Card firms 2020 net rises 23.1% amid pandemic

South Korea's credit card firms saw their combined earnings rise 23.1 in 2020, helped by higher income from loans amid the COVID-19 pandemic, the financial regulator said Monday. The combined net profit of eight card issuers, including Shinhan Card Co., Samsung Card Co. and KB Kookmin Card Co., came to 2.02 trillion won ($1.8 billion) last year, up 380.1 billion won from a year earlier, according to the Financial Supervisory Service (FSS). The sharp rise was attributed to a combination of earn

March 29, 2021

Korean shippers, shipbuilders sailing well amid Suez blockage

Shares in South Korea's shipbuilders and shippers have enjoyed decent increases in the past weeks, but this time, they are again on a rising track on expectations for a further climb in freight rates and demand for ships amid the unprecedented blockage at the Suez Canal. HMM Co., South Korea's largest shipper, saw its shares jump 15.96 percent to close at a record high of 34,150 won Friday, though it traded 5.86 percent lower as of 10:50 a.m. Monday in the face of profit-taking. Pan Ocean Co.,

March 29, 2021

Biz sentiment down for April on uncertainties: poll

South Korea's business sentiment slightly fell for April on increased uncertainties in the electronics and auto manufacturing industries, a local think tank said Monday. The business survey index (BSI) of the country's top 600 companies by sales reached 106 for next month, down 3.2 points from March, the Korea Economic Research Institute (KERI) said in a statement. But the index for April stayed above 100 for the second straight month after its March reading exceeded 100 for the first time in

March 29, 2021

S. Korea's exports predicted to rise 18.3% in March: poll

South Korea's exports are expected to rise 18.3 percent in March from a year earlier to extend the gains for the fifth consecutive month, led by strong demand for chips and automobiles, a poll showed Monday. Outbound shipments are expected to reach $54.6 billion this month, according to the poll by Yonhap Infomax, the financial news arm of Yonhap News Agency. The survey was conducted on eight brokerage houses. Imports are estimated to rise 17.8 percent over the period to reach $49.2 billion wo

March 29, 2021

Corporate direct financing jumps 29% in February

South Korea's corporate direct financing jumped 29 percent in February from the previous month due to a modest rise in bond sales, data showed Monday. Local companies raised a combined 19.9 trillion won (US$17.6 billion) by selling stocks and bonds last month, up 4.4 trillion won from a month ago, according to the data from the Financial Supervisory Service (FSS). Corporate stock sales plunged 64.2 percent on-month to 684.6 billion won, with the value of initial public offerings dipping 43.9 p

March 29, 2021

5 window producers fined for exaggerated advertising

South Korea's antitrust regulator said Sunday it has decided to fine five manufacturers of windows a combined 1.28 billion won ($1.13 million) for exaggerated advertising. LG Hausys and its four rivals ran advertisements that misled consumers to believe that installing their products can sharply reduce energy costs, according to the Korea Fair Trade Commission (KFTC). The companies did not specify in ads that such results on energy efficiency could be generated in a strictly controlled environ

March 28, 2021

NPS delays decision on domestic stock ratio

South Korea‘s public pension fund, the National Pension Service, delayed a decision on whether or not to increase the proportion of domestic stock holdings, amid mounting criticism over the fund’s selling streak. NPS investment Management, the fund’s highest decision-making body, held a meeting Friday to discuss the matter, but failed to reach an agreement on whether or not to raise the proportion of strategic asset distribution limit from the current 2 percentage points to 3

March 26, 2021

Home transactions tumble 24.5% in Feb.

Home transactions in South Korea sank nearly 25 percent in February amid government measures to rein in rising prices, data showed Friday. The number of homes changing hands nationwide stood at 87,021 last month, down 24.5 percent from a year earlier, according to the data from the Ministry of Land, Infrastructure and Transport. The February reading was also down 4 percent from the previous month. The number of home transactions in the Seoul metropolitan area, which includes the western port

March 26, 2021

Over 80% of extra budget-funded relief aid to be offered by May

South Korea plans to provide more than 80 percent of another extra budget-funded relief aid to pandemic-hit smaller merchants by May, a senior government official said Friday. The National Assembly on Thursday approved the 15 trillion-won ($13 billion) extra budget designed to finance the 20.7 trillion-won aid package for the self-employed and vulnerable groups battered by the pandemic. Second Vice Finance Minister An Il-whan said more than 80 percent of the 7.3 trillion-won budget set aside t

March 26, 2021

S. Korea to ease inflation pressure amid rising raw material prices

South Korea will step up efforts to ease growing inflationary pressure as hikes in global grain prices have jacked up prices of processed products, a senior government official said Friday. Vice First Finance Minister Kim Yong-beom also said the government plans to consider measures to ease financial burdens of businesses that have suffered from hikes in raw material prices. "People have felt higher price pressures as prices of processed goods, such as ready-to-eat steamed rice, bread and

