S. Korea’s jobless population marks 20-year high in June

South Korea logged the steepest pace of job creation in almost two years, but the number of unemployed people reached a 20-year high, indicating the vulnerability of the local job market, government data showed Wednesday.The number of unemployed people here was tallied at 1.14 million as of end-June, up 103,000 from a year earlier, according to monthly employment figures released by Statistics Korea. This was a record high since the 1.5 million observed in June 1999 in the wake of the Asian fina

July 10, 2019

Wealth of Korean rich shed amid trade woes: Forbes

Caught in the crossfire of the China-US trade war, export-reliant South Korea saw a steep decline in overseas shipments, and a consequent decline in the wealth among the members of the rich-list, Forbes said Wednesday.A total of 37 list members saw their net worth take a hit in the volatile economic environment. The combined net worth of Korea’s 50 richest declined 17 percent to $110 billion from $132 billion a year ago, the magazine said citing the latest Forbes Rich List.With the slump i

July 10, 2019

Jobless rate rises to 4% in June, 281,000 jobs created

South Korea's jobless rate rose to 4 percent in June from a year earlier, and job additions again exceeded the 200,000 mark, government data showed Wednesday.The unemployment rate increased 0.3 percentage point on-year.The jobless rate marked the highest level for any June since 1999, when the corresponding figure stood at 6.7 percent.The number of employed people reached 27.4 million in June, a rise of 281,000 from the same month in 2018, according to the data compiled by Statistics Korea. The

July 10, 2019

Labor, management leaders escalate feud over next year's minimum wage

Representatives of labor and management are escalating a feud over whether to increase the nation's legal minimum wage next year ahead of their final negotiations at the Minimum Wage Commission.The 27-member Minimum Wage Commission, a trilateral panel composed of nine representatives each from labor, management and the general public, was to begin its final round of negotiations at the Sejong Government Complex in Sejong on Tuesday before setting the hourly minimum wage for 2020 on Thursday. But

July 9, 2019

Moody's keeps its rating on South Korea at Aa2

Global rating agency Moody's Investors Service said Monday that it is maintaining its rating on South Korea at "Aa2" with a stable rating outlook.  Moody's rating for Asia's fourth largest economy has been Aa2, the third-highest level on the company's table, since 2015, when the rating agency upgraded it from Aa3.  "The Government of Korea's (Aa2 stable) credit profile balances the country's very strong economic and fiscal fundamentals against high exposure to event

July 8, 2019

National pension fund's total assets exceed 700 tr won

The total assets under management by South Korea's state pension fund exceeded the 700 trillion won ($596 billion) mark for the first time three decades after its birth, data showed Monday.The milestone comes 31 years after Asia's fourth-largest economy launched the income support program with its assets being equivalent to 37 percent of the country's gross domestic product, according to the data compiled by the National Pension Service, the fund's operator.As of Friday, the fund's assets stood

July 8, 2019

S. Korea urges Japan to lift export restrictions

South Korea's finance minister on Monday pressed Japan to withdraw its export restrictions on key semiconductor materials as the Japanese move could have a negative impact on the global economy.Hong Nam-ki, the minister of economy and finance, said Japan's export restrictions run counter to the principles of the World Trade Organization.The comments came days after Japan began to tighten regulations on exports to South Korea of high-tech materials essential for the production of semiconductors a

July 8, 2019

Corporate debt sales hit record in H1

Sales of South Korea's corporate bonds hit a record high in the first half of the year, as low interest rates prompted companies to sell more debt, data showed Monday.  The corporate debts floated in the January-June period, including bank bonds and asset-backed securities, stood at 48.8 trillion won ($41.5 billion), up 12.7 percent from a year ago, according to the data by the Korea Financial Investment Association.  It was the largest corporate offerings on a half-year basis, th

July 8, 2019

[Management in Korea] Rather than copy chaebol, Korean SMEs need to create new models of success

Management in Korea is a regular column written by representatives of Egon Zehnder Seoul. It touches on various topics concerning Korean enterprises and business leaders and offers management tips. -- Ed.Chaebol played a critical role in South Korea’s recovery after the Korean War and then in enabling the nation to become an economic powerhouse. But to remain competitive in today’s environment, it is essential for Korea to also have vibrant small and midsized businesses to drive inno

July 7, 2019

Housing prices in Seoul show signs of rebounding, Land Ministry may step in

　With housing prices in Seoul showing clear signs of rebounding, the government is considering taking steps to rein in the overheated market.　Officials at the Ministry of Land, Infrastructure and Transport said Sunday that the ministry will intervene if housing prices in Seoul grow faster than expected on the basis of government projections. 　According to the Korea Appraisal Board last Monday, Seoul apartment prices had increased 0.02 percent from a week before, ending a downward trend that went

