Producer price index falls for third consecutive month in April

South Korea’s producer price index, which serves as a yardstick for inflation, slipped 0.7 percent on-month in April, extending its decline for the third consecutive month, data from the central bank showed Thursday. The index, which reflects how domestic producers receive price changes regarding their outputs, came to 102.08 last month, which fell from the corresponding and revised figure of 102.82 in March. The figure slipped 1.5 percent on-year. The Bank of Korea said that the index

May 21, 2020

S. Korea should enhance protection for local industries amid ‘global investment protectionism’: KIEP

While the global market dwindled and corporate assets depreciated amid the COVID-19 pandemic, the limited range and number of companies and assets with growth momentum have gained popularity from investors across borders. In order to keep the balance between economic revitalization and protection of “strategic business assets,” policymakers should raise the threshold for aspiring foreign investors here, according to a state-affiliated think tank. “The preliminary screening pr

May 21, 2020

Household income grows, but wealth gap widens in Q1

SEJONG -- South Korea's household income rose in the first quarter from a year earlier, but the income gap between the haves and have-nots widened, as the employment situation of the low-income bracket worsened amid the coronavirus pandemic, a report showed Thursday. The average household earned 5.35 million won ($4,357) per month in the first quarter, up 3.7 percent from the previous year, according to the report by Statistics Korea. Household income earned through wages rose 1.8 percent on

May 21, 2020

W3.5tr post-pandemic recovery plan aims to create at least 550,000 jobs

South Korea’s government vowed Wednesday to swiftly create at least 550,000 new jobs in the public sector as soon as it secures an additional budget of 3.5 trillion won ($2.8 billion). The move came in line with the country’s efforts to brace for economic recovery after the ongoing COVID-19 pandemic. “It is now time to gear up for economic recovery, while maintaining thorough everyday quarantine rules,” said Deputy Prime Minister and Finance Minister Hong Nam-ki in a me

May 20, 2020

Corporate tax revenue to fall in 2020 for first time in 6 years: think tank

  South Korea's corporate tax revenue is expected to decline this year for the first time in six years due to the coronavirus impact on major industries, a local think tank said Wednesday. The country's corporate tax revenue rose in the past five years to 72 trillion won ($59 billion) in 2019 from 45 trillion won in 2015, according to the Korea Economic Research Institute (KERI). This year, however, corporate tax revenue could reach an estimated 56.5 trillion won, 12 percent lower than

May 20, 2020

FX deposits hit 4-month high in April amid volatility

Foreign currency deposits at banks in South Korea reached a four-month high in April, central bank data showed Wednesday, amid market fluctuations caused by the new coronavirus outbreak. Foreign currency deposits here came to $78.18 billion as of end-April, up $2.89 billion from a month earlier, according to the data from the Bank of Korea (BOK). The reading marks the highest since $79.94 billion tallied at end-December. The monthly increase, however, marks a sharp slowdown from a $6.78 billi

May 20, 2020

Service output dips in Q1 over virus pandemic

SEJONG -- Service output declined in 14 provinces and cities in South Korea in the first quarter of this year as the coronavirus pandemic took a heavy toll on the service industry, data showed Wednesday. However, service output in Seoul -- home to one-fifth of South Korea's 51 million-strong population -- rose 2.3 percent on-year in the first quarter, helped by robust gains in the financial and property sectors, Statistics Korea said in a report. The southern res

May 20, 2020

Q1 household debt growth slowest in 1 year due to virus outbreak

South Korea's household debt grew at the slowest pace in one year in the first quarter, central bank data showed Wednesday, amid a sharp decline in spending apparently caused by the new coronavirus outbreak that is expected to hurt the whole economy. Outstanding household credit came to 1,611.3 trillion won ($1.31 trillion) as of the end of March, up 11 trillion won from a revised 1,600.2 trillion won tallied three months earlier, according to preliminary data from the Bank of Korea (BOK). Th

May 20, 2020

S. Korean economy will expand 0.2% in 2020, 3.9% in 2021: KDI

As the global economy marks a sharp decline amid the persisting COVID-19 pandemic, South Korea will see its economy expand 0.2 percent this year before rebounding to 3.9 percent growth level next year, according to a state-affiliated think tank. But this modest figure, which is higher than the outlook suggested by other international institutions and private think tanks, is anticipated to face challenges down the road due to global economic uncertainties. “Our economy will grow 0.2 per

May 20, 2020

S. Korea to step up efforts for post-pandemic economic recovery

SEJONG -- South Korea will step up efforts for an economic recovery after the coronavirus pandemic as the nation is returning to normal activities, Finance Minister Hong Nam-ki said Wednesday. Hong made the remarks at a meeting with economy-related ministers as schools reopened for high school seniors, about 80 days later than the original semester start day of March 2. Unlike other nations, South Korea has not enforced lockdown measures to combat the virus. Instead, the nation implemented

May 20, 2020

S. Korea to drastically ease rules for stalled local liquor industry

South Korea plans to alleviate liquor regulations to assist struggling manufacturers and distributors, officials said Tuesday. 　 The new rules, if approved by the National Assembly, will allow alcoholic drink companies to partly consign their production to original equipment manufacturers and also to produce non-alcoholic by-products at their facilities. When it comes to minor changes in products, the current approval process would be replaced by a simple reporting requirement for efficiency. 　

