Kakao Bank becomes top provider of household loans in Aug.

Kakao Bank, South Korea's second Internet-only bank, has emerged as the leading provider of household loans this month, far outpacing its sole competitor and traditional lenders, data showed Wednesday.According to the data from the Financial Supervisory Service, Kakao Bank saw its household lending increase by 540 billion won ($473 million) in the first 11 days of this month, the largest amount among 19 lenders in the country.It accounted for 24.9 percent of the 19 lenders' combined household le

Aug. 16, 2017

Korea vows to take measures to stabilize financial markets

South Korea's finance minister and central bank governor pledged Wednesday to take measures to stabilize financial markets, if necessary, amid lingering tensions between North Korea and the United States."The government and the Bank of Korea plan to make aggressive efforts to stabilize financial markets by closely monitoring domestic and foreign financial markets," BOK Gov. Lee Ju-yeol said in a meeting with Finance Minister Kim Dong-yeon in Seoul.Kim also said the government will take

Aug. 16, 2017

Ratio of long-term unemployed hits 18-year high in July

The ratio of long-term unemployed people to the total jobless in South Korea reached an 18-year high in July, data showed Wednesday, as companies were reluctant to offer quality jobs amid uncertainties over their future.The long-term unemployed numbered 180,000 in July, accounting for 18.7 percent of the total jobless and marking the highest figure since 19.7 percent for September 1999, shortly after the country's foreign exchange crisis, according to the data from Statistics Korea.Long-term une

Aug. 16, 2017

S. Korea's risk premium hits 18-month high on N. Korea woes

South Korea's credit default risk has hit an 18-month high amid saber-rattling between the United States and North Korea over the latter's weapons program, data showed Wednesday.The credit default swap (CDS) premium for South Korean foreign exchange stabilization bonds with a five-year maturity reached 70 basis points as of Monday, the highest level since 71 basis points on Feb. 25, 2016, according to the data by the Korea Center for International Finance.The CDS premium jumped 13 basis points o

Aug. 16, 2017

[Monitor] Koreans continue to overwork

Although the proportion has continued to decline, 1 in 5 of those employed in South Korea work at least 54 hours a week, data from Statistics Korea showed.Average weekly working hours have been falling since the introduction of the five-day workweek in 2004, but the decline rate has become stagnant since the system was fully adopted in 2010.

Aug. 15, 2017

Korea's govt. to offer W100b won in special credit to help startups, hiring

South Korea's government said Tuesday that it will provide 100 billion won ($87.6 million) in special credit guarantees to young entrepreneurs that are setting up new companies and hiring workers.The plan made possible by the passage of the extra budget through parliament last month, is being pushed forward by the Ministry of SMEs and Startups, and aims to create good jobs by launching competitive venture businesses. The ministry said business owners who are 39 years old and younger, and have hi

Aug. 15, 2017

Korea logs 66 straight months of trade surplus in July

South Korea's trade surplus remained in the black for the 66th month in a row in July amid brisk outbound shipments, customs data showed Tuesday.The country's trade surplus came to $10.3 billion last month, slightly down from a surplus of $10.7 billion tallied a month earlier, according to the data from the Korea Customs Service.Asia's fourth-largest economy has posted a monthly trade surplus since February 2012. It logged $6.7 billion in trade surplus with Southeast Asian countries in July, inc

Aug. 15, 2017

Korean economy’s recovery weakening

A recent string of economic indicators point to the weakening recovery of the Korean economy, casting doubts over the government’s expectation that this year’s growth rate will reach 3 percent.In its monthly economic assessment report released last week, the Ministry of Strategy and Finance said the recovery pace “was not solid,” as an upturn in exports and facility investment was offset by weak industrial output.The cautious assessment followed analysis made earlier by t

Aug. 14, 2017

S. Korea‘s finance minister calls for vigilance against volatility over N. Korea’s threats

South Korea's top economic official on Monday called for vigilance against potential volatility in the local financial market over heightened tensions between North Korea and the United States."The impact of (North Korean threats) on the financial and foreign exchange market is now expanding to the global level. A small shock will highly likely intensify market volatility,"Finance Minister Kim Dong-yeon said in a policy meeting in Seoul."The government will not let its guard down

Aug. 14, 2017

Nonbanks' loans hit record high in H1

Loans extended by savings banks, insurers and other nonbanking institutions hit a record high in the first six months of the year, South Korea's central bank said Monday.The data compiled by the Bank of Korea showed that outstanding loans extended by nonbanking financial companies reached 763.6 trillion won ($671 billion) as of end-June, the highest since 1993 when the central bank began to compile related data. It marks a 5.4 percent, or 39.1 trillion won, rise from the end of last year.It is w

