S. Korea to freeze Q3 electricity rates amid mounting public burdens

South Korea's state power firm said Wednesday it would freeze electricity rates for the third quarter in a move to ease the burdens on people following two consecutive quarters of hikes. The planned freeze came as the government jacked up electricity rates by 5.3 percent on-year for the second quarter, or by 8 won per kWh, following a 13.1 won increase per kWh in the first quarter due to high global energy costs and the mounting losses of the Korea Electric Power Corp. KEPCO decided to fix

June 21, 2023

Mounting national debt erodes S. Korea's competitiveness: report

South Korea's global competitiveness ranking fell by one notch this year, as the country suffers from an expanding fiscal deficit, a report showed Tuesday. Korea ranked 28th in terms of global competitiveness among 64 countries surveyed, according to the 2023 report by the International Institute for Management Development. Korea’s ranking in government efficiency came down to No. 38 this year, moving two places down from 2022. The Switzerland-based international institution has relea

June 20, 2023

S. Korea's overseas investment dips 41.6% in Q1

South Korea's overseas direct investment dipped 41.6 percent in the first quarter of 2023 from a year earlier, data showed Tuesday, led by the manufacturing and property sectors. The value of overseas investments by South Korean companies reached $16.49 billion, down 41.6 percent from a year earlier, according to the data compiled by the Ministry of Economy and Finance. The ministry attributed the decrease to a base effect, considering major investment projects rolled out in the semiconduct

June 20, 2023

S. Korean steelmakers seek extension of grace period for EU's carbon tax

South Korean steelmakers asked the government Tuesday to persuade the European Union to allow domestic carbon emission calculation methods for a longer period of time ahead of the full implementation of its new carbon border tax. The EU announced the new carbon-pricing system of the Carbon Border Adjustment Mechanism, which calls for levying an import charge on steel, cement, electricity, fertilizer, aluminum and other related items equivalent to their carbon emissions from production. The regul

June 20, 2023

S. Korea committed to cultivating favorable business environment

South Korea's finance minister said Tuesday the government is committed to building a favorable business environment by revamping regulations and offering tax cuts as he asked local firms to proactively roll out investments. Finance Minister Choo Kyung-ho made the remark during a meeting with officials from the Federation of Korean Industries, one of South Korea's biggest business lobbies that speaks for large companies, according to the Ministry of Economy and Finance. "In genera

June 20, 2023

BOK says inflation will bounce back

Consumer inflation is expected to come down to the 2 percent range mid-year and bounce back to the 3 percent range by the end of this year, while core inflation will be slow to ease off, according to the Bank of Korea on Monday. Consumer price growth has been slowing down after reaching its peak at 6.3 percent in July 2022. Price increases have cooled down in the last few months due to the base effect of a surge in international oil prices last year. Consumer prices came down to 3.3 percent last

June 19, 2023

Inflation expected to soon slow to 2% level: Choo

South Korea's consumer prices are expected to grow at a 2 percent level around June or July, the finance minister said Sunday, amid signs of eased inflationary pressures. "In general, consumer prices are gradually finding stability," Finance Minister Choo Kyung-ho said during a program aired by KBS. "I think the inflation will hit the 2 percent level this month or the following one." Consumer prices, a key gauge of inflation, rose 3.3 percent in May from a year earlier,

June 18, 2023

S. Koreans' purchase of Japanese yen up nearly fivefold in May

South Koreans' combined purchase of the Japanese currency at local banks jumped nearly fivefold in May from a year earlier, data showed Sunday, as more people took advantage of a weaker yen. The amount of Japanese currency sold at the country's four major banks came to 30.16 billion yen ($213 million) in May, soaring from 6.28 billion yen tallied a year earlier, according to the market data. The increase apparently came as more people took advantage of the weak yen in recent weeks, whi

June 18, 2023

Finance ministry assesses 18 public firms as 'lackluster' or below

South Korea's finance ministry said Friday that 18 state-run companies were rated "lackluster" or below during its annual management assessment, noting it plans to order such firms to cut bonuses and take corresponding measures. Under the comprehensive performance evaluation of 130 state-run companies, which divides them into six tiers, 14 were labeled "lackluster," according to the Ministry of Economy and Finance. The other four, including the Korea Railroad Corporation

June 16, 2023

Economic slowdown continues on weak exports, inflation weakens: government

South Korea's finance ministry said Friday that Asia's No. 4 economy has recently experienced weaker inflationary pressure, although it continued to suffer an economic slowdown. "Recently, the South Korean economy saw its price hikes continue to lose steam. The economic slowdown lingered due to exports and the manufacturing sector," the Ministry of Economy and Finance said in a report. The growth of South Korea's consumer prices slowed for the fourth consecutive month in

