S. Korea swings to trade surplus in June; decline in exports eases

South Korea reported a trade surplus in June for the first time in 16 months, but its outbound shipments fell for the ninth consecutive month due mainly to weak demand for semiconductors, the industry ministry said Saturday. Outbound shipments fell 6 percent on-year to $54.24 billion last month, according to the data compiled by the Ministry of Trade, Industry and Energy. The decline came as exports of semiconductors, the country's key export item, sank 28 percent on falling demand and a

July 1, 2023

BOK sells net $2.1 billion in market-smoothing operations in Q1

The Bank of Korea said Friday it sold a net $2.1 billion in the first quarter of the year to help ease the decline of the local currency against the US dollar. The first-quarter dollar selling marks the seventh straight quarter of dollar selling for market smoothing operations since the third quarter of 2021, according to the central bank. The selling of US dollars in the first quarter came as the US Federal Reserve’s rate hikes sharply depreciated the value of the local currency, accordin

June 30, 2023

Tax revenue down W36.4tr through May

South Korea's tax revenue fell 36.4 trillion won ($27.6 billion) in the first five months of 2023 from a year earlier, data showed Friday, on weaker corporate performance and a slump in the local property market. Tax revenue amounted to 160.2 trillion won during the January-May period, down from 196.6 trillion won tallied a year earlier, according to the Ministry of Economy and Finance. In May alone, the government collected 26.2 trillion won in taxes, down 2.5 trillion won from the previou

June 30, 2023

Industrial output up in May, along with private spending, facility investment

South Korea's industrial output rose 1.3 percent in May from a month earlier, data showed Friday, with retail sales and facility investment gaining ground as well. The latest growth marks a sharp turnaround from a 1.3 percent on-month drop tallied in April, according to the data from Statistics Korea. The output in the mining, manufacturing, gas and electricity industries moved up 3.2 percent over the period on the back of the robust performance of the automobile and chip segments, which ad

June 30, 2023

Yoon's office welcomes S. Korea-Japan currency swap deal

The office of President Yoon Suk Yeol welcomed the resumption of a currency swap deal between South Korea and Japan on Thursday, saying it shows the two countries' relationship is improving also in the financial sphere. The US$10 billion currency swap deal was agreed between Finance Minister Choo Kyung-ho and his Japanese counterpart, Shunichi Suzuki, in Tokyo earlier in the day, restoring an arrangement that was terminated in 2015 amid strained bilateral ties. "The resumption of the

June 29, 2023

Korea, Japan revive $10b currency swap

South Korea and Japan agreed to resume a $10 billion currency swap deal after an eight-year suspension, showing bilateral economic ties are on a path of recovery. Finance Minister Choo Kyung-ho met with his Japanese counterpart Shunichi Suzuki in Tokyo on Thursday. It was the first time since 2016 for the top finance heads of Korea and Japan to hold an official one-on-one meeting. The new currency swap program will last three years and be based on the US dollar. A currency swap deal allows the e

June 29, 2023

S. Korea eyes W100tr of investment in free economic zones by 2032

South Korea seeks to attract 100 trillion won ($76.55 billion) of investment in the country's free economic zones and create 450,000 jobs there by 2032 to make them global hubs of advanced industries and businesses, the industry ministry said Thursday. Under the draft of the comprehensive 10-year development plan, the government aims to attract the investment from domestic and foreign entities in key leading sectors and build smart, eco-friendly international cities in cooperation with muni

June 29, 2023

Biz outlook worsens for July amid economic uncertainties

South Korea's business sentiment slightly fell for July amid continued uncertainties over the economy and monetary tightening here and abroad, a central bank poll showed Thursday. Local companies' business sentiment index for July came to 75, down from 76 tallied for the previous month, according to the survey by the Bank of Korea. The index measures corporate prospects for business conditions the following month. A reading below 100 means pessimists outnumber optimists. The worsened o

June 29, 2023

Retail sales up 5.7% in May on holidays

Retail sales in South Korea rose 5.7 percent on-year in May as consumers celebrated holidays amid the lifting of COVID-19 restrictions, the industry ministry said Wednesday. The combined sales of 25 major offline and online retailers came to 15 trillion won ($11.5 billion) last month, compared with 14.1 trillion won a year earlier, according to the data compiled by the Ministry of Trade, Industry and Energy. The on-year increase came after people resumed outdoor activities as they returned to pr

June 28, 2023

Consumer sentiment at 13-month high in June amid easing inflation

South Korea's consumer sentiment hit the highest in 13 months in June, as post-pandemic activities gathered pace and inflation eased, central bank data showed Wednesday. The composite consumer sentiment index stood at 100.7 in June, up from 98 the previous month, marking the fourth consecutive month of rise, according to the survey from the Bank of Korea. Also, the June reading is the highest since 102.9 in May last year. A reading above 100 means optimists outnumber pessimists. The central

