S. Korea's economy grows 0.7% in Q2, on track for 4% growth this year

South Korea's economy grew at a solid pace in the second quarter and is on track for a 4 percent expansion this year estimated by the central bank thanks to a strong recovery of domestic demand and robust exports, the Bank of Korea (BOK) said Tuesday. Gross domestic product increased 0.7 percent on-quarter in the April-June period, after a 1.7 percent expansion in the first quarter. The nation's economy grew 5.9 percent on an annual basis, marking the fastest expansion in a decade. The gro

July 27, 2021

Tax incentives to be expanded for investment in chips, batteries, vaccines

South Korea said Monday it plans to expand tax incentives for corporate research & development (R&D) and facility investment in semiconductors, batteries and vaccines as it seeks to nurture them as key strategic technologies. The government will provide tax benefits worth 1.16 trillion won ($1 billion) for R&D expenditures and investments in chips, electric vehicle batteries and vaccines under a tax code revision bill. The 2021 tax code revision centers on underpinning a fast econo

July 26, 2021

24 producers of concrete piles fined W102b over price fixing

South Korea's antitrust regulator said Monday it will fine 24 producers of concrete piles a combined 102 billion won ($88.4 million) for colluding to fix prices of the products used for construction. Samil C&S and 23 others colluded to fix prices of concrete piles and slash production between April 2008 and January 2017 in a bid to stem price falls and maintain inventory levels, according to the Korea Fair Trade Commission. Concrete piles are used to buttress the ground when building apart

July 26, 2021

Daily FX turnover falls in Q2 as volatility cools

The daily foreign exchange (FX) trading by banks in South Korea fell 5.1 percent in the second quarter from three months earlier, as transactions declined over cooling volatility, central bank data showed Monday. The daily FX turnover came to an average $57.85 billion in the April-June period, down $3.09 billion from the first quarter, according to the data from the Bank of Korea (BOK). The average daily turnover of foreign exchange spots reached $22.88 billion during the second quarter, down

July 26, 2021

Relief cash handouts eyed in late Aug. but may be delayed

South Korea said Monday it seeks to provide pandemic emergency funds to most of its citizens next month, but the timing could be flexible depending on the virus situation. The government plans to provide stimulus checks of 11 trillion won ($9.5 billion) to people in the bottom 80 percent income bracket and double-income and one-person households, as the National Assembly approved an extra budget of 34.9 trillion won last week. Parliament endorsed the extra budget larger than the government's p

July 26, 2021

S. Korea's biopharmaceutical exports more than double in 2020

South Korea's exports of biopharmaceutical products more than doubled in 2020 from a year earlier on the back of the growing demand for pharmaceutical products amid the COVID-19 pandemic, a report showed Monday. Outbound shipments of high-end biopharmaceutical products came to $5.1 billion in 2020, compared with around $2.1 billion tallied the previous year, according to the Korea International Trade Association (KITA). Asia's fourth-largest economy stood in seventh place in terms of exports i

July 26, 2021

Instant noodle exports hit new high in H1 amid pandemic

South Korea's instant noodle exports touched an all-time high in the first half of the year amid the coronavirus pandemic, data showed Monday. Asia's fourth-largest economy exported $319.68 million worth of instant noodles, or "ramyeon" in Korean, in the January-June period, up 5.8 percent from a year earlier, according to the data from the Korea Customs Service. The amount was above the previous first-half record of $302.08 million set a year earlier. Yet the first-half growth rate

July 26, 2021

[Herald Interview] In pandemic drive, procurement agency opens door for SME exports

South Korea’s central government procurement agency has been stepping up efforts to support small and medium-sized enterprises in the health sector eyeing on the international procurement markets in the pandemic era. And its support is adding momentum to the nation’s exports of pandemic-related goods, a state-led recovery model from the virus, its chief said in a recent interview with The Korea Herald. “Since last year, local SMEs producing quarantine products such as face

July 25, 2021

5 financial firms' H1 interest income likely up 11% on increased loans

The interest income of South Korea's five major financial groups likely jumped 11 percent in the first half from a year earlier on extended loan growth amid low market rates, industry sources said Sunday. KB, Hana, Shinhan, Woori and NH Nonghyup are expected to report a combined 20.38 trillion won ($17.7 billion) worth of interest income from January to June, up from 18.43 trillion won in the same period of last year, it said. KB, Hana, Woori and NH Nonghyup posted interest income of 5.41 tr

July 25, 2021

US firm HAAH to submit LOI for SsangYong Motor: sources

The head of US-based vehicle importer HAAH Automotive Holdings Inc. has said the company is set to submit its letter of intent this week to acquire SsangYong Motor Co., industry sources said Sunday. HAAH Automotive Holdings founder Duke Hale said HAAH is the optimal company to acquire financially troubled SsangYong and will submit an LOI by Friday, a person familiar with the matter said over the phone. SsangYong's Indian parent Mahindra & Mahindra Ltd. had been in talks with HAAH to sell i

