S. Korea's inflation rises 0.3% in July

SEJONG -- South Korea's annual inflation rose 0.3 percent in July, marking the first upturn in three months, as signs of a recovery in consumer sentiment have appeared amid the coronavirus pandemic, data showed Tuesday. The July tally compares with zero growth in June, according to the data released by Statistics Korea. The nation's inflation was unchanged on-month, the data showed. Core inflation, which excludes agricultural and petroleum products, rose 0.7 percent from a year earlier. Ut

Aug. 4, 2020

Concerns of liquidity trap rise as cash deposits grow

Despite the nation’s monetary and fiscal policymakers’ measures to funnel liquidity into the market to offset risks from the coronavirus, cash flows into unexpected areas, such as bank deposits, have been fueling concerns of a liquidity trap, officials and experts recently noted. South Korea’s M2 money supply came to 3.065 quadrillion won ($2.56 trillion) in May, up 10.6 percent on-year, data from the Bank of Korea released in July showed. The figure marked the largest amou

Aug. 3, 2020

Tax authorities zero in on foreigners with multiple homes

SEJONG -- The nation’s tax agency has launched a probe targeting 42 foreigners who own multiple apartments here and are alleged to have evaded taxes, as part of the government’s drive to curb surging housing prices and discourage speculative investment, officials said Monday. The probe involves a 40-something US citizen who has purchased 42 homes in South Korea since 2018 for 6.7 billion won ($5.6 million) in total. The American underreported their rental income to evade income t

Aug. 3, 2020

Apartment 'jeonse' deals in Seoul hit 9-year low in July

Apartment lease contracts in the South Korean capital of Seoul sank to a nine-year low in July amid tighter rules, municipal data showed Monday. The number of apartment lease contracts, called "jeonse" here, stood at 6,304 in July, the lowest monthly level since data tracking began in 2011, according to the data from the Seoul city government. The July reading amounted to 46 percent of this year's monthly high of 13,661 recorded in February. Jeonse is a home rental arrangement uniq

Aug. 3, 2020

S. Korea ranks 2nd in GDP growth rate after China: OECD

South Korea’s economy declined 3.3 percent on-year during the second quarter, but it ranks second in terms of gross domestic product growth rate among major economies, data showed Sunday.  According to the Organization for Economic Cooperation and Development, the nation’s second-quarter GDP growth rate was the second-highest among 14 major economies. China clinched the first place as its economy grew 11.5 percent during the same period.  The OECD -- a forum of 37 mostly

Aug. 2, 2020

S. Koreans' nonessential spending plummets amid coronavirus

South Korean consumers purchased far fewer nonessential items in the first quarter than normal due to economic uncertainty sparked by the coronavirus pandemic, data showed Sunday. The combined essential spending came to 84.81 trillion won ($71 billion) in the January-March period, accounting for 40.56 percent of total household expenditures, according to the data released by the Bank of Korea. It is the first time that the proportion of essential spending in total household expenditures surpa

Aug. 2, 2020

S. Korea's growth rate second highest among 14 major countries

South Korea's economy contracted 3.3 percent in the second quarter from a quarter earlier, but it fared well compared with other major economies, data showed Sunday. South Korea's gross domestic product (GDP) growth rate was the second highest among the 14 countries that included the United States, China, Germany and France, according to the Organization for Economic Cooperation and Development (OECD), a group of 36 mostly rich and advanced nations. The OECD has released GDP growth rates for

Aug. 2, 2020

Export slump eases due to reopenings, chips on recovery track

South Korea's exports extended their slump to a fifth consecutive month in July amid the fallout of the new coronavirus, but the pace of decline slowed sharply due to reopenings, data showed Saturday. Outbound shipments came to $42.8 billion last month, down 7 percent from $46 billion posted a year earlier, according to the data compiled by the Ministry of Trade, Industry and Energy. The latest figures were better than what the market had expected. According to a poll by Yonhap Infomax, the f

Aug. 1, 2020

S. Korea’s industrial output recovers in June

South Korea’s industrial output gained 4.2 percent on-month in June, showing signs of recovery from the contractions prompted by the coronavirus pandemic in recent months, data from Statistics Korea showed Friday. Along with industrial output -- which had rebounded from a 1.2 percent on-month drop in May and a consistent five-month slide -- retail sales and facility investment inched up 2.4 percent and 5.4 percent, respectively, in the same period. This put the key indicators of the nati

July 31, 2020

NPS to raise overseas investment ratio to 50% by 2024

South Korea’s public pension fund National Pension Service said that it will expand its overseas investment proportion to over 50 percent during the next five years, seeking for higher returns amid market uncertainties caused by COVID-19. The NPS’ decision-making Investment Management Committee met Friday at The Plaza Seoul Hotel under the chairmanship of Health Minister Park Neung-hoo to discuss the organization’s mid-term overseas investment blueprint. “As a long-ter

