All members of the World Trade Organization must halt farm export subsidies by 2023 as part of an ongoing effort to lower trade barriers and increase cross-border commerce, the government said Sunday.  According to the Ministry of Trade, Industry and Energy, the members reached an agreement at the WTO's latest ministerial talks in Nairobi on key issues related to the agriculture sector that had been a sticking point in the long-drawn Doha Development Agenda talks.  Under the agreement, all leadi

Dec. 20, 2015

A recent U.S. interest rate hike is expected to have a limited impact on ongoing monetary easing measures being pursued by Asian countries, financial analysts said Sunday.  Analysts from Barclays, HSBC and Bloomberg, as well as local market watchers, said that while last week's move by the Federal Open Market Committee to raise the target range of the federal fund rate from 0-0.25 percent to 0.25-0.50 percent has reverberated in places like the Middle East, Africa and Latin America, it has not c

Dec. 20, 2015

South Korea's economic growth rate will likely slow to 2.5 percent in 2016 due to a continued export slump and weakening domestic consumption, a leading private think tank forecast Sunday.  The prediction by the LG Economic Research Institute marks a 0.2 percentage point drop from its earlier estimate made in September.  LGERI's revised growth projection is also lower than the government's 3.1 percent estimate for next year and the Bank of Korea's 3.2 percent forecast.  The think tank, however,

Dec. 20, 2015

South Korea's government will push to reorganize the country's numerous special economic zones that have failed to meet expectations, the finance ministry said Sunday.   The ministry said plans by 14 regional administrations to build more than 200 free economic zones, industrial innovation centers, and research and development zones have not moved forward as planned. Of these, the country has some 90 special regions dedicated to attracting foreign investments, eight large free economic zones and

Dec. 20, 2015

Free trade pacts between South Korea and three of its trading partners -- China, Vietnam and New Zealand -- went into effect Sunday, raising hopes they could boost trade and economic growth, the government said.  The Ministry of Trade, Industry and Energy said all three free trade agreements that were signed and ratified earlier in the year went into force. Under the terms of the agreements, the countries will all lower tariffs on goods traded as of Sunday and once again on Jan. 1.   China will

Dec. 20, 2015

Gold headed for a second weekly decline, trading near the lowest in more than five years, after the Federal Reserve's first rate rise in almost a decade boosted the dollar and hurt demand.Bullion for immediate delivery traded 0.4 percent higher at $1,054.99 an ounce at 10:27 a.m. in Singapore, set for a weekly fall of 1.8 percent, according to Bloomberg generic pricing. The metal fell as much as 2.3 percent on Thursday to $1,047.79, near the Dec. 3 low of $1,046.44. It has dropped for eight of t

Dec. 18, 2015

Asian stock markets fell back on Friday after a two-day rally boosted by the Federal Reserve's interest rate hike, as the rout in oil prices returned to centre stage, with commodity-linked shares again taking a hit.Exchanges from New York and Sao Paolo to London and Tokyo cheered the Fed's widely-expected decision Wednesday to lift borrowing costs for the first time in almost a decade, which was taken as a sign of its confidence in the world's top economy.However, while European equities extende

Dec. 18, 2015

South Korean stocks opened lower Friday, tracking overnight losses on Wall Street, as investors locked in profits amid lingering concerns over faltering oil prices.The benchmark Korea Composite Stock Price Index shed 13.8 points, or 0.7 percent, to 1,964.16 in the first 15 minutes of trading.Following three sessions of gains, the Dow Jones industrial average shed 1.5 percent on Thursday and the Nasdaq dropped 1.35 percent, after U.S. crude fell to the lowest level since February 2009.The selling

Dec. 18, 2015

Producer prices in South Korea slipped to a new six-year low last month although the rate of drop slowed from a month earlier, central bank data showed Friday.The producer price index came to 99.31 in November, down from a revised 99.65 in the previous month, according to the preliminary data from the Bank of Korea.The November figure marked a 0.3 percent cut from the previous month, decelerating from a 0.7 percent on-month drop in October when the index fell below the benchmark 100 for the firs

Dec. 18, 2015

South Korea's top central banker said Thursday the U.S. rate hike poses little to no immediate danger for the local economy, maintaining that the rate hike had long been anticipated and accounted for.  The Bank of Korea governor said the country should rather watch out for possible changes in global oil prices and the Chinese economy, both blamed for a prolonged downturn in South Korean exports.  "We have long anticipated a U.S. rate hike, as the U.S. had strongly suggested that it would raise i

Dec. 17, 2015

Revenues by South Korean companies continued to dwindle in the third quarter partly due to weak exports, but the rate of the decline slowed while the firms' overall financial stability improved on better profitability, central bank data showed Thursday.  In the three months ended Sept. 30, sales of South Korean firms slipped 1.6 percent from the same period last year, decelerating from a 4.3 percent on-year drop in the previous quarter, according to the Bank of Korea.  Sales of large companies d

Dec. 17, 2015

South Korean stocks cheered on Thursday the U.S. Federal Reserve's decision to raise interest rates by a quarter point for the first time in an almost decade.  The benchmark Korea Composite Stock Price Index added 17.14 points, or 0.87 percent, to 1,986.54 in the first 15 minutes of trading.  Hours before the local market opening, the Fed raised the target rate for the federal fund rates from 0-0.25 percent, to 0.25-0.50 percent in a show of confidence in its economic conditions. It is the first

Dec. 17, 2015

The U.S. Federal Reserve's decision to raise its interest rates for the first time in nine years will have little impact on South Korea, a senior government official said Thursday.Chairing a macroeconomic and financial policy meeting in Seoul, Vice Finance Minister Joo Hyung-hwan said the decision to raise rates by 0.25 percentage point was roughly in line with market expectations.The Federal Open Market Committee moved to raise the target range of the federal fund rate from 0 to 0.25 percent, t

Dec. 17, 2015

With the South Korean government pushing to issue two new licenses for integrated complexes of foreigner-only casinos, voices of concern are rising over a potential surplus in the industry already hit by a global economic slowdown, China’s anticorruption drive and unstable demand.“As there are already two integrated resorts being constructed in the metropolitan region, an additional establishment would have a great chance of resulting in excess supply,” said Pyo Hak K., an honorary professor of

Dec. 16, 2015

The Bank of Korea on Wednesday set the inflation target for the next three years at 2 percent, as the economy braces for a future of low growth and lower price levels. The annual target for the 2016-2018 period is higher than this year’s projected inflation of 0.7 percent. The rise in consumer prices stayed below 1 percent for 11 months this year until November, when it reported an uptick to a 1 percent gain from a year ago. In October, the central bank projected next year’s inflation rate at 1.

Dec. 16, 2015

South Korea's central bank said Wednesday it set the country's annual inflation rate at an average 2 percent over the next three years, sharply lower than the current target band, calling it an optimal target to support growth while also ensuring stability.  "The inflation target has been set after considering recent movements in the country's underlying inflation, optimal inflation level and outlook on future consumer prices," the Bank of Korea said in a press release, adding the target rate ha

Dec. 16, 2015

The following are key economic policy plans unveiled by the finance ministry on Wednesday for 2016. The measures are centered on fueling the country's growth momentum and reaping the rewards of economic innovation undertaken in the past three years.▲Economic forecasts   - Annual growth forecast downgraded from 3.3 percent to 3.1 percent in 2016 to reflect economic uncertainties, and weaker-than-expected growth in global trade that can hurt industrial production, consumption and investment. Growt

Dec. 16, 2015