S. Korea's industrial output falls 1.9% on-month in February

South Korea's industrial output edged down 1.9 percent in February from a month earlier due in part to decreased production of cars and the service sector, government data showed Friday.The figure was the biggest decline since March 2013, when industrial output fell 2.1 percent.The data compiled by Statistics Korea showed the output of cars went down 3.2 percent in February from a month earlier, while production in the service sector declined 1.1 percent on-month. Retail sales fell 0.5 percent i

March 29, 2019

S. Korea to push for joint study with Uzbekistan on free trade deal

SEJONG -- South Korea and Uzbekistan agreed Thursday to push for a joint study on forging a free trade agreement to further boost bilateral economic ties, South Korea's finance ministry said.The agreement was reached in talks between Hong Nam-ki, the minister of economy and finance, and his Uzbek counterpart, Deputy Prime Minister Elyor Ganiev. Hong also doubles as deputy prime minister for economic affairs."We should ponder over what the demands of both sides are and how to produce a win-w

March 28, 2019

[News Focus] Weak won, rising crude prices pose threat to Korean economy

SEJONG -- Three major global rating firms have been relatively pessimistic on the outlook for South Korea’s economic growth this year, compared to projections from the Finance Ministry and the Bank of Korea.The rating firms -- Fitch Ratings, Standard & Poor’s and Moody’s Investors Service -- have estimated that the growth of gross domestic product this year will stay under 2.6 percent, the figure projected by the central bank. The Finance Ministry has forecast that the econ

March 28, 2019

S. Korea’s budget to surpass W500tr next year amid sluggish growth

South Korea’s state budget is certain to surpass 500 trillion won ($441.7 billion) for the first time next year as the Cabinet has approved guidelines endorsing expansionary fiscal spending.While seeking measures to revitalize the economy and to enhance social overhead capital for people’s livelihood, the government also vowed to inject more public funds to tackle social problems such as low birth rate and fine dust pollution.The Cabinet on Tuesday approved the compilation guidelines

March 26, 2019

[News Focus] Korean currency’s par value remains untouched for 57 years

SEJONG -- It has been 17 years since former Bank of Korea Gov. Park Seung proposed slashing the face value of the nation’s currency upon taking office in April 2002.Under Park, the central bank pushed for redenomination in a low-key manner, seeking to do away with 10,000 won, 5,000 won and 1,000 won notes and replace them with notes worth 10 hwan, 5 hwan and 1 hwan. The BOK project, initiated in the fifth year of the government of former President Kim Dae-jung, came to the fore d

March 26, 2019

Presidential office not seeking to exploit property market as means for stimulating economy

South Korea's Moon Jae-in administration won't artificially boost the property market in a bid to stimulate the economy, a senior presidential official said Sunday.The local housing market, mainly apartment transactions, has been notably sluggish since the government's tough regulations on it became effective on Sept  13, 2018.The move was aimed at curbing apartment prices that had been skyrocketing at that time. Many agree that the market overheated as a result of a set of deregulations on

March 24, 2019

S. Korea sees sharper drop in exports than OECD peers

South Korea has seen its exports decline at a steeper rate than other Organization for Economic Cooperation and Development member states, reflecting the contraction in outbound shipments of semiconductors, ships and petrochemical products, data showed Sunday.According to data from the OECD, Asia’s fourth-largest economy saw its exports volume dip 5.9 percent from a year earlier in January, standing 26th out of 32 member states that were subject to the latest survey.The country’s on-

March 24, 2019

[News Focus] Will taxpayer-money be boon to Moon’s approval ratings?

SEJONG -- The chances are high that the Ministry of Economy and Finance will eventually propose a motion on a supplementary budget to the National Assembly in the coming weeks, according to recent remarks from ruling party lawmakers and Cheong Wa Dae officials.Moreover, market insiders say, a bigger interest could be the scale of the extra budget and policymakers’ position against possible backlash from the public and political oppositions.In June 2017, when an earlier supplementary budget

March 21, 2019

BOK chief rules out rate cut for time being

Hours following the US Federal Reserve’s decision to leave its key interest rate unchanged, Bank of Korea Gov. Lee Ju-yeol ruled out the possibility of a policy rate cut in the near future, early Thursday.“The US’ current wait-and-see mode will help stabilize the global financial markets and has given us some room to maneuver regarding our monetary policy,” Lee told reporters at the headquarters of the nation’s central Bank in Seoul. “However, now is not the r

March 21, 2019

S. Korea to provide loans worth 100 tln won to innovative firms, SMEs

South Korea's financial regulator said Thursday it will offer innovative firms and small- and medium-sized enterprises (SMEs) loans worth 100 trillion won($88.5 billion) over the next three years. The massive loan package is aimed at revitalizing the nation's sluggish economy at a time when the economy faces downward risks, including weaker domestic investment and global trade disputes. In a policy report to President Moon Jae-in, Financial Services Commission Chairman Choi Jong-ku said the FSC

