Korea ups economic growth forecast to 3% for 2017

South Korea on Tuesday raised its economic growth forecast for this year to 3 percent, pledging to create inclusive growth with its four major economic policy pillars of income-led growth, job creation, a fair economy and innovative growth.The Ministry of Strategy and Finance on Tuesday drew up the Moon Jae-in government’s economic policy directions, in which it raised the nation’s growth forecast from 2.6 percent to 3 percent on the back of an uptrend in exports and an incoming fisc

July 25, 2017

Consumer sentiment in ‘phase of adjustment’: BOK

South Korea’s composite consumer sentiment index inched up 0.1 point to 111.2 this month from June, indicating a phase of adjustment in anticipation for President Moon Jae-in’s new policies, the Bank of Korea said Tuesday.The CCSI has moved upward six straight months and been in optimistic terrain for four consecutive months, inching closer to the 111.4 recorded in January 2011. However, the increase in July was close to “insignificant,” Park Sang-woo, an official at the

July 25, 2017

Seoul counteroffers on Washington’s FTA amendment call

As part of his first duties in office, the newly appointed Minister of Trade, Industry and Energy Paik Un-gyu sent a letter to his US counterpart agreeing to hold a joint committee on the two countries’ free trade agreement, but with a different timeline, venue and agenda, the ministry said Tuesday. 　Making no mention of trade revision deliberations, the Seoul government suggested instead that the committee be used to discuss how to objectively analyze and assess the effects of the KORUS F

July 25, 2017

Korean government to unveil tax hike plan next week: finance minister

The South Korean government will unveil its plan to increase taxes for the super rich and biggest businesses next week to secure funds for expanded welfare costs over the next five years, the country's top economic policymaker said Tuesday."The tax-hike issue has been raised in government policy meetings, with the ruling party calling for it," Finance Minister Kim Dong-yeon said at a press conference on the new Moon Jae-in government's economic policy plan. "The ministry is consid

July 25, 2017

Senior employment rate up 1.1% in May

The employment rate of senior citizens in South Korea gained ground in May from a year earlier as a growing amount remained in the job market or sought work amid the rapidly aging population, government data showed Tuesday.The employment rate of those aged between 55 and 79 reached 54.8 percent as of May, up 1.1 percentage points from a year ago, according to the data compiled by Statistics Korea.The number of the employed in the age group rose 424,000 to 7.08 million over the cited period, whil

July 25, 2017

Korea to cut credit-card processing fees for small merchants

South Korea will cut credit card processing fees for small merchants starting later this month, in the latest move to push forward pro-consumer regulations against commission fees charged by financial service providers, the financial regulator said Tuesday. The move is in line with a campaign pledge by President Moon Jae-in that the new administration aims to ease financial burdens on consumers by assessing "propriety" of commission fees charged on banking and financial services. 

July 25, 2017

Moon urges swift execution of extra budget for maximum output

President Moon Jae-in on Tuesday urged swift execution of the extra budget recently approved by the parliament, also stressing the need to maximize the efficiency and effectiveness of the additional spending."Regarding the supplementary budget, the issue is now to execute it with speed. I want you to now show that the extra budget will in fact lead to new jobs, a reduction in the youth jobless rate and economic growth with actual proof," the president said at the start of a weekly Cabi

July 25, 2017

Effective corporate tax rate falls under official rate, data shows

The effective corporate tax rate for the country's largest companies fell below the official rate of 22 percent last year due to various adjustments, data from a conglomerate research firm showed Tuesday.Chaebul.com analyzed 131 companies who earned over 200 billion won ($179.37 million) in pre-tax profits and found their average corporate tax rate came to 18.9 percent after deductions.The selected companies included 11 affiliates of Hyundai Motor Group, nine from Samsung Group, seven under SK,

July 25, 2017

Fed‘s move to cut asset holdings to increase rates in emerging markets

The move by the US Federal Reserve to reduce its massive asset holdings is expected to increase interest rates in emerging markets as a strong US dollar could spark equities fund outflows, a local think tank said Tuesday. The Fed is widely predicted to begin gradually scaling back the size of $4.5 trillion in Treasury bonds and other bond assets from September, as it has already raised interest rates from record lows set following the 2008 financial crisis. According to a report by local think t

July 25, 2017

Korea revises up economic growth forecast to 3% for 2017

South Korea on Tuesday raised its growth forecast for 2017 by 0.4 percentage point to 3 percent as Asia's fourth-largest economy has been basking in brisk exports led by the global economic recovery. For the next year, the government expects the economy to pull off around 3 percent growth, according to the new economic policy plan endorsed by the Cabinet."In 2017, the economy will likely grow an improved 3 percent on the back of an upturn in exports and investment and fiscal expansion broug

