Pilot project for coinless society gains momentum

South Korea's pilot project for a coinless society has gained momentum as it enhances convenience for ordinary people, the central bank said Thursday.Under the project that began in mid-April, consumers can deposit small change left from purchases of goods into their prepaid or mobile cards at convenience stores, discount stores and department stores, according to the Bank of Korea. It means that consumers won't have to carry coins in their pockets after making cash payments.The number of deposi

June 15, 2017

Korea’s employment rate improves, but optimism premature

The number of employed has surged by over 300,000 compared to a year ago, while the jobless rate declined. Youth employment, however, continues to stagger while the number of employees in manufacturing fell for the 11th month running, the data also showed. Statistics Korea said Wednesday that in May, a total of 26.8 million people were employed, up 375,000 from a year before.While the increase is slightly lower than that of March and April, it remains to hover above the 300,000 mark, the statist

June 14, 2017

SME exports to help create more jobs

The success of President Moon Jae-in’s economic policy to promote income-led growth will eventually hinge on whether and how to nurture more competitive and profitable small and medium-sized enterprises, economists say.More contributions by SMEs will be essential to creating quality jobs and boosting growth potential -- key tasks for the Moon administration.SMEs account for about 99 percent of corporations operating across the country, hiring nearly 90 percent of waged workers.Moon has vow

June 14, 2017

Korea's national assets up 5.8% on-year in 2016

South Korea's total assets rose 5.8 percent in 2016 from a year earlier on a large increase in nonfinancial assets, central bank data showed Wednesday.The country's national assets came to 13,078 trillion won ($11.6 trillion) at the end of 2016, up 715 trillion won from a year earlier, according to preliminary data from the Bank of Korea. The 2016 tally is eight times higher than the country's nominal gross domestic product for the same year.The increase came mostly from a rise in nonfinancial a

June 14, 2017

European Commission decides not to levy anti-dumping duties on Korean PTA

The European Commission has decided not to impose extra duties on purified terephthalic acid products sold by South Korean manufacturers following a months-long probe into dumping allegations, the foreign ministry said Wednesday.The European Union's executive body launched the investigation into South Korean PTA products, mostly used in making polyester, in August 2016 amid allegations raised by European rivals that they were being sold at lower-than-market prices.  The commission recently

June 14, 2017

Korea's jobless rate drops to 3.6% in May

South Korea's jobless rate dropped slightly in May as Asia's fourth-largest economy shows some signs of recovery, government data showed Wednesday.The unemployment rate stood at 3.6 percent last month, down 0.1 percentage point from the same month last year, according to the report compiled by Statistics Korea. From a month earlier, it fell 0.6 percentage point. The number of employed people reached a record 26.82 million in May, up 375,000 from a year earlier.The unemployment rate for young peo

June 14, 2017

Korea vows to take concentrated measures against US trade barriers

The South Korean government vowed Tuesday to take all necessary measures to deal with growing US barriers against its trade surplus and steel products."As the US government has been moving to strengthen trade restrictions and raise barriers, all government ministries need to formulate countermeasures against such developments," Deputy Trade Minister Lee In-ho said at a policy meeting in Seoul. "We have to be fully prepared as Washington's latest moves may affect its policy roadmap

June 13, 2017

Korea's top fiscal and monetary policymakers vow coordination

South Korea’s top fiscal and monetary policymakers vowed to coordinate in carrying out economic policies at a rare meeting Tuesday, highlighting that their views on the economy were near identical.Just one day after taking office, new Finance Minister Kim Dong-yeon visited the Bank of Korea’s head office in Seoul to have a lunch meeting with BOK Gov. Lee Ju-yeol. It was the first time in four years that a finance minister had an exclusive meeting with the central bank’s governo

June 13, 2017

Korea's money supply up 6.6% in April: BOK

The money supply in South Korea jumped 6.6 percent in April from a year earlier, the central bank said Tuesday.The nation's "M2" totaled 2,450.2 trillion won ($2.16 trillion) in April, compared to 2,299 trillion won a year earlier, the Bank of Korea said in a statement. Month-on-month, the money supply gained 0.6 percent, the statement said.The growth rate of the money supply has been on the decline since October 2015 as companies decreased domestic credit.M2 is a measure of the money

