Exports up 24% on-year in Oct. to second-largest monthly figure of $55.55b

South Korea's exports spiked 24 percent in October from a year earlier to reach the second-largest monthly figure of $55.55 billion on the back of strong global demand for chips and petroproducts, data showed Monday. Outbound shipment is just shy of the record monthly figure of $55.83 billion reported the previous month, according to the data compiled by the Ministry of Trade, Industry and Energy. It marked the 12th straight month that the country's exports have extended gains. Imports surged

Nov. 1, 2021

High raw material costs feared to erode corporate earnings

Soaring international raw material costs are feared to eat into South Korean companies' earnings and drive up consumer prices down the road, a report showed Monday. Stung by fast-rising oil and other material prices, the operating margin of local companies is expected to reach 3.4 percent this year, down 1.8 percentage points from the average 5.2 percent between 2015 and 2019, according to the report from the Korea Economic Research Institute (KERI). The operating margin of large businesses is

Nov. 1, 2021

Small merchants' sentiment improves for Nov. on eased pandemic restrictions

South Korean small merchants' business confidence took a turn for the better for November on hopes that relaxed anti-coronavirus restrictions may boost their sales, a poll showed Monday. The Small Enterprise and Market Service said its business survey index (BSI) for small merchants came to a 10-month high of 87.6 this month, up 9.5 points from the previous month. November marks the third straight month that the small merchants' BSI has climbed from the prior month. Despite the increase that

Nov. 1, 2021

[Law Talk] Hydrogen emerging as feasible solution in Korea’s path to carbon neutrality

There are four important numbers highlighted in the United Nations Emissions Gap Report 2019: 1.5, 25, 56, and 7.6. If the global temperature rises by more than 1.5 degrees Celsius above preindustrial levels, it may threaten the sustainability of Earth. To limit global warming to 1.5 degrees Celsius above preindustrial levels, global emissions in 2030 will need to be 25 gigatons of carbon dioxide equivalent (CO2e). If no further effort is made beyond the current commitments to reduce carbon diox

Oct. 31, 2021

Finance minister projects rosy outlook for private spending in Q4

Highlighting the latest government data reflecting a recovery in industrial output and retail sales in September, the nation’s top economic policymaker on Friday expressed anticipation of a rebound in private spending for the remaining months of the year. “Despite the obstacles cast by the fourth wave of the COVID-19 virus, the nation’s industrial output in September rose over 1 percent and the overall economy activity has shown improvement compared with August,” Deputy

Oct. 29, 2021

Consumption inequality worsens in S. Korea amid COVID-19 pandemic: BOK report

Consumption inequality in South Korea worsened last year as the coronavirus pandemic undercut "discretionary" spending by lower-income earners due to toughened curbs on gatherings and business operation, a central bank report showed Friday. According to the report by the Bank of Korea, the consumption inequality index -- a major gauge of spending patterns between the haves and have-nots -- increased to 3.74 in 2020 from the previous year's 3.67. A higher reading means more inequality

Oct. 29, 2021

Card spending up in Q3 amid fast vaccination

Card spending in South Korea grew in the third quarter from a year earlier as consumer sentiment improved amid expanded vaccination and relaxed social distancing rules, industry data showed Friday. Card spending came to about 248 trillion won ($212.2 billion) in the July-September period, up 8.6 percent from the same quarter a year earlier, according to the data compiled by the Credit Finance Association. The growth was attributed to improving consumer sentiment bolstered by accelerated vaccin

Oct. 29, 2021

Production, consumption rebound in Sept. despite resurgence in virus cases

South Korea's industrial output and retail sales rebounded in September in the latest sign that economic recovery momentum has been maintained despite the fourth wave of the pandemic, data showed Friday. Industrial output rose 1.3 percent in September from the previous month, following a 0.2 percent on-month decline in August, according to the data compiled by Statistics Korea. From a year earlier, industrial output rose 1.4 percent. Retail sales, a gauge of private spending, also rebounded i

Oct. 29, 2021

Post-retirement poverty threatens Korea’s growth, investment guru says

Poverty among retired South Koreans, coupled with the fast-paced aging of the country’s population, is leaving the national economic growth engine prone to a slowdown, an investment guru said Wednesday. Individuals in Korea -- a nation where 4 out of 10 people aged over 65 are estimated to live in relative income poverty -- must learn to take control of their finances so they can build wealth that lasts until retirement, said John Lee, chief executive officer of Meritz Asset Management,

Oct. 28, 2021

Stiglitz urges regulators to shut down cryptocurrencies

Nobel prize-winning economist Joseph Stiglitz on Thursday urged regulators around the world to shut down cryptocurrencies, saying it undermines the basis of financial systems as well as its pursuit of transparency. Speaking at a forum hosted by the Seoul city government, the economic professor at Columbia University also suggested market transparency and well-designed regulations as prerequisites for the city to become a global financial hub. “(Cryptocurrencies) are becoming significan

