‘S. Korea will struggle to meet economic growth target this year’

South Korea’s top fiscal policymaker said Sunday that South Korea will struggle to achieve its economic growth target this year but has enough fiscal space to handle its plans to increase expenditure.“Domestic investments and exports are supposed to recover in the second half of the year (in order to reach the growth rate target) but (we are) experiencing difficulties,” said Deputy Prime Minister and Finance Minister Hong Nam-ki in a live television interview with KBS.In July,

Sept. 1, 2019

Two BOK board members call for rate cut: BOK chief

Bank of Korea Gov. Lee Ju-yeol said Friday two BOK board members cast a dissenting vote in the August rate-freeze decision. Cho Dong-chul, who is considered the most dovish among the seven-member monetary policy board, and another dovish member, Shin In-seok, called for the central bank to cut its key rate by a quarter percentage point, Lee told reporters, after freezing the key rate at 1.5 percent. Many analysts view that a dissenting vote could signal a change in the BOK's policy in the c

Aug. 30, 2019

BOK signals rate cut after standing pat at 1.5%

South Korea's central bank has room for a further rate cut to deter a longer skid in Asia's fourth-largest economy, the bank's chief said Friday, with analysts eying a rate reduction in October.The Bank of Korea's monetary policy board voted to leave the bellwether rate steady, after in July the bank carried out the first quarter percentage-point reduction in three years. The BOK's wait-and-see stance had been widely expected as it needs to gauge the impact of the rate cut on Asia's fourth-large

Aug. 30, 2019

Industrial output up 1.2% on-month in July

South Korea's industrial output rose 1.2 percent in July from a month earlier due to increased auto output and facility investment, government data showed Friday. The data compiled by Statistics Korea showed the production in the mining, manufacturing, gas and electricity industries also went up 2.6 percent in July from a month earlier, while the output of the service sector increased 1 percent on-month.From a year earlier, industrial output grew 0.5 percent. (Yonhap)

Aug. 30, 2019

[News Focus] Kospi loses more than 100 points in a month

SEJONG -- Stock prices on the nation’s first-tier bourse have been on a bearish run amid the trade war between South and Japan that began late last month.The Kospi has stayed under 2,000 points for the 18th consecutive trading session since August 2, when it fell to 1,998.13 from 2,017.34 a session earlier.The benchmark index closed at 1,941.09 on Aug. 28, down 8.8 percent or 189.53 points from two months earlier in June 28, when it reached 2,130.62. It also marked more than a 100 point dr

Aug. 29, 2019

S. Korea’s fiscal spending to climb 9.3% in 2020 amid uncertainties

 South Korea’s fiscal spending will climb 9.3 percent on-year in 2020, amid the government’s expansionary policy measures in response to growing economic uncertainties such as US-China friction and Japan’s trade curbs, according to officials.The Ministry of Economy and Finance on Thursday laid out next year’s state budget bill and a five-year fiscal road map at a Cabinet meeting, as a preliminary step to parliamentary submission slated for Tuesday. If the budget bill

Aug. 29, 2019

Japan's exclusion of S. Korea from whitelist takes effect

Japan on Wednesday put into force its decision to remove South Korea from a list of favored trade partners, further deepening a row between the two countries over trade and wartime history. Japan pressed ahead with the removal approved by its Cabinet on Aug. 2, despite Seoul's repeated calls to stop such export curbs, which it sees as political retaliation for last year's South Korean Supreme Court rulings against Japanese firms over colonial-era forced labor.Seoul is expected to officially lodg

Aug. 28, 2019

Moon's presidential hydrogen car debuts amid his clean energy drive

President Moon Jae-in's new official car, based on hydrogen fuel-cell technology, made its debut Tuesday, rolling briefly across the grounds of Cheong Wa Dae.Moon moved from one office building to another inside the presidential compound in the Nexo crossover SUV, produced by Hyundai Motor, according to Cheong Wa Dae.   Moon chose it as a presidential car in a demonstration of his resolve to do his best for the growth of the hydrogen economy and efforts to tackle fine dust air pollutio

Aug. 27, 2019

Trade concerns push S. Korea’s consumer sentiment to 31-month low

South Korea’s consumer sentiment came to 92.5 in August, the lowest indicator readout since January 2017, data released by the Bank of Korea showed Tuesday as global trade issues continued to weigh on the economy. According to the central bank, the composite consumer sentiment index dipped 3.4 points on-month to well below the baseline of 100, which means consumers are decidedly pessimistic compared with average readings between 2003 and 2018. The BOK cited a number of risks to explain the

Aug. 27, 2019

Eximbank inks $86m EDCF loan agreement for Ethiopia

The Export-Import Bank of Korea said Tuesday it had signed a loan agreement to provide $86 million from the Economic Development Cooperative Fund for Ethiopia’s project involving a university. The ceremony was attended by Eximbank Chairman Eun Sung-soo and Ethiopia’s State Minister of Finance Admasu Nebebe during Ethiopian Prime Minister Abiy Ahmed Ali’s state visit to Korea.The EDCF offers long-term low-interest loans to developing countries, set up and managed by the Korean g

