State support for low wage earners to jump 3.6 times to near W5tr in 2019

Earned income support provided by the government to offset low wages will rise a sharp 260 percent from this year to near 5 trillion won ($4.47 billion) in 2019, official data showed Sunday.The increase in earned income tax credit comes as payment method changes will go into effect along with the move to offer assistance set aside for the first half for next year in advance, the finance ministry said.Seoul provided 1.34 trillion won in credit this year, which went to encourage people to work and

Sept. 2, 2018

Moon says reform is call of 'the times'

President Moon Jae-in called Saturday for an unswerving reform drive despite a falling approval rating and controversies over his economic policy.He was speaking at an unprecedented gathering of all ruling party lawmakers, Cabinet members and presidential officials.It came two days after Moon's first Cabinet shake-up to replace five ministers, including the defense chief and the top education policymaker. Late last month, the Democratic Party of Korea picked Rep. Lee Hae-chan, a seven-term

Sept. 1, 2018

S. Korea's exports up 8.7 pct in August

South Korea's exports increased 8.7 percent in August compared with a year ago on upbeat sales of semiconductors and petrochemical products, government data showed Saturday.Outbound shipments reached $51.2 billion last month, a record high for August, according to the data compiled by the Ministry of Trade, Industry and Energy.Imports surged 9.2 percent on-year to $44.3 billion last month for a trade surplus of $6.9 billion, marking 79 straight months in which the country's exports have exceeded

Sept. 1, 2018

Full text of BOK's statement on monetary policy decision for Aug.

The following is the full text of the Bank of Korea's statement on its monetary policy decision for August. The central bank's monetary policy board decided Friday to hold its base rate steady at 1.5 percent for the month.-----------------The Monetary Policy Board of the Bank of Korea decided today to leave the Base Rate unchanged at 1.50 percent for the intermeeting period.Based on currently available information the Board considers that the global economy has continued its robust growth. In th

Aug. 31, 2018

BOK freezes key rate at 1.5% for Aug.

South Korea's central bank on Friday froze its policy rate for August on sluggish economy data and low inflation pressure.The monetary policy board of the Bank of Korea voted to keep the policy rate unchanged at 1.5 percent as widely expected.The BOK has taken a wait-and-see stance since November last year, when it adjusted up the key rate for the first time in more than six years, citing the economic recovery.Gov. Lee Ju-yeol said the July decision was not unanimous as Lee Il-houng, part of the

Aug. 31, 2018

Moon urges local governments' efforts to create jobs

President Moon Jae-in on Thursday urged local governments to step up their own efforts to create more jobs while promising increased support from the central government."The people's concerns are growing due to a drop in recent job indicators. Many regions are also facing difficulties from the fallout of restructuring. Creating jobs, especially good jobs, is the current issue facing both the central and local governments," the president said in a meeting with the heads of 17 provincial

Aug. 30, 2018

Top presidential official hints at powerful steps to curb speculative property demand

A senior presidential official raised the need to curb speculative demand in the property market Thursday, vowing to take stronger measures if needed.Jang Ha-sung, the presidential chief of staff for policy, made the remark at a meeting with senior officials from the government and the ruling Democratic Party over the economy."The government will step up its efforts to thoroughly curb speculative demand in the property market while protecting real buyers," Jang said at the start of the

Aug. 30, 2018

Moon says income-led growth not a choice but matter of survival

President Moon Jae-in again sought to promote his much disputed income-led growth policy Wednesday, calling it a matter of survival, not choice."We can never ensure sustainable growth with the current (economic) structure that creates polarization," the president said in a special meeting with the heads of and other officials from some 240 public organizations, including state-run firms and government commissions."Change is not a matter of choice but a matter of survival," Mo

Aug. 29, 2018

Trade minister to attend ASEAN meeting for economic partnership

South Korea’s trade minister will be attending key economic meetings with his counterparts in Southeast Asian countries this week as part of the government’s ongoing efforts to strengthen economic ties with the emerging region, his office said Tuesday.Minister Kim Hyun-chong is to visit Singapore from Thursday to Saturday to attend a series of meetings: the ASEAN economic ministers’ meeting, ASEAN plus three (along with China and Japan), the East Asia Summit and the Regional Co

Aug. 28, 2018

Homeplus opens big-box and retail hybrid stores

Major South Korean discount chain Homeplus has been speeding up its move to open more big-box and retail hybrid stores here, to strengthen its sales and enhance competitiveness. Homeplus said Tuesday that it has seen outstanding sales growth from its Homeplus Special stores, which sell products in bulk and also offer individually packaged food and other goods like those found in grocery stores.The company has been converting its outlets into Homeplus Special stores since opening its first store

