[News Focus] Payouts for jobless soared 81% since 2017

SEJONG -- Data provided by a state-funded agency showed that the volume of unemployment benefits paid to the jobless has sharply increased over the past two years.The figures, from the Korea Employment Information Service, suggest that the economic slowdown is forcing more and more people to leave their workplaces or close their businesses.South Korea saw monthly payouts of unemployment benefits reach 704.4 billion won ($605.1 million) in October 2019, compared with 388.8 billion won in October

Dec. 26, 2019

Population mobility falls 8% in Nov.

The number of South Koreans who changed residences to a different region fell in November, as tightened regulations aimed at reining in housing prices sapped the country's population mobility, data showed Thursday. The number of people who changed their residences declined 8 percent last month from a year earlier to 566,000, according to the data compiled by Statistics Korea. The population mobility rate -- the number of those changing residences for every 100 people -- fell 1.2 percentage point

Dec. 26, 2019

Public sector's debt growth accelerates in 2018

South Korea's public sector debt growth accelerated in 2018, but its share of the country's gross domestic product remained flat, the finance ministry said Thursday.The country's public sector debt, known as D3, which includes the debt of the central government and state-funded firms, reached 1,078 trillion won ($926 billion) as of end-2018, up 34 trillion won from a year ago, according to data compiled by the Ministry of Economy and Finance.It accounted for 56.9 percent of the country's GDP las

Dec. 26, 2019

[Monitor] Rehired mid-aged workers earn less than W2m

Six out of 10 workers in their 40s, 50s and 60s who have been rehired earn less than 2 million won per month, data from Statistics Korea showed earlier this week.The wage tended to decrease as they get older with those in their early 40s receiving an average of 2.3 million won, those in their early 50s 2.17 million won and those in their early 60s 1.83 million won.The data was collected from those who were out of a job as of October 2017 and were reemployed a year later.(khnews@heraldcorp.com)

Dec. 25, 2019

Over 71% of 2020 budget to be allocated for H1

The South Korean government on Tuesday vowed to further accelerate its fiscal spending next year, seeking to revitalize the economy following years of sluggish growth.The Ministry of Economy and Finance confirmed the fiscal allocation plan for 2020 at a Cabinet meeting under the chairmanship of Prime Minister Lee Nak-yon.Under the fiscal program, 71.4 percent of the annual expenditure or 305 trillion won ($262 billion) out of 414.1 trillion won has been allocated for the January-June period -- t

Dec. 24, 2019

From loan control to tax probes, Korea wages war on housing prices

Following the unexpected stringent mortgage control measures announced by the government last week, state agencies are also ramping up pressure to cool down the real estate market by conducting tax probes on individuals and even limiting the use of credit loans for buying houses.The National Tax Service said Monday it will investigate 257 homeowners and track the source of their funds. They are suspected of having purchased expensive apartments with money transferred from parents and relatives,

Dec. 24, 2019

[News Focus] Korea falls short of G-20 average in Q3 growth

SEJONG -- South Korea’s policymakers are struggling to invigorate the sluggish economy, having suffered minus 0.37 percent on-quarter growth in the first quarter this year.The nation posted 1.04 percent on-quarter economic growth in the second quarter, on the back of the base effect from the deep slump in the previous quarter.But its third-quarter growth stayed at 0.41 percent due to continuous lackluster export performance and slower-than-expected improvement in private consumption.The fi

Dec. 24, 2019

More than half of middle-aged people in S. Korea indebted: data

More than half of middle-aged people were indebted last year, data showed Tuesday, in the latest sign of growing household debt in South Korea. The data compiled by Statistics Korea showed that 56.1 percent of people aged between 40 and 64 borrowed money from banks or other financial institutions in 2018, up 0.8 percentage point from 2017.Their median debt amount stood at 50.96 million won ($43,836) in 2018, according to the data.  For those who own homes, the median debt amount jumped to 8

Dec. 24, 2019

Service sector's sales up 5.6% in 2018

South Korea's service sector logged a 5.6-percent rise in sales last year from a year earlier, thanks to robust sales at convenience stores and coffee shops, data showed Tuesday. The combined sales of local service firms totaled 2,155 trillion won ($1.85 trillion) last year, compared with 2,042 trillion won in 2017, according to the data compiled by Statistics Korea.The data showed that 12.18 million people worked in the service sector in 2018, up 4 percent from a year ago.  According to th

Dec. 24, 2019

Economic conditions expected to improve early next year: vice finance minister

Economic conditions at home and abroad are expected to improve early next year, supported by a trade truce between the United States and China and an easing of Brexit worries, South Korea's vice finance minister said Tuesday. Vice Finance Minister Kim Yong-beom made the remarks at a regular meeting with senior financial officials on macroeconomic factors earlier in the day. "Recently, financial markets at home and abroad showed an improvement, thanks to a 'phase one' trade deal between the