Aug. 14, 2017

Moon seeks to boost economy through job creation, income hike

President Moon Jae-in has championed job creation and increased household income as a way to put South Korea on the path of sustainable economic growth that can benefit all people.Moon has vowed to create 810,000 "quality" jobs in the public sector during his single five-year term in office that ends in 2022.Last month, the National Assembly, despite some objections, passed the 11.03 trillion-won ($9.8 billion) supplementary budget bill that aims to create 2,575 central government jobs

Aug. 14, 2017

Korea's corporate watchdog to introduce punitive damages to distribution industry

South Korea's corporate watchdog said Sunday that it will introduce a punitive damages system to the local distribution industry as part of its efforts to root out unfair business practices and strengthen consumer protection.The Fair Trade Commission said it will revise related laws to impose punitive damages of up to three times the actual damage from business practices such as an unfair payment cutback of supplied goods and returns that occur between large shopping mall operators and small sho

Aug. 13, 2017

Gold prices hit 4-month high on geopolitical risks

Escalating geopolitical risks surrounding North Korea's nuclear and ballistic missile programs have caused gold prices to soar in South Korea and led to a surge in trade in the precious metal, the local exchange said Sunday.According to the Korea Exchange, a gram of gold changed hands at 47,210 won ($41.20) on Friday, the highest level since April 20, when speculation of a crisis on the peninsula swirled.Last week alone, gold prices jumped 3.18 percent from the previous week, marking the first t

Aug. 13, 2017

Sales of gold bars rising amid rising tension on peninsula

Sales of gold bars, regarded as a safe haven for investors, are increasing in South Korea amid escalating tension with North Korea, industry sources said Saturday.The Korea Gold Exchange, a local trader, said the average daily sales of 100-gram gold bars reached 250 units since Wednesday, rising sharply from 50 units on average.  Industry watchers said the demand for smaller gold bars is increasing as they are easier to carry compared to kilo-level products. A 10-gram gold bar is currently

Aug. 13, 2017

BOK chief says closely watching tensions over N. Korea

The governor of South Korea's central bank said Thursday that he has been closely watching North Korea risks as Pyongyang and Washington traded harsh rhetoric.BOK Gov. Lee Ju-yeol said he remained alert on economic and financial fallout the latest standoff over North Korea's nuclear and missile program could have on Asia's fourth-largest economy.Lee made the comments in an opening ceremony of an exhibition of old books at Seoul National University.  Escalating tensions between North Korea a

Aug. 10, 2017

Asiana Q2 loss widens on FX losses

Asiana Airlines Inc. said Thursday its losses widened in the second quarter from a year earlier due to foreign currency-related losses.Net loss reached 74.7 billion won ($65.3 million) in the April-June period, compared to a loss of 26.7 billion won a year earlier, the company said in a statement. Operating income, on the other hand, surged 49 percent on-year to reach 42.8 billion won, with sales rising 8.5 percent to 1.49 trillion won over the cited period. The operating income and sales for th

Aug. 10, 2017

Jeju sees 1st drop in retail sales in Q2 on THAAD fallout

Retail sales on the southern island of Jeju fell in the second quarter for the first time ever on a Sino-Korean row over the deployment of a US missile defense shield, government data showed Thursday.According to the data by Statistics Korea, retail sales on Jeju declined 3.2 percent in the April-June period from a year earlier.It represents the first on-year decline since the statistical agency started compiling related data in the first quarter of 2010.The agency attributed the decline to a pl

Aug. 10, 2017

FTC slaps W796m fines on two bid rigging companies

South Korea's antitrust watchdog said Thursday that it has imposed a combined 796 million won ($699,000) in fines on two local electronics part suppliers for rigging bids for public railway construction projects.The two companies -- Yookyung Control Co. and Hyukshin Engineering Co. -- allegedly colluded to participate in five bids to supply electronic interlocking equipment arranged by state-run Korea Railroad Corp., according to the Fair Trade Commission. Interlocking equipment is a railway sig

Aug. 10, 2017

BOK provides W4.6tr to small firms in assistance

South Korea's central bank said Thursday that it has decided to extend 4.6 trillion won ($4 billion) to small and medium-sized firms through commercial lenders in the latest move to boost potential growth numbers.The monetary policy board of the Bank of Korea said 3.6 trillion won will be provided to small and medium enterprises that are seeking to find new growth drivers and contribute to job creation.The decision comes as Asia's fourth-largest economy has been struggling to prop up growth and

Aug. 10, 2017

Imported commercial vehicles drops in July

A total of 378 imported commercial vehicles, mostly trucks, were sold in South Korea last month, down 11.1 percent from the previous month, industry data showed Thursday.According to the data compiled by the Korea Automobile Importers and Distributors Association, Volvo topped the list with a total of 137 trucks sold, followed by 105 vehicles from MAN, 83 from Scania, 40 from Mercedes-Benz and 13 from Iveco.By type, bodybuilders accounted for 180 vehicles, followed by 131 tractors, 62 cargo truc

Aug. 10, 2017