[H2 ECONOMIC POLICY] Korea to lure Chinese universities

[THE INVESTOR] Korea will try to attract Chinese universities to establish branches in Incheon and other areas, the Ministry of Strategy and Finance revealed.The measure was included in the economic policies announced on June 28. In addition, the government will increase the number of Korean language exams held in China each year, and roll out other means to lower the barrier for Chinese students coming to Korean universities. At present, Korean language examinations are held twice a year in Chi

June 28, 2016

[H2 ECONOMIC POLICY] South Korea‘s second-half economic policy road map

[THE INVESTOR] The following are some of the key economic policy measures planned for the second half of the year:General economic stimulus - Spend a total of 20 trillion won (US$16.9 billion), including 10 trillion won, in supplementary budget, to maintain the expansionary fiscal mode- Increase financial benefits to facilitate environment-friendly consumption and investment- Minimize the impact of corporate restructuring by supporting jobless workers and offering aid to provinces where companie

June 28, 2016

[H2 ECONOMIC POLICY] President Park urges parliament to pass extra budget plan

[THE INVESTOR] President Park Geun-hye on June 28 urged the National Assembly to pass the government’s plan for an extra budget without delay, stressing it is aimed at supporting workers who could lose their jobs amid the restructuring of ailing shipping and shipbuilding industries.During a meeting with economy-related ministers, she stressed that given South Korea’s strong economic fundamentals and relatively small bilateral trade with Britain, the impact of Brexit would be “limited.”“To suppor

June 28, 2016

[H2 ECONOMIC POLICY] 3 out of 4 economic experts says Korean economy deteriorated from a year ago

[THE INVESTOR] The majority of experts assess the Korean economy to have slipped since last year, and consider China’s slowdown as the most critical factor, a government survey showed on June 28. According to a survey that asked 338 experts, 75.4 percent said that the country’s economy has become worse this year compared to 2015. Regarding the biggest external risk the Korean economy is facing, 46.4 percent chose China’s slowdown, while 35.5 percent said that slowing global trade posed the bigge

June 28, 2016

[H2 ECONOMIC POLICY] Gov’t to overhaul foreign worker policies by Dec.

[THE INVESTOR] The government will overhaul foreign worker polices by the end of the year to attract highly trained foreign talent, while suppressing the influx of untrained workers, the Ministry of Strategy and Finance said on June 28. As part of the measures, the government plans to introduce a special program exempting visa requirements for highly trained foreign workers. The Ministry of Strategy and FinanceAt present, foreign professional need graduate degrees, or have a bachelor’s degree wi

June 28, 2016

Seoul shares turn higher in late morning trades

Korean shares turned higher late Tuesday morning as investors took relief from stimulus steps by central banks worldwide to contain the fallout from Britain's vote to leave the European Union.The benchmark Korea Composite Stock Price Index rose 1.55 points, or 0.08 percent, to 1,928.40 as of 11:20 a.m., after dropping to an intraday low of 1,907.49.  (Yonhap)Investor sentiment is also boosted by the Korean government's plan to draw up trillion won supplementary budget, to help cushion the impact

June 28, 2016

[H2 ECONOMIC POLICY] S. Korea cuts 2016 economic growth outlook to 2.8%

[INVESTOR] South Korea slashed its 2016 economic growth outlook by 0.3 percentage point to 2.8 percent, joining other private institutions that have already made downward revisions of their own growth estimates.The Finance Minstry’s latest forecast is on par with those made in April by the Bank of Korea, but is slightly higher than the 2.7 percent estimate by the International Monetary Fund.In 2015, the South Korean economy expanded 2.6 percent annually, decelerating from the previous year’s 3.3

June 28, 2016

[H2 ECONOMIC POLICY] Tax breaks and cashback for eco-friendly goods:South Korea

[THE INVESTOR] Tax breaks for replacements of old diesel cars and high-efficiency home appliances will be rolled out in the second half of the year, the Ministry of Strategy and Finance announced on June 28.Under the plans, those replacing diesel vehicles registered before Dec. 31, 2006 will be given a 3.5 percentage point cut in the special consumption tax of 5 percent for automobiles. Hyundai Motor EV Ioniq.The Finance Ministry said that the measure is aimed at weeding out old diesel vehicles

June 28, 2016

[H2 ECONOMIC POLICY] South Korea proposes W10tr extra budget

[THE INVESTOR] The South Korean government said on June 28 that it will draw up a 10 trillion-won (US$8.45 billion) extra budget to cope with a myriad of economic challenges including slumping domestic and overseas demand, and Britain’s recent vote to leave the European Union.Including the proposed extra budget, the Finance Ministry said it would need to inject 20 trillion won into Asia’s fourth-largest economy this year by utilizing tax revenue surpluses and various state-run funds.“We will map

