IMF maintains S. Korea’s 2021 economic growth outlook at 3.6%

South Korea’s economy is expected to grow 3.6 percent this year in the wake of the coronavirus pandemic, but it will grow 2.8 percent in 2022 as the world economy recovers, the International Monetary Fund said on Tuesday. The figures have remained unchanged from its estimate released on March 26 in a report on the outcome of its annual consultation with South Korea held in January. Last month, it forecast Asia’s fourth-largest economy to grow 3.6 percent this year, up from its esti

April 6, 2021

South Korea’s total liabilities surpass GDP for first time

South Korea has seen the largest and fastest increase in total national liabilities last year, as it neared the 2,000 trillion won ($1.78 trillion) mark and exceeded the country’s gross domestic product for the first time, the Finance Ministry said Tuesday. The total liabilities reached 1,985.3 trillion won ($1.76 trillion) in 2020, up 241.6 trillion won, or 13.8 percent, from a year earlier, according to the 2020 settlement of accounts endorsed by the Cabinet. The figure is a record hi

April 6, 2021

Financial holding firms' 2020 net down on increased provisions

South Korea's 10 financial holding firms saw their combined net profit edge down last year, due mainly to higher loan-loss provisions, data showed Tuesday. The combined net profit of KB Financial, Shinhan Financial and eight other financial holding firms stood at 15.11 trillion won ($13.4 billion) in 2020, compared with a profit of 15.23 trillion won for 2019, according to the data from the Financial Supervisory Service (FSS). The decline came as banks increased loan-loss provisions to prepar

April 6, 2021

Online shopping rises 15% in Feb. amid pandemic

Online shopping in South Korea grew 15.2 percent on-year in February as more people bought products via e-commerce platforms amid the pandemic, data showed Tuesday. The value of online shopping transactions stood at 13.7 trillion won ($12.2 billion) in February, compared with 11.9 trillion won the previous year, according to the data from Statistics Korea. Online shopping has gathered pace since last year as people preferred shopping in a non-contact manner due to the COVID-19 pandemic. Purch

April 6, 2021

Foreign IBs hike S. Korea's 2021 growth outlook to 3.8%

Major global investment banks (IBs) have again upgraded their outlook for South Korea's 2021 economic growth amid growing hopes of a recovery, a report showed Tuesday. As of end-March, nine major global IBs, including Barclays, BoA-Merrill Lynch and Citi, forecast Asia's fourth-largest economy to grow 3.8 percent this year, up 0.2 percentage point from their median outlook a month earlier, according to the report by the Korea Center for International Finance. It represents the fourth straight

April 6, 2021

South Korea considering longer mortgage terms

With South Korea’s financial authorities gearing up to launch the nation’s first 40-year mortgage this year, as of Monday there was talk of longer-term options ahead -- as well as concern about whether longer-term mortgages are appropriate for the local housing market. The policymaking Financial Services Commission said Sunday that the state-backed 40-year option would be introduced for younger people and newly married borrowers as early as July. The FSC is jointly planning the mor

April 5, 2021

Homeplus fined W468m for unfair biz activity

South Korea's antitrust regulator said Monday it has decided to fine discount store chain Homeplus 468 million won ($414,500) for unfairly passing on sales promotion costs to its contractors. Homeplus violated the large retailer business act by making multiple suppliers shoulder the costs worth around 720 million won in 2017 without prior signing of related contracts, according to the Korea Fair Trade Commission (KFTC). The KFTC also ordered the company to take corrective measures. (Yonhap)

April 5, 2021

FDI pledges to S. Korea up 44.6% in Q1 on post-COVID recovery hope

Foreign direct investment (FDI) pledges to South Korea shot up 44.6 percent in the first quarter from a year earlier, data showed Monday, as investors gradually resumed their business activities amid signs of the recovery in the global economy. Asia's No. 4 economy received $4.74 billion worth of FDI commitments in the January-March period, compared with $3.28 billion logged a year earlier, according to the Ministry of Trade, Industry and Energy. The amount of investment that actually arrived

April 5, 2021

Imported auto sales jump 34% in March despite pandemic

Sales of imported vehicles in South Korea jumped 34 percent in March from a year earlier on robust sales of German cars, an industry association said Monday. The number of newly registered foreign vehicles climbed to 27,297 units last month from 20,304 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 the Mercedes-Benz E 250 sedan, Audi A6 45 TFSI sedan and Mercedes-B

April 5, 2021

Quarter of firms fail to pay interest on debt in 2020

Nearly a quarter of companies in South Korea failed to pay the interest on their debts in 2020 despite an overall rise in corporate earnings, a report said Monday. A total of 255 listed firms in Asia's fourth-largest economy had an interest coverage ratio of less than 1 last year, up six from a year earlier and accounting for 25.1 percent of 1,017 businesses listed on the country's main and secondary bourses, according to the report from the Korea Economic Research Institute (KERI). The intere

