KIC adopts stewardship principles

The Korea Investment Corp., a sovereign wealth fund, said Monday it is adopting a set of stewardship principles to actively engage in corporate management as major shareholders.The principles require that the KIC review issues related to investment performance, risk management and governance structure that can influence long-term corporate values. They also call for partnerships with global investors who share the same goals. Officials said KIC will introduce and implement the principles in phas

Dec. 3, 2018

[On the Bar] How the Anti-Graft act has changed

On the Bar is a regular column written by attorneys at Yoon & Yang LLC on various laws and regulations that affect running a business in Korea. The content provided here is general legal information. -- Ed.The Improper Solicitation and Graft Act, often shortened to the Anti-Graft Act, was enacted March 27, 2015, and went into effect Sept. 28, 2016.The enactment of the Anti-Graft Act brought about numerous changes in South Korean society. In a survey conducted by the Anti-Corruption and Civil

Dec. 2, 2018

Korea asks Turkey to provide compensation for safeguard measures on PET

South Korea has asked Turkey to provide compensation for the European nation's provisional safeguard measures on polyethylene terephthalate imports, Seoul's trade ministry said Saturday. The Ministry of Trade, Industry and Energy said that it met with its Turkish counterpart in Ankara, Turkey, on Thursday and discussed compensation plans regarding the bilateral safeguard measures on PET products. Bilateral safeguard measures linked to a free trade agreement between the two sides allow temporary

Dec. 1, 2018

Korea's exports up 4.5 percent on-year in November

Korea's exports rose 4.5 percent from a year earlier in November fueled by robust sales of memory chips and petrochemical products, government data showed Saturday.Outbound shipments reached $51.92 billion last month, marking the seventh consecutive month for the amount to exceed $50 billion, according to the data compiled by the Ministry of Trade, Industry and Energy.Imports advanced 11.4 percent on-year to $46.78 billion in the one month period, with the trade surplus hitting $5.14 billion, th

Dec. 1, 2018

Moon pitches people-centered economy at G-20 summit

South Korean President Moon Jae-in on Friday introduced his people-centered economic policy before global leaders as a potent remedy to income polarization, jobless growth and various other challenges facing many countries. Moon made a keynote speech at the first session of the Group of 20 summit held in Argentina's capital under the theme of global economy, future of work and empowering women. "South Korea realized rapid growth that amazed the world but it shares the same problems with the

Dec. 1, 2018

Rate hike to cool down overheated housing market

South Korea's first key interest rate hike in a year is expected to cool down the overheated housing market by driving down leveraged real estate investments, experts said Friday.The Bank of Korea (BOK) raised the benchmark overnight interbank lending rate by a quarter point to 1.75 percent. In November 2017, the rate was marked up to 1.5 percent from an all-time low of 1.25 percent.Analysts and real estate experts said the latest move will help curb snowballing household debts and keep real est

Nov. 30, 2018

Public servants and office workers remain most preferred jobs in Korea

While most South Koreans wish to become public servants, in reality they strive to land jobs in the corporate world, a survey showed Friday.According to a Saramin HR, South Korea’s online job recruiting matching platform that surveyed 1,143 adults on job preferences, 66.6 percent of 404 job seekers answered that their desired job and their actual target did not match.  To a question asking which jobs they desired the most, irrelevant to how realistic it was, 26.7 percent said working

Nov. 30, 2018

Two days before budget deadline, political parties continue to bicker

Rival parties on Friday wrangled over the schedule for a plenary session to handle the government's 2019 budget proposal, two days ahead of the legal deadline for its parliamentary passage.Dec. 2 is the deadline to deal with the government's record 470.5 trillion won ($420.1 billion) budget bill, but a parliamentary special committee on the budget has yet to complete its review amid partisan squabbling. A plenary session for the bill was originally scheduled for Friday, which is also the deadlin

Nov. 30, 2018

BOK raises policy rate to 1.75%

South Korea’s central bank raised the nation’s benchmark interest rate Friday to 1.75 percent, amid growing household debt and further rate hike signals from the United States.The Bank of Korea held its last Monetary Policy Board meeting for this year, in which it decided to raise the key interest rate by 25 basis points to 1.75 percent, officials said.The rate had been frozen at 1.5 percent since November last year, when the BOK made its first hike in more than six years from a reco

Nov. 30, 2018

Korean president vows efforts to improve ties with Argentina

BUENOS AIRES -- South Korean President Moon Jae-in on Thursday vowed to improve his country's ties with Argentina and increase support for South Korean residents and businesses in the South American nation.In a meeting with some 200 South Korean residents and business leaders in Buenos Aires, Moon said his government will also support the education of second and third generation Koreans in Argentina. "Also, we will further develop the relationship between South Korea and Argentina so you wi

