Export slump extends to 6th month; chips cushion virus fallout

South Korea's exports extended their slump to a sixth month in August as the resurgence of the new coronavirus around the globe continued to strain business activities, data showed Tuesday. But the retreat was in the single digits on a recovery in shipments of chips. Outbound shipments came to $39.6 billion last month, down 9.9 percent from $44 billion posted a year earlier, according to the data compiled by the Ministry of Trade, Industry and Energy. The latest figures were slightly better t

Sept. 1, 2020

Industrial output inches up, consumption dips in July

South Korea’s industrial output inched up in July but consumption slipped as the COVID-19 pandemic continued and disaster relief funds were mostly exhausted by June, data showed Monday. The overall industrial production for July increased 0.1 percent from a month earlier, extending the on-month rise for two months straight but slowing from the 4.1 percent on-month gain observed in June, according to data compiled by Statistics Korea. The latest figure, however, was down 0.7 percent fr

Aug. 31, 2020

Authorities vow to bolster financial safety net for senior citizens

With the COVID-19 pandemic accelerating digitalization of the financial sector and magnifying risks for individual investors, financial authorities recently vowed to create a safe and friendly environment for senior citizens here. To help the elderly carry out smooth banking transactions, local lenders would be required to alert their customers when closing a brick-and-mortar branch with a high-proportion of senior customers, Deputy Prime Minister and Finance Minister Hong Nam-ki said during a

Aug. 31, 2020

NTS vows full-scale probe into tax-dodging allegations against multinational companies

South Korea’s tax agency recently launched a full-scale investigation targeting 21 multinational companies suspected of evading taxes here. It is the agency’s first major task under its new leadership. While the tax agency declined to name the companies, several online platform operators and luxury fashion houses appear to be among its targets, according to local industry sources. The list includes Netflix Korea, Facebook Korea and Germany-based Delivery Hero, which owns two deliv

Aug. 30, 2020

Fears mount over impact of stricter distancing on Korean economy

Strengthened rules on social distancing imposed in an utmost effort to curb the resurgence of COVID-19 may drag down South Korea’s real economy, including private consumption, industrial output and employment, experts said Sunday.  As cluster infections are tied to enclosed areas such as coffeehouses, restaurants and indoor fitness centers, the government has decided to extend the current Level 2 social distancing for one more week until Sept. 6 in Seoul and the surrounding area, w

Aug. 30, 2020

Yoo to visit Geneva as WTO begins selection process for new head

South Korea's trade minister, who is running to become the new head of the World Trade Organization (WTO), plans to visit Geneva this week as the international body begins the selection process for its next leader. Trade Minister Yoo Myung-hee will head to Switzerland on Monday as the WTO plans to launch the first round of the selection process on Sept. 7, according to the Ministry of Trade, Industry and Energy. During the first round, representatives from 164 member states will provide a ma

Aug. 30, 2020

S. Korea likely to cut key rate this year: Fitch Solutions

Fitch Solutions, the consultancy arm of global credit appraiser Fitch Group, forecast that South Korea will further cut its policy rate by the end of the year, extending economic stimulating efforts amid the prolonged COVID-19 crisis. “We now expect the Bank of Korea to undertake one more 25 basis point rate cut before end-2020 in order to continue providing support to the economy,” the company said in a release. “We have also revised down our forecast for consumer price inf

Aug. 29, 2020

Minister hints at fourth extra budget under new lockdown

South Korea is mulling another set of extra budget if the level of social distancing goes up a notch, enforcing a lockdown, according to the chief fiscal policymaker. “The rise in the coronavirus cases and implementation of stricter social distancing level would work as key variables in drafting the fourth extra budget,” Deputy Prime Minister and Finance Minister Hong Nam-ki said at a press briefing held Thursday. “If the situation reaches Level 3, then (the lockdown’s

Aug. 28, 2020

S. Korea may draw up 4th extra budget if distancing rules raised

SEJONG -- South Korea will review the need to draw up the fourth extra budget if the nation raises social distancing rules to the highest level amid a resurgence of the new coronavirus, Finance Minister Hong Nam-ki has said. Hong made the remarks at a meeting with reporters Thursday when he gave a briefing on next year's budget proposal. With daily virus infections surging to triple digits, South Korea raised the virus curbs to Level 2 in the three-tier system earlier this month, banning ind

Aug. 28, 2020

Korea to increase flexibility in parental leave system

South Korea’s Deputy Prime Minister and Finance Minister Hong Nam-ki said Thursday that the government will work to diversify the current parental leave system, allowing parents to split their leave period according to needs. “In order to respond to the decreasing number of productive age population, it is crucial that we should encourage everyone to participate in economic activities,” Hong said in a meeting of economy-related ministers held at Seoul Government Complex.

