Korea, India agree to block double taxation

SEJONG -- The tax administrative agencies of South Korea and India have agreed to closely coordinate on easing tax burdens for businesses by holding a bilateral meeting of chiefs, the National Tax Service said Friday. The two also have decided to exchange know-how in uncovering practices of offshore tax evasion. During their meeting in New Delhi on Thursday, NTS commissioner Kim Dae-ji expressed gratitude to his counterpart Tarun Bajaj for the Indian tax authority’s recent policy to prev

Feb. 25, 2022

S. Korea to support companies to minimize impacts from Ukraine crisis

South Korea said Friday it plans to provide financial support to local exporters in an effort to minimize their potential damage from international sanctions against Russia over Moscow's invasion of Ukraine. The United States announced new sanctions against Russia, including export controls, over Moscow's invasion of Ukraine in a bid to restrict Russia's ability to do business in major currencies. South Korea said Thursday it will join the international community in imposing sanctions against Ru

Feb. 25, 2022

S. Korea's fisheries output rebounds in 2021

South Korea's fisheries output rebounded last year from the previous year on the back of increased fish stocks and expanded fishing grounds, data showed Friday. Total fisheries output amounted to 3.82 million tons last year, up 2.9 percent from a year earlier, according to Statistics Korea. The 2021 tally rebounded from 3.71 million tons in 2020 when fisheries output hit a four-year low. Last year, aquaculture production increased and fisheries output from inland fishing also gained ground. By v

Feb. 25, 2022

S. Korea's arable land dips for 9th year in 2021

South Korea's total arable land dropped for the ninth consecutive year in 2021 as rice paddies shrank amid falling consumption of rice, data showed Friday. The country's arable land totaled 1.55 million hectares -- slightly more than three times the size of the U.S. state of Delaware -- as of end-2021, down 1.2 percent or 18,000 hectares from the previous year, according to the data by Statistics Korea. Arable land in Asia's fourth-largest economy has been on the decline since 2013 due to declin

Feb. 25, 2022

S. Korea's central bank joins BIS Asian green bond fund

The Bank of Korea (BOK) said Friday it has invested part of the country's foreign exchange reserves in a green bond fund for central banks in a bid to expand its investment in green projects. The BOK said it took part in the Asian Green Fund that was launched by the Bank for International Settlements (BIS) on Thursday to invest in dollar-denominated green bonds issued in the Asian region. The BOK did not specify the amount of its investment. Green bonds are meant to raise money to support enviro

Feb. 25, 2022

Trade terms decline for 10th consecutive month in January

South Korea's terms of trade fell for the 10th straight month in January as import costs rose at a faster clip than export prices, central bank data showed Friday. The nation's net terms-of-trade index for goods -- a gauge of overall trade terms -- stood at 89.42 last month, down 6.8 percent from a year earlier, according to preliminary data from the Bank of Korea (BOK). The figure has marked on-year declines each month since April when the index fell 0.6 percent from a year earlier. Compared wi

Feb. 25, 2022

Ministry mulls subsidy cut for hybrids

SEJONG -- Hybrid cars will likely be excluded from a government list of eco-friendly cars in the coming years, rendering hybrid-car owners no longer able to enjoy tax benefits or state-led purchase subsidies. During a ministerial meeting for the nation’s innovative growth in Seoul on Thursday, Deputy Prime Minister and Finance Minister Hong Nam-ki unveiled a policy to regard only electric cars and hydrogen-fueled cars as low-emission cars on a midterm policy direction. He said that the g

Feb. 24, 2022

BOK freezes key rate, announces decade-high inflation outlook

South Korea’s central bank on Thursday kept its benchmark interest rate anchored at the current 1.25 percent, but sharply revised its annual inflation outlook to a decade high of 3.1 percent. The Bank of Korea’s seven-day monetary policy board unanimously voted to freeze the key rate at the level it maintained since it delivered a 0.25 percentage point rate hike in January. The January decision brought back the base rate to pre-pandemic levels, before the BOK carried out a 0.5 perc

Feb. 24, 2022

BOK freezes policy rate amid pandemic, Ukraine crisis

South Korea's central bank held its key interest rate steady Thursday amid worries that the upsurge in COVID-19 infections and heightening geopolitical risks stemming from Eastern Europe could undercut economic recovery momentum. The Bank of Korea (BOK), however, sharply revised upward its inflation outlook for this year, raising the possibility that it could hike the interest rate in the months to come. As widely expected, the seven-member monetary policy board of the central bank voted to fr

Feb. 24, 2022

Korea wary of ‘long-term’ tension involving Ukraine

SEJONG -- A longer-than-expected standoff between Ukraine and Russia involving a possible war could deal a severe blow to the Korean economy, Vice Finance Minister Lee Eog-weon said Wednesday. During a task force meeting in Seoul, Lee said that particular impacts have yet to be seen in the local market at the current stage, despite the escalating tension between the two countries. “But (worsening geopolitical risk) over a long period would have negative effects on the nation’s over

