Refiners, chemical firms feared to take further hit from virus

The new coronavirus outbreak is expected to deal a fresh blow to South Korean oil refiners and chemical makers already reeling from worsening profits, industry sources said Thursday. The pessimistic outlook comes as South Korean refineries' exports to China, their largest overseas market, are projected to drop sharply because of the COVID-19 shock. South Korean refiners resort to exports more than domestic demand for their sales. China is estimated to account for nearly 20 percent of their to

Feb. 20, 2020

S. Korea's economic growth nearly halves in past 2 decades

South Korea's economic growth rate has nearly halved in the past two decades due to low productivity and regulations, a local think tank said Thursday. South Korea's economy grew an average of 5 percent between 2001 and 2005 before falling to 2.7 percent during the 2016-2019 period, the Korea Economic Research Institute (KERI) said in a statement. South Korea ranked fifth among the Organization for Economic Cooperation and Development, a group of 36 mostly rich and advanced nations, in terms

Feb. 20, 2020

S. Korean producer prices edge up in Jan.

South Korea's producer prices inched up in January from the prior month due to the increased cost of farm and fishery goods, central bank data showed Thursday. The producer price index for all commodities and services stood at 103.93 last month, up 0.2 percent from December, according to preliminary data from the Bank of Korea. From the same month a year earlier, the country's producer prices climbed 1 percent. Producer prices serve as a key barometer of future inflation. The BOK said prices

Feb. 20, 2020

S. Korea's IPOs up 22% in 2019

The value of South Korea's initial public offerings rose 22.8 percent in 2019 from a year earlier, data showed Wednesday. IPO proceeds came to 3.21 trillion won ($2.69 billion) last year, compared with 2.61 trillion won in 2018, according to the data by the Financial Supervisory Service. Still, the number of companies that made market debuts last year fell to 73 from 77 in 2018, the data showed. Main IPOs included Hanwha Systems Co., the defense industry unit of Hanwha Group, and SNK Corp.,

Feb. 19, 2020

[News Focus] Korea’s household debt surges 100% in a decade

SEJONG -- In 2013, South Korea saw its collective outstanding loans plus credit-based payment services extended to the household sector top 1,000 trillion won ($842 billion) for the first time in history. The mounting household debt was somewhat attributable to eased lending regulations on the debt-to-income ratio in 2012 during the Lee Myung-bak administration. The Park Geun-hye administration further pushed for double-track deregulation, under which the loan-to-value ratio as well as the de

Feb. 18, 2020

World Bank to highlight Korea’s economy, technology

The World Bank will host a special event that highlights South Korea’s economy and innovative technology this week with the Korean government dispatching a special delegation, the Ministry of Economy and Finance said Monday. The government delegation of around 140 officials led by Vice Finance Minister Kim Yong-beom will attend Korea-WBG Partnership Week for Innovation and Technology, which kicks off Tuesday and runs for three days at the World Bank headquarters in Washington. Officials f

Feb. 17, 2020

Moody's cuts S. Korea's 2020 growth outlook to 1.9% over virus fallout

Ratings agency Moody's on Monday cut its forecast for South Korea's 2020 economic growth to 1.9 percent from 2.1 percent, citing the economic fallout of the new coronavirus. The latest forecast by Moody's is lower than the Bank of Korea's prediction of 2.3 percent expansion for this year. The spread of COVID-19 in China and around the world is expected to have a negative impact on tourism and industrial production in Asian nations, including South Korea and Japan, Moody's said. Moody's als

Feb. 17, 2020

14 online sellers of face masks involved in illegal practice: FTC

SEJONG -- The country's anti-trust regulator said Monday it has found 14 online sellers of face masks in possible violation of fair trade laws, amid surging demand for protective masks over the spread of the novel coronavirus. Some of the online sellers have been accused of unilaterally canceling orders and selling face masks at higher market prices, the Fair Trade Commission (FTC) said in a statement. For instance, one online vendor unilaterally canceled orders for 119,450 face masks betwee

Feb. 17, 2020

S. Korea's monetary policy must maintain accommodative stance: regional think-tank

SEJONG -- South Korea must maintain its accommodative policy stance as it seeks to prop up a slowing economy amid muted inflationary pressure, a regional think-tank said Monday. "Given ample fiscal space, the fiscal stance should remain expansionary in the near term with more spending allocated toward restructuring the economy," the ASEAN+3 Macroeconomic Research Office (AMRO) said in a report. "At the same time, monetary policy should be accommodative in view of moderating ec

Feb. 17, 2020

Owners of high-priced homes up 30 percent in Jamsil

     The number of taxpayers owning expensive homes, subject to higher property tax, surged at the fastest pace in Jamsil, southern Seoul, data showed Sunday.  The number of home owners who paid comprehensive real estate holding tax rose 36.1 percent on-year from some 15,000 to nearly 21,000 in Jamsil, said Rep. Kang Byung-won of ruling Democratic Party, quoting data from the National Tax Service. The number of taxpayers in Jamsil owning one residential unit with an appra

