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Heavy snow alerts issued in greater Seoul area, Gangwon Province; over 20 cm of snow seen in Seoul
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Seoul blanketed by heaviest Nov. snow, with more expected
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Seoul snowfall now third heaviest on record
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Samsung shakes up management, commits to reviving chip business
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Heavy snow of up to 40 cm blankets Seoul for 2nd day
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How $70 funeral wreaths became symbol of protest in S. Korea
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Seoul's first snowfall could hit hard, warns weather agency
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Why cynical, 'memeified' makeovers of kids' characters are so appealing
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BOK makes surprise 2nd rate cut to boost growth
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Hybe consolidates chairman Bang Si-hyuk’s regime with leadership changes
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S. Korea's trade terms continue to worsen in Aug.
South Korea's trade terms continued to decline in August amid a continued drop in exports, central bank data showed Friday.The terms of trade index for products came to 89.94 in the month, down 4.6 percent from the same month last year, according to the data from the Bank of Korea .The reading marks 21 consecutive months of decline in the index. The trade terms index measures the amount of imports a country can purchase for each unit of exports. A reading below 100 means import prices are higher
Sept. 27, 2019
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S. Korea to sell 6.1t won in state bonds in Oct.
South Korea plans to sell 6.1 trillion won ($5 billion) in state bonds next month, the finance ministry said Thursday.The government will issue 1.2 trillion won in bonds with a maturity of three years and 1.2 trillion won in five-year bonds, according to the Ministry of Economy and Finance. It also intends to sell 1.4 trillion won in bonds with a maturity of 10 years and 500 billion won in 20-year Treasurys, while floating 1.4 trillion won and 400 billion won in bonds with a maturity of 30 years
Sept. 26, 2019
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Banks' lending rates dip to record low in Aug.
Lending rates on fresh bank loans dropped to new lows in August, central bank data showed Thursday, hinting at a further increase in the country's already record-high household borrowing.The average interest rate on fresh loans extended to households came to 2.92 percent in the month, down 0.20 percentage point from 3.12 percent the previous month, according to the data from the Bank of Korea. The average rate on fresh corporate loans also dropped by 0.20 percentage point to 3.32 percent over th
Sept. 26, 2019
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Korea's financial stability slightly worsens amid economic slowdown: BOK
South Korea's financial stability worsened slightly in August due to a rise in household and corporate debt in the face of an economic slowdown, a central bank report showed Thursday.The country's financial stability index came to 8.3 at the end of last month, breaching the 8-point mark for the first time since early 2016, according to the Bank of Korea.The 8-point mark is the lower boundary for a warning, while an index of over 22 means the country may be in a financial crisis, according to the
Sept. 26, 2019
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ADB cuts growth outlook for S. Korea to 2.1%
The Asian Development Bank has slashed its growth outlook for South Korea this year to 2.1 percent, the bank said in a report released Wednesday.The latest outlook marks a sharp drop from April's 2.5 percent forecast.The bank cited the country's poor economic performance and adverse external factors that apparently include the US-China trade dispute. The ADB also lowered its 2020 growth outlook for South Korea to 2.4 percent from the previous 2.5 percent.The South Korean econom
Sept. 25, 2019
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S. Korea’s producer prices fall in Aug.
South Korea’s producer prices dropped in August on-year, according to data released by the central bank Tuesday, marking the second consecutive month of decline and feeding concerns that it may lead to a prolonged state of weak consumer prices. According to the Bank of Korea, the producer price index dipped 0.6 percent to 103.73 on-year in August. The reading follows July’s corresponding figure of 103.5, which fell 0.3 percent on-year and marked the first on-year drop in 33 months.&n
Sept. 24, 2019
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S. Korea sees steep drop in merchandise exports among G-20
South Korea’s exports have plunged the most among G-20 nations due to the ongoing US-China trade conflict, data compiled by the World Trade Organization showed Monday.The country’s second-quarter exports dropped 8.6 percent on-year to $138.6 billion, marking the second-largest decline among G-20 members. Indonesia outranked Korea in terms of decline in exports with a 9.1 percent drop. By nation, outbound shipments of those heavily reliant on either the US and China saw the stee
Sept. 23, 2019
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[New Economic Non-order:3] G-7 loses prestige amid growing nationalism
The Korea Herald is publishing a series of articles to look into the weakening of the global economic framework in light of the fading liberalism and rise of trade protectionism and nationalism. This is the third installment. -- Ed.The liberal world order, or at least the belief that it could be sustained, has lasted for much of the 20th century, but is likely to fade away amid the rise of nationalism and protectionism across the world.This regression to state-centered policies naturally drove a
Sept. 22, 2019
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[Management in Korea] Why governance reform is key to make chaebol accountable
Management in Korea is a regular column written by the members of Egon Zehnder Seoul, touching on various aspects of Korean enterprises and business leaders, offering management tips. -- Ed.Nearly every presidential candidate in South Korea over the past two decades has made the same campaign promise and failed to deliver on it: End the near-monopoly chaebol -- family-owned conglomerates -- hold in the country and give smaller companies an opportunity to thrive. To enact some semblance of contro
Sept. 22, 2019
