[Profile] Cheong Wa Dae taps insiders for reshuffle of top posts

In replacing the top two economic policymakers on Friday, Cheong Wa Dae has chosen insiders from the incumbent bureaucratic society. Hong Nam-ki, 59, who was named to replace Kim Dong-yean as deputy prime minister and finance minister, has been serving as chief of the Office for Government Policy Coordination since May 2017, the beginning of the Moon Jae-in administration.He is marked for his diverse experience not only in government departments, but also in the presidential secretariat und

Nov. 9, 2018

[Breaking] Blue House reshuffles top economic policymakers

The presidential office Cheong Wa Dae on Friday replaced the nation’s top two economic policymakers -- Deputy Prime Minister and Finance Minister Kim Dong-yeon and presidential chief of staff for policy Jang Ha-sung -- amid persisting skepticism over the country’s struggling economy. Minister Kim is to be replaced by Hong Nam-ki, chief of the Office for Government Policy Coordination, while Jang’s post is to be filled by Kim Su-hyun, senior presidential secretary for socia

Nov. 9, 2018

Retail sales, service output face extended slump in restructuring-hit region

Retail sales and service output in restructuring-hit regions continued to remain in a slump in the third quarter, government data showed Thursday.According to the data compiled by Statistics Korea, service output in South Gyeonsang Province, North Jeolla Province and Ulsan city suffered a decline of 0.8 percent, 0.6 percent and 0.2 percent, respectively, in the July-September period, from a year earlier.Retail sales in South Gyeongnam, North Jeolla and Ulsan also logged negative growth, the late

Nov. 8, 2018

Seoul to provide W15b for Korean firms eyeing ASEAN market

Some 15 billion won ($13.4 million) will be allocated in the national budget next year to assist Korean small and medium-sized companies making inroads into the Southeast Asian market, a presidential aide said Wednesday, calling the region “a blue ocean” for Korean companies.“Even if it is a blue ocean market, financial assistance is needed for companies entering the market with insufficient capital,” said Kim Hyun-chul, presidential adviser for economic affairs, at a mee

Nov. 7, 2018

Experts call for more infrastructure spending

Calls are growing for the government to increase infrastructure spending to shore up the country’s slowing economy and improve its worsening employment conditions.Since its launch in May last year, President Moon Jae-in’s administration has refrained from following in the footsteps of previous administrations, which sought to bolster the economy by undertaking massive infrastructure projects. It has been particularly critical of the attempt by former President Lee Myung-bak’s g

Nov. 7, 2018

Vehicle fuel price dips upon tax cut effectuation

South Korea reported a sharp decline in the price of gasoline, diesel and liquefied petroleum gas Tuesday, as the government effectuated its temporary tax break on vehicle fuels in an effort to alleviate the people’s economic burden, data showed.According to Opinet, the oil information platform run by the Korea National Oil Corporation, the average per liter price of gasoline here stood at 1,677.39 won ($1.49) at around 2:30 p.m. on Tuesday, down 12.91 won from a day earlier and marking th

Nov. 6, 2018

Korea's current account surplus reaches $10.83b in Sept.

South Korea's current account remained firmly in the black in September despite a slight decrease in goods surplus, central bank data showed Tuesday.The country's current account surplus came to $10.83 billion in September, down from a record $12.29 billion a year earlier, according to the preliminary data from the Bank of Korea. The number rose from a month earlier when it stood at $8.44 billion.It is the first time in one year that the favorable balance surpassed the $10 billion mark. Asia's f

Nov. 6, 2018

Concerns rise over impact from falling asset prices

The slowing Korean economy has been shadowed by the possibility of a steep asset devaluation, which could push it deep into a long-term recession.With investment declining and employment worsening, a simultaneous fall in stock and real estate prices could see the country go through something similar to Japan’s “two lost decades” spanning the 1990s and 2000s, economists here warn.They call for pre-emptive measures to prevent continued asset devaluation from further dampening eco

Nov. 5, 2018

Korea aims to attract W80tr at free economic zones by 2027

Korea aims to attract a total of 80 trillion won ($71.2 billion) of investment from both Korean and foreign companies to the nation’s free economic zones over the next decade by attracting Korean anchor companies and giving more benefits to new industries and service sectors, according to the government on Monday. Korean Free Economic Zones are specially designated areas created to improve the business and living environment for foreign-invested firms in Korea. Since the inauguration of an

Nov. 5, 2018

Goldman Sachs economist named head of committee on cooperation

A senior Goldman Sachs economist was named head of the Presidential Committee on Northern Economic Cooperation, the presidential office said Sunday. Kwon Goo-hoon, 56, will replace Rep. Song Young-gil of the ruling Democratic Party as chairman of the committee that was formed to reinforce economic and other forms of cooperation with the northern region, including Eurasia.Song quit in late July to run for chief of the ruling party.A graduate of Seoul National University, Kwon earned his Ph.D from

Nov. 4, 2018

PM suggests further tax cuts in crisis zones

Further tax cuts should be offered to government-designated industrial crisis zones in order to create an actual investment effect, according to Prime Minister Lee Nak-yon on Sunday.“I suggest we discuss ways to further increase the investment tax deduction rate in industrial crisis zones,” Lee said at the government and ruling party meeting held at the National Assembly.“Related tax revision bills are currently pending for (parliamentary) approval, but the current level (of ta

Nov. 4, 2018

Apartment price gap widens to 7-year high in Oct.

