BOK to sharply lower economic growth outlook over spiking virus cases: chief

South Korea's central bank will sharply lower its economic growth outlook for this year, as downside economic risks have heightened amid a flare-up in virus cases, its chief said Monday. Bank of Korea (BOK) Gov. Lee Ju-yeol presented the grim prospect for Asia's fourth-largest economy, saying that the pace of economic recovery is expected to remain weak on spiking virus cases. "In May, the BOK's growth projection was a 0.2 percent contraction. But I think we will have to sharply lower th

Aug. 24, 2020

S. Korea's net foreign assets contract in Q2

South Korea's net external assets in debt instruments shrank in the second quarter, according to government data on Saturday, with its external assets growing at a slower pace than its external debt. The nation's net external assets in debt instruments, which are considered reserve assets, stood at US$449.8 billion at the end of June, compared with $464.2 billion three months earlier, according to the data from the finance ministry. The figure refers to the difference between Korea's total ex

Aug. 22, 2020

S. Korea to continue financial aid for cash-strapped small biz amid COVID-19 resurgence

In response to a deepening economic slump due to the recent resurgence of COVID-19 cases, South Korea on Thursday said it will keep providing financial lifelines for coronavirus-hit small business owners. “Due to a second wave of the coronavirus pandemic, a growing number of small business owners are likely to be in need of cash despite the government’s initial support programs,” Kim Yong-beom, first vice minister of finance, said in a meeting with related officials held at

Aug. 21, 2020

S. Korea to set aside W20tr of 2021 budget for ‘New Deal’

South Korea has decided to set aside 20 trillion won ($16.8 billion) from next year’s budget to finance its “New Deal,” a policy package designed to boost the economy in the post-coronavirus era through digital transformation, the finance minister said Thursday. It also vowed to establish and operate an exclusive fund worth 400 billion won until 2024 to back up digital and tech startups. “Full execution of the 4.8 trillion won fund from the third supplementary budget wi

Aug. 20, 2020

S. Korea to share economic progress with global community

South Korea will share its 20-year economic development history of overcoming the middle-income trap, government officials said Thursday. According to the Ministry of Economy and Finance, the World Bank Korea office and state-run Korea Development Institute will publish a collaborative research paper titled “Korea: Connecting Innovation and Technology to Development” early next year.  The move came as the World Bank Group has requested the Korean government to share its hist

Aug. 20, 2020

[News Focus] Since 2017, nearly 70 percent spike seen at some Gangnam apartments

SEJONG -- Some apartment complexes in Seoul were found to have renewed all-time high prices despite the measures introduced by the government on June 17 to cool the market. The record-breaking prices are have risen particularly in the wealthy Gangnam area, which comprises Gangnam-gu and Seocho-gu, two of the 25 administrative districts in Seoul. According to the data held by the Land Ministry, an 84-square-meter apartment in the Acro Riverpark complex in Banpo-dong, Seocho-gu, traded at 3.57

Aug. 20, 2020

FSC pushes banks to sustain financial support for virus-hit market

South Korean authorities Wednesday urged banking circles to sustain their financial situation amid the prolonged epidemic crisis. “We should learn from the 2008 global financial crisis that individual actions by financial companies may affect the entire economic system,” Sohn Byung-doo, vice chairman of the regulator Financial Services Commission, said in a financial risk management meeting held at the Korea Federation of Banks in central Seoul. During an economic downturn, the

Aug. 19, 2020

S. Korea needs to tread carefully with monetary policy in post-virus era: experts

To quell the market volatility that the coronavirus has caused, South Korea’s monetary policymakers took a number of steps -- some expected and others unprecedented -- to funnel liquidity and cushion the effects of the pandemic.  But while the market may have dodged a bullet, experts warn that Korea needs to be cautious about monetary policy from now on, considering the potential adverse effects of quantitative easing. “The benefits of the use of QE in other countries in the

Aug. 19, 2020

[Green & New] ‘Green deal’s success depends on private sector engagement’

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. The COVID-19 crisis, as devastating as it is for the world today, has also served as a reminder for the global community to foster sustainable growth and build resilient economies. For the World Bank, which supports countries in the East Asia and Pacif