Aug. 27, 2019

S. Korea to expand financial support for firms hit by Japan's export curbs

South Korea's top financial regulator said Tuesday the government will expand financial support for companies hit by Japan's export restrictions if needed, as Tokyo's decision to drop Seoul from its list of trusted trading partners is set to take effect this week. Choi Jong-ku, chairman of the Financial Services Commission, made the remarks at a meeting with senior executives of banks, a day before South Korea is officially dropped from Japan's so-called whitelist.  Japan, which tightened e

Aug. 27, 2019

S. Korea to insert W2tr to industries next year amid trade woes

South Korea’s government said Monday that it will insert more than 2 trillion won ($1.64 billion) of the budget next year to help local industries respond to Japan’s economic retaliations and consequent challenges on trade fronts.Also, President Moon Jae-in subscribed to an equity fund that invests in local materials and parts makers, in a supportive gesture for such aggressive fiscal actions.“(The government) will play its due fiscal role, even at the cost of temporary fiscal

Aug. 26, 2019

US-China trade row developing into worst-case scenario: report

The ongoing US-China trade war is developing into a worst-case scenario, according to a report published by a local brokerage on Monday, citing that China has begun settling into a trade war of attrition. According to Hana Financial Investment analyst Kim Kyung-hwan, the global market is now exposed to further uncertainties stemming from the trade feud, as it is on the verge of entering a new stage, while negotiations between the two largest economies remain largely stalled.  “With Ch

Aug. 26, 2019

Seoul to max out fiscal easing next year: minister

South Korea's finance minister said Monday the country will implement a "greater and aggressive" fiscal policy next year to deal with a series of economic headwinds, such as an escalating trade row between the United States and China, and another trade tussle with Japan.Hong Nam-ki, the minister of economy and finance, said the government has drafted an expansionary budget next year, although a temporary fiscal deficit is likely. "An aggressive fiscal role is more important than e

Aug. 26, 2019

S. Korea's tax-GDP ratio nears 27% in 2018

South Korea's tax-to-gross domestic product ratio reached nearly 27 percent in 2018, but it was lower than that for other major economies, a report showed Monday.The country's tax-to-GDP ratio came to 26.8 percent last year, up 1.4 percentage points from the prior year, according to the report from the National Assembly Budget Office. It was the steepest on-year increase in 10 years, and last year marked the fifth consecutive year of rise.The ratio refers to a country's tax revenue and social se

Aug. 26, 2019

Does 52-hour workweek rule create more jobs?

Despite the government’s efforts to create more jobs by mandating companies to cut their employees’ maximum weekly work hours to 52 hours, it has not contributed to creating more jobs, a report claimed Sunday. According to a survey by corporate research firm CEO Score, those who adopted the 52-hour workweek rule last year saw their annual hiring increase by up to 1.8 percent compared to a year earlier. But the growth was almost the same as the time when the policy was not implemented

Aug. 25, 2019

Moody's cuts S. Korea's 2019 growth outlook to 2%

International ratings agency Moody's on Friday slashed its forecast for South Korea's 2019 economic growth to 2 percent from the previous 2.1 percent. In a report, Moody's also cut its outlook for South Korea's economic growth for next year to 2.1 percent from 2.2 percent. "The weaker global economy has stunted Asian exports, and the uncertain operating environment has weighed on investment," Moody's said in the report. "In particular, softer capital formation has mirrored the w

Aug. 23, 2019

S. Korea vows to minimize negative economic impact from GSOMIA termination

A day after South Korea announced its decision to scrap a military intelligence-sharing pact with Japan, Deputy Prime Minister and Finance Minister Hong Nam-ki said Friday that the government will make efforts to minimize any negative impact this might have on the economy. On Thursday, Seoul announced it would terminate the General Security of Military Information Agreement amid an ongoing trade dispute with Japan. Hong said the “pact was deemed not beneficial to the country.”Wi

Aug. 23, 2019

S. Korean stocks open lower on tech losses

South Korean stocks opened lower Friday as investors waited to see clues for the future direction of US rates.The benchmark Korea Composite Stock Price Index (KOSPI) lost 7.15 points, or 0.37 percent, to 1,943.86 in the first 15 minutes of trading. The drop came despite overnight gains on Wall Street ahead of the Jackson Hole Fed meeting, where US Federal Reserve Chairman Jerome Powell is widely expected to hint at a rate reduction down the road.The Dow Jones industrial average added 49.51 point

Aug. 23, 2019

[News Focus] Korea marks 20th anniversary of FTA talks across globe

SEJONG -- It has been two decades since South Korea took its first steps into the free trade market, seeking bilateral deals with major world economies in hopes of enjoying tariff benefits.Since launching negotiations toward a free trade agreement with its first partner, Chile, in 1999, Korea has put 15 FTAs in place with three continental trade blocs (that involve 42 countries collectively) and 12 countries.The three trade blocs are the 28-member European Union, the 10-member Associat

Aug. 22, 2019