S. Korean delegation to take part in RCEP talks in Bangkok

South Korean delegates will head to Thailand to participate in the latest round of talks for the Regional Comprehensive Economic Partnership, a proposed mega trade deal involving Asian nations, Seoul's trade ministry said Sunday. The RCEP is in essence a massive regional trade deal between 10 members of the Association of Southeast Asian Nations and the six countries with which ASEAN has existing free trade agreements -- South Korea, China, Japan, India, Australia and New Zealand.Kim Jung-il, Se

July 22, 2018

NK economy retreats sharpest in 2 decades in 2017: BOK

North Korea’s annual real gross domestic product in 2017 retreated 3.5 percent on-year, marking the sharpest fall in over 20 years, as sanctions on the North appear to have taken a toll on its exports, data showed Friday. This comes in contrast to the secluded state’s 3.9 percent on-year economic growth in 2016, according to data compiled by the Bank of Korea. The degree of decline is the steepest since 1997, when the real GDP decreased by 6.5 percent on-year.The central bank cited a

July 20, 2018

‘Essence of US-China trade war is to open China’s financial market’

SEOGWIPO, Jeju -- The nature of the ongoing trade war between the US and China is in Washington’s ambition to open Beijing’s financial market, a Korean expert on China’s economy said Friday.China’s strengths in the manufacturing sector are too much even for the US, but it has its weakness in financial industry and Trump is targeting that, according to Jeon Byung-seo, head of Institute for China Economy and Finance.“The fundamental motive of the bilateral trade war i

July 20, 2018

Higher minimum wage feared to cut jobs for seniors

Korea's minimum wage hike is feared to deal a harsh blow to jobs for elderly people as many of them are subject to the pay regulation, sources said Friday.The government jacked up the minimum wage by 16.4 percent to 7,530 won ($6.62) per hour on Jan. 1 this year, the biggest hike in nearly two decades. Next year's minimum wage has been set at 8,350 won, up 10.9 percent from this year.  According to Statistics Korea, nearly 205,000 Koreans aged 55 or older were employed by the business facil

July 20, 2018

S. Korea, Canada discuss joint response to US auto tariffs

South Korea and Canada have agreed to jointly deal with the United States' move to levy tariffs on foreign autos and put on a united front against the rising protectionism in global trade, Seoul's trade ministry said Thursday. South Korean Trade Minister Kim Hyun-chong met with Canadian Foreign Minister Chrystia Freeland in Ottawa to discuss the latest trade issues and explore ways to expand bilateral economic cooperation. The two nations have mulled ways to defend their auto industries as the D

July 19, 2018

Moon yet to follow up on pro-business gesture

President Moon Jae-in’s recent outreach to the business community seems to have so far fallen short of gaining full confidence and cooperation from corporate officials.The local corporate circle is cautiously watching whether he will follow through with his encouraging signals to shift to business-friendly policies despite objections from civic and labor groups as well as many ruling party lawmakers. In a move that was seen as heralding changes in his stance to keep a distance from the cou

July 18, 2018

Korea cuts growth estimate, set to spend more for underprivileged

South Korea's government plans to increase spending to create more jobs and expand the social safety net, as Asia's fourth-largest economy is set to lose its steam down the road in the face of rising uncertainties, including the growing trade war between major economies and a slowdown in facility investment, Seoul's finance ministry said Wednesday.Charting out its second-half economic policy plans, the ministry cut its growth estimate to 2.9 percent this year from its earlier projected 3 percent

July 18, 2018

S. Korea to expand support for low-income clusters in H2

South Korea’s government and the ruling party on Tuesday agreed to increase the amount of tax refunds for low-income households this year, in a move to help them deal with the side effects of the legal minimum wage increase.Officials are also set to speed up the timeline to subsidize low-income senior citizens and young job seekers, as part of an expansive fiscal program responding to sluggish employment and slow growth.“Support measures for the low-income bracket will focus on creat

July 17, 2018

Minimum wage rise discord deepens

With neither business owners nor workers’ unions satisfied with the latest settlement of the legal minimum wage for next year, South Korean President Moon Jae-in struggled to appease both sides, while admitting his election pledge to raise it to 10,000 won by 2020 was nigh impossible. His comments followed a string of oppositions lodeged by both the business and labor sides, while his chief financial policymaker criticized the double-digit growth as hurting the economy. Earlier i

July 16, 2018

Korea mulling more cash subsidies for heavier wage burden

The government is considering an increase in cash subsidies for smaller businesses in order to help ease the burden of higher payroll costs following the decision on an 11 percent minimum wage hike for next year, officials said Monday.The Minimum Wage Commission decided Saturday to raise next year’s minimum wage by 10.9 percent to 8,350 won ($7.37) per hour after an overnight meeting boycotted by business representatives. This year’s minimum wage is 7,530 won per hour, up 16.4 percen

