Bank mortgage loans rise at solid pace in March

South Korea's major banks saw their mortgage loans grow at a brisk pace in March despite higher lending rates, industry data showed Friday. The nation's five major lenders -- KB Kookmin, Shinhan, Woori, Hana and Nonghyup -- had 483.2 trillion won ($427 billion) in outstanding home-backed loans as of end-March, up 3.4 trillion won from the previous month. March marks the second consecutive month that their combined mortgage lending has climbed by a number in the 3 trillion-won range. February s

April 2, 2021

Consumer price growth at 14-month high in March amid economic recovery

South Korea's consumer prices grew at the fastest pace in 14 months in March on higher prices of farm and oil products, data showed Friday, in the latest sign that inflationary pressure is building up amid an accelerating economic recovery. The consumer price index rose 1.5 percent on-year in March, accelerating from a 1.1 percent on-year gain in the previous month, according to the data compiled by Statistics Korea. The index grew 0.1 percent on-month. It marked the fastest on-year rise since

April 2, 2021

Fiscal chief says global economy on track for steep recovery

The global economy is poised to make a strong rebound on the back of a revival in manufacturing and the coronavirus vaccine rollout, said Finance Minister Hong Nam-ki on Thursday. “The upturn in the global economy will be steeper than expected,” he said at a meeting with government officials on innovative growth. His remark came as Asia’s fourth-largest economy showed signs of recovery supported by exports. “Exports are the core driving force of an economic recovery.

April 1, 2021

US expected to maintain trade barriers under Biden: KITA

The new US administration is expected to largely maintain its protectionist policies against imported goods, including South Korean products, a report said Thursday, despite President Joe Biden's vision on rebuilding multilateralism. The number of new antidumping investigations rolled out by the US came to 89 in 2020, rising sharply from 55 posted in 2017, according to a report compiled by the Korea International Trade Association (KITA). The number of new investigations against South Korean p

April 1, 2021

Exports of virus-related medical goods sharply up in 2020

South Korea's exports of test kits for the new coronavirus, protective masks and other virus-related goods sharply increased last year amid the pandemic, data showed Thursday, with the country planning to further expand outbound shipments of such goods down the road. Outbound shipments of such goods reached $5.9 billion in 2020, rising from $1.28 billion tallied a year earlier, according to the data released by the Ministry of Trade, Industry and Energy. In 2020, the country's overall exports

April 1, 2021

Tax agency launches probes into property-related tax evasion

South Korea's tax agency said Thursday it has launched probes into suspected tax evasion by 165 people and entities that sought to take profit from speculative or illegal property transactions. The National Tax Service (NTS) said it has cracked down on 158 individuals and others over alleged tax evasion. The tax agency has been looking into land transactions made around six public housing development sites in satellite cities outside Seoul as part of the country's efforts to stem property spec

April 1, 2021

Exports up for 5 months in Feb., recovery likely to be further extended

South Korea's exports advanced 16.6 percent in March from a year earlier on the back of solid demand for chips and autos to extend their gains for the fifth consecutive month, data showed Thursday, stoking speculation that recovery in Asia's fourth-largest economy is gathering pace. Outbound shipments came to US$53.8 billion last month, compared with $46.1 billion a year earlier, according to the data compiled by the Ministry of Trade, Industry and Energy. Imports rose 18.8 percent to $49.6 bi

April 1, 2021

S. Korea to boost eco-friendly energy tech to achieve carbon neutrality by 2050

South Korea said Wednesday it aims to acquire core technologies in eco-friendly energy sectors, such as highly-efficient solar panels and large-scale wind turbines, to reach carbon neutrality by 2050. Last year, South Korea unveiled its carbon neutrality goal to reduce reliance on fossil fuels and nurture eco-friendly industries. Under the plan, the country aims to develop new technologies to meet its target, such as improving efficiency in solar panels from the current level of 27 percent to

March 31, 2021

S. Korea sees limited chance of inflation exceeding BOK's 2% target

South Korea's consumer prices are not expected to sharply rise to top the central bank's 2 percent target even as the country faces upward inflationary pressure, a senior government official said Wednesday. First Vice Finance Minister Kim Yong-beom said prices of agricultural and livestock products are expected to stabilize on the back of efforts to increase supply and curb the spread of bird flu. "There is a limited possibility that the growth of consumer inflation will surpass the Bank

March 31, 2021

S. Korea launches committee on carbon neutrality in transport sector

South Korea said Wednesday it has launched a committee on carbon neutrality with automobile firms in line with efforts to effectively reduce carbon emissions to zero by 2050. The committee will pave the way for the government to expand cooperation with local carmakers, including Hyundai Motor Group, in rolling out policies related to carbon neutrality, according to the Ministry of Trade, Industry and Energy. "In the long term, we plan to beef up our competitiveness in the electric and hyd

