State firms to spend over W30tr to nurture innovative growth

State-led companies plan to spend over 30 trillion won ($27 billion) in key leading sectors, such as autonomous driving, by 2022, thus creating an environment for private companies to seek innovative growth, the country's chief economic policymaker said Thursday."To boost innovative growth, state-run companies will play a vital role, and they will spearhead investment," Finance Minister Kim Dong-yeon said in an economy-related ministers meeting. "The government will also expand su

Aug. 2, 2018

S. Korean exports little affected by demand from advanced nations: report

South Korean triathletes said Thursday they'll try to bring home the first Asian Games gold medal from Indonesia this year.The triathlon team to compete at the Aug. 18-Sept. 2 Asian Games in Jakarta and Palembang, Indonesia, hosted a launching ceremony in Seoul. The triathlon events will be held on Aug. 31 and Sept. 1 in Palembang.Triathlon first became an Asian Games medal sport in 2006. South Korea has won two medals so far -- a women's bronze by Jang Yun-jung in 2010 and a mixed relay silver

Aug. 2, 2018

Online shopping purchases continue to increase in June

Purchases made using the Internet and mobile devices in South Korea continued to show solid growth in June, government data showed Thursday, demonstrating the popularity of smartphones, fast delivery and convenient payment options offered to local shoppers.The total value of transactions made with computers, smartphones and tablets reached a record 8.72 trillion won ($7.79 billion) in June, up 19.6 percent from a year earlier, according to the data from Statistics Korea.The sharp rise was attrib

Aug. 2, 2018

Weak inflation hampers BOK’s rate hike timeline

South Korea’s economy found itself in a prolonged deadlock in July, as its long-stalled domestic market failed to gain upward momentum, in contrast to the steady growth of the outbound sector, data showed Wednesday.The static trend of the market price index also weakened the recent speculations that the central bank may increase the policy rate within the year. The country’s exports in July stood at $51.88 billion, growing 6.2 percent on-year and rebounding from the slight fall in th

Aug. 1, 2018

Finance Ministry changes English name

South Korea’s Finance Ministry has changed its formal English name, seeking to better convey its role as the nation’s headquarters for financial policies and economic affairs, officials said Wednesday.The former Ministry of Strategy and Finance was renamed as the Ministry of Economy and Finance, starting Wednesday, the ministry said in a press release. “The latest change in the English name was based on internal feedback, surveys conducted on key foreign organizations and forei

Aug. 1, 2018

Korea's exports rebound in July

South Korea's exports rebounded in July from the previous month's slight fall, largely due to a continued rise in outbound shipments of chips and petrochemical goods, government data showed Wednesday.Outbound shipments rose 6.2 percent on-year to reach $51.88 billion last month, marking the second-largest monthly figure, according to the data compiled by the Ministry of Trade, Industry and Energy.  The reading also marks the first time that the country's monthly exports topped the $50 billi

Aug. 1, 2018

[Monitor] Heat wave leads to more traffic accidents

The number of traffic accidents increased by around 8 percent this summer compared to last year, a phenomenon largely attributable to a record-breaking heat wave, a report by Samsung Traffic Safety Research Institute showed.By analyzing over 1.86 million road accidents that occurred from June to August 2016-2018 (up until July 23, 2018) that involved their car insurance subscribers, the institute said the average number of accidents soared when temperatures escalated.For instance, while an avera

July 31, 2018

Growth momentum likely to weaken further

A simultaneous downturn in economic indicators raises the possibility of the Korean economy weakening in the second half to the extent of making it hard to achieve the official 2018 growth target of 2.9 percent.Preliminary data released by the Bank of Korea last week showed Asia’s fourth-largest economy grew 0.7 percent on-quarter in the April-June period, decelerating from a 1 percent rise in the first quarter.Finance Minister Kim Dong-yeon, who doubles as deputy prime minister for econom

July 30, 2018

Korea's antitrust chief to visit China this week

South Korea's antitrust chief is set to visit China this week to attend a competition forum and step up bilateral cooperation to crack down on abuses caused by market dominance, the Fair Trade Commission said Monday.Kim Sang-jo will give a keynote speech on South Korea's competition policy at the two-day forum in Beijing, which runs through Tuesday, the watchdog said in a statement.The FTC chairman will also hold talks with Zhang Mao, minister of China's State Administration of Market Regulation

July 30, 2018

Future outlook for self-employed people falls sharply: BOK data

The future consumer sentiment index for South Korea's self-employed entrepreneurs declined at a fast clip, a clear sign of the worries faced by small-scale business owners, data by the central bank showed Sunday.The economic outlook CSI for self-employed people in the Bank of Korea's July report, stood at 79, compared to 91 for salaried workers in the country.The findings gauge how economic actors view prospects for the next six months and can be used to check such factors as consumption, invest

