Korea's 2016 growth rate to be same as this year's: Nomura

The South Korean economy is forecast to grow 2.5 percent next year, unchanged from this year's growth projection, mainly due to a protracted slump in exports, a Nomura economist said Monday.  "South Korea's economic growth will likely remain at 2.5 percent for both 2015 and 2016, and at 2.7 percent in 2017," Kwon Young-sun, a senior economist at Nomura International, said in a media briefing in Seoul.   "Its growth rate will miss the country's expected potential growth of 3.2 percent."  Nomura's

Dec. 7, 2015

Korea secures No. 7 stakeholder in IDB’s NewCo

The Ministry of Strategy and Finance said Sunday that Korea would increase its current 0.221 percent stake in an investment unit of the Inter-American Development Bank to 4 percent. 　This will make Korea the seventh-largest global shareholder, and the second-largest nonregional shareholder after China at 4.5 percent, of NewCo., a soon-to-be launched development finance institution under the Washington-based IDB for private sectors.  　“We could secure larger stakes than we had expected, thanks to

Dec. 6, 2015

Korean economy maintaining modest growth pace: KDI

The South Korean economy is maintaining a modest pace of growth on the back of a rise in domestic demand and corporate investment, a state-run think tank said Sunday.In its latest monthly economic trends report, the Korea Development Institute said consumption and business investment are on the mend along with consumer confidence."Overall, the lowering of excise taxes has spurred domestic demand that has been the driving force behind recent growth," the report said. "The construction sector is c

Dec. 6, 2015

Foreign IBs remain pessimistic about Korean exports: report

Foreign investment banks predict South Korea's exports to remain sluggish down the road due to continued unfavorable conditions, weighing down on the growth of Asia's fourth-largest economy, a report showed Sunday.According to the report by the Korea Center for International Finance, Barclays, Nomura, Citigroup and other foreign investment banks have forecast South Korea's overseas shipments not to recover from their slump for the time being because of such negative factors as a drop in oil pric

Dec. 6, 2015

Korea's trade to pick up in 2016 after poor showing this year

South Korea's two-way trade is expected to again exceed the $1 trillion mark in 2016 thanks to a rebound in the global economy after a lackluster performance this year, a report showed Sunday.South Korea's trade volume will likely increase 4 percent on-year to $1.02 trillion next year on the back of the world economy's recovery, according to the report by Hyundai Research Institute.   South Korea's exports are projected to expand 3.9 percent in 2016 from this year, with its imports climbing 4.1

Dec. 6, 2015

FTA with China to give hope to Korean exporters: finance minister

The ratification of a free trade pact with China will give hope to South Korean exporters struggling to expand market presence abroad, the country's top economic policymaker said Friday.Chairing a fiscal policy meeting in Seoul, Finance Minister Choi Kyung-hwan said that the free trade agreement approved by the National Assembly on Monday will breathe new life into local companies.In the January-November period, Asia's fourth-largest economy reported outbound shipments falling 7.4 percent on-yea

Dec. 4, 2015

Korea urges belt-tightening to curb long-term debt growth

South Korea should try to cut back on government spending in a bid to keep state debt from exceeding 60 percent of its growth domestic product over the long haul, the finance ministry said Friday.In a long-term fiscal outlook, the ministry said if state expenditures keep pace with the country's nominal growth rate in the coming decades, the size of state debt could rise to 62.4 percent of GDP in 2060, significantly higher than a 42.3 percent estimate for next year."South Korea's debt will invari

Dec. 4, 2015

Seoul shares open lower on ECB's disappointing stimulus

South Korean stocks got off to a weak start Friday following overnight losses in the global equity markets as the European Central Bank came up with disappointing stimulus measures.The benchmark Korea Composite Stock Price Index lost 14.35 points, or 0.72 percent, to 1,979.72 in the first 15 minutes of trading.The ECB said it will extend its quantitative easing program until at least March 2017 and cut its deposit rate deeper into negative territory.But the plan failed to satisfy the market, whi

Dec. 4, 2015

Tighter criteria for new mortgage loans to go into effect next year

South Korea's top financial regulator said Thursday that it will unveil a tighter mortgage loan screening system later this month in a bid to tackle the mounting household debt in the face of a potential U.S. rate hike. Household credit totaled a fresh record of 1,166.4 trillion won ($1.01 trillion) as of end-September, up from a revised 1,131.5 trillion three months earlier, according to the latest central bank data.  The third-quarter figure marks the highest level since the central bank began

Dec. 3, 2015

ADB cuts Korea's 2016 economic growth outlook to 3.3%

The Asian Development Bank cut its outlook for South Korea's economic growth for next year to 3.3 percent from a previous 3.4 percent, citing sluggish exports.  However, South Korea's economy is expected to recover in the coming quarters, backed by strong stimulus packages and low interest rates, the ADB said in its latest outlook update released Thursday.  The ADB kept this year's growth forecast for South Korea's economy at 2.7 percent, saying the economy is showing signs of improvement after

