KOTRA withdraws Venezuela office amid turmoil

The state-run Korea Trade-Investment Promotion Agency has decided to withdraw from Venezuela amid the escalating political turmoil, sources said Wednesday.According to official insiders, KOTRA plans to shut down its Caracas-based office March 1. Its business center located in Panama will continue to oversee Venezuela-related affairs. Officials from KOTRA said the move came as the South American country has been facing political instability, threatening the safety of the staff."KOTRA maintai

Jan. 30, 2019

Korea greenlights fast-track process for W24.1tr worth of state-led projects

The South Korean government on Tuesday approved the waiving of preliminary feasibility studies for 23 nonmetropolitan infrastructure projects worth 24.1 trillion won ($21.6 billion), as part of its mid- and long-term blueprint to encourage balanced regional growth.It also unveiled a five-year, 175 trillion won development plan that focuses on increasing the number of jobs in rural areas and the population of rural areas.“The government’s strategic investments are crucial in order to

Jan. 29, 2019

[News Focus] World’s 6th-largest exporter faces hurdles in early 2019

SEJONG -- The government and the business sector are closely watching indexes related to exports amid signs that the nation’s export volume is going downhill.Though yearly exports hit a record of more than $600 billion in 2018, monthly export growth on-year suffered a slowdown in November (4.5 percent) and posted negative in December (minus 1.2 percent) after achieving a 22.7 percent increase in October, according to the Korea Customs Service.The decline has continued at the begi

Jan. 29, 2019

[News Focus] Korea seeks to ease trade dependency on China, US, Japan

SEJONG -- South Korea began to seek free trade deals in 1999, when it started negotiations with Chile, its first partner for a free trade agreement that took effect in April 2004.Over the past 20 years, 15 FTAs between Korea and its counterparts have taken effect, with 52 partner countries in total. The 15 FTAs include those with three continental economic blocs: the European Free Trade Association (four countries), the Association of Southeast Asian Nations (10) and the European Union (28).Kore

Jan. 27, 2019

[Monitor] Cigarette sales down due partly to higher prices

Sales of cigarettes in South Korea fell 1.5 percent in 2018 from a year earlier, data from the Ministry of Economy and Finance showed.A total of 3.47 billion packs were purchased last year, down slightly from 3.52 billion packs. One pack contains 20 cigarettes.Sales in 2018 also saw a 20.4 percent decline from 2014, the year before the government raised the prices of cigarettes 80 percent from 2,500 won ($2) per pack to 4,500 won. In December 2016, the government started requiring tobacco compan

Jan. 27, 2019

Seoul shares to see moderate gains next week

South Korean stocks are expected to make a modest upswing next week following relief rallies in recent sessions amid optimism over decent corporate performances this year, analysts said Saturday.    The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,177.73 points Friday, up 3.35 percent from a week earlier, to reach its highest point since Oct. 10, 2018.     The index started the week on a shaky note as investors took a breather on concern

Jan. 26, 2019

Korea's consumer sentiment rises for second straight month in Jan.

South Korea's consumer sentiment rose for the second month in a row in January as hopes are high for the government's economic stimulus measures for the new year, a central bank poll showed Friday.The composite consumer sentiment index for this month stood at 97.5, up 0.6 point from a month earlier, according to the Bank of Korea. A reading below the long-term average of 100 means pessimists outnumber optimists.Last month, the index gained 1.2 points from a nearly two-year low of 95.7. The BOK s

Jan. 25, 2019

BOK freezes base rate, inches down growth forecast

South Korea’s central bank on Thursday nudged down its forecast for the country’s economic growth this year, while keeping the policy rate steady amid lingering uncertainties in the domestic and global financial markets.The Bank of Korea, in its first Monetary Policy Board meeting of the year, decided unanimously to keep the base rate at 1.75 percent, prolonging the status quo since November, when it raised the rate by a quarter percentage point.The economic growth for this year was

Jan. 24, 2019

Land prices gain 4.6% in 2018

Land prices in South Korea rose nearly 4.6 percent in 2018 from a year earlier, the fastest clip in 12 years, government data showed Thursday.The country's land prices increased 4.58 percent on-year last year, compared with a 3.88 percent gain in 2017, according to the Ministry of Land, Infrastructure and Transport.The figure represents the largest on-year increase since the 5.61 percent expansion recorded in 2006.Land prices in Seoul and the adjacent Gyeonggi Province expanded 5.14 percent, up

Jan. 24, 2019

[Monitor] Lotto sales hit record high in 2018

Sales of Lotto tickets in South Korea reached an all-time high in 2018 at 3.97 trillion won ($3.5 billion), up 4.4 percent from the previous year, the Korea Lottery Commission said. But the growth rate was less than 6.5 percent in 2017 and 9.5 percent in 2016, due to a lack of new sales outlets.The previous record was in 2003, when 3.82 trillion won worth of Lotto tickets were sold on a buying frenzy sparked by a winner who took home a record prize of 40.7 billion won in April of the same y

