Tax revenue up W34.8tr through May amid job growth, economic recovery

South Korea has collected around 34.8 trillion won ($26.72 billion) more in taxes during the first five months of this year compared with the previous year amid growth in employment and economic recovery, the finance ministry said Thursday. In May alone, the government's tax revenue rose 300 billion won from a year earlier to come to 28.7 trillion won, as the economic recovery boosted income and corporate taxes, the data showed. The tax revenue amounted to 196.6 trillion won in the January-

June 30, 2022

Minimum wage for next year increased 5 pct to 9,620 won

Representatives of South Korea's labor and management have agreed to set next year's minimum hourly wage at 9,620 won ($7.41) in a 5 percent increase from this year, officials said Thursday. The Minimum Wage Commission, which is composed of nine members each from labor, business and the general public, struck the agreement Wednesday night during a plenary session held at the government complex in Sejong. The new rate translates to a monthly wage of 2.02 million won. It will apply equal

June 30, 2022

S. Korea's industrial output, investment rebound in May

South Korea's industrial output and facility investment rebounded in May from the previous month in the latest sign that Asia's fourth-largest economy maintains mild recovery momentum amid heightened external uncertainty, data showed Thursday. Industrial production rose 0.8 percent in May from the previous month, compared with a 0.9 percent on-month fall in April, according to the data from Statistics Korea. Compared with a year earlier, industrial output grew 7.1 percent. Facility inv

June 30, 2022

Business sentiment worsens for July amid inflation, recession woes

South Korea's business sentiment worsened for July amid deepening concerns over high raw materials prices and a global economic downturn, a central bank poll showed Thursday. The business sentiment index (BSI) for local companies came to 82 for July, down 5 points from the previous month, according to the survey by the Bank of Korea (BOK). The index measures corporate prospects for business conditions in the following month. A reading below 100 means pessimists outnumber optimists. The figu

June 30, 2022

Korean minister visits Czech over reactor project

SEJONG -- South Korea has recently carried out a senior-level promotion in the Czech Republic for its nuclear energy technologies in an attempt to win a reactor project in the European nation, the Energy Ministry said Wednesday. The core of promotion activities was Minister of Trade, Industry and Energy Lee Chang-yang’s meetings with Czech senior officials and political heavyweights in Prague on Tuesday.   In a meeting with his counterpart Jozef Sikela, Lee commented on details on Ko

June 29, 2022

Worsening inflation outlook fuels sharper rate hike bets

South Korean consumers raised their outlook this month for where inflation will be in one year to the highest level in 10 years, a Bank of Korea survey showed Wednesday, reinforcing expectations that the central bank would be emboldened to back a steeper-than-expected rate hike in July. In a monthly survey of 2,500 households conducted June 13-20, consumers forecast inflation to average 3.9 percent, up from the previous 3.3 percent in May. The monthly increase is also the largest gain seen sinc

June 29, 2022

Labor, management circles revise proposals for next year's minimum wage

Representatives of South Korea's labor and management have submitted amendments to their respective proposals for an increase in next year's minimum wage, only to confirm a wide gap, officials said Wednesday. Under the current law, the 27-member Minimum Wage Commission (MWC), a trilateral panel composed of nine representatives each from labor, management and the general public, has to complete its review on the new minimum wage by mid-July for a formal announcement by Aug. 5 every year

June 29, 2022

S. Korea's trade terms down for 14th straight month in May

South Korea's terms of trade worsened for the 14th straight month in May due to fast-rising import prices of oil and other key commodities, central bank data showed Wednesday. The nation's net terms-of-trade index for goods -- a gauge of overall trade terms -- stood at 85.33 last month, down 10.6 percent from a year earlier, according to the preliminary data from the Bank of Korea (BOK). The figure, however, was up 1.3 percent from a month earlier, the first on-month rise in four month

June 29, 2022

Biz leaders of S. Korea, Japan to hold annual meeting next week after nearly 3-year hiatus

Business leaders of South Korea and Japan will hold their annual meeting early next week, the Federation of Korean Industries (FKI) said Wednesday, after a nearly three-year hiatus caused by the COVID-19 pandemic. The Korea-Japan Business Council, co-hosted by the FKI and the Japan Business Federation, or Keidanren, will take place in Seoul at the FKI headquarters Monday, the FKI said in a release. More than 20 top business leaders, including the chiefs of the FKI and Keidanren -- Huh Chang-soo

June 29, 2022

[Photo News] Lone Diner

A diner is seen eating alone at a university cafeteria in Seoul on Tuesday. The cost of eating out at a restaurant for a four-person household in the first quarter of this year jumped 17 percent from the previous year, while the sharp rise in the cost of dining out has driven a 3.8 percent surge in the Consumer Price Index on-year, according to recent data by Statistics Korea.

