Banks' lending rates inch down in January

South Korean banks' lending rates edged down in January amid a slight decline in deposit rates, central bank data showed Friday. The average interest rate charged on new bank loans came to 2.72 percent in January, down 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

Feb. 26, 2021

Institutions' investment in foreign securities up 12.8% in 2020

South Korean institutions' investment in foreign securities rose 12.8 percent on year in 2020 as global stocks rallied amid the coronavirus pandemic, central bank data showed Friday. The combined value of foreign securities held by institutional investors came to $369.3 billion as of end-December last year, up $41.8 billion from a year ago, according to the Bank of Korea (BOK). The tally rebounded from a $9.5 billion fall in the first quarter when global financial markets were hit by the fallo

Feb. 26, 2021

Finance minister hopes for economic recovery with COVID-19 vaccination

South Korea's finance minister voiced hope on Friday that the start of the country's COVID-19 vaccine program will help people return to normal lives and give a boost to an economic recovery. Earlier in the day, more than 5,000 health care workers and patients aged under 65 at some 5,800 long-term care facilities across the nation began receiving the first doses of novel coronavirus vaccines. "I believe that the onset of the COVID-19 inoculation will give a precious boost to helping peopl

Feb. 26, 2021

Imported commercial car sales rise 15% in January

Sales of imported commercial vehicles in South Korea rose 15 percent in January from a year earlier on improved demand despite the coronavirus pandemic, an industry association said Friday. The number of newly registered imported commercial vehicles rose to 436 units last month from 379 a year earlier, the Korea Automobile Importers and Distributors Association (KAIDA) said in a statement. Robust demand for tractors, dump trucks and special-purpose trucks gave a boost to the monthly result, i

Feb. 26, 2021

BOK to purchase as much as W7tr worth of state bonds in H1

The Bank of Korea (BOK) said Friday it plans to purchase as much as 7 trillion won ($6.2 billion) worth of government bonds in the first half of this year as it seeks to stabilize bond markets. The plan is aimed at easing volatility of bond yields because the government's issuance of bonds is expected to significantly increase, the BOK said in a statement. The minimum size of the bond purchase plan will be 5 trillion won, the BOK said. South Korea has increased sales of state debts to cushi

Feb. 26, 2021

[News Focus] COVID-19 causes historic gap in online sales by product type

SEJONG -- The novel coronavirus was found to have brought a seriously widening disparity in the online sales performances of local retailers by product segment and business type. South Koreans have sharply increased their online spending on agricultural, livestock and fisheries products as the cut back on dining out amid the pandemic. According to Statistics Korea, the monthly turnover of retailers selling products from agriculture, livestock and fisheries online -- for homemade food -- reach

Feb. 25, 2021

S. Korea to suspend more coal plants in spring to cut fine dust emissions

South Korea said Thursday it plans to suspend the operations of more coal-powered plants during spring time in line with its efforts to cut the emissions of fine dust. Under the plan, the country plans to halt the operation of 19 to 28 coal plants in March depending on the electricity demand, according to the Ministry of Trade, Industry and Energy. It will mark a sharp rise from nine to 17 plants suspended over the December-January period. The country's fine dust emissions from coal-powered pl

Feb. 25, 2021

Finance minister to attend virtual G-20 meeting this week

Finance Minister Hong Nam-ki plans to attend a meeting of finance ministers and central bank governors of the Group of 20 major economies this week to discuss ways to tackle the pandemic, the finance ministry said Thursday. The meeting, to be chaired by Italy, will be held virtually Friday due to the COVID-19 pandemic, according to the Ministry of Economy and Finance. G-20 financial chiefs and leaders of international organizations will discuss ways to strengthen policy coordination to cope wi

Feb. 25, 2021

South Korea maintains 3% growth outlook

South Korea’s central bank on Thursday decided to maintain its previous 3 percent growth outlook for the nation’s gross domestic product this year, with its chief suggesting that vaccination will determine its economic development. Following its first monetary policy meeting of the year, the Bank of Korea decided to keep its interest-rate at a record-low of 0.5 percent, while keeping up the 3 percent growth rate for 2021. The growth rate for this year was announced in November. It

Feb. 25, 2021

Fisheries output hits 4-year low in 2020

South Korea's fisheries output hit a four-year low last year due largely to sluggish aquaculture production and a fall in consumption amid the pandemic, data showed Thursday. The total fisheries output amounted to 3.71 million tons last year, up 3.8 percent from the previous year, according to Statistics Korea. The tally marked the smallest since 2016, when such output reached 3.26 million tons.Last year, the output from seaweed and oyster farming remained sluggish amid long rainy seasons. Fis

