Govt. seeks to submit extra budget bill in early March: finance minister

South Korea's finance minister said Tuesday the government is seeking to submit an extra budget bill in early March in a bid to provide targeted support to merchants and businesses hit hard by the pandemic. Finance Minister Hong Nam-ki said in a parliamentary session that the country is considering expanding the recipients of the fourth round of emergency relief funds, including to merchants whose yearly sales top 400 million won ($364,000). "We are reviewing ways to provide additional su

Feb. 16, 2021

Bond yields gather pace on hopes of economic recovery

Bond yields in South Korea are climbing at a fast pace on hopes of an economic recovery and more stimulus measures in major economies, analysts said Tuesday. The final offer rate on 10-year Treasurys came to an annual 1.871 percent on the local bond market Monday, the highest return in 21 months. The yield was close to levels months before the outbreak of the new coronavirus in South Korea in January last year. Rising bond yields means falling prices, which reflect investors' weaker appetite

Feb. 16, 2021

S. Korea's export prices up for 2nd month in January

South Korea's export prices rose in January, marking the second straight monthly gain, supported by a modest recovery in exports and a slight decline in the Korean currency's value against the US dollar, central bank data showed Tuesday. The country's export price index, in terms of the local currency, gained 1.8 percent in January from the previous month, according to the preliminary data from the Bank of Korea (BOK). The reading marked the second consecutive month of on-month rise. In Decemb

Feb. 16, 2021

S. Korea’s property tax-to-GDP 3rd highest among OECD nations: data

South Korea’s property tax rate compared with its gross domestic product was the third highest among 37 Organization for Economic Cooperation and Development members in 2018, data showed Monday. The data compiled by Rep. Yoo Gyeong-joon of the main opposition People Power Party came amid growing concerns that the Moon Jae-in administration’s set of real estate measures -- focused on tightening loan regulations and levying heavier taxes on multiple homeowners -- failed to cool down t

Feb. 15, 2021

S. Korea's auto exports jump 30% in January

South Korea's auto exports jumped 29.5 percent on year in January, as global demand showed signs of modest recovery from the coronavirus pandemic, data showed Monday. The nation's auto production and domestic sales rose 24.9 percent and 18.4 percent on year in January, respectively, according to the data from the Ministry of Trade, Industry and Energy. It was the first time since September last year that auto exports, output and domestic sales all gained. By region, exports to North America j

Feb. 15, 2021

S. Korea's exports jump 69% in first 10 days of Feb.

South Korea's exports jumped 69.1 percent on-year in the first 10 days of February on strong shipments of chips and autos amid the pandemic, customs data showed Monday. The country's outbound shipments stood at $18 billion in the Feb. 1-10 period, compared with $10.6 billion a year earlier, according to the data from the Korea Customs Service. Imports soared 71.9 percent on-year to $20.4 billion, resulting in a trade deficit of $2.46 billion, the data showed. By sector, outbound shipments of

Feb. 15, 2021

Restaurant's business confidence hits nadir in Q4

South Korean restaurants' business sentiment sank to an all-time low in the fourth quarter of 2020 amid a surge in COVID-19 infections in the country, a state food distribution firm said Monday. The business survey index for the country's restaurant industry came to 59.33 for the October-December period, according to the Korea Agro-Fisheries & Food Trade Corp. It was the lowest quarterly tally since the state-run company began compiling the index in 2011. The fourth-quarter number was low

Feb. 15, 2021

S. Korea's online food market grows explosively in 2020 amid pandemic

South Korea's consumer prices grew at the fastest pace in 10 years in 2021 due to surging energy costs and high prices of farm products, data showed Friday, indicating a build-up in inflationary pressure for Asia's fourth-largest economy. Consumer prices rose 2.5 percent this year from a year earlier, accelerating from a 0.5 percent on-year gain in 2020, according to the data compiled by Statistics Korea. It marked the steepest on-year rise since 2011, when consumer inflation spiked 4 percent.

Feb. 15, 2021

Recovery of pandemic-hit labor market tipped to be modest: BOK

South Korea's job market is expected to recover modestly from the coronavirus pandemic as it will take more time for the number of people employed to recover to a pre-crisis level than to decline, according to a recent report by the Bank of Korea (BOK). South Korea has rolled out about 280 trillion won ($251 billion) worth of stimulus measures to cushion the impact of the pandemic, but companies have hired fewer workers than expected amid persistent uncertainties over the global health crisis.

