FDI in free economic zones likely to hit 4-yr high in 2016: data

Foreign direct investment pledged to South Korea's free economic zones is expected to reach a four-year high in 2016 on the government's efforts to attract more overseas investment, data showed Tuesday.Fresh FDI committed so far this year to the country's eight FEZs stood at $2.42 billion, soaring 66 percent from $1.46 billion tallied a year ago, according to the data compiled by the Ministry of Trade, Industry and Energy.The 2016 figure marked the highest since 2012 when it hit a record $2.56 b

Dec. 20, 2016

Demand deposits reach record high on low rates, lack of investment opportunities

South Korea's demand deposits have reached a record high, central bank data showed Saturday, amid an apparent lack of investment opportunities, while the return on long-term bank deposits has also dipped due to record low rates.As of end-October, demand deposits held by local banks and financial institutions here came to some 201.76 trillion won ($169.97 billion), up 3.4 percent from a month earlier, according to the data from the Bank of Korea.The October tally marked the first time demand depo

Dec. 17, 2016

Korea overhauls key inflation index

South Korea's state-run statistics office said Friday it has revised the composition and calculation of its consumer price index in a bid to better reflect price trends of key items.Statistics Korea said it changed the base year for the calculation of the index to 2015 from the previous 2010, and the index's composition.The revision, made every five years to maintain the accuracy of the index, is applied retroactively to data compiled since January 2016, the agency said.According to the statisti

Dec. 16, 2016

Korean shares turn higher on Wall Street gains

South Korean stocks turned higher late Friday morning, tracking overnight gains on Wall Street.The benchmark Korea Composite Stock Price Index gained 2.97 points, or 0.15 percent, to 2,039.62 as of 11:15 a.m.The broad index followed overnight gains on Wall Street. The Dow Jones industrial average gained 0.30 percent, with the tech-heavy Nasdaq composite index climbing 0.37 percent.Foreigners and individuals are buying large-cap stocks, such as Samsung Electronics and Naver, the top Internet port

Dec. 16, 2016

S. Korea again vows swift action against financial risks

South Korea on Friday reaffirmed its determination to move swiftly and resolutely to deal with any financial market turmoil as the recent U.S. rate hike and the domestic political issues weigh heavily on Asia's fourth-largest economy.The government held an emergency economic response team meeting chaired by Vice Finance Minister Choi Sang-mok in Seoul to review the current economic situations and discuss ways to deal with challenges that the South Korean economy is now facing, according to the M

Dec. 16, 2016

Two S. Korean firms to purchase NASA building

A consortium of two South Korean financial firms has been picked as the preferred bidder to purchase the headquarters building of the U.S. National Aeronautics & Space Administration (NASA) in Washington D.C., industry sources said Thursday.A consortium of Korea Investment & Securities Co. and Hana Asset Management Co. was selected on Wednesday (Washington time) as the winning bidder to buy the building for some US$360 million.NASA uses the building as its headquarters under a lease contract due

Dec. 15, 2016

Seoul stocks edge down on U.S. rate hike

South Korean stocks ended slightly lower Thursday, tracking overnight losses on Wall Street following a U.S. rate hike.The benchmark Korea Composite Stock Price Index lost 0.22 points, or 0.01 percent, to 2,036.65.The decline followed overnight losses on Wall Street.The Dow Jones industrial average lost 0.60 percent, with the tech-heavy Nasdaq composite index declining 0.50 percent.Bae Sung-young, a market analyst at Hyundai Securities Co., said, "Local stocks are undergoing a correction after t

Dec. 15, 2016

BOK holds key rate steady at 1.25% in Dec.

South Korea's central bank on Thursday held its key rate steady for December to help support growth following a rate hike in the United States.In a widely expected move, the monetary policy board of the Bank of Korea voted unanimously to keep the key rate at 1.25 percent. The move represents the BOK's extension of its wait-and-see mode for the sixth consecutive month after sending the key rate to a record low level to stimulate growth in Asia's fourth-largest economy.The freeze came hours after

Dec. 15, 2016

Korea to create stable environment for foreign businesses: finance minister

South Korea's finance minister said Thursday that Asia's fourth-largest economy has strong economic and financial fundamentals to overcome the current headwinds stemming from the domestic political turmoil and a global economic slowdown.The recent political turbulence sparked by the impeachment of President Park Geun-hye is feared to weigh on the economy, which is experiencing a tepid recovery due to faltering exports and lukewarm domestic demand. Following the National Assembly's vote to impeac

Dec. 15, 2016

Korean shares open lower on Wall Street losses

South Korean stocks opened lower Thursday, tracking overnight losses on Wall Street following a U.S rate hike.The benchmark Korea Composite Stock Price Index lost 5.69 points, or 0.28 percent, to 2,031.18 in the first 15 minutes of trading.The decline followed overnight losses on Wall Street.The Dow Jones industrial average lost 0.60 percent, with the tech-heavy Nasdaq composite index declining 0.50 percent.Bae Sung-young, a market analyst at Hyundai Securities Co., said "local stocks are underg

Dec. 15, 2016

BOK tipped to stand pat on key rate in 2017

South Korea's central bank is widely forecast to continue its stand-pat rate policy in 2017 due to the nagging issue of snowballing household debt and slowing economic growth, analysts said Wednesday.The prediction comes as the Bank of Korea (BOK) is strongly tipped to leave the country's benchmark interest rate at 1.25 percent at its monthly rate-setting meeting on Thursday due to a possible US rate hike.Seo Hyang-mi, an analyst from HI Investment & Securities Co., bet on the BOK's rate freeze,

Dec. 14, 2016

Seoul stocks open higher on US gains

South Korean shares opened higher Wednesday, tracking gains on Wall Street ahead of this week's rate decisions in Seoul and Washington.The benchmark Korea Composite Stock Price Index rose 4.83 points, or 0.24 percent, to 2,029.52 in the first 15 minutes of trading.The main index tracked overnight gains on Wall Street. The Dow Jones industrial average rose 0.58 percent, with the tech-heavy Nasdaq composite index climbing 0.95 percent.Bae Sung-young, a market analyst at Hyundai Securities Co., sai

Dec. 14, 2016

Corporate bond sales shrink on weak capex

South Korea's corporate bond sales have contracted sharply in 2016 from last year due to large firms' sluggish capital spending and rising interest rates, data showed Wednesday.Local companies floated 35.1 trillion won ($30.1 billion) worth of bonds between Jan. 1 and Tuesday, while issuing only 264 billion won this month, according to the data by the Korea Financial Investment Association.Given the current pace, corporate debt sales for all of 2016 are unlikely to surpass the 40 trillion won ma

Dec. 14, 2016