Credit unions see combined profit slightly fall in H1

South Korea's credit unions, or member-owned financial cooperatives, saw their combined net profit fall 1.3 percent on year for the first half of this year, due to a rise in loan-loss provisions, data showed Tuesday. The combined net profit of 2,258 credit unions, including Nonghyup and Suhyup banks, stood at 1.21 trillion won ($1.06 billion) for the January-June period, down 16.1 billion won from a year earlier, according to the data by the Financial Supervisory Service. Their combined loan-los

Sept. 5, 2017

Korea‘s current account surplus narrows to $7.26b in July

South Korea's current account surplus narrowed in July from a year earlier due to an increased deficit in the services balance, central bank data showed Tuesday.The country's current account surplus reached $7.26 billion in July, compared with a surplus of $8.41 billion a year earlier, according to the preliminary data from the Bank of Korea.The figure represents the 65th straight month of the balance being in the black. The current account is the biggest measure of cross-border trade.The BOK at

Sept. 5, 2017

Korea's growth ranking among OECD tumbles in Q2

South Korea's economic growth ranking among major advanced and emerging economies plunged 10 spots in the second quarter from three months earlier as its recovery lost ground, data showed Tuesday.Asia's fourth-largest economy expanded 0.6 percent on-quarter in the April-June period, compared with a 1.1 percent expansion for the first quarter, according to the data from the Organization for Economic Cooperation and Development.It was the 18th-highest on-quarter gain among 27 OECD member nations w

Sept. 5, 2017

No new import restriction imposed on S. Korea for two months

South Korea has faced no new import restrictions or related investigations by foreign countries for the past two months in a positive sign for the export-driven economy, data showed Tuesday.No South Korean products were subjected to fresh import regulations in the form of anti-dumping duties, countervailing duties, safeguards or a combination of them during the July-August period, according to the data from the Korea International Trade Association .Since reporting zero cases, the number of impo

Sept. 5, 2017

Silver bar sales rise 10-fold as middle class join flight to safety

Following North Korea’s nuclear weapons test Sunday, sales of silver bars soared by 10 times on Monday, according to the Korea Gold Exchange.Silver bars are in high demand among middle-class investors seeking an affordable alternative to gold bars as a safety haven currency during times of geopolitical uncertainty.KGE said sales of 1-kilogram gold bars numbered 194 on Monday morning alone, rising sharply from daily sales of 20 on average.A 1-kilogram silver bar was trading at around 840,00

Sept. 4, 2017

Trump’s KORUS FTA opt-out a ‘real possibility’: expert

Amid continued ambiguity regarding the fate of the Korea-US Free Trade Agreement, some industry experts are predicting high odds that US President Donald Trump may actually terminate the trade deal, following North Korea’s escalating threats, which are adding tension to the political and economic climate between South Korea and the US. 　“While some people view Trump’s threats as being bluffs, in my expert opinion, Trump deciding to back out of the Korea-US Free Trade Agreement

Sept. 4, 2017

Korean firms’ woes over THAAD deepen

South Korean companies struggling with restraints on their businesses in China are likely to come under more pressure with the deployment of additional launchers of a US anti-missile battery here set to begin as early as this week.Beijing seems unlikely to ease its stance on the issue in the wake of North Korea’s sixth and most powerful nuclear test Sunday.China began to take retaliatory measures in July last year when Seoul agreed to deploy the US missile shield known as the Terminal High

Sept. 4, 2017

Korea vows strong market-stabilizing actions over NK tension

South Korea’s economic and financial authorities vowed Monday to take stern measures to stabilize the market in response to uncertainties triggered by North Korea’s sixth nuclear test the previous day.“(The North Korean nuclear issue) may have not only a short-term influence on the financial and foreign exchange markets, but also a negatively impact upon the real economy,” Deputy Prime Minister for Economic Affairs and Finance Minister Kim Dong-yeon said at a meeting of t

Sept. 4, 2017

[Monitor] Public split on suspension of nuclear reactors

A recent set of surveys by Gallup Korea showed the public remains largely split on the Moon Jae-in government’s drive to suspend construction of nuclear reactors as part of its new energy plan.The government-led committee has also set out to conduct its own survey through a consortium of research firms to collect a wide range of public opinion before reaching a final decision on Shin-Kori reactors 5 and 6.

