Korea to cut fuel tax by 20% next month

The government will slash fuel taxes by 20 percent and cut tariffs on liquid natural gas to near zero in November for six months to fend off inflationary pressure further building up with rising energy prices. According to the Ministry of Economy and Finance, taxes on gasoline, diesel and liquefied petroleum gas will be cut by 20 percent starting Nov. 12, marking the highest tax cut in history. The temporary cut will end in April, the ministry said after a meeting with the ruling party. Autho

Oct. 26, 2021

Loan guarantees among conglomerate units soar this year

Loan guarantees among affiliates of South Korea's conglomerates soared this year from a year earlier due to the addition of more large business groups to the corporate watch list, the antitrust regulator said Tuesday. Of 40 conglomerate affiliates on the list, the total corporate debt payment guarantees by eight units reached 1.16 trillion won ($993 million) as of May 1, up 1,242 percent from 86.4 billion won the previous year, according to the Korea Fair Trade Commission (KFTC). The jump was

Oct. 26, 2021

S. Korea’s economy sees slower-than-expected growth in Q3

South Korea’s economy has expanded at a slower-than-expected pace in the July-September period due to lackluster private consumption despite recovery in exports, central bank data showed Tuesday. The economy grew 0.3 percent in the third quarter, compared with a 0.8 percent growth in the second quarter and the corresponding figure of 1.7 percent in the first quarter, preliminary data released by the Bank of Korea showed. The third quarter reading falls short of the BOK’s Se

Oct. 26, 2021

S. Korea's yearly trade volume tops $1tr at fastest pace ever

South Korea's trade volume for this year surpassed the $1 trillion mark Tuesday on the back of solid export growth amid the global recovery from the pandemic, reaching the milestone at the fastest pace ever, the trade ministry said. The country's accumulated exports and imports totaled $1 trillion so far this year, with outbound shipments coming to $512.2 billion, according to the data by the Ministry of Trade, Industry and Energy. South Korea made the achievement within the shortest period of

Oct. 26, 2021

Exports tipped to grow 26% in Oct. on chips, autos: poll

South Korea's exports are expected to rise over 26 percent on-year this month on the back of robust demand for chips and automobiles, a poll showed Tuesday. Exports are forecast to reach $54.18 billion in October, marking a 26.14 percent on-year growth, according to the survey of six brokerage houses by Yonhap Infomax, the financial news arm of Yonhap News Agency. Imports are anticipated to advance 38.59 percent on-year in October to $54.18 billion, resulting in a trade surplus of $2.36 billio

Oct. 26, 2021

Non-regular workers rise to over 38% of total amid pandemic

The proportion of temporary workers in South Korea rose to over 38 percent of all salaried workers in August in the wake of the fallout from the pandemic, data showed Tuesday. The number of non-regular workers, including part-timers and outsourced laborers, came to 8.07 million as of August, up 640,000, or 8.6 percent, from the previous year, according to the data by Statistics Korea. They accounted for 38.4 percent of the country's 20.99 million salaried workers. The percentage was up from 36

Oct. 26, 2021

S. Korea, Chile to hold 6th round of talks on amending FTA

South Korea and Chile will hold their sixth round of negotiations this week on updating their bilateral free trade agreement (FTA) that went into effect in 2004, Seoul's trade ministry said Tuesday. The three-day talks, set to begin later in the day via teleconferencing, will focus on expanding the scope of free trade and updating terms of the 15-year-old FTA to better reflect changing trade and economic circumstances, according to the Ministry of Trade, Industry and Energy. The two sides will

Oct. 26, 2021

S. Korea to resume discount coupon program to spur spending

South Korea said Tuesday it plans to resume discount coupon programs aimed at boosting domestic demand as the country is preparing to move into a phase of "living with COVID-19" in early November. The country has suspended the coupon programs in six sectors, including sports, accommodations, tourism and cultural performances, due to the resurgence of virus cases. Only online use of some discount coupons, such as food delivery and agricultural products, has been allowed. Finance Minis

Oct. 26, 2021

S. Korea to speed up enforcement of stricter income-based lending rules to rein in household debt

South Korea said Tuesday it will enforce stricter lending rules based on borrowers' repayment capability at an earlier date than initially scheduled to curb soaring household debt that has emerged as one of the most serious potential risks on the economy. Loans for home rentals, however, will not be subject to the government's tightened lending rules until the end of this year as part of efforts to supply credit for those in actual need of borrowing. Those are part of a string of measures the

Oct. 26, 2021

S. Korea, Cambodia ink free trade deal for deeper economic ties

South Korea and Cambodia officially signed a free trade agreement (FTA) Tuesday in a move to deepen their economic ties, Seoul's industry ministry said. Trade Minister Yeo Han-koo and his Cambodian counterpart, Pan Sorasak, officially signed the pact during a virtual ceremony earlier in the day, according to the Ministry of Trade, Industry and Energy. South Korea struck the deal with Cambodia in February this year and wrapped up domestic procedures, including parliamentary approval. Under the

