Industrial output down 0.7% on-month in June

South Korea's industrial output edged down 0.7 percent in June from a month earlier due to decreased production in the service sector, government data showed Wednesday.The data compiled by Statistics Korea showed the production in the service sector declined 1 percent in June from a month earlier, while the output of semiconductors rose 4.6 percent on-month.From a year earlier, industrial output fell 1.1 percent. Retail sales fell 1.6 percent in June from a month earlier due to decreased sales o

July 31, 2019

[News Focus] Korea falling behind in GDP, exports

SEJONG -- South Korea is one of the few developing countries whose economy expanded sufficiently over the past decades to compete with advanced nations in Europe.Korea achieved the world’s 10th-largest gross domestic product in 2005. It was 28th in 1980, ranked behind Indonesia (21st), Iran (20th) and Saudi Arabia (14th).As exports in sectors such as semiconductors and automobiles greatly contributed to its GDP, there have been predictions that the nation could consistently become one of t

July 30, 2019

Samsung C&T retains top spot in builder rankings

Samsung C&T has been named the top builder in South Korea for six straight years in terms of building capacity, government data showed Monday. The construction affiliate of Samsung Group took the top slot among the 61,559 local construction firms evaluated, according to the Ministry of Land, Infrastructure and Transport. Those evaluated account for about 89 percent of 68,781 construction firms here.Samsung C&T’s construction capacity was valued at 17.5 trillion won ($14.7 billion),

July 29, 2019

Exports down nearly 10% in July: poll

South Korea’s exports have extended their slump for the eighth consecutive month in July, falling nearly 10 percent from a year earlier, a poll showed Monday, due mainly to the prolonged trade row between the United States and China.Outbound shipments are estimated to reach $46.6 billion last month, down from $51.8 posted a year earlier, according to the poll conducted by Yonhap Infomax, a financial information service arm of Yonhap News Agency, on 10 local financial companies. The Korea C

July 29, 2019

[News Focus] Korea overtakes US in youth unemployment

SEJONG -- South Korea saw its youth unemployment rate reach 10.4 percent in June 2019, up more than 1 percentage point from 9 percent a year earlier.The number of jobless people aged between 15 and 29 increased from 388,000 to 453,000 over the corresponding period, according to Statistics Korea.The youth unemployment rate exceeding 10 percent is arousing social worries, as it was 8.4 percent a decade ago (in June 2009) and 8 percent five years ago (in June 2014).Though the Moon Jae-in administra

July 28, 2019

S. Korea speeds up efforts to file compliant with WTO on Japan's export curbs

The South Korean government is speeding up preparations to file a complaint with the World Trade Organization as Japan is moving to remove Asia's fourth-largest economy from its "whitelist" of trusted trading partners, sources said Sunday."We plan to file a complaint with the WTO on a date convenient for South Korea," Deputy Trade Minister Kim Seung-ho said last week after returning home from Geneva, where he participated in a WTO meeting to win support from the international

July 28, 2019

Daily trading volume on main bourse hits lowest in 30 months

The daily average trading volume at South Korea's main bourse reached the lowest level in 30 months in July, data showed Sunday, as investors' sentiment was hurt by the global trade disputes.As of Friday, the daily average trading volume on the main bourse reached 4.3 trillion won ($3.63 billion), which marked the lowest level since 4.1 trillion won posted in January 2017, according to the Korea Exchange.The figure marked a sharp decrease from May last year, when the figure reached a record high

July 28, 2019

S. Korea to double fund for restructuring of SMEs

South Korea's financial regulator said Friday it will double the size of funds to restructure struggling small and medium-sized enterprises this year, as part of its drive for "market-oriented" corporate restructuring. The government has launched a 1 trillion-won ($845 million) fund for the restructuring of SMEs, but the Financial Services Commission said it will increase the fund to 2 trillion won this year.  The fund will be gradually expanded to 5 trillion won, the FSC said in

July 26, 2019

Consumer sentiment dips to 8-month low in July

South Korea's consumer sentiment reached the lowest level in eight months in July, central bank data showed Friday, amid growing concerns that Asia's fourth-largest economy could lose more growth momentum amid protracted trade tensions.The composite consumer sentiment index came to 95.9 this month, down 1.6 from a month earlier, according to the data from the Bank of Korea.The reading marks the lowest since November when the index stood at 95.7. A reading below the benchmark 100 means pessimists

July 26, 2019

Korea to raise tax credit rate for corporate facility investments, R&D

The South Korean government announced Thursday that it plans to raise the tax credit rate for corporate facility investment and research and development in an effort to stimulate the economy by lifting the tax burden on firms. The government’s announcement of its 2019 tax code revision bill, comes amid an escalating trade row between Korea and Japan, after Tokyo placed export restrictions on key materials needed for semiconductors and display screens, as well as a slew of pessimistic econo

