[News Focus] COVID-19 contributed to widening of income inequality: BOK

The COVID-19 pandemic has worsened income inequality in the nation, as the social distancing rules cost jobs and increased poverty, the central bank said Monday.  The potential total wage loss rate -- which took into account the nation’s labor capability in lockdowns, the duration of lockdowns and the number of regular workers -- amounted to 7.4 percent last year, the Bank of Korea said in its regular report on the nation’s economy.  The rate was also calculated on the

Feb. 1, 2021

Suhyup Bank's pre-tax earnings dip 18% on coronavirus impact

Suhyup Bank, the credit and banking division of South Korea's fisheries cooperative, said Monday its earnings tumbled more than 18 percent in 2020 due to the impact of the coronavirus outbreak. The lender, affiliated with the National Federation of Fisheries Cooperatives, said its pre-tax net profit came to 233.6 billion won ($209 million) last year, down 18.1 percent from a year earlier. The drop resulted mainly from increased loan loss provisions in the wake of the country's COVID-19 outbrea

Feb. 1, 2021

Small merchants' sentiment hits 10-month low amid new coronavirus wave

South Korean small merchants' business confidence sank to a 10-month nadir in January amid a new wave of the novel coronavirus in the country, a poll showed Monday. The Small Enterprise and Market Service said its business survey index (BSI) for small merchants came to 35.8 last month, down 15.8 points from a month earlier. It was the lowest level since March last year, when Asia's fourth-largest economy was gripped by the second wave of COVID-19, whose first local case was reported two months

Feb. 1, 2021

Exports up 11.4% in Jan. on robust chip, auto shipments

South Korea's exports rose 11.4 percent on-year in January to extend their on-year gains for a third consecutive month on the back of brisk demand for chips and cars, data showed Monday, though the global resurgence of new virus cases hindered a full-fledged recovery. Exports came to $48 billion last month, compared with $43 billion a year earlier, according to the data compiled by the Ministry of Trade, Industry and Energy. Imports edged up 3.1 percent to $44 billion, resulting in a trade sur

Feb. 1, 2021

[News Focus] Female 20-somethings hit hard by pandemic

SEJONG -- Women outnumbered and outpaced men in growth as recipients of unemployment benefits over the past year, when COVID-19 dealt a severe blow to the nation. According to the Korea Employment Information Service, the tally for female recipients of unemployment benefits came to 307,178 in December 2020, up 44.3 percent from 212,780, posted a year earlier. This outstripped the number of male recipients, 299,048, and on-year growth of 40.6 percent over the corresponding period. The ag

Jan. 31, 2021

[Contribution] Asia beckons amid a changing global economic landscape

Every day, we are bombarded with headlines and news flashes. Reading these pings, we can all be forgiven for asking, “will this year be any different from the last?” Infection rates are hitting record highs, with travel restrictions being further tightened and jobless rates facing a lagged hit. The geopolitical landscape appears as febrile as ever. Amid the lackluster news flow, it is easy to overlook the profound shifts which are rapidly taking shape. Here in Asia, there are incre

Jan. 31, 2021

S. Korea's exports of EVs shoot up 66% in 2020: KITA

South Korea's exports of electric vehicles (EVs) advanced nearly 66 percent on-year in 2020, data showed Sunday, despite the overall slump in the automobile industry amid the COVID-19 pandemic. Outbound shipments of EVs came to $3.9 billion in 2020, marking the first time for the volume to surpass that of hybrid cars, whose exports came to $2.5 billion last year, according to the data compiled by the Korea International Trade Association. EVs accounted for more than half of the combined outbou

Jan. 31, 2021

Banks' lending rates inch up in December

South Korean banks' lending rates edged up in December last year amid rising market rates, central bank data showed Friday. The average interest rate charged on new bank loans came to 2.74 percent in December, up 0.03 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 impact

Jan. 29, 2021

ABS issuance surges 53% in 2020

The issuance of asset-backed securities (ABS) in South Korea jumped 53 percent in 2020 due to increased sales of government-led mortgage funds, data showed Friday. The value of ABS issues stood at 79.1 trillion won ($71 billion) last year, up 27.4 trillion won from a year ago, according to the data from the Financial Supervisory Service (FSS). ABS are structured with mortgages, auto loans, credit-card receivables and student loans as underlying assets. The jump came as the Korea Housing Finan

Jan. 29, 2021

Industrial output, consumption grow in Dec. amid pandemic

South Korea's industrial output, consumption and investment increased on-month in December, data showed Friday, in the latest sign that the country's economy is on a recovery track amid the pandemic. But stung by the fallout of the COVID-19 pandemic, the nation's industrial production declined last year for the first time since the statistics agency began compiling data in 2000. The industrial output grew 0.5 percent in December from the previous year, compared with a 0.8 percent on-month gain

