RCEP mega FTA talks to be held in India this week

Talks to forge a mega free trade agreement encompassing Asia and Oceania will take place in India this week with countries striving for an early settlement of the accord, the government said Sunday.The Ministry of Trade, Industry and Energy said its chief FTA negotiator Yu Myeong-hui will lead a 60-person team to Hyderabad, India for the Regional Comprehensive Economic Partnership talks that run from Monday through Friday. RCEP involves the Association of Southeast Asian Nations, South Korea, Ja

July 23, 2017

State pension fund management assets surpass 600 tln won for first time

The size of assets under management by South Korea's state pension fund surpassed the 600 trillion won ($536.2 billion) mark for the first time ever, the government said Sunday. According to the Ministry of Health and Welfare, the total value of funds controlled by the National Pension Service reached 601 trillion won as of Monday, making it the world's third-largest in terms of size after Japan's Government Pension Investment Fund and the Government Pension Fund of Norway. The NPS has over 20 m

July 23, 2017

Govt. to adopt 'universal' mobile fees in 2018

The government will adopt "universal" mobile subscription fees sometime next year in line with its efforts to reduce the cost burden for mobile phone users, the ICT ministry said Friday.According to the draft version of the revision to the telecommunication law -- subject to parliamentary endorsement -- a service package with between 1 and 1.3 gigabytes of data priced at 20,000 won ($18) per month will be introduced, said the Ministry of Science, ICT and Future Planning.The new package

July 21, 2017

[News Focus] Tax hike expectations hold back state affairs plan

Controversies continue to bubble over expectations of a tax hike to finance President Moon Jae-in’s key state affairs agenda.Though the presidential office and ruling party leadership have said any extra taxes will be limited to corporations and the richest individuals, criticism persisted on the apparent inconsistency in the state chief’s words.Throughout the presidential election campaign and up until recently, Moon has been aspiring to achieve his visions of welfare and fair econo

July 21, 2017

Korea's economy likely slowed to 0.6% on-quarter in Q2: Moody's Analytics

South Korea's economy likely grew at a slower pace in the second quarter from three months earlier, a leading provider of economic analysis said Friday.Growth of South Korean gross domestic product "likely cooled to 0.6 percent" in the June quarter, Moody's Analytics said, noting the country's exports didn't maintain their burly first quarter pace as a blip in tech demand and slower Chinese demand hurt shipments.South Korea's GDP expanded 1.1 percent in the January-March period from th

July 21, 2017

Top financial regulator calls for swift clearing of bad loans

South Korea's top financial regulator on Friday called for the swift clearing out bad loans, saying that there is the need to achieve tangible results next month. Choi Jong-ku, the new chairman of the Financial Services Commission, made the remarks earlier in the day as he held the first meeting with senior regulatory officials in Seoul. The task is one of the five-year policy road maps outlined by President Moon Jae-in.Next month, the government plans to draw up a package of fresh measures

July 21, 2017

Korea's July 1-20 exports jump 22.4% on-year

South Korea's exports rose 22.4 percent for the first 20 days in July from the same period last year helped by a robust shipment of ships and semiconductors, government data showed Friday. Exports totaled $30 billion in the 20-day period in July, with exports of vessels and computer chips surging 245.6 percent and 47.7 percent each, the Korea Customs Service said.  Exports to the United States and China rose 5.4 percent and 3.2 percent each in the July 1-20 period. Imports stood at $25.9 bi

July 21, 2017

Minimum wage hike to cut profits at retail sectors, but bolster consumption

A decision by the government to raise the minimum wage next year is expected to cut profits at convenience and discount store chains, but it could help bolster consumption, according to foreign investment banks on Friday. The government has decided to hike minimum wage 16 percent to 7,530 won ($6.7) per hour next year, marking its biggest rise since 2000. It would affect about 4.63 million workers. The Korea Center for International Finance report, citing Citibank, speculated the hike in the min

July 21, 2017

White House cites start of KORUS renegotiations as accomplishment

The White House on Thursday cited the Donald Trump administration's launch of a process to renegotiate the bilateral free trade agreement with South Korea as an accomplishment during the president's first six months in office.In a statement, the White House listed what it said the president has done in his "Six Months of America First" since coming into office Jan. 20."Last week, the President began the process of renegotiating the United States-Korea Free Trade Agreement," i