Jan. 23, 2019

Korea to turn unused land into public houses, innovative business space

The South Korean government will turn unused state-owned land equivalent to 2.4 times the size of Yeouido into sites for public houses and business space for innovative companies, the nation’s chief fiscal policymaker said Wednesday.To back the plans, the government decided to spend 65 percent of its yearly social overhead capital within the first half of the year, in a pump-priming effort to resuscitate the slowing domestic economy at all costs. “(The government) has selected 11 uni

Jan. 23, 2019

Govt. to offer financial support for overseas construction, plant orders

The government will provide financial support for overseas construction and plant orders to shore up exports that are showing signs of weakening, Finance Minister Hong Nam-ki said Wednesday. Global trade disputes and China's economic slowdown are casting a shadow on South Korea's export-reliant economy. Exports dropped 14.6 percent on-year in the first 20 days of January.  "The government will actively offer financial support for firms to significantly increase their orders for oversea

Jan. 23, 2019

Economy grows 2.7% in 2018, marks slowest on-year rise in 6 years: BOK

Last year, the South Korean economy marked the slowest on-year growth pace in six years, amid shrinking corporate investment and slowing exports, central bank data showed Tuesday.Expanded government spending in the final quarter of the year was seen as having raised the annual figure to meet the government target level, while private sector remained sluggish, according to the bank.The country’s economy grew 2.7 percent on-year in 2018, down from 3.1 percent in the previous year, according

Jan. 22, 2019

Korean economy grows 2.7% in 2018: BOK

The South Korean economy grew at the slowest pace in six years in 2018 as shrinking corporate investment weighed heavily on Asia's fourth-largest economy, central bank data showed Tuesday.The nation's economy expanded 2.7 percent on-year in 2018, slowing down from 3.1 percent the previous year, according to the advance estimate by the Bank of Korea. It is the most sluggish on-year growth since 2012, when the country pulled off 2.3 percent.But it met the BOK's earlier growth forecast of 2.7 perce

Jan. 22, 2019

Ministries in tug-of-war over export policy leadership

Tension is apparently escalating between the Ministry of Trade, Industry and Energy and the Ministry of Economy and Finance -- South Korea’s two-largest economy-related departments -- as the latter recently gestured at expanding its financial leverage to take over the role of being the nation’s export policy headquarters.The Finance Ministry has recently become unusually vocal toward concerns over the slowing trend of key industries, such as semiconductors and petrochemicals, to whic

Jan. 21, 2019

[Monitor] Koreans drinking less: survey

While South Koreans drink as frequently as they used to, the average volume of alcohol consumed on each occasion has dropped consistently, a survey showed. The survey of 2,000 adults conducted jointly last year by the Food Ministry and Korea Agro-Fisheries & Food Trade Corporation showed that consumers of alcoholic beverages drank an average of 8.8 days per month. Frequency of drinking was the same as the previous year.Respondents said they drank 6.3 cups of alcohol on each occasion, down fr

Jan. 21, 2019

Trade minister to attend WTO reform meeting in Davos

South Korea's trade minister will attend a meeting of the World Trade Organization this week to discuss its reform measures, his office said Monday. Kim Hyun-chong will visit Davos, Switzerland, on Thursday and Friday to join a 30-member ministerial meeting on ways to reform the embattled institution. The Swiss trade minister will host the gathering on the sidelines of the World Economic Forum in the resort town. Kim will attend talks to discuss measures to recover confidence in the multilateral

Jan. 21, 2019

KOTRA opens third office in Vietnam

State-run Korea Trade-Investment Promotion Agency on Monday opened its third Vietnamese office in Da Nang, seeking to support exporters in line with Seoul's New Southern Policy that centers on strengthening ties with Southeast Asian countries.The trade agency, which operates offices in Hanoi in the north and Ho Chi Minh City in the south, claimed the Da Nang branch will help around 50 South Korean firms in the central region of the country. There are some 20 South Korean companies in Da Nang.&nb

Jan. 21, 2019

Korea's exports fall 14.6% in first 20 days of January

South Korea's exports dropped 14.6 percent on-year in the first 20 days of January, hit by a plunge in overseas shipments of semiconductors, customs data showed Monday. The country's exports stood at $25.7 billion in the January 1-20 period, according to Korea Customs Service.The customs office said daily average exports -- which reflect working days -- declined 8.7 percent on-year to $1.77 billion.By product, exports of semiconductors nosedived 28.8 percent, while shipments of passenger cars ju

Jan. 21, 2019

Over half of Koreans predict negative economic effect from minimum wage hike

More than half of South Koreans think this year's minimum wage hike will have a negative effect on the economy, a survey showed Friday.The poll of 1,002 adults nationwide by Gallup Korea found 52 percent of people predict negative economic effects from the latest minimum wage increase. Only 24 percent said the wage hike will positively affect the Korean economy in 2019.The state-set minimum wage rose 10.9 percent to 8,350 won ($7.51) per hour this year from 7,530 won last year. Adding to the bur

Jan. 18, 2019