BOK revises down 2018 growth forecast to 2.9 %

The Bank of Korea on Thursday revised down its earlier growth forecast on the South Korean economy to 2.9 percent for 2018 due to rising economic uncertainties at home and abroad.In the monetary policy meeting for July, the central bank slashed 0.1 percentage point from its earlier growth outlook of 3.0 percent published in April.The adjustment came as the latest economic data including sluggish job creation and slowed exports raised concerns that the economy is losing steam and entering a downs

July 12, 2018

S. Korea cautious over full-blown trade war between US, China

South Korea's trade ministry said Thursday it is preparing for fallouts from the flaring trade dispute between the United States and China as the world's two largest economies are seemingly on a collision course that could have global repercussions. Concerns are rising that Asia's fourth-largest economy could be among the losers of the protracted trade war between its top two trading partners after the Donald Trump administration unveiled an additional list of tariffs on $200 billion worth of Ch

July 12, 2018

BOK holds policy rate unchanged at 1.5% for July

South Korea's central bank on Thursday froze its key rate for July as the economy shows some signs of a slowdown and inflationary pressure remains low.The monetary policy board of the Bank of Korea voted to keep the critical rate unchanged at 1.5 percent as widely expected, extending its wait-and-see stance to eight months.In November last year, South Korea's central bank adjusted up the key rate for the first time in more than six years, citing economic recovery. Gov. Lee said the July decision

July 12, 2018

Korean exporters may find new chances in US-China trade war

Korea’s manufacturing exporters need to set their sights on new business opportunities that would stem from an escalating trade war between the US and China, experts here say.Protracted trade friction between the world’s two biggest economies might also give them more room to prepare for the fallout from China’s ambitious plan to become a global power in major advanced industries by 2025.Behind President Donald Trump’s toughening stance against Beijing seems to be Washing

July 11, 2018

Korea's jobless rate falls, but new job numbers remain sluggish

Korea's jobless rate fell slightly in June due to a rise in employment in the health care, public service and financial sectors, but the number of newly created positions remained sluggish, government data showed Wednesday.The unemployment rate stood at 3.7 percent last month, down 0.1 percentage point from a year earlier, according to the report compiled by Statistics Korea.The number of employed people reached 27.12 million in June, up 106,000 from the same one-month period in 2017, according

July 11, 2018

Concerns rise on NPS' stewardship code adoption timeline

South Korea’s government on Tuesday reconfirmed its plan to improve the decision-making process of the National Pension Service but concerns continued to build up in the market on whether the fund operator may overcome its prolonged leadership vacuum and fund depletion.Boosting the market anxiety was an ongoing brawl over a top presidential aide’s alleged intervention in the personnel appointment of the NPS, an issue which clouded the pension operator’s purported independence a

July 10, 2018

Concerns rise over repeated policy discords

Repeated discords among policymakers have amplified concerns over the direction of the Moon Jae-in administration’s economic policies that are criticized for being detached from the reality.Adding to the confusion is half-baked proposals from a number of policy advisory panels swayed by progressive civic group members and scholars. Finance Minister Kim Dong-yeon, who doubles as deputy prime minister for economic affairs, last week rebuffed an earlier proposal made by a presidential panel t

July 9, 2018

Seoul gets ready for Washington's hearing on auto tariffs

South Korea's trade ministry is working on finalizing the members of the delegation for Washington's public hearing on auto tariffs slated for later this month, industry sources said Sunday.The Ministry of Trade, Industry and Energy decided to send the delegation to the July 19-20 public hearing, after the U.S.Department of Commerce in May hinted at slapping tariffs on vehicles under Section 232 of its trade law.The ministry said the delegation will be led by Deputy Trade Minister Kang Sung-cheo

July 8, 2018

Seoul stock index may fall to 2,200 as US slaps tariffs on Chinese goods

South Korea's main stock index may fall to the 2,200 level next week due to a trade war that was kicked off by the United States applying tariffs on $34 billion worth of Chinese goods, analysts here said Saturday.The benchmark Korea Composite Stock Price Index is widely expected to move between 2,200 and 2,300 in the coming week due to growing uncertainties surrounding the US-China standoff. The main index ended 0.68 percent higher at 2,272.87 Friday after falling 2.3 percent over this past week

July 7, 2018

BOK expected to freeze key rate at 1.5% for July: Moody's

South Korea's central bank will likely hold its policy rate unchanged at the current 1.5 percent at its upcoming monetary meeting next week due to still low inflation pressure and rising uncertainties over trade disputes, a market watcher said Saturday.Chaired by Bank of Korea Gov. Lee Ju-yeol, the seven-member panel will hold its fifth monetary policy meeting Thursday and decide whether to keep or adjust the key rate.The BOK has maintained the present level in the previous four sessions since i

