BOK holds key rate steady at 1.50% in Feb.

South Korea's central bank on Tuesday kept its key rate unchanged for the second month in a row as Asia's fourth-largest economy experiences slow growth momentum.In a widely expected move, the monetary policy board of the Bank of Korea voted to hold the key rate steady at 1.50 percent, maintaining its wait-and-see stance.In November last year, South Korea's central bank adjusted up the key rate for the first time in more than six years, citing signs of economic recovery.The decision to freeze th

Feb. 27, 2018

Questions raised about extra fiscal spending plan

Questions are being raised about the relevance of the government’s move to draw up a supplementary budget this year to cope with the country’s deteriorating unemployment problem.Critics note President Moon Jae-in’s administration is looking for an easy way to tap into taxpayers’ money to bolster employment at the risk of neutralizing fiscal disciplines.Finance Minister Kim Dong-yeon, who doubles as deputy prime minister for economic affairs, said last week that the govern

Feb. 26, 2018

[Monitor] Korea‘s household income improves on-year

South Korea saw its real household income rise in the fourth quarter last year from a year ago, ending eight consecutive quarters of decline, data by Statistics Korea showed.An average monthly income of a household reached 4.45 million won ($4,130) in the fourth quarter, up a nominal 3.1 percent from the previous year.The inflation-adjusted real income also surged 1.6 percent on-year. The real income had been on a decline since the last quarter of 2015.Households’ income through wages rose

Feb. 23, 2018

'Critical' economic momentum eyed for sustainable growth: finance minister

South Korea's economy needs critical growth momentum to mount a sustainable expansion going forward, the country's chief economic policymaker said Wednesday, stressing that innovative growth is crucial in that context.In a speech to businessmen, Finance Minister Kim Dong-yeon said Asia's fourth-largest economy is at a crossroads. "Last year, our economy achieved 3 percent economic growth, and what should be done at the moment is to create critical momentum (for our economy)," Kim said.

Feb. 21, 2018

Korea Inc. caught between external, internal risks

Korea Inc. is being squeezed between growing risks from its two largest trading partners and a raft of anti-business policies pushed by President Moon Jae-in’s administration.The country’s manufacturing exporters have faced mounting protectionism in the US and intensifying competition with their Chinese rivals both in traditional and high-tech sectors.Under recommendations made last week by the US Department of Commerce to President Donald Trump, steelmakers from Korea and 11 other c

Feb. 21, 2018

Korea demands long-term commitment, transparent management from GM

South Korea's commerce minister on Wednesday called on General Motors Co. to submit a feasible long-term investment plan and improve its opaque management style to restructure its operations here following its decision to shutter one of its car production plants.The Detroit-based automaker said last week that its Gunsan factory in the southwest will be closed by May, citing its low output. The decision unnerved policymakers because such a step could lead to massive layoffs that would not be in t

Feb. 21, 2018

Korea signs FTA with five Central American nations

South Korea and five Central American nations signed a trade deal to lower tariffs and other barriers on a wide range of areas to expand business ties, Seoul's trade ministry said Wednesday. South Korea inked the free trade agreement with Costa Rica, El Salvador, Honduras, Nicaragua and Panama to ease duties on over 95 percent of goods and open up the service and investment market. Talks on the pact started in June 2015 and covered 24 chapters addressing goods, service and investment, non-tariff

Feb. 21, 2018

Govt. to designate Gunsan as employment crisis area in wake of GM shutdown decision

The government will soon designate the southeastern city of Gunsan, which has been affected by GM Korea's recent decision to shut down a production facility, as a special employment crisis area, an official from the presidential office Cheong Wa Dae said Tuesday."The labor ministry decided today to take emergency steps to designate the Gunsan region as an employment crisis area," Cheong Wa Dae spokesman Kim Eui-kyeom told a press briefing. The designation enables emergency government s

Feb. 20, 2018

Ruling party calls for retaliatory measures against US steel tariff proposal

Members of the ruling Democratic Party reacted strongly to a US proposal to impose a massive tariff on South Korean steel imports, saying the country should consider retaliatory measures, such as restrictions on American agricultural imports.The US Commerce Department suggested last Friday slapping a 53 percent tariff on steel imports from a dozen countries, including South Korea, as part of measures to protect the local industry. The proposal came after the US imposed steep tariffs on imports o

Feb. 20, 2018

Korea seeks to shift export strategy as US raises trade barriers

SEJONG -- South Korea should change its export strategy to expand its foothold in emerging markets and develop new growth drivers against a series of import restrictions by the United States, Seoul's commerce minister said Tuesday.Paik Un-gyu, Minister of Trade, Industry and Energy, said South Korea should be strategic and nimble to manage potential risks from the rising protectionist trade policies under US President Donald Trump, including safeguard measures on washers and solar panels and pro

