Finance minister, BOK chief warn of 'one-sided' cash flow

South Korea's top economic policymaker and the chief of the central bank said Tuesday that more prudent risk management is necessary as much of the idle money is flowing into assets, such as property and stocks. "The financial market showed stability in the wake of the COVID-19 pandemic, but there are growing concerns over the growing gap between the real economy and the financial sector," Finance Minister Hong Nam-ki said in a message for the new year to financial firms. "More

Jan. 5, 2021

Seoul stocks open lower on virus concerns, profit-taking

South Korean stocks opened lower Tuesday, tracking overnight Wall Street losses over jitters from the coronavirus pandemic. The benchmark Korea Composite Stock Price Index (KOSPI) fell 2.28 points, or 0.08 percent, to 2,942.17 in the first 15 minutes of trading. Stocks got off to a muted start, with the global coronavirus infections exceeding 85 million and the new COVID-19 variant spreading concerns in major economies. Investors' desire for profits also increased after a five-session record-

Jan. 5, 2021

Spending on alcohol, tobacco hits record high in Q3 amid pandemic

South Koreans' spending on liquor and cigarettes reached an all-time high in the third quarter of 2020 amid the coronavirus outbreak, central bank data showed Tuesday. Local households spent 4.3 trillion won ($3.96 billion) on alcohol and cigarettes in the July-September period, up 6.2 percent from a year earlier, according to the data from the Bank of Korea. It represents the largest quarterly figure since 1970, when the central bank began tracking related data. The on-year increase is the h

Jan. 5, 2021

S. Korean builder sentiment falls in Dec. amid coronavirus resurgence

South Korean builders' business sentiment edged down in December from a month earlier due to a resurgence of coronavirus infections, a poll showed Monday. The construction business survey index (CBSI) came to 84.6 last month, down 0.7 point from the previous month, according to the survey by the Construction and Economy Research Institute of Korea. The December figure marks the first on-month drop in four months. The index rose for three months from September to November. A reading below 100

Jan. 4, 2021

S. Korea targets 3.2% growth, housing market stabilization in 2021

Finance Minister Hong Nam-ki on Monday reiterated the government’s commitment for economic growth of 3.2 percent this year and stressed its drive to stabilize soaring housing price at the same time. Urging ministry officials to prepare for structural changes in the post COVID-19 era, Hong vowed to make all-out efforts to achieve the target of a 3.2 percent economic growth and to create 150,000 additional jobs this year. “We must promote domestic consumption as much as possible un

Jan. 4, 2021

S. Korea's FTA networks set to further expand in 2021

South Korea's free trade deals may further increase this year in line with its efforts to revitalize its ailing pandemic-hit exports and cope with the growing protectionism around the globe, a trade promotion agency said Monday. South Korea and Britain implemented their bilateral FTA on Friday to maintain their trades regardless of London's departure from the European Union. Following the move, the country now has 17 free trade pacts that cover 56 countries around the globe. The free trade pa

Jan. 4, 2021

More efforts to be focused on stabilizing housing market this year: finance minister

Finance Minister Hong Nam-ki said Monday that the government will spare no efforts this year to stabilize housing prices that have been rising despite a series of measures to cool down the property market. The minister also said that policy efforts will be put into place to pull off a "fast and strong" economic recovery this year as Asia's fourth-largest economy faces growing uncertainties such as a resurgence in new coronavirus cases. "From the beginning of the new year, we wil

Jan. 4, 2021

S. Korea's wine imports hit new high in 2020 amid coronavirus outbreak

South Korea's wine imports soared to a record high in 2020 as more people enjoyed drinking and partied at home due to the coronavirus outbreak, government data showed Monday. South Korea imported $239 million worth of wines in the January-November period last year, much higher than the $204 million for the whole of 2019, according to the data by the Korea Customs Service. If the December numbers are included, last year's value of wine imports will far exceed the previous year's tally. Last ye

Jan. 4, 2021

S. Korea's exports fall 5.4% in 2020 on COVID-19 fallout

South Korea's exports decreased 5.4 percent in 2020 from the previous year amid the new coronavirus pandemic, data showed Friday, but the decline was partially cushioned by the latest recovery in the outbound shipments of chips.  Outbound shipments came to $512.8 billion last year, and imports moved down 7.2 percent on-year to $467.2 billion, resulting in a trade surplus of $45.6 billion in 2020, according to the data compiled by the Ministry of Trade, Industry and Energy. It marked the

Jan. 1, 2021

Lingering COVID-19 risks cloud S. Korea’s anticipated recovery in 2021

Despite heightened hopes that vaccinations would put an end to the still ongoing pandemic in the new year, the South Korean economy is expected to face another series of challenges, uncertainties and risks. The COVID-19 pandemic was the biggest threat to Asia’s fourth-largest economy last year, dragging down its GDP in the second quarter to minus 3.3 percent, the lowest since the 1997-98 Asian Financial Crisis when the country went through massive restructuring nationwide. Reflecting c