June 13, 2017

Korea's auto exports rise for fourth straight month in May

South Korea's auto exports rose for four months in a row in May on an upturn in global demand, government data showed Tuesday.The total value of vehicles shipped overseas reached $3.51 billion last month, up 3.6 percent from a year earlier, according to the data compiled by the Ministry of Trade, Industry and Energy. The number has remained in positive terrain since February when it rebounded to a 5.3 percent rise from a 4.8 percent fall in the previous month.Total vehicles shipped abroad also c

June 13, 2017

Tax revenue continues to rise through April

South Korea's national tax revenue continued to rise in the first four months of the year bolstered by an increase in corporate and value added taxes, the finance ministry said Tuesday.The government collected a total of 105.3 trillion won ($93.1 billion) in dues in the January-April period, up 8.4 trillion won from a year earlier, according to the Ministry of Strategy and Finance. The amount is equal to 43.5 percent of the 242.3 trillion won in tax revenue earmarked for 2017. Taxes collected so

June 13, 2017

Tougher lending rules to adversely affect economy: think tank

A move to tighten South Korea's lending rules to curb household debt could adversely affect the overall economy, a local think tank said Monday. In a report on the impact of lending rules and household debt, the Korea Economic Research Institute  warned against stricter regulations involving the debt-to-income ratio as changes will force borrowers spend less and further drag down the already fragile economy."In South Korea, home prices are higher than the norm for an economy of this si

June 12, 2017

Korea's direct investment in Vietnam tops $50b in 2016

South Korea has provided over $50 billion in foreign direct investment to Vietnam, data from Vietnam’s State Capital Investment Corp. showed Monday.The accumulated FDI by South Korean businesses in one of the fastest-growing economy in Asia reached $50.6 billion, spanning 5,773 projects from 1988 to 2016.In 2016, the volume of investment from South Korea reached some $6.9 billion, a 2.53 percent increase from 2015. It made up 30.8 percent of the entire FDI inflow into Vietnam. Japan a

June 12, 2017

[Monitor] Next year’s budget plan up 6%

The Ministry of Strategy and Finance has drawn up the government’s proposal for next year’s spending on Monday, at a size of 424.5 trillion won, 6 percent larger than that of this year‘s.One of the largest increases of 8.9 percent is to be made on public welfare, health and employment, boosting the spending to 141.1 trillion won.On the other hand, environmental and cultural spending will be cut by 3.9 percent and 5 percent. The largest budget decrease will be made on social ove

June 12, 2017

[Photo News] Visitors gather at model house for new town in Yangcheon-gu

June 12, 2017

[Photo News] Onion prices surge over 50%

June 12, 2017

Korea's finance minister to meet his Indian counterpart

Top economic policymakers of South Korea and India will hold talks later this week to discuss ways to enhance bilateral economic cooperation, the finance ministry here said Monday.In the fifth Seoul-New Delhi finance ministers' meeting to be held on Wednesday in Seoul, South Korea's Kim Dong-yeon and his Indian counterpart Arun Jaitley will share views on current macroeconomic situations facing both countries and economic policies being pursued to fuel growth. They will also talk about issues li

June 12, 2017

Korea joins privacy rules on corporate transfer of data among APEC economies

South Korea has acceded to a single privacy framework for the corporate transfer of data across Pacific Rim border nations, known as the Cross-Border Privacy Rules system, government officials said Monday.The CBPR system, endorsed by the Asia-Pacific Economic Cooperation in 2011, is aimed at facilitating e-commerce among the APEC countries and making the safe transfer of privacy data involving e-commerce and free movement of data. Under the system, participating businesses are required to implem

June 12, 2017

BOK chief hints at monetary tightening

South Korea’s central bank chief said Monday he may consider monetary tightening if the economic recovery accelerates, in an indication of a more hawkish stance.“Uncertainties about growth remain still high and inflation pressure from the demand side is not strong. Thus, we need to maintain expansionary monetary policy for the time being,” BOK Gov. Lee Ju-yeol said in a speech to celebrate the bank’s 67thh anniversary.“However, if economic recovery continues and sho

June 12, 2017

Controversy brews over tax increases

The 11.2 trillion won ($10 billion) extra budget unveiled last week is set to be funded mostly by excessive tax revenues without issuing state bonds and thus increasing the national debt that currently stands at 680 trillion won.This may help President Moon Jae-in persuade opposition lawmakers to agree to the additional fiscal spending plan, which was proposed less than a month after he took office to implement programs designed to create more jobs and boost the livelihoods of low-income familie

June 12, 2017