[H2 ECONOMIC POLICY] 3 out of 4 economic experts says Korean economy deteriorated from a year ago

[THE INVESTOR] The majority of experts assess the Korean economy to have slipped since last year, and consider China’s slowdown as the most critical factor, a government survey showed on June 28. According to a survey that asked 338 experts, 75.4 percent said that the country’s economy has become worse this year compared to 2015. Regarding the biggest external risk the Korean economy is facing, 46.4 percent chose China’s slowdown, while 35.5 percent said that slowing global trade posed the bigge

June 28, 2016

[H2 ECONOMIC POLICY] Gov’t to overhaul foreign worker policies by Dec.

[THE INVESTOR] The government will overhaul foreign worker polices by the end of the year to attract highly trained foreign talent, while suppressing the influx of untrained workers, the Ministry of Strategy and Finance said on June 28. As part of the measures, the government plans to introduce a special program exempting visa requirements for highly trained foreign workers. The Ministry of Strategy and FinanceAt present, foreign professional need graduate degrees, or have a bachelor’s degree wi

June 28, 2016

[H2 ECONOMIC POLICY] S. Korea cuts 2016 economic growth outlook to 2.8%

[INVESTOR] South Korea slashed its 2016 economic growth outlook by 0.3 percentage point to 2.8 percent, joining other private institutions that have already made downward revisions of their own growth estimates.The Finance Minstry’s latest forecast is on par with those made in April by the Bank of Korea, but is slightly higher than the 2.7 percent estimate by the International Monetary Fund.In 2015, the South Korean economy expanded 2.6 percent annually, decelerating from the previous year’s 3.3

June 28, 2016

[H2 ECONOMIC POLICY] Tax breaks and cashback for eco-friendly goods:South Korea

[THE INVESTOR] Tax breaks for replacements of old diesel cars and high-efficiency home appliances will be rolled out in the second half of the year, the Ministry of Strategy and Finance announced on June 28.Under the plans, those replacing diesel vehicles registered before Dec. 31, 2006 will be given a 3.5 percentage point cut in the special consumption tax of 5 percent for automobiles. Hyundai Motor EV Ioniq.The Finance Ministry said that the measure is aimed at weeding out old diesel vehicles

June 28, 2016

Hyundai Steel stock price target cut due to weak momentum

[THE INVESTOR] Hyundai Steel stock price target has been reduced to 62,000 won (US$52.41) from 67,000 won by Eugene Investment & Securities, citing the steelmaker’s limited earnings momentum in the second half of this year. “Hyundai Steel’s sales (excluding affiliates) for the second quarter are expected to grow 0.3 percent to 3.71 trillion won and its operating profit will fall 16.6 percent to 354.1 billion won which is in line with analysts’ estimates,” Bang Min-jin, an analyst at Eugene said.

June 28, 2016

[H2 ECONOMIC POLICY] South Korea proposes W10tr extra budget

[THE INVESTOR] The South Korean government said on June 28 that it will draw up a 10 trillion-won (US$8.45 billion) extra budget to cope with a myriad of economic challenges including slumping domestic and overseas demand, and Britain’s recent vote to leave the European Union.Including the proposed extra budget, the Finance Ministry said it would need to inject 20 trillion won into Asia’s fourth-largest economy this year by utilizing tax revenue surpluses and various state-run funds.“We will map

June 28, 2016

[H2 ECONOMIC POLICY] Gov’t to roll out environment-related support measures

[THE INVESTOR] The South Korean government will expand infrastructure for electric vehicles, and roll out measures for encouraging companies to cut greenhouse gases as part of its plans to boost environment-related businesses in the second half of the year. These and other related measures were included in the government’s economy-related plans for the second half revealed on June 28. Under the plans, a company that invests in alternative energy projects that lead to greenhouse gas reduction at

June 28, 2016