S. Korea reviewing whether to further cut fuel taxes

South Korea is reviewing whether to further cut fuel taxes as inflationary pressure has built up amid surging energy costs, the finance minister said Thursday. The government is considering whether to lower fuel taxes by 30 percent from the current 20 percent as oil prices have spiked amid Russia's invasion of Ukraine. Early this month, the country decided to extend fuel tax cuts by three months until end-July in an effort to curb inflation. "We are in the final stage of reviewing whether t

March 31, 2022

Korea mulls bigger tax cut on fuel

SEJONG -- Economic policymakers are reportedly mapping out measures to ease the burden of households and microbusiness owners, as the nation’s gasoline and diesel prices have surged in the wake of spiking international crude oil prices. A core interest in the market is whether the Ministry of Economy and Finance will decide to expand the rate of tax cut on fuel from the current discount. A Finance Ministry official was quoted by a news provider on Wednesday as saying that the government

March 30, 2022

Asset managers' net up 67.1% on increased commission revenue

Asset management firms in South Korea saw their 2021 combined net earnings jump 67.1 percent from a year earlier thanks to a rise in commission revenue, data showed Wednesday. The combined net income of 348 firms came to 2.16 trillion won ($2.01 billion) last year compared with 1.3 trillion won a year earlier, according to the preliminary data compiled by the Financial Supervisory Service (FSS). The rise came mostly from an increase in commission revenue from their fund management and investment

March 30, 2022

IMF suggests to Korea to keep tight mortgage policy

SEJONG -- The International Monetary Fund has recommended South Korea keep practicing policies for tight mortgage regulations, showing a substantial difference from policy directions suggested by the incoming Yoon Suk-yeol administration. In a report on its yearly consultations with Korean officials, the IMF recommended that the government draw up “measures to improve housing supply.” But the US-based organization suggested that Korea keep on practicing policies of conducting tight

March 29, 2022

Will KDB bail out SsangYong Motor under new administration?

After another failed attempt by SsangYong Motor to find a new owner, now all eyes are on whether the state-run Korea Development Bank will change its mind and bail out the ailing carmaker under the incoming Yoon Suk-yeol administration. SsangYong Motor, the Korean unit of Indian auto giant Mahindra & Mahindra, on Monday called off its merger and acquisition talks with Edison Motors, a local electric bus maker, after Edison missed a March 25 deadline to pay for the deal price worth 304.8 bi

March 29, 2022

Over 70% of firms plan to hire new workers this year: poll

More than seven in 10 South Korean firms are planning to hire new employees this year amid an economic recovery, a poll showed Tuesday. The survey of 508 companies with 100 or more workers showed 72 percent of the respondents replying they have plans to recruit new employees this year. Some 17 percent answered they have no hiring plans for this year, with about 11 percent remaining undecided. Commissioned by the Korea Enterprises Federation (KEF), South Korea's largest business lobby by membersh

March 29, 2022

S. Korea aims to underpin recovery, strengthen fiscal health in 2023 budget

South Korea said Tuesday it plans to focus its fiscal policy for next year on propping up the economic recovery and strengthen fiscal soundness amid mounting national debt. Under the 2023 budget guidelines, approved by the Cabinet, the government plans to normalize COVID-19 related emergency spending to pre-pandemic levels and make efforts to secure fiscal space to support new policy goals by the incoming government, according to the Ministry of Economy and Finance. Government ministries and age

March 29, 2022

S. Korea to offer more tax incentives this year

Tax exemptions and incentives are expected to increase by 3.6 trillion won ($2.9 billion) this year as the government seeks to underpin the economic recovery and support vulnerable people, the finance ministry said Tuesday. The value of the tax exemptions and credit is estimated at 59.5 trillion won this year, up from the 55.9 trillion won tentatively provided last year, according to the Ministry of Economy and Finance. The percentage of tax subsidies against total tax revenue and tax benefits i

March 29, 2022

Central bank chief nominee underlines 'insight' on changes in int'l order to respond to rising uncertainty

The nominee for the new central bank chief on Tuesday underlined the importance of having "insight" on any changes in international order to better respond to rising external uncertainty. Rhee Chang-yong made the remarks sent to reporters before leaving Washington, D.C. for Seoul for a confirmation hearing. He was nominated as the new chief of the Bank of Korea last week while serving as director of the Asia and Pacific department at the Washington-based International Monetary Fund (IM

March 29, 2022

Consumer sentiment ticks up in March amid eased virus curbs

South Korea's consumer sentiment ticked up in March, as the country eased social distancing curbs to bolster spending and help pandemic-hit small merchants, central bank data showed Tuesday. The composite consumer sentiment index (CCSI) came to 103.2 in March, up 0.1 point from the previous month, according to data from the Bank of Korea. A reading above 100 means optimists outnumber pessimists. The index has been up and down in the last few months, affected by the severity of the spread of