July 21, 2017

Korean economy to grow 2.7% in 2017: ADB

South Korea's economy is expected to grow 2.7 percent in 2017 from a year earlier, the Asian Development Bank said Thursday, revising up its previous outlook of 2.5 percent.The bank cited abated political uncertainties following the inauguration of the new president, along with the improving global economy and revitalization of exports.  "A sharp upswing in machinery and equipment outlays and persistently high construction growth helped boost gross domestic product growth overall, thou

July 20, 2017

Moon reiterates paradigm shift to address low growth, economic polarization

President Moon Jae-in on Thursday reiterated his call for an economic paradigm shift to address weak growth and polarization, stressing a more active government role in tackling the country's economic challenges. During a forum on financial strategy, Moon also underscored that the country's financial policies should be "people-oriented," inclusive, balanced and transparent, and involve citizens' participation."There has been a blind belief in a small government, but in order to ov

July 20, 2017

[News Focus] How will class action suits be introduced in Korea next year?

After some two decades of disputes, class action suits for basic consumers may be introduced next year, according to the top 100 policy plans announced by the Moon Jae-in administration on Wednesday.The tool to allow consumers who have suffered damage from products to benefit en mass from compensation rulings without directly participating in a legal battle has always been a hot potato for the preceding governments and legislators.Despite President Moon Jae-in’s determination to promote co

July 20, 2017

[Monitor] Moon’s five-year plan needs W178tr

Based on President Moon Jae-in’s five year administration plan, a total of 178 trillion won ($158 billion) is needed to support his major policies and tasks, according the State Affairs Planning Advisory Committee.The administration plans to prepare some 95.4 trillion won by cutting expenditures and secure 82.6 trillion won through expanding tax revenue.

July 20, 2017

Korea to launch new ministry dedicated to SMEs

South Korea will set up a new ministry in charge of small and medium-sized businesses that will be dedicated to supporting smaller companies and creating more jobs, the government said Thursday.After long-drawn-out negotiations, the National Assembly passed the bill which included elevating the Small and Medium Business Administration to a Cabinet ministry supporting SMEs, venture startups and micro-businesses, as was pledged by President Moon Jae-in during the election campaign. The SMBA is cur

July 20, 2017

Agriculture minister says no to FTA changes on rice imports

South Korean Minister of Agriculture, Food and Rural Affairs Kim Yung-rok said Thursday he would not concede to any demand for an increase in rice imports from the US when talks begin regarding modifications to the Korea-US Free Trade Agreement. 　The agriculture minister said the farming industry had been struggling since the FTA came into effect five years ago, as Korea’s rice prices continue to plunge, with farmers blaming an increase in rice imports. 　“It is not a simple task, but

July 20, 2017

Korea creates post of trade minister ahead of talks with US

South Korea on Thursday created the post of trade minister in a move to strengthen its negotiating capacity ahead of crucial talks with the United States on revising the bilateral free trade deal.The move is part of a bill endorsed by parliament on government reorganization on the same day, and came days after US Trade Representative Robert Lighthizer called for a special joint committee meeting to start the process of revising the free trade agreement. According to the trade pact, a special joi

July 20, 2017

[News Focus] US’ currency manipulation ban looks to press KORUS FTA amendments

The US government this week released a 17-page summary of its proposal to renegotiate the North American Free Trade Agreement that included a ban on currency manipulation, which is also expected to impact looming talks on amending the Korea-US Free Trade Agreement. 　The Office of the United States Trade Representative on Monday issued the NAFTA amendment summary looking to reduce the US trade deficit by improving accessibility of its exports to Mexico and Canada. In particular, the USTR office a

July 20, 2017

Convenience stores see profit sliding as market gets more crowded

Per-store operating profit at convenience stores in South Korea fell in 2015 as the market became more crowded, government data showed Thursday. An average per-store operating profit at franchised convenience stores stood at 18.6 million won ($16,523) in 2015, down 17 percent from a year ago, according to the data by the Statistics Korea.The number of convenience stores, however, rose 12.7 percent on year to 29,628 at the end of 2015, the data showed.  Convenience stores accounted for 16.4

July 20, 2017

Korea to shift economic paradigm over low growth, polarization

South Korea's finance chief said Thursday that he will try to shift the country's economic paradigm to try to address chronic low growth and the deepening social divide.The country's central bank has lately raised its growth outlook for the gross domestic product to 2.8 percent for 2017, up 0.2 percentage point from its estimate released in April.The Bank of Korea said it expects the economy could grow 2.9 percent in 2018 on the back of global economic recovery and increased domestic spending. A

July 20, 2017