[H2 ECONOMIC POLICY] President Park urges parliament to pass extra budget plan

[THE INVESTOR] President Park Geun-hye on June 28 urged the National Assembly to pass the government’s plan for an extra budget without delay, stressing it is aimed at supporting workers who could lose their jobs amid the restructuring of ailing shipping and shipbuilding industries.During a meeting with economy-related ministers, she stressed that given South Korea’s strong economic fundamentals and relatively small bilateral trade with Britain, the impact of Brexit would be “limited.”“To suppor

June 28, 2016

[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

[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

Korea needs up to 26.6 trillion won supplementary budget: think-tank

[THE INVESTOR] Korea will need as much as 26.6 trillion won (US$22.5 billion) in supplementary budget to weather negative elements from external and internal economic conditions, a think-tank said on June 26. In a report published on June 26, Hyundai Research Institute said that Korea needs between 11.5 trillion won and 26.6 trillion won in supplementary budget in order to offset negative factors from home and abroad. According to the report, Korea has about 113 trillion won remaining in this ye

June 28, 2016

Power prices could surge by 97% if energy supply market privatized

[THE INVESTOR] Power prices could rise by 97 percent if the government opens the nation’s state-controlled energy supply market to the private sector, according to a study released on June 27. If the retail power market is privatized, electricity prices may drop in the initial phase but will rise continually, according to the report on major global economies’ policies related to the electricity supply. Under the plan announced on June 14 by the Ministry of Trade, Industry and Energy, the country

June 27, 2016

South Korea‘s inconsistent fiscal policy draws criticism

 [THE INVESTOR] The government is expected to unveil a plan to set aside about 10 trillion won ($8.4 billion) in supplementary budget Tuesday when it announces economic policy directions for the second half of this year.In a meeting with lawmakers from the ruling Saenuri Party on Friday, Finance Minister Yoo Il-ho said he would actively consider drawing up an extra budget if it was to pass parliament within the next month.Two days earlier, Yoo, who doubles as deputy prime minister for economic a

June 27, 2016