[URGENT] Gov’t holds emergency meeting over Brexit worries

[THE INVESTOR] The Ministry of Strategy and Finance called an emergency meeting of economic and financial authorities on June 24 over growing concerns for the UK’s exit from the European Union.The meeting will be held at 2 p.m. in Seoul, and will bring together deputy chiefs of the Finance Ministry, Financial Services Commission, Financial Supervisory Service, Bank of Korea and the chief of the Korea Center for International Finance. Earlier in the day, economy-related government bodies held a c

June 24, 2016

Korea revises down growth outlook to 2.8 percent

 [THE INVESTOR] Korea has cut its annual economic growth rate outlook in 2016 to 2.8 percent from the previous 3.1 percent, the government said on June 24.During a meeting with the ruling Saenuri Party, government policymakers said growth is expected to slow in the second half of 2016. “If the second-half economic policy plan is executed as expected, this year’s growth will decrease from initial 3 percent-level to around 2.8 percent,” a government policymaker said. Finance Minister Yoo Il-ho at

June 24, 2016

Korea’s dependence on China poses risks and opportunities

[THE INVESTOR] Korea’s high economic dependence on China is a double-edged sword, a report said on June 24.In a report titled “China’s choice,” McKinsey Global Institute ranked Korea fourth in the world in terms of economic dependence on China. According to the report, Korea is fourth in the world in terms of the proportion of gross domestic product raised from exports to China. Oman showed the highest dependence followed by Angola and Malaysia. China national flag.Korea’s economy is highly trad

June 24, 2016

Government to inject W10.5tr into renewable energy

[THE INVESTOR] The government will invest 10.5 trillion won (US$9.1 billion) into renewable energy in collaboration with the private sector, the Ministry of Trade, Industry and Energy said on June 23. In a press release before a parliamentary briefing on the same day, the ministry said that it will focus on issues concerning electric vehicles, solar power, energy storage systems and other energy-related fields. The ministry said that it will roll out measures to improve conditions for electric v

June 23, 2016

[ANALYST REPORT] Korea's slower growth has limited impact on sovereign credit profile: Moody's

Moody‘s Investors Service says that against a backdrop of weak external demand, Korea’s (Aa2 stable) export-dependent growth model has come under pressure. The consequently weakening operating environment underpins the negative outlook on the banking system. However, Moody‘s expects Korea’s fiscal, institutional and external metrics to remain strong when compared to rating peers, which supports the stable outlook on the sovereign rating.In a just-released report titled “Government of Korea: FAQ

June 23, 2016

Korea’s exports to China shrink for 11 consecutive months

[THE INVESTOR] Korea’s monthly exports to China shrank for the 11th consecutive month in May, matching the record set in 2008 and 2009, industry data showed on June 23. According to the Korea International Trade Association, Korea’s exports to China came in at US$9.93 billion in May, falling 9.1 percent from a year ago. Korea’s exports to China have shown year-on-year drop since July 2015. However, the rate of decrease has slowed in recent months, the data showed. From December to April, Korea’s

June 23, 2016

Korea’s top firms blocking economic recovery: study

[THE INVESTOR] Korea’s economic recovery is being delayed as local companies are fast losing vitality, a study conducted by LG Economic Research Institute showed. Korea’s equity market that is in the doldrums reflects the downtick in business activities here, Lee Han-deuk, senior researcher at the think tank said in his report published on June 20. The study notes that the compound annual growth rate of Korean firms’ market capitalization slowed to 3.2 percent between 2011 and 2015, compared to

June 22, 2016

Exports to increase in H2: report

[THE INVESTOR] Korea’s exports will show small improvement in the second half of the year, the Institute for International Trade projected in a report released on June 22. In the report, IIT projected that Korea’s exports will come in at US$260.5 billion in the second half of the year, up 0.9 percent from the same period last year. The IIT cited developed nations’ economic recovery, rising oil prices and improving demand from emerging economies for the projection. The IIT forecast that crude oil

June 22, 2016

Korea’s economic growth to slow down in 2016

[The INVESTOR] Korea’s economy is expected to grow at a similar rate this year on the recovery of exports in the second half. Facility investment, however, will record minus growth, according to a leading economic think tank. Korea Institute for Industrial Economics and Trade released its economic and industrial outlook for 2016 on June 22. It predicted the gross domestic product in the first half of the year at 2.9 percent and the second half at 2.3 percent, averaging the figure of 2.6 percent

June 22, 2016