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Coupang publishes ‘Mini business impact report’
“Mini” businesses selling products on Coupang have seen their businesses grow by 81 percent on average, with combined sales exceeding 2.65 trillion won ($2.22 billion) in 2018 alone, a report released by Coupang showed.These and other findings were included in the “2019 Coupang Mini Business Impact Report -- Small Giants Working With Coupang,” highlighting the socioeconomic correlation between Coupang, its business partners and local communities. It is the first such in-d
Sept. 22, 2019
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S. Korea's pork exports to remain intact despite ASF: ministry
South Korea's exports of pork are expected to remain steady despite two confirmed cases of African swine fever in the country as the disease has been reported only in a limited area, officials said Sunday, The first-ever confirmed ASF case in South Korea was reported Tuesday in Paju, located near the heavily fortified border with North Korea. The second confirmed ASF case was reported in the neighboring Yeoncheon the next day.The confirmed cases sparked concerns over the local pork industry, inc
Sept. 22, 2019
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Finance minister urges cautious approach on S. Korea’s WTO status
With US President Donald Trump casting doubt on the way the World Trade Organization categorizes global economies, South Korea’s finance minister said Friday that the government would take a cautious approach toward its developing-country status and the trade benefits that come along with it. “The other developing economies that are members of the WTO have been raising issues with the benefits that our nation receives through the developing country status, which is why now is the tim
Sept. 20, 2019
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OECD cuts growth outlook for S. Korea to 2.1 percent
The Organization for Economic Cooperation and Development (OECD) on Thursday slashed its growth outlook for South Korea's economy this year to 2.1 percent amid a slowdown in global trade.The OECD's interim outlook represented a drop from its previous forecast of 2.4 percent in May. It said the South Korean economy would grow 2.3 percent in 2020, also slower than its previous forecast of 2.5 percent.Growth in South Korea "has moderated by more than expected this year, in part due to persiste
Sept. 19, 2019
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US Fed’s rate cut gives room for easing monetary policy: BOK
South Korea’s central bank chief said Thursday that the latest US rate cut has created some policy space for easing actions amid the slowing economy.“The US Federal Reserve’s rate cut alleviates the burden for other countries in operating their own monetary policies,” Bank of Korea Gov. Lee Ju-yeol told reporters. On Wednesday local time, the Fed cut the base rate by a quarter percentage point to a range of between 1.75 percent and 2 percent. This was its second rate cut
Sept. 19, 2019
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BOK chief says US rate cut gives room for additional policy
The head of South Korea's central bank said Thursday the latest US rate cut may have created further room for his country to more actively support the local economy as it grapples with falling exports and sagging investment.On Wednesday (local time), the US Fed slashed its policy rate by 25 basis points to a range of between 1.75 percent and 2.0 percent in its second rate cut in two months -- and the second since 2008. "Of course the US Fed reducing its rate somewhat removes the burden for
Sept. 19, 2019
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S. Korea to revamp workforce system amid population decline
South Korea’s fiscal chief on Wednesday announced proposals to improve the supply of key workforce amid a declining population and aging society. The government’s latest blueprint announced Wednesday focuses on recruiting teachers, soldiers and foreign workers in nonmetropolitan areas, as well as improving the employment conditions for seniors.“With its record-low birth rate and fast aging society, Korea is now facing critical demographic changes,” said Deputy Prime Minis
Sept. 18, 2019
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S. Korea considers releasing oil reserves in case of supply problem
The latest drone strikes on Saudi Arabia’s crude processing facilities will have limited impact on South Korea the government has said, but it will consider releasing its oil reserves in case of supply disruption, a senior official said Tuesday.“The strikes on Saudi Arabia’s key oil facilities over the weekend have heightened the risks in the Middle East region,” said Kim Yong-beom, first vice minister of finance.“But considering the supply contracts and current (oi
Sept. 17, 2019
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Fiscal spending has multiplier effects on economy: BOK
The government’s fiscal spending has a multiplier impact, augmenting the economy by about 1.3 times over five years, central bank data showed Monday.In a recent study by the Bank of Korea, the multiplier effects of government spending on the domestic economy stood at 1.27 over five years.The given index means that every 1 trillion won ($844 million) spent by the government will generate 1.27 trillion won in gross domestic product during the period.When the figure is low, it means that expa
Sept. 16, 2019
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Fiscal spending takes greater effect over time: BOK report
Fiscal spending may have a greater impact on the economy than generally viewed, but the effect may take some time to take place, a central bank report said Monday.In a recent study conducted by the Bank of Korea, the multiplier effect of government spending on the local economy came to 1.27 over a five-year period. This means every 1 trillion won ($850 million) spent by the government will generate 1.27 trillion won in gross domestic product over a five-year period, the report said.Previously, t
Sept. 16, 2019
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[News Focus] Household-income polarization worsens in 2 years
SEJONG -- The Moon Jae-in administration has continued to push for “income-led” growth by raising the minimum wage and scaling back the workweek. This was aimed at boosting consumption by raising the disposable income of low-income households. This in turn was meant to boost growth in the overall economy.But drastic hikes in the minimum wage had side effects, as small and midsized businesses took a conservative stance toward hiring due to higher labor costs, which have been linked to
Sept. 15, 2019