June 16, 2023

S. Korea's H2 economy strategy to focus on rebound, livelihood stability

South Korea's economic strategy for the second half is set to focus on solidifying people's livelihoods and seeking a rebound, the finance ministry said Friday. The remark was made in light of the Ministry of Economy and Finance's ongoing efforts to prepare a report on the economic policy direction for the upcoming July-December period, which is set to be released in the near future. "Amid the lingering uncertainties in the global economy, exports and the manufacturing indust

June 16, 2023

Twice as many millionaires to leave S. Korea in 2023: report

Amid the increasing trend for high-net-worth individuals to migrate to other countries, more than 800 Korean millionaires, which is double the amount compared to last year, are expected to migrate to foreign countries in 2023, a report said. According to a report released by English residence and citizenship investment advisory firm Henley & Partners, Korea's net outflow of high-net-worth individuals, or HNWIs, is estimated to jump from 400 to 800 in 2023. The number marks Korea as the

June 15, 2023

BOK heeds possibility of US rate hikes later this year

The Bank of Korea said it would remain vigilant following the US Federal Reserve’s decision to pause its interest rate hike cycle for the first time in 15 months, noting the possibility of a further increase later this year. The Federal Open Market Committee unanimously kept its key borrowing target range at 5 percent to 5.25 percent, after 10 consecutive rate increases since March last year. The rate freeze was aligned with expectations in the market but the Fed also signaled that addit

June 15, 2023

Container freight rates for US, EU up in May: data

Outbound container shipping costs for major destinations, including the United States and the European Union, rose in May from a month earlier, data showed Thursday. The average rate for a 40-foot container from Asia's fourth-largest economy to the US east coast came to 4.95 million won ($3,877), up 3 percent from a month earlier, according to the data from the Korea Customs Service. It marked the first time in 13 months for the rate to rise on-month, the agency said. Rates for the US west

June 15, 2023

S. Korea's fiscal deficit expands on-year in April

South Korea's fiscal deficit expanded in the first four months of 2023 from a year earlier amid economic uncertainties, data showed Thursday. The managed fiscal balance, a key gauge of fiscal health calculated on a stricter term, posted a deficit of 45.5 trillion won in the January-April period, larger than a shortfall of 37.9 trillion won a year earlier, according to the finance ministry. South Korea's tax revenue came to 134 trillion won during the cited period, down 33.9 trillion wo

June 15, 2023

S. Korea, Ecuador seek stronger economic ties through envisioned trade deal

South Korea and Ecuador on Thursday discussed ways to expedite the establishment of a bilateral free trade deal to boost trade and investment and to deepen industry ties, Seoul's trade ministry said. Negotiations are underway between the two sides for the Strategic Economic Cooperation Agreement, a type of free trade pact, with nine rounds of talks having been held since 2016. On Thursday, Trade Minister Ahn Duk-geun met with his Ecuadorian counterpart, Julio Jose Prado, in Seoul and discus

June 15, 2023

S. Korea's ICT exports fall for 11th straight month in May

South Korea's exports of information and communication technology products dropped for the 11th consecutive month in May on a lingering economic slowdown and waning demand for semiconductors, government data showed Wednesday. Outbound shipments of ICT products came to $14.5 billion last month, down 28.5 percent from $20.2 billion a year earlier, according to the data compiled by the Ministry of Science and ICT. The monthly ICT exports have been on the decline since July last year. The count

June 14, 2023

S. Korea to unveil measures to fill job openings in vulnerable sectors

South Korea plans to announce additional measures next month to help industries facing labor shortages fill job vacancies, the finance ministry said Wednesday. The move came as some 216,000 job openings remained vacant in April, according to the Ministry of Economy and Finance, amid the country's falling unemployment rate. "Along with customized measures for each sector, we plan to beef up employment services, apply flexible rules to utilize the foreign workforce, improve the working e

June 14, 2023

Import prices snap 3-month fall in May on falling oil prices

Import prices fell in May to end a three-month rise on the back of falling oil prices, central bank data showed Wednesday. The import price index for May stood at 135.54, down 2.8 percent from April's 139.45, according to the data compiled by the Bank of Korea. The index also fell 12 percent compared with a year earlier, marking the sharpest decline since May 2020, when the comparable figure was 13 percent. Import prices of coal and petrochemical goods dropped 5.8 percent on-month last mont

June 14, 2023

Exports up 1.2% during first 10 days of June

South Korea's exports moved up 1.2 percent on-year in the first 10 days of June due to a greater number of working days, data showed Monday, although overseas sales of semiconductors continued to remain sluggish. The country's outbound shipments reached $15.3 billion in the June 1-10 period, compared with $15 billion tallied a year earlier, according to the data from the Korea Customs Service. Imports fell 20.7 percent on-year to $16.7 billion during the period, resulting in a trade de

June 12, 2023