July 16, 2018

Concerns rise on indebted self-employed businesses

A growing level of debt owed by self-employed businesses is becoming a ticking time bomb that hangs over the Korean economy, experts say.A continuous increase in the minimum wage amid sluggish domestic demand is set to add to precipitating the pace of debt growth.According to data recently submitted by the Bank of Korea to a lawmaker, the outstanding debt held by self-employed businesses in the country amounted to 549.2 trillion won ($487 billion) last year, up 14.4 percent from the previous yea

July 16, 2018

Finance minister, BOK chief meet over economic conditions

South Korea's top economic and monetary policymakers met Monday to discuss an array of economic issues, such as the growing trade tussle between the United States and China and sluggish job creation.The meeting between Finance Minister Kim Dong-yeon and Bank of Korea Gov. Lee Ju-yeol is their seventh round of policy talks since Kim took office in June of last year.Other senior officials from the finance ministry and the central bank also attended the gathering. "We are looking at potential

July 16, 2018

Finance minister, BOK chief to meet over economic conditions

Korea's top economic and monetary policymakers are scheduled to meet early this week to discuss an array of economic issues such as the growing trade tussle between the United States and China and sluggish job creation, government officials said Sunday.Finance Minister Kim Dong-yeon and Bank of Korea Gov. Lee Ju-yeol will meet Monday for their seventh round of policy talks since Kim took office in June of last year. Other senior officials from the finance ministry and the central bank will also

July 15, 2018

S. Korean economy vulnerable to China-US trade row: report

The escalating trade war between the US and China may have a severe effect on the South Korean economy, which has an excessively high economic dependence on its Asian neighbor, a report said Sunday.The world's two largest economies have been at loggerheads over trade, leading to global repercussions. In its latest salvo against China, the Donald Trump administration this week unveiled an additional list of tariffs on $200 billion worth of Chinese goods. The action came just days after Washington

July 15, 2018

Heads of commercial lenders see economic growth fall below 3% this year

The heads of the top five commercial banks here expect the country's economy to grow at less than 3 percent this year and rate hikes to become one of major risks facing the financial markets, a survey showed on Sunday.Their economic projection is in line with the latest outlook by the Bank of Korea for Asia's fourth-largest economy.Last week, the central bank adjusted its earlier growth forecast for the year down by 0.1 percentage point to 2.9 percent, citing rising economic uncertainties at hom

July 15, 2018

Overseas sales make up nearly 19% of total products sold by Korean companies: data

Overseas sales accounted for nearly a fifth of all products sold by Korean companies and the numbers are expected to continue rising in the future as countries ramp up protectionist policies, market data showed Sunday.Data from the Bank of Korea and Export-Import Bank of Korea showed the foreign sales ratio for local firms standing at 18.8 percent in 2016, following efforts by companies over the years to build production facilities abroad.Companies have actively built factories and various opera

July 15, 2018

Labor, biz communities unsatisfied with 2019 minimum wage decision

Both labor and business communities in South Korea on Saturday expressed dissatisfaction with the country's minimum wage set for 2019.The Minimum Wage Council -- a panel comprised of representatives from labor, management and the general public -- announced that South Korea's minimum wage for next year has been set at 8,350 won (US$7.37) per hour, up 10.9 percent from this year, after a 19-hour discussion. The representatives for the labor circle have demanded a 43 percent increase to 10,790 won

July 14, 2018

S. Korea to raise minimum wage for 2019 by 10.9%

 South Korea's minimum wage for next year has been set at 8,350 won ($ 7.37) per hour, up 10.9 percent from this year, officials decided on Saturday. The decision was made after the Minimum Wage Council -- a panel comprised of representatives from labor, management and the general public -- had a 19-hour meeting overnight to meet the deadline.   This is the first time in history that the country's minimum wage will surpass the 8,000 won-mark. Monthly salary at the minimu

July 14, 2018

Economic recovery being maintained amid growing uncertainties: finance ministry

South Korea's economy is on a recovery path on the back of a rebound in industrial output, although capital spending and consumption are facing adjustments and external uncertainties are on the rise, a government report said Friday.A weaker job market, rate hikes in the United States and rising oil prices pose downside risks for Asia's fourth-largest economy, the finance ministry said in its monthly economic assessment report. "The overall recovery pace is being maintained as industrial out

July 13, 2018

S. Korea ups guard against job crisis, US-China trade war

The government on Thursday voiced growing concerns about the South Korean economy for the rest of the year, calling for stimulus to respond to the prolonging job crisis here and the escalating US-China trade conflict.The growing level of anxiety came as the central bank nudged down its economic forecast, at last reflecting the pessimistic opinions held by public and private think tanks, while showing little sign of raising the policy rate in the near future.“The employment situation has re

July 12, 2018