Oct. 26, 2021

Value of derivatives-tied securities hits near 8-year low in H1

The value of derivatives-tied securities issued in South Korea plumbed a near eight-year low in the first half of the year amid the bullish run of major global stock markets, data showed Tuesday. The amount of equity-linked securities (ELS) and derivatives-linked securities (DLS) outstanding came to 80.2 trillion won ($68.5 billion) as of end-June, the lowest level since the end of 2013, according to the data from the Financial Supervisory Service. Those products are structured to track the pe

Oct. 26, 2021

S. Korea, Philippines strike free trade deal

South Korea has concluded a free trade agreement with the Philippines in a move expected to bolster ties with the Southeast Asian nation and help diversify South Korea's trade portfolio, Seoul's trade ministry said Tuesday. Trade Minister Yeo Han-koo and his Filipino counterpart, Ramon Lopez, were to declare the conclusion of the bilateral Free Trade Agreement (FTA) and sign their joint statement during a virtual meeting set to be held in the day, according to the Ministry of Trade, Industry an

Oct. 26, 2021

S. Korea ranks 4th in ‘relative poverty’ among 38 OECD members

South Korea ranked No. 4 among 38 global economies in terms of the percentage of its population living on less than half the median disposable income, data showed Monday, reflecting significant wealth disparities in the country. According to the Organization of Economic Cooperation and Development, Asia’s fourth-largest economy posted a relative poverty rate of 16.7 percent in 2018-2019, the fourth-highest rate among its 38 member nations. In general, most OECD members are high-income ec

Oct. 25, 2021

S. Korea to unveil measures to enhance efficacy of lending rules based on repayment capacity

South Korea will unveil measures to curb household debt in a way that "strikes a balance" between toughening lending rules based on borrowers' repayment capability and protecting those in actual need of loans for home rentals, the head of the country's financial regulator said Monday. The Financial Services Commission (FSC) is expected to announce a set of measures to tame soaring household debt this week, likely to focus on speeding up implementation of stricter rules on lending base

Oct. 25, 2021

[ESG Talk] Overseeing ESG risks in supply chain: procurement with a purpose

In 2022, an area that is likely to strain companies’ transition toward a resilient, sustainable economy is the ESG risks in the supply chain. Companies must now closely monitor issues stemming from climate change, labor rights and health and safety throughout the procurement process. Supply chain due diligence Until recently, the management team’s focus on supply chain and procurement has been primarily on technical quality, cost-effectiveness, speed of delivery and reliability. H

Oct. 24, 2021

S. Korea alarmed by surging fuel prices, inflationary pressure

South Korea has been alarmed by rising inflation due to surging fuel prices and is likely to cut taxes on oil and liquefied natural gas by 15 percent and 2 percent, respectively, to ease some upward pressure, sources said Sunday. The government has been reviewing various measures to alleviate inflationary pressure after the nation’s central bank said that producer prices in September saw the largest on-year gain in a decade. The producer price index, a barometer of future consumer inflat

Oct. 24, 2021

S. Korea's seaport cargo up 8.1% in Q3 amid global rebound

Cargo processed at South Korean seaports advanced 8.1 percent in the third quarter of this year as trade gained traction amid the global economic recovery from the pandemic, the oceans ministry said Sunday. Cargo handled at the country's ports came to 393.03 million tons during the July-September period, up from 363.53 million tons a year earlier, according to the data by the Ministry of Oceans and Fisheries. Handling of export-import cargo surged 8.6 percent on-year to 338.85 million tons in

Oct. 24, 2021

BOK likely to raise rate twice next year amid sound recovery, spiking household debt: analyst

South Korea's central bank will likely raise its policy rate at least twice next year as it will continue to normalize its eased monetary policy intended to prop up the pandemic-stricken economy, an analyst said Friday. Last week, the Bank of Korea kept the rate unchanged at 0.75 percent for October after conducting a quarter-percentage hike in August from 0.5 percent, a record low level put in place for years to bolster the economy under heavy strain from the coronavirus pandemic. Gov. Lee Ju

Oct. 22, 2021

[Newsmaker] S. Korea to impose temporary fuel tax cut amid gas price hike

South Korea will temporarily cut fuel taxes to soften the blow of skyrocketing gasoline prices, which put upward pressure on inflation, First Vice Finance Minister Lee Eog-weon said Friday.  “The government will temporarily lower fuel taxes. We’ll finalize further details, including the extent of fuel tax cuts and when the envisioned measure will take effect, as soon as possible,” Lee said, adding that the formal announcement will be made during a government meeting nex

Oct. 22, 2021

PM says hard-hit businesses, low-risk facilities will be first to benefit from eased virus rules

Prime Minister Kim Boo-kyum said Friday hard-hit businesses and low-risk facilities will be the first to benefit from eased COVID-19 restrictions starting next month. Kim made the remark during a meeting of a government-civilian panel overseeing the transition to life after COVID-19. "The return to normal will proceed in stages and systematically," he said. "We will take drastic and active steps to ease the virus restrictions starting with businesses and neglected groups that ha

Oct. 22, 2021