Feb. 16, 2020

Coronavirus likely to deepen auto sector woes: Fitch

Fitch ratings agency said Friday the new coronavirus outbreak will add to auto sector challenges this year as COVID-19 disrupts global supply chains. "The greatest impact on the sector is likely to come from lower sales during the outbreak in China, the world's largest market for new vehicles. The country's new vehicle sales are likely to be depressed until the outbreak is under control," Fitch said in a statement. Fitch expected sales in China to start recovering from April and acc

Feb. 14, 2020

S. Korea’s export prices drop in January

South Korea saw its export prices fall on-year in January, mainly due to the strengthening of the Korean won against the US dollar, central bank data showed Friday. The export prices index in terms of Korean won came to 96.59 last month, according to preliminary data released by the Bank of Korea. The figure was down 0.8 percentage point from a month earlier and down 2.8 percent from a year earlier. “The export price index prolonged an on-month downturn but the pace of the decrease sl

Feb. 14, 2020

BOK chief says will maintain ample liquidity

The head of South Korea's central bank said Friday the country will continue to maintain ample liquidity to help minimize the fallout from the outbreak of the new coronavirus amid growing market expectations for a rate cut down the road. "I believe now is the time when we need everyone's efforts to minimize the impact of this crisis," Bank of Korea (BOK) Gov. Lee Ju-yeol told a Seoul meeting hosted by Finance Minister Hong Nam-ki to review the impact of the outbreak. "To this e

Feb. 14, 2020

S. Korea to spare no efforts to minimize economic impact of coronavirus

South Korea will spare no efforts to minimize the economic fallout of the new coronavirus and draw up additional measures to support an economic recovery, Finance Minister Hong Nam-ki said Friday. Hong made the remarks in a meeting with Bank of Korea Gov. Lee Ju-yeol on Friday to discuss how to cope with the economic impact of the virus, which was recently named COVID-19. Hong also urged people to carry out "normal economic activities," saying private consumption was hit by the spr

Feb. 14, 2020

Seoul's export prices sink in Jan

South Korea's export prices fell slightly in January from a month earlier, central bank data showed Friday, largely due to the strengthening of the local currency against the US dollar. The export prices index, in terms of Korean won, came to 96.59 in the month, according to preliminary data from the Bank of Korea (BOK). The reading marks a 0.8 percent drop from a month earlier and a 2.8 percent drop from the same month last year. The BOK attributed the drop to the Korean won's appreciation

Feb. 14, 2020

S. Korea to unveil measures to support exports amid virus fallout

SEJONG -- South Korea plans to unveil measures to support exports as early as next week as the coronavirus epidemic in China is expected to cast a shadow on the Korean economy, Finance Minister Hong Nam-ki said Thursday. Hong said the Korean economy is expected to face a bigger economic impact from the virus, COVID-19, than that of the Middle East Respiratory Syndrome (MERS) outbreak in 2015. However, Hong said, "Too much fear can hurt the (Korean) economy," urging people not to b

Feb. 13, 2020

S. Korea steps up efforts to stabilize supply of face masks

SEJONG -- South Korea said Thursday it will step up efforts to stabilize supplies of face masks, as demand has soared over the spread of the novel coronavirus. Vice Finance Minister Kim Yong-beom told a meeting with relevant officials that the government will also take stern measures against those who hoard face masks or illegally ship them overseas. Currently, South Korean firms have enough materials to make about 10 million masks per day, Kim said. Earlier this month, the government app

Feb. 13, 2020

Buyers of expensive homes face probe over alleged tax evasion

SEJONG -- South Korea's tax agency said Thursday that it will launch an investigation into buyers of expensive homes over alleged tax evasion. The National Tax Service said it will start the probe into 361 people who are suspected of evading taxes or illegitimately raising money to buy homes. For instance, a 30-something person, who recently purchased a home in Seoul's affluent Gangnam district, is suspected of illegally receiving money from his or her mother. In the toughest steps ever to

Feb. 13, 2020

S. Korea to speed up private sector infrastructure projects

SEJONG -- South Korea will speed up its implementation of privately funded infrastructure projects this year in a bid to spur economic recovery through investment, the finance ministry said Thursday. Vice Finance Minister Koo Yun-cheol made the remarks at a meeting on infrastructure projects with relevant officials earlier in the day. A total of 62 infrastructure projects worth 5.2 trillion won ($4.4 billion) will be implemented this year. The government aims to start 50 percent of the pro

Feb. 13, 2020

S. Korea’s job indexes progress in Jan., likely to falter in Feb.

South Korea saw its jobless rate fall with job additions hitting the highest level in more than five years in January, on the back of the government’s continued fiscal efforts to expand the job market for the elderly, data showed Wednesday. But as the improved figures did not properly reflect the latest impact of the new coronavirus COVID-19, the government suggested a pessimistic outlook for this month. The nation’s unemployment rate fell 0.4 percentage point on-year to 4.1 pe

Feb. 12, 2020