Rent contributes most to inflation since 2013

[THE INVESTOR] Rent has become the biggest contributing factor to inflation since 2013, a Bank of Korea report showed on July 29.According to the report, rent has come to account for 0.36 percentage points of the 1.1 percent consumer price rise recorded between the beginning of 2013 and June this year. In comparison, rent accounted for 0.29 percent of the inflation rate of 3.1 percent recorded for 2006 to 2012 period. The changes are thought to have been fueled by the spike in residential proper

July 29, 2016

BOK sees higher growth in 2017

[THE INVESTOR] South Korea’s economy will grow at a slightly higher pace in 2017, the Bank of Korea projected.In the monetary policy report submitted to the National Assembly on July 29, the BOK said that next year will see a small increase in growth rate compared to the upper 2 percent range forecast for this year. “The domestic economy is following an improving trend since the first quarter, but due to increasing uncertainties at home and abroad, growth rate for the year will be in the higher

July 29, 2016

FSC urges banks to refrain from competitive debt collection

[THE INVESTOR] South Korea’s top financial regulator on July 29 urged domestic lenders to stop their “indiscriminate” debt collection practices against firms that are sensitive to economic upheavals, saying excessive attempts to do so could heighten their instability.“If lenders competitively mount pressure on firms to repay their debt, it will be difficult for them to maintain financial stability,” Financial Services Commission Chairman Yim Jong-yong said during a meeting with heads of policy a

July 29, 2016

BOK to maintain low rates

[THE INVESTOR] The Bank of Korea said on July 29 that it will maintain the low benchmark rate in light of the slow economic growth rate expected in the near future. The Bank of Korea.In a report submitted to the National Assembly, the central bank said that the current monetary policy will be maintained, citing the low growth rate and projections that inflation will fall short of the target. The central bank said that the country’s monetary policy will be implement with the aim of raising inflat

July 29, 2016

Agricultural and fisheries ministries to request review of anti-graft law

[THE INVESTOR] South Korea’s two ministries overlooking agriculture and fisheries on July 28 said they would request the Ministry of Government Legislation’s policy coordination committee to make adjustments to the anti-graft law that will be implemented in September.The Ministry of Agriculture, Food and Rural Affairs and the Ministry of Oceans and Fisheries announced their decision shortly after the Constitutional Court ruled the refuted clauses of the law -- also known as the Kim Young-ran law

July 28, 2016