Korea's industrial output falls 0.7% in Nov.

South Korea's industrial output fell 0.7 percent in November from a month earlier due in part to decreased exports of semiconductors and a decline in production in the service sector, government data showed Friday.The data compiled by Statistics Korea showed production in the mining, manufacturing, gas and electricity industries dropping 1.7 percent on-month in November.It said semiconductors output fell 5.2 percent in November from a month earlier as chip exports declined 18.9 percent during th

Dec. 28, 2018

[Monitor] House prices in Seoul, Busan to drop in 2019: BOK

House prices next year are anticipated to drop in most regions except for Gyeonggi Province, Daejeon and Sejong, according to a survey of real estate experts conducted by the Bank of Korea. In its regional economy report published earlier this week, the central bank said house prices would drop in most areas, including Seoul and Busan.Of 172 surveyed experts -- including 86 officials in the construction and real estate sectors, 40 in banks and financial institutions, and 46 researchers and profe

Dec. 27, 2018

Korean public sector debt up in 2017

South Korea's public sector debt rose slightly in 2017 from a year earlier, but the ratio of debt to the country's gross domestic product fell, the government said Thursday.The country's public sector debt -- which includes the debt of the central government and nonfinancial public firms -- reached 1,044.6 trillion won ($931 billion) as of end-2017, up 8 trillion won from 2016, according to the data compiled by the Ministry of Economy and Finance. The public sector debt amounted to 60.4 percent

Dec. 27, 2018

Korea's consumer sentiment rebounds in Dec.

South Korea's consumer sentiment rebounded slightly in December on hopes for a pay hike next year, a central bank poll showed Thursday.The composite consumer sentiment index for this month stood at 97.2, up 1.2 from a 21-month low of 96 a month earlier, according to the Bank of Korea. A reading below 100 means pessimists outnumber optimists. It marked the first turnaround in three months, as the index had slid since October.The BOK said many people expected their earnings to rise next year."

Dec. 27, 2018

Moon stresses need for industrial innovation

President Moon Jae-in again highlighted the importance of industrial innovation Wednesday, calling it the only way to ensure sustainable growth of the economy."Industrial innovation of the Republic of Korea is today's topic," the president said while meeting with the National Economic Advisory Council at his office Cheong Wa Dae. "I believe it is a very timely issue. It is also a very urgent issue as a way of revitalizing the country's economy," he added, according to Cheong

Dec. 26, 2018

[News Focus] Indices unfavorable to Moon’s ‘quality of life’ motto

SEJONG - One month ago, President Moon Jae-in expressed his philosophy that indices for quality of life are more important than gross domestic product growth, during his meeting with Organization for Economic Cooperation and Development Secretary-General Angel Gurria at Cheong Wa Dae.His remarks have been interpreted among most people that more households should shift focus to leisure activities or shopping on the back of the government’s policy direction toward slashing statutory working

Dec. 26, 2018

Korea to raise monetary benefits for paid paternity leave

South Korea said Wednesday that it will raise the monthly benefits for paid parental leave from Jan. 1 onward as part of its efforts to boost the country's chronic low birthrate.The maximum amount of monthly payment for those who take paternity leave will be set at 2.5 million won ($2,200) from the current 2 million for three months.The move illustrates the country's ongoing effort to encourage couples to have more babies going forward as its total fertility rate -- the average number of childre

Dec. 26, 2018

Experts forecast real estate market slump in 2019

Real estate experts forecast a market downturn throughout the country next year, although some see a chance of an increase in prices in the capital area, a survey showed Wednesday.According to a report from KB Financial Group's research institute, 70.5 percent of 112 people specialized in the property market predicted a decline in home prices next year. The largest group of 31.3 percent expected a fall of between 1 and 3 percent, while 17 percent betted on a dip of 3 to 5 percent. An overwhelmin

Dec. 26, 2018

[On the Bar] Virtual currency and its anti-money laundering obligations in Korea

On the Bar is a regular column written by attorneys at Yoon & Yang LLC on various laws and regulations that affect running a business in Korea. The content provided here is general legal information. -- Ed.In September 2017, in response to a surge in virtual currency transactions in mid-2017, the Financial Services Commission ultimately banned raising money through initial coin offerings for all types of virtual currencies. Subsequently, as the trading volume of virtual currencies in Korea d

Dec. 25, 2018

[Monitor] No. of ‘real-estate rich’ declines

The number of wealthy individuals who own at least 51 homes in South Korea marked 1,988 last year, down from 2,680 in 2016, data by Statistics Korea showed.The number of those owning at least 51 houses peaked in 2015 at 2,907 before beginning to decline.The total number of homeowners nationwide had increased 2.7 percent last year from the previous year to 13,669,851. Multiple-home owners as a whole surged 1.5 percent on-year to 2,119,163.But the “superrich” who own more than 40 homes