June 28, 2022

Fiscal chief urges businesses to restrain drastic wage hikes

SEJONG -- The nation’s fiscal chief on Tuesday called for employers to refrain from excessively raising wages, stressing that a sharp pay raise could possibly fan consumer prices growth. Deputy Prime Minister and Finance Minister Choo Kyung-ho expressed the worries during his meeting with business leaders, including Korea Enterprises Federation and CJ Group Chairman Sohn Kyung-shik, in Seoul. “There have been drastic pay raises in the information technology-oriented firms and some

June 28, 2022

Finance chief calls for corporate restraints on 'excessive' wage increase amid inflation woes

Finance Minister Choo Kyung-ho asked companies Tuesday to refrain from excessively raising wages for employees as the move could further accelerate inflation. Choo made the request during a meeting with members of the Korea Enterprises Federation (KEF), including Sohn Kyung-shik, federation chief and CJ Group chairman, and Rhee In-yong, president of Samsung Electronics Co. "We're concerned that some IT companies and large conglomerates have recently jacked up wages, and such a trend ha

June 28, 2022

4 out of 10 firms in S. Korea experience raw materials price hikes higher than 20 pct: survey

About 4 out of 10 companies in South Korea saw their raw material prices jump 20 percent or more this year amid fast-rising oil and commodity bills, a central bank survey showed Monday. According to the survey by the Bank of Korea on 570 firms, 40.3 percent said so, with 8.1 percent saying that the prices jumped 50 percent or higher compared with a year earlier. With the raw material price increase, 69 percent of those surveyed raised the prices of their products or services. Of them, 43.1 perce

June 27, 2022

BOK deputy chief to attend FSB meeting this week

A top official of the Bank of Korea (BOK) will attend a meeting of the Financial Stability Board (FSB) this week in the Netherlands and discuss global cooperation, Seoul's central bank said Monday. Bank of Korea (BOK) Deputy Gov. Lee Seung-heon will depart for the European country on Tuesday to join the general assembly of the FSB in Amsterdam on Thursday, according to the BOK. The FSB is a consultation body that coordinates and cooperates for global financial market stability. It is made u

June 27, 2022

Government to push retailers for gasoline price cut

SEJONG -- Economic policymakers on Friday said they would ramp up pressure on gas stations in a bid to ease inflationary pressure from surging energy costs, as soon as an expanded fuel tax cut goes into effect next week. The government announced last week that it would further increase tax cuts on fuel consumption from the current 30 percent to 37 percent, the maximum legal cap. “In consultation with the oil refinery industry, (the government) plans to induce a cut in supply prices for g

June 24, 2022

S. Korea's fuel consumption jumps in May despite higher oil prices: data

Consumption of gasoline and diesel in South Korea jumped more than 40 percent in May from a month earlier, as expanded fuel tax subsidies channeled pent-up demand from the pandemic, data showed Friday. The combined consumption of the two fuel types reached 24.82 million barrels, up 43 percent from 17.35 million barrels logged in April, according to the data by Petronet, an online petroleum information provider run by the Korea National Oil Corp. The surge contrasts with the declining trend seen

June 24, 2022

Trade deficit expected to widen in June on fewer working days, strike: official

South Korea's trade deficit is expected to widen this month compared with a month earlier due mainly to fewer working days and a trucker strike, the finance ministry said Friday. The country had national holidays for the June 1 local elections and Memorial Day on June 6, and truckers staged a weeklong strike over a minimum wage scheme and other state supports earlier this month, disrupting and delaying production and outbound shipping. During the first 20 days of this month, the country

June 24, 2022

S. Korea braces for ‘perfect storm’ in the financial market

South Korea’s financial authorities on Thursday warned of a “perfect storm” approaching the nation’s economy, while pledging to pump liquidity into financial institutions to cushion them from growing risks, if needed. The concerns come as the US Federal Reserve’s aggressive rate hikes, a strong dollar trend, high inflation and ongoing global supply chain bottlenecks have been rattling the Korean market. “Some experts compare the current economic state to t

June 23, 2022

BOK official stresses efforts to tame inflation expectations amid rising prices

A senior central bank official on Thursday underscored the importance of preventing inflation expectations from rising as the country is grappling with rising prices amid high energy and commodity costs. Bank of Korea (BOK) Deputy Gov. Lee Seung-heon voiced concerns that inflation pressure remains high for the time being, citing such factors as the ongoing war in Ukraine that has exacerbated supply-chain disruptions. "Mandated to maintain price stability, the BOK should preemptively manage

June 23, 2022

Korea’s household, corporate debt twice size of GDP: BOK

Debt owed by South Korean households and companies in the first quarter of this year reached a combined 3,468.4 trillion won ($2.6 trillion), or 219.4 percent of South Korea’s gross domestic product, the Bank of Korea said Wednesday, warning a rate hike could worsen repayment burdens and hurt people’s purchasing power. The central bank, set to raise borrowing costs in July amid red-hot inflation, said in a report on financial stability that household and company debts fell by 0.1 pe

June 22, 2022