Korea to take market stabilization measures on British referendum results

The Korean government said Friday that it will take market stabilizing measures if the foreign exchange market becomes wildly volatile due to the results of the landmark British vote."As South Korea has low exposure to Britain in terms of trade, a final decision (to quit the European Union) will have a limited impact on the South Korean economy," Vice Finance Minister Choi Sang-mok said at an emergency meeting with officials of the financial authorities and the central bank.Vice Finance Minister

June 24, 2016

Korea’s dependence on China poses risks and opportunities

[THE INVESTOR] Korea’s high economic dependence on China is a double-edged sword, a report said on June 24.In a report titled “China’s choice,” McKinsey Global Institute ranked Korea fourth in the world in terms of economic dependence on China. According to the report, Korea is fourth in the world in terms of the proportion of gross domestic product raised from exports to China. Oman showed the highest dependence followed by Angola and Malaysia. China national flag.Korea’s economy is highly trad

June 24, 2016

Government to inject W10.5tr into renewable energy

[THE INVESTOR] The government will invest 10.5 trillion won (US$9.1 billion) into renewable energy in collaboration with the private sector, the Ministry of Trade, Industry and Energy said on June 23. In a press release before a parliamentary briefing on the same day, the ministry said that it will focus on issues concerning electric vehicles, solar power, energy storage systems and other energy-related fields. The ministry said that it will roll out measures to improve conditions for electric v

June 23, 2016

[Monitor] Korea’s exports to China keep falling

Korea’s exports to China continued to shrink from a year ago in May, recording 11 months of decrease, industry data showed Thursday.

June 23, 2016

Finance minister to visit China for AIIB meeting

Korea's top economic policymaker will visit China later this week for the first annual general meeting of the Asian Infrastructure Investment Bank and the opening ceremony of the won-yuan direct market there, the ministry here said Thursday.Finance Minister Yoo Il-ho will depart Friday to attend the first AIIB General Assembly in Beijing slated for Saturday, according to the Ministry of Strategy and Finance.Yoo will deliver a keynote speech at the meeting about the role and future of the China-l

June 23, 2016

Gov't to strive to reduce impact of corporate restructuring: finance minister

Korea's finance minister said Thursday that the government will make all-out efforts to minimize the possible fallout in the local economy from tough corporate restructuring in the shipbuilding sector."The government will map out plans to support smooth corporate restructuring and business reorganization, and to improve the competitiveness of key industries," Finance Minister Yoo Il-ho said while visiting a shipyard in Ulsan, an industrial city on the southeastern coast."We will mobilize all mea

June 23, 2016

S. Korea's seaport cargo grows 1.4 % on-year in May

Cargo processed at Korean seaports rose from a year earlier in May, the government said Thursday, possibly reflecting improvements in the country's exports.Cargo handled at the country's seaports came to 124.46 million tons last month, marking a 1.4-percent on-year rise and a turnaround from a 1.2-percent decline in the previous month, according to the Ministry of Oceans and Fisheries. The increase was attributed to a rise in non-container cargo, which gained 1.6 percent on-year.Container cargo,

June 23, 2016

[ANALYST REPORT] Korea's slower growth has limited impact on sovereign credit profile: Moody's

Moody‘s Investors Service says that against a backdrop of weak external demand, Korea’s (Aa2 stable) export-dependent growth model has come under pressure. The consequently weakening operating environment underpins the negative outlook on the banking system. However, Moody‘s expects Korea’s fiscal, institutional and external metrics to remain strong when compared to rating peers, which supports the stable outlook on the sovereign rating.In a just-released report titled “Government of Korea: FAQ

June 23, 2016

Korea’s exports to China shrink for 11 consecutive months

[THE INVESTOR] Korea’s monthly exports to China shrank for the 11th consecutive month in May, matching the record set in 2008 and 2009, industry data showed on June 23. According to the Korea International Trade Association, Korea’s exports to China came in at US$9.93 billion in May, falling 9.1 percent from a year ago. Korea’s exports to China have shown year-on-year drop since July 2015. However, the rate of decrease has slowed in recent months, the data showed. From December to April, Korea’s

June 23, 2016

KB Financial eyes universal banking

KB Financial Group Inc., a major Korean banking group, said Thursday it will push for universal banking as part of efforts to boost profitability in an era of low growth and low interest rates.Universal banking combines commercial banking with investment services, thus allowing banks to provide a much wider variety of financial services."Modeled after Bank of America Merrill Lynch, KB Financial has decided to strengthen its banking and securities businesses," the financial group said.After acqui