June 28, 2016

[H2 ECONOMIC POLICY] Gov’t to roll out environment-related support measures

[THE INVESTOR] The South Korean government will expand infrastructure for electric vehicles, and roll out measures for encouraging companies to cut greenhouse gases as part of its plans to boost environment-related businesses in the second half of the year. These and other related measures were included in the government’s economy-related plans for the second half revealed on June 28. Under the plans, a company that invests in alternative energy projects that lead to greenhouse gas reduction at

June 28, 2016

Korea's consumer sentiment remains unchanged in June

Korea's consumer sentiment did not budge either way in June after dipping to a three-month low in the month before on growing uncertainties in the global economy, central bank data showed Tuesday.The composite consumer sentiment index came to 99 for June, unchanged from the previous month, according to data from the Bank of Korea. (Yonhap)A reading above 100 means optimists outnumber pessimists, while a reading below the benchmark means the opposite. Consumer sentiments have remained sluggish si

June 28, 2016

Korea needs up to 26.6 trillion won supplementary budget: think-tank

[THE INVESTOR] Korea will need as much as 26.6 trillion won (US$22.5 billion) in supplementary budget to weather negative elements from external and internal economic conditions, a think-tank said on June 26. In a report published on June 26, Hyundai Research Institute said that Korea needs between 11.5 trillion won and 26.6 trillion won in supplementary budget in order to offset negative factors from home and abroad. According to the report, Korea has about 113 trillion won remaining in this ye

June 28, 2016

Brexit to cut Korea's economic growth: foreign IBs

Foreign investment banks expect Korea's economic growth will be cut by up to 0.3 percentage point this year due to Britain's decision to leave the European Union, data showed Monday. Foreign IBs such as the Bank of America Merrill Lynch and Citigroup viewed uncertainties involving Britain's decision last week to leave the EU will have a bigger impact on Asia's fourth-biggest economy than expected declines in exports to Britain, according to the data from the state-sponsored Korea Center for Inte

June 27, 2016

Power prices could surge by 97% if energy supply market privatized

[THE INVESTOR] Power prices could rise by 97 percent if the government opens the nation’s state-controlled energy supply market to the private sector, according to a study released on June 27. If the retail power market is privatized, electricity prices may drop in the initial phase but will rise continually, according to the report on major global economies’ policies related to the electricity supply. Under the plan announced on June 14 by the Ministry of Trade, Industry and Energy, the country

June 27, 2016

Inconsistent fiscal policy draws criticism

The government is expected to unveil a plan to set aside about 10 trillion won ($8.4 billion) in supplementary budget Tuesday when it announces economic policy directions for the second half of this year.In a meeting with lawmakers from the ruling Saenuri Party on Friday, Finance Minister Yoo Il-ho said he would actively consider drawing up an extra budget if it was to pass parliament within the next month. Finance Minister, Yoo Il-ho (Yonhap)Two days earlier, Yoo, who doubles as deputy prime mi

June 27, 2016

BOK chief says to ensure ample liquidity to counter Brexit-triggered chaos

The head of Korea's central bank on Monday said the bank is prepared to ensure ample market liquidity to minimize market uncertainty stemming from Britain's unprecedented vote to leave the European Union.Bank of Korea Gov. Lee Ju-yeol also insisted there is no need to react too sensitively to what he called "short-term" changes in the market. (Yonhap)"In the case of our country, which is relatively more open, not only its financial market but also its real economy may be exposed to a negative im

June 27, 2016

South Korea‘s inconsistent fiscal policy draws criticism

 [THE INVESTOR] The government is expected to unveil a plan to set aside about 10 trillion won ($8.4 billion) in supplementary budget Tuesday when it announces economic policy directions for the second half of this year.In a meeting with lawmakers from the ruling Saenuri Party on Friday, Finance Minister Yoo Il-ho said he would actively consider drawing up an extra budget if it was to pass parliament within the next month.Two days earlier, Yoo, who doubles as deputy prime minister for economic a

June 27, 2016

Brexit's impact on Korea's ICT industry to be marginal: ministry

Korea's ICT industry is expected to suffer a limited impact from Britain's departure from the European Union in the short term, given its relatively smaller portion against its overall shipment, a senior government official said Monday.Choi Jae-you, vice minister of science, ICT and future planning, pointed out that Britain accounts for merely 0.7 percent of South Korea's ICT-related exports. ICT is an acronym for information and communication technology. (Yonhap)The volume of South Korea's dire

June 27, 2016

BOK chief to hold emergency meeting on Brexit

The head of Korea's central bank will preside over an emergency meeting later in the day with the bank's senior staff to discuss ways of dealing with any fallout from Britain's unexpected decision to leave the European Union, it said Monday.Bank of Korea Gov. Lee Ju-yeol returned home earlier in the day, cutting short his trip to Basel, Switzerland, for the emergency meeting over the Brexit crisis. (Yonhap)The BOK's meeting, starting at 2:30 p.m., follows an earlier meeting hosted by the Financi

June 27, 2016