S. Korea rolls out measures to tame inflation, stabilize living conditions

The finance ministry on Monday unveiled a set of measures to curb inflation and stabilize people's living conditions, including the removal of import duties on key foodstuffs, amid concerns that mounting price pressure could hamper economic growth. Under the measures, the government plans to lift import tariffs on seven key food ingredients, such as cooking oil, pork and flour, until the end of this year. The government will cut value-added taxes on imports of coffee and cocoa beans until 2

May 30, 2022

Ratio of renewable energy-based power generation hits new high in 2021

The amount of electricity generated from renewable energy in South Korea touched an all-time high in 2021 on government efforts to cut greenhouse gas emissions, data showed Monday. Electricity produced from renewable energy sources came to 43,085 gigawatt hours last year, accounting for 7.5 percent of the country's total power generation, according to the state-run Korea Electric Power Corp. The ratio was three times higher than that a decade ago. It marked the first time for the share to s

May 30, 2022

Govt. to expand subsidies to diesel truck, taxi drivers next month

The government will provide more subsidies to cargo truck drivers and others using diesel vehicles as part of efforts to ease their burden from rising fuel costs, the transport ministry said Monday. The average retail price of diesel in South Korea soared to over 2,000 won ($1.59) per liter last week, up from around 1,364 won in January, due to tight supply caused by the war in Ukraine. It also outstripped gasoline prices for the first time in 14 years. Under the revision to oil subsidy regulati

May 30, 2022

BOK rate hike to weigh on self-employed

Self-employed workers will likely bear the brunt of the Bank of Korea’s rate hike on Thursday, the fifth raise since August last year from the central bank’s record low of 0.5 percent amid persistent inflation, a credit ratings agency said Friday in a report. The self-employed in 2020 spent 46 percent of their annual income amid falling earnings to settle debt while households used 34 percent on average to do the same, according to Korea Investors Service. 

May 27, 2022

Fiscal chief signals drastic deregulations in financial sector

SEJONG -- The nation’s fiscal chief has expressed his willingness to enact drastic deregulations and introduce innovations into the financial services sector during the Yoon Suk-yeol administration. Deputy Prime Minister and Finance Minister Choo Kyung-ho said Friday that the government “would eliminate unnecessary and excessive regulations in the financial sector drastically, with the exception of (regulations) for financial soundness and protection of (financial) consumers.”

May 27, 2022

BOK raises its interest rate to 1.75% to curb inflation

South Korea’s central bank on Thursday raised its benchmark interest rate by a quarter percentage point to 1.75 percent and hinted at further rate hikes to come to fend off the country’s highest inflation spike in 14 years. In the first rate-setting meeting presided by the new Bank of Korea Gov. Rhee Chang-yong, the six-member monetary policy board unanimously voted to carry out its fifth pandemic-era rate hike since August last year, when it decided to end 15 months of its record-l

May 26, 2022

Inflation growth may exceed 5% in May: govt. official

South Korea plans to announce a set of measures to tame inflationary pressure and stabilize people's livelihoods next week amid the prospect that the growth of consumer prices could top 5 percent, a senior government official said Thursday. The country faces the urgency to stabilize prices of food and other items closely linked to people's lives, according to First Vice Finance Minister Bang Ki-sun. "Some experts forecast consumer inflation could exceed 5 percent in May, accelerat

May 26, 2022

Korea mulls 50-year mortgages for newlyweds

The Yoon Suk-yeol government is considering extending mortgage loan maturity terms for newlyweds and young Koreans aged 19-39 as part of efforts to follow through on a pledge to help young people acquire their homes, amid runaway housing prices in the Seoul metropolitan area. Under the new plan, young people would be able to repay their loan over 50 years, instead of 40 years, the longest repayment period currently offered to newlyweds and Koreans in that age group. “The 50-year loan sc

May 25, 2022

S. Korea-led intl. association on hydrogen industry kicks off

South Korea, the United States and 16 other countries on Wednesday launched an association meant to boost cooperation in the development of the hydrogen industry, Seoul's industry ministry said. The member countries of the Global Hydrogen Industrial Association Alliance shared the current status of their hydrogen industry and related policy measures at an inaugural meeting at a Seoul hotel. The South Korea-led alliance will set up a network and data hub in the hydrogen field to boost cooper

May 25, 2022

Consumption of gasoline, diesel tanks 18% in April

South Korea's consumption of gasoline and diesel sank more than 18 percent in April from a year earlier due to high international crude prices, data showed Wednesday. Asia's fourth-largest economy consumed a combined 17.4 million barrels of gas and diesel last month, down 18.3 percent from a year earlier, according to the data from the state-run Korea National Oil Corp. It was also down 5.8 percent from 18.4 million barrels the previous month. Gasoline and diesel consumption had been o

