[News Focus] Investment banks not upbeat about Korea’s 2020 economy

SEJONG -- South Korea’s economic growth is projected to fall behind that of the US this year, according to outlooks from global investment banks and international organizations.Most of them have predicted that Korea’s 2019 gross domestic product growth will stay at about 2 percent or under on-year, and some researchers at home and abroad are further expecting the gloomy situation to continue in 2020.Fitch Ratings, J.P. Morgan and Barclays have forecast 2.3 percent growth for South Ko

Nov. 12, 2019

S. Korea to strive to attain higher economic growth in 2020

South Korea's finance minister said Monday that the government will make efforts to achieve economic growth of more than 2.3 percent next year.Hong Nam-ki made the pledge citing recent improved growth forecasts by the International Monetary Fund and the Organization for Economic Cooperation and Development.The IMF and the OECD have projected that the South Korean economy could grow 2.2 percent and 2.3 percent, respectively, in 2020."I am neither excessively optimistic nor pessimistic on nex

Nov. 11, 2019

Number of Chinese tourists dips 41 % over 3 years on THAAD row

South Korea suffered a some 41 percent tumble in the number of visiting Chinese tourists over the past three years since its decision to deploy an advanced US missile defense system here, a report said Monday.A total of 4.79 million Chinese visited South Korea in 2018, down 40.6 percent from 8.07 million two years earlier, according to the report from the Federation of Korean Industries. In contrast, the number of Chinese tourists to Japan surged 31.4 percent to 8.38 million over the cited perio

Nov. 11, 2019

Korea's exports down 20.8 % in first 10 days of November

South Korea's exports fell 20.8 percent in the first 10 days of November mainly due to decreased shipments of semiconductors and ships, customs data showed Monday.The country's exports stood at $11.9 billion in the November 1-10 period, compared with $15 billion in the same period last year, according to the Korea Customs Service. By product, exports of semiconductors and ships fell 33.3 percent and 64.4 percent, respectively. Outbound shipments of petroleum products and passenger cars also decl

Nov. 11, 2019

S. Korean economy to rebound slightly in 2020: data

South Korea's economy is expected to grow in the low end of 2 percent next year, probably higher than this year's estimated expansion, industry data showed on Sunday.According to the median of eight brokerage houses on next year's growth estimates, Asia's fourth-largest economy is projected to grow 2.1 percent, with the highest estimate being 2.3 percent.They cited the conclusion of the ongoing US-China trade row, expansionary policies in major economies and aggressive fiscal spending here. &quo

Nov. 10, 2019

Fiscal deficit hit record high amid slow growth, expanded spending

Weighed down by the prolonged slow growth and the government’s consequent fiscal expansion, South Korea’s fiscal deficit reached a record-high level, data by the Ministry of Economy and Finance showed Friday.According to the monthly fiscal trend report, the accumulated fiscal balance as of the end of September stood at 26.5 trillion won ($22.9 billion) in deficit.The corresponding figure had plunged into the red in 2005, 2006, 2009 and from 2013 to 2015, but the latest deficit volume

Nov. 8, 2019

S&P keeps Korea‘s rating at AA with stable outlook

Standard & Poor‘s on Wednesday affirmed its AA sovereign credit rating for South Korea, despite earlier slashing its growth outlook for Asia’s fourth-largest economy.The global rating agency also maintained its stable outlook for the South Korean economy.“The stable outlook reflects our expectation that geopolitical risks in the Korean Peninsula will not escalate to the point of hurting Korea‘s economic fundamentals over the next two years,” the global rating ag

Nov. 6, 2019

Reopening Kaesong complex can improve N. Korea‘s human rights: expert

Reopening a now-shuttered inter-Korean industrial complex in North Korea can lead to improvement in the country‘s human rights conditions as the factory park would provide good working conditions that meet global standards, a US expert said Wednesday.Edward Reed, an adjunct professor at the Asian Institute of Management who formerly served as North Korea country director for the World Vision aid organization, made the remark during a symposium on North Korea’s human rights in Seoul.

Nov. 6, 2019

S. Korea to reduce troops number to 500,000 by 2022

South Korea will reduce its troops by nearly 80,000 by 2022 and expand the use of technologies, responding to an ageing society, according to the country’s fiscal chief on Wednesday.“We will reorganize the structure of our military forces, focusing on cutting-edge technologies,” said Deputy Prime Minister and Finance Minister Hong Nam-ki in a ministerial meeting on economic revitalization, held at Export-Import Bank of Korea headquarters in Yeouido. The restructuring plan aims

Nov. 6, 2019

S. Korea's domestic supply in manufacturing up 1.4 % in Q3

South Korea's total supply in manufacturing edged up 1.4 percent in the third quarter from a year earlier on increased imports, government data showed Wednesday.The manufacturing domestic supply index -- which measures both goods produced locally and brought into South Korea -- stood atn 102.8 during the July-September period, according to the data compiled by Statistics Korea. South Korea's total supply in manufacturing declined 3.9 percent and 0.8 percent in the first and second quarter, respe