May 19, 2020

Home transactions dip over 30% in April amid slump, virus fallout

SEJONG -- Home transactions in South Korea sank more than 30 percent in April from the prior month due to tougher property rules and the coronavirus impact, government data showed Tuesday. The number of homes changing hands nationwide stood at 73,531 last month, down 32.3 percent from the previous month, according to the data from the Ministry of Land, Infrastructure and Transport. Yet the figure was up roughly 29 percent from the same month a year earlier, when housing transactions were ane

May 19, 2020

S. Korea develops ASF test kits

South Korea said Tuesday it has developed a new test kit for the African swine fever (ASF) that can pave the way for the country to speed up its battle against the fatal animal disease and reduce its dependency on imported tools. The state-run Animal and Plant Quarantine Agency has completed the development of a kit that can test acute forms of ASF, under the cooperation with the Korea Research Institute of Bioscience & Biotechnology and Korea University. The country, which has been depen

May 19, 2020

Global TV market sinks 16% in Q1 on virus impact

The global TV market shrank nearly 16 percent in the first quarter of the year due to the coronavirus pandemic, with only South Korean makers reporting slight growth, a market tracker said Tuesday. Worldwide TV shipments stood at 43.29 million units in the January-March period, down 16.4 percent from a year earlier, according to Omdia, formerly IHS Markit. TCL and other Chinese TV manufacturers saw their sales dip 14.4 percent to 15.13 million, with those of Sony and other Japanese players tu

May 19, 2020

S. Korea to provide $53m to Latin America in coronavirus-related ODA

South Korea will deliver a combined $53 million to Central and South American countries to help them deal with COVID-19, as part of efforts to promote the country’s esteemed quarantine model globally, officials said Monday. The Ministry of Economy and Finance has decided to deliver $50 million to Paraguay in the form of joint financing between the Inter-American Development Bank and the Economic Development Cooperation Fund. Established in 1959, the IDB is the largest source of develo

May 18, 2020

Offline applications begin for virus relief fund

The application process for the government's emergency fund to ease economic pain from the novel coronavirus became available offline Monday morning. Applicants can now visit community service centers or banks to apply for the money regardless of the forms of the state aid, be it credit or debit card points, regional gift certificates or prepaid cards. For the last week, only online applications were allowed. Those who apply for the last two forms of the payment can get them immediately on-si

May 18, 2020

Food makers enjoy two-digit profit hike amid social distancing

South Korean giant food manufacturers boasted two-digit profit growth in the first three months of this year on brisk demand for instant home meal products amid coronavirus-led social distancing, data showed Monday. In the January-March period, earnings of food conglomerate CJ Cheiljedang Corp. were 28 percent higher than brokerages' consensus. The company's operating profit jumped 54.1 percent on-year to 275.9 billion won ($223.9 million), according to its regulatory filing. Sales increased

May 18, 2020

Authorities slash subsidies for foreign banks over ‘passive’ approach toward low-rate lending program

South Korea’s financial authorities have slashed government subsidies for foreign banks that they view as “passive” toward the need to support small businesses hit by COVID-19, officials said Sunday. The amounts withheld from foreign banks will be reallocated to five major local lenders to maximize the availability of state-funded low-rate loans for cash-strapped business owner-operators. Starting Monday, seven major banks here are accepting loan applications from owner-oper

May 17, 2020

OECD leading index for S. Korean economy edges up in April

A leading economic index for South Korea inched up in April, with Asia's fourth-largest economy being the only country among OECD member states to see such a trend, data showed Sunday. The composite leading indicator (CLI) of economic activity for South Korea stood at 99.9 last month, up 0.1 percentage point from the previous month, marking the rise for eighth consecutive month, according to the data from the Organization for Economic Cooperation and Development (OECD). A reading below 100 me

May 17, 2020

[News Focus] De facto jobless up 800,000 in South Korea since Feb. 1

SEJONG -- The official number of unemployed in South Korea, compiled by the government, stood at 1.172 million in April, inching up only 19,000 from 1.153 million in January, despite the outbreak of the novel coronavirus that has slammed the country’s economy. But the situation is far more critical when it comes to the extended definition of unemployment, taking “underemployed” people as the de facto unemployed. According to the Supplementary Index III for Employment from S

May 17, 2020