FTC fines W43b on nine global car carriers

South Korea's antitrust watchdog said Monday that it has imposed a combined 43 billion won ($37.8 million) in fines on nine global auto shipping companies for bid rigging and price fixing.The Fair Trade Commission said the nine car carriers allegedly colluded to participate in auctions arranged by carmakers, including General Motors Co., Renault Samsung Motors Co. and Toyota Motor Corp., between 2002 and 2012.The nine companies are Japan's Nippon Yusen Kabushiki Kaisha, Mitsui O.S.K. Lines, Kawa

Aug. 21, 2017

Credit loan growth jumps in August as mortgage rules tightened

Credit loans extended by the nation's five major banks jumped in the first 15 days of August, official data showed Monday, due apparently to government measures that tightened mortgage lending rules. South Korea tightened rules for home mortgages from Aug. 2 to rein in rapidly growing household debt and curb property speculation. As of last Wednesday, the outstanding balance of credit loans by the five retail banks, including KB Kookmin Bank and Shinhan Bank, stood at 93.1 trillion won ($81.8 bi

Aug. 21, 2017

Korea's exports up 11.6% in first 20 days of Aug.

South Korea's exports jumped more than 11 percent in the first 20 days of this month from a year earlier on brisk overseas sales of semiconductors and petroleum products, customs data showed Monday.Total outbound shipments reached $25.1 billion from Aug. 1-20, up 11.6 percent from the same period last year, according to the data compiled by the Korea Customs Service.Exports of computer chips surged 42.4 percent on-year and those of petroleum products and passenger cars soared 41.8 percent and 21

Aug. 21, 2017

Moon says quality jobs, reduced working hours keys to addressing low birthrate

President Moon Jae-in on Sunday reaffirmed his efforts to create new quality jobs, especially for the youth, calling it a part of efforts to fight the country's low birthrate."Creating good jobs is not only a way to give hope to young people, but also increase the number of taxpayers and consumers," the president said in a rare event attended by his ministers and top presidential aides to explain the new government's policy measures. Sunday's event also involved some 250 citizens who v

Aug. 20, 2017

Govt. pushes for further discounts of mobile fees

The government will begin expanding the mandatory discount of mobile phone fees starting next month, the ICT ministry said Friday, amid fierce opposition from local mobile operators.The discount rate of monthly mobile phone rates provided by the country's leading telecoms firms -- SK Telecom Co., KT Corp. and LG Uplus Corp. -- will be raised from the current 20 percent to 25 percent starting Sept. 15, according to the Ministry of Science and ICT.The decision to increase the discount rate -- whic

Aug. 18, 2017

Government vows to expand welfare budget

The government and ruling party on Friday vowed to draw up an expansive budget for next year in order to pursue President Moon Jae-in’s welfare programs, while cutting down costs in conventional land development projects.Representatives from the ruling liberal Democratic Party of Korea and the Ministry of Strategy and Finance sat together at the National Assembly to share their views on how the state operation budget should be allocated.“We have been drawing up the budget upon the be

Aug. 18, 2017

Finance minister promises easier environment for startups to promote innovative growth

Finance Minister Kim Dong-yeon pledged Friday to remove barriers and regulatory blocks so that entrepreneurs can easily start their own business and lead the country's innovative growth.Visiting the Tech Incubator Program for Startup Town in southern Seoul, Kim said he intends to double the TIPS-related budget for next year and establish more than 70 "Creative Labs."Innovative growth is one of the four pillar policies of the Moon Jae-in administration that took office in mid-May. TIPS

Aug. 18, 2017

USTR agrees to hold FTA special session in Seoul next week

United States Trade Representative Robert Lighthizer announced on Friday that the special session meeting of the Joint Committee under the Korea-US Free Trade Agreement will be held in Seoul on Aug. 22.　According to a USTR press release, the upcoming special session will, “consider matters affecting the operation of the KORUS Agreement, including possible amendments and modifications to resolve several problems regarding market access in Korea for US exports and, most importantly, to addre

Aug. 18, 2017

Diplomatic normalization spurs Beijing-Seoul economic ties

China has emerged as South Korea's No. 1 trading partner after their diplomatic relations were normalized in 1992 with their bilateral trade volume skyrocketing over 33 times in the past 25 years, industry data showed Friday.The trade volume between the two soared to $211.4 billion in 2016 from $6.4 billion in 1992. It far exceeded $109.7 billion in trade with the United States and $7.18 billion with Japan, according to data from the Federation of Korean Industries.South Korea posted trade surpl

Aug. 18, 2017

Korea's economic dependence on China stirs worries about risks

South Korea's growing economic dependence on China has made it increasingly vulnerable to risks, including Beijing's retaliation for Seoul's decision to deploy a US anti-missile system and an economic downturn in the Chinese economy. The dilemma over how to manage both economic and political relations with China is deepening 25 years after Seoul and Beijing established diplomatic relations. According to data by the Korea International Trade Association, South Korea's exports to China, excluding