Feb. 23, 2022

S. Korea's overseas financial assets hit all-time high in 2021

South Korea's overseas financial assets reached an all-time high last year on the back of increased stock investments and investment returns, central bank data showed Wednesday. The country's external financial assets came to $2.16 trillion as of end-December, up $198.2 billion from a year earlier, according to preliminary data from the Bank of Korea (BOK). The net international investment position also hit a record high of $637.9 billion at the end of December, up from $466.1 billion the previo

Feb. 23, 2022

Housing prices on downward trend after peak: finance minister

South Korea's finance minister said Wednesday the country's housing prices are on a downward trend after being stabilized amid the central bank's rate hikes and tighter lending rules. Minister Hong Nam-ki said the government will implement its real estate policy with a focus on expanding the home supply and rooting out property speculation in a bid to support a fall in home prices. "Stabilizing trends of housing prices have become more evident, and price falls have been accelerating,"

Feb. 23, 2022

Business sentiment rises for March but stays below par

South Korean's business sentiment improved slightly for March but remained below par amid the fast spread of the COVID-19 omicron variant, a central bank poll showed Wednesday. The business sentiment index (BSI) for local companies came to 88 for March, up three points from the previous month, according to the survey by the Bank of Korea (BOK). The BSI for manufacturers climbed to 93 from 90 over the cited period, and that for non-manufacturing businesses also gained two points to 84. The index

Feb. 23, 2022

Majority of households forecast fall in home prices: BOK

SEJONG -- At least 1 in 2 South Koreans were found to have predicted home prices to go down in the coming year, amid a variety of tight regulations and rising interest rates, data from the Bank of Korea showed Tuesday. According to the monthly consumer survey conducted by BOK, the index for households’ outlook on housing prices sat at 97 in February, down three points from a month earlier. The index indicates that the number of households predicting a decline in housing prices was higher

Feb. 22, 2022

Household debt hits fresh high in Q4, but growth slows

South Korea's household debt reached a fresh high in the fourth quarter of last year, but it grew at a slower pace from the three months earlier amid tightened lending rules, central bank data showed Tuesday. Household credit came to 1,862.1 trillion won ($1.56 trillion) as of end-December, up 1 percent, or 19.1 trillion won, from three months earlier, according to the data from the Bank of Korea (BOK). The gain slowed from a 1.9 percent on-quarter increase in the third quarter. Household credit

Feb. 22, 2022

Average monthly wage climbs to W3.2m in 2020

SEJONG -- The average monthly salary for Korean employees climbed to 3.2 million won ($2,680) as of 2020 on the back of drastic hikes in the statutory minimum wage between 2018 and 2020, state data showed Monday. According to Statistics Korea, the average monthly wage for salaried workers rose by 430,000 won, or 15.5 percent, in just four years -- from 2.77 million won in 2016. During the period of 2016-2020, the minimum wage per hour surged by 42.4 percent from 6,030 won to 8,590 won, with th

Feb. 21, 2022

S. Korea to hold annual meetings with Moody's this week

South Korea will hold its annual consultation meetings with global rating agency Moody's Investors Service this week over the country's economic conditions, Seoul's finance ministry said Monday. The Moody's credit rating team, led by Gene Fang, associate managing director of the agency, will hold a series of meetings with the finance ministry, the central bank and other agencies starting Monday through Feb. 28. During the meetings, the two sides will discuss the country's recent economic situati

Feb. 21, 2022

Exports rise 13% in first 20 days of Feb.

South Korea's exports grew 13.1 percent on-year in the first 20 days of February on the back of demand for chips and petroleum products, customs data showed Monday. The country's outbound shipments stood at $34.30 billion in the Feb. 1-20 period, compared with $30.34 billion a year earlier, according to the data from the Korea Customs Service. Imports rose 12.9 percent on-year to $35.98 billion, resulting in a trade deficit of $1.68 billion during the cited period, the data showed. By sector, ou

Feb. 21, 2022

South Korea’s fiscal deficit tops W100tr as spending surged amid COVID-19

South Korea’s fiscal deficit reached over 100 trillion won ($83 billion), while national debt logged a deficit of 240 trillion won, as the country was bogged down by COVID-19 woes in the past two years, data from the Finance Ministry showed Sunday. With an additional 70 trillion won in fiscal deficit and 100 trillion won of national debt projected to be added this year, based on the size of the supplementary budget currently being discussed by officials and lawmakers, onlookers are expre

Feb. 20, 2022

Korea to make public food prices at franchises to tame inflation

SEJONG – Economic policymakers are moving to tame consumer prices under their assessment that inflationary pressures would continue this month, Vice Finance Minister Lee Eog-weon said Friday. Several policy measures set to be taken include making price tags of food products at large-scale dining franchises publicized and extending fuel tax redemption. “Prices of dining out increased by 5.5 percent in January on-year. This marked the highest growth (in almost 13 years) since 5.

Feb. 18, 2022