Fiscal chief lauds controversial ‘tenant-protection’ laws

South Korea’s finance minister on Wednesday lauded the success of property laws that took effect in July last year, saying they were able to increase lease contract renewals and protect tenants, despite growing criticisms of its side effects. “The average annual lease contract renewal rate of 100 apartment complexes in Seoul stood at 57.2 percent before the bills took effect, but the bills pushed it up to 77.7 percent,” Finance Minister and Deputy Prime Minister Hong Nam-ki s

July 21, 2021

Despite New Southern Policy drive, S. Korea lags behind China, Taiwan in ASEAN cooperation

Despite state-driven efforts to strengthen ties with Southeast Asian nations, South Korea‘s trade and investment with the region still lag behind China and Taiwan, according to the Federation of Korean Industries Wednesday. Since President Moon Jae-in took office in May 2017, he pushed for elevating economic and investment cooperation with the 10 ASEAN countries -- Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam -- in so-called &rdquo

July 21, 2021

No. of chickens falls 12.1% in Q2 due to bird flu

The number of layer chickens raised in South Korea fell 12.1 percent from a year earlier in the second quarter, affected by the impact of the outbreak of bird flu, data showed Wednesday. The number of layer chickens reached 65.9 million as of end-June, compared with 74.9 million the previous year, according to the data from Statistics Korea. It rose 6.1 percent from the first quarter when the number of layer chickens came to 62.1 million, the lowest in more than three years. The on-year decli

July 21, 2021

Private equity fund-led deals touch new high in 2020

Investment deals by South Korea's private equity funds hit a new high in 2020, but their investments were still focused on local firms, data showed Wednesday. Local private equity funds invested 18.1 trillion won ($15.6 billion) in 565 companies last year, up from 16 trillion won in 2019, according to the data from the Financial Supervisory Service (FSS). They invested 12.6 trillion won in 488 South Korean companies and 5.5 trillion won in foreign companies, the data showed. At the end of la

July 21, 2021

DLS sales in S. Korea decline 10.2% in H1

The issuance of derivatives-linked securities (DLS) in South Korea sank more than 10 percent in the first half of the year amid the coronavirus pandemic, data showed Wednesday. The country's DLS sales came to 9.46 trillion won ($8.23 billion) in the January-June period, down 10.2 percent from a year earlier, according to the data from the Korea Securities Depository (KSD). The amount was also down 10.9 percent from six months earlier. DLS tracks the performance of interest rates, currency val

July 21, 2021

S. Korea's electricity use seen to hit season high

South Korea's electricity consumption is likely to hit a season high Wednesday, as the country remains gripped by a sweltering heat dome, the power market operator said. The Korea Power Exchange said the country's maximum power consumption will likely reach 91.4 gigawatts (GW) between 4 p.m. and 5 p.m., the highest number this summer. The previous record was set last Thursday, when the maximum power demand in Asia's fourth-largest economy stood at 88.6 GW. South Korea's maximum power use post

July 21, 2021

Exports up 32.8% in first 20 days of July

South Korea's exports rose 32.8 percent on-year in the first 20 days of July on the back of robust demand for chips, autos and petroleum products, customs data showed Wednesday. The country's outbound shipments stood at $32.6 billion in the July 1-20 period, compared with $24.5 billion a year earlier, according to the data from the Korea Customs Service. Imports increased 46.1 percent on-year to $36.5 billion, resulting in a trade deficit of $3.9 billion during the cited period, the data showe

July 21, 2021

Finance chief warns of possible fall in housing prices

South Korea's top economic policymaker on Wednesday reiterated his warning that high-flying housing prices could undergo corrections as prices of homes in the greater Seoul area have excessively risen. Finance Minister Hong Nam-ki said the government will put policy priority on expanding the supply of residential properties in a bid to curb speculative demand for homes. "A rise in housing prices in the greater Seoul area has been led by expectations for easing rules on the redevelopment o

July 21, 2021

Producer prices up for 8th month in June

South Korea's producer prices gained 0.4 percent on-month in June due to a modest rise in prices of industrial goods, extending their monthly gains for the eighth straight month, central bank data showed Wednesday. The producer price index, a barometer of future consumer inflation, stood at 109.06 in June, compared with 108.65 a month earlier, according to the Bank of Korea (BOK). The May index advanced 6.4 percent from the previous year, the BOK data showed. The prices of agricultural goo

July 21, 2021

4 companies to recall nearly 49,000 vehicles over faulty parts

BMW, Porsche, Kia Corp. and Nissan Motor Corp. will voluntarily recall nearly 49,000 vehicles to fix faulty components, the transport ministry said Wednesday. This is the latest in a series of recalls by carmakers in South Korea and vehicle importers due to problems with vehicle components. The companies are recalling a combined 48,939 units in 15 kinds of models, the Ministry of Land, Infrastructure and Transport said in a statement. The problems include a faulty fuel hose in BMW's MINI Coo