Feb. 25, 2021

Young wage workers suffer extended employment slumps amid pandemic

The number of jobs for wage workers in South Korea increased on-year in the June-August period of last year, but those in their 20s and 30s suffered extended employment slumps amid the pandemic, data showed Thursday. The number of paid employee jobs reached 19.1 million in the cited period, up 369,000 from a year earlier, according to the data compiled by Statistics Korea. The quarterly tally was higher than an increase of 211,000 in the March-May period of 2020, when such jobs rose by the sma

Feb. 25, 2021

BOK keeps key rate at record low amid pandemic, growth estimate at 3% this year

South Korea's central bank on Thursday held its benchmark policy rate unchanged at a record low of 0.5 percent, as the third wave of the new coronavirus undermined the scope of sustaining an economic recovery. As widely expected, the monetary policy board of the Bank of Korea (BOK) voted to leave the base rate steady in this year's second rate-setting meeting. The Bank of Korea (BOK) also maintained its growth outlook for the year at 3 percent but hinted it may revise up the figure depending

Feb. 25, 2021

KIPO to strengthen IP protection for digital innovation drive

South Korea’s patent protection agency is seeking to sharpen the nation’s industrial edge by overhauling intellectual property policies amid the rapid digital transformation brought on by the COVID-19 era. Artificial intelligence and data have emerged as essential means of generating intellectual property, but uncertainties surrounding related laws and a lack of institutional support are hindering the use of such technologies. The acceleration of the transition to a digital econo

Feb. 24, 2021

[Herald Interview] S. Korea to ramp up rights protection of digital technology: IP office chief

The chief of the nation’s intellectual property office vowed Wednesday to reinforce intellectual property rights protection of digital inventions to contribute to South Korea‘s efforts to become a pacesetting nation in the digital era.  “In the era of digital economy, business realms driven by digital intellectual property are forecast to expand rapidly. A transition to digital economy depends on active creation of patents for innovative digital technologies across indus

Feb. 24, 2021

Number of new firms hits all-time high in 2020

The number of newly established companies in South Korea climbed more than 15 percent to a new high in 2020 despite the coronavirus pandemic, data showed Wednesday. A total of 1.48 million new businesses were set up last year, up 15.5 percent from a year earlier, according to the data from the Ministry of Small and Medium-sized Enterprises (SMEs) and Startups. The ministry attributed the surge to a sharp increase in the number of real estate firms in the wake of a requirement for the registrat

Feb. 24, 2021

‘Good landlords’ get tax breaks extended

South Korea’s Finance Minister said Wednesday that the state tax benefit program for “good landlords” – those who voluntarily reduce rent to ease burden on tenants – would be extended by another six months to support businesses hit by the COVID-19 pandemic. The voluntary program – launched in April last year – has been rewarding landlords with a tax credit of 50 percent-to-reduction of rent. The program’s deadline has been already extended once f

Feb. 24, 2021

Average monthly income of wage earners up 4.1% in 2019

The average monthly income of South Korean wage earners rose 4.1 percent in 2019 from a year earlier amid a hike in the minimum wage, data showed Wednesday. Salaried workers earned 3.09 million won ($2,800) per month on average in 2019, compared with 2.97 million won in 2018, according to the data compiled by Statistics Korea. Median income of wage earners amounted to 2.34 million won in 2019, up 6.3 percent from the previous year. Median income is a measure of a mid-point income that divides

Feb. 24, 2021

BOK governor strikes back at FSC chief over online payment data

Bank of Korea Gov. Lee Ju-yeol on Tuesday reiterated his opposition to a revision bill that would enable the Financial Services Commission to collect online payment data, lamenting that the regulator lacks understanding of the separate but complementary roles of the two institutions. Lee was striking back at FSC chief Eun Sung-soo, who refuted the central bank’s open criticism of the bill it likened to “Big Brother” of George Orwell’s landmark dystopian novel “1984

Feb. 24, 2021

Trade terms up for 10th straight month in January

South Korea's terms of trade gained for the 10th consecutive month in January, as export prices rose at a faster pace, central bank data showed Wednesday. The nation's net terms-of-trade index for goods -- a gauge of trade terms -- increased 7 percent last month from a year earlier, according to preliminary data from the Bank of Korea (BOK). It marked the 10th straight month of an on-year rise since April last year, when the trade terms logged the first on-year hike in over two years on low oi

Feb. 24, 2021

Biz sentiment improves for March on eased uncertainties: poll

South Korea's business sentiment improved for March on decreased economic uncertainty, with more companies expecting a recovery down the road, a poll showed Wednesday. The business survey index (BSI) of the country's top 600 companies by sales reached 109.2 for next month, up 19.1 points from February, the Korea Economic Research Institute (KERI) said in a statement. "The business index got a boost from expectations that the rollout of new coronavirus vaccines and recovery in global deman

Feb. 24, 2021