Skepticism grows over presidential hopefuls’ real estate tax pledges

Experts have cast doubt on recent pledges made by major presidential candidates and their parties on overhauling real estate tax rules, with critics raising questions over its feasibility and impact on the property market. Yoon Seok-youl, the presidential nominee of the main opposition People Power Party, on Sunday vowed via Facebook to reexamine the comprehensive real estate holding tax, which is levied on high-value or multiple property owners. The tax is currently levied annually between t

Nov. 16, 2021

Biz groups' inter-affiliate trading falls in 2020

Transactions among affiliates of South Korea's large business groups fell in 2020 from a year earlier on tough regulations, the antitrust regulator said Tuesday. The value of inter-affiliate transactions by 2,182 units of 71 large business groups amounted to 183.5 trillion won ($155 billion) last year, down 13.2 trillion won from 196.7 trillion won the previous year, according to the Fair Trade Commission. Such deals accounted for 11.4 percent of all business contracts clinched by them last ye

Nov. 16, 2021

No. of multiple home owners grows by smallest in 6 years last year

The number of multiple home owners in South Korea grew by the smallest number in six years last year due largely to heavy taxation on such people, data showed Tuesday. The number of multiple home owners had reached 2.32 million as of Nov. 1, 2020, up from 2.28 million the previous year, according to Statistics Korea. The 2020 growth marked the slowest gain since 2014, when the number of such people grew by 28,000. The portion of people who have two or more houses accounted for 15.8 percent of

Nov. 16, 2021

Residents' FX deposits hit new high in Oct. on hopes of strong dollar

Foreign currency deposits at banks in South Korea surged to a record high in October on expectations for a strong dollar, central bank data showed Tuesday. Residents' outstanding foreign currency-denominated deposits had stood at a fresh record of $100.77 billion as of end-October, up $6.57 billion from the previous month, according to the Bank of Korea (BOK). It marks the first time the country's foreign currency deposits have surpassed the $100 billion level. It also represents the third con

Nov. 16, 2021

Tax revenue up W4.1tr in Sept. amid economic recovery

South Korea's tax revenue increased 4.1 trillion won ($3.5 billion) in September from a year earlier amid an economic recovery and a boom in asset markets, the finance ministry said Tuesday. The government collected 26.3 trillion won in taxes in September, compared with 22.2 trillion won a year earlier, according to the Ministry of Economy and Finance. The government said tax revenue has increased so far this year as corporate tax income has risen in line with the economic recovery, while capi

Nov. 16, 2021

Korea’s household debt-GDP ratio highest among major economies

The ratio of South Korea’s household debt in comparison to its economy has become the highest among major economies, a report showed Monday, sparking concerns over its impact on an already sluggish consumption and the nation’s fiscal soundness. Asia’s fourth-largest economy was the only country that saw its household debt exceeding its gross domestic product among the 37 countries reviewed by the US-based Institute of International Finance. Debt grew at one of the fastest pace

Nov. 15, 2021

S. Korea to offer $100m in loans for Bangladesh's economic recovery

South Korea said Monday it plans to provide $100 million in financing for a joint project with multilateral lenders to help Bangladesh recover from the fallout of the pandemic. South Korea's Economic Development Cooperation Fund (EDCF) will offer its low-interest rate loans for the $700 million joint project to support Bangladesh's economy, the finance ministry said. The project will also be supported by the Asian Development Bank with $250 million, the Asian Infrastructure Investment Bank (AI

Nov. 15, 2021

S. Korea's household debt-GDP ratio highest worldwide: report

South Korea has the highest ratio of household debt to gross domestic product (GDP) among major economies in the world, a report showed Monday, indicating it could crimp consumption and weigh on the economy down the road. The country's household debt stood at 104.2 percent of its GDP as of end-June this year, the highest among 37 economies, according to the report by the Institute of International Finance. Hong Kong came next with 92 percent, followed by Britain with 89.4 percent, the United S

Nov. 15, 2021

Finance Ministry forecasts rosy outlook for domestic demand

South Korea’s domestic demand is on its track for a recovery in line with the rebound in exports and the adoption of the “Living with COVID-19” scheme, the Ministry of Economy and Finance said in its monthly report. “The Korean economy is recovering amid an ongoing improvement in exports and the job market,” the ministry said in a monthly report. “Domestic demand is likely to gradually rebound as the in-person service sector recovers due to eased quarantin

Nov. 12, 2021

Domestic demand to gradually recover amid eased virus restrictions: ministry

South Korea's domestic demand is expected to gradually recover as in-person service segments will likely rebound amid the country's eased virus restrictions, the finance ministry said Friday. But Asia's fourth-largest economy still faces external economic downside risks, including global inflation risks and supply chain disruptions, the ministry said in its monthly economic assessment report, called Green Book. "The Korean economy is recovering amid robust exports and an improvement in th

