Concerns rise over volatile exchange rate

The won-dollar exchange rate has shown sharp fluctuations in recent months, raising concerns over the possible negative impact of such volatility on the country’s economy, which is struggling with deteriorating conditions both at home and abroad.Last week saw it rise by 18.8 won in the first three trading days to reach 1,219.3 won per dollar -- the highest level in five years and eight months -- before falling by 21.9 won over the following two days to close at 1,197.4 won on Friday. The foreign

Feb. 10, 2016

Shares of builders are bullish riding Iran hope

Construction firms were the top winners on the main stock bourse in early trading this year, data showed Wednesday, as investors cheered growing opportunities in the Iranian market.The construction segment of the benchmark Korea Composite Stock Price Index advanced 15.47 percent this year through Feb. 5, the bourse operator Korea Exchange said. Over the cited period, the KOSPI plunged 2.22 percent. Industry watchers said builders gained ground throughout January and early February as the interna

Feb. 10, 2016

[Photo News] Woori Bank enters Iran

FORAY INTO IRAN -- Woori Bank CEO and president Lee Kwang-goo (third from the left) hosts a ceremony to announce the opening of the bank’s trade and investment center in Iran with guests including Strategy and Finance Vice Minister Choi Sang-mok (fourth from the left), at the firm’s headquarters in Jung-gu, Seoul, on Jan. 25. (Yonhap)

Feb. 10, 2016

Choi to take up World Bank executive directorship

A Finance Ministry director will fill the World Bank executive director’s office, vacated by Eun Sun-soo, the ministry said Friday. Eun quit last month to run Korea’s sovereign fund Korea Investment Corp.“World Bank on Feb. 3 appointed Choi Hee-nam as one of its executive directors,” the ministry said in a press statement. 　Choi was previously the head of the Finance Ministry’s international finance bureau. He will serve out the remaining term of Eun, until Oct. 31.  Choi Hee-nam (Yonhap News)Wo

Feb. 5, 2016

Tokyo stocks open sharply lower on stronger yen

Tokyo stocks opened sharply lower on Friday as a stronger yen hit exporters, despite modest gains on financial markets in Europe and on Wall Street.European and US shares mostly firmed Thursday despite another drop in oil prices ahead of an eagerly awaited US jobs report for January later on Friday.US stocks advanced despite veering into negative territory a couple of times in a choppy session, as oil prices closed lower and US data showed a drop in fourth-quarter productivity and a rise in week

Feb. 5, 2016

Government pushes for business restructuring

The government will step up efforts to restructure the manufacturing industry and reinvigorate the sagging corporate sector, officials said Thursday.Industry Ministry officials said the government will seek industry-wide reorganization after the National Assembly passes a reform bill aimed at helping firms to sell or purchase businesses. “The ministry will move fast to support companies to fasten their business restructuring with the legislation of relevant law,” Industry Minister Joo Hyung-hwan

Feb. 4, 2016

Trade minister enlists support from conglomerates

Korea’s trade minister urged the chiefs of major business groups on Thursday to step up investment to help revive exports and rejuvenate the sluggish economy. “With your efforts, our economy will be able to get back on the right track earlier than expected. We want you to invest to create world-leading industries and develop innovative technologies,” said Trade Minister Joo Hyung-hwan at a breakfast meeting with the heads of the nation’s top 30 conglomerates. Trade Minister Joo Hyung-hwan (secon

Feb. 4, 2016

Seoul shows mixed response to closer economic ties between China, Japan

Policymakers and economists here have shown mixed responses to a recent report that China and Japan are working to form a new framework to bring together government and central bank officials to discuss economic policy coordination.The move reported by a leading Japanese business daily last week apparently reminded them that South Korea’s two giant neighbors are ready to pursue practical economic interests separately from their conflicts over historical and territorial issues. Beijing and Tokyo

Feb. 3, 2016

Seoul to roll out W21tr in Q1 stimulus

Korea will pump an additional 21 trillion won ($17.4 billion) of fiscal stimulus into the economy until March to combat sagging exports and revitalize growth, the government said Wednesday.  The Ministry of Strategy and Finance said that public spending in the January-March period would rise by 6 trillion won to 144 trillion won, with 2 trillion won of the amount to come from the central government. The government’s total budget for 2016 stays unchanged at 386.4 trillion won. Containers are seen

Feb. 3, 2016

Korea rolls out fresh stimulus

South Korea plans to jack up its fiscal spending by an additional 21 trillion won ($17.4 billion) in the first quarter in an effort to pump-prime the economy struggling with faltering exports, the finance ministry said Wednesday.It will also extend a consumption tax cut program on passenger cars, which was set to finish at the end of December, to June to bolster domestic demand.Asia's fourth-largest economy is grappling with plummeting exports in the face of a crippling downturn in oil prices an

