Corporate direct financing falls 3% in July

South Korea's corporate direct financing fell 3 percent on month in July due to a decline in sales of bonds, data showed Tuesday. Local companies raised a combined 21 trillion won ($17.9 billion) by selling stocks and bonds in July, down 657.6 billion won from a month ago, according to the data from the Financial Supervisory Service (FSS). Corporate stock sales soared 73.3 percent to 4.05 trillion won, with the value of initial public offerings jumping to 3.08 trillion won. Local businesses

Aug. 24, 2021

'Korean economy may lose steam due to household debts'

South Korea’s economy will grow 3.9 percent this year, an Asian regional macroeconomic surveillance organization said Monday, presenting a more pessimistic outlook than what the government forecast citing growing household debts. The ASEAN+3 Macroeconomic Research Office said Asia’s fourth-largest economy continues its strong rebound in 2021 buoyed by a sustained global recovery and robust demand for electronics and autos. But it warned that the country’s growing household d

Aug. 23, 2021

Bottom 20% hit hardest by food price hikes

Soaring food prices have pushed South Korea’s low-income families to spend more on food, fueling an increase in the number of households running a deficit, data showed Monday.  According to data from the Korean Statistical Information Service, monthly expenditures on food and nonalcoholic beverages by households in the lowest income quintile, or the bottom 20 percent, stood at 244,000 won ($208) on average, during the second fiscal quarter, up 12 percent from a year earlier. 

Aug. 23, 2021

More Kospi200 firms set up ESG committees

Almost 40 percent of South Korea’s top 200 listed companies have established committees to deal with environmental, social and corporate governance issues, with a majority of them having caught on to the trend this year, a report from consulting firm Samjong KPMG showed Monday. Out of the Kospi200 companies, which make up 93 percent of the total market of the country’s main bourse, 76 companies or 38 percent have set up ESG committees, including one that has two councils. Out of t

Aug. 23, 2021

Manufacturing sentiment drops for 5th month in August: poll

South Korean manufacturers' business confidence fell for the fifth consecutive month in August due to the economic fallout from the prolonged virus pandemic, a poll showed Monday. The country's professional survey index (PSI) for the manufacturing sector's business conditions came to 109 this month, down from 114 in July, according to the poll carried out by the Korea Institute for Industrial Economics & Trade (KIET). A PSI reading above 100 means optimists outnumber pessimists. The survey

Aug. 23, 2021

AMRO ups 2021 growth outlook for S. Korean economy to 3.9%

The ASEAN-sponsored economic research agency on Monday raised its 2021 growth forecast for the South Korean economy to 3.9 percent, citing solid recovery in exports and facility investment. The projection by the ASEAN+3 Macroeconomic Research Office (AMRO) marks an increase from its March estimate of 3.2 percent. The agency forecast Asia's fourth-largest economy would expand 3 percent next year. The Singapore-based organization was established in 2011 to promote macroeconomic and financial sta

Aug. 23, 2021

Exports soar 41% in first 20 days of August

South Korea's exports jumped 40.9 percent on-year in the first 20 days of August on the back of robust demand for chips, autos and petroleum products, customs data showed Monday. The country's outbound shipments stood at $32.2 billion in the Aug. 1-20 period, compared with $22.9 billion a year earlier, according to the data from the Korea Customs Service. Imports soared 52.1 percent on-year to $35.8 billion, resulting in a trade deficit of $3.5 billion during the cited period, the data showed.

Aug. 23, 2021

Container cargo volume at seaports up 7.2% in July

The volume of container cargo processed at South Korea's seaports rose 7.2 percent in July from a year earlier, data showed Sunday, as trade increased amid the global economic recovery. Container cargo processed at the seaports reached 2.58 million twenty-foot-equivalent units (TEUs) last month, compared with 2.4 million TEUs the previous year, according to the Ministry of Oceans and Fisheries. The ministry attributed the increase to an accelerating global economic recovery from the fallout of

Aug. 22, 2021

Foreign investors sell W31tr of Korean stocks in 2021

Foreign investors have been on a selling spree of South Korean stocks so far this year, selling nearly 31 trillion won ($26 billion) of local shares, data showed Sunday. Offshore investors sold a net 30.72 trillion won between Jan. 1 and Friday, compared with net selling of 24.7 trillion won for the whole year of 2020, according to the data compiled by the bourse operator, the Korea Exchange (KRX). Offshore investors have been net sellers of local shares for seven straight months this year, ex

Aug. 22, 2021

S. Korea to cut real estate broker fee amid concern over hefty costs for housing trade

South Korea said Friday it has decided to place a new cap on commissions earned by real estate agents from October, as the nation’s heated housing market has led to a spike in broker fees, instigating public concern on the additional burden. The new measure will target broker fees on property purchases valued over 600 million won ($508,000) and lease deals over 300 million won, according to the latest announcement by the Ministry of Land, Infrastructure and Transport. The commission rat

