Korea’s growth potential plummeting

Bank of Korea’s upward revision last week of its 2017 growth forecast for the Korean economy was overshadowed by its gloomier estimate of the growth potential of Asia’s fourth-largest economy.The central bank revised up its growth outlook for this year to 2.8 percent from the 2.6 percent estimate in April. It cited a rise in exports and facility investment, which is expected to be coupled with a gradual improvement in private consumption in the second half of the year.In a move that

July 17, 2017

[Monitor] Korea’s new power supply plan amibitious

According to a report on the new government’s new energy supply plan submitted to Rep. Choi Yeon-hye of the Liberty Korea Party, Korea’s target is similar to those of major countries and regions. But careful consideration of the effectiveness of the plan is needed considering the limited land space, a key factor in expanding sunlight and wind power generation, and the nation’s high reliance on energy imports, the lawmaker said.

July 17, 2017

Semiconductor export prices hit 30-month high

Korea’s export price index of semiconductors hit 48.79 last month, reaching the highest in more than two years, according to the Bank of Korea on Monday. 　Last month’s price index of semiconductors was a 14.2 percent increase compared to December last year and marked the highest since December 2014 when it stood at 49.05. According to the BOK, the price hike is attributed to global rising demand for Korean chips.　Exports of flash memory chips, widely used in smartphones, increased by

July 17, 2017

Seoulites’ daily work commute exceeds 2 hours

　It takes the average Korean worker more than 100 minutes to commute to and from work every day, according to data from Job Korea, an internet employment site, on Monday. For Seoul residents, the average daily commute was 2 hours and 15 minutes.　Job Korea surveyed 820 men and women and found that the average worker spent 101.1 minutes commuting to and from work. Those surveyed said their commute to work takes roughly 48.1 minutes, while heading home from work takes 53 minutes.　The survey also sh

July 17, 2017

Data indicate tariff elimination doesn't account for increased Korean car exports to US

South Korea's car exports to the United States have declined, rather than increased, after the two countries abolished import taxes last year as part of their free trade agreement, data showed Sunday.  The Korea Automobile Manufacturers Association published the analysis that rebuts a widespread belief in the US that lower tariffs increased Korean car sales in the country. It underlies the recent US calls for amendments to their five-year-old FTA. Korea's car exports to the US have increase

July 16, 2017

BOK eyes slowdown in 2018 facility investment

Growth of South Korea's corporate capital expenditures is expected to lose steam sharply in 2018 due to this year's big investments by major companies, the central bank said Sunday.Corporate investment in new plants and equipment is projected to expand 3 percent next year, compared to an estimated 9.5 percent surge for this year, according to the Bank of Korea.In its latest economic outlook released Thursday, the central bank said the country's capital expenditures probably jumped 14.1 percent i

July 16, 2017

Retailer confidence remains weak for Q3

A majority of South Korean retailers remain downbeat on their business conditions in the third quarter amid concerns over weak domestic demand and high household debt, a poll showed Sunday. The Korean Chamber of Commerce and Industry said its retail business survey index stood at 91 for the July-September period of the year, up from 90 from three months earlier.The figure is based on a poll of some 1,000 retail businesses in Seoul and six other major cities nationwide. A reading below 100 means

July 16, 2017

Finance minister vows measures for small businesses over minimum wage hike

South Korea's top economic policy chief said Sunday the government will promptly come up with measures to relieve smaller businesses of the burden from a decision to hike the minimum wage for next year. A panel representing the government, labor and management decided Saturday to raise the minimum hourly wage to 7,530 won ($6.64) for 2018, up 16.4 percent from this year. It is the highest on-year increase after a 16.6 percent hike in 2000.  "The decision will be a huge momentum for an

July 16, 2017

BOK expected to freeze key interest rate until mid-2018

South Korea's central bank is expected to maintain its key interest rate at a record low until mid-2018, according to an economist at Goldman Sachs on Saturday, after the Bank of Korea hinted that it may keep a dovish tone. Goldman Sachs economist Kwon Goo-hoon also expected the nation's inflation rate to slow down as prices of raw materials are predicted to fall off. This week, the central bank announced it will keep its policy rates at the present record-low of 1.25 percent for a 13th consecut

July 16, 2017

Businesses voice concerns over minimum wage hike

South Korea's corporate lobbies on Sunday expressed concerns over a decision to hike the minimum wage for next year, saying it could worsen business conditions and hamper job creation.  A panel representing the government, labor and management decided Saturday to increase the minimum hourly wage to 7,530 won ($6.64) for 2018, up 16.4 percent from this year. It is the highest on-year increase after a 16.6 percent hike in 2000. "It was a decision that ignored small and mid-sized business

