S. Korean economy feared to slow down amid external uncertainty: govt.

The South Korean economy is feared to slow down, as inflationary pressure has mounted and export growth could lose steam amid deteriorating external economic conditions, the finance ministry said Wednesday. Market volatility and global economic downside risks further increased, led by the Federal Reserve's fast rate hikes, China's economic slowdown, and the protracted war between Russia and Ukraine, the ministry said in its monthly economic assessment report, called the Green Book. "Domesti

July 20, 2022

Major firms' economic contribution jumps 20% over past 9 years

Major companies in South Korea have seen their total economic contribution soar 20 percent over the past nine years thanks to their robust growth, a corporate tracker said Wednesday. The value of economic contribution created by the country's top 100 firms by sales came to 1,238 trillion won ($950 billion) last year, up 206.5 trillion won from 2012, according to CEO Score. Economic contribution refers to the economic value of a corporation's business activities shared among such interested parti

July 20, 2022

S. Korea's dependence on Japanese materials hits all-time low in H1

South Korea's dependence on Japanese materials and parts fell to an all-time low in the first half of this year, three years after Tokyo's control of exports of key materials bound for Seoul, data showed Wednesday. Imports of Japanese materials, parts and equipment came to US$20.07 billion during the January-June period, accounting for 15.4 percent of South Korea's overall purchase of those goods, according to the data from the Ministry of Trade, Industry and Energy. It is the low

July 20, 2022

Work-life balance key to women leadership: Yellen

US Treasury Secretary Janet Yellen said work-life balance plays a key role in shaping a work environment that is appealing to women, who she described as still underrepresented in workplaces, at a meeting with the Bank of Korea’s female workers held Tuesday in Seoul. “Work-life balance is a tremendous problem. I guess it’s a huge problem here, too,” Yellen said, describing having a family while working in challenging jobs as a hurdle for women pursuing a career. The meet

July 19, 2022

Youth employment jumps over past year amid pandemic

South Korea's youth employment rose sharply in May from a year earlier despite the coronavirus pandemic, government data showed Tuesday. The number of employed young people aged 15-29 reached 4.1 million in May, up 196,000 from a year earlier, according to the data released by Statistics Korea. Their employment rate came to 47.8 percent, up 3.4 percentage points from a year earlier. Of the country's youth population of 8.59 million, 51.5 percent were economically active in May, up 2.5

July 19, 2022

FSC chief highlights need to ease restrictions preventing industrial businesses from owning banks

South Korea's top financial regulator said Tuesday it is necessary to ease a rule that restricts industrial businesses from owning banks, saying that such deregulation could generate mega players like BTS in the financial sector. The government restricts industrial capital from being used to purchase stakes in banks and financial institutions in a bid to make it hard for business owners to take advantage of them as private coffers. Under the rule, businesses can own up to a 4 percent stake

July 19, 2022

Regulator holds firm on debt relief plan

South Korea’s top financial regulator said Monday that its plan to help low-income earners reduce their debt burdens does not encourage reckless investments in stocks or real estate, amid criticism that young Koreans who have made losses from such investments could repay debts with taxpayers’ money. “We’re not helping those who have had to cut their losses on stocks and cryptocurrencies to pay for loans (taken out for investment),” Kim Joo-hyun, chairman of the Fin

July 18, 2022

Tally for economically inactive seniors surges 96% since 2002

SEJONG -- The number of Koreans who are not engaged in any economic activities after being classified as seniors has surged almost 100 percent in two decades, state data showed Monday. According to Statistics Korea, the tally for economically inactive people due to old age reached a record-high of 2.48 million as of June. “Old age” refers to those aged 65 and over, according to stipulations from the United Nations. The figure was a surge by 96.8 percent, compared to 1.26 million po

July 18, 2022

Overseas stock dealings dip in H1 on weak equity markets

South Koreans' transactions of foreign stocks fell sharply in the first half of the year from six months earlier on bearish overseas equity markets, with their bond trading edging up, data showed Monday. Local investors' transactions of overseas shares were valued at $167.99 billion in the January-June period, down 12 percent from the second half of 2021, according to the data from the Korea Securities Depository (KSD). The figure covers overseas stock purchases and sales made through

July 18, 2022

S. Korea to push to exempt taxes on foreigners' investment in govt. bonds

South Korea will push to exempt taxes on interest income and capital gains from foreigners' investment in government bonds and monetary stabilization bonds in a bid to help stabilize the debt market, the finance minister has said. Finance Minister Choo Kyung-ho made the remarks on the details of the government's planned tax code revision at a meeting with reporters Saturday (local time) in Bali on the sidelines of a Group of 20 (G-20) gathering of finance chiefs. "The government p