March 29, 2022

IMF maintains 2022 growth outlook for S. Korean economy at 3%

The International Monetary Fund (IMF) on Tuesday maintained its 2022 growth outlook for South Korea at 3 percent as exports and investment will likely remain robust despite heightened economic uncertainty. The IMF's latest projection is the same as its forecast made in January. It lowered its 2023 growth outlook for Asia's fourth-largest economy to 2.8 percent from 2.9 percent. The Washington-based organization said South Korea's economic growth is projected to remain robust in 2022 and 2023 on

March 29, 2022

Yoon to reverse Moon’s housing policy

The Yoon Suk-yeol government will loosen key housing rules that the current Moon Jae-in government introduced two years ago, because they had all backfired, turning the country into one of the world’s hottest property market, Yoon’s transition team said Monday. “Our team was briefed by the Land Ministry and we’re clear on one thing: A rule change coming in stages,” said Won Il-hee, the team’s deputy spokesperson, referring to rules on “jeonse,” or

March 28, 2022

High energy prices weaken trade balance of Korea

SEJONG -- Spiraling international energy prices have been increasingly undermining the trade balance of South Korea, which posted deficit for the first 79 days of the year on a cumulative basis. According the Korea Customs Service, the nation’s imports of three major energy resources -- crude, gas and coal -- came to $38.4 billion during the period of Jan. 1 - March 20. This marked an 85.4 percent surge compared to the same period of 2021. A 69.8 percent increase was seen in imports of c

March 28, 2022

S. Korea's energy imports soar 85% this year

SEJONG -- South Korea's energy imports spiked more than 85 percent this year on soaring international prices, government data showed Monday, burdening the country's trade balance and consumer inflation. The country's imports of oil, natural gas and coal came to $38.49 billion from Jan. 1-March 20, up 85.4 percent from a year earlier, according to the data from the Korea Customs Service. Crude oil imports soared nearly 70 percent over the cited period, with those of natural gas and coal shooting

March 28, 2022

Yoon warns against tough rules on owners of multiple homes

President-elect Yoon Suk-yeol said Friday that the government should think carefully before enacting tougher rules than needed on those who own multiple homes, a group that has seen a dramatic hike in their taxes imposed by the Moon Jae-in government. Moon focused on heavier taxes and tighter mortgage curbs. “Some say we should carry on with crackdown on owners of multiple homes while others call for a return to market dynamics and let it run its course so those seeking homes find on

March 25, 2022

Korea, UK to coordinate on tax evasion

SEJONG -- The tax administrative agencies of South Korea and the UK have agreed to closely collaborate on exchanging information on how to track tax evasion by wealthy individuals. The two also discussed ways to share confidential information regarding offshore tax evasion, said the National Tax Service of Korea on Friday. The bilateral agreement came during a meeting between Korea’s NTS commissioner Kim Dae-ji and the UK’s HM Revenue & Customs First Permanent Secretary and Chi

March 25, 2022

S. Korea to invest over 20tr won in data, network, AI sectors

South Korea plans to invest more than 20 trillion won ($16.4 billion) in data, network and artificial intelligence (AI) sectors over the next three years in a bid to help nurture future-oriented industries, the finance minister said Friday. Along with fiscal spending, the government plans to provide support for research and development, and tax incentives for the development of the three sectors, called the D.N.A. industries, according to Finance Minister Hong Nam-ki. Hong said the development o

March 25, 2022

BOK chief nominee vows balanced policy against growing inflation risks

South Korea’s central bank chief nominee Rhee Chang-yong on Thursday pledged to carry out a balanced monetary policy as the nation deals with a growing economy and inflation risks. Rhee, director of the Asia and Pacific department at the International Monetary Fund, and tapped by outgoing President Moon Jae-in as the next Bank of Korea governor, expressed concerns of existing external uncertainties -- including the Russia-Ukraine crisis -- that have been fueling high inflationary pressure

March 24, 2022

FSS chief urges insurers to beef up loss reserves amid growing uncertainty

South Korea's financial regulator called Thursday for local insurers to increase their loan loss reserves as part of efforts to better cope with potential risks facing the industry amid increasing financial market uncertainty. Jeong Eun-bo, head of the Financial Supervisory Service (FSS), made the call in a meeting with top officials of insurance firms in Seoul and voiced worries that there are signs for a "perfect storm," citing the US's move to tighten monetary policy and the fallout

March 24, 2022

IMF director calls new BOK chief nominee an outstanding institutional leader

The head of the International Monetary Fund (IMF) on Wednesday hailed the nomination of a South Korean IMF official, Rhee Chang-yong, to be the head of South Korea's central bank, calling him an outstanding leader and champion of analytical rigor. IMF Managing Director Kristalina Georgieva said Rhee will step down as director of the Asia and Pacific Department (APD) early next month to be considered for his new role as governor of the Bank of Korea. "Since joining the Fund in February 2014,

March 24, 2022