Korea lowers growth forecast to 2.3 percent

The Ministry of Strategy and Finance has revised down its growth estimate this year on fears that the global economy could continue to be weighed down by sluggish demand.The ministry on Thursday projected 2.3 percent growth in 2013, down from its initial forecast of 3 percent announced last year, as exports slowed and private consumption and facilities investment continued to show weak performance.Unveiling the new government’s economic policy direction, Finance Minister Hyun Oh-seok said it wou

March 28, 2013

Current account surplus widens in Feb.

South Korea’s current account surplus widened in February from the previous month as imports declined faster than exports, and a deficit of the service account narrowed, the central bank said Thursday.The current account surplus reached $2.71 billion in February, up from a revised $2.33 billion the previous month, according to the Bank of Korea. The current account is the broadest measure of cross-border trade.The February gain was the largest since November, marking the 13th straight month of a

March 28, 2013

Depositors to sue KDIC

State-controlled Korea Deposit Insurance Corp. is facing a lawsuit from consumers who suffered losses on locked deposits in the wake of the 2011-12 savings bank debacle, industry sources said Thursday.Many customers were unable to withdraw their deposits when financial authorities suspended the operation of 26 mutual savings banks from January 2011 to February 2013.The disgruntled depositors for the 26 secondary banks nationwide are poised to file a joint claim against the KDIC with Seoul Admini

March 28, 2013

Savings bank depositors to sue KDIC

The state-controlled Korea Deposit Insurance Corp. is facing a lawsuit from a group of consumers who suffered losses on locked deposits in the wake of the 2011-12 savings bank woes, industry sources said Thursday.A great number of consumers were unable to withdraw their deposits as financial authorities suspended operations of 26 mutual savings banks from January 2011 to February 2013.The disgruntled depositors for the 26 secondary banks nationwide are poised to file a joint claim against the KD

March 28, 2013

KDB Financial chief offers to resign

The head of South Korea's state-run KDB Financial Group Co. has offered to resign, its officials said Thursday, amid growing pressure from the government for a big reshuffle of major banking chiefs. Kang Man-soo, the chairman of KDB Financial Group and its banking unit Korea Development Bank, has already tendered his resignation to the government, soon after President Park Geun-hye named the new chairman of the Financial Services Commission (FSC), the country's top regulator, according to people

March 28, 2013

S. Korea to unveil economic stimulus

The Park Geun-hye government is set to introduce its first package of economic measures aimed at boosting jobs and the sustainability of small and medium enterprises.The Ministry of Strategy and Finance headed by Deputy Prime Minister Hyun Oh-seok is set to reveal to the public its stimulus plans on Thursday after a last-minute check with President Park, whose priority is improving job growth in the country entering a low-growth period.A ministry official said Thursday’s announcement would show

March 27, 2013

KNOC discovers ‘significant amount’ of oil in Iraq

The state-run Korea National Oil Corp. has discovered a “significant amount” of oil in Hawler oil field, northern Iraq, where it has a 15 percent stake, the company said Wednesday. Switzerland’s Oryx Petroleum has a 65 percent stake in the block, while the Kurdish local government holds the remaining 20 percent. The KNOC did not disclose an estimate for the oil reserves in the block, saying a more comprehensive study was required for such figures.But it added that a drill stem test had yielded a

March 27, 2013

Shares up on stimulus hopes

South Korean stocks closed 0.49 percent higher Wednesday on the back of the government’s envisioned measures to boost its economy, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index advanced 9.74 points to 1993.44. Trading volume was moderate at 339 million shares worth 3.76 trillion won ($3.39 billion), with decliners outnumbering gainers 406 to 296.“The stock market gathered ground as investors’ sentiment got a boost from the governme