Feb. 14, 2021

Over half of S. Koreans in favor of tax hike on high earners: poll

More than half of South Koreans are in favor of raising taxes for high income earners to mitigate the polarization that has deepened during the pandemic, a poll showed Sunday. In the survey of 1,000 South Koreans aged 18 or older conducted last week, 57.4 percent of respondents agreed to a tax hike on high earners in the face of a widening income gap, while 39.3 percent disagreed, according to Realmeter. Nearly 83 percent of the respondents said the polarization has worsened during the COVID-1

Feb. 14, 2021

Household saving rate likely to rise in pandemic-hit economy: BOK

South Korea's household saving rate is likely to rise if a pandemic-hit economic crisis persists, in a potential move that could delay a recovery in consumption, a research note from the Bank of Korea (BOK) showed. The yearlong coronavirus pandemic has prompted consumers in South Korea to curb spending, mainly due to stricter social distancing measures, and stockpile cash. "It is true that the higher domestic household saving rate this year is mainly attributable to a contraction in spend

Feb. 14, 2021

Trade mediation agency resolves disputes worth W121b last year

South Korea's trade mediation agency said Sunday it resolved 120.7 billion won ($108.4 million) worth of unfair contracts through arbitration last year. The Korea Fair Trade Mediation Agency said it mediated 1,308 cases of unfair trade, subcontract work, franchise operation and retail business last year. Through the agency's dispute settlement, smaller firms received compensation of 109.1 billion won last year. When taking saved litigation costs into account, the value topped 120 billion won,

Feb. 14, 2021

S. Korea logs $24.8b trade surplus with US in 2020

South Korea logged a $24.82 billion trade surplus with the United States last year, up 18.5 percent from the previous year, according to data compiled by the US Department of Commerce on Sunday. The country's shipments to the world's largest economy fell 1.9 percent on-year to $76.01 billion, while its imports dropped 9.4 percent to $51.21 billion over the cited period, the data showed. South Korea was the US's 7th largest trading partner last year in terms of both exports and imports, the dat

Feb. 14, 2021

S. Korea’s central bank faces key changes to role in digital era

The upheavals brought by the COVID-19 pandemic have hastened the challenges faced by South Korea’s central bank, from digital transformation to demand for its bigger role to strive for employment stability in carrying out monetary policies. With the quickly changing economic and financial landscape, central banks around the world are scurrying to digitalize themselves. The People’s Bank of China recently entered the final stages of its own digital currency development and other cent

Feb. 13, 2021

Parcel volume rises 21% in 2020 amid pandemic

The parcel volume in South Korea rose 21 percent last year from a year earlier as more people shifted to online shopping amid the COVID-19 pandemic, government data showed Saturday.    A total of 3.37 billion parcels were delivered in the nation by 18 logistics companies in 2020, surpassing 3 billion for the first time, according to the data by the Ministry of Land, Infrastructure and Transport.     The parcel volume exceeded 2 billion in 2016 and had posted around

Feb. 13, 2021

Banks' household loan growth quickens in January

South Korean banks' household loans continued to grow at a faster pace in January, driven by the strong growth of mortgage loans, central bank data showed Wednesday. The value of outstanding bank loans to local households came to 996.4 trillion won ($892.8 billion) as of end-January, up 7.6 trillion won from the previous month, according to the data from the Bank of Korea (BOK). The January reading compares to a 6.7 trillion-won gain in December last year. The BOK said the rise in lending was

Feb. 10, 2021

Regulator OKs taxi-hailing joint venture with Uber

South Korea's corporate watchdog said Wednesday it has approved a move by SK Telecom Co.'s mobility spinoff to launch a taxi-hailing joint venture with Uber Technologies Inc. T Map Mobility, wholly owned by SK Telecom, the country's biggest mobile carrier, plans to set up a taxi-hailing joint venture with US ride-hailing company Uber in April, as it seeks to strengthen its business in the connected mobility sector. The Korea Fair Trade Commission (KFTC) said it has given the green light to the

Feb. 10, 2021

Sales of high-risk DLS dip 31% in H1 of 2020

The issuance of high-risk derivatives-linked securities (DLS) in South Korea plunged 31 percent in the first half of 2020 amid the fallout from a misselling scandal, data showed Wednesday. The local market for DLS, which doesn't guarantee the principal, came to 12.7 trillion won ($11.4 billion) as of end-June last year, compared with 16.1 trillion won six months earlier, according to the data from the Financial Supervisory Service. A DLS tracks the performance of interest rates, currency value

Feb. 10, 2021

BOK injects W4.75tr into financial sector ahead of holiday

South Korea's central bank said Wednesday it has provided a net 4.75 trillion won ($4.25 billion) in liquidity to the financial sector to help the flow of money ahead of the Lunar New Year holiday. The Bank of Korea (BOK) said it decreased its money injection by 15.7 percent this year from a year earlier because of social distancing rules amid the coronavirus pandemic. Health authorities have called on people to refrain from traveling for family gatherings to contain the spread of the virus. A

Feb. 10, 2021

Job loss largest in over 2 decades in January amid pandemic

South Korea reported the largest job loss in January since 1998 as a flare-up in new coronavirus cases, along with continued virus curbs, dealt a heavy blow to jobs in the service sector, data showed Wednesday. The number of employed people reached 25.8 million last month, 982,000 fewer than a year earlier, according to the data compiled by Statistics Korea. It marked the sharpest on-year fall since December 1998, when the country lost 1.28 million jobs in the wake of the 1997-98 Asian financi

Feb. 10, 2021