[News Analysis] US steel tariff reveals loophole in Seoul’s trade action plan

Amid the fallout of the US administration’s latest tariff on all steel imports, the South Korean government is facing criticism for its “lax” countermeasures to an issue that is likely to cause multitrillion won losses to local industries over the upcoming years.The key problem, observers say, is the lack of a policy headquarters, as the presidential office Cheong Wa Dae remains reluctant to raise government-level conflicts with Washington amid ongoing denuclearization talks co

March 9, 2018

Korea expresses regrets over US steel tariffs, mulls WTO complaint

South Korea's trade minister on Friday expressed regret over the decision by the United States to slap stiff tariffs on steel imports, saying the nation will consider filing a complaint with the World Trade Organization if it is not exempted.Paik Un-gyu, minister of trade, industry and energy, made the remark after US President Donald Trump ordered new tariffs of 25 percent be slapped on all steel imports with the temporary exception of those coming from Canada and Mexico."We express regret

March 9, 2018

Trump signs 25% tariff on steel imports

WASHINGTON -- US President Donald Trump on Thursday signed a 25 percent tariff on steel imports that is certain to add pressure on South Korean exports.Trump signed two proclamations -- one for steel and another for a 10 percent tariff on aluminum imports -- to address what the administration has called a threat to national security.South Korea was the third largest exporter of steel products to the US last year, after Canada and Brazil. The new action comes after the US introduced safeguard mea

March 9, 2018

Boosting labor productivity gains urgency

Calls are growing for more strenuous efforts to improve the country’s labor productivity to offset the negative effects of reduced work hours and increased wages on companies and the economy as a whole.Korea’s labor productivity remains near the bottom among major economies.A Korean worker produced added value worth $33.10 per hour on average in 2016, far below the average of $47.10 for 35 member states of the Organization for Economic Cooperation and Development. The corresponding f

March 7, 2018

Korea faces 40 import restrictions from US in Feb.

Korea faced far more import restrictions from the United States than any other country in February amid Washington's growing trade pressure on its ally, a trade body said Wednesday.Asia's fourth-largest economy was subject to 196 import regulations from the rest of the world as of Monday, with the US accounting for 40 of them, the highest number, according to the Korea International Trade Association.Of the American restrictions, 30 cases were anti-dumping investigations, eight were countervaili

March 7, 2018

Seoul all out to counter US 25% tariff on steel imports

South Korea is making last-minute struggles this week to exempt itself from the US government’s impending steel tariff which would strike a heavy blow to steel producers here and the nation’s export-dependent economy.Unlike other major steel exporting states such as China, Canada and the European Union, however, Seoul refrained from adopting reciprocal tariffication.Trade Minister Kim Hyun-chong on Tuesday left for Washington DC as part of his second outreach program to respond to th

March 6, 2018

Korean trade minister heads to US over steel tariffs

Korean Trade Minister Kim Hyun-chong on Tuesday set out on his second trip to Washington, DC in a week to meet with government officials and lawmakers to get Seoul exempted from proposed steel product tariffs announced by the United States.His trip comes as US President Donald Trump is set to impose a 25 percent tariff on steel imports this week, a move certain to affect Korean steel producers.During the four-day visit, Kim plans to meet senior policymakers, including US Trade Representative Rob

March 6, 2018

Korea feared to take hit from global trade row

A looming global trade war is feared to deal a blow to corporate Korea as Asia's fourth-largest economy banks heavily on exports for its economic growth, analysts said Tuesday.The world's three major economic powerhouses are locking horns with one another after US President Donald Trump has threatened high tariffs on imports of steel and aluminum.China, the world's second-largest economy, is reportedly mulling retaliatory duties on American farm imports, with the European Union said to be prepar

March 6, 2018

Trump says 'not backing down' on steel tariffs

WASHINGTON -- US President Donald Trump said Monday he's "not backing down" from his plan to impose tariffs on steel and aluminum imports. The action is expected to come this week, with Trump earlier announcing plans to introduce a 25 percent tariff on steel and a 10 percent tariff on aluminum. The new duties would hurt Korea, the No. 3 exporter of steel products to the US last year, after Canada and Brazil. "People have to understand, our country, on trade, has been ripped o

March 6, 2018

Industrial restructuring going adrift in Korea

Industrial restructuring has been going adrift under President Moon Jae-in’s administration, deepening concerns about the weakening of the country’s economic fundamentals.In December, the administration announced a new direction for corporate restructuring, which focused on ensuring a balance between financial logic and industrial consequences and considering the effects on regional economies and employment.To fit into the redefined approach, the government’s main arm for indus