July 25, 2021

S. Korea to raise up to $1.5b via overseas debt sale

South Korea is planning to float up to $1.5 billion worth of overseas bonds during the second half of the year to capitalize on favorable funding conditions, financial sources said Sunday. According to the sources, the finance ministry has recently completed the process to pick a lead manager for the planned debt sale. The ministry's move came as ratings on Asia's fourth-largest economy remain high in the face of the pandemic. Last year, major global rating agencies, such as Fitch, did not lo

July 25, 2021

S. Korea to launch pilot operation of mobile driver's license in Jan.

South Korea plans to begin a pilot operation of a mobile driver's license in January next year in a bid to help people verify their identities more conveniently, a senior government official said Friday. First Vice Finance Minister Lee Eog-weon said if introduced, mobile driver's licenses will be easily used at offline and online settings. To ease concerns about a possible infringement on privacy, the government plans to use blockchain technology to strengthen the protection of personal inform

July 23, 2021

S. Korea maintaining stable power supply amid scorching summer heat

South Korea's state energy bourse said Friday the country is expected to maintain a stable supply of electricity despite the sweltering summer heat, although growing demand from the industry sector may lead to lower power reserves. "On Friday, South Korea's peak energy demand is expected to reach around 90.3 gigawatts (GW)," the Korea Power Exchange said in a statement. "The power reserve ratio is expected to stand at 10.1 percent, maintaining the stable supply of energy."

July 23, 2021

[News Focus] Korea’s gasoline prices climb to 32-month high

SEJONG -- Gasoline prices in South Korea reached the highest level in 32 months amid a spike in international crude prices this year. According to the Korea National Oil Corp., gasoline prices climbed to 1,638.05 won ($1.41) per liter as of Wednesday, which marked the highest since Nov. 7, 2018 when it was 1,640.7 won. In a year, gas prices grew 20.3 percent compared to July 21, 2020. This is due to the fast bounce-back in international crude prices over the past few months after a plunge in

July 23, 2021

Central bank digital currencies, crypto will coexist: experts

Government-backed coins and private cryptocurrencies will coexist for a while, despite rising regulatory walls set by the government to counter virtual coins, experts at a global webinar session said Thursday.　 Noting that cryptocurrencies and digital currencies by governments are “two different animals,” they will coexist for now partly because current cryptocurrencies are not actually solving payment problems. “How many of them (cryptocurrencies) are solving actual paym

July 22, 2021

Growth of S. Korea's national assets slightly slows in 2020

South Korea's overall wealth grew at a slightly slower pace in 2020 on-year, central bank data showed Thursday, amid the COVID-19 pandemic that took a heavy toll on the nation's economy. The country's national assets came to 17,772.2 trillion won ($15.45 trillion) as of the end of last year, up 6.6 percent from a year earlier, according to the national balance sheet from the Bank of Korea (BOK). The rise marks a slight slowdown from a 6.7 percent on-year increase in 2019. The sluggish growth

July 22, 2021

S. Korea to offer financial support for semiconductors, batteries, vaccines

SEJONG -- Finance Minister Hong Nam-ki said Thursday the government will provide financial and taxation support for key technologies in semiconductors, batteries and vaccines. Unveiling a list of 65 technologies in the three industrial sectors, Hong said the government will funnel 2 trillion won ($1.7 billion) in funds by 2023 to help companies develop such technologies. The government will hike taxation support if companies spend money to build facilities for such technologies, Hong said. Ea

July 22, 2021

Regulator extends deadline for Yogiyo sale until early next year

South Korea's antitrust regulator said Thursday it extended the deadline for the sale of Delivery Hero's food delivery affiliate here, Yogiyo, until Jan. 2 next year, as the German company is facing difficulty in finding a potential investor. In December last year, the Korea Fair Trade Commission (KFTC) ordered Delivery Hero to sell Yogiyo, South Korea's No. 2 food delivery app, if it wants to buy the country's top food delivery app operator, Woowa Brothers. Delivery Hero had been required to

July 22, 2021

Fitch keeps S. Korea's credit rating at 'AA-,' outlook stable

Global credit appraiser Fitch Ratings said Thursday it has maintained South Korea's credit rating at "AA-" with a stable outlook. Fitch's rating for South Korea has been AA-, the fourth-highest level of the agency's sovereign ratings, since 2012. "Korea's rating balances robust external finances, resilient macroeconomic performance and modest fiscal headroom against geopolitical risks related to North Korea and medium-term structural challenges from an ageing population. The str

July 22, 2021

Naver's Q2 net jumps nearly 6 times on surge in pandemic-driven fintech, commerce business

South Korea's top internet portal operator Naver Corp. said Thursday its net profit jumped nearly six times in the second quarter from a year earlier largely due to a stellar performance of its fintech and commerce businesses amid the new coronavirus pandemic. Net profit reached 540.6 billion won ($468.5 million) in the April-June period, compared with a profit of 90.7 billion won a year earlier, the company said in a press release. Operating income reached a quarterly high of 335.6 billion wo

July 22, 2021