No. of Korean youths who gave up job seeking surges 35%

South Koreans aged between 15 and 29 who were unemployed, not engaged in schooling or housework, and were not seeking jobs increased some 35 percent on-year, data showed Tuesday. As of May, 96,000 were classified as those “not in education, employment, or training” or “NEET,” data compiled by Yonhap News Agency showed. The figure increased 35.8 percent or 25,000 on-year from 71,000 the previous year. They were among a group of 278,000 people within the same age range who

Sept. 14, 2021

Samsung commits to creating 30,000 new youth jobs in 3 years: gov't

Samsung Group on Tuesday promised to create 30,000 new youth jobs in South Korea in three years by expanding its corporate social responsibility initiatives (CSR), the government said. The plan to create 10,000 new youth jobs annually for three consecutive years was revealed during a partnership announcement event between Samsung Group and the prime minister's office (PMO) on the government's youth job and education support program titled Youth Hope ON held in Seoul, according to the PMO. The ev

Sept. 14, 2021

Residents' FX deposits rise in Aug. amid brisk exports

Foreign currency deposits at banks in South Korea gained in August from a month earlier as exporters increased dollar holdings, central bank data showed Tuesday. Residents' outstanding foreign currency-denominated deposits stood at $92.6 billion as of end-August, up $470 million from the previous month, according to the Bank of Korea (BOK). The country's foreign exchange deposits swung to an upturn for the first time in five months. In July, they were down $910 million from June. Residents in

Sept. 14, 2021

S. Korea to expand FTAs with more emerging countries in S.E. Asia, Latin America

South Korea said Tuesday it plans to implement or launch negotiations for a set of new free trade agreements (FTAs) with trading counterparts from Southeast Asia and Latin America this year, as part of efforts to reduce its reliance on major economies. The country plans to officially sign the pending FTA with Cambodia in October, seven months after completing related negotiations, according to the Ministry of Trade, Industry and Energy. The ministry said the deal is set to help South Korean fi

Sept. 14, 2021

Export prices up for 9th month in August

South Korea's export prices rose in August, marking the ninth straight monthly gain amid a strong recovery in exports, central bank data showed Tuesday. The country's export price index, in terms of the local currency, rose 1 percent in August from the previous month, according to the preliminary data from the Bank of Korea (BOK). The reading marked the ninth consecutive month of an on-month rise. In July, the index rose 3.5 percent on-month. From a year earlier, the index jumped 18.6 perce

Sept. 14, 2021

Korea’s aging population to sap fiscal health: Fitch

The fast-paced aging of South Korea’s population is likely to undermine the fiscal health of Asia’s fourth-largest economy in the long run amid soaring debt, credit ratings agency Fitch Ratings said Monday. The aging population, coupled with a declining fertility rate of fewer than one child per woman, could leave Korea exposed to higher risks as rising government spending could become a less effective means of boosting nationwide productivity. Fitch urged Korea to carry out midt

Sept. 13, 2021

Finance chief calls for beefed-up monitoring of housing markets

Finance Minister Hong Nam-ki on Monday raised the need to strengthen the monitoring of the property market as the latest rate hike and the talks of US tapering could increase market volatility. The minister also called for ways to encourage the private sector to take part in the government's efforts to increase the home supply. "There is a need to strengthen the monitoring of the housing market due to changes in real estate market conditions," Hong told a meeting with senior government

Sept. 13, 2021

Pandemic cuts S. Korea's 2021-22 potential growth rate by 0.2% point

The COVID-19 pandemic slashed South Korea's 2021-22 potential growth rate by 0.2 percentage point to 2 percent, the Bank of Korea (BOK) said Monday. South Korea's potential growth rate, which refers to the maximum possible rate an economy can grow without triggering inflation, has been on a steady decline due to a shrinking working-age population and mounting household debts. But the pandemic prompted the nation's potential growth rate to further decline as it dealt a heavy blow to small merchan

Sept. 13, 2021

Electronic payments hit record high in H1 amid pandemic

The amount of payments made electronically hit a record high in the first half of this year, central bank data showed Monday, as the COVID-19 pandemic prompted more people to engage in contact-free commerce. The daily average amount of electronic financial transactions came to 863.5 billion won ($738 million) in the January-June period, up 12.8 percent from six months earlier, according to the data from the Bank of Korea (BOK). The reading marked the highest amount since the central bank started

Sept. 13, 2021

S. Korea proposes digital trade pact with ASEAN

South Korea on Monday proposed a new pact on digital trade with Southeast Asia to cope with the changing global business environment and forge deeper economic ties with the region. Trade Minister Yeo Han-koo held a virtual meeting of economic ministers with his ASEAN counterparts to share opinions on various issues, covering trade and the environment, according to the Ministry of Trade, Industry and Energy. ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Th

Sept. 13, 2021

Exports rise 31% in first 10 days of Sept.