Dec. 24, 2018

Korea to cut tariff rates on 79 products in 2019

The Cabinet on Monday approved a plan to lower tariff rates on 79 products next year to bolster South Korea’s industrial competitiveness and stabilize domestic goods prices.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 quota tariff, which is set to take effect between Jan. 1 and Dec. 31 next year, tariff rates on cobal

Dec. 24, 2018

Sales of cold weather products surge in S. Korea

Sales of cold weather products increased in South Korea apparently as more people purchased goods to keep themselves warm during various year-end events, industry data showed Monday.According to major online shopping mall Gmarket, the sales of products designed to keep people warm, such as jackets or hotpacks, surged between Dec. 13 and Wednesday compared with a year earlier. Sales of padded outdoor jackets for men and women shot up 113 percent and 79 percent on-year, respectively, during the ci

Dec. 24, 2018

[Monitor] Household debt rises 6.1 percent in 2018

The average debt of Korean households rose 6.1 percent to 75.31 million won ($66,700) as of March from a year ago, data showed Sunday.According to Statistics Korea, South Korean household assets on average reached 415.73 million won, up 7.5 percent from a year earlier, but the increase in household debt raised concerns over the impact of a possible hike in market rates.Local banks are poised to raise interest rates following the rate hike by the US Federal Reserve to a range of 2.25 to 2.5 perce

Dec. 23, 2018

Seoulites earn the most for second year in a row

Residents of the South Korean capital earned the highest average incomes last year, data showed Friday.According to Statistics Korea, Seoul topped the list of 16 cities and provinces in per capita disposable income for a second consecutive year.Disposable income, also called disposable personal income, is the total earnings a household makes that are available to save or spend after taxes and pension funds have been paid.Residents of Seoul earned 21.43 million won ($19,000) on average

Dec. 21, 2018

Korea's producer prices drop at fastest pace in over 3 yrs in Nov.

South Korea's producer prices dropped at the fastest clip in more than three years in November on sagging crude oil prices, central bank data showed Friday.The producer price index, a barometer of future consumer inflation, reached 104.67 last month, down 0.7 percent from a month earlier, according to the preliminary data from the Bank of Korea.It is the sharpest on-month decline since October 2015, when the index lost 0.7 percent. Also, the producer price index went south for the second consecu

Dec. 21, 2018

[Monitor] Majority support wider use of solar energy: survey

A majority of South Koreans were in support of expanding the generation and use of Solar photovoltaic power, according to a survey recently released by an association that promotes the wider use of solar energy. Earlier this month, the Korea Photovoltaic Industry Association commissioned Korea Research to survey 1,000 adults on their perceptions toward diverse energy sources. The survey showed that 67.9 percent of the respondents believed the proportion of solar energy out of overall energy use

Dec. 20, 2018

[News Focus] Korea’s unemployment, GDP growth enter critical phase

SEJONG -- Global research organizations have revised their growth outlook for the South Korean economy, predicting its GDP growth in 2018 and 2019 would stay under 3 percent. The International Monetary Fund forecasted the Korean economy would expand only 2.8 percent this year and 2.6 percent next year. The Asian Development Bank’s prediction was 2.7 percent and 2.6 percent, respectively, which is 0.2 percentage point lower for both years compared to its earlier estimates.The forecasts cont

Dec. 20, 2018

Korean households' debt repayment ability decreasing

South Korean households are becoming less able to repay their debts in terms of their income amid a rate hike trend, a central bank report showed Thursday.The debt service ratio of household borrowers reached 38.8 percent in the second quarter, up 0.8 percentage point from six months earlier, according to the biannual report by the Bank of Korea submitted to parliament. The DSR refers to the ratio of a family's total debt payments -- principal and interest -- to its annual income, designed to ch

Dec. 20, 2018

Some 20% of corporate loans granted to financially unsound firms in 2017: BOK

About 20 percent of South Korea's corporate loans were granted to businesses with shaky balance sheets last year, a central bank report showed Thursday.According to the Bank of Korea biannual report, submitted to parliament, 4,469 companies were not able to properly pay interest, suffered from liquidity problems or had weak equity capital numbers. The fragile firms accounted for 19.6 percent of businesses with total assets of 10 billion won ($8.9 million) or more. They borrowed a combined 150.6

Dec. 20, 2018

Seoul test-launches commission-free transaction service to support small businesses

A new smartphone-based payment service, aimed at relieving small business owners of the burden of settlement costs, was launched on a trial basis in Seoul on Thursday.The Seoul Metropolitan Government said it began the trial service of the "Zero Pay" service ahead of its formal launching after March next year. Zero Pay is a mobile direct transaction system in which money is transferred from a consumer account to a merchant account when the consumer scans the merchant's QR code with a s

Dec. 20, 2018