March 26, 2021

S. Korea to unveil measures to stem property speculation by civil servants

South Korea plans to unveil a set of measures next week to root out property speculation by public officials amid a mounting public outcry over a land speculation scandal by public officials, the finance minister said Friday. Finance Minister Hong Nam-ki stressed the government is preparing to come up with measures to eradicate property speculation and illegal practices, and prevent the recurrence of similar cases. "(With the measures), the government plans to apply very strict standards

March 26, 2021

Consumer sentiment gains for 3rd month in March

South Korea's consumer sentiment rose for a third consecutive month in March, as exports showed signs of a modest recovery amid the COVID-19 vaccine rollout, central bank data showed Friday. The composite consumer sentiment index (CCSI) came in at 100.5 for March, up 3.1 points from the previous month, according to the data from the Bank of Korea (BOK). A reading above 100 means optimists outnumber pessimists. The latest reading marks the third on-month gain following a drop in December las

March 26, 2021

IMF sharply ups 2021 growth outlook for S. Korea to 3.6%

The International Monetary Fund (IMF) on Friday sharply raised its growth outlook for South Korea this year, citing robust exports and the country's fiscal policy support amid the pandemic. The IMF forecast the South Korean economy to grow 3.6 percent this year, up from its estimate in January of 3.1 percent. The upward revision came as the IMF issued a report on the outcome of its annual consultation with South Korea held in January. The IMF said Asia's fourth-largest economy is expected to

March 26, 2021

[News Focus] Household debt risks mount as banks halt interest discounts

SEJONG -- South Korea’s benchmark interest rate has been set at an all-time low of 0.5 percent per annum for 10 months since May last year, as the central bank tries to prop up a lackluster economy that has faltered in the wake of the novel coronavirus. The record-low rate could benefit many households and micro-business owners who resort to financial loans in this unexpected situation. But the Bank of Korea will have no choice but to conduct rate hikes eventually on a mid-term basis, g

March 25, 2021

Construction contracts surge 18.7% in Q4

SEJONG -- The value of construction contracts in South Korea jumped nearly 19 percent in the fourth quarter of 2020 thanks to increased private and public projects, government data showed Thursday. The value of civilian and public works contracts stood at 82.4 trillion won ($72.7 billion) in the October-December period, up 18.7 percent from the same period a year ago, according to the data from the Ministry of Land, Infrastructure and Transport. Public sector contracts swelled 24.9 percent on-

March 25, 2021

BOK to extend financial support for pandemic-hit small merchants, SMEs

South Korea's central bank said Thursday it will extend financial support for smaller merchants and firms by six months to help them ease a funding squeeze amid the COVID-19 pandemic. The financial support of low-rate loans worth 16 trillion won ($14.1 billion) had been scheduled to end this month, but the Bank of Korea (BOK) said the scheme will be put in place by September. Under the scheme, the BOK provides funds to local banks at an interest rate of 0.25 percent to encourage them to exte

March 25, 2021

BOK chief pens rosier forecasts for economy, downplays inflation

South Korea’s central bank chief said Wednesday that the nation’s economy could be expected to see a faster recovery from COVID-19 woes than anticipated in the bank’s previous forecast of 3 percent, while downplaying inflation risks that could stem from the rebound. In a nod toward the vaccination campaigns of major economies, which are picking up speed, Bank of Korea Gov. Lee Ju-yeol projected that Korea would see a faster-than-expected recovery of its exports and facility in

March 24, 2021

Tax agency launches probes into offshore tax evasion

South Korea’s tax agency said Wednesday that it has launched probes into 54 offshore tax evaders who enjoyed social benefits from the country without paying taxes here. The National Tax Service discovered 14 individuals with dual nationality who enjoyed health and welfare benefits but concealed their properties and earnings overseas to elude taxation, the agency said. Six foreign-affiliated firms were also caught for changing the form of their businesses to limited liability companies to

March 24, 2021

Insurers' profit up 13.9% in 2020 amid pandemic

The combined net profit of insurance firms in South Korea rose 13.9 percent on-year in 2020, due partly to fewer car accidents as people stayed home amid the coronavirus pandemic, data showed Wednesday. Life and non-life insurers saw their combined net profit increase by 742 billion won ($654 million) to 6.08 trillion won last year, according to data from the Financial Supervisory Service (FSS). The FSS said profits of non-life insurers went up because of fewer claims as losses in car insuranc

March 24, 2021

Population mobility falls at sharpest clip in 6 years in Feb.

The number of South Koreans who moved to different residences in the country declined at the sharpest pace in six years in February amid a housing supply shortage, data showed Wednesday. The number of people who changed their residences fell 9.6 percent on-year to 706,000 in February, according to the data compiled by Statistics Korea. It marked the biggest on-year decline for any February since a 12.5 percent fall in 2015. It also marked the second straight month of decline after population

March 24, 2021