Korea to extend $1b loan to Philippine leader's infrastructure program

South Korea will extend a soft loan of $1 billion to a massive infrastructure development plan in the Philippines over the coming six years, industry sources said Monday.The Export-Import Bank of Korea (Korea Eximbank) will provide lower-interest, long-term loans under the state-run economic development cooperation fund  President Rodrigo Duterte is planning to spend $168 billion on big-ticket items such as railways and ports over the next six years as part of his ambitious socioeconomic ag

June 12, 2017

Korea unlikely to achieve 3% growth this year

South Korea is unlikely to achieve economic growth of 3 percent this year, according to analysts and foreign brokerages on Monday, as mounting household debt crimps private consumption. The Bank of Korea has predicted that the economy would grow 2.6 percent this year, compared to a 2.8-percent expansion last year.Japanese investment bank Nomura Securities, in a research note released last Tuesday, raised its forecast for South Korea's economic growth this year to 2.7 percent, from a previous for

June 12, 2017

Govt. seeks 6% expansion in 2018 budget

Government ministries and other public entities are hoping to boost their annual spending by 6 percent next year to better meet social welfare, education, and research and development outlays, the finance ministry said Monday.According to the Ministry of Strategy and Finance, government offices have submitted preliminary requests for their 2018 budget that totaled 424.5 trillion won ($377.1 billion), compared with 400.5 trillion won earmarked for this year. The request, if finalized, will mark t

June 12, 2017

Korea’s household debt-to-GDP ratio rises 3rd-fastest on-year

South Korea showed the third-highest rise of household debt compared to gross domestic product on-year at the end of last year out of the 43 nations surveyed by the Bank for International Settlements, data showed Sunday.South Korea’s household debt-to-GDP ratio came to 92.8 percent as of the fourth quarter of 2016, up 4.7 percentage points compared to the previous year, according to data from the Basel-based financial institution.Before South Korea came Norway, which rose at the steepest r

June 11, 2017

Korea's exports plunge 12.2% in first 10 days of June

South Korea's exports plunged 12.2 percent in the first 10 days of June from a year earlier, the latest customs data showed Sunday, after posting seventh straight months of growth.Total outbound shipments reached $12.2 billion during the cited period, down 12.2 percent from the same period last year, according to the findings compiled by the Korea Customs Service. The decrease comes partly on the back of huge increases of ships exported in early June of last year, the agency said."The numbe

June 11, 2017

Korea ranks 5th among OECD states in Q1 food price growth

South Korea ranked fifth among the 35 Organization for Economic Cooperation and Development countries in the growth of food prices in the first quarter, OECD data showed Saturday. In the January-March period, Korean food prices jumped 3.9 percent from a quarter earlier, following Turkey with 9.7 percent growth, Latvia's 5.9 percent, the Czech Republic's 4.1 percent and Estonia's 4 percent, the data showed.  Local officials say the spread of avian influenza and the outbreak of foot-and-mouth

June 11, 2017

Aging society to fuel growth in agriculture-fishery sector, health care services

South Korea's rapidly aging society is expected to fuel growth in the country's agricultural and fisheries sector, and health care services, a local think tank said Sunday, calling on the country to better prepare for changes down the road.According to the report by the Korea Institute for Industrial Economics and Trade, the number of local households whose head is aged over 60 will jump from 28.7 percent as of last year to 40.7 percent in 2026 and reach 57.8 percent in 2045. The state-run

June 11, 2017

Korea expected to be 15th-largest rice producer in 2017: FAO

 South Korea is expected to become the world's 15th largest producer of rice this year, a report by the United Nations food organization showed Sunday.According to the Food Outlook by Food and Agriculture Organization, South Korea is set to produce 4.1 million tons of rice this year, down 3.1 percent from 4.2 million tons in 2016.The total should be equivalent to 0.8 percent of all rice to be harvested this year around the world that could reach 502.6 million tons, the report said. Numbers

June 11, 2017

[Monitor] Unemployment credit applicants surpass 300,000

The number of applicants for “unemployment credit” has surpassed 300,000 in the past 10 months since its launch last August, said the National Pension Service Friday.The unemployment credit is a program for job-seekers in which the government pays up to 75 percent of their national pension fees. This enables the jobless to maximize the amount of pension they receive in the future since their unemployment period is recognized as the duration of entitlement to the national pension just