March 5, 2018

US beef regains No. 1 place in Korean imported beef market: data

US beef imports shot up significantly last year, beating Australian meat to regain its No. 1 status in the Korean market for the first time in 14 years, industry data showed Monday.Korea imported 177,000 tons of US beef last year, up 13.5 percent from 156,000 tons tallied in 2016, according to the figures provided by the Korea Rural Economic Institute.Beef imports from Australia decreased 3.95 percent on-year to 172,600 tons last year, falling to second place in the foreign beef market in Asia's

March 5, 2018

Trump has not mentioned exemptions to steel tariffs: US commerce secretary

WASHINGTON -- US President Donald Trump has so far made no indication he will exempt certain countries from tariffs on steel imports, US Commerce Secretary Wilbur Ross said Sunday.Trump is expected to impose tariffs on steel and aluminum imports this week, a move certain to affect South Korean steel producers. On Thursday, he said he would introduce a tariff of 25 percent on steel and 10 percent on aluminum.The announcement was met with angry responses from China to Europe, which vowed to retali

March 5, 2018

BOK chief's reappointment a sign of bank's independence

Bank of Korea Gov. Lee Ju-yeol, a veteran monetary policy expert with a career spanning 41 years at the central bank, is widely seen as an advocate of the bank's independence who has promoted better communication with the market.The reappointment of Lee, 66, comes at a critical time for the South Korean economy, which has been grappling with mounting household debt and weak consumption.It is the second time that a BOK governor has been reappointed, but no governor has been nominated for a second

March 2, 2018

Trump set to impose 25% tariff on steel imports next week

WASHINGTON -- US President Donald Trump said Thursday he plans to impose a 25 percent tariff on steel imports next week, a move that could affect South Korean steelmakers.Speaking at a meeting with business executives at the White House, Trump also said he plans to impose a 10 percent tariff on imports of aluminum and keep the two measures in place indefinitely."We'll be signing it in. And you will have protection for the first time in a long while, and you're going to regrow your industrie

March 2, 2018

Korea's industrial output rises 1% in January

SEJONG -- Korea's industrial output increased in January from a month earlier on a rise in production in the automaking and chipmaking sectors, government data showed Friday.Production in the mining, manufacturing, gas and electricity industries rose 1 percent on-month in January, following an adjusted 0.5 percent on-month decline in the previous month, according to the data by Statistics Korea.From a year earlier, industrial output also spiked 4.6 percent in January, following a 4.6 percent on-

March 2, 2018

Korea's exports rise 4% on-year in Feb.

Korea's exports moved up 4 percent on-year in February, with its growth slowing mainly due to fewer working days caused by the Lunar New Year holiday, government data showed Thursday.Outbound shipments reached $44.88 billion in the one-month period, up from $43.16 billion a year ago, according to the data compiled by the Ministry of Trade, Industry and Energy.Exports rose for the 16th consecutive month, but numbers were affected by the four-day holiday in Korea as well as people taking days off

March 1, 2018

Writers, freelancers to pay more taxes from April

Writers, consultants and public speakers, among others, will have to pay more taxes for their work starting from April, according to revised tax laws.Currently, a 4.4 percent withholding tax is applied to fees for speeches, consulting and contribution articles. The rate will rise to 6.6 percent starting from April 1, and further go up to 8.8 percent in 2019. In addition, only 70 percent of fees derived from paid speeches, books and consulting will be deemed as expenses starting from April. The p

Feb. 28, 2018

US trade pressure triggers discord in Seoul

Amid mounting offensives from Washington on key export products, South Korea’s trade department is locking horns with the finance sector in its push to expand its trade negotiating muscle.The Ministry of Trade, Industry and Energy is working on a restructuring proposal to elevate its Office of Trade Negotiations from its current director-led organization to an assistant minister-led one, and also to increase its staff by 50, according to officials on Wednesday.Empowered by President Moon J

Feb. 28, 2018

BOK tipped to hike key rate in May or July

South Korea's central bank is expected to raise its key interest rate in May or July in an effort to cope with rising US rates, analysts said Wednesday.In a widely expected move, the monetary policy board of the Bank of Korea held the base rate steady at 1.5 percent, maintaining its wait-and-see stance. In November last year, the bank jacked up the borrowing cost for the first time in more than six years, citing signs of economic recovery.The decision to freeze the rate had been widely expected

Feb. 28, 2018

[News Analysis] US risks dog Korean economy

A global automaker’s move that could potentially lead to a withdrawal of business here, key rates pressures, and increasing trade pressure from the United States -- these are the three major US-related hurdles weighing upon South Korea’s economy this year.In the industrial sector, GM Korea’s decision to shut down its Gunsan plant after 22 years of operation is increasingly imposing strain upon the local economy and Seoul’s government. Macroscopically, Asia’s fourth-

Feb. 27, 2018