July 7, 2018

Korea braces for impact from US-China trade war

South Korea is bracing for the impact of the opening blows in the United States’ trade war with China, while playing down the possibilities of immediate setbacks. Starting Friday at 1 p.m. Korean time, the US implemented 25 percent tariffs on $34 billion of Chinese trade. Immediately after the move, China vowed swift retaliation, calling the tariffs “typical trade bullying.” Prior to the US-China tit-for-tat, Asia’s fourth-largest economy at 8:15 a.m. held a pan-governmen

July 6, 2018

Moon govt. pushes real estate tax hike, dithers financial income tax

The Moon Jae-in government said Friday that it will raise the real estate taxes for high-priced properties and multiple home owners, in a move to reduce the widening wealth gap, steady housing prices and promote fair taxation.Should the renewed tax plan take effect, some 350,000 real estate owners are estimated to pay 700 billion won ($625 million) in additional tax, starting next year, unless they register themselves as lease business operators. The Ministry of Strategy and Finance held a joint

July 6, 2018

US import restrictions to dent S. Korean exports

US restrictions on imports of South Korean steel, washing machines and solar cells are expected to cost Asia's fourth-largest economy more than $2.4 billion in lost exports over the coming years, a parliamentary report said Thursday.The Donald Trump administration's import restrictions on the three products could make South Korea suffer an export loss of $2.47 billion over the next few years, according to the report by the National Assembly Budget Office.The regulations are also feared to result

July 5, 2018

[Herald Interview] S. Korea's IP leadership to play key role in innovative growth: KIPO chief

South Korea’s leading status in the intellectual property sector will serve as an indispensable tool in attaining the country’s economic visions, such as innovative growth, job creation and fair market order, according to the chief of the intellectual property office here.“South Korea’s development pace in intangible intellectual assets has already outpaced its economic growth,” Sung Yun-mo, commissioner of the Korean Intellectual Property Office, told The Korea Her

July 4, 2018

Time running out for regulatory reforms

President Moon Jae-in’s administration is running short of time to carry out regulatory reforms that are urgently needed to bolster the sluggish economy, experts say.Over the past year, it has pushed for innovation-driven growth in tandem with income-led growth in the hope of enabling the Korean economy to ride on the wave of new industrial technologies and get a boost from increased consumption spending.But Moon and his economic aides now face mounting criticism that they have done little

July 4, 2018

Presidential panel to tighten grip over affluent real estate owners

A special presidential panel on Tuesday announced its fiscal reform plan, in accordance with the Moon Jae-in administration’s recently renewed pledge to reduce income disparity and achieve income-led growth.The blueprint, raising the tax burden on owners of high value houses and multiple homes, was taken as a signal that the progressive government -- which has largely been preoccupied with North Korean issues throughout its first year -- shall henceforth place more focus on “economic

July 3, 2018

Foreigners focus more on global risks before investing in S. Korea: report

Foreign investors tended to focus more on global and national risk factors than on the interest rate spread with the United States before making investments in the South Korean bond market, a report said Tuesday.According to the paper published by the Bank of Korea, the rate difference between South Korea and the United States had positively affected the net purchase of foreigners in the local bond market in the 2004-2007 period. But the sovereign debt credit default swap premium, referring to a

July 3, 2018

S. Korea's consumer prices up 1.5% in June

South Korea's consumer price growth continued to stay above 1 percent in June on a rise of agricultural goods and the service sector, government data showed Tuesday.The country's consumer price index climbed 1.5 percent last month from a year earlier, the same pace from the previous month's 1.5 percent on-year gain, according to the data compiled by Statistics Korea.The June figure is well below the Bank of Korea's target of 2 percent for the year, stoking speculation that the central bank's mon

July 3, 2018

Weakening won poses new risks to Korean economy

The weakening of the won in recent weeks carries both benefits and risks for the Korean economy that is being held back by a simultaneous downturn in investment, consumption and exports. Policymakers therefore face a thorny task to take proper steps in response to the weakening won that is set to have contradictory effects on the economy.The value of the Korean currency against the dollar fell to an eight-month low of 1,124.2 won per dollar in the Seoul foreign exchange market on June 28 before

July 2, 2018

S. Korea may not attain 3% growth target in 2018 amid myriad of challenges: observers

South Korea may not be able to meet its 3 percent growth target this year amid a host of challenges ranging from poor employment figures to weak investment and consumption, local observers said Sunday.The forecasts by a growing number of private economists have raised speculation that Seoul may be compelled to downgrade its annual growth estimate -- a tell tale sign of things not going to plan. Skeptics said that Asia's fourth largest economy is further encumbered by a possible outflow of foreig

July 1, 2018