July 31, 2020

S. Korea to deliver $5.15m in ODA via World Bank

South Korea will provide over $5 million through the World Bank to assist emerging economies amid the COVID-19 pandemic, the Ministry of Economy and Finance said Friday. “We will deliver $5.15 million, which is around 6 billion won, to six emerging economies to help them deal with COVID-19 and (to pursue) digital and green (development) projects,” the ministry said in a release. “This latest approval for official development assistance will enhance international cooperatio

July 31, 2020

S. Korea's industrial output rebounds in June

SEJONG -- South Korea's industrial output rebounded in June, possibly indicating that the nation's economy hit bottom amid the coronavirus pandemic, data showed Friday. The nation's overall industrial production gained 4.2 percent on-month in June, following a 1.2 percent on-month decline in May, according to data compiled by Statistics Korea. Compared with a year earlier, overall industrial production also rose 0.7 percent in June. Retail sales rose 2.4 percent from a month earlier as the n

July 31, 2020

S. Korea to inject W40tr into ‘innovative’ champion firms

South Korea on Thursday unveiled a financial package to inject some 40 trillion won ($33.48 billion) into 1,000 selected innovative businesses over the next three years. The plan seeks to promote synergies between the financial sector and actual industries, and to ultimately shore up the so-called “Korean New Deal” -- the country’s midterm economic stimulus program worth 160 trillion won. “(The government) will designate 1,000 innovative business pioneers from various

July 30, 2020

S. Korea holds hearing on potential FTA with Uzbekistan

South Korea said Thursday it will hold a public hearing on the envisioned free trade pact with Uzbekistan, as the country aims to boost exports in the face of the new coronavirus pandemic. The meeting will be held Friday by inviting representatives from business, energy and agricultural groups, according to the Ministry of Trade, Industry and Energy. South Korea and Uzbekistan have already completed a feasibility study on the proposed free trade agreement. Earlier this month, Finance Minist

July 30, 2020

S. Korea, US extend $60b currency swap deal by 6 months amid pandemic

South Korea and the United States have agreed to extend a $60 billion bilateral currency swap agreement by six months in an effort to help ease lingering market uncertainties amid the new coronavirus outbreak, the Bank of Korea (BOK) said Thursday. In late March, the BOK and the US Federal Reserve signed the bilateral currency swap facility to help ease financial market jitters caused by the COVID-19 pandemic. The swap agreement, initially set to end on Sept. 30, will be extended until March 3

July 30, 2020

Corporate loans lead liquidity jump this year

South Korea's corporate loans have risen sharply this year amid the coronavirus outbreak, leading the overall surge in the country's money supply, central bank data showed Wednesday. The country's M2 money supply came to 3,065.8 trillion won ($2.56 trillion) at the end of May, up 10.6 percent from a year earlier, according to the data from the Bank of Korea (BOK). It marks the largest amount ever, and the on-year growth rate also represents a record high. Corporate lending contributed more t

July 29, 2020

Corporate bond sales increase 3.8 in H1

South Korean companies' bond sales rose nearly 4 percent in the first half, but their share offerings went south, data showed Wednesday. Local businesses raised 89.4 trillion won ($74.5 billion) by selling bonds in the January-June period, up 3.8 percent from a year earlier, according to the data from the Financial Supervisory Service (FSS). Increased sales of debt by nonfinancial companies and asset-backed securities led the overall rise, offsetting a fall of 965 billion won in the issuance

July 29, 2020

Korea's consumer sentiment soars to 5-month high in July

South Korea's consumer sentiment continued to improve this month from a month earlier, reaching the second-highest point since the country reported its first confirmed case of the new coronavirus six months earlier, central bank data showed Wednesday. The country's composite consumer sentiment index came to 84.2 in July, up 2.4 points from the previous month, according to the data from the Bank of Korea (BOK). The reading marks the highest since 96.9 posted February. South Korea reported its

July 29, 2020

Older Koreans hope to work until age 73: survey

Nearly 67 percent of South Koreans between the ages of 55 and 79 want to keep working, a survey showed Tuesday. Their preferred retirement age is 73 on average.  According to a survey conducted by Statistics Korea, some 9.62 million respondents, or 67 percent of the 14.27 million citizens surveyed, said they want to keep working, up 2.5 percentage point from the previous year. They hoped to earn a monthly wage between 1.5 million won ($1,270) and 2 million won. Nearly 60 percent of the

July 28, 2020