Lending rate cap to be lowered to 20% from July

South Korea’s maximum legal interest rate that private lenders can charge customers will be lowered to 20 percent per annum from July, the nation’s top financial regulator said Tuesday. A revised enforcement ordinance to cut the maximum lending rate suggested by the policymaking Financial Services Commission in November was approved during a Cabinet meeting earlier in the day, officials said in a statement. The move is aimed at easing interest rate burdens on beleaguered debtors.

March 30, 2021

Savings banks' profit rises 10% in 2020 on interest income

South Korean savings banks reported 10 percent growth in their combined net profit for 2020, thanks to a modest rise in interest income, data showed Tuesday. The combined net income of the 79 savings banks stood at 1.4 trillion won ($1.24 billion) last year, compared with a profit of 1.3 trillion won a year ago, according to the data from the Financial Supervisory Service (FSS). Their interest income rose 8.7 percent on-year to 6.5 trillion won, while loan-loss provisions jumped 30.7 percent o

March 30, 2021

Rice production costs up 6.5% last year

Rice production costs in South Korea rose 6.5 percent last year as rice output fell due to a record-long rainy season and typhoons, data showed Tuesday. Farmers spent 31,082 won ($27) to produce 20 kilograms of rice last year, compared with 29,172 won the previous year, according to the data compiled by Statistics Korea. The rise in costs came as a long rainy season and typhoons reduced the number of sunny days last year, reducing rice output to a 52-year low, according to the statistics agenc

March 30, 2021

Banks' lending rates edge up in February

South Korean banks' lending rates inched up in February amid a slight decline in deposit rates, central bank data showed Tuesday. The average interest rate charged on new bank loans came to 2.74 percent in February, up 0.02 percentage point from the previous month, according to preliminary data from the Bank of Korea (BOK). The BOK cut the key interest rate to a record low of 0.5 percent in May last year after delivering an emergency rate cut of half a percentage point in March to cushion the

March 30, 2021

S. Korea aims to cement recovery, curb debt growth in 2022 budget

South Korea said Tuesday it plans to maintain an expansionary fiscal policy next year to underpin an economic recovery from the pandemic, but it will also seek to enhance fiscal soundness amid mounting national debt. Under the 2022 budget guidelines, approved by the Cabinet, the country aims to prop up the economy and invest in key policy initiatives for the post-pandemic era, while improving fiscal efficiency, according to the Ministry of Economy and Finance. The South Korean economy contract

March 30, 2021

S. Korea to increase tax incentives W3tr this year amid pandemic

Tax exemptions and incentives are expected to rise almost 3 trillion won ($2.6 billion) on-year this year as the country seeks to help vulnerable people cope with the fallout of the pandemic. The value of the country's subsidies offered via tax exemptions and credit is estimated at 56.8 trillion won this year, up from last year's 53.9 trillion won, according to the Ministry of Economy and Finance. The percentage of tax subsidies against total tax revenue is likely to reach 15.9 percent this ye

March 30, 2021

[News Analysis] S. Korea’s longest serving finance minister burdened with recovery, real estate tasks

Finance Minister Hong Nam-ki is set to become the longest serving fiscal chief in South Korean history, but his leadership is facing public pressure for the revival of an economy battered by the COVID-19 pandemic and to appease discontent on job creation and real estate policies. By Thursday, Hong will pull ahead of Yoon Jeung-hyun -- who served for 842 days under the Lee Myung-bak administration -- as the nation’s most durable chief economic policymaker and deputy prime minister. He has

March 29, 2021

Card firms 2020 net rises 23.1% amid pandemic

South Korea's credit card firms saw their combined earnings rise 23.1 in 2020, helped by higher income from loans amid the COVID-19 pandemic, the financial regulator said Monday. The combined net profit of eight card issuers, including Shinhan Card Co., Samsung Card Co. and KB Kookmin Card Co., came to 2.02 trillion won ($1.8 billion) last year, up 380.1 billion won from a year earlier, according to the Financial Supervisory Service (FSS). The sharp rise was attributed to a combination of earn

March 29, 2021

Korean shippers, shipbuilders sailing well amid Suez blockage

Shares in South Korea's shipbuilders and shippers have enjoyed decent increases in the past weeks, but this time, they are again on a rising track on expectations for a further climb in freight rates and demand for ships amid the unprecedented blockage at the Suez Canal. HMM Co., South Korea's largest shipper, saw its shares jump 15.96 percent to close at a record high of 34,150 won Friday, though it traded 5.86 percent lower as of 10:50 a.m. Monday in the face of profit-taking. Pan Ocean Co.,

March 29, 2021

Biz sentiment down for April on uncertainties: poll

South Korea's business sentiment slightly fell for April on increased uncertainties in the electronics and auto manufacturing industries, a local think tank said Monday. The business survey index (BSI) of the country's top 600 companies by sales reached 106 for next month, down 3.2 points from March, the Korea Economic Research Institute (KERI) said in a statement. But the index for April stayed above 100 for the second straight month after its March reading exceeded 100 for the first time in