July 29, 2018

Korean banks shed 7,400 jobs while making W18tr over 3 years

South Korean commercial banks let go some 7,400 employees over the past three years while earning some 18 trillion won mainly by collecting interest on loans they provided to households and companies, market data showed Sunday.The numbers come amid rising criticism that local lenders are not doing their part to create jobs and meet their social obligations, especially since they are making "easy" money from lending to people and firms with solid collateral. Official reports made by 19

July 29, 2018

Korea's consumer prices likely to pick up in H2: BOK

South Korea's low consumer prices will likely pick up in the second half of the year and reach near the central bank's target rate mainly due to the recovering global economy and rising public utility rates, a report by the bank said Thursday.According to the Bank of Korea monetary policy report submitted to the National Assembly, inflationary pressure from the demand side is rising throughout the world led by an upturn in the world economy.The International Monetary Fund revised up its 2018 wor

July 26, 2018

Govt., ruling party seek tax code revision for fairness, job growth

The government and the ruling Democratic Party said Thursday they will seek to revise the tax code this year in a way that will promote fair taxation and help boost job growth.Ruling party and government officials reached the agreement at their consultative meeting at a time when the Korean economy is slowing amid a sluggish job market."A revision of the tax code will center on improving income distribution and enhance taxation fairness in connection with the government's move to overhaul t

July 26, 2018

Currency war complicates risks to Korean economy

A possible global currency war that might erupt amid escalating trade tensions between the world’s largest economies threatens to pose a complicated set of risks to the Korean economy.US President Donald Trump last week accused China and the European Union of “manipulating their currencies and interest rates lower.”Treasury Secretary Steven Mnuchin later put flesh on Trump’s accusation by saying Washington is closely monitoring whether China has manipulated its foreign ex

July 25, 2018

S. Korea's July consumer sentiment slides at sharpest clip in 20 months

South Korea's consumer confidence plunged at the sharpest rate in 20 monthshowed Wednesday.s in July due largely to signs of an economic slowdown and intensifying trade disputes between the United States and China, central bank data The composite consumer sentiment index (CCSI) for this month stood at a 14-month low of 101, down 4.5 points from the previous month, according to the survey by the Bank of Korea (BOK).It is the steepest on-month decline since the index lost 6.4 points in November 20

July 25, 2018

Inflationary pressure grows on oil prices, heat wave, utility rates

South Korea is expected to face growing inflationary pressure in the coming months due to rising oil prices, the fallout of a record heat wave and signals of public utility rate hikes, observers noted Tuesday.The key point at issue is whether inflation will rise as high as to near the 2 percent mark, in which case the central bank is likely to speed up its retrenchment timeline and possibly raise the policy rate within the year.The recent weather factors and the mounting signs of utility rate hi

July 24, 2018

LG Chem to invest W2.8tr to expand high value production

South Korea’s LG Chem announced Monday it will invest some 2.61 trillion won to expand manufacturing facilities to raise the capacities of the Naphtha Cracking Center and high value metallocene polyolefin by 800,000 tons each at its Yeosu plant in South Jeolla Province. The production will begin by the second half of 2021.It will also invest some 200 billion won to create an industrial complex to manufacture future materials in Dangjin, South Chungcheong Province. Through the latest invest

July 23, 2018

Tax revenue increase far from guaranteed

The Moon Jae-in administration’s expansionary fiscal policy will probably prove unsustainable in a couple of years due to a possible decline in tax revenue that might stem partly from reduced corporate profits, economists say.On the back of a continuous rise in tax revenue, President Moon’s government has been increasing fiscal spending at a steep pace to expand welfare and employment programs. It is also under growing criticism for squandering taxpayer money to cope with the uninten

July 23, 2018

S. Korea, Tanzania agree to deepen economic cooperation

DAR ES SALAAM -- South Korean Prime Minister Lee Nak-yon held talks with his Tanzanian counterpart and agreed to work together to further deepen economic cooperation between the two countries, officials said.Lee arrived in Tanzania on Saturday for a three-day visit in the second stop of his weeklong trip to the region that already took him to Kenya and will also include a visit to Oman later this week. Bolstering economic and business ties with the countries is a key purpose of the trip. In Sund

July 23, 2018

Payment at listed firms 3 times higher than minimum wage

The average hourly payment for South Korea's listed firms was more than three times higher than the country's minimum level, market data showed Sunday.A total of 1,932 firms listed on the main KOSPI and tech-laden KOSDAQ markets were presumed to have paid an average of 22,472 won ($19.79) per hour last year to their 1.56 million employees, according to the data from Chaebol.com, a research firm specialized in large businesses.In 2017, South Korea set the minimum hourly wage at 6,470 won. The amo

July 22, 2018