Korea to invest over W5tr in chips, bio, next-gen cars

South Korea plans invest over 5 trillion won ($4.3 billion) in semiconductors, biohealth and next-generation vehicles next year and provide them the latest tax benefits ahead of other industries, the nation’s fiscal policy chief said Thursday. The size of next year’s fiscal support for the industries dubbed the “Big 3” will be larger than this year’s corresponding figure of some 4.2 trillion won.  Finance Minister and Deputy Prime Minister Hong Nam-ki po

July 29, 2021

US rate freeze has limited impact on global financial markets: BOK

The Bank of Korea said Thursday that a decision by the US Federal Reserve that left its benchmark rate unchanged had little impact on global financial markets. The central bank still added caution, saying that “financial market volatility could intensify as uncertainty remains over when major economies recover from the prolonged COVID-19 pandemic as well as virus variants. “The BOK will closely monitor internal and external risk factors and review countermeasures against them.&rdq

July 29, 2021

Wine imports hit record-high in H1 over growing drinking-at-home culture

Wine imports to South Korea hit an all-time high in the first half of this year, with a growing number of people enjoying drinking at home due to the prolonged pandemic, data showed Thursday. According to data compiled by the Korea Customs Service, Korea imported $236.9 million worth of wine in the January-June period, up 110 percent from a year earlier. The figure not only broke the previous first half record, but also accounted for 86 percent of yearly wine imports in 2020. Following the g

July 29, 2021

S. Korea vigilant of market volatility from virus, Fed's policy: official

South Korea will closely monitor the financial market as market volatility could increase from a spike in virus cases and talks of an early tapering of the Federal Reserve's bond purchase, a senior government official said Thursday. After a two-day policy meeting, the Fed on Wednesday kept its key interest rate near zero and left unchanged its bond-buying program. The Fed said the US economy is on a solid recovery track despite a flare-up in COVID-19 cases, but it did not provide a timetable fo

July 29, 2021

S. Korea to spend over W5tr in supporting chips, 2 other sectors next year

South Korea's top economic policymaker said Thursday the government plans to spend more than 5 trillion won ($4.3 billion) in supporting chips, bio-health and next-generation vehicle sectors next year. Finance Minister Hong Nam-ki said the country will spare no effort to nurture the three "big" industries. This year, the government plans to offer financial support worth some 4.2 trillion won to the sectors. The country has designated semiconductors, batteries and vaccines as three ke

July 29, 2021

Biz sentiment falls for August amid pandemic: poll

South Korea's business sentiment fell for August due to deteriorating profitability in the restaurant, accommodation and service industries amid the extended coronavirus pandemic, a local think tank said Thursday. The business survey index (BSI) of the country's top 600 companies by sales fell to 95.2 for next month, down 7.1 points from July, the Korea Economic Research Institute (KERI) said in a statement. The business outlook fell below 100 for the first time in five months. The BSI had sta

July 29, 2021

Trade terms fall for 3rd month in June

South Korea's terms of trade fell for the third consecutive month in June due to a rise in prices of imported goods, central bank data showed Wednesday. The nation's net terms-of-trade index for goods -- a gauge of trade terms -- declined 3.7 percent last month from a year earlier, according to preliminary data from the Bank of Korea (BOK). The figure is calculated by dividing the index for export prices by that for import prices. It shows the amount of imports a country can buy for each unit

July 28, 2021

Population mobility falls for 6th month in June

The number of South Koreans who moved to different residences in the country fell for the sixth straight month in June amid a heated housing market, data showed Wednesday. The number of people who changed their residences fell 10.4 percent on-year to 544,000 last month, according to the data compiled by Statistics Korea. It marked the sixth consecutive month of on-year decline after population mobility rose for the seventh month in December last year amid skyrocketing home prices. The populat

July 28, 2021

S. Korea expands open banking ecosystem, invites fintech firms

South Korea's financial authority said Wednesday it plans to expand the ecosystem of the so-called open banking platform by inviting users of fintech services, allowing more people to enjoy simpler financial transactions. South Korea launched the open banking service in 2019, which centers on allowing customers to use any mobile banking application of their choice to access their accounts in different banks. Major South Korean banks already have joined the platform. Starting Friday, users of f

July 28, 2021

Minister warns housing market may face sharper-than-expected price correction

South Korea’s fiscal policy chief said Wednesday that the nation’s heated housing market may see a sharper-than-expected drop in prices in the near-future, with the possibility of an interest rate hike by the end of the year growing. “With the early subscriptions for houses scheduled in the second-half of the year, experts’ remarks indicating a price peak, a looming interest rate hike and liquidity control, there is a possibility of a partial housing price correction,&r