Feb. 20, 2018

PM: Korea 'being driven into difficult situation'

Prime Minister Lee Nak-yon said Tuesday Korea is being "driven into a difficult situation," citing General Motors' decision to shut down one of its assembly plants in the country and the possibility of a hefty tariff on Korean steel exports to the US."GM Korea decided to shut down its Gunsan plant and the US Trump administration is putting together measures restricting steel imports," Lee said at the start of a Cabinet meeting. "It appears Korea is being driven into a di

Feb. 20, 2018

Korea needs proper response to currency fluctuations

Calls are rising for timely measures to stabilize the increasing fluctuation in the value of the Korean won.Economists note a failure to properly respond to currency fluctuations could lead to sparking foreign capital flight or dampening exports that have shored up Asia’s fourth-largest economy.The won has depreciated against the US dollar in recent weeks as the global shock waves prompted by the prospect of steep US rate hikes hit local financial markets.Foreign investors net sold Korean

Feb. 19, 2018

LKP: Korea's inclusion in US tariff list 'red light' in relations with Washington

South Korea's inclusion in the United States' list of countries that could have a 53 percent tariff levied on their steel exports is a "red light" in economic relations between the two countries, the main opposition party said Monday.Imposition of the hefty tariff on steel imports from 12 countries was one of three suggestions that the US Commerce Department made to President Donald Trump to protect the local industry. South Korea was the only US ally included in the list."At a ti

Feb. 19, 2018

Exports created a record high 4.47m jobs in 2017: report

South Korean export growth helped create a record 4.47 million jobs in 2017, a report by a local think tank showed Sunday.Asia's fourth-largest economy shipped out $573.7 billion worth of goods last year, the highest amount tallied in a one-year period, with such gains contributing to a large number of new jobs in the country, the findings by the Institute for International Trade showed.The institute said the total exceeded the 4.08 million posts created by exports in 2016, with the job creation

Feb. 18, 2018

IMF predicts S. Korea's potential growth rate could be in 2% range in 2020s

A report by the International Monetary Fund showed Sunday that South Korea's potential growth rate will hover at low 2 percent levels in the 2020s and dip to the 1 percent range in the 2030s due to various factors.The Washington-based global monetary organization said in its assessment of annual talks with South Korean policymakers, Asia's fourth-largest economy will face tough challenges in productivity and distortions in the country's labor market.It said Seoul needs to expand its social secur

Feb. 18, 2018

S. Korea's coffee market tops W10tr in 2017

South Korea's domestic coffee market surpassed 10 trillion won in 2017 for the first time ever as demand for the brew continues to rise, market data showed Sunday.According to the Korea Customs Service, the country's coffee market stood at 11.7 trillion won ($10.8 billion), up more than threefold from around the middle 3 trillion-won level a decade earlier.This translates into 26.5 billion cups of coffee being served last year and an average of 512 cups being consumed per person. Asia's fourth-l

Feb. 18, 2018

Trump gets recommendations on tariffs for steel imports

US President Donald Trump has received recommendations on tariffs for steel imports, including those from South Korea, the US Department of Commerce said Friday.The recommendations followed investigations into the impact on national security from imports of steel mill products and wrought and unwrought aluminum, the department said in a statement.The tariffs, if adopted, would be another trade remedy undertaken by the Trump administration following its imposition of tariffs on imports of washing

Feb. 17, 2018

Moon's regulatory reform yet to gather traction

Despite its repeated pledges to push for drastic deregulation, President Moon Jae-in’s government has been facing criticism for dragging its feet on regulatory reform.Presiding over a debate last month, Moon emphasized the need to take a “revolutionary approach” to lifting regulations, calling for “bold ways that have never been tried until now.”Critics say, however, his administration’s efforts toward deregulation have been limited to selected new industries

Feb. 14, 2018

Korea's jobless rate unchanged at 3.7% in Jan.

Korea's jobless rate remained unchanged at 3.7 percent in January, government data showed Wednesday.The number of employed people reached 26.21 million in January, up 334,000 from a year earlier and accelerating from the previous month's on-year rise of 257,000, according to the report compiled by Statistics Korea.The unemployment rate for young people -- those aged between 15 and 29 -- was 8.7 percent, compared with 8.6 percent a year earlier. The employment rate advanced 0.4 percentage point t

Feb. 14, 2018

Korea expects slower export growth in Feb.

South Korea will take proactive measures to boost exports to keep the growth momentum going despite rising protectionist policies by major trading partners and fewer working days in February, the trade ministry said Tuesday.The Ministry of Trade, Industry and Energy expected the export growth will slow this month due to fewer working days from the Lunar New Year holiday, which falls later in the week, coupled with rising import restrictions by major economies."The internal and external envi

Feb. 13, 2018