Dec. 3, 2015

State pension's assets top 500 tln won for first time

South Korea's state pension service said Thursday that the size of funds under its management has surpassed the 500 trillion won ($427 billion) mark for the first time ever.  The National Pension Service said its total funds reached 500.2 trillion won as of September, a gain of about 100 trillion won from 2013 and a five-fold increase from 100 trillion won in 2003. Last year, the size came to 469.8 trillion won.  Since 1988, the NPS said it has raised 622.4 trillion won overall, with 122.2 trill

Dec. 3, 2015

Seoul shares down 1% in late morning trade

South Korean stocks traded 1 percent lower late Thursday morning as investors lost the appetite for riskier assets after U.S. Federal Reserve Chair Janet Yellen hinted at an interest rate hike this month.   The benchmark Korea Composite Stock Price Index shed 20.03 points to 1,989.26 as of 11:20 a.m.   Most market heavyweights were in negative terrain.  Market bellwether Samsung Electronics slipped 0.85 percent, and top cosmetics maker Amore Pacific dropped 2.46 percent.   U.S. stocks fell on We

Dec. 3, 2015

State pension's assets top 500 tln won for first time

South Korea's state pension service said Thursday that the size of funds under its management has surpassed the 500 trillion won ($427 billion) mark for the first time ever.The National Pension Service said its total funds reached 500.2 trillion won as of September, a gain of about 100 trillion won from 2013 and a five-fold increase from 100 trillion won in 2003. Last year, the size came to 469.8 trillion won.Since 1988, the NPS said it has raised 622.4 trillion won overall, with 122.2 trillion

Dec. 3, 2015

Korea's foreign reserves shrink in Nov.

South Korea's foreign exchange reserves dropped slightly from a month earlier last month but mostly due to a devaluation of non-U.S. dollar assets, the central bank said Thursday.The country's foreign exchange reserves came to US$368.46 billion at the end of November, down $1.14 billion from the previous month, according to the Bank of Korea.The drop was largely attributed to the recent appreciation of the U.S. greenback, which in turn led to a decline in the value of the country's foreign reser

Dec. 3, 2015

Korean economic growth hits 5-year high in Q3: BOK

The South Korean economy grew at the fastest rate in over five years in the third quarter, helped by a strong recovery in consumer spending and a boom in the construction industry, central bank data showed Thursday.The country's gross domestic product expanded 1.3 percent from three months earlier in the July-September period, according to the preliminary data from the Bank of Korea.The Q3 growth marks a slight increase from an earlier estimate of 1.2 percent growth offered in October.The 1.3 pe

Dec. 3, 2015

Korea's renewable energy use lowest in OECD: report

South Korea ranked last among members of the Organization for Economic Cooperation and Development in the use of renewable energy to power its economy in 2014, a report by an international energy agency showed Wednesday.Asia's fourth-largest economy got just 1.1 percent of its energy from renewable sources like solar, wind, geothermal, tidal and hydropower generation, according to the report by the International Energy Agency. The number placed the country last among the 34 developed market econ

Dec. 2, 2015

Current account surplus narrows on growing imports in Oct.

South Korea's current account surplus shrank from a month earlier in October as imports grew while the country's deficit in the service sector widened, preliminary data from the central bank showed Wednesday.The current account surplus came to $8.96 billion last month, compared with a revised $10.54 billion surplus in September, according to the data from the Bank of Korea.The October figure, however, marked a slight increase from a surplus of $8.74 billion posted in the same month last year.Oct

Dec. 2, 2015

Korea's ICT trade surplus highest among OECD members

South Korea's trade surplus in the ICT segment outpaced those of members of the Organization for Economic Cooperation and Development in the first half, data showed Wednesday, posting robust performances despite the global economic slump.According to the data compiled by the Institute for Information & Communications Technology Promotion, South Korea posted a whopping trade surplus of $40.9 billion in the January-June period in the sector, beating Germany, which came in second with a profit of $

Dec. 2, 2015

Korea-China economic ties to get boost from yuan's SDR status

The already close economic ties between South Korea and China will receive a further boost from the yuan's inclusion in the International Monetary Fund's reserve currency basket, local observers said Tuesday.The move, to go into effect on Oct. 1, 2016, is not expected to have an immediate impact on bilateral cooperation or the international financial market as a whole, but the steady rise of China as a global economic powerhouse will be felt down the road, they said."Many central banks will move

Dec. 1, 2015

Korean retail sales hit 10-month high in Oct.

South Korea's retail sales rose to a 10-month high in October as tax cuts and a large discount event propped up consumer spending, a government report showed Tuesday.   Retail sales topped 32.28 trillion won ($27.87 billion) in October, up a sharp 6.5 percent from 30.29 trillion won a year earlier the report by Statistics Korea showed. The on-year increase is the highest reached since the 8.5 percent spike reported for February 2012.The number also represents a 3.5 percent increase from 31.17 tr

Dec. 1, 2015