Nov. 12, 2021

S. Korea temporarily cuts fuel taxes to tackle soaring oil prices

South Korea temporarily lowered fuel taxes Friday in an effort to ease the impact of surging oil prices on the country's consumer inflation and people's lives. Government officials said the 20 percent reduction in taxes on gasoline, diesel and liquefied petroleum gas (LPG) will remain in place for six months until the end of April next year. Under the move, the fuel tax on gasoline drops to 656 won ($0.55) per liter from 820 won, with that on diesel falling to 466 won from 582 won. Taxes accou

Nov. 12, 2021

[Newsmaker] Higher-than-expected inflation to continue for time being, says BOK chief

South Korea’s central bank chief said Thursday that the economy is likely to see faster-than-expected inflation for the time being, due to the global supply bottleneck and the spike in oil prices. In an opening speech at an economic meeting with investment bankers and experts, Bank of Korea Gov. Lee Ju-yeol pointed to the nation’s spiking consumer prices, which gained 3.2 percent on-year -- the sharpest rise since January 2012, when the corresponding figure stood at 3.3 percent.

Nov. 11, 2021

S. Korean economy to grow 3% next year on robust private spending: KDI

The South Korean economy is forecast to grow 3 percent next year as private spending is likely to pull off a robust recovery amid the vaccine rollout, the Korea Development Institute (KDI) said Thursday. KDI's 2022 growth outlook, which remained unchanged from its estimate in May, is on par with the 3 percent growth estimates by the government and the Bank of Korea (BOK). The International Monetary Fund forecast 3.4 percent growth for Korea. "On the back of the COVID-19 vaccination drive,

Nov. 11, 2021

Exports rise 29.3% in first 10 days of Nov.

South Korea's exports grew 29.3 percent on-year in the first 10 days of November on the back of solid demand for chips and petroleum products, customs data showed Thursday. The country's outbound shipments stood at $18.3 billion in the Nov. 1-10 period, compared with $14.1 billion a year earlier, according to the data from the Korea Customs Service. Imports jumped 59 percent on-year to $21.2 billion, resulting in a trade deficit of $2.98 billion during the cited period, the data showed. By se

Nov. 11, 2021

BOK chief worries about expanded 'unknowable uncertainty' for economy

South Korea's economy remains on a recovery path driven by robust exports but faces an expanded "unknowable uncertainty" associated with global supply chain disruptions and concerns over inflation, the country's central bank chief said Thursday. Bank of Korea Gov. Lee Ju-yeol made the remarks in a meeting with economic experts from major think tanks, adding that next year will be an "important turning point" toward a "new balance" after a prolonged fight against th

Nov. 11, 2021

Job growth continues for 8 months, signaling labor market recovery: data

The number of employed people in South Korea grew for the eighth straight month in October, marking the lowest unemployment rate in eight years and signaling a gradual recovery in the country’s labor market from the effects of the pandemic, data showed Wednesday. According to the data from Statistics Korea, the number of hired workers surged by 652,000 on-year to 27.7 million, showing a continual increase since March. Unemployment was 2.8 percent, down from 3.7 percent last year -- the l

Nov. 10, 2021

BOK chief to meet economic experts to exchange views on economic conditions

South Korea's central bank chief will hold a meeting with economic experts this week to exchange views on recent economic trends, officials said Wednesday. Bank of Korea Gov. Lee Ju-yeol will meet seven economic experts from major think tanks, including the Samsung Economic Research Institute, at a Seoul hotel Thursday, according to the bank officials. Lee occasionally held the "discussion on economic trends" with experts from various economic sectors, but no such meetings have been

Nov. 10, 2021

Posco to create 25,000 youth jobs over next 3 years: govt.

The steelmaking conglomerate Posco has promised to create 25,000 new jobs over the next three years as part of the government's youth job and education support project, the Prime Minister's Office said Wednesday. Posco and its affiliates will hire 14,000 people annually for three consecutive years and run support programs for partners and startups to recruit 11,000 people over that period. The plan was revealed during a partnership announcement event between Posco and the Prime Minister's Offi

Nov. 10, 2021

S. Korea’s household debt growth slows down, Treasury yields surge in Oct.

The pace of household debt growth in South Korea slowed down in October, while the yields on both short-term 3-year and benchmark 10-year Treasury notes saw gains in the same period, data showed Wednesday. The outstanding household loans extended by banks here gained 5.2 trillion won ($4.3 billion) on-month to 1,057.9 trillion won, Bank of Korea data showed. The gain was less sharper compared with a 6.4 trillion won on-month gain observed in September, an on-year increase of 10.6 trillion won

Nov. 10, 2021

Banks' household loans grow at slower pace in Oct. amid tight lending rules

South Korean banks' loans to households grew at a slower pace in October, central bank data showed Wednesday, amid the government's tightened regulations on lending amid worries about soaring household debt. Banks' household loans stood at 1,057.9 trillion won ($897.3 billion) as of end-October, up 5.2 trillion won from a month earlier, according to the data by the Bank of Korea. The on-month growth slowed from a 6.4 trillion won rise in September. It is also much smaller than an increase of 1

Nov. 10, 2021