Dec. 24, 2019

S. Korea to cut tariff rates on 77 products in 2020

South Korea's Cabinet on Tuesday approved a plan to lower tariff rates on 77 products next year to bolster the country's industrial competitiveness and stabilize prices of domestic goods. The products covered by a tariff quota include crude oil, liquefied natural gas and cobalt sulfate, a key ingredient in making batteries for electric vehicles, according to the Ministry of Economy and Finance. Under the tariff quota, which is set to take effect between Jan. 1 and Dec. 31 next year, tariff rates

Dec. 24, 2019

Brokerages' net profit down 28.5% in Q3

South Korean and foreign securities firms saw their combined net profit fall 28.5 percent in the third quarter from a quarter earlier due in part to declines in commission fees, data showed Tuesday.The combined net profit of 56 local and foreign brokerages in South Korea stood at 988.9 billion won ($850.5 million) in the July-September period, down from 1.38 trillion won in the April-June period, according to the preliminary data from the Financial Supervisory Service.Brokerage commission fees f

Dec. 24, 2019

FSC chief says shift of money flow from real estate to SMEs crucial

In order to carry forward financial innovation next year, it is crucial to induce market funds into innovative industries, instead of the oversupplied housing mortgage sector, according to the top financial regulator Monday.“The funds (in the domestic capital market) are excessively focused on household lending, which mostly comprise housing mortgage loans,” said Financial Services Commission Chairman Eun Sung-soo at a financial policy meeting held at the Korea Deposit Insurance Corp

Dec. 23, 2019

[Monitor] Exports in Dec. inch down

South Korea’s exports inched down 2 percent in the first 20 days of December from a year ago, data from the Korea Customs Service showed Monday.The drop was mainly due to decreased shipments of semiconductors and ships -- 16.7 percent and 51.2 percent, respectively.Exports of passenger cars and wireless equipment, on the other hand, increased by 2.7 percent and 3 percent, respectively.(khnews@heraldcorp.com)

Dec. 23, 2019

Tax agency to probe buyers of expensive homes over alleged tax evasion

South Korea's tax agency said Monday that it will launch an investigation into buyers of expensive homes over alleged tax evasion, a week after the government unveiled tougher regulations to rein rising home prices.  The National Tax Service said it will start the probe into 257 people who are suspected of evading taxes or illegitimately raising money to buy homes.  Debt accounted 69 percent of 512.4 billion won ($440 million) spent in 531 home transactions, which have been under scrut

Dec. 23, 2019

Korea's exports down 2% in first 20 days of December

South Korea's exports fell 2 percent in the first 20 days of December mainly due to decreased shipments of semiconductors and ships, customs data showed Monday. The country's exports stood at $30.4 billion in the Dec. 1-20 period, compared with $31.06 billion in the same period last year, according to the Korea Customs Service.By product, exports of semiconductors and ships fell 16.7 percent and 51.2 percent, respectively.  In contrast, outbound shipments of passenger cars and wireless equi

Dec. 23, 2019

No. of workers underemployed on steady rise: BOK

The number of South Koreans overqualified for their current jobs has reached a record high of over 30 percent this year, a central bank report showed Monday, suggesting overeducation may be adding to the country's overall costs and that the nation may also be running out of quality jobs.According to the report from the Bank of Korea (BOK), the number of people underemployed has breached the 30 percent mark for the very first time this year. "Underemployment occurs when a worker has higher a

Dec. 23, 2019

[Monitor] BTS Seoul concerts generate W1tr of economic effects: study

Large-scale concerts held by Korean boy band BTS held in October has generated nearly 1 trillion won of economic impact, a study by Korea University Business School showed.The three concerts held at the Seoul Olympic Stadium appear to have created around 922.9 billion won of both direct and indirect economic effects, equivalent to the annual revenue generated by six typical medium-sized companies in Korea. Direct economic effect was calculated with ticket sales, costs for the venue and live broa

Dec. 22, 2019

S. Korea's ICT exports down for 13th consecutive month in Nov.

South Korean exports of information and communication technology products dropped for the 13th straight month in November on sluggish demand for chips, displays and mobile phones, trade data showed Sunday.The value of outbound shipments totaled $14.31 billion last month, plunging 21.8 percent from a year ago, according to findings compiled by the Ministry of Science and ICT.South Korea's ICT exports have been on the decline since November last year, with overseas shipments consistently falling b

Dec. 22, 2019

Home transactions up 42.6% in November

Home sales in South Korea rose 42.6 percent in November from a year earlier amid a rise in housing prices, data showed Friday.The number of housing transactions across the country came to 92,413 in November, compared with 65,000 during the same period last year, according to the data compiled by the Ministry of Land, Infrastructure and Transport. The number of home sales in Seoul jumped 85.7 percent on-year to 17,313 in November. It represents a 22.4 percent hike from October. Financial Services

Dec. 20, 2019