South Korea's exports rose 30.7 percent on-year in the first 10 days of September on the back of robust demand for petroleum products and autos, customs data showed Monday. The country's outbound shipments stood at $19.5 billion in the Sept. 1-10 period, compared with $14.9 billion a year earlier, according to the data from the Korea Customs Service. Imports soared 60.6 percent on-year to $21 billion, resulting in a trade deficit of $1.46 billion during the cited period, the data showed. By sect

Sept. 13, 2021

Green wave pushes indebted state-run firms to edge

Amid the climate change response actions underway in South Korea, the nation’s state-run companies dedicated to fossil fuel energy resources are barely hanging on. The Korea Resources Corp., or Kores, merged into the newly established Mine Reclamation Corp., called Mireco, under new rules that took effect Friday. The birth of Mireco was foretold in 2018, when a task force within the Energy Ministry recommended that the debt-saddled Kores be restructured. Kores, considered a major culpri

Sept. 12, 2021

Online shopping in Korea expands 105 percent since 2017

SEJONG -- The market volume of online shopping in South Korea, which has been sharply growing in recent years, has been further boosted by the pandemic, as more consumers rely on internet retailers, data shows. Shopping via the internet is estimated to have contributed largely to private consumption, and eventually the gross domestic product. According to Statistics Korea, monthly online shopping transactions reached an all-time high of 16.19 trillion won ($13.8 billion) in July. This marked 2

Sept. 12, 2021

New FSC chief, financial giants mull loan maturity extension

Koh Seung-beom, the new chairman of the policymaking Financial Services Commission, met with the heads of South Korea’s five biggest banking groups on Friday to discuss whether to further put off loan repayment schedules for households and companies reeling from the fallout of the COVID-19 pandemic. No conclusion has been reached yet, but Koh and the group executives agreed on the importance of inclusive financial policies to boost “cooperation between economic players for mutual

Sept. 10, 2021

Housing rent loan extended to young Koreans doubles in 4 years

The total loan extended to Koreans in their 20s and 30s to pay their “jeonse” rents more than doubled since President Moon Jae-in took office in 2017, data showed Thursday, reflecting the reality of young people ditching hopes to buy homes, and rent instead. Jeonse is a rental system where the tenant hands over a large lump sum to the landlord -- on average, about 65 percent of the value of the property – for usually two years and does not pay rent. The deposit is returned to

Sept. 9, 2021

Wealthy Koreans face excessive taxes: think tank

South Korea has placed an excessive tax burden on members of its top income bracket in recent years, a think tank said Wednesday, suggesting that this could cause an exodus of wealthy Koreans. The income tax rate on annual earnings exceeding 1 billion won ($858,400) rose twice in the last five years to the current 45 percent, a report from the Korea Economic Research Institute showed. In 2017, the year President Moon Jae-in took office, the rate increased to 42 percent from 40 percent. It was

Sept. 8, 2021

‘Jeonse’ squeeze builds: Even semibasements fetch W100m

The average rent for semibasement apartments in Seoul on two-year “jeonse” leases topped a record 100 million won ($85,900) this year, suggesting low-income households in the city are facing heavier financial burdens, data showed Wednesday. Jeonse, a two-year housing lease that requires a lump sum deposit, for semibasement apartments measuring 60 square meters or smaller in the capital city came in at an average of 104.4 million won as of end-August, according to the Land Ministry d

Sept. 8, 2021

Daily card spending up 8.4% in H1 amid pandemic

Daily card spending in South Korea rose 8.4 percent in the first half from a year earlier, supported by increased online purchases amid the pandemic, central bank data showed Wednesday. Holders of credit and debit cards spent an average 2.7 trillion won ($2.3 billion) per day in the January-June period, compared with 2.5 trillion won the previous year, according to the data by the Bank of Korea (BOK). Credit card spending rose 10.2 percent on-year to a daily average of 2.1 trillion won, led by

Sept. 8, 2021

Banks' household loans grow at slower pace in Aug.

South Korean banks' household loans grew at a slower pace in August from the previous month due largely to slowed growth in overdrafts for stock investments, central bank data showed Wednesday. Outstanding bank loans to local households came to 1,046.3 trillion won ($898 billion) as of end-August, up 6.2 trillion won from the previous month, according to the data from the Bank of Korea (BOK). The August reading slowed from a 9.7 trillion won on-month increase in July, the data showed. The BOK

Sept. 8, 2021

BOK forecast to hike key rate again in Nov.

South Korea's central bank is expected to raise its interest rate in November to cope with concerns over a financial imbalance, a report said Wednesday. "The Bank of Korea is likely to raise its benchmark rate to 1 percent from 0.75 percent at its Nov. 25 policy meeting in consideration of worries about a financial imbalance related to an economic recovery, rising inflation and the hot housing market," Woori Finance Research Institute said in the report on the local financial market.

Sept. 8, 2021