Gold reaches record high in morning trading

[THE INVESTOR] Prices on Korea Exchange’s gold spot market rose to a record high on July 6, fanned by uncertainties in the international financial markets. At 10:10 a.m., gold was trading at 51,213.65 won (US$ 44) per gram. The previous high was 50,520 won per gram recorded on June 27, the first day of trading since UK’s referendum on leaving the European Union. 　By Choi He-suk (cheesuk@heraldcorp.com)

July 6, 2016

Korea’s potential growth rate could drop to 1.45% in 2050: think tank chief

[THE INVESTOR] Korea’s potential economic growth rate could fall to as low as 1.45 percent by 2050, Korea Economic Research Institute president Kwon Tae-shin warned on July 5. Speaking at a forum held at the National Assembly, Kwon said that Korea’s potential growth rate has plunged since the 1990s, and that a potential growth rate of 1.45 percent is possible by 2050. “One of the structural problems with the Korean economy is falling potential growth rate,” Kwon said. Saying that Korea’s potenti

July 5, 2016

Gov’t hopes to attract more foreign students, institutions

[THE INVESTOR] International schools on Jejudo Island will to be allowed to send a part of their profits abroad from the first half of next year under the government’s service industry growth plans revealed on July 5. Under the plans, up to 40 percent of the profits will be allowed to be transferred abroad if the school’s debt to capital ratio and other conditions are met. In addition, the government will also review allowing student loans to be given to Korean students studying at foreign insti

July 5, 2016

Korean gov’t overhauls service industry support measures

[THE INVESTOR] The service industry will get larger tax breaks and financial support funds, under the government’s “Service Economy Development Strategy” announced on July 5. The measures will be applied across the service sector, excluding adult entertainment businesses. The government also plans to review more than 200 regulations and remove those deemed detrimental to the industry. Regarding tax benefits, the service industry will be given the same benefits as the manufacturing sector, the go

July 5, 2016

Finance MInister denies gov’t intervention in exchange rates

[THE INVESTOR] Finance Minister Yoo Il-ho on July 4 denied that the government is directly intervening in the forex market to control exchange rates. “(The government) has done nothing to become directly involved in the market to (bring about) low or high exchange rates,” Yoo, who also doubles up as deputy prime minister for economic affairs, said in response to a query by Rep. Yoo Sung-yop of the minor opposition People’s Party.Finance Minister Yoo IL-hoThe opposition lawmaker had stated that t

July 4, 2016