[News Focus] ‘Sagging economy’ faces 2nd rebound in dollar, oil

SEJONG -- Prices of the US dollar and gasoline directly affect a large proportion of South Korean businesses and households in terms of manufacturing costs and purchasing power.While monetary authorities sometimes have intervened in the foreign exchange market and hamper the cheap dollar in an attempt to promote exports, the greenback’s current strong position versus the Korean won suggests the local economy has been sagging.Simultaneously, a hike in international prices of crude oil, whic

July 18, 2019

Home transactions down 28% in H1

Home sales in South Korea plunged more than 28 percent in the first half of the year compared to a year earlier, data showed Thursday, amid tightened regulations intended to curb rising housing prices. The number of housing transactions came to 314,108 in the first six months of the year, down 28.2 percent from a year earlier, according to the data compiled by the Ministry of Land, Infrastructure and Transport. The figure is 35.8 percent down on the five-year average of 489,373. In June alone, t

July 18, 2019

BOK cuts key rate to 1.5% amid uncertainties

South Korea’s central bank on Thursday cut the nation’s policy rate to 1.5 percent, amid mounting external uncertainties, officials have announced.It also decided to sharply slash the country's growth pace this year by 0.3 percentage point to 2.2 percent from 2.5 percent.The Bank of Korea held its rate-setting Monetary Policy Board and decided to cut the base interest rate by 25 basis points to 1.5 percent.The rate cut decision came a step earlier than the US Fed’s largely anti

July 18, 2019

BOK slashes policy rate to 1.50%

The Bank of Korea slashed its policy rate by a quarter percentage point to 1.50 percent Thursday in a surprise move to help spur growth amid prolonged trade tensions.The rate cut is the first since November when the central bank raised the rate by 25 basis points to 1.75 percent.The unexpected rate cut follows seven consecutive months of decline in the country's exports, which could face further downward momentum in the future due to Japan's export curbs on key materials for the production of se

July 18, 2019

[Monitor] Koreans make up 24.1% of Japan visitors: data

With boycotts of Japanese products becoming more widespread in South Korea in response to Tokyo’s export restrictions, accompanied by calls to stop visiting the neighboring country in a show of protest, data showed that Koreans were the second-largest group of visitors to Japan, the largest being Chinese travelers.The data from the Japan National Tourism Organization showed that almost 7.54 million Koreans traveled to Japan in 2018, making up 24.1 percent of all visitors to the country. It

July 17, 2019

S. Korea’s Trade Ministry refutes Japan by revealing catch-all system

The Ministry of Trade, Industry and Energy on Wednesday released details of its “catch-all system” for the country’s trade controls for security, refuting one by one Japan’s claims that South Korea’s system is insufficient.The ministry reiterated that Korea has been controlling exports of both strategic and nonstrategic items under stricter conditions than Japan.Japan has raised as a reason for its export restrictions of key materials for South Korea’s tech fi

July 17, 2019

[News Focus] Portion of pessimists over economy hits record: poll

SEJONG -- A large proportion of self-employed people have closed their businesses and joined the growing number of jobless people over the past two years. Simultaneously, the state payment of unemployment benefits has climbed to an all-time high.The Moon government started providing some young jobless people with 3 million won ($2,540) for six months per individual, while the number of people who lost jobs has been drastically increasing among those in their early 50s, 40s and late 30s. The

July 17, 2019

S. Korea's national assets grow 8.2% in 2018

South Korea's total wealth grew at a fast pace from a year earlier in 2018 but largely on rapid increases in real estate and housing prices, central bank data showed Wednesday.The country's national assets came to 15,511.7 trillion won ($13.13 trillion) as of the end of last year, up 8.2 percent from a year earlier, according to the national balance sheet released by the Bank of Korea.The annual report is jointly compiled by the central bank and the statistics office. The 2018 tally is 8.2 times

July 17, 2019

S. Korea considers lowering extra-high inheritance tax rate for top shareholders

South Korea's government and ruling party are considering a move to lower the extra-high rate levied on inheritance tax for top shareholders of big companies, a ruling party official said Monday. South Korea's top inheritance tax is set at 50 percent, but it could go up to as high as 65 percent if the rate is increased in cases that involve the largest shareholders.The ruling Democratic Party (DP) and the government have been in discussions to lower the extra-h

July 15, 2019

Market closely watches timing, pace of BOK’s upcoming rate cut

With its rate-setting board meeting slated for this week, South Korea’s central bank is gearing up to lower its economic growth forecast and base interest rate, in step with the sluggish recovery pace of the global economy and the US Federal Reserves’ signal of a rate cut.While most predicted a rate cut of 25 basis points from the current 1.75 percent by no later than August, views differed on the pace and frequency of further rate cuts this year. The Bank of Korea is scheduled to ho