July 21, 2021

Despite virus resurgence, ADB revises up Korea’s GDP growth forecast to 4%

As the South Korean economy faces the grave impact of the fourth wave of COVID-19, it is also being forecast to expand 4 percent this year due to strong exports and investments, the Asian Development Bank said Tuesday, revising up its previous projection of 3.5 percent. In an updated economic forecast, the regional lender cited “facility investment that reflected expansion in the digital economy,” as well as robust “export of information technology and transport equipment&r

July 20, 2021

Housing price drop likely to affect consumer spending, employment: BOK

An abrupt fall in housing prices in South Korea could deal a substantial blow to the nation’s consumer spending and the job market amid high levels of household debt, a report by the central bank showed Tuesday. Consumer spending and employment rate could both plummet 4 percent in the next two years if the median housing price falls 20 percent in the same period, according to the Bank of Korea’s calculations. The calculation adopted a high loan-to-value ratio of 75 percent and ref

July 20, 2021

Korea Aerospace wins $240m trainer jet deal in Indonesia

Korea Aerospace Industries Co. (KAI), South Korea's sole aircraft manufacturer, said Tuesday it has received a $240 million trainer jet deal in Indonesia. Under the deal, KAI will supply six T-50 advanced trainer jets to the Indonesian air force from Dec. 16, 2021, to Oct. 30, 2024, the company said in a regulatory filing. In 2012, KAI achieved $400 million worth of deals to supply 16 T-50 trainer jets. As of Tuesday, KAI has exported a total of 154 trainer jets worth $3.1 billion -- 70 T-50

July 20, 2021

Securities settlements jump 19% in H1

The amount of securities settlements in the South Korean financial market soared nearly 19 percent in the first half of the year from six months earlier, industry data showed Tuesday. Stocks and bonds worth 3,772.2 trillion won ($3.28 trillion) were delivered through the Korea Securities Depository (KSD) in the January-June period, up 18.6 percent from the second half of last year, according to data from the KSD. It was also up 10.3 percent from a year earlier and marked the largest-ever half-

July 20, 2021

S. Korea to lift tariffs on imports from Indonesia, Israel under trade deals

South Korea will gradually lift or lower tariffs on more than 95 percent of its imported products from Indonesia and Israel as it has clinched trade deals with the two nations, the finance ministry said Tuesday. The Cabinet approved a revised enforcement ordinance in preparation for implementing trade deals with Indonesia and Israel. In December last year, South Korea and Indonesia inked the comprehensive economic partnership agreement (CEPA), which is equivalent to a free trade deal but cente

July 20, 2021

ADB ups its 2021 growth outlook for S. Korean economy to 4%

The Asian Development Bank (ADB) on Tuesday sharply revised up its growth outlook for the South Korean economy this year, citing robust exports and an expansion in facility investment. The Manila-based bank expected Asia's fourth-largest economy to grow 4 percent this year, up from its earlier estimate in April of 3.5 percent. The ADB maintained its 2022 growth forecast for Korea at 3.1 percent. The ADB joined other organizations that have jacked up their growth estimates for the South Korean

July 20, 2021

Corporate direct financing rises 34.2% in H1

South Korea's corporate direct financing rose 34.2 percent in the first half from a year ago due to a robust rise in sales of bonds and stocks, data showed Tuesday. Local companies raised a combined 122 trillion won ($107 billion) by selling stocks and bonds in the January-June period, up 31.2 trillion won from a month ago, according to the data from the Financial Supervisory Service (FSS). Corporate stock sales soared 486.9 percent to 10.4 trillion won, with the value of initial public offeri

July 20, 2021

Leading shipbuilders likely to face earnings shock in Q2

South Korean shipbuilders are forecast to report sluggish earnings in the second quarter of the year due to a sharp rise in prices of steel plates despite brisk orders, analysts said Sunday. POSCO, South Korea's leading steelmaker, has raised the prices of steel plates for ships to 1.15 million won ($1,007) per ton, up nearly two times from a year ago, they said. "A hike in prices of raw materials, including steel plates, will eat into leading shipbuilders' profits in the second quarter,&

July 18, 2021

4th wave of pandemic casts cloud over economic recovery: experts

The fourth wave of the COVID-19 pandemic is likely to put the brakes on South Korea’s economic recovery, darkening the nation’s growth outlook for the third quarter, according to economists Sunday. "Daily new infections rose sharply during the summer vacation season, when private consumption is expected to grow. Possibilities remain that the local economy could contract in the third quarter, affected by the virus resurgence and the toughest Level 4 social distancing," sa

July 18, 2021

Residents' FX deposits fall in June

Foreign currency deposits at banks in South Korea fell in June from the previous month as some companies withdrew their FX holdings, central bank data showed Friday. Outstanding foreign currency-denominated deposits held by residents amounted to $93.04 billion as of end-June, down $1.69 billion from May, according to the Bank of Korea (BOK). Residents include local citizens, foreigners staying here for more than six months and foreign companies. The data excludes interbank foreign currency de

July 16, 2021