March 21, 2019

[Hydrogen Korea] Japan paves way for hydrogen future, but public unconvinced

The Korea Herald is publishing a series of articles on South Korea’s latest measures to support the hydrogen economy, the market drive for hydrogen-powered vehicles and the hurdles that stand in the way. This is the seventh installment. -- Ed.TOKYO -- Close to Shiba Park, just under the Tokyo Tower, one of the Japanese capital’s most famous landmarks, is a modern building plastered with a huge H2 symbol.It is a hydrogen refilling station operated by Iwatani Corp., a local gas company

March 20, 2019

S. Korea’s export prices showed upturn in February

South Korea’s export prices increased for the first time in four months in February on higher prices of petroleum products, central bank data showed Friday.The export price index stood at 82.97 last month, up 0.2 percent from the previous month, according to data released by the Bank of Korea. This marked the first on-month rise since October.Steering the gain was the petroleum products and coal sector, which saw an 8 percent hike on-month.The country’s benchmark Dubai crude reached

March 15, 2019

Construction projects worth W12.6tr to break ground this year: govt

South Korea’s government will expand support for private investors so that ongoing infrastructure projects worth 12.6 trillion won ($11.1 billion) can break ground within the year, according to the Ministry of Economy and Finance on Wednesday.The 13 projects, most of which were originally slated to kick off in 2020 or later, include the construction of a sewage treatment facility in the southern city of Gumi and a highway to connect Pyeongtaek with Iksan. “The government will activel

March 13, 2019

[Advertorial] Eximbank hosts meeting of inter-Korean advisory committee

The Export-Import Bank of Korea held a meeting of its advisory committee on inter-Korean exchanges on Wednesday, the agency said, to discuss the outcome of the recent US-North Korea summit in Hanoi. A panel of eight experts gathered to discuss how the summit last month -- which ended without an agreement -- would affect inter-Korean economic cooperation as well as other matters surrounding the Korean Peninsula. Wednesday’s meeting was the 10th of its kind. Eximbank Chairman Eun Sung-s

March 13, 2019

S. Korea's jobless rate rises to 4.7% in February

South Korea's jobless rate rose to 4.7 percent in February despite the increased pace of hiring, government data showed Wednesday, in the latest sign of an economic slowdown in Asia's fourth-largest economy.The unemployment rate marked the highest level for any February since 2017, when the corresponding figure stood at 4.9 percent, according to Statistics Korea.The South Korean economy added 263,000 jobs in February from a year earlier, the biggest since January 2018, when employers added 334,0

March 13, 2019

EU confirms S. Korea’s exclusion from tax haven blacklist

The European Union confirmed its decision to exclude South Korea from its tax haven blacklist, acknowledging the country’s efforts throughout last year to improve transparency in foreign investment, Seoul’s Ministry of Economy and Finance said Tuesday.The Economic and Financial Affairs Council, consisting of economic and finance ministers of EU member states, made its final decision to rule Korea out of the EU List of noncooperative jurisdictions for tax purposes.In December 2017, th

March 12, 2019

S. Korean economy can meet 2.6-2.7% growth target in 2019: IMF

The South Korean economy should be able to grow 2.6-2.7 percent this year if the government maintains expansionary fiscal policies, the International Monetary Fund said Tuesday."The government's growth target of 2.6-2.7 pct is feasible this year, provided that there is a large supplementary budget," Tarhan Feyzioglu, the head of the IMF delegation, said at a press conference held in Seoul.The IMF mission visited Seoul to hold annual discussions with South Korean policymakers. The Seoul

March 12, 2019

[Feature] Tycoons let their hair down, but is it more style than substance?

On early Monday morning last week, an unthinkable scene unfolded in the lobby of Hyundai Motor’s headquarters in Yangjae, southern Seoul. Employees wearing sweat shirts, sneakers and blue jeans marched into the office, with some seniors in hiking tops and pants receiving morning greetings from younger ones, awkwardly, as if they came to realize at that instant that they were a bit off from what business casual really meant.For the first time in the carmaker’s half-a-century history,

March 12, 2019

IMF team voices concerns about pace of S. Korea’s minimum wage hikes

SEJONG -- A team from the International Monetary Fund on Monday expressed concerns over the pace of minimum wage hikes in South Korea, the Ministry of Economy and Finance said.The delegation led by Tarhan Feyzioglu, Korea mission chief at the IMF, shared the concerns in a meeting with Finance Minister Hong Nam-ki as part of its annual meeting with South Korean policymakers.In 2017, the minimum wage spiked 16.4 percent on-year to 7,530 won ($6.60) per hour in the biggest hike in nearly two decade

March 11, 2019

[Issues in IP] Is S. Korea losing the IP game to China?

The Korea Herald publishes a series of articles to review South Korea’s position in the intellectual property sector per industry, in the light of mounting challenges. This is the first installment. -- Ed.South Korea’s initiative in computer and mobile game contents has long been cited as a major growth engine backing the country’s advanced position in the global intellectual property sector.After decades of neglecting the value of IP rights, however, Asia’s fourth-larges

March 10, 2019