July 25, 2017

Korean firms step up US lobby as trade issues take center stage

S. Korea's big name exporters have stepped up their lobbying activities in the United States after the Donald Trump administration took office, data showed Tuesday, apparently to smooth out potential trade issues.US Senate Lobbying Disclosure Database showed that tech giant Samsung Electronics spent $1.47 million on lobbying activities in the first half of this year, triple the $490,000 spent in the same period in 2016. The total this year breaks down to $680,000 in the first quarter and $790,00

July 25, 2017

Korea suggests US carry out joint study on FTA‘s economic effect

South Korea suggested the United States carry out a joint study on the economic impact of the Seoul-Washington free trade agreement before starting talks on its amendment, Seoul's trade ministry here said Tuesday."Regarding your request to convene a special session of the Joint Committee under the KORUS FTA, Korea agrees to hold the requested Joint Committee in accordance with the due procedures set in the agreement," Minister of Trade, Industry and Energy Paik Un-gyu said in a letter

July 25, 2017

Consumer sentiment jumps to more than 6-year high in July

Korea's key consumer sentiment index improved for a sixth consecutive month in July to reach more than a six-year high, a central bank survey showed Tuesday, as the economy shows signs of improvement.The composite consumer sentiment index for July came to 111.2, up from 111.1 a month earlier, according to the survey from the Bank of Korea. The July figure marked the highest since January 2011 when the index stood at 111.4.A reading above 100 means optimists outnumber pessimists.Korea's exports h

July 25, 2017

Korea to repay W3.5tr won worth of state bonds next month before maturity

South Korea plans to repay 3.5 trillion won worth of state bonds next month ahead of their maturity, the finance ministry said Monday.  The government will repay 1.5 trillion won worth of treasury bonds on Aug. 2, 1 trillion won worth of bonds on Aug. 11 and 1 trillion won worth of debt on Aug. 23. The treasury bonds include five-year bonds that will mature in March 2018 and three-year bonds that will mature in June 2018, according to the ministry. (Yonhap)

July 24, 2017

[News Focus] Energy policy swings with political winds

Korea’s energy policy has made an abrupt turn with changes of government in the past few decades, leaving the country short of securing stable, efficient and environmentally sustainable supply of energy.According to an index released by the World Energy Council last year, it ranked No. 72 and No. 88 out of 125 countries in terms of energy security and environmental sustainability, respectively.In the latest twist to energy policy, which has swung every five years, President Moon Jae-in&rsq

July 24, 2017

Survey shows employees fear job cuts following minimum wage hike

More than half of Korea’s part-time employees are concerned about potential job cuts due to the government’s minimum wage hike starting next year, according to a survey conducted by Albamon, a portal site operated by Job Korea, on Monday. 　The survey of 3,955 part-time workers and 656 employers showed that 72.9 percent of participating part-time workers expressed concerns about the upcoming minimum wage increase, while 90.5 percent of employers said they were concerned. 　Earlier this

July 24, 2017

Underprivileged more reliant on non-banking loans, exposed to rate hikes

People with low income, senior citizens and the self-employed are more reliant on non-banking institutions when taking out loans, exposing themselves to interest rate hikes, an analysis from Korea Institute of Finance showed on Monday.Data showed that 55 percent of household loans last year borne by the bottom 20 percent income group came from non-banking lenders such as savings banks, cooperatives, insurance companies and private lenders. This is much higher than the 34.2 percent average for al

July 24, 2017

US trade deficit with Korea not result of FTA: experts

The United States' trade deficit with  Korea is not a result of their bilateral free trade agreement, two experts here have said, dismissing President Donald Trump's push to revise the deal.Gary Hufbauer, a senior fellow at the Peterson Institute for International Economics, and Euijin Jung, a research analyst at the same institution, made the case in a contribution to The Hill last week, saying it "makes no sense" to try to modify the FTA now."Trump sees US bilateral trade d

July 24, 2017

[Monitor] Tax increase plan by ruling party

The ruling Democratic Party of Korea‘s Chairwoman Rep. Choo Mi-ae last week proposed a new tax plan levying higher taxes for the rich and large conglomerates during a finance meeting with the government.

July 23, 2017

Korean SMEs annual 'indirect exports' top 80 tln won: KITA

South Korean small and medium-sized enterprises "indirectly exported" over 80 trillion won ($71.5 billion) worth of goods in 2015 by supplying raw materials or intermediate products to local exporters, an industry report showed Sunday. According to the report by the Korea International Trade Association, all production-related materials supplied to exporters, was valued at 170.8 trillion won ($152.6 billion) in the one-year period with SMEs responsible for 82.7 trillion won worth of go

July 23, 2017