BOK likely to conduct 2 rate hikes this year: JP Morgan

The Bank of Korea (BOK) is expected to conduct two rate increases this year as its policymakers have turned more hawkish on an economic rebound, global investment bank JP Morgan said Wednesday. In a revised forecast on the BOK's rate policy, JP Morgan forecast the country's central bank could start its rate increase at this month's policy-setting meeting slated for Aug. 26. The BOK is also likely to raise the country's benchmark interest rate once during the fourth quarter of the year with ano

Aug. 4, 2021

Number of multi-level marketing companies falls in 2020 amid pandemic

SEJONG -- The number of multi-level marketing (MLM) firms operating in South Korea dropped in 2020 from a year earlier in the wake of the coronavirus pandemic, the antitrust watchdog said Wednesday. There were 122 MLMs in Asia's fourth-largest economy as of end-December, down eight from a year earlier, according to the Fair Trade Commission (FTC). Last year's drop represents a turnaround from the uptrend in the number of MLMs in the country, which started in 2017. The FTC said the 2020 decrea

Aug. 4, 2021

Online shopping hits record high in Q2 amid pandemic

Online shopping in South Korea hit a record high in the second quarter as more people used e-commerce shopping platforms amid a contactless trend caused by the pandemic, data showed Wednesday. The value of online shopping transactions stood at 46.9 trillion won ($40.8 billion) in the April-June period, up 25.1 percent from a year earlier, according to the data from Statistics Korea. Amid an economic recovery and a non-contact consumption trend, online purchases of goods and services gained gro

Aug. 4, 2021

Imported car sales up 23% in July amid pandemic

Sales of imported vehicles in South Korea rose 23 percent in July from a year earlier despite the extended COVID-19 pandemic, an industry association said Wednesday. The number of newly registered foreign vehicles climbed to 24,389 units last month from 19,778 a year ago on strong sales of German vehicles, the Korea Automobile Importers & Distributors Association (KAIDA) said in a statement. The three bestselling models last month were Mercedes-Benz's E 250 sedan and E220d 4MATIC sedan and

Aug. 4, 2021

S. Korea's FX reserves hit record high in July on weaker dollar

South Korea's foreign reserves rose to an all-time high in July as a weaker US dollar raised the value of non-dollar assets, central bank data showed Wednesday. The nation's foreign reserves came to $458.7 billion as of end-July, up $4.58 billion from the previous month, according to the Bank of Korea (BOK). Foreign reserves consist of securities and deposits denominated in overseas currencies, International Monetary Fund reserve positions, special drawing rights and gold bullion. The BOK sai

Aug. 4, 2021

S. Korea to sharply increase imports of eggs to stabilize prices

Finance Minister Hong Nam-ki said Tuesday the country will sharply increase imports of eggs in August and September in a bid to help stabilize high prices amid a pick-up in consumer inflation. The country plans to bring in 100 million eggs in August and September, respectively, more than the 70 million eggs imported in June, according to the finance ministry. South Korea brought in 144 million eggs between January and May to ease the supply shortage caused by the outbreak of bird flu here. Hi

Aug. 3, 2021

Extreme weather, pandemic fuel rising inflation

South Korea’s consumer prices gained a higher-than-expected 2.6 percent on-year in July, data showed Tuesday, with the government citing shortage of livestock and agriculture goods due to worsening climate condition as a key catalyst. The consumer prices grew at more than 2 percent for the fourth consecutive month in July, continuing to exceed the Bank of Korea’s 2 percent inflation target and hitting a record high since beginning of the year, according to Statistics Korea. The pri

Aug. 3, 2021

41 firms added to antitrust watch list

The number of South Korean companies affiliated with large business groups under tight supervision rose by 41 in the May-July period, data showed Tuesday, as conglomerates expanded their business scopes to search for new growth engines. The total number of affiliates on the Korea Fair Trade Commission's (KFTC) list reached 2,653 as of end-July, compared with 2,612 three months earlier, according to the data compiled by the antitrust regulator. Major business groups newly launched or acquired 1

Aug. 3, 2021

Inflation growth hits over 2% for 4th straight month in July

South Korea's consumer prices grew more than 2 percent for the fourth straight month in July on higher prices of farm and oil products, data showed Tuesday, raising expectations that the central bank will hike its key rate within this year. The consumer prices rose 2.6 percent on-year in July, accelerating from a 2.4 percent on-year gain the previous month, according to the data compiled by Statistics Korea. The pickup in inflation was due largely to last year's low base and the tight supply o

Aug. 3, 2021

[Life, unprepared] Pension reality check looms as reformists face public backlash

This is the final installment of a series of articles investigating financial activities of seniors amid the rapid digitalization of the finance industry. -- Ed. The birth of the National Pension Service in 1988 epitomized South Korea’s ambition to achieve economic maturity, to build a socioeconomic safety net and to materialize hardworking people’s dreams for a stable and quality life after retirement. More than three decades on, the mandatory social security pension scheme has ri

