S. Korea's household debt to GDP at highest level among 34 economies

South Korea's household debt-to-gross domestic product ratio stood at the highest level among 34 major economies in the first quarter, global financial data showed Monday. The ratio stood at 102.2 percent in the January-March period, followed by Hong Kong with a ratio of 95.1 percent, Thailand with 85.7 percent, Britain with 81.6 percent, the United States with 73 percent, Malaysia with 66.1 percent, Japan with 65.2 percent and China with 63.6 percent, according to the Institute of Internat

May 29, 2023

S. Korea to seek tariff-rate quota on pork, mackerel

SEJONG -- South Korea plans to adopt tariff-rate quotas on imports of pork and mackerel in the near future in line with efforts to tame rising foodstuffs prices amid prolonged inflation, a senior official said Friday. The tariff-rate quota is a system under which products are imported with favorable duty conditions within a designated volume. The amount imported beyond the limit is applied with higher tariffs. "As there are price instabilities in some agriculture, livestock, and fishery p

May 26, 2023

[Herald 70th] 'Korea-US-Japan joint efforts on trade, strategic tech crucial'

Forging robust security and economic alliances with the United States and Japan is crucial for South Korea to embrace a reshaped global geopolitical paradigm, said Jun Kwang-woo, chairman of the Institute for Global Economics. “The trilateral allies must bolster their economic cooperation and pursue shared strategic priorities,” to deal with “the looming global geo-economic challenges, accompanied by supply chain disruptions and an energy crisis, result from the post-pandemic

May 25, 2023

BOK freezes rate at 3.5% as inflation wanes

The Bank of Korea kept its key interest rate unchanged at 3.5 percent Thursday, opting for a third consecutive freeze as inflation has been showing signs of easing off in Korea in recent months. Korea’s base rate has stayed at 3.5 percent since February, when the central bank first froze the rate after more than a year of rate hikes to tamp down soaring prices. “The BOK decided to keep the rate unchanged as it is appropriate to maintain the monetary tightening stance, with the inflat

May 25, 2023

Over 120 trading firms gather for KITA-Taiwan conference

The Korea International Trade Association held a joint conference with the Taiwan External Trade Development Council and Taiwan Chamber of Commerce on Wednesday to discuss ways to boost trade between South Korean and Taiwanese companies. A total of 122 companies, including 27 Korean and 95 Taiwanese companies, participated in the event, called the Korea-Taiwan Import and Export Conference held at the Taipei International Convention Center in the capital of Taiwan. A total of 207 consultations we

May 24, 2023

S. Korea vows to partner with World Bank to share expertise with developing nations

South Korea wishes to expand cooperation with the World Bank by sharing its expertise in the climate and digital sectors, the finance minister said Wednesday. "Korea's expertise in the climate and digital sectors can help developing countries against the challenges they face," Finance Minister Choo Kyung-ho said during an event marking the 10th anniversary of the bank's office in South Korea. "I believe Korea's resources in these areas can help the Korea Office beco

May 24, 2023

Natl. pension reports worst returns in 2022 amid global jitters: data

South Korea's state pension operator saw its returns fall to a record low level in 2022, data showed Tuesday, due to the instability in the global financial market amid monetary tightening moves. The National Pension Service logged negative returns of 8.28 percent in 2022, marking the lowest level since it was launched in 1988, according to the Ministry of Economy and Finance. "(The negative returns) were affected by the jitters in the global financial market sparked by the US rate hik

May 23, 2023

Inflation expectations at 1-year low in May

South Korea's inflation expectations fell to the lowest in a year in May on a slide in prices of petrochemical goods, a central bank survey showed Tuesday. Ordinary people expected consumer prices to rise 3.7 percent for the year ahead, down 0.2 percentage point from what was surveyed a month earlier, according to the poll conducted by the Bank of Korea. The reading marks the lowest since May last year, when the comparable figure was 3.3 percent, the central bank said. The downturn came as

May 23, 2023

Gov’t to enhance public energy firms’ financial status by raising rates next year: minister

South Korea’s finance minister said Monday the government will improve the financial status of debt-laden public energy companies by raising rates to an acceptable level next year. Finance Minister Choo Kyung-ho made the remarks at a meeting of the National Assembly’s Strategy and Finance Committee. “It will take time for public energy companies to retrieve accounts receivable and make a turnaround. Experts expect Korea Electric Power Corp. (KEPCO) to swing to an operating pr

May 22, 2023

Energy bills soar 30% in Q1, most since 1998 financial crisis

The inflation index of utility bills for households -- including electricity and gas -- spiked by more than 30 percent in the first three months of 2023, marking the highest on-year increase since the 1998 financial crisis. The increase in utility prices for electricity, gas and other fuels converted into the inflation index logged 135.49 points in the first quarter of 2023, up 30.5 percent from the same period last year, according to the Korea Statistical Information Service on Monday. This mar