July 25, 2019

Homeplus announces expansion of specialized stores, online biz

South Korea’s discount chain Homeplus on Thursday raised the stakes in the competitive retail market here by announcing its full-fledged expansion of specialized branches and online business.During a press conference on its business strategy held in Seoul, Homeplus CEO Lim Il-soon said that the retail giant will aim to raise its online revenue from around 600 billion won last year to 2.3 trillion won by 2021 through innovation that breaks the boundaries of online and offline shopping.Homep

July 25, 2019

Korean economy bounces back in Q2, but outlook still murky

The South Korean economy is estimated to have expanded 1.1 percent in the second quarter, a dramatic turnaround from an unexpected contraction the previous quarter, partly afforded by increased government spending that offset a skid in private spending, central bank data showed Thursday.The country's gross domestic product expanded an estimated 1.1 percent from three months earlier in the April-June period, after backtracking 0.4 percent in the previous quarter, according to advance data from th

July 25, 2019

KFS endeavors to create more urban forests in fight against fine dust

Amid growing concerns about worsening fine dust, the Korea Forest Service is making efforts to provide more green spaces by creating forests in cities as part of measures to tackle the environmental problem. Under plans to reduce fine dust and build green infrastructure for urbanities, set by the KFS last year, the government agency is going to create at least one urban forest in each of the 17 metropolitan cities and provinces across the country starting this year. In addition, the agency is pl

July 24, 2019

‘Seoul’s office building market boom will peak next year’

After picking up last year amid a slowing economy, Seoul’s office building market is likely to catch its breath in the upcoming months and peak next year as large-sized premium buildings spill into the market for sale and lease, according to commercial real estate company Cushman & Wakefield.“Since 2010, the office building market (in Seoul’s key business districts) has mostly seen supply outrun demand,” Philip Jin, head of research at the Korean office of the US-base

July 24, 2019

BOK chief hints at additional cut of growth outlook amid Japan factor

Bank of Korea Gov. Lee Ju-yeol said Tuesday that the central bank could consider an additional cut of the country’s growth outlook for this year, should the ongoing trade tensions with neighboring Japan expand.“If (Japan’s export curbs) worsen and such consequences have not sufficiently been reflected in the (recently revised) economic outlook, they will certainly deliver a negative impact on our economy,” Lee said in a briefing session of the parliamentary strategy and f

July 23, 2019

S. Korea gears up for financial market contingency plan amid Japan factor

In response to the escalating economic conflict between South Korea and Japan, financial authorities here are establishing a contingency plan in case Tokyo expands its trade restrictions to the financial sector, officials said Monday.The preemptive gesture came out of concern about the apparent dependency of local financial companies on Japanese lenders, which have been offering a low interest rate for years. The total amount of Japanese money circulating in Korea’s financial market was es

July 22, 2019

Korea's exports set to decline for 8th straight month in July

South Korea's exports are likely to extend their slump to an eighth month in July, driven by a decline in outbound shipments of semiconductors and petrochemical goods, data showed on Monday.  The country's exports fell 13.6 percent in the first 20 days of July from a year earlier to $28.3 billion, according to the data compiled by the Korea Customs Service. Average daily exports -- which reflect working days -- declined 16.2 percent on-year to $1.71 billion.  If the trend continue

July 22, 2019

Investors pour money into short-term vehicles amid low rates, uncertainty

Investors have increasingly shifted their money to short-term financial instruments, such as money market funds, amid low interest rates and growing economic uncertainties, data showed Sunday. Money market funds are short-term debt securities such as Treasury bills and commercial papers. They are widely considered to be as safe as bank deposits while providing a higher return. The net asset value of MMFs came to 120.18 trillion won ($102 billion) as of Wednesday, breaching the 120 trillion-won t

July 21, 2019

Q2 economic growth estimated at around 1%

South Korea's quarterly economic growth is estimated at 1 percent for the second quarter of the year, shifting from a contraction of 0.4 percent the previous quarter, financial industry sources said Sunday.The Bank of Korea is set to unveil its estimate for second-quarter growth this week. Earlier, the central bank had predicted that Asia's fourth-largest economy would expand 1.2 percent during the April-June period. But a drawn out trade dispute between the United States and China, combined wit

July 21, 2019

S. Korea cuts growth outlook to 2.2%, key rate to 1.5% amid uncertainties

The Bank of Korea has slashed its forecast for this year’s economic growth to 2.2 percent, reflecting the negative impact of external uncertainties including Japan’s ongoing export curbs.It also carried out an earlier-than-expected base interest rate cut to 1.5 percent, embracing the monetary easing signals in the United States and other developed economies.“Considering the changes in economic conditions since the last outlook (announcement) in April, we have set the economic g

July 18, 2019