Outlook of Korea's export is fragile: UN ESCAP

In the wake of continued economic uncertainty regarding US President Donald Trump, the possible abolishment of the five-year Korea-US FTA and political disputes with China, the United Nations Economic and Social Commission for Asia and the Pacific has predicted a “moderate” economic growth forecast for the Korean economy. “As an export oriented economy (Korea), overall economic growth in past years has been clouded by prolonged weakness in global trade,” said ESCAP’

May 8, 2017

Korea has highest employment rate of seniors in OECD

South Korea has the highest employment rate of seniors among advanced countries due to the rapid aging and insufficient social welfare system, data said Monday.The employment rate of South Koreans aged 75 or older reached 17.9 percent in 2015, ranking first among 25 members of the Organization for Economic Cooperation and Development, according to the data compiled by the Paris-based agency. It is far higher than the OECD average of 4.8 percent. Mexico came next with 17 percent, followed by Japa

May 8, 2017

'Economic growth not leading to job creation'

South Korea’s economic growth is not leading to local job creation, as the manufacturing sector’s contribution to employment has weakened in recent years, data showed Monday.The number of employees needed for 1 billion won ($883,000) in gross domestic product fell to a record low of 17.4 in 2016, according to data from the Bank of Korea, Statistics Korea and the Korea Labor Institute.The figure has declined since 2008, when it first fell below 20. Employment elasticity, or the growth

May 8, 2017

[News Focus] Reshoring needed to creat jobs for youth

Recent data from the state statistics office and a local business lobby highlighted the need for the next administration to be installed following Tuesday’s presidential election to enhance the business-friendly environment if it wants to reduce the country’s rising youth unemployment.Figures suggested by a report from the Korea Chamber of Commerce and Industry showed Korean enterprises are increasingly creating growth and new jobs abroad rather than at home. The number of jobs

May 8, 2017

[Monitor] Number of prime-aged workers falls

The proportion of those in their prime working age out of the total economically active population dropped to its lowest point in the first quarter this year, Statistics Korea data showed Saturday.The number of those in the 25-49 year age group was 19.241 million in the period, dropping 0.4 percent from the same quarter last year. That accounted for 44.1 percent of total economically active people, which is 43.633 million. This is the lowest rate since data was first collected in the third quart

May 7, 2017

Korean economy on modest recovery track

The South Korean economy has been showing some modest signs of recovery thanks to brisk exports and investment but the momentum remains weak due to flaccid private consumption, a state-run think tank said Sunday."Exports and investment maintained high growth, signaling that economic activity has continued to expand at a moderate pace," the Korea Development Institute said in its monthly evaluation of the country's economic conditions. "Exports exhibited relatively high growth as s

May 7, 2017

Direct taxes account for record 55.3% of all dues collected by the govt. in 2016

Direct taxes collected by the state made up a record 55.3 percent of all dues collected in 2016, official data showed Sunday.The rise comes as the government reformed its tax credit rules on income and transfer taxes, the finance ministry said. It said the percentage of direct taxes to overall revenue earnings has been on the rise for the past three years. A rise in direct taxes generally reflects a more balanced form of taxation and better distribution of wealth.Last year, the ministry said tha

May 7, 2017

Land owned by foreigners up 2.3% last year

The total amount of South Korean land owned by foreigners increased 2.3 percent in 2016 compared to a year earlier, the government said Sunday.At the end of 2016, foreign investors owned a total of 234 million square meters of land worth 32.31 trillion won ($28.5 billion), accounting for 0.2 percent of the country's overall territory, the Ministry of Land, Infrastructure and Transportation said in a statement.  In the previous year, foreigners held 32.57 trillion won worth of land estimated

May 7, 2017

Korean finance minister urges measures against unfair trade practices

South Korea's chief economic policymaker has called for bold measures against unfair trade practices, expressing worries over growing protectionism by advanced economies.At an annual gathering of the Asian Development Bank in Yokohama, Japan, on Saturday, South Korean Finance Minister Yoo Il-ho also said Asian countries should raise their guard against short-term downside risk in order to regain their recovery momentum. "We need to take stern measures against unfair trade practices, which w

May 7, 2017

Jobless rate among inexperienced 20s, 30s hits record in Q1

SEJONG (Yonhap) -- The unemployment rate for the age group of 20s and 30s with no career experience hit a record high in the first quarter, due largely to a sluggish recruitment market and preference for hiring experienced workers, government data showed Saturday.The tally on the unemployed aged 20-39 who have never had a job came to 95,000 in the January-March period, recording the highest level since the government began to track related data in 1999, according to Statistics Korea. The number

