S. Korea's exports down 7.4 pct in 2023 amid weak chip demand

South Korea's exports decreased 7.4 percent on-year in 2023 amid the sluggish performance of chips coupled with global economic uncertainties, industry ministry data showed Monday. Outbound shipments stood at US$632.6 billion last year, according to data compiled by the Ministry of Trade, Industry and Energy. Imports decreased 12.1 percent on-year to $642.7 billion in 2023, resulting in a trade deficit of $9.97 billion. The industry ministry attributed the sluggish exports in 2023 to the gl

Jan. 1, 2024

S. Korea's economy forecast to grow 2% next year

South Korea's economy is forecast to grow an average 2 percent next year, as it is expected to struggle with weak domestic demand in spite of a gradual recovery in exports, according to reports Sunday. The average outlooks by 20 local and international think tanks are largely in line with the 2.1 percent growth forecast recently announced by the Bank of Korea but lower than the government's 2.4 percent projection announced in July. The state-run Korea Development Institute and the Kore

Dec. 31, 2023

S. Korea set to implement global minimum corporate tax scheme

South Korea is set to implement a minimum 15 percent corporate tax scheme for multinational firms next year, in line with a global deal to reduce tax competition between countries and prevent large multilateral businesses from dodging taxes, according to Seoul's finance ministry Sunday. The planned implementation came as South Korea enacted the new rules through the passage by the National Assembly, which call for the minimum corporate tax rate for multinational corporations with more than

Dec. 31, 2023

BOK sells net $3.5 billion in market-smoothing operations in Q3

The Bank of Korea said Friday it sold a net $3.5 billion in the third-quarter of this year to help ease the decline of the local currency against the US dollar. The third-quarter dollar selling marks the ninth straight quarter of dollar selling for market-smoothing operations since the third quarter of 2021, according to the central bank. The third-quarter dollar selling marks a fall from the previous quarter's $5.97 billion. (Yonhap)

Dec. 29, 2023

How much have Korea's food delivery fees risen this year?

The cost of ordering food by delivery in December rose by about 4 percent on-year, higher than the on-year rise in the cost of daily necessities at 3.9 percent, data showed Friday. According to a report released by Statistics Korea, this month’s delivery cost showed a 4.3 percent increase from the figure in November 2022. The figure also marks an increase of 0.4 percent from November this year. The report was based on a monthly survey of eateries across the country from November 2022 thr

Dec. 29, 2023

Tax revenue falls W49tr through Nov. on weak corporate performance

South Korea's tax revenue fell 49.4 trillion won ($38.41 billion) during the first 11 months of 2023 compared with a year earlier due mainly to weak corporate activities and the prolonged slump in the property market, the finance ministry said Friday. But the shortfall had decreased for the second month in a row thanks to the increase in last month's tax revenue. Tax revenue came to 324.2 trillion won during the January-November period, down 13.45 percent, or 49.4 trillion won, from th

Dec. 29, 2023

Consumer prices grow 3.6% in 2023 amid high inflationary pressure

South Korea has continued to experience high inflationary pressure this year following the highest price growth in decades the previous year, but inflation in December ticked down for a second consecutive month in signs that price pressure is easing, data showed Friday. Consumer prices, a key gauge of inflation, rose 3.6 percent on-year in 2023, slowing from a 5.1 percent gain in 2022, according to the Statistics Korea. Last year's figure marked the steepest on-year rise since 1998, when co

Dec. 29, 2023

[Photo News] Last trading day

Hana Bank's dealers monitor stock markets at the bank's headquarters in Seoul on Thursday. The benchmark Korea Composite Stock Price Index closed at 2,655.28, up by 41.78 points, or 1.6 percent, from the previous day. (Yonhap)

Dec. 28, 2023

Industrial output rebounds in November on rising chip production

South Korea's industrial output inched up in November on a solid increase in the production of the semiconductor sector, data showed Thursday. Industrial production rose 0.5 percent on-month last month after a 1.8 percent decline logged a month earlier, according to the data compiled by Statistics Korea. Compared with a year earlier, industrial output rose 2.5 percent last month. November's increase came as the production of the semiconductor sector advanced 12.8 percent on-month in No

Dec. 28, 2023

40-something working population hits 20-year low

The number of 40-somethings with employment as surveyed in the month of November dropped to the lowest point since 2003, data showed Tuesday. According to Statistics Korea, 6.25 million people in their 40s in Korea were employed, down 62,000 from the same month last year. The figure has been on a downward trend after peaking at 6.94 million in 2014. The drop in working South Koreans in their 40s is in direct correlation with the decrease in the general population in the age group. South Koreans

Dec. 26, 2023

External risks, weak domestic demand stand in way of S. Korea's exports-led recovery in 2024