March 29, 2021

S. Korea's exports predicted to rise 18.3% in March: poll

South Korea's exports are expected to rise 18.3 percent in March from a year earlier to extend the gains for the fifth consecutive month, led by strong demand for chips and automobiles, a poll showed Monday. Outbound shipments are expected to reach $54.6 billion this month, according to the poll by Yonhap Infomax, the financial news arm of Yonhap News Agency. The survey was conducted on eight brokerage houses. Imports are estimated to rise 17.8 percent over the period to reach $49.2 billion wo

March 29, 2021

Corporate direct financing jumps 29% in February

South Korea's corporate direct financing jumped 29 percent in February from the previous month due to a modest rise in bond sales, data showed Monday. Local companies raised a combined 19.9 trillion won (US$17.6 billion) by selling stocks and bonds last month, up 4.4 trillion won from a month ago, according to the data from the Financial Supervisory Service (FSS). Corporate stock sales plunged 64.2 percent on-month to 684.6 billion won, with the value of initial public offerings dipping 43.9 p

March 29, 2021

5 window producers fined for exaggerated advertising

South Korea's antitrust regulator said Sunday it has decided to fine five manufacturers of windows a combined 1.28 billion won ($1.13 million) for exaggerated advertising. LG Hausys and its four rivals ran advertisements that misled consumers to believe that installing their products can sharply reduce energy costs, according to the Korea Fair Trade Commission (KFTC). The companies did not specify in ads that such results on energy efficiency could be generated in a strictly controlled environ

March 28, 2021

NPS delays decision on domestic stock ratio

South Korea‘s public pension fund, the National Pension Service, delayed a decision on whether or not to increase the proportion of domestic stock holdings, amid mounting criticism over the fund’s selling streak. NPS investment Management, the fund’s highest decision-making body, held a meeting Friday to discuss the matter, but failed to reach an agreement on whether or not to raise the proportion of strategic asset distribution limit from the current 2 percentage points to 3

March 26, 2021

Home transactions tumble 24.5% in Feb.

Home transactions in South Korea sank nearly 25 percent in February amid government measures to rein in rising prices, data showed Friday. The number of homes changing hands nationwide stood at 87,021 last month, down 24.5 percent from a year earlier, according to the data from the Ministry of Land, Infrastructure and Transport. The February reading was also down 4 percent from the previous month. The number of home transactions in the Seoul metropolitan area, which includes the western port

March 26, 2021

Over 80% of extra budget-funded relief aid to be offered by May

South Korea plans to provide more than 80 percent of another extra budget-funded relief aid to pandemic-hit smaller merchants by May, a senior government official said Friday. The National Assembly on Thursday approved the 15 trillion-won ($13 billion) extra budget designed to finance the 20.7 trillion-won aid package for the self-employed and vulnerable groups battered by the pandemic. Second Vice Finance Minister An Il-whan said more than 80 percent of the 7.3 trillion-won budget set aside t

March 26, 2021

S. Korea to ease inflation pressure amid rising raw material prices

South Korea will step up efforts to ease growing inflationary pressure as hikes in global grain prices have jacked up prices of processed products, a senior government official said Friday. Vice First Finance Minister Kim Yong-beom also said the government plans to consider measures to ease financial burdens of businesses that have suffered from hikes in raw material prices. "People have felt higher price pressures as prices of processed goods, such as ready-to-eat steamed rice, bread and

March 26, 2021

S. Korea to unveil measures to stem property speculation by civil servants

South Korea plans to unveil a set of measures next week to root out property speculation by public officials amid a mounting public outcry over a land speculation scandal by public officials, the finance minister said Friday. Finance Minister Hong Nam-ki stressed the government is preparing to come up with measures to eradicate property speculation and illegal practices, and prevent the recurrence of similar cases. "(With the measures), the government plans to apply very strict standards

March 26, 2021

Consumer sentiment gains for 3rd month in March

South Korea's consumer sentiment rose for a third consecutive month in March, as exports showed signs of a modest recovery amid the COVID-19 vaccine rollout, central bank data showed Friday. The composite consumer sentiment index (CCSI) came in at 100.5 for March, up 3.1 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 third on-month gain following a drop in December las

March 26, 2021

IMF sharply ups 2021 growth outlook for S. Korea to 3.6%

The International Monetary Fund (IMF) on Friday sharply raised its growth outlook for South Korea this year, citing robust exports and the country's fiscal policy support amid the pandemic. The IMF forecast the South Korean economy to grow 3.6 percent this year, up from its estimate in January of 3.1 percent. The upward revision came as the IMF issued a report on the outcome of its annual consultation with South Korea held in January. The IMF said Asia's fourth-largest economy is expected to

March 26, 2021