May 6, 2017

Korean economy to gain further momentum after election: BOK chief

YOKOHAMA, Japan (Yonhap) -- The South Korean economy will gain further momentum after the presidential election set to take place early next week, central bank governor said Saturday, citing strong exports and improved consumer sentiment amid signs of recovery in global economies.“In the past, domestic consumption tended to gather momentum on positive anticipation over the economy in the first year of the new administration, since the new government had pushed its drive for boost measures,

May 6, 2017

Korea, Japan, China vow to resist protectionism

Chief financial policymakers of South Korea, Japan and China have vowed to fight against "all forms of protectionism" amid growing concerns of US President Donald Trump's protectionist policies. Finance ministers and central bank governors of the three nations made the pledge Thursday after their meeting on the sidelines of an annual gathering of the Asian Development Bank, according to their joint statement. The Northeast Asian powers agreed that "trade is one of the most importa

May 5, 2017

Korea preparing for every possibility, including renegotiation of Korea-US FTA

South Korea's trade minister said Thursday that the government is preparing for every possible scenario, including the renegotiation of a free trade deal with the United States."Seoul is studying every aspect of the pact and getting ready to deal with each case, including the renegotiation of the South Korea-US free trade agreement," Trade Minister Joo Hyung-hwan said in a meeting with experts and researchers from state-run think tanks and private institutions. "We will keep close

May 4, 2017

Korea, China, Japan finance ministers to hold talks in Yokohama

Finance ministers and central bank governors of South Korea, China and Japan will hold talks to coordinate policies and strengthen cooperation in the emergence of trade protectionism, Seoul's finance ministry said Thursday.The trilateral meeting will be held Friday in the Japanese city of Yokohama, with South Korea's Finance Minister Yoo Il-ho to be the chairperson, according to the Ministry of Strategy and Finance. Bank of Korea Gov. Lee Ju-yeol will also attend the gathering.The policymakers f

May 4, 2017

Services deficit hits record high amid THAAD fallout

South Korea’s chronic deficit in its services account hit a new high in the first quarter, as Chinese tourists shunned the country in the wake of Beijing’s apparent retaliation against the deployment of a US anti-missile system, the central bank said Thursday.According to the Bank of Korea, Asia’s fourth-largest economy saw its current account surplus halve to $5.9 billion in March from $10.5 billion a year earlier, mainly due to a widened deficit in its services account and a

May 4, 2017

Korea's current account surplus narrows to $5.93b in March

South Korea's current account surplus narrowed in March from a year earlier due to an increased deficit in the service balance, central bank data showed Thursday.The country's current account surplus reached $5.93 billion in March, compared with a surplus of $10.55 billion a year earlier, according to the preliminary data from the Bank of Korea.The figure represents a surplus for 61 months in a row. The current account is the biggest measure of cross-border trade.The BOK said the widened deficit

May 4, 2017

Korea's FX reserves up in April

South Korea's foreign exchange reserves rose slightly in April from a month earlier due to a hike in the value of non-dollar currencies when converted into the US greenback, central bank data showed Thursday.As of the end of April, the country's foreign exchange reserves came to $376.57 billion, up $1.27 billion from the previous month, the Bank of Korea said in a statement.Foreign exchange reserves consist of securities and deposits denominated in overseas currencies, as well as International M

May 4, 2017

Trade policies missing from presidential pledges

Conspicuously missing from the five major presidential candidates’ campaign pledges is how they would address increasing external trade pressures on the country, particularly the protectionism pursued by US President Donald Trump, upon winning next week’s election.During their debate on economic issues last week, the audience was apparently let down by their unfocused approaches to a rising US demand for renegotiating the bilateral free trade agreement that took effect in 2012.A day

May 3, 2017

Return of 50,000 won notes hits four-year high this year: BOK

The return of high denomination 50,000 won notes hit a four-year high early this year, the Bank of Korea (BOK) said Wednesday.The central bank said it retrieved 4.59 trillion won ($4.06 billion) worth of the notes in the first quarter of this year, while printing 6.96 trillion won in new bills.This represents a return rate of roughly 66 percent, up from 57.5 percent in the last three months of last year.The return rate of the notes first issued in June 2009 has been on the decline since 2013 fal

May 3, 2017

Korea central bank chief to attend global meetings in Japan

The head of Korea's central bank will attend three major policy meetings set to take place in Japan later in the week, the Bank of Korea (BOK) said Wednesday.BOK Gov. Lee Ju-yeol plans to participate in the 20th ASEAN-plus-three finance ministers and central bank chiefs meeting Friday, the 50th ADB annual gathering Saturday and the BIS meeting from Sunday to Monday, the bank said. At the meetings, Lee is expected to discuss pending issues in the financial markets and touch on measures to expand

May 3, 2017