May 25, 2022

Inflation outlook highest in 9 years ahead of rate hike

South Korean households’ outlook for inflation in the next 12 months rose this month to the highest level in nine years and seven months, according to a Bank of Korea survey released Tuesday ahead of its rate decision Thursday. Survey respondents forecast inflation to average 3.3 percent, up from the previous record high of 3.1 percent in April. In a monthly survey of 2,500 households conducted May 10-17, the BOK said consumers have braced for higher borrowing costs ahead, wit

May 24, 2022

Exports by large firms grow at fastest pace in 2021 amid economic recovery

Exports by South Korean large companies rose at the fastest pace on record in 2021 as demand for chips and autos remained robust amid the global economic recovery, data showed Tuesday. Overseas shipments by the country's 875 large exporters were valued at $415.8 billion in 2021, up 29.5 percent from the previous year, according to the data from Statistics Korea and the Korea Customs Service. It marked the fastest on-year gain since 2015, when the agencies began compiling related data. The a

May 24, 2022

BOK surely to raise key rate again this week amid inflation woes: poll

Almost all market watchers expect the Bank of Korea (BOK) will raise its key interest rate this week to combat inflation and align with monetary tightening in major economies, a poll showed Tuesday. According to the poll of 100 bond market experts conducted by the Korea Financial Investment Association, 94 percent said the central bank will hike the interest rate at a rate-setting meeting to be held Thursday. The ratio was much higher than the 50 percent that expected a rate hike in a similar Ap

May 24, 2022

Number of executives at major firms rises 4.5% in Q1

The number of executives at South Korea's major firms expanded 4.5 percent on-year in the first quarter of the year despite the coronavirus pandemic, a corporate tracker said Tuesday. A total of 353 leading companies in Asia's fourth-largest economy had a combined 14,418 executives as of end-March this year, up from 13,803 a year earlier, according to the Leaders Index. The figure covers companies out of the country's top 500 corporations by sales that have disclosed their first-q

May 24, 2022

Policymakers seek drastic cut in real estate tax

SEJONG -- The Yoon Suk-yeol administration is considering easing the comprehensive real estate tax rate for home owners holding a single unit to a considerable extent, starting this year. According to officials at the Ministry of Economy and Finance, the government is moving to scale back their tax burden to the level in 2020. Deputy Prime Minister and Finance Minister Choo Kyung-ho was quoted by local media on May 12 saying that, “(taxpayers) have shouldered a three or four-fold burden

May 23, 2022

Foreign banks in S. Korea see profits down 4.5% in 2021

Foreign bank branches in South Korea saw their combined net profit down 4.5 percent in 2021 due to a rise in securities-linked losses amid market downswings, data showed Monday. The combined net income of 35 foreign lenders' local branches stood at 1.15 trillion won ($904.4 million) in the fiscal year of 2021, down 53.5 billion won from a year earlier, according to the data from the Financial Supervisory Service (FSS). Those branches either closed their books for the fiscal of year 2021 in

May 23, 2022

Foreign currency deposits down for 2nd month in April

Foreign currency deposits at banks in South Korea shrank for the second straight month in April due in part to companies' increased withdrawals to pay for investments and imports, central bank data showed Monday. Residents' outstanding foreign currency-denominated deposits had reached $86.99 billion as of end-April, down $5.72 billion from the previous month, according to the data from the Bank of Korea (BOK). Residents include local citizens, companies, foreigners staying here for mor

May 23, 2022

Exports up 24% during first 20 days of May

South Korea's exports rose 24.1 percent in the first 20 days of May from a year earlier on robust demand for chips and petroleum products, but the country suffered a trade deficit on high fuel costs, customs data showed Monday. The country's outbound shipments stood at $38.6 billion in the May 1-20 period, compared with $31.1 billion a year earlier, according to the data from the Korea Customs Service. Imports jumped 37.8 percent on-year to $43.4 billion during the cited period, result

May 23, 2022

BOK likely to lift rate to tame rapid inflation: economists

The Bank of Korea is likely to raise the benchmark rate by 25 basis points to 1.75 percent this Thursday as Asia’s fourth-largest economy combats persistent inflation and shrinking growth, according to eight out of nine economists polled by The Korea Herald. But the central bank, which usually changes its rate in 25-basis point increments, is unlikely to back a sudden 50-basis point raise because there’s ample room left for more hikes in the latter half of this year when inflation c

May 22, 2022

S. Korea to face 'grave' inflation risk for time being: official

South Korea is expected to face a "grave" risk from rising inflation for the time being, as the recovery of consumption will further add price pressure amid high energy costs, a senior government official said Friday. The government plans to beef up its monitoring of key items, including cooking oil and petroleum products, in a bid to ease the burden from elevated inflation, according to First Vice Finance Minister Bang Ki-sun. "Price situations facing the South Korean economy are

May 20, 2022