Nov. 30, 2018

Korea's economic growth forecast to slow to 2.6% in 2019

South Korea's economy is expected to lose steam slightly in 2019 from this year due to weakening exports and sluggish investment, a local think tank said Thursday.In its 2019 economic outlook, the Korea Capital Market Institute forecast South Korea's economic growth to slow to 2.6 percent next year from an estimate of 2.7 percent for this year. The South Korean economy, Asia's fourth-largest, is projected to lose further ground and expand at an annual rate of 2.5 percent in 2020."After peak

Nov. 29, 2018

Structural reform to slow growth of South Korean economy in 2019: Nomura

Structural reform, both intentional and unintentional, in South Korea's key industries and labor market will slow its economy next year, Nomura Financial Investment Co. said Wednesday.The brokerage firm pointed to restructuring as a key reason for its trimming of the economic growth forecast for 2019 to 2.5 percent from its previous projection of 2.7 percent. The forecast is conservative compared with those by local state entities. The Bank of Korea put the growth outlook for 2019 at 2.7 percent

Nov. 28, 2018

[Contribution] Setting the stage for an equity market rebound

By all counts, Hong Kong and China stocks have had a roller-coaster year in 2018. The Hang Seng index, after rallying in January to a record high above 33,000, pulled back more than 25 percent to just above 24,500 as US-China trade tensions escalated through the summer.  We recently saw a rebound as President Trump signaled a possible rapprochement. We believe this nascent recovery may have more room to run in the near term, based on our assessment of some of the underlying drivers of

Nov. 28, 2018

Korean investments in overseas securities hit record high in Q3

The amount of foreign securities held by major South Korean institutional investors rose to a record high in the third quarter of this year on growing demand for overseas bonds, central bank data showed Wednesday.The value of foreign stocks and bonds owned by institutions came to US$261.2 billion as of the end of September, up 3.7 percent, or $9.3 billion, from three months earlier, according to the data compiled by the Bank of Korea. The latest outstanding balance of foreign securities exceeded

Nov. 28, 2018

Economic measurements should move ‘beyond GDP’: experts

The excessive focus on gross domestic product has often misguided economic policies and has to some extent contributed to major global challenges including the 2008 global financial crisis, according to key speakers participating in the Organization for Economic Cooperation and Development’s sixth World Forum held here Tuesday.In the case of South Korea, policymakers need to address agenda related to subjective well-being, such as long working hours, they said. The OECD and Statistics Kore

Nov. 27, 2018

Finance minister calls on parliament to approve record budget proposal

South Korea's chief economic policymaker on Tuesday urged parliament to approve a record budget proposal for 2019, stressing that passing it is necessary to help resolve chronic problems, such as the low birthrate and dismal job conditions.The National Assembly's review of the government's 2019 budget proposal hit a snag as rival parties sparred over an estimated shortfall in tax revenue at a meeting of the subpanel on the budget. The legal deadline to review the government's record 470.5 trilli

Nov. 27, 2018

Korean biz sentiment hits 22-month low for December

Business sentiment in South Korea sank to a 22-month low for December amid flaccid domestic demand and worsening export conditions, a poll showed Tuesday.The business survey index  of the nation's top 600 firms by sales came to 88.7 for next month, down from 90.4 in November and the lowest level since 87.7 in February 2017, according to the Korea Economic Research Institute. A reading below 100 means pessimists outnumber optimists, while a figure above the benchmark means the opposite.The p

Nov. 27, 2018

[Herald Interview] S. Korea should ease up on growth pace, focus on reforms: OECD chief

Despite pessimistic projections for global growth and consequent market anxiety, South Korea’s economy is expected to put up a reasonably good fight in the coming years, according to the chief official of the Organization for Economic Cooperation and Development.The primary concern for Asia’s fourth-largest economy, however, is whether it can expand beyond the conventional frame of economic measurements and use its capacities and potential to fundamentally improve people’s live

Nov. 27, 2018

Public accountants grim about biz conditions: poll

A majority of South Korean certified public accountants are gloomy about the country's current business conditions and their outlook for next year due to anemic domestic demand and other negatives, a poll showed Tuesday.According to the survey of 300 accountants conducted by the Korea Institute of Certified Public Accountants, the business survey index stood at 64 for the second half of the year. The figure for the first half of 2019 came to 69.A BSI reading below 100 means pessimists outnumber

Nov. 27, 2018

Korea's economy to grow 2.6 pct in 2019: KIET

South Korea's economy is expected to grow 2.6 percent in 2019 due to slowing exports and weak domestic demand, a state-run think tank said Monday. The Korea Institute for Industrial Economics & Trade also lowered this year's gross domestic product outlook to 2.7 percent, down from 3 percent growth released in June. The institute said it downgraded next year's GDP projection due to protracted global trade tensions, monetary tightening in major economies and uncertainties in emerging markets.&

Nov. 26, 2018