July 17, 2022

Korean won sinks to 13-year low against US dollar

The South Korean currency fell below the 1,320-won mark against the US dollar for the first time in more than 13 years during morning trading on Friday, with analysts warning that the won could lose further value. The won was trading at 1,326 won against the greenback at around 2:30 p.m., after breaching the 1,320 won-mark per dollar in the morning for the first time since April 30, 2009. The won’s plummeting value came with the weakening of the euro and the Chinese yuan against the s

July 15, 2022

Korea to provide W68tr in policy financing to small merchants, young borrowers

SEJONG -- The government will offer policy financing worth 68 trillion won ($51 billion) to small merchants and the underprivileged on a step-by-step basis, starting from the end of July, the Finance Ministry said Friday. Government-initiated low-interest loans will be divided: 43 trillion won will go to small merchants and 25 trillion won to young people and low income households. “The government has set consumer prices and stability in people’s living conditions as the primary ad

July 15, 2022

Policy financing in store for vulnerable people amid rising rates

South Korea said Friday it aims to provide policy financing worth 68.3 trillion won ($51.4 billion) this year to small merchants and other vulnerable people in a bid to help ease the burden of rising borrowing costs. The move is a follow-up to the 125 trillion-won measure that was unveiled Thursday to support people troubled by high inflation and hikes in interest rates amid the central bank's monetary tightening. The government plans to offer policy financing worth 43 trillion won to small

July 15, 2022

FDI pledges to S. Korea fall 15.6% in H1 amid global uncertainties

Foreign direct investment (FDI) pledges to South Korea fell 15.6 percent in the first half of this year from a year earlier amid global uncertainties caused by the prolonged crisis surrounding Ukraine and surging inflation, the industry ministry said Friday. The country received $11.09 billion worth of FDI commitments during the first six months of this year, compared with $13.14 billion logged a year earlier, when the amount hit an all-time high for any first halves, according to the Ministry o

July 15, 2022

Auto exports hit 8-yr high in 1st half on popularity of eco-friendly cars

South Korea's car exports reached an eight-year high in the first half of this year on the back of global popularity of eco-friendly cars, data showed Friday. The value of outbound shipments of automobiles grew 3.2 percent on-year to $24.35 billion during the January-June period, which marked the highest figure since 2014, when the figure came to $25.23 billion, according to the data from the Ministry of Trade, Industry and Energy. In terms of volume, a total of 1.07 million vehicles were s

July 15, 2022

Sales of short-term bonds rise 11.3 pct in H1

Sales of short-term corporate bonds in South Korea climbed more than 11 percent in the first half of 2022 from a year earlier on a spike in securitized debt issuance, data showed Friday. Local firms floated 642.7 trillion won ($486 billion) worth of bonds maturing within one year in the January-June period, up 11.3 percent a year earlier, according to the data from the Korea Securities Depository. Compared with the second half of last year, however, the amount was down 3.5 percent. Short-term bo

July 15, 2022

Import prices up for 2nd month in June on high energy, raw material costs

South Korea's import prices grew for the second straight month in June as oil and raw material prices remained high, central bank data showed Friday. The import price index edged up 0.5 percent in June from a month earlier, according to the preliminary data from the Bank of Korea (BOK). This marked the second straight month of on-month increase following a revised rise of 3.8 percent in May. Compared with a year earlier, the index jumped 33.6 percent, the 16th consecutive month of on-year increa

July 15, 2022

Yoon vows debt relief for low earners after rate hike

President Yoon Suk-yeol pledged Thursday to help low-income earners with their mounting debt burdens, a day after the central bank made its biggest single rate hike to tame persistent inflation, at a weekly meeting he convened for the second time. The meetings deal with pressing economic issues affecting what they call a “vulnerable group” of self-employed people, small business owners and those fresh out of college. Policymakers discussed inflation last week. This week, they unveil

July 14, 2022

S. Korea's fiscal deficit worsens through May

South Korea's fiscal deficit rose 22.7 trillion won ($17.4 billion) in the first five months of this year from a year ago due largely to increased government spending aimed at tackling the pandemic, data showed Thursday. The managed fiscal balance, a key gauge of fiscal health calculated on a stricter term, posted a deficit of 71.2 trillion won in the January-May period, larger than a shortfall of 48.5 trillion won a year earlier, according to the finance ministry. The larger deficit came a

July 14, 2022

BOK chief to join G-20 meeting in Bali, discuss inflation, other global issues

Bank of Korea (BOK) Gov. Rhee Chang-yong will take part in a Group of 20 (G-20) meeting of finance ministers and top central bankers this week in Indonesia, his office said Thursday. Rhee will join the G-20 meeting scheduled to be held from Friday to Saturday in Bali, and discuss key economic and financial issues with his counterparts from advanced and key emerging economies, according to the BOK. During the meeting, Rhee and other participants are expected to discuss global inflation, resilienc

July 14, 2022