Aug. 28, 2018

Tax office to crack down on offshore tax evasion

The South Korean tax agency said Tuesday it will beef up its crackdown on offshore tax evasion by local companies and individuals as part of efforts to boost fair taxation.The National Tax Service will also probe tax evasion by nonprofit organizations run by conglomerates.The NTS collected 1.32 trillion won ($1.23 billion) in taxes from suspected offshore tax evaders last year, slightly more than the 1.3 trillion won collected the previous year. Offshore tax evasion has been on the rise in recen

Aug. 28, 2018

Govt. vows W12tr investment into SOC, prioritizes job creation

Deputy Prime Minister and Finance Minister Kim Dong-yeon said Monday that the government will increase next year’s social overhead capital budget by 50 percent, dedicating all efforts to creating jobs in local economies and for the middle-aged population.The top fiscal policymaker’s reiteration of expansive fiscal spending and job creation was taken as a signal that he would adjust his policy tone to be in line with that of Cheong Wa Dae, especially with presidential chief of staff f

Aug. 27, 2018

[Newsmaker] ‘Kim-Jang’ feud winds down, uncertainties remain

The apparent discord between the country’s top two economic policymakers -- Deputy Prime Minister and Finance Minister Kim Dong-yeon and presidential chief of staff for Policy Jang Ha-sung -- seemed to die down over the weekend as Cheong Wa Dae firmly dismissed rumors of Kim’s resignation.However, uncertainties persist over the cooperation between the two officials as they seem to remain at odds over the government’s economic agenda amid worsening employment figures. “(Th

Aug. 26, 2018

GS to invest W20tr, hire 21,000 over next 5 years

Over the next five years South Korea’s chemical and energy giant GS Group will invest 20 trillion won (about $18 billion) and create 21,000 new jobs to promote growth and market competitiveness, company representatives said Sunday.The investment, 4 trillion won each year, is 25 percent more than the average the group has spent each year over the last three years, and it will be spent mostly on the three pillars of the group’s business -- the petrochemical, energy and retail sectors.A

Aug. 26, 2018

Seoul mayor backtracks on city renovation plans

Seoul Mayor Park Won-soon said Sunday that a plan to renovate two commercial districts in the metropolitan city will be postponed, citing fears on the real estate market that has seen a rise since the announcement.During his visit to Singapore last month, Park said he would have three major downtown areas, including the financial district of Yeouido and Yongsan, where US troops have long been based, to be renovated under the 2030 Seoul Plan. In an emergency press meeting Sunday, however, Park sa

Aug. 26, 2018

BOK expected to hold key rate unchanged for August: Moody's

The Bank of Korea will likely maintain its policy rate at the current 1.5 percent next week as Asia's fourth-largest economy is struggling with sluggish employment and global trade disputes, a market watcher said Saturday.Chaired by Gov. Lee Ju-yeol, the seven-member panel of the BOK will hold its sixth monetary policy meeting Friday and decide whether to keep or adjust the key rate.The key rate has remained unchanged since the central bank raised it by a quarter percentage point from an all-tim

Aug. 25, 2018

‘Largest’ job-focused budget to be proposed for next year

The South Korean government and ruling party on Thursday agreed to propose what they called “the largest-ever” job creation-focused budget for next year, gesturing to spend more funds into supporting low-income clusters.“Considering the favorable tax revenues and sound fiscal soundness, we decided to operate next year’s budget as expansively as possible for the sake of job creation, social safety network and regional economy revitalization,” Rep. Kim Tae-nyeon, chie

Aug. 23, 2018

Fiscal cliff may be ahead for Korea, experts warn

The increase in tax revenue that South Korea is expected to see in the coming years should not give it a false sense of security in light of the fiscal cliff that might be ahead, experts say.The government now envisions that an additional 60 trillion won ($53.6 billion) in taxes will be collected over the next five years, compared with amounts projected in a midterm fiscal management plan drawn up last year. Finance Minister Kim Dong-yeon recently said the excess revenue would amount to 19 trill

Aug. 22, 2018

FTC to give up exclusive right to file complaints in serious antitrust cases

South Korea's corporate watchdog said Tuesday that it has decided to give up its own right to file complaints about some major cases such as price rigging in a move to support effective law enforcement and better protect consumers' rights.Under the current Fair Trade Act, the Fair Trade Commission is the only entity that can bring an antitrust trade case to court through the state prosecutors' office. The law is aimed at preventing a flood of lawsuits being filed against firms by individuals and

Aug. 21, 2018

Korea's producer prices up in July due to heat wave

South Korea's producer prices rose to a four-year high in July as the worst heat in recent years hurt the farming sector, central bank data showed Tuesday.The producer price index, a barometer of future consumer inflation, reached 104.8 last month, up 0.4 percent from a month earlier, according to the preliminary data from the Bank of Korea. From a year earlier, it rose 2.9 percent to extend its positive streak to 21 straight months from November 2016. The July figure was the highest reading sin

Aug. 21, 2018