S. Korea's growth potential poised to decline amid steady drop in exports

South Korea's growth potential has dipped to the mid-2 percent range and may further decline due to the fast aging of the population that is beginning to affect its labor force, a local think tank suggested Sunday.According to the Hyundai Research Institute, the country's growth potential has steadily dwindled from 7.3 percent in the early 1990s to 5.6 percent in the late 1990s and 3.2 percent in the 2011-2015 period.The report said the growth potential of Asia's fourth-largest economy has dropp

Aug. 11, 2019

Korean won tipped to face further decline after 5% dip

South Korea's local currency has dropped by one of the fastest rates in the world against the US dollar but may further decline on apparently growing demand for safer assets, data showed Sunday.The Korean won closed at 1,214.90 won against the greenback Thursday, down 5 percent from 1,154.70 won a month earlier, according to the Bank of Korea (BOK).The sharp decline was largely attributed to the escalating trade tension between the world's two largest economies -- the United States and China --

Aug. 11, 2019

S. Korea's 2020 budget may top 510t won

South Korea's state budget may top 510 trillion won ($421 billion) next year, up some 9 percent from this year's budget, as the country seeks to boost the economy with massive fiscal spending, government officials said Sunday. For the year, the country's budget is set at some 470 trillion won, and the government wants to increase the state coffers by between over 7.3 percent and 9.5 percent.For the year, the annual budget spending increase was set at 9.7 percent.In June, government ministries an

Aug. 11, 2019

Fitch maintains S. Korea's rating at 'AA-'; outlook stable

Global credit appraiser Fitch Ratings said Friday that it has reaffirmed its rating on South Korea at "AA-" with a stable rating outlook. "South Korea's AA- rating balances robust external finances, steady macroeconomic performance, and sound fiscal management against evolving geopolitical risks related to North Korea and medium-term structural challenges from aging demographics and low productivity," the ratings agency said in a report posted on its website.South Korea's eco

Aug. 9, 2019

Japan’s new whitelist rules exclude additional ‘strictly controlled’ export items for now

Japan on Wednesday officially declared a revised bill that excludes South Korea from its list of trusted trading partners. However, the proclamation didn’t stipulate any additional items that Japan will slap restrictions on, aside from the three chip and display materials, offering momentary relief for Korean businesses amid intensifying tension between the two nations. The Japanese Ministry of Economy, Trade and industry announced on its homepage it would put the bill into effect starting

Aug. 7, 2019

Authorities vow to stabilize market amid volatility

South Korea’s financial authorities vowed Wednesday to take preemptive stabilizing measures, responding to the latest local stock market crash incurred in line with the intensifying US-China trade feud and Japan’s export curbs against Korea.Their action plan includes aggressive government interferences such as reinforced regulations on stock short-selling and alleviated rules on treasury stock purchases, as well as possible intervention in the currency market.“The government wi

Aug. 7, 2019

Seoul to take preemptive steps to stabilize markets

South Korea will take swift and bold steps if necessary to help stabilize the financial markets, the country's finance minister said Wednesday, assuring that the country's economic fundamentals remain strong despite what he called "temporary risks."In an emergency meeting with other top financial officials, including the head of the Bank of Korea, Finance Minister Hong Nam-ki said the increased volatility in the market was the result of "short-term risks" that happened to ove

Aug. 7, 2019

Japan’s export curbs to affect imports of carbon fiber, botulinum toxins

　With Japanese Prime Minister Shinzo Abe’s Cabinet removing South Korea from its list of trusted export destinations last week, attention has been drawn to what materials will become subject to import restrictions.　According to the Korea Strategic Institute, which oversees management of strategic goods for the Korean government, 159 materials were selected as items of concern to be subject to the Japanese restrictions for security reasons. 　Among those materials that Japan claimed could be

Aug. 6, 2019

[News Analysis] Markets roiled as US-China spat dwarfs impact of Japan factor

As South Korea’s financial market continued to totter Tuesday after a “Black Monday,” experts observed that the key reason behind the current anxiety is the prolonged US-China trade conflict rather than the escalating feud with Japan.Tense about the US-China situation and its anticipated leverage in the global financial markets, authorities here vowed to take stabilizing steps in case of increased volatility, signaling a possible intervention in the local foreign exchange marke

Aug. 6, 2019

S. Korea vows unfaltering support for domestic production of key materials

The government on Monday announced a plan to support the domestic production of 100 key manufacturing materials, seeking to boost the competitiveness of the local industries in the wake of Japan’s recent economic retaliation.It also vowed to inject 7.8 trillion won ($6.4 billion) into research and development as part of its mid and long-term road map to reduce the industrial dependence on Japan and create a stable supply chain by 2024. “(The government) will select and invest in 100

