Korea wary of ‘long-term’ tension involving Ukraine

SEJONG -- A longer-than-expected standoff between Ukraine and Russia involving a possible war could deal a severe blow to the Korean economy, Vice Finance Minister Lee Eog-weon said Wednesday. During a task force meeting in Seoul, Lee said that particular impacts have yet to be seen in the local market at the current stage, despite the escalating tension between the two countries. “But (worsening geopolitical risk) over a long period would have negative effects on the nation’s over

Feb. 23, 2022

S. Korea's overseas financial assets hit all-time high in 2021

South Korea's overseas financial assets reached an all-time high last year on the back of increased stock investments and investment returns, central bank data showed Wednesday. The country's external financial assets came to $2.16 trillion as of end-December, up $198.2 billion from a year earlier, according to preliminary data from the Bank of Korea (BOK). The net international investment position also hit a record high of $637.9 billion at the end of December, up from $466.1 billion the previo

Feb. 23, 2022

Housing prices on downward trend after peak: finance minister

South Korea's finance minister said Wednesday the country's housing prices are on a downward trend after being stabilized amid the central bank's rate hikes and tighter lending rules. Minister Hong Nam-ki said the government will implement its real estate policy with a focus on expanding the home supply and rooting out property speculation in a bid to support a fall in home prices. "Stabilizing trends of housing prices have become more evident, and price falls have been accelerating,"

Feb. 23, 2022

Business sentiment rises for March but stays below par

South Korean's business sentiment improved slightly for March but remained below par amid the fast spread of the COVID-19 omicron variant, a central bank poll showed Wednesday. The business sentiment index (BSI) for local companies came to 88 for March, up three points from the previous month, according to the survey by the Bank of Korea (BOK). The BSI for manufacturers climbed to 93 from 90 over the cited period, and that for non-manufacturing businesses also gained two points to 84. The index

Feb. 23, 2022

Majority of households forecast fall in home prices: BOK

SEJONG -- At least 1 in 2 South Koreans were found to have predicted home prices to go down in the coming year, amid a variety of tight regulations and rising interest rates, data from the Bank of Korea showed Tuesday. According to the monthly consumer survey conducted by BOK, the index for households’ outlook on housing prices sat at 97 in February, down three points from a month earlier. The index indicates that the number of households predicting a decline in housing prices was higher

Feb. 22, 2022

Household debt hits fresh high in Q4, but growth slows

South Korea's household debt reached a fresh high in the fourth quarter of last year, but it grew at a slower pace from the three months earlier amid tightened lending rules, central bank data showed Tuesday. Household credit came to 1,862.1 trillion won ($1.56 trillion) as of end-December, up 1 percent, or 19.1 trillion won, from three months earlier, according to the data from the Bank of Korea (BOK). The gain slowed from a 1.9 percent on-quarter increase in the third quarter. Household credit

Feb. 22, 2022

Average monthly wage climbs to W3.2m in 2020

SEJONG -- The average monthly salary for Korean employees climbed to 3.2 million won ($2,680) as of 2020 on the back of drastic hikes in the statutory minimum wage between 2018 and 2020, state data showed Monday. According to Statistics Korea, the average monthly wage for salaried workers rose by 430,000 won, or 15.5 percent, in just four years -- from 2.77 million won in 2016. During the period of 2016-2020, the minimum wage per hour surged by 42.4 percent from 6,030 won to 8,590 won, with th

Feb. 21, 2022

S. Korea to hold annual meetings with Moody's this week

South Korea will hold its annual consultation meetings with global rating agency Moody's Investors Service this week over the country's economic conditions, Seoul's finance ministry said Monday. The Moody's credit rating team, led by Gene Fang, associate managing director of the agency, will hold a series of meetings with the finance ministry, the central bank and other agencies starting Monday through Feb. 28. During the meetings, the two sides will discuss the country's recent economic situati

Feb. 21, 2022

Exports rise 13% in first 20 days of Feb.

South Korea's exports grew 13.1 percent on-year in the first 20 days of February on the back of demand for chips and petroleum products, customs data showed Monday. The country's outbound shipments stood at $34.30 billion in the Feb. 1-20 period, compared with $30.34 billion a year earlier, according to the data from the Korea Customs Service. Imports rose 12.9 percent on-year to $35.98 billion, resulting in a trade deficit of $1.68 billion during the cited period, the data showed. By sector, ou

Feb. 21, 2022

South Korea’s fiscal deficit tops W100tr as spending surged amid COVID-19

South Korea’s fiscal deficit reached over 100 trillion won ($83 billion), while national debt logged a deficit of 240 trillion won, as the country was bogged down by COVID-19 woes in the past two years, data from the Finance Ministry showed Sunday. With an additional 70 trillion won in fiscal deficit and 100 trillion won of national debt projected to be added this year, based on the size of the supplementary budget currently being discussed by officials and lawmakers, onlookers are expre

Feb. 20, 2022

Korea to make public food prices at franchises to tame inflation

SEJONG – Economic policymakers are moving to tame consumer prices under their assessment that inflationary pressures would continue this month, Vice Finance Minister Lee Eog-weon said Friday. Several policy measures set to be taken include making price tags of food products at large-scale dining franchises publicized and extending fuel tax redemption. “Prices of dining out increased by 5.5 percent in January on-year. This marked the highest growth (in almost 13 years) since 5.