June 9, 2017

Korea hard pressed to achieve 3% growth: BOK board member

South Korea is expected to face difficulty in achieving an annual economic growth of 3 percent in the coming years as consumption is crimped by the aging population and rising household debts, a Bank of Korea board member said Friday.Cho Dong-chul also voiced worries that the country's economy could move in the direction of the long-drawn slump seen by Japan in the 1990s.The central bank has predicted that the nation's economy could grow 2.6 percent this year, compared with 2.8 percent growth re

June 9, 2017

Korea's exports remain upbeat, gains weighed down by lukewarm domestic demand

An upturn in global trade and exports has been helping the South Korean economy recover to some extent, but the gains are weighed down by flaccid domestic demand, including investment and private consumption, a government report said Friday."The South Korean economy has been on a upside cycle thanks to a steady rise in outbound shipments, while the domestic side is showing weak signs of recovery due to production and investment adjustment," the finance ministry said in its monthly econ

June 9, 2017

[Monitor] OECD retains 2.6% growth for this year

South Korea‘s economy is expected to grow 2.6 percent this year and 2.8 percent next year, according to the Organization for Economic Cooperation and Development on Wednesday.This year’s forecast has remained unchanged, taking into account the country‘s improving exports and consumer sentiment.Next year’s forecast has been revised down from its initial projection of 3 percent seven months ago.The OECD said that the faster world trade leading to a boost in exports and busi

June 8, 2017

Positive economic data seen in 1st month of Moon administration

Although tied down by political hurdles and security and diplomatic challenges, the liberal Moon Jae-in administration is finishing its first month in office with rosier economic indications than those under the former Park Geun-hye administration, various data showed Thursday.　The benchmark Korea Composite Stock Price Index jumped 2.94 percent to 2,360.14 as of Wednesday’s close from May 8, the day before the presidential election. The Kospi’s nearly 3 percent rise in the first

June 8, 2017

Korea signs multilateral treaty to prevent offshore tax erosion

South Korea has signed a multilateral treaty to participate in the international movement to prevent offshore tax erosion, the finance ministry here said Thursday.Ambassador Yoon Jong-won to the Organization for Economic Cooperation and Development inked the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting on Wednesday in Paris, according to the Ministry of Strategy and Finance.As of Wednesday, 68 countries, including 33 OECD members, h

June 8, 2017

Korean economy maintains moderate recovery momentum

The South Korean economy has been on a modest recovery path thanks to brisk exports and investment despite a slight downturn in industrial output, a state-run think tank said Thursday."The Korean economy maintained a moderate improvement led by exports and investment demand, although industrial output growth moderated slightly," the Korea Development Institute said in its monthly evaluation of the country's economic conditions. Triggered by an upturn in global trade, Asia's fourth-larg

June 8, 2017

Seoul urged to shift to consumer, services goods in China exports: report

South Korea needs to export more services and consumer goods than intermediary products to China to keep up with the Beijing government's drive to boost domestic consumption, a report said Thursday.Intermediary goods accounted for 78.1 percent of South Korea's total exports to China in 2014, according to the report by the Korea Center for International Finance. The report feared any failure by South Korea to shift to consumer goods and services will eventually undermine the country's outbound sh

June 8, 2017

Koreans hold one of gloomiest views on economy: survey

South Koreans have one of the gloomiest economic views in the world, with 84 percent saying the fourth-largest Asian economy is in bad shape, a US survey showed Wednesday.South Korea had the second-most negative views, with only 15 percent saying their economy is in good condition, the Pew Research survey found. Greece had the most downbeat views, with 98 percent responding negatively about the country's economy.The survey polled 34,788 respondents in 32 countries from Feb. 16 to April 28."

June 8, 2017

OECD Economic Outlook predicts 2.8% GDP growth for Korea next year

The OECD Economic Outlook has predicted Korea’s gross domestic product will grow from 2.6 percent to 2.8 percent in 2018, according to its latest report released Wednesday. The OECD Economic Outlook is the Organization for Economic Cooperation and Development’s twice-yearly analysis of major economic trends and prospects.“GDP growth declined in the latter part of 2016 in the context of political uncertainty, corporate restructuring and a drop in exports,” the report said.

June 7, 2017

Study shows low retention of jobs created by public subsidies

Following President Moon Jae-in’s initiative for his 100-day plan for job creation, a recent study argued that the government’s short-term financial support is estimated to be ineffective in the long-run in terms of job retention. The new administration’s job creation plan was established to address and promote job growth as one of the president’s highest priorities in his first 100 days in office. On Monday, the government announced an 11.2 trillion won ($9.99 billion) s

June 7, 2017