July 15, 2019

[News Focus] Seoul apartments resilient to property measures since 2017

SEJONG -- The Moon Jae-in government has introduced stern regulations on rebuilding old apartments or redeveloping old areas in Seoul. Housing redevelopment projects have been effectively blocked in the capital.The city authorities have also fallen behind in increasing housing supply for citizens.The central government has bolstered rules on mortgages under the guise of curbing apartment prices in the city. The ceiling of bank loans for housing purchases has sharply been lowered as part of a set

July 15, 2019

WTO to formally discuss Japan's export curbs on S. Korea

Japan's export restrictions on advanced tech materials that could undermine South Korea's production of semiconductors will be formally discussed at the World Trade Organization, South Korea's commerce ministry said Sunday.The issue has been named a formal agenda item of the WTO General Council, the highest decision-making body of the WTO in Geneva, and will be discussed when the council meets from July 23-24, according to the Ministry of Trade, Industry and Energy.The move comes at a request fr

July 14, 2019

Japan sees decline in value-added trade surplus with Korea

Japan’s trade surplus in value-added goods and services (TiVA) with South Korea took a downturn during the 2005-2015 period, reflecting the diversifying structure of logistics and trade, statistics showed Sunday.In light of the interconnection of the global value chain, the country’s recent curbs on hi-tech exports to Korea are likely to affect not only the two countries but also the regional and global economy in general, Seoul’s government officials noted. According to t

July 14, 2019

Exports, investments remain dull amid worsening external conditions: ministry

South Korea’s economy continues to face pressure in exports and investments, mainly due to the prolonged trade war between the United States and China, the Finance Ministry said Friday.Japan’s export control measures, while remaining a core risk factor, will not affect Seoul’s growth outlook, it added.“Despite the gradual improvement in domestic consumption, exports and investments continue to remain dull,” the Ministry of Economy and Finance said in its monthly eco

July 12, 2019

BOK to face further delays in construction of new headquarters

The Bank of Korea is likely to experience further delays in the reconstruction of its headquarters as a disputed builder asserted its rights as the successful bidder, challenging the procurement office’s plan to carry out a re-tendering process.The Seoul Central District Court on Thursday granted a provisional injunction filed by Kyeryong Construction Industrial, demanding that the Public Procurement Service halt its re-tendering process for the reconstruction of the BOK’s annex, BOK

July 12, 2019

External conditions worsening amid weak exports, investment: ministry

The South Korean economy is increasingly facing uncertainties stemming from the prolonged trade dispute between the United States and China amid weak business spending, the finance ministry said Friday."Despite the gradual improvement in domestic consumption, the country's exports and investment continued to remain dull," the Ministry of Economy and Finance said in its monthly economic assessment report. The report, called the "Green Book," is based on the latest economic ind

July 12, 2019

S. Korea to raise minimum wage for next year by 2.9%

South Korea decided Friday to raise the minimum wage for next year by 2.9 percent, the slowest growth in a decade, as it took into account an economic slowdown and sluggish job growth.The Minimum Wage Commission, involving labor and business representatives and experts, set the minimum wage at 8,590 won ($7.32) per hour for next year, compared with 8,350 won for this year.The growth rate sharply slowed from a 10.9 percent rise for 2019 and is the slowest gain since the minimum wage for 2010 rose

July 12, 2019

Exports down 2.6% in first 10 days of July

South Korea's exports fell 2.6 percent in the first 10 days of July mainly due to decreased shipments of semiconductors, one of the country's key items, customs data showed Thursday.The country's exports stood at $13.6 billion in the July 1-10 period, compared with $13.9 billion in the same period last year, according to the Korea Customs Service.  By product, exports of semiconductors and petroleum products fell 25 percent and 3 percent, respectively.Meanwhile, outbound shipments of passen

July 11, 2019

S. Korea considers 120 bln won extra budget to cope with Japan's export curbs

Prime Minister Lee Nak-yon said Wednesday the government will seek parliamentary approval for more than 120 billion won (US$101 million) in extra budgetary funds to cope with the impact of Japan's recent restrictions on exports of high-tech materials."The government plans to politely request at least 120 billion won from the National Assembly for an early implementation (of the necessary measures)," the prime minister said in a parliamentary interpellation session. "I hope the opp

July 10, 2019

S&P cuts growth outlook for S. Korea's economy to 2 percent

Global rating agency Standard & Poor's has sharply slashed its growth forecast for South Korea's economy this year to 2 percent due to rising uncertainty about the global trade outlook and weaker consumption.The latest estimate represented a sharp downward revision from its previous forecast of 2.4 percent in April.S&P said high inventories, particularly in the electronics sector, and rising uncertainty about the global trade outlook will continue to weigh down production and private inv

July 10, 2019