Aug. 5, 2019

Korean won sharply down vs dollar amid increased uncertainty

The South Korean won traded at a three-year low against the US dollar on Monday on concerns that the escalating trade row between the United States and China, and more recently South Korea's own conflict with Japan, could further cast a pall on its economy. The won was changing hands at 1,212.30 to the greenback as of 10:56 a.m., down 14.3 won from the previous session's close, after easily breaching the psychologically significant level of 1,200 won.After opening at 1,203.60, the local currency

Aug. 5, 2019

S. Korea to set aside W1tr to deal with Japanese trade restrictions next year

South Korea said Sunday that it will set aside more than 1 trillion won ($833 million) in next year's budget to cope with Japan's unilateral economic restrictions.In a senior-level tripartite meeting of the government, the ruling party and the presidential office, officials agreed to do their best to minimize the fallout from Tokyo's decision on Friday to remove South Korea from its list of preferred trading partners."Placing a top priority on strengthening competitiveness of the materials,

Aug. 4, 2019

S. Korea struggles to attain 2% range GDP growth this year

In light of the trade conflict with Japan and other external risks, concerns are mounting that South Korea’s economic growth this year may fall below 2 percent at worst, lower than the range of 2.2-2.5 percent forecast by the government and the central bank.The state-run think tank Korea Institute for International Economic Policy said in its recent report that Japan’s export restrictions would reduce Korea’s gross domestic product by 0.27-0.44 percentage point. The report

Aug. 4, 2019

40% of listed firms' share prices hit 52-week low on Japan's export curb

Nearly 40 percent of South Korea's shares listed on the main and secondary markets saw their share prices hit a 52-week low after Japan announced an export curb against Asia's No. 4 economy in July, data showed Sunday.The number of companies whose share prices hit a 52-week low since July until Friday reached 975 from both markets, making up 43.3 percent of the combined listed firms, according to the figure compiled by the bourse operator Korea Exchange (KRX). From the 900 firms listed on the ma

Aug. 4, 2019

Boycott of Japanese goods to intensify as Tokyo expands export curbs

Calls for a boycott of Japan-made goods in South Korea are expected to come to a boil as Tokyo went ahead with its threat to widen controls over exports of materials by removing Seoul from a list of trusted trade partners despite repeated calls to scrap the move. A boycott of Japanese goods has spread across Korea since Tokyo tightened controls on exports of three high-tech materials to Seoul on July 4, in apparent retaliation against Korean court rulings last year over Japan's wartime forced la

Aug. 2, 2019

Further rate cut possible if downside risks expand: BOK

South Korea’s central bank said Thursday that it could consider further cuts in its base rate amid growing economic uncertainties, such as the trade tension with Japan.“If the economic conditions worsen, (a rate cut) will of course have to be considered,” Bank of Korea Gov. Lee Ju-yeol told reporters. When asked about the US Federal Reserve’s decision to cut the key interest rate Wednesday, Lee welcomed the much-anticipated move, but also expressed some disappointment.&ld

Aug. 1, 2019

BOK says may consider further rate cut amid looming uncertainty

South Korea's central bank said Thursday it may consider further slashing its policy rate to help boost economic growth should conditions worsen amid escalating trade tension with Japan.Last month, the Bank of Korea cut the benchmark rate by 25 basis points to 1.50 percent, citing slower-than-anticipated growth."Should external conditions worsen and downside risks expand, (we) may consider taking an additional policy measure," the Bank of Korea said in a report submitted to the parliam

Aug. 1, 2019

Consumer price growth stays below 1% for 7th month

South Korea's consumer prices rose 0.6 percent in July from a year earlier, staying below the 1 percent threshold for the seventh consecutive month, government data showed Thursday.From a month earlier, the consumer price index fell 0.3 percent, according to the data from Statistics Korea. "Consumer price growth below 1 percent due to temporary factors is not tantamount to deflation," Lee Doo-won, director at the agency's price statistics division, said, citing declines in prices of pe

Aug. 1, 2019

Exports down for 8th straight month amid trade dispute, chip slump

South Korea's exports decreased 11 percent in July from a year earlier, extending their on-year fall to an eighth consecutive month, amid the drawn-out trade dispute between the United States and China, and a decline in prices of semiconductors, data showed Thursday.Outbound shipments came to $46.14 billion for July, down from the $51.8 billion tallied a year earlier, according to the data compiled by the Ministry of Trade, Industry and Energy.Imports fell 2.7 percent on-year last month to $43.7

Aug. 1, 2019

Samsung’s Q2 profit plummets over sluggish chip, smartphone markets

Samsung Electronics on Wednesday announced a 56 percent plunge in operating profit in the second quarter due to the sluggish performance of its two main divisions -- memory chips and smartphones -- amid weakening market conditions. The South Korean tech giant posted consolidated sales of 56.13 trillion won and 6.6 trillion won in operating profit in the April-June period. Its quarterly sales and operating profit decreased 4 percent and 56 percent, respectively, from the same period last year.&nb

July 31, 2019