Nov. 6, 2019

Medical spending for elderly tops W30tr in 2018

Elderly South Koreans' medical spending covered by the state health insurance program exceeded the 30-trillion-won ($25.9 billion) mark to reach a record high in 2018, data showed Wednesday. Medical expenses for people aged 65 and older came to an all-time high of 31.8 trillion won last year, according to the data by the National Health Insurance Service. The figure was up 12.4 percent from the previous year and 2.1 times from 2011. It took up 40.8 percent of last year's total medical spending o

Nov. 6, 2019

S. Korea adopts price ceiling on privately built flats

South Korea on Wednesday adopted a scheme to cap presale prices of privately built apartments in its extended efforts to stabilize real estate markets.Seoul revised related laws last month to execute the "presale price cap system" for apartments to be built by private builders amid signs of escalating home prices."Demand for new homes in (the capital city of) Seoul has risen sharply due to record-low rates and ample liquidity in the markets.Presale prices of newly built apartments

Nov. 6, 2019

Korea's current account surplus hits 11-month high in Sept.

South Korea's current account surplus reached an 11-month high in September, although its amount narrowed from a year earlier due to slowing exports, central bank data showed Wednesday.The country's current account surplus reached $7.48 billion in September, compared with a surplus of $11.01 billion a year earlier, according to the preliminary data from the Bank of Korea.The figure represents a surplus for five months in a row. The current account is the biggest measure of cross-border trade.The

Nov. 6, 2019

S. Korea’s FX reserves hit record high amid weak US dollar

South Korea’s foreign exchange reserves reached a new high last month, mostly due to the impact of the weakening US dollar, central bank showed Tuesday.As of end-October, the country’s forex reserves stood at $406.32 billion, up $3 billion from a month earlier, according to the Bank of Korea.“The increase is largely due to the profits from forex assets and dollar-equivalent forex reserves held in other currencies as the US dollar has weakened,” the BOK said. Last month, t

Nov. 5, 2019

Korean won jumps on US-China trade optimism

Despite a weak economy, the South Korean currency has soared against the greenback over the past month due mainly to optimism about US-China trade talks, data showed Tuesday. The local currency closed at 1,159.20 won against the US dollar Monday, up 6.4 won from the previous session and as much as 37 won from the end of September. Market watchers said the won's recent strength stems largely from the growing prospect of a trade deal between the world's two largest economies, not from economic fun

Nov. 5, 2019

Tax cut more effective for growth than fiscal spending: think tank

A business-friendly think tank here suggested Monday that tax reduction is more effective for economic growth than fiscal spending, raising objections to the government’s expansionary policies.According to a recent report from the Korea Economic Research Institute, South Korea’s gross domestic product would on average climb 102 won ($0.09) for every 100 won in tax reduction.The institute, affiliated with the nation’s largest business lobby, Federation of the Korean Industries,

Nov. 4, 2019

Online shopping up 22.3 % in September

The total value of goods purchased via online shopping in South Korea rose 22.3 percent in September from a year earlier, government data showed Monday, in the latest sign that a growing number of people are using computers and mobile devices to buy things, ranging from clothes to electronic goods.The total value of online transactions reached 11.18 trillion won ($9.6 billion) in September, the highest level for any September since Statistics Korea started collecting data on online shopping in 2

Nov. 4, 2019

Chip export volume gains solidly amid plunging prices

The volume of South Korea's chip exports has climbed more than 5 percent this year despite a tumble in prices of key products, data showed Monday.The country's semiconductor exports totaled 29,834 tons for the year up to Oct. 25, up 5.2 percent from the same period a year earlier, according to the data from the industry ministry and the Korea International Trade Association. In particular, the volume has been rising at a double-digit rate since July. In the first 25 days of October alone, the am

Nov. 4, 2019

[Contribution] World is changing faster than chaebol

My father fought in the Korean War. Six decades later, it was the last foreign country he visited before he died. His love for the country, something he passed on to me, was so strong that he planned the visit knowing it was his last. It is with this heavy heart that I write my points below -- not as a criticism but as a warning. Change is coming. After the Korean War, the concept of chaebol -- a family-run business conglomerate structure -- was born. They are so successful that today, five chae

Nov. 3, 2019

S. Korea marks one of the sharpest falls in potential growth rate: OECD

South Korea logged one of the sharpest falls in its potential growth rate over the past two years among advanced economies, data showed Sunday.The country’s potential economic output was estimated at 2.7 percent for this year, according to the Organization for Economic Cooperation and Development.Potential output refers to the maximum growth that a given economy may achieve over the medium to long term without stroking inflation.The latest figure, though slightly higher than the 2.5-2.6 pe

Nov. 3, 2019