S. Korea's debt risk premium at lowest since global financial crisis

The cost of insuring South Korea's sovereign debt against default fell to the lowest level this week since the 2008-09 global financial crisis as the country's economy is recovering faster from the pandemic, the finance ministry said Thursday. The spread on credit default swaps (CDSs) for South Korea's 5-year dollar-denominated currency stabilization bonds came in at 19 basis points Wednesday, according to the Ministry of Economy and Finance. It marked the lowest since April 2007, when the cou

May 6, 2021

Online shopping at 2nd-highest point in March amid contactless trend

Online shopping in South Korea continued to soar in March as more people bought goods via e-commerce platforms amid a non-contact consumption trend caused by the pandemic, data showed Thursday. The value of online shopping transactions stood at 15.9 trillion won ($14.1 billion) in March, up 26.4 percent from 12.6 trillion won the previous year, according to the data from Statistics Korea. The March tally marks the second-highest monthly reading since December last year when the comparable figu

May 6, 2021

Imported auto sales rise 12% in April despite pandemic

Sales of imported vehicles in South Korea jumped 12 percent in April from a year earlier on robust sales of German cars, an industry association said Thursday. The number of newly registered foreign vehicles climbed to 25,578 units last month from 22,945 a year ago despite the COVID-19 pandemic, the Korea Automobile Importers & Distributors Association (KAIDA) said in a statement. The three bestselling models last month were Mercedes-Benz's E 250 sedan, E350 4MATIC sedan and GLE 450 4MATIC

May 6, 2021

Tax incentives eyed for chipmakers: finance minister

South Korea's chief economic policymaker said Thursday the government will consider expanding tax credit programs for chipmaking-related research and development (R&D) and facility investment to nurture the non-memory chipmaking industry. Finance Minister Hong Nam-ki said the government is studying ways to increase tax benefits and policy support for the semiconductor industry to help local chipmakers sharpen their competitive edges. The country plans to set up a 280 billion-won ($248 mill

May 6, 2021

Rising home prices amid hoped-for redevelopment in focus: finance minister

Finance Minister Hong Nam-ki said Thursday the government is guarding against signs of instability in the housing market as prices of some old apartments in Seoul have picked up on expectations for eased rules for redevelopment housing projects. Housing prices in Seoul recently climbed after new Mayor Oh Se-hoon took office last month with a pledge to ease regulations on rebuilding old apartments in the capital. "The growth of apartment prices in Seoul is picking up compared to before the

May 6, 2021

S. Korea's FX reserves hit fresh record high in April on weaker dollar

South Korea's foreign reserves rose to a fresh record high in April as the US dollar's weakness boosted the value of non-dollar assets, central bank data showed Thursday. The nation's foreign reserves came to $452.3 billion as of end-April, up $6.18 billion from the previous month, according to the Bank of Korea (BOK). Foreign reserves consist of securities and deposits denominated in overseas currencies, International Monetary Fund reserve positions, special drawing rights and gold bullion.

May 6, 2021

FSS slaps penalty on 19 firms for violation of internal audit reporting

South Korea’s financial watchdog on Wednesday imposed penalties of up to 12 million won ($10,700) on local businesses that violated its internal controls over financial reporting rules in 2018. Following an inspection, the Financial Supervisory Service found 28 cases of violations across 19 companies. It has decided to slap fines ranging from 3 million won to 12 million won on 13 of those cases – five businesses, one representative of a business and seven internal auditors. The F

May 5, 2021

Most cash grant recipients spend them on consumption expenditures: poll

SEJONG -- Nearly 94 percent of South Koreans who received state virus relief grants in cash last year spent them on consumption expenditures, a report said Tuesday, in a show of their positive impact on overall consumer spending. In May last year, the government started providing relief handouts of up to 1 million won ($890.5) to every household to cushion the economic fallout from the coronavirus pandemic. Generally, recipients used relief grants through credit cards, check cards, prepaid car

May 4, 2021

Consumer price growth at near 4-year high in April

South Korea's consumer prices grew at the fastest pace in almost four years in April on higher prices of farm and oil goods, data showed Tuesday, indicating that the country may face growing inflationary pressure. The consumer price index rose 2.3 percent on-year in April, accelerating from a 1.5 percent gain the previous month, according to the data compiled by Statistics Korea. It marked the fastest on-year gain since August 2017, when the price index climbed 2.5 percent. Compared with a mo

May 4, 2021

S. Korea, China, Japan express concern over uneven economic revival in Asia

As uncertainties surrounding an uneven economic revival from the COVID-19 pandemic linger in the Asian region, top economic policymakers and central bank chiefs from South Korea, China and Japan on Monday pledged to maintain an open trade regime and strengthen regional cooperation. “The regional outlook has improved, with continued policy support and growing vaccine coverage. However, we should remain vigilant as the economic recovery has been uneven across and within member economies,