July 16, 2017

Number of jobless college graduates hits record in Q2

The number of unemployed college graduates in South Korea hit a record in the second quarter amid tightened job markets for young adults, government data showed Saturday.The number of jobless people with a bachelor's degree and above reached 546,000 in the April-June period, up 11.8 percent from a year earlier, according to Statistics Korea.It marked the largest quarterly figure since 1999 when the agency changed its calculation standard for compiling jobless data.Unemployed people mean those wh

July 16, 2017

Korea preparing for talks to amend FTA with US

South Korea is preparing for upcoming talks to amend a free trade agreement with the United States, officials said Friday.On Wednesday (US time), the US Trade Representative requested that its South Korean counterpart hold a special joint committee to discuss the amendment and modification of the Korea-US FTA, which took effect in 2012.Moreover, US President Donald Trump said on the same day that the two countries have already started renegotiating the FTA, which he called a "horrible deal.

July 14, 2017

[Monitor] Elderly land more jobs than youths

More seniors found employment youths in the second quarter of this year, representing the shifting demographics in the country, data showed Friday.Statistics Korea said that of those who were in employment between April and June, 4.25 million were aged 60 and over, compared to 4.03 million aged 15-29.The number for over-60s is the highest on record, and takes up 15.9 percent of all employed people.Commenting that higher employment of the elderly cannot be perceived all positive, Statistics Korea

July 14, 2017

Trump says negotiations already started on 'horrible' free trade

US President Donald Trump has called the free trade agreement with South Korea a "horrible deal," saying that the two have already started renegotiations on it, a transcript of his recent meeting with reporters showed Friday.Trump made the remarks off the record in a conversation on Wednesday (US time) with reporters on an airplane bound for France where he was to hold a summit with French President Emmanuel Macron, but they were later disclosed by the White House."Somebody said,

July 14, 2017

Korea cautious on US’ request for FTA amendment

The South Korean government on Thursday reacted cautiously to the US’ formal request to hold a joint meeting to revise the Korea-US free trade agreement within the next month, saying the timeline may not be realistically possible and that searching for the real cause of the US’ trade deficit was a priority. 　The Ministry of Trade, Industry and Energy also said that it would call on its US counterpart to first review the root causes of the trade imbalance between the two countries. Th

July 13, 2017

[News Focus] Korean auto, steelmakers uneasy over US’ demand for FTA revision

An official demand by US trade representatives to amend a bilateral free trade agreement with South Korea unnerved major exporters here Thursday over the potential impact on their businesses.Cars and steel products made in Korea are expected to be up for discussion first, as US President Donald Trump views the FTA as having benefitted such local companies the most, not those in the US. The US has also been slapping anti-dumping tariffs on Korean steel products, saying their entry into the US mar

July 13, 2017

Petroleum exports soar 36% in H1

South Korea's exports of petroleum products and refined oils rose sharply in the first six months of the year on rising crude prices, customs data showed Thursday.A total of $16.69 billion worth of petroleum products were shipped overseas during the January-June period, up 36.1 percent from a year earlier, according to the data by the Korea Customs Service. The volume of such exported goods also rose 1.7 percent to 32.93 million tons over the cited period.Asia's fourth-largest economy saw its en

July 13, 2017

BOK holds key rate steady at 1.25% in July

South Korea's central bank on Thursday held its key rate steady for July to support the country's growth. In a widely expected move, the monetary policy board of the Bank of Korea voted to keep the key rate at 1.25 percent, extending its wait-and-see approach for the 13th consecutive month.In June last year, South Korea's central bank made a surprise rate cut, citing a need to stimulate the lackluster economy amid a prolonged economic slowdown. (Yonhap)

July 13, 2017

Service sector key to boosting employment

A conspicuous change in the country’s employment structure over the past decade is that the proportion taken up by the service and distribution industries has continued to grow, just as the manufacturing and construction sectors’ share has fallen.A recent study by a local economic research institute, based on data from all listed Korean firms, showed the number of service and distribution jobs rose by 153,000 from 2007 to 2016, expanding their share of total employment by 2.5 percent

July 12, 2017

Korea’s weak jobs data continues

The number of newly employed workers in June saw the smallest increase in five months, according to data released by Statistics Korea on Wednesday. 　Last month, the number of employed people hit 26.86 million. While the figure marks a 301,000 increase compared to a year earlier, it also represents the lowest monthly increase since January’s 243,000.　The country’s unemployment rate for June was 3.8 percent, an increase of 0.2 percentage point from the same month last year. 　The s

July 12, 2017