Expected inflation hits record high, consumer sentiment dips to 21-month low, in July

Expected inflation in South Korea hit a record high in July amid rising energy and commodity costs, while consumer sentiment fell to the lowest point in 21 months, central bank data showed Wednesday. Expected inflation, an index gauging 12-month consumer price gains, hit a 4.7 percent, the highest since 2008 when the central bank began compiling related data, according to the Bank of Korea (BOK). The July's expected inflation was up from the previous month's figure of 3.9 percent, the data showe

July 27, 2022

Korea’s growth outlook darkens over poor exports, rising prices

South Korea entering the fog of economic uncertainty became more obvious on Tuesday with the International Monetary Fund revising down the country‘s growth forecast and figures showing that trade deficit for the export-led economy is worsening. In its latest world economic outlook report, the IMF revised down its prediction on the gross domestic product growth of Korea by 0.2 percentage point from its earlier suggestion of 2.5 percent to 2.3 percent, citing the global inflationary pressu

July 26, 2022

IMF cuts Korea’s growth prediction to 2.3%

SEJONG -- The International Monetary Fund on Tuesday forecasted that the growth of the South Korean economy would stay under 2.5 percent in 2022 and 2023, respectively, in the wake of global inflationary pressure, China’s economic slowdown and the war between Ukraine and Russia. In its latest world economic outlook report, the IMF revised down its prediction on the 2022 gross domestic product growth for South Korea by 0.2 percentage point from its earlier suggestion of 2.5 percent to 2.3

July 26, 2022

Poor exports darken outlook for South Korea’s growth

South Korea’s worsening trade deficit is raising concerns over a growth slowdown for the export-led economy, despite unexpected growth reported in the second quarter. The Bank of Korea said Tuesday that gross domestic product for April-June rose 0.7 percent on-quarter, higher than the 0.6 percent growth in the first quarter -- fueled by the government’s decision to scrap practically all COVID-19 restrictions. “Consumer spending pushed up growth in the second

July 26, 2022

[Market Eye] Could banks trade crypto in Korea?

South Korea’s top financial regulator is looking to allow banks to start trading cryptocurrencies, but experts are wary of whether the agency is as committed to protecting consumers along the way, saying it has so far shown little interest in pursuing it. The latest plan the Financial Services Commission revealed last Tuesday is part of its larger deregulation initiative to loosen rules that prevent banks from expanding into businesses the agency has not authorized, such as initial coin

July 26, 2022

S. Korean economy grows at faster pace in Q2 on robust private spending

The South Korean economy grew at a faster pace in the second quarter than three months earlier as private spending picked up due to eased COVID-19 restrictions despite a fall in exports, the central bank said Tuesday. The country's gross domestic product (GDP), the broadest measure of economic performance, grew 0.7 percent on-quarter in the April-June period, accelerating from a 0.6 percent increase in the first quarter, according to an advance estimate from the Bank of Korea (BOK). It mark

July 26, 2022

Bank of Korea warns against worsening wage-price spiral

The higher people expect prices to soar, the worse a wage spiral becomes as rising living costs prompt bigger wages, with persistent inflation on the rise, the Bank of Korea said Monday in a report. “Prices and wages look like they have nothing to do with each other, but in the long run, data consistently shows they do,” the report said, referring to surging prices in Korea. Inflation hit a 24-year high of six percent in June, prompting the central bank to back its first-t

July 25, 2022

OECD leading index for S. Korea dips for 13th month in June

A leading economic index for South Korea dropped for the 13th straight month in June, data showed Monday, amid soaring material costs and growing financial instability. The composite leading indicator (CLI) of economic activity for South Korea came to 98.87 for June, down from the previous month's 99.09, according to the data from the Organization for Economic Cooperation and Development (OECD). The index for South Korea had been contracting since May last year, when it rose to 101.95. Sinc

July 25, 2022

Exporters should brace for advancement of Chinese industries: vice minister

SEJONG -- South Korea needs to brace for a change in trade relations with China, as industries in the global economic powerhouse are undergoing rapid development, First Vice Finance Minister Bang Ki-sun said Friday. At an economy-related vice ministerial meeting in Seoul, Bang said China’s industrial structure has showed “advancement in technologies,” adding that this has been bringing about a change in bilateral trade structure with Korea. The government will spare no effort

July 22, 2022

Shinhan Financial Group Q2 net income up 4.8% to W1.33tr

Shinhan Financial Group Co. on Friday reported its second-quarter net profit of 1.33 trillion won ($1 billion), up 4.8 percent from a year earlier. Operating income for the April-June period was 1.74 trillion won, up 3.3 percent from a year ago, the company said in a regulatory filing. Sales rose 123.1 percent to 18.66 trillion won. The earnings beat market expectations. The average estimate of net profit by analysts stood at 1.28 trillion won, according to the survey by Yonhap Infomax, the fina

