Job losses extend into Sept. amid pandemic, unemployment rate rises to 3.6%

SEJONG-- South Korea lost about 392,000 jobs in September, marking a decline in the number of the employed for the seventh consecutive month, as the coronavirus pandemic hammered job markets, data showed Friday. The country's jobless rate rose by 0.5 percentage point on-year to 3.6 percent in September, with the number of employed people falling to 27.01 million, according to the data compiled by Statistics Korea. It marked the longest fall since the eight months of decline posted in 2009 ami

Oct. 16, 2020

Economic powder keg remains despite Korea's virus containment: S&P

Despite the containment of the coronavirus pandemic nationwide, South Korea, Asia’s fourth-largest economy, is still sitting on an economic powder keg, high-ranking officials of credit rating agency S&P Global Ratings said Thursday. While Korea and other Asia-Pacific economies are seeing a relatively swift recovery from the COVID-19 pandemic thanks to timely policies and boosted trade, they appear to be far off from pre-COVID levels, Shaun Roache, chief Asia-Pacific economist at S&am

Oct. 15, 2020

[News Focus] Seoul housing prices climb 18% in a year

SEJONG -- The cost of housing in Seoul, including apartments, climbed 18.8 percent over the past year, while high-ranking officials continued to argue that the real estate market would stabilize on the back of “anti-speculation” measures from the government. According to KB Kookmin Bank, the average price of housing in the capital came to 32.73 million won ($28,500) per 3.3 square meters as of Oct. 9, up 5.18 million won from 27.55 million won on Sept. 27, 2019. This indicates tha

Oct. 15, 2020

S. Korean economy to perform well over next 2 years, but still in deep recession: S&P

The South Korean economy is expected to fare better than other countries over the next two years, but it will be in a deep recession amid the coronavirus pandemic, an economist at ratings agency S&P Global Ratings said Thursday. Shaun Roache, chief economist on the Asia-Pacific region at S&P, said South Korea's central bank is expected to keep its policy rate low at least throughout 2023 to prop up the economic recovery. "Korea is one of the best performing economies in the world.

Oct. 15, 2020

Banks' loan delinquency rate edges up in Aug.

The delinquency rate for South Korean banks' won-denominated loans inched higher in August from the prior month but remained stable, the financial watchdog said Thursday. The rate for bank loans more than 30 days overdue stood at 0.38 percent at the end of August, up 0.02 percentage point from July, according the Financial Supervisory Service (FSS). Compared with a year earlier, however, the bank loan delinquency rate was down 0.13 percentage point. "Despite a slight on-month increase, b

Oct. 15, 2020

No. of elderly people to reach 30% of population in 2035

SEJONG -- The number of people aged 65 or older in South Korea is expected to account for 30 percent of the population in 2035, a report showed Thursday, highlighting concerns that the fast-aging demographic transition could pose a drag on the country's economy. According to the report by Statistics Korea, the number of people aged 65 or older stood at 8.03 million this year, accounting for 16.1 percent of the nation's population. The South Korean population is projected to peak in 2028 before

Oct. 15, 2020

S. Korea's money supply continues to grow fast in Aug.

South Korea's money supply continued to grow at a fast clip in August as household and corporate lending grew amid a long streak of low rates and the new coronavirus pandemic, central bank data showed Thursday. The country's M2 stood at 3,101.6 trillion won ($2.71 trillion) as of end-August, up 9.5 percent from a year earlier, according to preliminary data from the Bank of Korea (BOK). It decelerated from a 10 percent on-year gain in July when the money supply grew at the fastest pace in nearl

Oct. 15, 2020

Foreigners extend net sale of S. Korean securities funds for 2nd month in Sept.

Foreign investors extended a net sale of South Korean securities funds for the second straight month in September, led by an expansion in net offloading of stock funds, the central bank said Thursday. Foreigners offloaded a net $2.09 billion worth of local stocks and bonds last month, larger than a net sale of $220 million in August, according to the Bank of Korea (BOK). Foreign investors sold a net $2.08 billion worth of stocks last month on a one-off factor, higher than a net sale of $890 mi

Oct. 15, 2020

ICT exports rise for 4th straight month on chips and displays in Sept.

South Korea's outbound shipments of information and communication technology (ICT) products rose 11.9 percent on-year in September, data showed Thursday, as global demand for semiconductors picked up amid the pandemic. Exports of ICT products stood at $17.63 billion last month, according to data compiled by the Ministry of Science and ICT, marking an on-year rise in exports for the fourth consecutive month. Meanwhile, imports of ICT products reached $9.56 billion in September, up 9 percent ove

Oct. 15, 2020

S. Korea says G-20 debt relief to help poor nations achieve economic recovery

SEJONG -- An extension of debt relief programs by the Group of 20 major economies will help low-income nations achieve their economic recovery from the coronavirus pandemic, South Korea's finance minister has said. Finance Minister Hong Nam-ki and his counterparts of G-20 finance ministers agreed to extend the debt relief programs by another six months during their virtual meeting Wednesday. Under the Debt Service Suspension Initiative (DSSI), the G-20 gave debt relief to poor nations in Apri

