Uncertainties grow amid US-China trade talks: BOK chief

The chief of South Korea’s central bank said Friday that uncertainties have grown concerning the prospects of trade talks between the United States and China, after US President Donald Trump warned of imposing extra tariffs on Chinese goods.“It is true that uncertainties have grown further over the US-China trade talks” Bank of Korea Gov. Lee Ju-yeol said at a meeting on financial and economic status. “But we need to calmly keep watch as there are considerable expectation

May 10, 2019

Deputy PM urges swift passage of extra budget amid growing downside risks

South Korea’s top fiscal chief Wednesday urged the National Assembly to pass the government’s 6.7 trillion won ($5.7 billion) supplementary budget, citing the growing downside risks weighing on the economy.His remark came amid a weeks-long paralysis of the assembly’s legislative functions as the conservative main opposition party embarked on a nationwide protest against a set of fast-track reform bills. “The supplementary budget bill is all about timing and speed,”

May 8, 2019

S. Korea's current account surplus narrows in March

South Korea's monthly current account surplus narrowed in March from a year earlier amid slowing exports, central bank data showed Wednesday. The country's current account surplus came to $4.8 billion in March, down from $5.1 billion a year earlier, according to the preliminary data from the Bank of Korea. But the surplus widened from the previous month's $3.6 billion. The current account has been in the black for 83 straight months.In the first three months of this year, the country's current a

May 8, 2019

BOK board members skeptical over economic recovery in second half: minutes

Some board members of the Bank of Korea expressed concerns that a much-coveted recovery in Asia's fourth-largest economy may not take place in the second half of the year, making it more difficult for South Korea to meet its growth target, when they made a rate-freezing decision last month, according to meeting minutes released Tuesday.In an April policy rate-setting meeting, the BOK's seven-member monetary policy committee unanimously decided to hold the policy rate steady at 1.75 percent. It h

May 7, 2019

Ministry unveils final new town project to add 110,000 homes in Seoul area

South Korea’s government on Tuesday presented an urban development plan that will supply 110,000 homes in Seoul and the surrounding metropolitan areas, part of its mid- and long-term moves to stabilize the housing market.In addition to 52,500 new residences in Seoul and conventional housing sites in Gyeonggi Province, the government will also develop two large residential zones in Seoul’s suburban areas where 58,000 new homes will be built, according to the Ministry of Land, Infrastr

May 7, 2019

ASEAN+3 sets base for more local currency swaps to strengthen regional support

The finance chiefs of 13 Asian countries, including South Korea, on Thursday agreed on a preliminary framework to strengthen regional currency swap agreements, with aims to avoid overreliance on the US dollar.According to the Bank of Korea, the consensus was reached during the 22nd ASEAN Plus Three Finance Ministers’ and Central Bank Governors’ Meeting held in Nadi, Fiji.The ASEAN+3 is a regional body consisting of the 10 Association of Southeast Asian Nations members as well as Kore

May 2, 2019

Korean won performs worst among major currencies against US dollar

Among major currencies, the South Korean won suffered the steepest monthly decline against the US dollar, reports showed Wednesday, due to the latest trend of a persistently strong greenback. The won had fallen 2.82 percent on-month as of Tuesday, Bloomberg data that measured the monthly rate of decline of 16 major currencies showed.Most currencies weakened against the US dollar, except the Mexican peso and South Africa’s rand, which gained 1.98 percent and 1.07 percent, respectively. 

May 1, 2019

S. Korea’s exports slip 2% in April amid chip, China factors

South Korea’s exports dropped 2 percent in April from the previous year, marking the fifth consecutive month of downtrend amid a prolonged slump in the chip-making business and sluggish demand from China, government data showed Wednesday.The volume of outbound shipments totaled $48.86 billion in April, down from $49.85 billion a year earlier, according to statistics released by the Ministry of Trade, Industry and Energy.Imports inched up 2.4 percent to $44.75 billion during the same period

May 1, 2019

S. Korea's exports down 2% in April

South Korea's exports dropped 2 percent in April from a year earlier, extending their on-year fall for the fifth consecutive month, government data showed Wednesday.Outbound shipments came to $48.86 billion for April, down from the $49.85 billion tallied a year earlier, according to the data compiled by the Ministry of Trade, Industry and Energy. Imports, on the other hand, moved up 2.4 percent over the cited period to $44.74 billion, the ministry added.South Korea's trade surplus came to $

May 1, 2019

S. Korea’s production, consumption, investment all rise in March

South Korea’s key industrial indexes for production, consumption and investment all marked an increase in March due to the low-base effect from the previous month, government data showed Tuesday.According to Statistics Korea, the country’s industrial output inched up 1.1 percent in March from a month earlier, reflecting the increased production of semiconductors.Semiconductors, a key export item of Asia’s fourth-largest economy, recorded a 3.6 percent on-month rise in output. &