Aug. 20, 2021

S. Korea to unveil steps to curb inflation ahead of Chuseok holiday: official

South Korea plans to unveil a set of measures later this month to stabilize consumer prices ahead of next month's fall harvest Chuseok holiday, a senior government official said Friday. First Vice Finance Minister Lee Eog-weon said the government will take actions to curb rising prices of farm products, if needed, in the run-up to the holiday scheduled for Sept. 20-22. Demand for vegetables, eggs and other foodstuffs usually rises in South Korea ahead of the Chuseok holiday as people prepare h

Aug. 20, 2021

Producer prices up for 9th month in July

South Korea's producer prices gained 0.7 percent on-month in July due to a modest rise in prices of food and energy, extending their monthly gains for the ninth straight month, central bank data showed Friday. The producer price index, a barometer of future consumer inflation, stood at 110.02 in July, compared with 109.22 a month earlier, according to the Bank of Korea (BOK). The July index advanced 7.1 percent from the previous year, the BOK data showed. The prices of agricultural goods rose

Aug. 20, 2021

Listed firms' H1 earnings more than triple amid global economic recovery

South Korea's listed companies saw their earnings more than triple in the first half of 2021 from a year earlier as the global economic recovery from the pandemic steeply increased their sales, data showed Thursday. The combined net profit of 587 out of 664 firms, which are listed on the main Kospi bourse and close their books on Dec. 31, totaled 85.13 trillion won ($72.34 billion) on a consolidated basis in the January-June period, up 245.5 percent from 26.4 trillion won a year earlier, accord

Aug. 19, 2021

S. Korea’s conflict index ranks 3rd among OECD countries: report

The level of national conflicts in South Korea ranked third among members of the Organization for Economic Cooperation and Development, raising calls for government efforts to strengthen its conflict management capacity, a report showed Thursday.  According to a report by the Federation of Korean Industries, a major business lobbying group here, Seoul’s comprehensive conflict index presenting scores running from zero to 100, stood at 55.1 as of August. It was the third highest amo

Aug. 19, 2021

S. Korea's overseas financial assets touch new high in Q2

South Korea's overseas financial assets hit a new high in the second quarter, mainly due to increased stock investments, central bank data showed Thursday. The nation's external financial assets came to $2.07 trillion at the end of June, up $85 billion from a quarter earlier, according to preliminary data from the Bank of Korea. The net international investment position came to $490.7 billion as of the end of June, up $12 billion from a quarter earlier, the data showed. The position refers to

Aug. 19, 2021

[News Focus] Korea ranks 12th of 15 OECD members in Q2 growth

SEJONG -- South Korea’s economy underperformed in the second quarter of this year compared with those of major countries, recent GDP growth data showed. Korea posted 0.7 percent GDP growth in the second quarter of 2021, which placed the country 12th out of the 15 members -- including the US, Germany, France and Italy -- of the Organization for Economic Cooperation and Development. Though the OECD has yet to compile the corresponding figures for the other 22 of the total&n

Aug. 19, 2021

Household income falls in Q2 on higher base effect

South Korean household income declined in the second quarter from a year earlier due to last year's high base after the government doled out massive pandemic relief funds to all households the previous year, data showed Thursday. The average household earned 4.29 million won ($3,600) per month in the April-June period, down 0.7 percent from the previous year, according to the data from Statistics Korea. It marked the first on-year fall since the second quarter of 2017, when household income di

Aug. 19, 2021

Tax probe underway for property-related tax evasion involving minors

South Korea's tax agency said Thursday it has launched probes into suspected tax evasion by 97 young people who acquired houses through undue wealth transfers from their parents. The National Tax Service (NTS) said it has conducted a crackdown on underaged people who own expensive apartments and houses even though they have no ability to earn money. The probe came as cases of house acquisition by people aged under 20 markedly increased despite an overall decline in housing transactions. Amid

Aug. 19, 2021

Complaints against financial firms decline 7% in H1

The number of consumer complaints against financial firms fell 7 percent on year in the first-half of this year, official data showed Thursday. The Financial Supervisory Service (FSS) said it received a total of 42,725 consumer complaints in the January-June period, compared with 45,922 complaints for the same period in 2020. The decline was mainly due to the base effect of last year, when financial complaints grew over the COVID-19 pandemic, the FSS said. Deceptive sales of investment produc

Aug. 19, 2021

Nominee for financial regulator hints at tougher measures to curb household debt

South Korea plans to unveil additional measures to curb a sustained increase in household debt, if needed, by mobilizing all available policy means, the nominee for the financial regulator has said. Koh Seung-beom, the nominee for the Financial Service Commission, told officials Tuesday that he will "swiftly" push for "strong" measures to tackle household debt if his nomination is confirmed by parliament, according to the FSC. "It is very urgent to get rid of macroecon

Aug. 18, 2021