Dec. 31, 2020

Consumer prices grew 0.5 % in 2020

South Korea‘s consumer price inflation hovered below 1 percent this year for the second consecutive year, data showed Thursday. According to data by Statistics Korea, the consumer price index stood at 105.42 in 2020, up 0.5 percent from a year earlier. In 2019, the index rose 0.4 percent. Core inflation, which excludes volatile food and oil prices, grew 0.4 percent in 2020, the lowest since a 0.2 percent fall in 1999. It marks the first time annual inflation has stayed below 1 percent

Dec. 31, 2020

BOK chief to pay more attention to jobs in 2021 monetary policy

South Korea's central bank will pay more attention to jobs in its monetary policy next year, Bank of Korea (BOK) Gov. Lee Ju-yeol said Thursday, as the coronavirus pandemic has ravaged the labor market. The BOK will "take into consideration the employment situation as an important factor of decisions in guiding monetary policy," Lee said in his New Year's address. Lee's remarks came amid growing calls for the BOK to have legal responsibility for the job market's stability in an econo

Dec. 31, 2020

Insurers' financial health improves in Q3

South Korean insurance companies saw their financial health improve in the third quarter as more profits and share price gains bolstered capital, data showed Thursday. The risk-based capital (RBC) ratio of local insurance firms stood at 283.9 percent at end-September, up 7.5 percentage points from three months earlier, according to the data from the Financial Supervisory Service (FSS). Their RBC ratio rose for the second consecutive quarter in the July-September period on the back of greater e

Dec. 31, 2020

S. Korea's consumer prices grow less than 1% for 3rd month in Dec.

South Korea's consumer prices grew less than 1 percent for the third straight month in December, data showed Thursday, indicating low inflationary pressure in Asia's fourth-largest economy amid the new coronavirus outbreak. For the whole year, the annual inflation rose by less than 1 percent for the second consecutive year for the first time due largely to the fallout of the pandemic. The consumer price index rose 0.5 percent on-year in December, slowing from a 0.6 percent on-year gain the pre

Dec. 31, 2020

S. Korea-Britain FTA to be launched this week

South Korea and Britain plan to kick off their bilateral free trade agreement this week to maintain the continuity of trade activities in line with London's departure from the European Union, the trade ministry said Wednesday. South Korea has been closely monitoring London's divorce with the EU, as the separation would mean that its existing pact with the world's largest economic bloc will no longer be valid for Britain. To avoid a possible hard landing, South Korea and Britain signed a free t

Dec. 30, 2020

COVID-19 to worsen S. Korea’s falling birthrate, marriage rate

The COVID-19 pandemic is projected to add fuel to South Korea’s low birthrate, marriage rate and rapidly increase the nation’s aging population, the central bank said Wednesday. “The pandemic will have a negative impact on the nation’s marriage and birthrate, leading to an acceleration of aging in the population,” the Bank of Korea said in its regular report on economic issues. The total fertility rate for 2022 may even become lower than the Statistics Korea&rsq

Dec. 30, 2020

Food delivery order via bank apps to begin next year

South Korea’s top financial regulator said Wednesday it will clear regulatory hurdles in the new year to foster convergence between finance and new technologies. According to the Financial Services Commission’s key policy tasks for the financial sector in 2021, the authority will revise its financial regulatory system in July next year to allow local banks to operate nonfinancial services like food delivery via their mobile applications.  “Discussions and research are un

Dec. 30, 2020

Corporate direct financing dips 21% in Nov.

South Korea's corporate direct financing plunged nearly 21 percent in November from the previous month due to a sharp drop in stock sales and a seasonal factor, data showed Wednesday. Local companies raised a combined 16.3 trillion won ($14.9 billion) by selling stocks and bonds last month, down 21.3 percent from October, according to the data from the Financial Supervisory Service (FSS). Corporate stock sales sank 29.7 percent on-month to 871.3 billion won, with the value of initial public of

Dec. 30, 2020

Industrial output rises, but consumption falls for 2nd month in Nov.

South Korea's industrial output rose in November from a month earlier on improving exports, but consumption declined for the second straight month amid a resurgence in new coronavirus cases, data showed Wednesday. The nation's overall industrial production increased 0.7 percent in November from the previous month, compared with a 0.1 percent on-month fall in October, according to the data compiled by Statistics Korea. Compared with a year earlier, the industrial output fell 0.6 percent in Nove

Dec. 30, 2020

Number of high earners sharply rise: NTS

The number of employees with total paychecks exceeding 100 million won ($91,400) reached a record high of 852,000 in 2019, up some 50,000 from the previous year, data showed Tuesday. According to the National Tax Service, earners of over 100 million won accounted for 4.4 percent of the total 19.17 million salaried workers. An employee here earned 37.4 million won on average, before tax, last year, rising 2.7 percent, or 970,000 won, from 2018. Those who reported non-salary financial income

Dec. 29, 2020