis by a private economic think tank said Tuesday.The Korea Economic Research Institute evaluated the non-financial listed firms of the two countries with 2007 and 2014 as comparison points. Assessment guidelines had eight areas, such as profitability and asset size.According to the analysis for 2014, Chinese counterparts outperformed South Korean companies in

July 5, 2016

Korean shares down in late morning trade

Korean shares remained in negative terrain late Tuesday morning as investors sought to lock in early gains.The benchmark Korea Composite Stock Price Index lost 5.96 points, or 0.30 percent, to hit 1,989.34 as of 11:20 a.m. Institutions and foreign investors were net sellers, offloading a combined net 127 billion won ($110 million).On Monday, the KOSPI advanced 0.03 percent, further recovering from losses sparked by Britain's vote to leave the European Union two weeks ago. Last week, the index ha

July 5, 2016

S. Korea, Britain reaffirm commitment to cooperation on economy, NK issues

Korea and Britain reaffirmed their commitment to closely work together to strengthen their ties and seek policy coordination in diverse areas ranging from the economy to North Korea and human rights issues, the foreign ministry said Tuesday.The agreement was reached at a meeting between Kim Hyoung-zhin, deputy foreign minister, and British Minister of State Hugo Swire in London on Monday (local time), according to the ministry."Both sides reaffirmed their stance that they will push to minimize t

July 5, 2016

Korea's foreign exchange reserves shrink in June

Korea's foreign exchange reserves fell slightly from a month earlier in June due to the reduced value of non-U.S. dollar assets, central bank data showed Tuesday. As of the end of June, the country's foreign exchange reserves came to US$369.9 billion, down $1.01 billion from the previous month, the Bank of Korea said in a statement.Foreign exchange reserves consist of securities and deposits denominated in overseas currencies, as well as International Monetary Fund reserve positions, special dra

July 5, 2016

Finance MInister denies gov’t intervention in exchange rates

[THE INVESTOR] Finance Minister Yoo Il-ho on July 4 denied that the government is directly intervening in the forex market to control exchange rates. “(The government) has done nothing to become directly involved in the market to (bring about) low or high exchange rates,” Yoo, who also doubles up as deputy prime minister for economic affairs, said in response to a query by Rep. Yoo Sung-yop of the minor opposition People’s Party.Finance Minister Yoo IL-hoThe opposition lawmaker had stated that t

July 4, 2016

Mobile shopping hits record 2.7 tln won in May

South Korea's mobile shopping soared 41.7 percent to a record high of 2.697 trillion won ($2.4 billion) in May from a year earlier, a government report showed Monday."Purchases on mobile devices jumped last month due to convenience, competitive prices and a bigger range of products. And the trend is set to strengthen over time," an official from Statistics Korea said, citing a data report the agency compiled.Mobile shopping accounted for 52.1 percent of the country's overall online shopping sale

July 4, 2016

Korea on alert over signs of rising global trade protectionism

Economic policymakers and business circles in Korea are on alert over signs that trade protectionism is rising across the globe.A report released by the World Trade Organization last month showed that in the seven months leading up to mid-May 2016, G20 economies introduced 145 protectionist measures, the highest since 2009. (123rf)Some economists say this phenomenon may not necessarily prompt a grave worry as it remains within the boundaries of the existing mechanisms and relates partly to the s

July 4, 2016

PM vows to avoid tax increase

Prime Minister Hwang Kyo-ahn said Monday the government will make efforts to avoid tax hikes that may burden the people and businesses, amid calls by the opposition parties to raise corporate taxes."Increasing tax will emerge as the burden for the people and should be the last thing the government should consider," Hwang said during his parliamentary interpellation session. He stressed that Seoul has no plans to raise corporate and income tax for the time being."Rather than increasing taxes, we

July 4, 2016

Foreign cruise tourists nearly double in H1

The number of foreign cruise tourists visiting South Korea nearly doubled in the first six months of 2016, with the number expected to reach 1.5 million at the end of the year, the maritime ministry said Monday.Some 724,000 foreigners arrived in the country on cruise ships over the January-June period, up 88 percent from 385,000 tallied a year ago, according to the Ministry of Oceans and Fisheries.For all of 2016, 1.5 million cruise tourists are expected to flock to the country's shores, with 84

July 4, 2016

Seoul home prices hit new high, with more gains in Gangnam

The average home price in Seoul has surpassed 500 million won ($434,103) last month, with analysts expecting more price jumps within this year to reach a new high, a market study by KB Kookmin Bank showed Monday.The average home price in the capital city hit 501.98 million won in June, up 2.94 million won from the previous month, according to the bank which serves as the leading tracker of the local housing market.  The figure is the highest since the bank began compiling related data in Decembe

July 4, 2016

Korea pushing FTAs to enlarge its trade territories

South Korea is quickening negotiations and implementations of its free trade agreements as one way of alleviating the economic confusion from Brexit, finding new markets through the trade deals and making sure it is not falling out of regional pacts, officials said Monday.After signing its first FTA in 2004 with Chile, South Korea now has agreements with 52 countries through 15 agreements. Officials say while last year's efforts were more on bilateral agreements, concentration this year will be

July 4, 2016

[Monitor] The rate of export decline

The rate of Korea’s export decline was the smallest in a year, as it slowed from minus 6.0 percent in May to minus 2.7 percent in June, according to the Trade Ministry Friday. The export amount in June recorded $45.3 billion, while imports marked $33.7 billion.

July 3, 2016