March 27, 2013

Korean economy grows 2% in 2012

Korea’s economy grew at the slowest pace in three years due to lackluster private consumption as well as slowdowns in facility investment and construction, the Bank of Korea said Tuesday.According to the BOK report, the nation’s gross national income increased 2.6 percent on-year in 2012 as terms of trade improved. Per capita GNI stood at $22,708 last year, up from $22,451 in 2011.Growth of Korea’s gross domestic product stood at 2 percent in 2012 as initially expected, as the three main economi

March 26, 2013

Seoul seeks to raise W15tr via overhaul of tax break schemes

SEJONG (Yonhap News) ― South Korea seeks to secure 15 trillion won ($13.5 billion) over the next five years by streamlining its tax exemptions and reduction programs, the Finance Ministry said Tuesday.The move comes as policymakers are reviewing diverse ways to raise money to finance expanded welfare programs sought by the new government, which started its five-year-term in February.“In order to satisfy the growing fiscal demand, we need to raise 15 trillion won over the next five years by strea

March 26, 2013

Shares up on bargain hunting

South Korean stocks closed 0.3 percent higher on Tuesday as investors hunted for bargains, analysts said. The local currency rose against the U.S. dollar.After opening lower, the benchmark Korea Composite Stock Price Index rose 6.03 points to 1,983.7. Trading volume was moderate at 271.8 million shares worth 3.3 trillion won ($3 billion), with decliners outnumbering gainers 408 to 386.The key index staged a rally on Monday after dropping for three consecutive trading sessions.“The local stock ma

March 26, 2013

BOK, finance chiefs at odds over interest rates

Signs of a feud between the Bank of Korea and the Finance Ministry are emerging as their chiefs are taking different stances over monetary policy.Hyun Oh-seok, the first deputy prime minister and finance minister, stressed the need to lower the benchmark interest rate in a bid boost the sagging economy.In contrast, BOK Gov. Kim Choong-soo immediately reiterated that side effects from low interest rates could undermine Korea’s economic fundamentals.Kim, one of the seven-member panel for the BOK’s

March 26, 2013

Korea to launch rescue fund for heavy debtors this week

The South Korean government unveiled Monday detailed plans of a rescheduling fund for heavy debtors, one of President Park Geun-hye’s key presidential campaign pledges. The Financial Services Commission, the country’s top financial regulator, said the public fund aimed to ease the debt burdens of the heavily-indebted persons will be launched on Friday with an initial size of 1.5 trillion won ($1.34 billion), to be run for the next five years.The government had initially proposed a fund worth 18

March 25, 2013

Nonghyup faces ongoing ATM glitch

Nonghyup Bank has yet to fully normalize the operation of its automated teller machines as of Monday, after its network system was paralyzed by cyber attacks on March 20.According to its spokespeople, about 450 ATMs at Nonghyup Bank’s branches nationwide were still malfunctioning as of 2 p.m., March 25.In the restoration process, Nonghyup Financial Group lags behind Shinhan Financial Group, which fully repaired glitches in network systems at its two subsidiaries ― Shinhan Bank and Jeju Bank ― wi

March 25, 2013

Korea’s small car sales drop on prolonged slump

Sales of small cars in South Korea sank in the first two months of the year due to weak demand stemming from the country’s protracted economic slump, industry data showed Monday.According to the data, a total of 28,711 small cars with engine capacities of 1.0 liter were sold in the country in the January-February period, down 8.2 percent from a year earlier.The overall domestic passenger car market, however, shrank at a lower rate of 2.8 percent during the cited period, the data showed, indicati

March 25, 2013

Firms’ overseas investments soar over decade

South Korean companies’ overseas direct investment has expanded at a clip four times faster than the growth rate of their capital spending here over the past decade, a report showed Monday.According to the report by the Korea Chamber of Commerce and Industry, the on-year growth rate of overseas direct investment by local firms averaged 17.2 percent between 2003 and 2012, with their local investments increasing at an annual average of 4 percent.Between 1993 and 2002, the growth rate of local firm

March 25, 2013