March 31, 2021

BOK's green efforts rank 13th among G20 peers: report

Despite advocacy work on climate action, the Bank of Korea turned out to have lagged behind major economies in terms of concrete policy actions to limit financing for businesses with climage-related risks, a report showed Wednesday. According to a list of the Group of 20 nations ranked by green initiatives -- published by the non-profit Positive Money, the Bank of Korea took 13th place with the aggregate score of 11 out of 130, giving it a rating of D- on a scale of F to A+.  China top

March 31, 2021

Trade terms up for 11th straight month in February

South Korea's terms of trade rose for the 11th consecutive month in February, as exports have shown signs of a gradual recovery, central bank data showed Wednesday. The nation's net terms-of-trade index for goods -- a gauge of trade terms -- increased 6.4 percent last month from a year earlier, according to preliminary data from the Bank of Korea (BOK). It marked the 11th straight month of an on-year rise since April last year, when the trade terms logged the first on-year hike in over two yea

March 31, 2021

Loss rate for auto insurance drops in 2020 amid pandemic

Non-life insurers' loss rate for their car insurance businesses dropped last year, thanks to fewer car accidents amid the COVID-19 pandemic, data showed Wednesday. The nation's 12 non-life insurers posted an average loss rate of 85.7 percent last year, compared with 92.9 percent a year ago, according to the data by the Financial Supervisory Service (FSS). The loss rate refers to the proportion of coverage a non-life insurer pays to its policyholders from insurance premiums. The higher the loss

March 31, 2021

BOK's US dollar assets decline in 2020

South Korea's central bank said Wednesday the portion of its US dollar-denominated assets in its overall foreign assets declined last year due to the weakness of the greenback. At the end of last year, dollar-denominated holdings accounted for 67.7 percent of overall foreign assets held by the Bank of Korea (BOK), the central bank said in its annual report. The reading marks a 1.4 percentage-point drop from a year earlier. The portion of US dollar-denominated assets slightly fell due to a wea

March 31, 2021

Finance minister sees improvement in domestic demand, job market

Finance Minister Hong Nam-ki has forecast domestic demand and the job market will gradually improve as the country is on a recovery track amid the pandemic, the finance ministry said Wednesday. Hong made the assessment during his online meeting Tuesday with Alastair Wilson, managing director and head of the sovereign risk group of global rating agency Moody's Investors Service. The country held its annual consultation meetings with Moody's between March 25 and 30 over its economic conditions a

March 31, 2021

NPS, other state funds stay big net sellers of stocks in Q1

South Korea's national pension and other state funds sold more than 15 trillion won ($13.2 billion) worth of shares in the first quarter of the year due to their portfolio rules, data showed Wednesday. Net selling of shares listed on the main bourse by the National Pension Service and other state funds came to 15.7 trillion won in the January-March period, according to the data from the Korea Exchange. It accounted for 56 percent of institutional investors' total net selling worth 27.9 trillio

March 31, 2021

Manufacturers' biz sentiment rises for 3rd month for April

South Korean manufacturers' business sentiment rose for the third straight month for April, but concerns about sluggish consumption remained amid the COVID-19 pandemic, central bank data showed Wednesday. The business sentiment index (BSI) for local manufacturers came to 91 for April, up from 85 for March, 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 op

March 31, 2021

Economic recovery gathers steam as industrial output growth at 8-month high in Feb.

South Korea's industrial output grew at the fastest pace in eight months in February to recover to pre-pandemic levels, data showed Wednesday, in the latest sign that the economy is on a recovery track supported by exports. The industrial output increased 2.1 percent in February from the previous month, sharply turning around from a 0.6 percent on-month decline in January, according to the data compiled by Statistics Korea. From a year earlier, it rose 0.4 percent. It marked the fastest on-mo

March 31, 2021

S. Korea's state budget likely to exceed W600tr next year

The government will keep its expansionary fiscal policy stance next year to support the recovery of the coronavirus-hit economy, the government said, hinting at another mega budget exceeding 600 trillion won ($529.2 billion). The Cabinet approved Tuesday the 2022 budget guidelines, drafted by the Ministry of Economy and Finance to revive the sluggish economy. It focuses on fiscal inputs on boosting employment and domestic consumption and boosting investment in innovative technologies. Such

March 30, 2021

[News Focus] Most age groups skeptical on economy

SEJONG – Over the economic conditions in the coming year, a pessimistic stance was found to be dominant in most age groups in South Korea, with the only exception being people aged 40-49, a recent poll showed. According to a survey released Saturday by Gallup Korea, gloomy predictions on the economy outnumbered positive predictions among people in their 20s, 30s, 50s and 60s or older. Optimists outnumbered pessimists only among those in their 40s. By age group, 40 percent of those aged

March 30, 2021