S. Korea to temporarily cut fuel taxes amid rising oil prices

South Korea plans to temporarily cut fuel taxes in a bid to ease upward pressure on inflation amid surging oil prices, a senior government official said Friday. First Vice Finance Minister Lee Eog-weon also said the government plans to additionally cut import tariffs on liquid natural gas (LNG), currently at 2 percent, as part of efforts to ease people's burdens on a hike in energy costs. "The government will unveil details about fuel tax cuts, including the timing and the scope, next wee

Oct. 22, 2021

Incheon int'l Airport reports sharp recovery in traveler flow in past 2 mths

Incheon International Airport, the main gateway to South Korea, has seen a sharp recovery in the number of inbound and outbound travelers over the past two months amid the country's push for a "Living with COVID-19" plan. According to Incheon International Airport Corp., the state-run operator of the airport, the number of international travelers departing or landing via Incheon jumped 44 percent, compared with a year earlier, to some 338,000 in August. It was the first monthly figur

Oct. 22, 2021

Lawmaker questions official housing price projection

Despite policymakers’ assurance of home prices having reached their peak, the government appears to have set tax revenue on a scenario of housing values rising further next year. Rep. Yoo Gyeong-joon of the main opposition People Power Party on Thursday, quoting a state-funded study, said that the government’s tax revenue next year has been drafted based on its own estimation of housing prices in Seoul and the surrounding area growing 5.1 percent, According to the study conducted

Oct. 21, 2021

KB Financial Group Q3 net profit up 9.3% to W1.3tr

KB Financial Group Inc. on Thursday reported its third-quarter net profit of 1.3 trillion won ($1.1 billion), up 9.3 percent from a year earlier. The company said in a regulatory filing that it posted 1.78 trillion won in operating profit for the quarter, compared with 1.41 trillion won a year ago. Sales rose 56.4 percent to 16.47 trillion won. The operating profit was 7.1 percent higher than the average estimate, according to the survey by Yonhap Infomax, the financial data firm of Yonhap New

Oct. 21, 2021

Number of chickens dips 4.2% in Q3 due to bird flu

SEJONG -- The number of layer chickens raised in South Korea dropped 4.2 percent in the third quarter from a year earlier due to the impact of the bird flu outbreak, data showed Thursday. The number of layer chickens came to 70.7 million as of end-September, compared with 73.8 million a year earlier, according to the data from Statistics Korea. Yet it was up from 65.9 million three months earlier and 62.1 million as of end-March, which was the lowest in more than three years. The on-year decr

Oct. 21, 2021

Exports rise 36% in first 20 days of Oct.

South Korea's exports rose 36.1 percent on-year in the first 20 days of October on the back of robust demand for chips, petroleum products and autos, customs data showed Thursday. The country's outbound shipments stood at $34.2 billion in the Oct. 1-20 period, compared with $25.1 billion a year earlier, according to the data from the Korea Customs Service. Imports increased 48 percent on-year to $36.7 billion, resulting in a trade deficit of $2.49 billion during the cited period, the data show

Oct. 21, 2021

Finance minister says crypto tax plan still on for next year

South Korea’s finance minister once again downplayed the possibility of delaying taxation on cryptocurrency earnings, while emphasizing that his ministry is gearing up to carry out its plan as scheduled. Hong Nam-ki, the minister of Finance and Economy, made such remarks during an Assembly hearing on Wednesday when asked about the preparedness of taxation infrastructure on crypto assets. Hong’s remarks came one day after a lawmaker revealed a survey result in which three crypto e

Oct. 20, 2021

Fitch keeps S. Korea’s credit rating at AA-

Global credit appraiser Fitch Ratings said Wednesday that it would maintain South Korea’s stable credit rating and keep its economic growth projection positive, citing the country’s economic resilience. During a webinar hosted by Fitch on assessing regional outlooks, Jeremy Zook, a director at Fitch Ratings, reaffirmed the credit rating for Asia’s fourth-largest economy at AA-, the fourth-highest level in the agency’s system, in line with its July projection. It has rema

Oct. 20, 2021

S. Korea considering temporary fuel tax cut amid surging gasoline prices

South Korea is considering temporarily lowering fuel taxes to ease consumer burden from surging gasoline prices, the country's top economic policymaker said Wednesday. Finance Minister Hong Nam-ki said the government will unveil relevant actions, including a fuel tax cut, as early as next week. "As the international oil prices are on the rise, driving up gasoline prices and putting upward pressure on consumer prices, we are considering such preemptive measures as a fuel tax cut," Hon

Oct. 20, 2021

Brokerages sharply cut Q3 earnings outlook for major listed firms

South Korean brokerage houses have sharply lowered their third-quarter earnings outlook for major listed firms amid rising inflation and other negatives, a market tracker said Wednesday. The combined net profit forecast for 168 major listed firms came to 29.7 trillion won ($25.2 billion) for the July-September period as of Tuesday, up 4.3 percent from a year earlier, according to financial information provider FnGuide. Yet, it represents a 34 percent plunge from their estimate of 44.9 trillion