April 30, 2019

BOK chief departs for ASEAN+3 economic cooperation meeting

Bank of Korea Gov. Lee Ju-yeol departed for Fiji on Monday to take part in a meeting of finance ministers and central bank governors representing the ASEAN nations as well as China, Japan and South Korea. While there they will exchange views on regional economic development and forge closer financial cooperation.　It is the 22nd meeting of ASEAN+3 finance and central bank chiefs and will take place Thursday in the Fijian city of Nadi. The same day, the finance and central bank heads of China, Jap

April 29, 2019

S. Korea vows stable gas prices despite Iran sanctions

Addressing the latest spike in gas prices, stemming from the uncertainty associated with tighter US sanctions on Iranian oil, South Korea’s chief economic policymaker vowed Monday to bring stability to the domestic market while at the same time bracing for the full impact of the sanctions. “To brace for the possibility of a short-term spike in global oil prices, we plan to revitalize the use of budget gas stations and e-commerce to boost competition in the local oil market as efforts

April 29, 2019

PM Lee visits southwestern province to foster hydrogen economy

WANJU -- Prime Minister Lee Nak-yon on Thursday visited a center focusing on hydrogen fuel cell technology and a factory run by leading carmaker Hyundai Motor Co. in North Jeolla Province.Lee's trip is part of the government's efforts to nurture the so-called hydrogen economy as the country seeks to shift toward emission-free energy resources. North Jeolla Province, in the southwest of the country, seeks to become a hub of hydrogen fuel cell-related industries.Riding in a hydrogen fuel cell

April 25, 2019

South Korea's economy shrinks 0.3% in Q1 2019, worst since global financial crisis

South Korea’s economy shrank in the first quarter of this year in the biggest contraction since the 2008 global financial crisis, owing to a sharp drop in exports and slowing capital investments, an advanced estimate by the central bank showed Thursday.According to the Bank of Korea, the country’s gross domestic product for the first three months of 2019 shrank 0.3 percent quarter-on-quarter -- a surprise figure considering the median market forecast of a 0.3 percent gain for the per

April 25, 2019

Korea’s economy shrinks 0.3% in Q1, worst in decade: BOK estimate

The South Korean economy is estimated to have shrunk in the first three months of the year on a drop in capital investment and falling exports, the Bank of Korea said Thursday.　In the three months ended March 31, the country’s gross domestic product is projected to have backtracked 0.3 percent from the previous quarter, according to estimates from the central bank.　The reading marks the lowest growth since the fourth quarter of 2008, when Asia‘s fourth-largest economy contracted 3.3

April 25, 2019

S. Korea asks Moody’s to reflect its policy efforts in credit evaluation

South Korea’s chief economic policymaker asked Moody’s officials to take into account Seoul’s efforts to boost the economy and eased geopolitical risks in evaluating the country’s sovereign rating, the finance ministry said Wednesday.Hong Nam-ki, the minister of economy and finance, made the appeal in a meeting with a Moody’s delegation led by Michael Taylor, chief credit officer for the Asia-Pacific, at a government building in Seoul.Moody’s upgraded the rati

April 24, 2019

S. Korea draws up W6.7tr budget bill to curb fine dust, boost economy

The South Korean government has drawn up an extra budget of 6.7 trillion won ($5.9 billion) in an effort to alleviate the fine dust problem and respond to economic downside risks, the country’s top fiscal policymaker said Wednesday.The budget, though it fell short of the 9 trillion won recommended by the International Monetary Fund, came as a response to the government’s struggles to achieve the targeted growth range of 2.6-2.7 percent amid a slowing economy and export challenges. &l

April 24, 2019

S. Korea draws up 6.7 tln-won extra budget to tackle economic slowdown, fine dust

South Korea proposed a 6.7 trillion-won ($5.8 billion) extra budget Wednesday to cope with a slowdown in Asia's fourth-largest economy and rising concerns over fine dust that often blankets the country.Under the supplementary budget bill endorsed by the Cabinet, the government will spend 4.5 trillion won on a series of measures to boost exports, strengthen the social safety net and create more jobs.Also the government set aside 1.5 trillion won to combat the deepening fine dust pollution, which

April 24, 2019

[Herald Interview] PPS chief to strengthen procurement exports by emphasizing innovative growth

Celebrating the 70th anniversary of the launch of South Korea’s state-run Public Procurement Service, the organization has placed special emphasis on creating a variety of opportunities for domestic companies, particularly the smaller venture firms and startups, to step up exports with innovative technologies.In an interview with The Korea Herald, PPS Administrator Jung Moo-kyung said his drive for innovative merging of technologies and active support from the organization on the occasion

April 23, 2019

S. Korea says exports likely to improve in 2nd half

South Korea's exports are likely to improve in the second half as demand for semiconductors picks up gradually, a senior government official said Friday.Lee Ho-seung, the first vice minister of economy and finance, made the forecast in a regular meeting with officials from the central bank and other relevant financial authorities.South Korea's outbound shipments fell 8.2 percent on-year to US$47.1 billion in March due to falling global prices of chips. It marked the fourth straight month that ex

April 19, 2019