Sept. 4, 2017

Korea's mobile purchases hit record high in July

Purchases made through mobile devices in South Korea hit a fresh record high in July as smartphones are widening their presence in the world's most wired country, government data showed Monday.Mobile transactions through smartphones and tablets reached a record 4.01 trillion won ($3.6 billion) in July, up 35.1 percent from a year earlier, according to data from Statistics Korea.The total amount of mobile transactions accounted for an all-time high of 62 percent of all online purchases made in Ju

Sept. 4, 2017

Regulator to cut interest on overdue debt, premiums of indemnity medical insurance

South Korea's top financial regulator said Monday it will cut the interest on overdue debt and the premiums of indemnity medical insurance in line with the government's policy of easing the financial burdens for low-income earners. Choi Jong-ku, chairman of the Financial Services Commission, also said the FSC will actively encourage insurance firms to return unclaimed insurance benefits worth 7.6 trillion won ($6.71 billion) to customers. Interest on overdue debt will be lowered by the end of th

Sept. 4, 2017

Religious groups set to pay W64b in taxes next year: report

Taxing religious groups will add 64.7 billion won ($57 million) to state coffers annually starting next year, a report said Monday.The Moon Jae-in government has pledged to levy taxes on the clergy from 2018 onwards as part of its drive for equitable taxation, although people working for churches and temples have been exempted from paying income tax until now, as their work has been regarded as a spiritual service, not labor."We estimate the amount of taxes to be paid by employees of religi

Sept. 4, 2017

Quarter of Korean salaried workers did not use vacation time: report

Nearly a quarter of salaried workers in South Korea did not use their vacation time from August 2015 through July of last year, a report by a local culture and tourism organization said Monday.The findings, based on a survey of 4,357 people nationwide by the Korea Culture and Tourism Institute, showed 23.9 percent of those checked said they did not use their vacation time. The lack of free time was reflected in South Koreans putting in some of the longest work hours in the world at the time the

Sept. 4, 2017

Korea set to take immediate measures to stabilize financial markets

South Korea's finance minister pledged Monday to take immediate measures to stabilize the market, if the need arises, amid escalating tensions after North Korea conducted its sixth nuclear test."The North Korean issue is spreading across the world," Finance Minister Kim Dong-yeon said at a meeting with Bank of Korea Governor Lee Ju-yeol and Financial Services Commission Chairman Choi Jong-ku. "It may not only have a short-term impact on the financial and foreign exchange markets,

Sept. 4, 2017

Number of temps at public agencies increase in Q2

The number of nonregular workers at South Korea's public institutions rose in the second quarter from three months ago despite the government's push to cut them, with over half of them posting gains, government data showed Monday. According to the government portal All Public Information in One, temporary employees at 355 public organizations stood at 39,681 as of the end of June, up 1,765 from the first quarter.Of the total, 180 institutions, or 50.7, hired more nonregulars during the three-mon

Sept. 4, 2017

Financial regulator steps up monitoring of markets after N. Korea‘s 6th nuke test

South Korea's financial regulator said Monday it has begun monitoring markets around the clock and will swiftly act if necessary, after North Korea spiked tensions by conducting its sixth and most powerful nuclear test. Zhin Woong-seob, governor of the Financial Supervisory Service, held a meeting earlier in the day to review contingency measures. "It is difficult to predict the situation on the Korean Peninsula as North Korea went ahead with a nuclear test, despite intense sanctions by the

Sept. 4, 2017

[News Focus] Economy beleaguered by nuke test, US trade tension

South Korea’s economy faced serious threats on two fronts Sunday, following North Korea’s strongest-ever nuclear test, as well as increased indications from the United States that their bilateral free trade deal was under threat.Such challenges, combined with the Korea-China tension over the Terminal High Altitude Area Defense and the prolonged slow growth trend, is likely to further weigh down on Asia’s fourth-largest economy.Deputy Prime Minister for economic affairs and Fina

Sept. 3, 2017

[Newsmaker] Trump’s talk of scrapping FTA adds strain on Korea

Tension heightened between Seoul and Washington over the weekend, upon reports by the US media that said President Donald Trump is considering a possible withdrawal from the Korea-US Free Trade Agreement.With many viewing Trump’s gesture as an attempt to gain an upper hand in stalled renegotiations, a Seoul official with the Trade Ministry said that South Korea has no change in its policies on the FTA with the United States despite Trump’s hints.The US president on Saturday told repo

Sept. 3, 2017

[Ask a Lawyer] What permanent establishment means to multinational companies

Q: Why does a multinational need to pay attention to permanent establishment issues?A: A permanent establishment is a fixed place of business through which the business of an enterprise is wholly or partly carried on. Korean tax laws state that the corporate tax should be imposed on a foreign entity that has a permanent establishment in Korea. Multinationals have reduced taxes by eroding their tax bases in countries with high tax rates by transferring profits earned there to subsidiaries in coun

Sept. 3, 2017

[Newsmaker] Trump says to weigh withdrawal from S. Korea trade deal

US President Donald Trump said Saturday he would meet with his advisers next week to weigh a possible withdrawal from the US free trade agreement with South Korea.Trump made the remark to journalists during a trip to hurricane-hit Houston, Reuters said, shortly after the move was reported by the Washington Post. Citing multiple sources close to the process, the paper said Trump has instructed advisers to prepare for the withdrawal, but several White House officials are trying to stop him. &

Sept. 3, 2017