Feb. 18, 2022

Global DRAM shipments, prices down in Q4: report

Global DRAM shipments dropped nearly 6 percent in the fourth quarter from three months earlier, a report showed Friday, amid sluggish demand from manufacturers that had hoarded up the key consumer electronics component over continued chip shortages. DRAM shipments during the October-December period were valued at $25 billion, down 5.8 percent globally from the previous quarter, according to the data provided by industry tracker TrendForce. Declining purchasing momentum, it said, also led to a dr

Feb. 18, 2022

Raging omicron feared to hamper private spending recovery: finance ministry

South Korea's economy is on a recovery path on the back of robust exports, but the fast spread of the omicron variant is feared to hurt the recovery of private spending, the finance ministry said Friday. External economic uncertainties also heightened as oil prices have surged and volatility in the financial market has increased amid geopolitical risks between Russia and Ukraine, the ministry said in its monthly economic assessment report, called the Green Book. "South Korea's exports have

Feb. 18, 2022

Money supply up in Dec. over increased savings, exports growth

South Korea's money supply rose 0.7 percent on-month in December due mainly to an increase in savings boosted by rising interest rates and brisk exports, central bank data showed Thursday. The country's M2, a key gauge of the money supply, stood at 3,613 trillion won ($3.02 trillion) on average in December, up 23.8 trillion won from a month earlier, according to the preliminary data from the Bank of Korea (BOK). The growth rate slowed down in December compared with the previous month. From a yea

Feb. 17, 2022

BOK forecast to hike key rate to 2% by yearend

South Korea's central bank is expected to raise its benchmark interest to 2 percent by the end of this year to tackle rising inflation and a brisk economic recovery, a local brokerage house said Thursday. Hana Financial Investment Co. said its latest forecast is 0.25 percentage point higher than its earlier projection of 1.75 percent for the end of this year. "The key rate outlook has been raised in light of high inflation at home and abroad, and South Korea's economic growth outpacing its

Feb. 17, 2022

S. Korea logs smaller-than-expected fiscal deficit in 2021 on larger tax revenue

South Korea's fiscal deficit is estimated to be sharply smaller than its previous estimate last year on the back of larger-than-expected tax revenue, the finance ministry said Thursday. The consolidated fiscal balance, a key gauge of fiscal soundness, logged a deficit of 30 trillion won ($25 billion) in 2021, smaller than the government's earlier projection of 90.3 trillion won, according to preliminary data from the Ministry of Economy and Finance. The improved fiscal health was attributable ma

Feb. 17, 2022

Growth in number of employed hits 21-year high

SEJONG -- The number of employed in South Korea surged by more than 1 million in January, compared to a year earlier, on the back of both a base effect and economic recovery, state data showed Wednesday. According to Statistics Korea, the number of employed increased by 1.13 million in January on-year to 26.95 million. This marked the highest growth in more than 21 years since the tally shot up 1.21 million in March 2000. Women outnumbered men by about 24,000 -- 579,000 vs. 555,000 -- in the g

Feb. 16, 2022

S. Korea eyes active push for FTAs with African nations

South Korea said Wednesday it will actively push for free trade agreements with African nations in a move to deepen economic ties with the resource-rich emerging market and to diversify its trade portfolio. Last month, South Korea and Egypt agreed to carry out a joint feasibility study on the bilateral trade and economic partnership, which is a first step for South Korea to have a free trade pact with an African country if the two sign the free trade deal. Trade volume between South Korea and Af

Feb. 16, 2022

S. Korea reports largest job growth in almost 22 years in Jan.

South Korea reported the largest job growth in nearly 22 years in January as the job market improved to pre-pandemic levels due to a low base effect and the ongoing economic recovery, data showed Wednesday. The number of employed people came to 26.95 million last month, up 1.14 million from a year earlier, according to the data compiled by Statistics Korea. It marked the largest job growth since March 2000, when the number of employed people increased 1.21 million on-year. It also marked the

Feb. 16, 2022

Instant noodle makers' 2021 operating profits sink on rising costs

South Korea's three major instant noodle makers saw their operating profits tumble in 2021 due largely to increased costs, their regulatory filings showed Wednesday. Nongshim Co., the leading maker of instant noodles, or "ramyeon" in Korean, said that its 2021 operating income plunged 33.8 percent from the previous year. Ottogi Co. and Samyang Foods Co. also saw their operating profits for last year shrink 16.1 percent and 31 percent on-year, respectively. The companies attributed t

Feb. 16, 2022