Exports grow for 10th month in August on solid sales of chips, autos

  South Korea's exports have extended their gains to 10 months, jumping 35 percent on the back of robust demand for chips and automobiles, and underpinning recovery momentum in Asia's fourth-largest economy, data showed Wednesday. Outbound shipments came to $53.2 billion last month, according to the data compiled by the Ministry of Trade, Industry and Energy. Imports climbed 44 percent to $51.5 billion, resulting in a trade surplus of $1.67 billion. It marked the 16th consecutive month for

Sept. 1, 2021

Moody's raises S. Korea's 2021 growth outlook to 4%

Moody's Investors Service on Tuesday revised up South Korea's growth forecast for this year to 4 percent on strong exports. In its report on world economic outlook, the rating agency adjusted South Korea's gross domestic product growth outlook from its previous estimate of 3.5 percent in May. The nation's growth will continue to be supported by high demand across the globe for industrial products, especially electronics, the agency said. Moody's also revised South Korea's growth outlook for n

Aug. 31, 2021

Korea proposes largest-ever budget to speed up recovery of virus-hit economy

South Korea on Tuesday proposed a record 604.4 trillion won ($519 billion) budget for 2022, stressing the need for an expansionary fiscal policy to help the economy recover from the COVID-19 pandemic. The budget, endorsed by the Cabinet on Tuesday, represents an 8.3 percent hike from this year, less than the 8.9 percent increase for 2021 and 9.1 percent for 2020, according to the Ministry of Economy and Finance. The Moon Jae-in government’s final budget draft, however, has come under

Aug. 31, 2021

Tougher measures in store to rein in household debt: top regulator

Financial authorities will unveil additional measures to rein in household debts, the new head of the financial regulator said Tuesday. Koh Seung-beom, the new chairman of the Financial Service Commission (FSC), said that curbing household debts is his top priority. "I will mobilize all available policy means to reduce risks of surging household debts," Koh said, but stopped short of saying when the FSC will unveil additional measures. The FSC will make a decision on whether to ex

Aug. 31, 2021

Institutions' investment in foreign securities up 5.1% in Q2

South Korean institutions' investment in foreign securities rose 5.1 percent in the second quarter as they increased their holdings of foreign stocks and bonds, central bank data showed Tuesday. The combined value of foreign securities held by institutional investors came to $381.1 billion as of end-June, up $18.5 billion from three months earlier, according to the Bank of Korea (BOK). Foreign securities include stocks, bonds and so-called Korean paper, which refers to foreign currency-denomi

Aug. 31, 2021

Banks' bad loans fall 11.5% in Q2

Nonperforming loans at South Korean banks fell 11.5 percent in the second quarter from three months earlier due to a decline in overdue corporate loans, data showed Tuesday. Nonperforming loans came to 12.2 trillion won ($10.5 billion) at the end of June, down 1.6 trillion won from the end of March, according to the data from the Financial Supervisory Service (FSS). Overdue corporate loans reached 10.5 trillion won at the end of June, down 1.4 trillion won from a quarter earlier, the data sho

Aug. 31, 2021

Moon stresses need to keep expansionary fiscal policy in 2022

President Moon Jae-in on Tuesday emphasized the importance of maintaining an aggressive fiscal policy next year, as the government has proposed an 8.3 percent hike in the state budget. "(We) are facing a very important time for the nation in the midst of the world's order of upheaval and great transformation. The fiscal role is more important than ever," he said at the start of a weekly Cabinet meeting. Main agenda items included the budget plan for fiscal 2022. In its final annual b

Aug. 31, 2021

[Newsmaker] S. Korea proposes record W604tr budget for 2022 amid pandemic

South Korea on Tuesday proposed a record high budget of 604.4 trillion won ($519 billion) for next year as it plans to maintain expansionary fiscal spending to cement the economic recovery and narrow social gaps caused by the pandemic. The proposed budget, endorsed by the Cabinet, marks an 8.3 percent on-year rise from this year's 558 trillion-won budget, according to the Ministry of Economy and Finance. The increase is lower than the 8.9 percent increase for this year. The government plans to

Aug. 31, 2021

S. Korea wary of potential market volatility from Fed's tapering issue: official

Talks about the Federal Reserve's tapering of asset purchases have had limited impacts on South Korea's financial market, but the country will monitor the situation with "extra" vigilance, a senior government official said Tuesday. Fed Chairman Jerome Powell said in a Jackson Hole speech Friday (U.S. time) that the Fed may begin to taper bond purchases this year, but he took a cautious stance about an early tapering of asset buying or a hike in interest rates. First Vice Finance Mini

Aug. 31, 2021

Home transactions sink 37% in July

Home transactions in South Korea tumbled 37 percent in July amid government efforts to rein in soaring housing prices, government data showed Tuesday. The number of homes changing hands nationwide stood at 88,937 last month, down 37.1 percent from a year earlier, according to the data from the Ministry of Land, Infrastructure and Transport. The July reading was little changed from the 88,922 deals registered in the prior month. The number of home transactions in the South Korean capital of S