July 22, 2022

Producer prices grow for 6th month in June on high energy, service costs

South Korea's producer prices gained for the sixth straight month in June, driven by rising prices of oil, coal and services, central bank data showed Friday. The producer price index, a major barometer of consumer inflation, stood at 120.04 last month, up 0.5 percent from the previous month, according to the preliminary data from the Bank of Korea (BOK). From a year earlier, the index spiked 9.9 percent, marking the 19th consecutive month of on-year rises. Energy and raw material prices re

July 22, 2022

Home prices drive household wealth

South Korean household wealth jumped 8 percent on-year, with net worth per household estimated at 544.7 million won ($415,593) thanks to a surge in house prices, a Bank of Korea report showed Thursday. Real estate made up 75 percent of household wealth. The net worth of households, nonprofit organizations, financial and nonfinancial companies and the government came to 19,000 trillion won, up 2,030 trillion won, or 11.4 percent, from the previous year. That is the biggest annual increase since

July 21, 2022

Yoon to expand tax breaks for companies, salaried workers

SEJONG -- The Yoon Suk-yeol administration on Thursday unveiled a new batch of measures aimed at revamping the taxation system, including expanding corporate tax breaks and relieving the tax burden on individuals. It is the first time in 15 years for the government to push to cut income taxes to support middle- and low-income people. To encourage companies to invest and create more jobs, the government plans to slash the corporate tax ceiling to 22 percent of earnings from the current 25 percen

July 21, 2022

Borrowers in their 40s, 50s face higher loan default risk

South Koreans in their 40s and 50s now face higher chances of loan default and delinquency, with those who took out loans from more than one financial institution increasing by nearly 100,000 from last year, data showed Thursday. This has spurred concerns that a significant number of borrowers in those age groups could be taking out additional money to repay existing debts, with aggressive rate hikes in recent months requiring them to pay more in interest. Borrowers in their 40s and 50s who

July 21, 2022

FDI in free economic zones soars 164% in H1: data

SEOUL, July 21 (Yonhap) -- Foreign direct investment (FDI) pledged to South Korea's free economic zones (FEZs) more than doubled in the first half of this year to hit a three-year high amid post-pandemic economic recovery, data showed Thursday. The country's nine FEZs received $560 million worth of FDI commitment during the January-June period, up 164 percent from a year earlier, according to the data compiled by the Ministry of Trade, Industry and Energy. It is the highest figure si

July 21, 2022

S. Korea's seaport cargo down 5.1% in Q2 amid Ukraine crisis

Cargo processed at South Korean seaports fell 5.1 percent on-year in the second quarter of this year amid global supply disruptions due to the prolonged crisis in Ukraine and China's lockdown of major cities over the COVID-19 pandemic, the oceans ministry said Thursday. Cargo handled at the country's ports came to 373.98 million tons in the April-June period, compared with 394.17 million tons a year earlier, according to the Ministry of Oceans and Fisheries. Handling of export-import c

July 21, 2022

Exports up 14.5% during first 20 days of July

South Korea's exports rose 14.5 percent in the first 20 days of July from a year earlier, but the country suffered a trade deficit on higher global energy costs, customs data showed Thursday. The country's outbound shipments stood at $37.25 billion in the July 1-20 period, compared with $32.52 billion a year earlier, according to the data from the Korea Customs Service. Imports jumped 25.4 percent on-year to $45.35 billion during the cited period, resulting in a trade deficit of $8.12

July 21, 2022

ADB cuts 2022 growth outlook for S. Korean economy to 2.6%

The Asian Development Bank (ADB) on Thursday slashed its 2022 growth outlook for the South Korean economy to 2.6 percent amid the ongoing Ukraine crisis and aggressive monetary tightening by major countries. The latest estimate by the Manila-based bank is lower than the 3 percent growth forecast made in April. The ADB, however, maintained its earlier forecast of the country's 2.6 percent growth for next year. The bank cited the slowdown in the global economic growth and interest rate hikes

July 21, 2022

S. Korean disease institute, Moderna agree to collaborate in SFTS mRNA vaccine development

South Korea's state-run National Institute of Infectious Diseases (NIID) said Wednesday it has reached an agreement with Moderna Inc., a US biotech company, to cooperate in the development of a messenger RNA (mRNA) vaccine candidate for severe fever and thrombocytopenia syndrome (SFTS). The institute said the deal, signed Monday, was its first joint project agreement with an overseas pharmaceutical company. The institute said it expects the research to help elevate the center's researc

July 20, 2022

Stock settlements drop 27 % in H1: KSD

The amount of stock settlements here plunged 27 percent in the first half of this year from a year earlier, largely due to a slump in the global stock market, data showed Wednesday. In the January-June period, a total of 203.9 trillion won ($156 billion) worth of stock settlements were made through the Korea Securities Depository (KSD), down 27.3 percent from a year ago, according to the data. The tally also shrank 11.6 percent from six months earlier. The KSD said stock settlements were on a de

July 20, 2022