Producer prices hit 6-year low in March

Korea’s producer prices fell to the lowest level in six years due mainly to cuts in energy prices, central bank data showed Wednesday.The producer price index, which shows inflation pressures before they reach consumers, came in at 98.42 last month, the lowest March reading since 2010, according to preliminary data from the Bank of Korea. From a month earlier, it represented a decline of 0.1 percent. From the same month last year, it was down 3.3 percent. The central bank said the decline was la

April 20, 2016

BOK slashes growth outlook, freezes key rate

The Bank of Korea on Tuesday kept the key interest rate unchanged at an all-time low for a 10th consecutive month, while presenting a slower growth of 2.8 percent for the domestic economy this year. BOK Gov. Lee Ju-yeol and six other members of the monetary policy board decided to freeze the seven-day repurchase rate at 1.5 percent, unchanged since June last year, until next review. BOK Governor Lee Ju-yeol (Yonhap)The central bank also slashed its forecast for gross domestic product growth in 2

April 19, 2016

BOK trims 2016 growth outlook to 2.8%

South Korea's central bank cut its growth outlook for the economy on Tuesday, mainly blaming a slowdown in the global economy and trade.In its quarterly revision to the growth outlook, the Bank of Korea said Asia's fourth-largest economy is expected to expand 2.8 percent this year, compared with a 3 percent growth forecast three months earlier.The BOK joined a series of organizations that cut their own growth estimates for the local economy, including the International Monetary Fund, which has s

April 19, 2016

FSC refutes reports on additional industry restructuring

The Korean government said Tuesday that it has reviewed whether to add another industrial sector for restructuring as part of efforts to drive out heavily indebted companies in ailing sectors that might drag down the Korean economy.The Financial Services Commission said, however, it has yet to find any specific industry in need of further restructuring. FSC chairman Yim Jong-yong (Yonhap)“As of now, there is no industry that needs further discussion for restructuring, besides the five sectors,”

April 19, 2016

Gov't set to pick new industries for restructuring

South Korea may choose additional industries for restructuring next week as part of efforts to weed out troubled companies that could put a damper on Asia's fourth-largest economy down the road, government and industry sources said Tuesday.In line with its sweeping restructuring drive to keep financially troubled companies from becoming a drag on the economy, the government has already singled out five industries -- shipbuilding, shipping, construction, steelmaking and petrochemicals.In particul

April 19, 2016

Oil recoups heavy losses from Doha talks collapse

The oil market late Monday recouped heavy losses spurred by the failure of major crude producers to agree curbs on output that could have firmed up the market.Analysts said a strike that knocked out more than 60 percent of Kuwait's production helped support the market.Crude prices fell nearly seven percent early in the day after producers came away from talks in the Qatari capital of Doha on Sunday empty-handed.But by the end of trade, US benchmark West Texas Intermediate for delivery in May had

April 19, 2016

Korea faces global economic slowdown, President Park says

President Park Geun-hye warned Monday that a global slowdown and further provocations from North Korea could undermine signs of economic improvement.Speaking to her aides for the first time since the parliamentary election last week, Park said that South Korea is still facing economic difficulties even though there has been signals that the economy was improving.In the wake of her ruling party's defeat in the election, Park said that she would work closely with lawmakers to push through structur

April 18, 2016

Household debt grows at fast pace in March

Household loans extended by local banks rose at a fast clip in March due to a large increase in mortgage loans, central bank data showed Monday.Outstanding household loans extended by lenders here came to 649 trillion won ($564.2 billion) as of end-March, up 4.9 trillion won from the previous month, according to the data from the Bank of Korea.The on-month gain marked a significant acceleration from the 2.9 trillion won increase the previous month or a 2.1 trillion won rise in January."Home-back

April 18, 2016

Growth target above 3% beyond reach

Finance Minister Yoo Il-ho said last week it would be possible to reach the government-set growth target of 3.1 percent this year.“The Korean economy will be able to post 3 percent level growth this year,” said Yoo, trumpeting the government’s efforts to boost investment, exports and structural reforms.But his forecast seems alienated from predictions by most economic institutes at home and abroad, which have revised down their growth outlook for Asia’s fourth-largest economy struggling with dec

April 18, 2016

Korea's dependence on coal-fired power output still high

Korea spent a record amount of money on coal-fired power generation last year, a nearly three-fold increase over a decade, indicating that the country's dependence on the fossil fuel still runs high, industry data showed on Monday.According to the data compiled by the Korea Power Exchange, the country paid a total of 41.6 trillion won ($36.2 billion) to private power generators last year, down 6.2 percent from the previous year's 44.4 trillion won, on the back of falling oil prices and the incre

