[Photo News] IBK's new chairman

Industrial Bank of Korea Chairman Kim Sung-tae took office on Tuesday to lead the state-run bank after a recent approval from President Yoon Suk-yeol. A veteran insider, Kim has worked for IBK for over three decades since joining in 1989. At the inauguration ceremony held earlier in the day, the new chairman pledged to put his priority on supporting small- and medium-sized businesses.

Jan. 3, 2023

S. Korea's power use hits new high in December on cold wave

South Korea's electricity consumption touched a record monthly high in December as the country was gripped by a nationwide cold wave and heavy snow, the power operator said Tuesday. The country's average maximum power consumption stood at 82,716 megawatts last month, up 5.1 percent from a year earlier, according to the Korea Power Exchange. It was higher than the previous monthly record of 82,007 MW set in July last year. The December tally also marks the first time that the country�

Jan. 3, 2023

Aging population to slow down economy, central bank warns

The Bank of Korea warned Monday that the aging population could drive down the macroeconomic benefits of fiscal expenditure. According to the central bank's monthly research report, studies show that one percentage point in an increased aging population leads to a 5.9 percent drop in the fiscal growth of gross domestic product. The bank announced the figures based on overseas research which showed that the change in the population structure weakens the growth effect of fiscal expenditures.

Jan. 2, 2023

[Newsmaker] Chip supremacy gives South Korea more geopolitical freedom: lawmaker

Rep. Yang Hyang-ja, a former executive at Samsung Electronics’ semiconductor business division, called securing a competitive edge in chips a “matter of life and death” amid the ever-evolving geopolitical landscape and an escalating US-China rivalry. “The winner of the global chip battle will control the economic security order, while the loser will end up becoming a technological colony,” Yang, who heads the ruling People Power Party’s special panel on chips,

Jan. 2, 2023

2022 in numbers

1. Tough living conditions ① COVID cases The number of COVID-19 cases grew by 28.2 million this year due to the highly transmissible omicron subvariant. The figure was 635,253 on Jan. 1 but surged to 28.7 million at the end of this year. ② Inflation Fried chicken: 9.2% Gas: 36.2% Ramen: 12.6% Cooking oil: 43.3% (Nov. 2022, Year-on-year increase) South Korea has been no exception to global inflation, with “everything has risen except my salary” becoming a popular catchphrase. 2. U

Dec. 31, 2022

Yoon orders finance ministry to consider bigger tax break for chip sector

President Yoon Suk-yeol on Friday ordered ministries to actively consider measures further expanding tax incentives for the semiconductor sector and other national strategic industries. Yoon requested the Ministry of Economy and Finance to come up with ways to further expand tax benefits for national strategic technologies such as semiconductors as they are "our security assets and core technologies," a president office’s deputy spokesperson said. His remark came after the ruling

Dec. 30, 2022

Tax revenue up W50.2t bthrough November

South Korea's tax revenue grew 50.2 trillion won ($39.7 billion) in the first 11 months of 2022 from a year earlier, data showed Friday, on the back of improved corporate earnings. Tax revenue amounted to 373.6 trillion won in the January-November period, compared with 323.4 trillion won tallied the previous year, according to the Ministry of Economy and Finance. In November, the government collected 18 trillion won in taxes, up 2 trillion won from a year earlier. The ministry attributed th

Dec. 30, 2022

Consumer price growth hits 24-year high in 2022

South Korea's consumer prices grew at the fastest pace in more than two decades in 2022, government data showed Friday, as the country felt the pinch of soaring prices of raw materials and energy sources following the Russia-Ukraine war. Consumer prices rose 5.1 percent on-year in 2022, accelerating from a 2.5 percent gain in 2021, according to the data compiled by Statistics Korea. It marked the steepest on-year rise since 1998, when consumer inflation spiked 7.5 percent in the wake of the

Dec. 30, 2022

BOK's reserve management team expects dollar to bounce back amid recession woes

The US dollar's recent downward move will likely continue for the time being, but its value could bounce back next year when global recession woes arise, the foreign reserve management team of South Korea's central bank said Tuesday. The dollar has recently been under downward pressure after gaining marked ground against major currencies thanks to aggressive monetary tightening in the United States. The Korean won has also rebounded recently after tumbling through the 1,400 mark in Sep

Dec. 27, 2022

Korean companies suffer from weakening stability, fiscal health

South Korean companies have seen revenue growth this year, but their fiscal health has deteriorated due to increased debt and lowered profitability, according to a report from a major business lobby group Monday. Despite their growing revenue, the slowdown in the growth rate, inventory piling up and soaring borrowing costs draw concerns as the country’s economy is largely expected to see headwinds next year, with sluggish exports and uncertainties in the global market. “Companies h