Jan. 29, 2021

S. Korea to sell W13.9tr worth of Treasurys in Feb.

South Korea plans to sell 13.9 trillion won ($12.4 billion) in state bonds next month, the finance ministry said Thursday. The ministry will issue 700 billion won in Treasurys with a maturity of two years for the first time in an effort to soothe market uneasiness from its planned massive bond sales, according to the Ministry of Economy and Finance. It will also float 3 trillion won in three-year government bonds, 2.7 trillion won in five-year government debts and 2.9 trillion won in bonds wit

Jan. 28, 2021

IMF dispels concerns of S. Korea’s rising budget deficit

South Korea’s current snowballing budget deficit, fueled by the COVID-19 pandemic “can be offset by gradual consolidation” in coming years, the International Monetary Fund said Thursday. The remark by Andreas Bauer, Korea mission chief at the IMF, apparently aims to alleviate concerns surrounding the nation’s government debt surged by four rounds of supplementary budgets implemented to finance COVID-19 relief programs. The sovereign debt is projected reach 956 trillio

Jan. 28, 2021

S. Korea's trade terms rise for 9th straight month in Dec.

South Korea's terms of trade rose for the ninth consecutive month in December as export prices increased at a faster pace than import prices, central bank data showed Thursday. The nation's net terms-of-trade index for goods -- a gauge of trade terms -- increased 7.2 percent last month from a year earlier, according to preliminary data from the Bank of Korea (BOK). It marked the ninth straight month of an on-year rise since April, when the trade terms logged the first on-year hike in over two

Jan. 28, 2021

S. Koreans' consumption of rice hits all-time low in 2020

South Koreans' consumption of rice hit a record low in 2020, data showed Thursday, due mainly to changes in diet and eating habits. The average South Korean consumed 57.7 kilograms of rice in 2020, down 2.5 percent or 1.5 kilograms from the previous year, the Ministry of Agriculture, Food and Rural Affairs said, citing the data compiled by Statistics Korea. Rice is a key staple food for Koreans, but its consumption has been on a steady decline since 1980, when per capita average annual rice co

Jan. 28, 2021

S. Korea needs additional stimulus dose for quick recovery amid pandemic: IMF

The International Monetary Fund (IMF) recommended Thursday that South Korea further carry out accommodative fiscal and monetary policies, including rate cuts, in a bid to accelerate its economic recovery amid the pandemic. Despite rising budget deficit, the country also has fiscal room for increasing targeted support to people and businesses hit hard by the new coronavirus outbreak, according to Andreas Bauer, Korea mission chief at the IMF. An IMF team, led by Bauer, unveiled the outcome of i

Jan. 28, 2021

Watchdog advises banks to cut dividends amid coronavirus impact

South Korea's financial watchdog said Thursday it has decided to advise local banks to reduce dividends this year to help them better cope with the impact of the coronavirus outbreak. The decision, among other things, recommends lenders to keep their dividends below 20 percent of earnings, according to the Financial Services Commission (FSC). But the recommendation doesn't apply to dividends that banks pay out to their holding companies. Two state lenders -- the Korea Development Bank and the

Jan. 28, 2021

Imports of Japanese beer tank in 2020 on anti-Japan campaign

South Korea's imports of Japanese beer plunged nearly 86 percent in 2020 due to a local boycott of goods from the neighboring country, data showed Thursday. Seoul brought in $5.67 million worth of Japanese beer last year, down 85.7 percent from a year earlier, according to the data from the Korea Customs Service and the liquor industry. The tumble follows a drop to $39.76 million in 2019 from a peak of $78.30 million a year earlier. South Koreans launched the boycott in protest of Japan's exp

Jan. 28, 2021

Manufacturers' business sentiment rises in February

South Korean manufacturers' business sentiment rose in February, but concerns about sluggish consumption persisted amid the coronavirus pandemic, central bank data showed Thursday. The business sentiment index (BSI) for local manufacturers came to 81 for February, up from 77 for January, 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. In Decemb

Jan. 28, 2021

Selective support to pandemic-hit sectors is desirable: IMF

The International Monetary Fund (IMF) said Wednesday that it would be desirable for South Korea to selectively provide assistance to sectors and people hit hard by the pandemic as economic recovery is uneven. During a conference call with Finance Minister Hong Nam-Ki, Andreas Bauer, Korea mission chief at the IMF, said South Korea needs to maintain policy support to tackle economic slumps caused by the new coronavirus outbreak. An IMF team held its annual meetings with South Korea's finance mi

Jan. 27, 2021

State pension fund earns big from equity investments in 2020

South Korea's national pension fund earned nearly 58 trillion won ($52.6 billion) from stock investments in 2020 thanks to the bullish stock market, data showed Wednesday. As of Friday, the National Pension Service (NPS) held 181.3 trillion won worth of shares in 275 companies, of which it owns 5 percent or more, according to the data from corporate tracker CEO Score The amount was up about 47 percent, or 57.7 trillion won, from the start of last year. The bulk of last year's gains came from

Jan. 27, 2021