Aug. 18, 2017

Household credit growth accelerates in July despite tighter

South Korea's household credit growth accelerated on month in July, the financial regulator said Friday, despite tighter lending rules aimed at reining in household debt. Household debt grew by 9.5 trillion won ($8.3 billion) in July, when the tighter lending rules came into force, compared to growth of 7.6 trillion won in June, according to the Financial Services Commission. Compared to a year ago, however, household credit edged down 0.04 percent. Household loans by banks rose by 6.7 trillion

Aug. 18, 2017

Seoul's home auction market cools after anti-speculation steps

A package of government anti-speculation measures targeting mainly Seoul has poured cold water on the apartment auction market in the South Korean capital, a market tracker said Friday.Early this month, the government designated all 25 wards in Seoul and two cities -- Sejong and Gwacheon, south of Seoul -- as "speculative or overheated speculative districts" in a desperate bid to cool the overheating housing market. In particular, 11 districts in Seoul and Sejong were designated "

Aug. 18, 2017

S. Korea, US to begin talks on possible FTA amendment next week

WASHINGTON -- South Korea and the United States will begin talks next week to discuss possible revisions to their bilateral free trade agreement, the US trade representative said Thursday.The special session will be held in Seoul on Tuesday upon Washington's request and address US concerns about a trade deficit with the Asian ally. US Trade Representative Robert Lighthizer made the request last month."Ambassador Lighthizer and Korean Trade Minister Kim Hyun-chong will open the meeting via a

Aug. 18, 2017

[News Focus] Moon denies tax hike plan, leaves room for possibility

For President Moon Jae-in, South Korea’s first progressive state chief in almost a decade, challenging goals include reducing economic inequality and expanding state-led public welfare, without financially burdening the average taxpayer.To achieve the goals, the president has been saying that his set of economic democratization plans do not require an extra tax increase, while leaving room for “further discussion” on the matter. “It is absolutely crucial to stabilize real

Aug. 17, 2017

IP war between US and China likely to impact Korean exports: report

With the looming possibility of a trade war between the US and China over intellectual property rights, the Korea International Trade Association says prospects are high that Korean companies will see a consequent slump in export figures. 　In a report Wednesday, KITA researchers said, “We need to take action,” claiming that if the US unilaterally imposes trade sanctions against China -- and if a full-scale trade dispute is sparked, the economic battle between the two economies is lik

Aug. 17, 2017

International IP court conference to kick off next month

The Patent Court of Korea is gearing up to launch the 2017 International IP Court Conference on Sept. 6 in Daejeon under the theme of “court, IP and business.” 　This year’s conference will feature four sessions: cooperation and harmonization among IP courts; new challenges in IP litigation from a business perspective; recent issues on pharmaceutical and biotech patents; and patentability and remedies with a focus on the ICT industry.The upcoming international forum will also fe

Aug. 17, 2017

Banks' foreign currency deposits rise in July

Foreign currency deposits held by banks operating in South Korea rose in July from a month earlier as exporters increased their deposits of dollar-denominated earnings, central bank data showed Thursday.Outstanding foreign currency deposits held by local lenders, domestic and foreign, reached $69.11 billion in July, up $5.5 billion from a month earlier, the Bank of Korea said in a statement.Broken down, foreign currency deposits held by domestic banks came to $59.38 billion in July, up from $54.

Aug. 17, 2017

Corporate tax hike contradicts global trend

The government’s plan to impose more levies on large companies will undermine their competitiveness amid a rising global trend of tax reductions and further distort the country’s taxation structure, analysts say.A draft tax code revision unveiled early this month proposes raising the corporate tax rate for businesses with taxable profit of 200 billion won ($176 million) or more to 25 percent from the current 22 percent.The proposal goes against moves by most major economies to cut co

Aug. 16, 2017

Koreans expected to spend more on leisure in Q3

South Koreans are expected to jack up their spending on sports and tours in the third quarter of this year, a survey showed Wednesday, as the country's key consumer sentiment index reached a six-year high last month.According to the survey conducted by the Korea Culture & Tourism Institute, the expected consumer sentiment index in the culture, sports and tourism sector for the July-September period came to 110.1, up 3.2 points from a year earlier.  A reading above 100 means optimists ou

Aug. 16, 2017

US trade deficit would be ‘significantly higher’ without KORUS FTA: Overby

　Amid ambiguity regarding the US President Donald Trump administration’s vow to alter certain terms of the Korea-US Free Trade Agreement, Tami Overby, senior vice president for Asia at the US Chamber of Commerce, reiterated her stance that the trade deal continues to be mutually beneficial to both nations. 　“What the Korea-USA FTA provides to American companies in Asia is a launching pad,” Overby said during an interview with Yonhap News Agency on Tuesday.　“US businesses

Aug. 16, 2017