Dec. 26, 2022

Customs agency allows imports of full-body sex dolls

South Korea's customs agency said Monday it has started permitting imports of full-body sex dolls, three years after the country's top court ruled they are not "obscene materials." The Korea Customs Service had been allowing imports of sex dolls that depict particular human body parts, but not life-size dolls, since July. The agency, however, said dolls depicting minors -- based on height, weight, and face -- will still not be permitted. Those resembling a specific person wil

Dec. 26, 2022

Jobs at public organizations to be reduced amid economic slump

South Korea plans to reduce some 4 percent of jobs at state-run organizations by 2025, the finance ministry said Monday, in line with efforts to tighten its belt amid the economic slump. Under the plan, the country will eliminate 17,230 jobs at public organizations, according to the Ministry of Economy and Finance. It marks the first job cut scheme for such institutions since 2009. A separate batch of 4,788 workers will be reassigned with new duties over the period, it added. The ministry said t

Dec. 26, 2022

BOK hints on interest rate hikes for 2023

The Bank of Korea put forward price stability as its major commitment for next year, hinting on further hikes of its key rate to fight ongoing inflation. The central bank released a report on its monetary policy for next year on Friday, suggesting forecasts on the economic outlooks in and out Korea. The bank said it will focus on price stability next year, so that consumer inflation will move towards the target level, currently set at 2 percent. “Although consumer inflation is expected to

Dec. 23, 2022

15 futuristic projects unveiled for next big leap

The government has drawn up new growth strategies to secure future technology such as aerospace and artificial intelligence and to accelerate digital transformation to help its sluggish economy leap forward. Through the "New Growth 4.0 Strategy" unveiled by economy-related ministries on Wednesday, the country seeks to secure forward-looking technology, digital transformation and further expanding the country's prowess in chips and display panels to gain a competitive advantage o

Dec. 21, 2022

Korea sets sight on real estate, financial reform to spur economy

Finance Ministry offers growth outlook at 1.6%, lower than BOK, KDI estimates The Korean government has vowed to bring back the economy, speeding up regulatory reforms on real estate and financial markets. Deputy Prime Minister and Finance Minister Choo Kyung-ho highlighted the goals while unveiling the economic policy directions for next year at the government complex in Seoul on Wednesday. According to Choo, the four pillars of the state’s economy management will be freedom, innovation

Dec. 21, 2022

[Newsmaker] 14 years a miser...to be a home owner in Seoul

An average wage earner in South Korea would have to save up one’s entire income for 14 years to buy a home in Seoul, a government study showed Wednesday. The price-to-income ratio -- the median home price divided by the median annual household income -- for Seoul in 2021 jumped to 14.1 from 12.5 in the year before, according to the 2021 Korea Housing Survey released by the Ministry of Land, Infrastructure and Transport. The figure was higher than that of any other region in the country, wi

Dec. 21, 2022

Exports down 8.8% during first 20 days of December

South Korea's exports slipped 8.8 percent on-year in the first 20 days of December, data showed Wednesday, due mainly to weak shipments of chips and mobile devices. The country's outbound shipments stood at $33.6 billion in the Dec. 1-20 period, compared with $36.8 billion a year earlier, according to the data from the Korea Customs Service. Imports moved up 1.9 percent on-year to $40 billion during the cited period, resulting in a trade deficit of $6.4 billion. Outbound shipments of c

Dec. 21, 2022

Monetary policy will keep focus on fighting inflation in 2023: BOK

The Bank of Korea is likely to continue with its aggressive monetary tightening stance next year, as inflation is expected to remain well above its target. The nation's inflation rate is expected to remain at around the 5 percent range "for the time being" and then to be moderate over the next year as oil prices stabilize and higher interest rates slow the local and international economies, said Rhee Chang-yong, governor of the Bank of Korea, at a press briefing at the central ban

Dec. 20, 2022

Korea to extend tax cuts as inflation saps demand, growth

The Ministry of Economy and Finance announced Monday plans to extend tax reduction on certain products such as vehicle and energy fuel as well as consumption tax on passenger vehicles. However, the tax cut for gasoline will only be partially reduced due to some stabilization. The fuel tax reduction for vehicles, set to expire at the end of the year, has been extended to April 30. The cut for gasoline will be adjusted from the current 37 percent to 25 percent, as its price has stabilized, the min

Dec. 19, 2022

S. Korea's export growth to drop to 0% range in 2023: poll

South Korea's export growth is expected to fall to the zero-percent range in 2023 amid high raw material prices and slowing major economies, a poll showed Monday. The survey of 150 companies in the country's 12 key export industries showed overseas shipments are forecast to expand 0.5 percent in the coming year from 2022. By sector, exports of electric and electronics products are predicted to sink 1.9 percent on-year, with those of petrochemicals likely to fall 0.5 percent. Outbound s

Dec. 19, 2022