July 7, 2019

Finance chief to talk with top CEOs on Japan’s export curbs

South Korea’s top fiscal policymaker said Friday he is likely to meet the top executives of Samsung Group and other ranking conglomerates to address Japan’s export restrictions.“There seems to be no reason why I shouldn’t meet (with them),” said Deputy Prime Minister and Finance Minister Hong Nam-ki.“I shall confirm (the details) after discussing (the possibility of the meeting) with Cheong Wa Dae.” The remarks came in answer to the reporters’

July 5, 2019

S. Korea warns of retaliatory steps against Japan’s export curbs

　South Korea on Thursday delivered a stern warning to Japan regarding restrictions on exports of high-tech materials to Korea, calling Japan’s decision a breach of international law and vowing “corresponding steps” if necessary. 　“Japan’s export restrictions are a form of political retaliation that violate international law,” the National Security Council of the presidential office Cheong Wa Dae said in a press release.　In the meeting, chaired by Presidential

July 4, 2019

S. Korea posts current account surplus in May

South Korea's current account balanced turned to black in May, one month after the country posted its first deficit in seven years amid sluggish exports, central bank data showed Thursday.The country's current account surplus came to $4.95 billion in the month, marking a turnaround from a $660 million deficit the month before, according to preliminary data from the Bank of Korea. The turnaround was largely attributed to a $1.16 billion surplus in the primary income account, which in April posted

July 4, 2019

S. Korea lowers growth forecast for 2019 to 2.4-2.5%

South Korea’s government on Wednesday revised the growth rate forecast for this year to 2.4-2.5 percent, down 0.2 percentage point from its earlier estimation, amid sluggish exports and investments.It also added pressure upon the National Assembly to swiftly approve a long-pending supplementary bill of 6.7 trillion won ($5.7 billion) dedicated to economic revitalization. “The government has devoted all efforts to achieve an economic paradigm shift but uncertainties such as the global

July 3, 2019

S. Korea lowers growth forecast for 2019 to 2.4-2.5%

South Korea’s government on Wednesday revised the growth rate forecast for this year to 2.4-2.5 percent, down 0.2 percentage point from its earlier estimation, amid sluggish exports and investments.It also added pressure upon the National Assembly to swiftly approve a long-pending supplementary bill of 6.7 trillion won ($5.7 billion) dedicated to economic revitalization. “The government has devoted all efforts to achieve an economic paradigm shift but uncertainties such as the g

July 3, 2019

S. Korea to hold 2nd round of talks on revising FTA with Chile

South Korea's trade ministry said Wednesday it will hold the second round of negotiations with Chile on revising their bilateral free trade agreement that went into effect in 2004.The two-day talks, which will be held in Chile from Thursday, will focus on expanding the scope of free trade and updating terms of the 15-year-old FTA, according to the Ministry of Trade, Industry and Energy.Chile was South Korea's first FTA partner. Two-way trade volume quadrupled to US$6.28 billion last year from $1

July 3, 2019

S. Korea lowers growth forecast to 2.4-2.5%

South Korea’s government on Wednesday revised the growth rate forecast for this year to 2.4-2.5 percent, down 0.2 percentage point from its earlier figure, amid sluggish exports and investments.It also reiterated the call for the National Assembly to approve the pending supplementary budget bill of 6.7 trillion won ($5.7 billion), vowing to execute 70 percent of the amount within two months. “The government has devoted maximum efforts for an economic paradigm conversion but uncertain

July 3, 2019

Hanwha partners with Indian tech giant for collaborative robots

Hanwha Precision Machinery, the robot manufacturing unit of Hanwha Group, said Tuesday the company signed a contract with Wipro, India’s largest information technology business, to work together on developing automated factory solutions. Under the contract, the Hanwha unit will provide collaborative robots for network-based factory solutions aimed at automating manufacturing processes at various factories across India, led by its Indian partner. The machinery unit is a subsidiary of Hanwha

July 2, 2019

Consumer price growth stays stagnant for 6th month

South Korea’s consumer price growth remained below the 1 percent mark in June, reflecting the slow growth in service charges and global oil price trend, government data showed Tuesday.The consumer price index stood at 104.88 last month, down 0.2 percent from the previous month and up 0.7 percent from a year earlier, according to Statistics Korea.This marked the sixth consecutive month that the on-year growth remained in the zero percent range. It was also the third-longest period that the

July 2, 2019

S. Korea's exports down 13.5% in June amid US-China trade row

South Korea's exports decreased 13.5 percent in June from a year earlier, extending their on-year fall for the seventh consecutive month, data showed Monday, due mainly to the prolonged trade row between the world's top two economies.Outbound shipments came to $44.18 billion for June, down from the $51 billion tallied a year earlier, according to the data compiled by the Ministry of Trade, Industry and Energy.Imports fell 11.1 percent on-year last month to $40 billion, the ministry added. The co

July 1, 2019