Oct. 20, 2021

[Herald Interview] ‘For durable recovery, S. Korea’s monetary policy can remain accommodative’

The Bank of Korea’s August decision to raise its key rate has sent a market signal that the pandemic-triggered liquidity party in South Korea could be nearing an end. The International Monetary Fund, a global organization striving for financial stability, however, remained cautious about the central bank’s hawkish turn to fight rising inflationary pressure and soaring household debt, advising it to slow down the pace of rate normalization. “Korea’s monetary policy stanc

Oct. 19, 2021

KDB issues $1.5b in global bonds

The state-run Korea Development Bank (KDB) said Tuesday it has successfully issued $1.5 billion worth of bonds to foreign investors. The lender has sold 10-year bonds worth $300 million and 5 1/2-year bonds worth $500 million. The KDB has also issued $700 million worth of green bonds that will come due in three years and three months, which will be used to finance Green New Deal projects, such as rechargeable batteries and renewable energy. The state bank said its has floated those bonds at t

Oct. 19, 2021

Residents' FX deposits jump in Sept. amid brisk exports

Foreign currency deposits at banks in South Korea rose sharply in September from a month earlier as exporters increased dollar holdings, central bank data showed Tuesday. Residents' outstanding foreign currency-denominated deposits came to $94.2 billion as of end-September, up $1.6 billion from the previous month, according to the Bank of Korea (BOK). It represents the second consecutive month of on-month increase. In August, they climbed by $470 million from the previous month. Residents inc

Oct. 19, 2021

ELS sales in S. Korea sink 30.8% in Q3

Sales of equity-linked securities (ELS) in South Korea plunged more than 30 percent in the third quarter from three months earlier amid the coronavirus pandemic, data showed Tuesday. The value of ELS products in Asia's fourth-largest economy stood at 11.6 trillion won ($9.8 billion) in the July-September period, down 30.8 percent from the second quarter, according to the data from the Korea Securities Depository. The figure, however, was up 17.8 percent from the 9.8 trillion won floated during

Oct. 19, 2021

Retailers hope for sales recovery amid 'Living with COVID-19' scheme

Beset by curfews and fewer customers amid the coronavirus pandemic, the retail industry in South Korea is now pinning hopes on a business rebound, as the government is set to ease long-enforced strict restrictions under the "Living with COVID-19" scheme set to be introduced next month. Department stores, supermarkets and other retailers are expected to be among those likely to benefit, given that eased restrictions on gatherings and business operations will bolster consumer sentiment

Oct. 19, 2021

ABS issuance plunges 31.5% in Q3

The issuance of asset-backed securities (ABS) in South Korea plunged over 30 percent on-year in the third quarter of this year due to a decline in sales of mortgage-backed securities, data showed Tuesday. The value of ABS issued in the third quarter stood at 12.8 trillion won ($10.8 billion), down 31.5 percent from a year earlier, according to the data from the Financial Supervisory Service (FSS). ABS refers to securities structured with mortgages, auto loans, credit-card receivables and stud

Oct. 19, 2021

Gas prices in S. Korea continue to rise on strong crude rally

Gas prices in South Korea have continued to rise as oil prices hit a seven-year high amid the global economic recovery, data showed Monday. The average gasoline price nationwide stood at 1,724.7 won ($1.45) per liter Monday, marking the highest since December 2014, according to the data compiled by the state-run Korea National Oil Corp. (KNOC). The gas price in Seoul topped the 1,800 won-level per liter in the day, the data showed. Market watchers said the gas prices may climb further as glob

Oct. 18, 2021

S. Korea to soon decide whether to join CPTPP: finance minister

South Korea plans to decide whether to join a mega Asia-Pacific free trade agreement involving 11 nations as early as this month in an effort to diversify its export portfolio, the country's finance minister has said. Finance Minister Hong Nam-ki made the remarks during his meeting with reporters Thursday (local time) in Washington, D.C. after attending the Group of 20 meeting of finance ministers and central bank governors. South Korea has been "actively" reviewing the joining of th

Oct. 18, 2021

[Law Talk] Trademark issues in the world of the metaverse

The word “metaverse,” a portmanteau of the prefix “meta” (meaning beyond) and “universe,” is typically used to refer to a communal and interactive cyberspace where content, commerce and networking exist with increasing permeability with the real world. With new technical capability and accelerated cultural shift to online due to the COVID-19 crisis, the metaverse is creating innovation that transcends time and space in all areas of industry and society. In par

Oct. 17, 2021

Fiscal chief voices concerns over US request to share chip info

South Korea’s Finance Minister Hong Nam-ki voiced concerns about the US’ request that Korean chipmakers share information about their supply chains, during his meeting with US Treasury Secretary Janet Yellen in Washington on Thursday, Eastern time. Hong said, “We do admire the US government’s attempt to resolve global competition to secure a foothold for supply chains,” but at the same time relayed Korean chipmakers’ concerns about sharing private information

Oct. 15, 2021