July 28, 2021

S. Korea maintaining stable supply of livestock products amid summer heat

South Korea's agricultural ministry said Wednesday the recent scorching summer heat has had a limited impact on the supply of livestock products, although local farms may suffer more damage down the road if the heat wave continues. As of Monday, a total of 219,000 chickens died due to the sweltering summer heat in July, according to the Ministry of Agriculture, Food and Rural Affairs. Around 5,000 pigs were also reported dead. The ministry, however, said the figures are far below those reporte

July 28, 2021

Finance chief warns of housing bubble as interest rate hike looms

South Korea's top economic policymaker on Wednesday warned of a housing bubble amid a looming interest rate hike, and vowed to increase the housing supply and tighten lending rules to stabilize the market. Finance Minister Hong Nam-ki expressed worries over the continued housing rally in the Seoul metropolitan area driven by ample liquidity and expectations of a further price hike, which could threaten the financial stability amid the snowballing household debt. "Several housing market in

July 28, 2021

Consumer sentiment drops in July over spike in COVID-19 infections

South Korea's consumer sentiment dropped in July over a recent spike in COVID-19 infections, marking the first decline since December last year, central bank data showed Wednesday. The composite consumer sentiment index (CCSI) came in at 103.2 for July, down 7.1 points from the previous month, according to the data from the Bank of Korea (BOK). A reading above 100 means optimists outnumber pessimists. The latest reading marks the first fall since December last year, when the index stood at 91

July 28, 2021

IMF raises Korea’s growth forecast to 4.3% in 2021

The International Monetary Fund on Tuesday projected the South Korean economy to grow 4.3 percent this year, presenting a more sanguine outlook than the government and other major institutions, despite concerns about the impact of the latest surge in coronavirus infections. According to the Ministry of Economy and Finance, the IMF revised its projection on Asia’s fourth-largest economy up by 0.7 percentage point from its April forecast. The latest figure released by the Washington-base

July 27, 2021

S. Korea’s tax chief in Russia, Uzbekistan for talks

South Korea’s tax agency chief visited Russia and Uzbekistan to discuss ways to strengthen ties with their respective agencies for offshore tax evasion and pave the way to resolve tax-related difficulties for local companies doing business operations there, the tax authority said Tuesday. NTS Commissioner Kim Dae-ji met his Uzbek counterpart Sherzod Kudbiev for a bilateral meeting in the country’s capital Tashkent after meeting with the Federal Tax Service of Russia Commissioner Dan

July 27, 2021

Nearly 7 in 10 senior citizens want to work until 73: survey

Nearly 7 in 10 South Korean senior citizens want to keep working until the age of 73 amid a rise in life expectancy, a survey showed Tuesday. The survey by Statistics Korea showed 10 million, or 68.1 percent, of the 14.76 million South Koreans aged between 55 and 79, said in May they want to continue to work in the future, up 0.7 percentage point from a year earlier. The elderly said they want to keep working until an average of 73, unchanged from the previous year. As for the main reasons fo

July 27, 2021

Finance chief to issue public message over housing market

Finance Minister Hong Nam-ki plans to issue a public message about the housing market Wednesday, the finance ministry said Tuesday, as the government seeks to stabilize high-flying home prices. Hong plans to hold a press briefing Wednesday to explain the government's assessment of the current housing market and state its housing policy goal, according to the Ministry of Economy and Finance. Hong has repeatedly warned that housing prices could fall at any time as prices of apartments in the gre

July 27, 2021

Retail sales up 12% in H1 as consumers return to stores

Retails sales in South Korea rose 12 percent in the first half of 2021 from a year earlier, data showed Tuesday, as consumers were fatigued by the prolonged COVID-19 pandemic and became less reluctant to visit supermarkets and department stores. The combined sales of 25 major offline and online retailers reached 75 trillion won (US$64.9 billion) over the January-June period, up from 67 trillion won posted in 2020, according to the Ministry of Trade, Industry and Energy. The rebound mainly came

July 27, 2021

S. Korea, ASEAN to upgrade their FTA

South Korea's trade ministry said Tuesday it has launched talks with ASEAN to update their free trade agreement (FTA) and further lower trade barriers, as the country seeks to diversify its trade portfolio and expand its presence in Southeast Asia. Officials from the two held a virtual meeting to discuss ways to expand their bilateral economic ties, according to the Ministry of Trade, Industry and Energy. Asia's No. 4 economy and ASEAN implemented their FTA in 2007. ASEAN currently stands as

July 27, 2021

Regulator OKs takeover of Doosan Infracore by Hyundai Heavy

South Korea's antitrust regulator said Tuesday it has approved a deal by an affiliate of Hyundai Heavy Industries Holdings Co. (HHIH) to buy Doosan Infracore Co., the country's largest construction equipment maker. In February, HHIH inked a deal to acquire a 35 percent stake in Doosan Infracore for 850 billion won ($735 million) from its cash-strapped parent, Doosan Heavy Industries & Construction Co. In April, Hyundai Genuine Co., a wholly owned unit of HHIH, took over the parent's stake

July 27, 2021