Feb. 3, 2016

Ministers call for more corporate investment, hiring

The government said Tuesday that it would fully support corporate investment and hiring plans in order to keep the nation’s economic growth momentum for this year.　“The government will make every possible effort to support companies’ active hiring and investment, such as eliminating the regulatory factors that hinder job creation,” Deputy Prime Minister and Finance Minister Yoo Il-ho said.　The chief economic policymaker revealed the plan during a rare meeting between a group of government minist

Feb. 2, 2016

Exports plunge on weak demand, oil prices

South Korea’s exports plummeted 18.5 percent in January from a year ago, recording the largest year-on-year fall since August 2009 when the country was reeling from the global financial crisis. (Yonhap)Exports from Korea had been on a downward path for 13 months straight, along with a continuous drop in oil prices and slowing demand from emerging countries, sparking red alert in Asia’s fourth-largest economy, which heavily relies on exports for growth.Overall outbound shipments reached $36.7 bil

Feb. 1, 2016

[Photo News] Lunar New Year coming

A traditional market in Busan is crowded with shoppers Sunday ahead of the Lunar New Year holiday.    (Yonhap)

Jan. 31, 2016

Incheon FEZ seeks momentum this year

The Incheon Free Economic Zone pledged to enhance its competitiveness by strengthening its foothold as an international business-friendly zone for service, tourism and bio industry, aiming to attract $930 million worth foreign direct investment this year. Foreign investment registered for the IFEZ, South Korea’s first free economic zone, stood at $1.206 billion in 2015, accounting for 9 percent of the country’s outstanding FDI, according to the IFEZ Authority. The IFEZ set a goal to attract a to

Jan. 31, 2016

National debt to hit 600 trillion won

South Korea’s national debt is expected to exceed 600 trillion won ($496 billion) for the first time ever this week, drawing concerns over the nation’s fiscal health amid a slowing economy and rapid population aging, the National Assembly said Sunday.According to the national debt clock released by National Assembly Budget Office, the national debt could reach 644.9 trillion won by the end of the year, a 49.8 trillion won increase from the 595.1 trillion won estimated in late 2015. The total cou

Jan. 31, 2016

S. Korea’s industrial output rose in December

South Korea’s industrial output rose for the first time in three months in December, bolstered by solid growth in the chemical and refinery sectors, a government report showed Friday.Statistics Korea said production in mining, manufacturing, gas and electricity industries gained 1.3 percent last month from a month earlier. The increase marks a rebound after two straight months of decline. Tanker trucks are lined up at a parking lot near Seoul. (Yonhap)Compared with a year earlier, however, indus

Jan. 29, 2016

S. Korean manufacturing sentiment sinks to 7-month low

South Korean manufacturers’ business sentiment sank to its lowest level in seven months in February, a poll showed Friday.The business survey index for manufacturing companies came to 66 for February, down from 68 for January and the lowest since June, according to the Bank of Korea. An employee works on a car part at a factory in Korea. (Yonhap)A reading below 100 means pessimists outnumber optimists. The monthly survey covers about 2,800 firms. The BSI for nonmanufacturing companies fell 1 poi

Jan. 29, 2016

Government toughens safety rules on budget carriers after mishaps

South Korea’s government said Thursday that it had set tougher safety guidelines for budget airlines after a series of recent mishaps raised alarm bells about the rapidly growing transportation sector.The measures, which include stiff penalties for noncompliance, are designed to fundamentally overhaul the way low cost carriers run their operations, the Ministry of Land, Infrastructure and Transport said.  (123rf)Under the plan, each carrier will be required to have six sets of pilots for each of

Jan. 28, 2016

Consumer sentiment at 6-month low

Consumer confidence has slipped in January to a six-month low as households fretted about the economic outlook on the back of China’s slowdown and stock market tumble.The composite consumer sentiment index for January came to 100, compared with 102 the previous month, according to the data released by the Bank of Korea on Wednesday.(Yonhap)“Consumers view on their financial situation got worsened as recent oil price drop and China’s sluggish economy weighed on their outlook for the country’s eco

Jan. 27, 2016

Number of people changing residence edges up 0.3% in Dec.

The number of people changing residences edged up 0.3 percent in December from a year earlier, the state statistics agency said Wednesday,People changing their official residence came to some 700,000 in December, up 0.3 percent or 2,000, from the same month a year earlier, according to data provided by Statistics Korea.The population mobility rate -- the number of those changing their residence for every 100 people -- remained unchanged at 1.37 percent last month, the data showed.A net 12,842 pe

Jan. 27, 2016