Aug. 2, 2021

S. Korea troubled by US, EU talks of carbon border tax

Businesses and experts in export-reliant South Korea on Monday expressed concerns over the European Union and the United States’ moves to levy a carbon emissions tax on imported goods. Jitters came as the EU last month put forward plans for the world’s first carbon border tax, which would be levied on imports of goods from economies with laxer climate rules from 2026. US lawmakers then began floating plans of including the tariff as part of a $3.5 trillion budget reconciliation bil

Aug. 2, 2021

S. Korea recoups nearly 70% of bailout funds

South Korea has recouped 69.7 percent of the public funds it spent to bail out troubled financial firms since the 1997-1998 Asian financial crisis, the financial regulator said Monday. The country retrieved 327.9 billion won ($284.3 million) in the second quarter out of the 168.7 trillion won in state funds spent to save firms from bankruptcy, according to the Financial Services Commission (FSC). The recovery rate was up from 69.5 percent recorded at the end of March, it added. The government

Aug. 2, 2021

S. Korea to release 80,000 tons of rice in Aug. to cope with supply shortages

South Korea said Monday it plans to release 80,000 tons of rice into the market this month in a bid to deal with supply shortages and stabilize prices. The move will raise the amount of reserved rice released into the market since January to 370,000 tons, according to the Ministry of Agriculture, Food and Rural Affairs. The ministry earlier said it will release up to 370,000 tons of rice into the market this year. The government said the August plan is aimed at coping with a potential spike i

Aug. 2, 2021

S. Korean manufacturing activity hits 7-month low in July

South Korea's manufacturing activity reached a seven-month low in July amid the spread of the delta coronavirus variant here, a global market researcher said Monday. The purchasing managers' index (PMI) of the country's manufacturing industry came to 53 last month, down 0.9 point from the previous month, according to a survey by IHS Markit. It marks the lowest point since December, though July is the 10th straight month that the index has remained the 50-point mark that separates contraction f

Aug. 2, 2021

Beer imports hit 5-year low in H1

South Korean imports of beer touched a five-year low in the first half of the year amid a nationwide boycott of Japanese products, data showed Monday. The value of beer imports stood at US$106.5 million in the January-June period, down 5.4 percent from a year earlier, according to the data compiled by the Korea Customs Service. The amount represents the lowest first-half tally since the $79.4 million recorded in 2016. The Netherlands was the largest exporter of beer to South Korea, followed b

Aug. 2, 2021

July exports set fresh high on chips, autos

South Korea's exports jumped 29.6 percent on-year in July to a record high, extending their gains to a ninth consecutive month as the global economy maintained a recovery, data showed Sunday. Outbound shipments came to $55.4 billion last month on strong auto and chip sales, according to the data compiled by the Ministry of Trade, Industry and Energy. The monthly export volume marked the highest level since South Korea started compiling related data in 1956. The country's exports over the first

Aug. 1, 2021

N. Korea's economy suffers worst contraction since 1997 in 2020 amid pandemic: BOK

North Korea's economy is estimated to contract 4.5 percent on-year in 2020, marking the worst contraction since 1997, as Pyongyang closed its borders over the COVID-19 pandemic, South Korea's central bank said Friday. The North's economy, which has been hit by tightened UN sanctions over its nuclear and missile programs, expanded 0.4 percent in 2019, but shrank 4.1 percent in 2018 and 3.5 percent in 2017, the Bank of Korea (BOK) said in a report. Last year, North Korea suffered its biggest eco

July 30, 2021

Auto exports jump 71.9% in Q2 on robust demand

South Korea's exports of autos jumped 71.9 percent on-year in the second quarter on the back of robust demand for sedans and eco-friendly vehicles, data showed Friday. The country's outbound shipments of cars came to $10.7 billion in the April-June period, compared with $6.25 billion the previous year, according to the data compiled by the Korea Customs Service. Autos accounted for some 7 percent of South Korea's exports. Imports of autos rose 38.3 percent on-year to $4.1 billion in the cited

July 30, 2021

Manufacturers' biz sentiment drops for August

South Korean manufacturers' business sentiment dropped for August amid a recent spike in COVID-19 infections, central bank data showed Friday. The business sentiment index (BSI) for local manufacturers came to 92 for August, down from 99 for July, according to the data from the Bank of Korea (BOK). The index measures manufacturers' outlook on business conditions in the following month. A reading below 100 means pessimists outnumber optimists. The nation's daily new infections have exceeded 1

July 30, 2021

Industrial output, retail sales grow in June amid economic recovery

South Korea's industrial output and retail sales increased in June from the previous month in the latest sign that Asia's fourth-largest economy is on a solid recovery track, data showed Friday. But the fourth wave of the pandemic is posing a threat to the country's economic recovery as the toughest-ever virus curbs may dampen improving domestic demand. Industrial output rose 1.6 percent in June from the previous month, after stayed flat in May, according to the data compiled by Statistics Kor

July 30, 2021