Oct. 28, 2021

Trade terms decline for 6th month in September

South Korea's terms of trade fell for the sixth consecutive month in September due to a rise in prices of imported goods, central bank data showed Thursday. The nation's net terms-of-trade index for goods -- a gauge of overall trade terms -- declined 4.5 percent last month from a year earlier, according to preliminary data from the Bank of Korea (BOK). The figure is calculated by dividing the index for export prices by that for import prices. It shows the amount of imports a country can buy fo

Oct. 28, 2021

Retail sales up 8.2% in September on 'revenge shopping' amid pandemic

Retail sales in South Korea surged 8.2 percent in September from a year earlier, data showed Thursday, as consumers turned to "revenge shopping" amid the prolonged virus pandemic. The combined sales of 25 major offline and online retailers reached 13.2 trillion won ($11.26 billion) last month, compared with 11.9 trillion won a year earlier, according to the data compiled by the Ministry of Trade, Industry and Energy. Sales from offline stores rose 3.3 percent on-year in September, wi

Oct. 28, 2021

Antitrust agency to probe travel sector facing spike in pent-up demand

South Korea's antitrust chief has vowed to intensify a probe into unfair business practices in the travel sector amid a looming recovery in travel demand as the country prepares to return to normalcy. South Korea plans to ease long-enforced restrictions on gatherings and business operations with its shift to the "living with COVID-19" scheme on Nov. 1 meant to gradually restore daily life back to the pre-pandemic days. The move could stimulate pent-up demand for travel, spawning conc

Oct. 28, 2021

South Korea’s housing market on verge of stabilization: fiscal chief

South Korea’s fiscal policy chief said Wednesday that the nation’s overheated housing market is showing signs of cooling down with the government’s tightened grip on ample liquidity amid the COVID-19 pandemic as well as its home supply plans.  “Affected by a series of government measures, including announcements of housing supply plans, benchmark interest rate hike and tougher household debt control measures, an upward trend in housing prices has slowed and changes

Oct. 27, 2021

Non-financial firms see 2020 sales drop for first time in 10 years amid pandemic

Non-financial companies in South Korea saw their combined sales shrink for the first time in 10 years in 2020 affected by an overall slump in consumption amid the coronavirus pandemic, central bank data showed Wednesday. The Bank of Korea (BOK) analyzed 2020 business performances of about 800,000 non-financial companies, including some 170,000 manufacturers, and found that their total sales contracted 1 percent from a year earlier. This marked the first contraction since the central bank bega

Oct. 27, 2021

S. Korea expected to face longer-than-predicted period of inflationary pressure: BOK

South Korea is expected to be under rising inflationary pressure for a longer-than-predicted period due to the ongoing global supply disruptions and recovering consumption backed by eased antivirus rules, the country's central bank said Wednesday. "Our country needs to closely watch the possibility of a longer-than-expected period of an upward trend in high prices due to the local ramifications from the global supply bottleneck, an increase in consumption from changes in antivirus measures

Oct. 27, 2021

Population mobility falls for 9th month in September

The number of South Koreans who moved to different residences in the country fell for the ninth straight month in September, data showed Wednesday, as housing transactions decreased amid rising prices. The number of people who changed their residences dropped 8.9 percent on-year to 566,000 last month, according to the data compiled by Statistics Korea. The population mobility rate -- the number of those relocating per 100 people -- also went down 1.3 percentage points from a year earlier to co

Oct. 27, 2021

S. Korea to take 'all possible' steps to stabilize housing market

South Korea will take "all possible" measures to stabilize the real estate market as it sees the pace of home price growth slowing down, the finance ministry said Wednesday. The government has announced dozens of comprehensive packages to supply homes, curb speculative home transactions and stabilize rising property prices over the past four years. Still, the regulations failed to tame runaway home prices. The average price of an apartment in Seoul doubled to 1.21 billion won ($1.03

Oct. 27, 2021

Corporate direct financing gains 1.4% in Sept.

South Korea's corporate direct financing edged up in September from the previous month due to a surge in bond sales, data showed Wednesday. Local companies raised a combined 19.6 trillion won ($16.8 billion) by selling stocks and bonds in September, up 1.4 percent from a month ago, according to the data from the Financial Supervisory Service (FSS). Corporate bond sales swelled 18.2 percent on-month to 17.6 trillion won in September. In contrast, local firms' stock sales tumbled 54.5 percent

Oct. 27, 2021

Consumer sentiment rises to 4-month high in October amid expanded vaccination

South Korea's consumer sentiment rose to the highest level in four months in October as an accelerated pace of COVID-19 vaccination raised hope for a return to normal life, central bank data showed Wednesday. The composite consumer sentiment index (CCSI) came in at 106.8 in October, up 3 points from the previous month, according to the data from the Bank of Korea. The reading is the highest since the index rose to 110.3 in June. A reading above 100 means optimists outnumber pessimists. The g

Oct. 27, 2021