May 3, 2021

Exports up for 6th month on upbeat shipments of chips, cars

South Korea's exports jumped 41.1 percent in April from a year earlier, the highest growth in around 10 years, as demand for chips and automobiles stayed strong amid the improving global economy, data showed Saturday. Outbound shipments came to $51.1 billion last month, compared with $36.2 billion a year earlier, according to the data compiled by the Ministry of Trade, Industry and Energy. It marked the sharpest on-year monthly growth since January 2011. Imports rose 33.9 percent to $50.8 bil

May 1, 2021

Hard-line FSS chief to retire as fund fiasco remains unresolved

Financial Supervisory Service Gov. Yoon Suk-heun, known as a hard-line reformist of the financial industry, is set to retire next week without resolving a massive misselling scandal involving Korean hedge funds Lime Asset Management and Optimus Asset Management. Blamed for the watchdog’s lax oversight over the now-defunct hedge fund operators, it is unlikely that Yoon will continue to serve after his term ends on May 7, industry sources said. The alleged fraud cases caused investor los

April 30, 2021

Public firms' debt hits record high in 2020

South Korean public firms' liabilities rose for the third straight year last year to hit a record high as they increased investment amid the pandemic, the finance ministry said Friday. Of 350 state-run companies, the combined debt of 347 firms reached 544.8 trillion won ($491.5 billion) at the end of last year, up 17.9 trillion won from the previous year, according to the Ministry of Economy and Finance. It marked the highest total for liabilities since 2005 when the government began compiling

April 30, 2021

S. Korea allowed to catch over 41,000 tons of fish in Russian EEZ this year

South Korea's oceans ministry said Friday it has secured the right to catch 41,260 tons of fish in Russian waters this year, while fixing the fish fee unchanged for the third consecutive year. Under the agreement, South Korea can catch 28,400 tons of pollack and 5,050 tons of cod in the Russian exclusive economic zone (EEZ) this year, according to the Ministry of Oceans and Fisheries. The volume also includes 3,000 tons of Pacific saury and 4,000 tons of squid, the ministry said. The combined

April 30, 2021

Industrial output grows for 2nd month in March amid recovery hopes

South Korea's industrial output grew for the second straight month in March, data showed Friday, in the latest sign that Asia's fourth-largest economy is on a recovery path. The industrial output increased 0.8 percent in March from the previous month, slowing from a 2.1 percent on-month gain in February, according to the data compiled by Statistics Korea. From a year earlier, it also rose 5.8 percent. But output in the mining, manufacturing, gas and electricity industries declined 0.8 percen

April 30, 2021

S. Korea to tighten mortgage rules to rein in household debt

South Korea unveiled Thursday a set of measures aimed at mitigating risks from the growing household debt burden and bringing the debt growth rate down to levels comparable to before the coronavirus hit the country. “In the course of responding to the COVID-19 crisis last year, the increase in household debt has inevitably expanded. We will manage to revert the household debt growth rate to pre-coronavirus levels,” Finance Minister Hong Nam-ki said while presiding over an emergen

April 29, 2021

New home permits soar 35% in March

New home permits in South Korea jumped nearly 35 percent in March from a year ago despite the coronavirus pandemic, the government said Thursday. Construction permits issued for new homes stood at 45,354 units last month, down 34.8 percent from a year ago, according to the Ministry of Land, Infrastructure and Transport. Construction permits spiked 44.9 percent from a year ago to 6,691 in the South Korean capital of Seoul in March. New home permits issued in the capital area, which includes th

April 29, 2021

Restaurants' business confidence rebounds in Q1

South Korean restaurants' business sentiment rebounded in the first quarter of the year on eased social distancing rules, but it was still below pre-pandemic levels, a state food distribution firm said Thursday. The business survey index (BSI) for the country's restaurant industry stood at a post-pandemic high of 67.26 for the January-March period, up 7.5 points from a year earlier, according to the Korea Agro-Fisheries & Food Trade Corp. The first-quarter reading was also 7.93 points high

April 29, 2021

Manufacturers' biz sentiment increases for 4th month for May

South Korean manufacturers' business sentiment rose for the fourth straight month for May, despite lingering concerns about sluggish consumption amid the COVID-19 pandemic, central bank data showed Thursday. The business sentiment index (BSI) for local manufacturers came to 98 for May, up from 91 for April, according to the data from the Bank of Korea (BOK). The index measures manufacturers' outlook on business conditions in the following month. A reading below 100 means pessimists outnumber o

April 29, 2021

S&P affirms S. Korea rating at AA with stable outlook

S&P Global Ratings affirmed South Korea’s credit rating at AA with a stable outlook, the Ministry of Economy and Finance said Wednesday. Asia’s fourth-largest economy’s long-term sovereign credit rating has remained at AA -- the third-highest level on the agency’s rating scale -- since August 2016. “While the Korean economy contracted for the first time since 1998, growth is back on track, and the decline was less than that of most other high-income economies

April 28, 2021