Aug. 31, 2021

Industrial output down in July amid toughened virus curbs

South Korea's industrial output decreased in July from the previous month in the latest sign that the country's economic recovery momentum slowed amid the fourth wave of the pandemic, data showed Tuesday. Industrial output fell 0.5 percent in July from the previous month, a turnaround from a 1.6 percent on-month gain in June, according to the data compiled by Statistics Korea. From a year earlier, it increased 4.7 percent. Retail sales, a gauge of private spending, declined 0.6 percent in July

Aug. 31, 2021

State spending on strategic industries to surge 43% next year

South Korea will ramp up spending on the next-generation automobile, chip and bio-health sectors next year in an effort to nurture homegrown companies into leading players in the global market, the finance minister said Monday. Under a budget proposal for the 2022 fiscal year drawn up by the government, spending on the “Big 3” industries will increase to 6.3 trillion won ($5.41 billion), up 43 percent from the amount allocated this year. The budget plan will be presented to the pa

Aug. 30, 2021

Every South Korean to face W100m of national debt in 2038: study

South Korea’s national debt per person is expected to grow at a fast clip to reach 100 million won ($85,800) in 2038 as a result of government’s expansionary spending to keep its economic growth in line with an aging population, a study showed Monday. Illustrating 2038 as the year when a newborn this year graduates from high school, the Korea Economic Research Institute, a local think tank, warned that future generations will be placed with a heavy financial burden even before th

Aug. 30, 2021

S. Korea's combined area of rice paddies up 0.8% in 2021

South Korea's combined area of rice paddies moved up 0.8 percent on-year in 2021, data showed Monday, with the country expected to maintain a stable supply of the staple grain despite heavy rains. The combined size of rice paddies is estimated at 732,000 hectares -- slightly more than half the size of the US state of Connecticut -- compared with 726,000 hectares last year, according to the Ministry of Agriculture, Food and Rural Affairs. The producer price of rice per 20 kilograms came to 55,3

Aug. 30, 2021

Overseas card spending jumps 80 pct in Q2 as lockdown eases

South Koreans' overseas card spending jumped 80 percent on-year in the second quarter as many nations eased lockdown rules following the COVID-19 pandemic, central bank data showed Monday. The amount of money spent overseas by South Koreans with cards, including credit and debit cards, totaled $3.37 billion in the April-June period, compared with $1.87 billion for the same period last year, according to the data from the Bank of Korea (BOK). Compared with three months earlier, overseas card sp

Aug. 30, 2021

S. Korea kicks off 7th round of free trade talks with Mercosur

South Korea said Monday it has launched a new round of negotiations to clinch a free trade agreement with Mercosur, South America's leading trading bloc, as it aims to further expand its export portfolio. Asia's fourth-largest economy and Mercosur began a five-day virtual meeting that will run through Friday, according to the Ministry of Trade, Industry and Energy. Mercosur -- made up of Brazil, Argentina, Paraguay and Uruguay -- accounts for around 70 percent of the population in South Ameri

Aug. 30, 2021

S. Korea to dole out cash handouts to ordinary people next week

South Korea said Monday it will begin providing emergency relief funds to people in the bottom 88 percent income bracket next week in the latest move to help them cope with the fallout from the pandemic. The government will begin to provide up to 250,000 won ($215) per recipient on Sept. 6 as part of an 11 trillion-won cash handout program, according to the interior and finance ministries. The money must be spent by end-December. In July, the country drew up an extra budget of 34.9 trillion wo

Aug. 30, 2021

S. Korean firms faced with 'triple whammy': survey

South Korean firms are suffering from the triple whammy of rising raw material costs, a coronavirus resurgence and an interest rate hike, a poll showed Monday. The survey of 310 large and smaller companies, taken by the Korea Chamber of Commerce and Industry (KCCI), showed that 81.6 percent of the respondents to the poll, in which multiple choices were possible, cited an increase in raw material prices as their top concern. The resurgence of COVID-19 infections came next with 80.6 percent, fol

Aug. 30, 2021

Does central bank’s rate hike signal end to ‘bittoo’ era?

The central bank’s rate hike last week may signal an end to Korean investors borrowing heavily to invest -- and may even put retail stock investors at greater risk, according to market analysts Sunday. The trend, known as “bittoo” in Korean -- from the “bit” meaning debt and “tooja” meaning investment -- has created sustained, rapid growth in the value of assets. But there are signs that this may be softening. According to market researcher Infomax, th

Aug. 29, 2021

[Newsmaker] Opposition lawmakers warn of conflict of interest involving FSC nominee

Despite the Parliament’s approval of the nomination of the Financial Services Commission’s new chairman on Friday, concerns remain over his familial ties with the chairman of Korea Investment Holdings, the parent group of a major South Korean brokerage firm. The FSC chief nominee, Koh Seung-beom, is the brother-in-law of Kim Nam-goo, chairman and CEO of Korea Investment Holdings, which controls Korea Investment & Securities, the nation’s second-largest securities company

Aug. 29, 2021