June 28, 2023

S. Korea to focus on revitalizing exports, stabilizing prices in 2nd half

South Korea's finance minister said Wednesday the country's second-half economic policy will primarily focus on revitalizing exports and investment, along with further stabilizing prices. Finance Minister Choo Kyung-ho made the remark ahead of a closed-door meeting with economy-related ministers, as South Korea plans to announce the country's economic policy for the July-December period next week. "Over the first half, inflation has clearly slowed, and the job market has rema

June 28, 2023

Talks on minimum wage fall through as deadline looms

Talks on the minimum wage level for 2024 fell through Tuesday, two days before the deadline for the decision, after labor representatives walked out. The Minimum Wage Commission, which is composed of members spanning labor, business and the general public, was to its eighth round meeting to discuss the minimum hourly amount employers must pay their workers next year. But the meeting was cut short as labor representatives walked out of a meeting expressing their disapproval against the government

June 27, 2023

Posco International inks partnership with Danish firm on offshore wind power development

Posco International Corp. said Tuesday it has signed an agreement with a Danish investment company to work together on the development of offshore wind power and cooperate in other green businesses. The memorandum of agreement was signed with Copenhagen Infrastructure Partners on Monday, under which they will work to develop offshore wind power projects in Pohang, an industrial city located 262 kilometers southeast of Seoul, Posco International said in a release. They will work together to find

June 27, 2023

Choo remains wary of China's reopening

Finance Minister Choo Kyung-ho expressed his concern for the Korean economy as China’s reopening has had only a limited impact, falling below expectations. "The chip industry is yet to recover and the reopening of China, a country which we have a lot of trade with, has not shown much effect,” Choo said at a meeting held with the local business industry on Monday. Representatives of midsized businesses here attended the meeting, including Korea’s largest sauce maker Sempio

June 26, 2023

Weak yen deepens concerns over trade balance

While Korean tourists are flocking to Japan to take advantage of a record-low yen, concerns are deepening among businesses over capital outflow and export slump in the coming months. The Korean currency closed in the 910 won ($0.70) range against 100 Japanese yen on Friday. The won-yen exchange rate had stayed above the 1,000-won range between 2019 and 2022, but the figure continued to fall this year to an eight-year low of 897.49 won last week. The cheaper yen comes as the Bank of Japan sticks

June 25, 2023

Korea misses out again on MSCI upgrade

Korea failed to win developed market status on the global stock indices provided by Morgan Stanley, despite the hopes of being reclassified from an emerging market. Morgan Stanley, the index operator of Morgan Stanley Capital International, announced its 2023 Annual Market Classification Review results Thursday. The MSCI is a widely followed global stock market index. Korea will remain on the emerging market index without any changes, despite its efforts to move up to the developed market inde

June 23, 2023

Higher rates, economic slowdown, slump in real estate market pose risks to financial system: BOK report

South Korea's financial system remains relatively stable, but a variety of factors -- higher rates, a delay in economic recovery and an extended slump in the real estate market -- may pose risks to its stability, a central bank report said Wednesday. According to the report from the Bank of Korea, debt repayment burdens have soared in tandem with rising market rates, and borrowers will face heightened difficulties in repaying debts if economic recovery is delayed further than expected. A de

June 21, 2023

S. Korea to push for 'circular economy' of major resources

South Korea will push for a 'circular economy' of key resources, focusing on recycling in major industries, such as steel, petrochemicals and batteries, with the goal of cutting carbon emissions, the government said Wednesday. Under the drive named the "CE 9" project, the country will focus on seeking sustainable growth in nine segments: petrochemicals, steel, non-ferrous metals, batteries, electronics, fabrics, cars, machinery and cement, according to the Ministry of Trade,

June 21, 2023

Exports up 5.3% during first 20 days of June

South Korea's exports rose 5.3 percent on-year in the first 20 days of June, although shipments of semiconductors remained sluggish, data showed Wednesday. The country's outbound shipments reached $32.9 billion in the June 1-20 period, compared with $31.2 billion tallied a year earlier, according to the data from the Korea Customs Service. Imports fell 11.2 percent on-year to $34.5 billion during the period, resulting in a trade deficit of $1.6 billion. In May, South Korea's overa

June 21, 2023

Producer prices down for second month in May

South Korea's producer prices declined for the second consecutive month in May as a fall in the prices of industrial goods led the overall decline, offsetting a gain in the prices of agricultural products and utilities, central bank data showed Wednesday. The producer price index, a major barometer of consumer inflation, fell 0.3 percent in May from a month earlier, following a 0.1 percent on-month dip in April, according to the data from the Bank of Korea. From a year earlier, the index ro

June 21, 2023