June 23, 2016

Finance minister vows "sufficient" fiscal expansion

Korea's finance minister said Wednesday that the government will do "sufficient" fiscal reinforcement in the second half to prop up Asia's fourth-largest economy, reiterating his earlier hints that the government is considering drawing up an extra budget."We are in grave danger as the economic conditions will likely be worse in the second half. The government has to move more aggressively to deal with it," Finance Minister Yoo Il-ho said in an economy-related ministers' meeting in Seoul."The gov

June 22, 2016

Blueberry prices drop in Korea

Blueberry prices are going down in Korea due to increased supply on constant demand, according to reports made by the agriculture-heavy South Jeolla Province on Wednesday. The fruit was once a high-yield crop due to its nutritional benefits to the eyes.  (123RF)However, with more farmers joining the bandwagon and free trade agreements propelling blueberry imports, the increasing supply against steady demand is pushing down the produce price overall. Park Gwang-sun, a blueberry farmer by 10 years

June 22, 2016

Korea’s top firms blocking economic recovery: study

[THE INVESTOR] Korea’s economic recovery is being delayed as local companies are fast losing vitality, a study conducted by LG Economic Research Institute showed. Korea’s equity market that is in the doldrums reflects the downtick in business activities here, Lee Han-deuk, senior researcher at the think tank said in his report published on June 20. The study notes that the compound annual growth rate of Korean firms’ market capitalization slowed to 3.2 percent between 2011 and 2015, compared to

June 22, 2016

Exports to increase in H2: report

[THE INVESTOR] Korea’s exports will show small improvement in the second half of the year, the Institute for International Trade projected in a report released on June 22. In the report, IIT projected that Korea’s exports will come in at US$260.5 billion in the second half of the year, up 0.9 percent from the same period last year. The IIT cited developed nations’ economic recovery, rising oil prices and improving demand from emerging economies for the projection. The IIT forecast that crude oil

June 22, 2016

Korea’s speed of innovation 70% that of China: survey

[THE INVESTOR] Korean manufacturers consider the country far behind China in terms of speed of innovation, a survey by the Korea Chamber of Commerce and Industry showed on Wednesday. In the survey on 300 manufacturing firms, local companies rated Korea’s speed of innovation as being 71 percent that of China. The respondents were asked to estimate the country’s speed of innovation in relation to China, whose speed of innovation was set at 100 kilometers per hour. The average for Korea’s industrie

June 22, 2016

Korea’s economic growth to slow down in 2016

[The INVESTOR] Korea’s economy is expected to grow at a similar rate this year on the recovery of exports in the second half. Facility investment, however, will record minus growth, according to a leading economic think tank. Korea Institute for Industrial Economics and Trade released its economic and industrial outlook for 2016 on June 22. It predicted the gross domestic product in the first half of the year at 2.9 percent and the second half at 2.3 percent, averaging the figure of 2.6 percent

June 22, 2016

Seoul exceeds spending plan to trigger growth

[THE INVESTOR] The South Korean government exceeded its fiscal spending plans during the first five months of the year to help stimulate the lackluster economy, the Finance Ministry said June 22. The government had earlier announced that it would spend approximately 60 percent of this year’s 280 trillion won (US$242 billion) budget set aside for the central government in the first half. The ministry said it has used 135.1 trillion won of the budget in the first five months of the year, surpassin

June 22, 2016

Hyundai Samho completes Panama Canal contract

[THE INVESTOR] Hyundai Samho Heavy Industries announced on June 22 that its US$210 million Panama Canal contract has been completed. In 2010, Hyundai Heavy won the contract to build and install 158 small floodgates and 158 sets of hydraulic systems for the Panama Canal expansion project. An aireal view of the Panama Canal. Panama Canal AuthorityThe US$5.25 billion project will increase Panamax by a factor of about 1.5. The expansion project is set for completion on June 26. By Choi He-suk (chees

June 22, 2016

BOK chief to attend BIS general assembly

[THE INVESTOR] The head of South Korea‘s central bank will visit Basel, Switzerland this week for the annual general assembly of the Bank for International Settlements, the Bank of Korea said on June 22. BOK Gov. Lee Ju-yeol will depart on June 23 to attend the 86th BIS General Assembly to be held over the weekend.BOK governor Lee Ju-yeolWhile in Basel, the South Korean top central banker will also attend the BIS Global Economy Meeting and the Meeting of the Asian Consultative Council where he w

June 22, 2016