May 22, 2023

S. Korea's trade balance expected to improve after May: finance minister

South Korea's finance minister said Monday the country's trade balance could improve after May and he expects a gradual recovery of tax revenue down the road as well. "After May, South Korea's trade deficit will decrease, and we can anticipate a completely different performance in the fourth quarter," Finance Minister Choo Kyung-ho told lawmakers during a parliamentary session. The remark came after South Korea's exports fell 16.1 percent on-year in the first 20 day

May 22, 2023

Exports down 16.1% during first 20 days of May

South Korea's exports fell 16.1 percent on-year in the first 20 days of May due to a prolonged slump in the global chip industry, data showed Monday, with the country's outbound shipments set to lose ground for seven consecutive months. The country's outbound shipments stood at $32.4 billion in the May 1-20 period, compared with $38.6 billion a year earlier, according to the data from the Korea Customs Service. Imports shed 15.3 percent on-year to $36.7 billion during the cited period, resulting

May 22, 2023

How rich is the top 1% in Korea?

People in South Korea's top 1 percent net asset bracket had at least around 3 billion won ($2.26 million) in net assets in 2021, according to a local insurance firm’s report, Sunday. Net assets refer to the value of a person’s assets such as houses, cars, investments and cash, minus liabilities. According to Hanwha Life Insurance, individuals who had more than 2.9 billion won in net assets sat in the top 1 percent net asset bracket, while the threshold for the 0.1 percent bracke

May 21, 2023

[KH Explains] BOK may opt for another rate freeze

The Bank of Korea is likely to maintain the current base interest rate at its next rate-setting meeting on Thursday, going for a third consecutive rate freeze amid waning inflation and a sluggish economy. The market expects the central bank to maintain the key rate at 3.5 percent, following two previous rate freezes in February and April. Inflation has been coming down in Korea. The consumer price index, a barometer of inflation, showed a 3.7 percent on-year increase in April, falling into the 3

May 21, 2023

Finance minister discusses bilateral ties with Chinese envoy

Finance Minister Choo Kyung-ho met with Chinese Ambassador to South Korea Xing Haiming on Friday to discuss economic ties and other bilateral issues, his office said. During the meeting, Choo expressed hope that South Korea and China can continue economic cooperation based on mutual respect and interests, according to the Ministry of Economy and Finance. The finance minister also requested China's support for the preparation of the bilateral economic ministerial meeting scheduled to be held

May 19, 2023

Korea bets on potential of advanced display technologies

The South Korean government is seeking to push the growth of cutting-edge display technologies, providing aggressive support such as hefty tax cuts and deregulation. “Displays will be designated as a national advanced strategic technology to encourage private investments, ensuring a stable supply network while supporting policy financing, research and development, and training,” Finance Minister Choo Kyung-ho said at a governmental meeting held in central Seoul on Wednesday. He added

May 17, 2023

S. Korea to up seafood exports to $4.5b by 2027

South Korea will penetrate deeper into the global seafood market with the goal of exporting $4.5 billion worth of goods in the sector by 2027, the oceans ministry said Wednesday. The amount represents around a 50 percent rise from a record high of $3.15 billion tallied in 2022, on the back of the global popularity of "gim" and abalone, according to the Ministry of Oceans and Fisheries. Gim, or dried seaweed, is usually roasted with sesame oil and fine salt, and served as a side dish in

May 17, 2023

Closer ties with US, Japan key to geo-economic challenges

South Korea needs to strengthen its trilateral alliance with the United States and Japan in trade and investment to overcome global geo-economic challenges and supply chain disruptions triggered by COVID-19, said Jun Kwang-woo, chairman of the Institute for Global Economics. The COVID-19 pandemic and the war in Ukraine have increasingly polarized the world economy, which centers around the US and China. This caused a shift in the global economic paradigm, leading to closer links between nati

May 16, 2023

Electricity bills to rise by 5.3% as Kepco battles mounting losses

Electricity rates and gas prices in South Korea will increase by 5.3 percent from Tuesday, to ease the financial burden of cash-strapped state-run energy companies. The electricity rate will go up by 8 won ($0.006) per kilowatt-hour and the gas rate by 1.04 won per megajoule, the government announced Monday. The hiked rates take effect from Tuesday, but will not be applied retroactively. This means that a four-person household that uses an average amount of electricity and gas will have to pay

May 15, 2023

Container freight rates for major destinations fall on-month in April

Outbound container shipping costs for major destinations, including the US west coast and the European Union, slipped in April from a month earlier, data showed Monday. The average rate for a 40-foot container from Asia's fourth-largest economy to the US west coast reached 4.84 million won ($3,610) last month, down 5.3 percent from March, according to the data from the Korea Customs Service. Compared with the previous year, the cost was down 64.4 percent. The data is based on freight rates

May 15, 2023