Aug. 18, 2020

New COVID-19 lockdowns to add to economic burden on S. Koreans: BOK

The number of new coronavirus cases has surged sharply in recent days, feeding concerns about another round of lockdowns here, and the nation’s central bank said Wednesday that most South Koreans are likely to suffer economically if heavy restrictions are put in place once again. “If lockdown and social distancing measures are strictly enforced due to the resurgence of the virus, nonessential workers without the option of remote working will be extremely vulnerable to losing their

Aug. 18, 2020

[News Focus] Korea behind Japan, Russia in Q2 employment

SEJONG -- South Korea lagged behind Japan, Russia and some Western countries this year in terms of employment among working-age people. According to the Organization for Economic Cooperation and Development, Korea posted a 65.4 percent employment rate for those aged 15-64 during the April-June period of 2020. In contrast, Japan -- also an OECD member -- saw the employment rate for its working-age population reach 77 percent over the corresponding period, though the country was also hit hard b

Aug. 17, 2020

[67th Anniversary Special] Reshaping Korean economy in post-virus era

South Korea’s early response to the current pandemic crisis effectively contained its spread, minimizing economic damages in the first half, offering a rosy outlook. On Tuesday, the Organization for Economic Cooperation and Development lifted the country’s growth forecast this year to minus 0.8 percent from the previous minus 1.2 percent, propelling the country to No. 1 in terms of slowdown among member states. Highlighting the resilience of the Asia’s fourth-largest econom

Aug. 16, 2020

Finance minister rules out 4th extra budget

South Korea's finance minister on Friday ruled out the possibility of a fourth extra budget as he held out the prospect of economic growth in the third quarter. "We can fully cover the costs of recovering from heavy rains through such measures as reserve fund without an extra budget," Hong Nam-ki said in a meeting with reporters from foreign media outlets at the government complex in the central city of Sejong. The government's reserve fund is currently worth about 2.6 trillion won

Aug. 14, 2020

Consumption keeps improving amid signs of easing export slump: finance ministry

South Korea's consumption continues to improve amid signs of a slump in exports and industrial production easing, the finance ministry said Friday. In a monthly economic report, called the Green Book, the Ministry of Economy and Finance also flagged the economy's continuing uncertainty stemming from the coronavirus pandemic and the annual monsoon season. "South Korea's indicators of domestic demand continue to take a turn for the better, despite uncertainty related to COVID-19 and the ra

Aug. 14, 2020

S. Korea vows to shore up services sector amid sluggish job market outlook

The South Korean government announced Thursday it will create at least 50 new job categories in the upcoming years, while providing necessary legal and fiscal support to tide over the worsening employment situation. It also pledged to inject 4.6 trillion won ($3.89 billion) into export-oriented service industries and adjust the government’s fiscal support regulations which have been focused on the manufacturing sector. “We hope to raise the country’s service sector export

Aug. 13, 2020

[Green & New] Financial circles rush to keep pace with ‘Green New Deal’

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. “Green” has fast risen as the new buzzword for South Korea’s financial players as they strive to adapt to the Moon Jae-in administration’s “Green New Deal” initiative. They are striving to move away from thermal pow

Aug. 12, 2020

S. Korea to ban 'backdoor online advertising' from Sept.

South Korea will ban social media influencers from pitching a new product or service on their online platforms without disclosing their business ties with corporate sponsors, officials said Wednesday. The move comes amid controversy over some famous social media influencers' involvement in the shady practice called "backdoor online advertising." The Fair Trade Commission (FTC), the country's antitrust watchdog, said its revised advertising guidelines for social media platforms will

Aug. 12, 2020

Korea's gold market turnover hits record high in July

The daily turnover of South Korea's gold market hit a record high in July amid a surge in trade in the precious metal, the local exchange said Wednesday. The market's daily turnover averaged 13.1 billion won ($11.1 million) in July, more than double the amount of 5.2 billion won the previous month, according to the Korea Exchange (KRX). It marks the largest-ever turnover since March 2014, when the KRX gold market opened, and far exceeds the previous record of 9.7 billion won set in August 201

Aug. 12, 2020

S. Korean trade minister promotes campaign pledges as new WTO head online

South Korean Trade Minister Yoo Myung-hee, a candidate for the next head of the World Trade Organization (WTO), has accelerated her online electioneering as the new coronavirus pandemic has limited face-to-face campaigning. "I want to rebuild trust in the multilateral trading system by making it more relevant, resilient and responsive," Yoo posted on her Twitter account, while sharing other visions and campaign pledges. The South Korean candidate recently opened up her official webs

Aug. 12, 2020