Brisk sales of passenger cars have led South Korea's domestic consumption in the February-May period on the back of the government's tax-cut programs, government data showed Sunday, raising concerns over a possible drop in demand following the end of such benefits.The South Korean government started the excise tax benefits from September last year to bolster retail sales, along with nationwide discount events to offset faltering exports, which have posted negative growth since January last year.

July 3, 2016

 South Korea joined the so-called Paris Club as its 21st member country on Friday, the finance ministry here said, a step that acknowledges the country's transition into a creditor country.The membership was endorsed at the club's meeting to celebrate its 60th anniversary in Paris, according to the Ministry of Strategy and Finance.South Korea's Vice Finance Minister Choi Sang-mok attended the ceremony, it added.The Paris Club is an association of creditor countries with the major aim of finding

July 1, 2016

[THE INVESTOR] The UN-operated Green Climate Fund has decided to inject US$ 256.6 million in climate change projects in nine developing countries, the Ministry of Strategy and Finance said July 1. The decision was made during the 13th board meeting of the GCF, held at its headquarters in Songdo, Incheon, from June 28 to 30. The newly approved projects include solar energy development program in Chile, projects to make coastal communities in Vietnam more resilient to climate change impacts and su

July 1, 2016

A worker at the Korea Exchange looks at a screen showing the benchmark Korea Composite Stock Price Index that rebounded close to a pre-Brexit level of 1,990 on Friday in Seoul.(Yonhap)

July 1, 2016

[THE INVESTOR] Korea’s benchmark interest rate could be slashed to below 1 percent this year due to Britain’s decision to leave the European Union, Nomura Financial Investment said on July 1. Kwon Young-sun, an economist at the firm said that the Bank of Korea is likely to cut the key rate by 25 basis points twice within 2016 to 0.75 percent from current 1.25 percent. On June 9, the BOK took its key seven-day repo rate to 1.25 percent from a previous level of 1.5 percent, the first cut in 12 mon

July 1, 2016

[THE INVESTOR] Korea’s consumer prices increased by less than 1 percent for the second month in a row in June, according to government data on July 1.The country’s consumer price index rose 0.8 percent last month from a year earlier, according to Statistics Korea.The figure also climbed 0.8 percent on-year in May, after rising 1 percent or more for the previous three months.From a month earlier, the June figure stayed flat.Core inflation, which excludes volatile oil and food prices, increased 2

July 1, 2016

The decision-making board of South Korea's central bank gave its final approval Friday to the establishment of a 10-trillion-won ($8.7 billion) fund to help finance the government-led restructuring in the troubled shipping and shipbuilding industries.The decision came at a special meeting of the monetary policy board, the Bank of Korea said.The money will be used to extend fresh loans to the state-run Industrial Bank of Korea, which in turn will provide necessary funds to local companies undergo

July 1, 2016

[THE INVESTOR] South Korea’s exports may be on the recovery path, with the rate of year-on-year drop decreasing to a 12-month low. According to the Ministry of Trade, Industry and Energy, the country’s June exports showed an on-year drop of 2.7 percent -- the smallest decrease recorded since June 2015 -- to come in at US$ 45.3 billion. Since January 2015, Korea’s monthly exports have been declining, with the rate of decrease rising to 19.1 percent in January this year. The figure recorded in the

July 1, 2016

South Korea's exports shrank for the 18th month in a row in June, falling 2.7 percent from a year ago to $45.3 billion, the trade ministry said Friday.But the rate of export decline was the smallest in a year, according to the Ministry of Trade, Industry and Energy. The rate of decline slowed from a 6-percent drop in the previous month and posted the smallest on-year fall since June last year when it fell 2.7 percent.Imports continued to shrink at a faster clip, falling 8 percent on-year to $33.

July 1, 2016

South Korean shares opened higher Friday, extending a rally into a fifth day on eased investors' anxiety about Britain's vote last week to exit the European Union.  The benchmark Korea Composite Stock Price Index rose 13.86 points, or 0.70 percent, to 1,984.21 in the first 15 minutes of trading. After shedding 3.09 percent on Friday when Britain's EU exit decision was officially announced, the main index rebounded this week to recover the loss.   Investors appear to have been relieved by concert

July 1, 2016

South Korea's consumer prices grew by less than 1 percent for the second month in a row in June, government data showed Friday, rekindling concerns over deflation amid a flaccid economic recovery.The country's consumer price index rose 0.8 percent last month from a year earlier, according to the data compiled by Statistics Korea.The figure also climbed 0.8 percent on-year in May, after rising 1 percent or more for the previous three months.From a month earlier, the June figure stayed flat.Core i

July 1, 2016

The free trade agreement between the United States and South Korea resulted in an increase of $4.8 billion-$5.3 billion in total American exports, the second-largest among a total of 13 free trade deals the U.S. has concluded, the U.S. trade agency said in a report Wednesday.The International Trade Commission report shows that the Korea-U.S. pact, often dubbed "KORUS FTA," is highly effective in increasing U.S. exports, contrary to claims by Republican presidential candidate Donald Trump that th

July 1, 2016

[THE INVESTOR] Britain’s decision to quit the European Union could have a lasting impact on global markets in the long term, Korea’s top financial regulator said on July 1. Yim Jong-yong, chairman of Financial Services Commission said the Korean market is moving toward stability after Brexit turbulence but “uncertainties still remain high as Britain’s exit from the EU is the first of its kind.”FSC chairman Yim Jong-yongAlmost US$4 trillion has been wiped out from global equity values since June

July 1, 2016

South Korea's current account surplus greatly widened from a month earlier in May as its surplus in the primary income account rose, while the deficit in the service narrowed, the central bank said Friday.The country's current account surplus came to $10.36 billion last month, compared with a $3.37 billion surplus in the previous month, according to preliminary data from the Bank of Korea.From a year earlier, the May figure marks a $2.04 billion increase, and is the highest since a $10.85 billio

July 1, 2016

The number of single-income households in Korea increased to 5 million last year, taking a 27.2 percent share of the total, according to data Thursday.Statistics Korea said the data also showed nearly half of all married couples were double-income families. The proportion of double-income families stood at 43.9 percent, which slightly increased from the previous year. What is notable is the increase of double-income couples living separately. Officials attributed the increase to massive relocati

June 30, 2016

South Korea’s industrial output swung back to growth in May on the back of increased production in chips and petroleum products, a government report showed Thursday. According to Statistics Korea, total output increased by 1.7 percent from April, reaching an all-time high. It jumped 4.8 percent from May 2015.

June 30, 2016

Korea's trade promotion agency said Thursday that it will help female entrepreneurs make inroads into foreign markets.The Korea Trade-Investment Promotion Agency said the project will be launched along with the Korean Women Entrepreneurs Association, which speaks for companies led by female CEOs.There are about 52,000 South Korean firms that are headed by female CEOs, though less than five percent of them export their goods to foreign countries. (Yonhap) 

June 30, 2016

President Park Geun-hye and SK Group chairman Chey Tae-won arrive in an eco-friendly energy town in Hongcheon, Gangwon Province, to look at solar power facilities on Thursday.(Yonhap)

June 30, 2016

Many outdoor gear and apparel brands are closing down their business here due to sliding domestic sales in the saturated outdoor market. Fashion Group Hyungji recently decided to withdraw its outdoor apparel brand NorthCape after five years in business. According to industry insiders, Hyungji has already notified its 70 franchise owners across the country.  Actress Ha Ji-won and actor Ji Chang-wook model for NorthcapeIn 2011, Hyungji clinched a deal to exclusively sell NorthCape -- an English ou

June 30, 2016