April 18, 2016

Korea's exports to China tumble 15.7 percent in Q1

Korea suffered a 15.7 percent fall in exports to China in the first quarter this year, data showed Sunday, deepening its overall trade woes.It marks the biggest drop in seven years in Korea's outbound shipments to China, its single biggest market. China accounts for about 25 percent of Korea's total exports.Exports to China stood at $28.5 billion in the year's first three months, down 15.7 percent from a year earlier, according to the Korea International Trade Association (KITA).By item, exports

April 17, 2016

Top 10 groups sustain sharper sales falls than corporate average

Sales by Korea's 10 largest conglomerates fell at a sharper rate than the corporate average last year, the latest industry figures showed Sunday.The Korea Exchange and online financial information provider FnGuide said sales at 68 of the top 10 groups' listed affiliates, which closed their accounting books in December, stood at 1,010.7 trillion won ($880.4 billion) in terms of consolidated financial statements last year, marking an on-year reduction of 3.31 percent. Consumers at Lotte Department

April 17, 2016

Think tanks slash growth outlook for Korea

Two South Korean private think tanks have revised down their growth outlooks for Korea, citing a continued slump in exports and weak domestic demand.LG Economic Research Institute said in a report Thursday that Asia’s fourth-largest economy will grow 2.4 percent this year, down from the previous projection of 2.5 percent. It is the most skeptical view among economic institutes in Korea in terms of growth projections.  (123RF)The think tank attributed the grimmer outlook to a still sluggish globa

April 15, 2016

Korea reports 3rd-largest trade surplus in March

South Korea attained its third-largest trade surplus in March and extended the surplus streak to 50 months, as imports again fell at a faster pace than exports, customs data showed Friday.The country's trade surplus came to $9.86 billion last month, up from a surplus of $7.07 in the previous month, according to the data from the Korea Customs Service.The March figure marked the 50th consecutive month of a trade surplus, with an 18.6-percent on-year jump from $8.34 billion a year earlier.It is al

April 15, 2016

Korea's jobless rate drops to 4.3% in March

South Korea's jobless rate dropped to 4.3 percent in March from the previous month's 4.9 percent, with the number of newly employed people rebounding to over 300,000 last month, a government report showed Friday.The unemployment rate for young adults also edged down to 11.8 percent last month from an all-time high of 12.5 percent in February, but the figure is the highest youth unemployment rate on record for March, the report compiled by Statistics Korea said, raising concern that the sluggish

April 15, 2016

Political risks increasing to economic reform

At a Cabinet meeting a day before Wednesday’s general election, President Park Geun-hye urged voters to cast their ballots to form a “new National Assembly devoted to securing people’s livelihoods and revitalizing the economy.”Park deplored what she described as losses caused by the blocking or delay of the passage of reform bills in the outgoing parliament.The answer from the electorate, who deprived her conservative ruling Saenuri Party of its majority in the 300-member legislature, apparently

April 14, 2016

Korea's home transactions plunge in March

Korea's home sales plunged 30.4 percent last month from a year earlier amid some signs of a slowdown in the local property market, government data showed Thursday.The number of home transactions reached 77,853 in March compared with a record 111,869 tallied a year ago, according to data compiled by the Ministry of Land, Infrastructure and Transport. Apartment complex in Seoul (Yonhap)It also marked a 9.9 percent drop from a five-year average of 86,000, while it jumped 31.4 percent from the previ

April 14, 2016

N. Korea-China trade volume up 12.7% on-year in Q1

Trade volume between North Korea and China posted double-digit growth in the first quarter of 2016 from a year earlier despite the United Nations' punitive economic sanctions imposed on the reclusive country, official data showed Wednesday.(Yonhap)The size of bilateral trade stood at 7.79 billion yuan ($1.2 billion) in the January-March period, up 12.7 percent from the same period last year, Huang Songping, spokesman of China's General Administration of Customs, said during a press briefing on t

April 13, 2016

Korea's ICT exports drop for 7th consecutive month in March

South Korea's exports of information communication technology (ICT) products fell for the seventh consecutive month in March as weak global demand and a Chinese slowdown weighed heavily on the country's key industries, government data showed Wednesday.Outbound shipments of ICT products reached $13.97 billion last month, down 5 percent from $14.7 billion tallied a year before, according to the data compiled by the Ministry of Trade, Industry and Energy. (Yonhap)ICT exports extended their losing s

April 13, 2016

Exports of industrial parts, materials sink in Q1

South Korea's exports of industrial parts and materials fell for the fourth straight quarter in the first quarter of this year amid weak global demand and low oil prices, the trade ministry said Wednesday.Outbound shipments of industrial parts and materials fell 10.7 percent on-year to $59.4 billion in the January-March period, accounting for 51.2 percent of the country's overall exports, according to the Ministry of Trade, Industry and Energy.The first-quarter figure marked the fourth consecuti

April 13, 2016