Seoul expects no major reprisal from China over THAAD, contingency plans in place

[THE INVESTOR] The South Korean government has a number of contingency plans in case China takes economic action in retaliation for Seoul’s decision to deploy the Terminal High Altitude Area Defense system, the finance minister said on July 13. Speaking at the National Assembly, Finance Minister Yoo Il-ho, who also doubles as deputy prime minister for economic affairs, said that Seoul has contingency plans for a number of scenarios, but that major economic reprisal is not considered likely. Fina

July 13, 2016

Korea-China FTA boosts cross-border investment

[THE INVESTOR] Cross-border investment between South Korea and China has risen sharply this year, fanned by the Korea-China free trade agreement, industry data showed on July 13. The trade pact took effect in December 2015. According to the Kora International Trade Association, South Korean entities invested US$2.2 billion in China during the first five months of the year. The figure is 12.2 percent higher than that recorded during the same period last year. The Korea-China FTA signing ceremony

July 13, 2016

Chinese non-tariff barriers raise concerns

[THE INVESTOR] The South Korean economy could be hit hard if China increases non-tariff barriers that restrict the sale of Korean-made goods, as the country is heavily dependent on China for exports, industry data showed on July 12. According to a report released by Hyundai Research Institute, the amount of Korea’s export to China affected by the two most common non-tariff barriers -- technical barriers to trade and sanitary and phytosanitary measures -- has sharply increased since 2008. The num

July 12, 2016

Seoul on alert for possible economic reprisal from China over THAAD

[THE INVESTOR] South Korean presidential office is closely monitoring trade with China for possible economic reprisal from China over the deployment of Terminal High Altitude Area Defense system. Speaking to reporters at the presidential office, chief presidential economic advisor Kang Seok-hoon, said that the government is “closely monitoring the situation” in response to questions regarding possible economic retaliation from China. Since Seoul and Washington announced the decision to deploy TH

July 12, 2016

S. Korea’s growth rate to drop further in 2016, 2017: think tank

[THE INVESTOR] South Korea’s economic growth rate will come in at 2.5 percent this year, at drop further in 2017, a think tank projected on July 12. In its second half outlook report, the LG Economic Research Institute projected a growth of 2.1 percent for the final stretch of the year, bringing the annual average to 2.5 percent. For 2017, LGERI projected a growth rate of 2.3 percent. The government’s economic growth rate projection for 2016 is 2.8 percent. The report forecast that dropping expo

July 12, 2016

FM says S. Korea’s growth rate will drop more without supplementary budget

[THE INVESTOR] South Korea’s economic growth rate will drop to about 2.5 percent without supplementary budget, Finance Minister Yoo Il-ho said on July 12.Speaking to the parliamentary Special Committee on Budget and Accounts, Yoo, who doubles as deputy prime minister for economic affairs, said that if the government is not granted the supplementary budget, the country’s growth rate will hover around 2.5 percent.Finance Minister Yoo Il-hoHe said that the ministry will submit the supplementary bud

July 12, 2016

Korean gov’t tax revenue rises W19tr in first 5 months

[THE INVESTOR] South Korean government’s tax revenues for the first five months of the year has increased by 19 trillion won (US$ 16.50 billion) from a year ago, boosted by improvements in consumer spending and the property market. According to data released by the Minister of Strategy and Finance, the government collected 112.7 trillion won in taxes during the first five months of the year. In comparison, the figure for the same period last year was 93.7 trillion won. The Finance Ministry said

July 12, 2016