The South Korean economy is expected to be on track for a recovery in 2024 on rising exports, but sluggish growth looms large as higher-for-longer interest rates and sticky inflation could further hamper global growth and domestic demand, experts said Tuesday. South Korea has faced multiple economic challenges in 2023 posed by the global economic downturn caused by aggressive monetary tightening by major economies to curb inflation and geopolitical risks stemming from the Middle East conflict an

Dec. 26, 2023

Envisioned rules revision to reduce number of capital gains tax payers by 70%

The planned relaxation of rules on the capital gains tax is expected to reduce the number of large stockholders subject to the taxation by 70 percent, data showed Sunday, amid criticism it is a tax cut for the rich amid a fall in state revenue. Last week, the finance ministry announced the decision to raise the capital gains tax threshold for shareholders from 1 billion won ($767,459) to 5 billion won in an effort to minimize year-end market volatility caused by investors' stock selling to

Dec. 24, 2023

Farewell to credit cards: Cash-only trend surges as young Koreans tackle overspending

Despite digital progress and surging online transactions, a notable consumption trend is emerging among South Koreans in their 20s and 30s, as an increasing number of them are opting to use physical cash over credit card transactions in their daily lives. Referred to as "cash stuffing," the budgeting method involves withdrawing cash from a bank account and segregating it into designated envelopes for different categories, such as groceries, travel, dining out and more. Gaining popula

Dec. 24, 2023

National Assembly approves historic 15% cut to R&D budget

  The South Korean National Assembly concluded a contentious decision to reduce the national research and development budget to 26.5 trillion won ($20.4 billion) on Thursday, a 15 percent reduction from this year and marking the first R&D budget cut in 33 years. The reduction of 4.6 trillion won is a slight adjustment from the government's initial proposal of a 5.2 trillion won cut, a concession in response to significant backlash and criticism from both the scientific and political com

Dec. 22, 2023

Sales of derivatives-tied securities fall in Q3 as investor sentiment ebbs

Sales of derivatives-linked securities in South Korea fell in the third quarter, as investor sentiment weakened on bearish markets, data showed Friday. The combined value of equity-linked securities and derivatives-linked securities issued in the quarter came to 13.2 trillion won ($10.1 billion), down 3.1 trillion won from a quarter ago, according to the data from the Financial Supervisory Service. The products are structured to track the performance of underlying assets, not guarantee the princ

Dec. 22, 2023

S. Korea's fiscal deficit, debt to rise further in 2024: ministry

South Korea's fiscal deficit is projected to rise to nearly 4 percent of gross domestic product (GDP) next year, the finance ministry said Thursday. The managed fiscal balance, a key gauge of fiscal health calculated on stricter terms, is expected to post a deficit of 91.6 trillion won ($70.19 billion) in 2024, or 3.9 percent of the country's GDP, according to the Ministry of Economy and Finance. The amount was 400 billion won smaller than what the government expected earlier, as the N

Dec. 21, 2023

National Assembly passes W656tr budget for 2024

The National Assembly on Thursday passed the government budget for 2024 amounting to 656.6 trillion won ($502 billion). The final package showed a 2.8 percent gain from that of last year’s, marking the smallest on-year increase for the government budget. It was down 300 billion won from the government proposal of 656.9 trillion won submitted in September. The government's fiscal soundness will continue to face challenges next year, as the proposed tax revenue stands at 612.2 trillion

Dec. 21, 2023

[KH Explains] What's at stake in Korea's digital currency push

The Bank of Korea is proactively pushing for the introduction of a central bank digital currency to maintain its grip on the sovereign currency amid the continued digital transformation of the finance sector. The BOK has developed a two-track system for Korea's CBDC: a retail CBDC for individuals and a wholesale CBDC for institutions. It will first test out the wholesale CBDC by having banks issue tokenized deposits to some 100,000 people in the fourth quarter of 2024. “Digitalizati

Dec. 21, 2023

Banks draw up largest-ever support plan for small businesses

Local banks rolled out 2 trillion won ($1.53 billion) in cash funding to relieve individuals and small businesses having trouble paying back loans or debts amid the prolonged economic downturn. The measure comes in a month since the commercial banking sector and the financial authorities put their heads together to find means to reduce the burden for small companies and share the banks' profit gained from excessive interest rate. The biggest part of the new plan is the 1.6 trillion won inte

Dec. 21, 2023

Big 5 banks brace for losses from foreign real estate projects

South Korea’s top commercial banks -- KB Kookmin, Shinhan, Hana, Woori and NongHyup -- are facing a potential risk of suffering losses in overseas real estate investments amid a slowdown in the global property market following persistent high rates. The balance of overseas real estate funds sold by the five banks stands at 753.1 billion won ($580 million), according to financial authorities. Of the amount, fund products worth 257.1 billion won are set to expire next year. With the global r

Dec. 18, 2023