Oct. 15, 2020

Virus-hit S. Korean exporters pining hopes on ASEAN, China: poll

Nearly half of South Korean exporting companies expect Southeast Asian and Chinese markets to spearhead a recovery in their exports down the road, a poll showed Thursday. According to the survey of 1,051 local exporters, 25.2 percent of the respondents said trade conditions in the Association of Southeast Asian Nations (ASEAN) will improve the most among overseas markets in the fourth quarter of the year and thereafter. ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the

Oct. 15, 2020

S. Korea to lower market threshold for newlyweds, first-time homebuyers

South Korea will alleviate the requirements to qualify for housing subscriptions, in a move to lower the market entry barrier for young non-homeowners, Deputy Prime Minister and Finance Minister Hong Nam-ki said Wednesday. The government expects that the revised set of rules will allow up to 92 percent of newlyweds and first-time homebuyers to apply for newly built houses. “(The government) will seek to further alleviate the income rule in the special housing supply for first-time bu

Oct. 14, 2020

Korean Air extends paid leave until December on pandemic

Korean Air Lines Co., South Korea's biggest carrier, said Wednesday it will have 70 percent of its employees go on unpaid leave until December due to the prolonged coronavirus impact on the airline industry. In April, the national flag carrier had 70 percent of its 18,000-strong workforce take paid leave for six months through Oct. 15 as part of self-help measures to overcome the unprecedented virus crisis.  With no end in sight for the COVID-19 pandemic, Korean Air has decided to exten

Oct. 14, 2020

High-income earners dodge national pension subscription

The amount of national pension premiums unpaid by high income-earners in South Korea totaled nearly 1 trillion won ($871 million) as of June this year, data showed Wednesday. According to a report from the National Pension Service submitted to the ruling Democratic Party Rep. Jung Choun-sook, a total of 198,399 high earners left their subscription fees to the state-run pension program unpaid, up around 20,000 from six months earlier. Of the accumulated amount, only 6.5 percent, or 71.33 billi

Oct. 14, 2020

BOK keeps interest rate unchanged

South Korea’s central bank on Wednesday kept its benchmark interest rate anchored near 0.5 percent, hinting that it is treading cautious steps not to further aggravate the nation’s loan and housing markets, amid the coronavirus pandemic. The Bank of Korea’s seven-member monetary policy board unanimously voted to hold the base rate at a record low rate, maintaining the decision it had made in late May. The board slashed the rate by a whopping 0.5 of a percentage point to 0.75

Oct. 14, 2020

S. Korea continues efforts to stabilize FX markets

SEJONG -- South Korea's vice finance minister said Wednesday that the government has continued efforts to stabilize foreign exchange markets, citing the "relatively speedy" strength of the Korean currency against the US dollar. Vice Finance Minister Kim Yong-beom made the remarks at a policy meeting, as the won has been recently trading at a level of 1,140 won against the US dollar, compared with a level of 1,180 won in mid-September. "The won's strength appears to be relative

Oct. 14, 2020

S. Korea to hold population census this week amid pandemic

SEJONG -- South Korea will hold a national census this week, the statistics agency said Wednesday, amid the coronavirus pandemic. Statistics Korea asked people to use mobile phones, fixed-line telephones and computers to register their personal, family and other information in a move to stop the spread of COVID-19. The agency said about 27,000 census workers will carry out door-to-door visits from Nov. 1 to Nov. 18 for those who fail to respond to the non-contact survey from Oct. 15 to 31. So

Oct. 14, 2020

BOK freezes key rate amid virus fallout and growing household debt

South Korea's central bank froze its key interest rate at a record low Wednesday amid heightened economic uncertainties over the protracted coronavirus outbreak and rising housing prices. The Bank of Korea (BOK) also voiced concerns about the fast growth of household debt as asset markets, such as the housing market, could become unstable due to excessive household loans. In a unanimous decision, the BOK's monetary policy board kept steady the benchmark seven-day repo rate, called the base rat

Oct. 14, 2020

S. Korea seeks to supply more homes to newlyweds, first-time homebuyers

SEJONG -- South Korea plans to supply more homes to newlyweds and first-time homebuyers through public and private development projects, Finance Minister Hong Nam-ki said Wednesday. About 92 percent of newlyweds and first-time homebuyers will be eligible to purchase housing units as the government plans to ease some rules for them, Hong said in a meeting with property-related ministers. Currently, the government requires public and private construction firms to sell a certain amount of new h

Oct. 14, 2020

IMF slightly upgrades S. Korea's growth forecast for this year

  The International Monetary Fund said Tuesday that South Korea's economy will shrink 1.9 percent this year as the coronavirus pandemic ravaged exports and consumption. The IMF's latest forecast represented a slight upgrade from its previous prediction of 2.1 percent contraction in June. The IMF also painted a somewhat brighter picture of the global economy as advanced nations reopened their economies, although the pandemic has showed no signs of weakening. The global economy is expect

Oct. 13, 2020