The price gap between South Korea's most expensive apartments and its cheapest ones widened to a more-than-seven-year high last month amid an overheated urban real estate market, industry data showed Sunday.According to the data compiled by Kookmin Bank, apartment prices in the top 20 percent group reached an average 694.1 billion won (US$621,000) last month, up 22.3 million won from a month earlier. Prices of apartments in the bottom 20 percent band fell 610,000 won on-month to an average 115.3

Nov. 4, 2018

Number of low-paid jobs in public sector rises at fastest clip in 5 years in H1

The number of low-paid people hired by South Korea's public and governmental organizations rose at the fastest pace in five years in the first half of this year amid sluggish employment conditions, government data showed Sunday.In public administration, defense and social welfare, 387,000 employees were paid less than 2 million won (US$1,800) per month during the January-June period, up 45,000 from a year earlier, according to the data from Statistics Korea. The on-year increase was the largest

Nov. 4, 2018

CJ CGV Vietnam seeking to boost market share in Vietnam via IPO

CJ CGV Vietnam Holdings Co. said Friday it will further expand its presence in Vietnam by maximizing funds from its planned listing in South Korea this month.　The cinema chain based in Vietnam is scheduled to go public on Seoul‘s main KOSPI bourse on Nov. 16. It plans to issue 5.71 million shares, with the share price to be set between 18,900 won (US$16.8) and 23,100 won, according to the firm and the bourse operator, Korea Exchange.　“We find great potential in the Vietnamese market,

Nov. 2, 2018

Concerns growing over policy detached from reality

Concerns are growing that President Moon Jae-in and his aides have stuck to economic policies detached from the reality of the country’s economy, which is rapidly losing vitality amid deteriorating conditions at home and abroad.According to government sources, Moon plans to preside over a meeting of economy-related ministers in November for the first time in four months to call for strengthening efforts to enhance economic fairness. Discussion at the planned meeting is set to focus on faci

Nov. 1, 2018

Finance minister says govt. striving to boost facility investment

South Korea's chief economic policymaker said Thursday that the government will strive to boost lackluster facility investment by accelerating state-led projects.Finance Minister Kim Dong-yeon also promised to slash regulatory red tape to allow the private sector to focus on making investments that can contribute to economic growth. "The government will make efforts to provide a momentum for facility investment to turn around," Kim said in an economy-related ministers meeting.Facility

Nov. 1, 2018

Korea's exports up 22.7% on-year in Oct.

South Korea's exports rose in October compared with a year ago on upbeat sales of memory chips and petrochemical products, government data showed Thursday.Outbound shipments reached $54.97 billion last month, a 22.7 percent surge from a year ago and the second-highest monthly figure since September 2017, according to the data compiled by the Ministry of Trade, Industry and Energy.  Imports jumped 27.9 percent on-year to $48.42 billion in October, resulting in a trade surplus of $6.55 billio

Nov. 1, 2018

Korea's consumer price growth hits 13-month high in Oct.

South Korea's consumer price growth accelerated in October, hitting the highest in 13 months, on a sharp rise in prices for agricultural goods and oil-related products, government data showed Thursday.The country's consumer price index climbed 2 percent last month from a year earlier, moving up from the previous month's 1.9 percent on-year gain, according to the data compiled by Statistics Korea.The reading marks the highest since September 2017, when the comparable figure was 2.1 percent.From a

Nov. 1, 2018

China-Japan rapprochement adds challenge for Korean economy

The recent move by China and Japan toward reinvigorating their economic partnership could lead to aggravating the external environment for the Korean economy, experts here say.The cooperative mood between the world’s second- and third-largest economies is coming at a time when Korea’s economic ties with its two neighboring powers have been shadowed by lingering diplomatic estrangement.It has also raised concerns that Seoul may be sidelined from discussions on key matters involving th

Oct. 31, 2018

Korea's industrial output for September posts sharpest drop in 19 months

South Korea's industrial output for September posted its biggest drop in 19 months due to a fall in auto and electronic parts production, government data showed Wednesday, raising concerns that the economy is on the brink of a slowdown.Production in the mining, manufacturing, gas and electricity industries backtracked 2.5 percent on-month, following a revised 1.3 percent on-month gain in the previous month.On a monthly basis, the September reading is the sharpest decrease since February last yea

Oct. 31, 2018