April 5, 2021

S. Korea's household debt-to-GDP ratio nears 100%: report

South Korea's household debt has been rising faster than that in most major economies to reach nearly 100 percent of its gross domestic product (GDP), a report showed Monday. The country's household debt-to-GDP ratio stood at 98.6 percent as of the end of June last year, according to the report from the Korea Institute of Public Finance. The figure is much higher than the global average of 63.7 percent and 75.3 percent for advanced economies. South Korea's growth pace of household debt has al

April 5, 2021

S. Korea's FX reserves fall in March on stronger dollar

South Korea's foreign reserves declined in March as the US dollar's strength reduced the value of non-dollar assets, central bank data showed Monday. The nation's foreign reserves came to $446.1 billion as of end-March, down $1.43 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. The FX reserves dec

April 5, 2021

Bitcoin falls after hitting all-time high, widens gap with global exchanges

Bitcoin, the largest cryptocurrency, fell on Sunday after hitting a fresh record high over the weekend. The price difference between domestic and overseas exchanges, dubbed as the kimchi premium, widened as much as 10 percent, indicating a heated investors’ atmosphere. Bitcoin prices stood at around 73.50 million won ($65,056) in the early afternoon at local exchange Upbit and Bithumb, declining from the fresh record high of 75.30 million won on the previous day. This compares to other

April 4, 2021

Listed firms' 2020 net profit jumps nearly 20% despite pandemic: KRX

South Korean listed firms saw their net profit increase nearly 20 percent last year despite the fallout from the pandemic, the bourse operator said Sunday. The combined annual net income of 694 KOSPI-listed companies, excluding financial firms, came to 63.45 trillion won ($56.25 billion) on a consolidated basis, up 18.15 percent from the previous year, according to the Korea Exchange (KRX). Their combined operating profits rose 3.2 percent on-year to 107.4 trillion won, while sales decreased b

April 4, 2021

Manufacturing sentiment hits over 6-year high amid post-pandemic recovery

South Korean manufacturers' business sentiment has improved sharply, hitting an over 6-year high, amid hopes that the economy may recover from the coronavirus pandemic faster than expected, a poll showed Sunday. A survey of some 2,200 manufacturing firms put the business sentiment index (BSI) at 99 for the April-June period, the Korea Chamber of Commerce and Industry (KCCI) said. The figure is up 24 points from the previous quarter and at the highest level since the third quarter of 2014. A r

April 4, 2021

Farm goods exports hit record high in Q1

South Korea's exports of agriculture products reached an all-time high in the first quarter of the year on the back of strong demand for kimchi and processed foods, data showed Sunday. The record amount of $1.98 billion represents a 13.7 percent rise from the previous year, according to data compiled by the Ministry of Agriculture, Food and Rural Affairs. By category, outbound shipments of fresh products remained sluggish, but those of processed goods increased 9.3 percent to hit $359 million.

April 4, 2021

Public firms' planned job additions remain 40% lower than last year

More than 35 public firms in South Korea plan to hire more than 5,000 new employees this year, but the number is still almost 40 percent lower than last year's job additions amid extended pandemic fallout, data showed Sunday. Thirty-six public firms plan to hire 5,089 regular workers this year, compared with 8,350 people hired last year, according to data posted on the state portal All Public Information in One (ALIO). Korea Railroad Corp. (KORAIL), the operator of railway services, plans to h

April 4, 2021

Petroleum consumption at 5-year low in 2020 amid pandemic

South Korea's consumption of petroleum declined to a five-year low last year amid the pandemic, data showed Sunday. The country's consumption of petroleum reached 878 million barrels last year, down 5.8 percent from the previous year, according to Korea National Oil Corp. The tally marked the lowest since 2015, when the country consumed 856 million barrels. It also marked the first time in five years that such consumption dipped below 900 million barrels. The consumption of jet fuel declined

April 4, 2021

Seoul stocks tipped to see gains next week on US stimulus hopes

South Korean stocks are likely to see gains next week as optimism for a massive infrastructure project by the United States is expected to continue to sway local financial markets, analysts said Saturday. The benchmark Korea Composite Stock Price Index (KOSPI) closed at 3,112.8 points Friday, up 2.36 percent from a week ago. The KOSPI finished the week at its highest level since Feb. 17, backed by an increase in foreign buying that was spurred by the US president's unveiling of a US$2.25 trill

April 3, 2021

Insurers' lending grows 7.8% in 2020

Loans extended by insurance companies in South Korea rose 7.8 percent on-year last year, led by increases in home-backed lending and corporate loans, the financial watchdog said Friday. Insurers' outstanding loans totaled 253 trillion won ($224.4 billion) as of end-December, compared with 234.7 trillion won the previous year, according to the Financial Supervisory Service (FSS). Their loans to households rose 2 trillion won on-year to 123.1 trillion won last year as the extension of home-backe

April 2, 2021