Aug. 27, 2020

Amid virus resurgence, BOK slashes S. Korea growth forecast to minus 1.3%

South Korea’s economy is forecast to see a sharper-than-expected contraction of 1.3 percent this year under the coronavirus pandemic, the central bank said Thursday, fueling concerns that this year may see one of the worst negative growth figures in decades. In May the Bank of Korea slashed the growth forecast from the previous minus 0.2 percent. The May revision sent shock waves across the nation, as it was previously expecting a 2.1 percent expansion since February. BOK Gov. Lee Ju-y

Aug. 27, 2020

BOK again trims growth outlook, stands pat amid growing

South Korea's central bank on Thursday again sharply lowered its growth outlook for the economy this year and froze its policy rate at a record low as uncertainties stemming from spiking virus cases heightened. The Bank of Korea (BOK) forecast a 1.3 percent contraction for Asia's fourth-largest economy in 2020 amid the deepening virus fallout, sharper than its estimate in May of a 0.2 percent retreat. "The recovery of domestic economic growth is likely to be slower than previously foreca

Aug. 27, 2020

S. Korea to draw up new measures to support low-income

SEJONG -- South Korea will draw up additional measures to support low-income people who are hit by a recent resurgence of the new coronavirus, Finance Minister Hong Nam-ki said Thursday. Hong made the remarks at a meeting with economy-related ministers amid growing worries that the resurgence could weaken the economy's recovery momentum. With the infections recently sharply growing, the government "will actively push for additional measures to cope with damages" for low-income and

Aug. 27, 2020

S. Korea to inject W20tr more into ‘New Deal’ budget

South Korea’s government and ruling party have agreed to allocate more than 20 trillion won ($16.85 billion) of the 2021 state budget to financing the “Korean New Deal” stimulus package, party officials said Wednesday. They also vowed to keep up the current expansionary fiscal policy tone throughout next year, bracing for a prolonged economic downturn. The decision came during a meeting held at the National Assembly between the government and the ruling Democratic Party o

Aug. 26, 2020

S. Korea, Indonesia eye broader ties to overcome pandemic fallout

South Korea and Indonesia on Wednesday agreed to expand their economic ties to overcome the economic fallout from the new coronavirus pandemic. Trade officials from Seoul and Jakarta held a two-day virtual meeting to discuss ways to bolster the two countries' economic ties and overcome economic jitters of the COVID-19 pandemic, according to the Ministry of Trade, Industry and Energy. During the meeting, the two countries vowed to expand cooperation in the e-commerce segment, which is especial

Aug. 26, 2020

Apartment prices in Seoul show signs of stabilizing: finance minister

Apartment prices in Seoul have shown signs of stabilizing since the government unveiled a set of measures to cool prices and supply more homes, Finance Minister Hong Nam-ki said Wednesday. Hong also vowed to take stern measures against speculative home transactions, saying that the government found a total 811 home transactions that might have violated laws. This month, apartment prices in Seoul largely remained flat, Hong said, citing data released by KB Kookmin Bank. Apartment prices in S

Aug. 26, 2020

[Green & New] Time for action on ‘Green New Deal’: EU envoy

The Korea Herald is publishing a series of articles to address the Moon Jae-in administration’s “Green New Deal” policy, one of the key pillars of the so-called “Korean New Deal” economic stimulus package. -- Ed. While giving momentum to its “Green New Deal,” the South Korean government should now strive to make tangible commitments in order to involve the private sector in green financing, according to a top representative of the European Union here

Aug. 25, 2020

Consumer sentiment improves, pessimism over housing market remains in August

South Korea’s consumer sentiment rose for the fourth consecutive month in August, boosted by optimism for economic improvement, but doubts that recent measures will cool the heated real estate market remained strong, data from the Bank of Korea showed Tuesday. The composite consumer sentiment index inched up 4 points on-month to 88.2 this month, hitting the highest since February, when the figure stood at 96.9, weighed on by the outbreak of the COVID-19. It has been slowly improving si

Aug. 25, 2020

[Economy in Pandemic] ‘Second wave’ of COVID-19 casts shadow on S. Korea’s growth scenario

With the second wave of COVID-19 outbreak fast approaching amid reinforced social distancing measures, pessimism is mounting once again on South Korea’s economic growth outlook this year. According to previously suggested scenarios by key global institutes and local think tanks, the country could see its economy contract as much as 2 percent. Some market watchers and the central bank, however, also warned against excessive fear and pessimism, claiming that the latest turnouts will not

Aug. 24, 2020

Finance minister hints at offering 2nd round of virus emergency handouts

Finance Minister Hong Nam-ki said Monday the government will review the need to provide a second round of emergency handouts if the recent resurgence of new coronavirus infections does not slow down. Hong told lawmakers that the government has not been having "in-depth discussions" over the possibility of offering a second round of emergency handouts. The government will make a decision on the matter as it is monitoring the resurgence's impact on the economy, Hong said. If the g

Aug. 24, 2020