’High inflation could hinder Korea’s sustainable economic growth': BOK chief

South Korea’s central bank chief expressed concerns of high inflation Thursday, saying it could pose as a major hurdle for the economy’s sustainable growth. “If the sentiment surrounding inflation expectations continues to sour, the ties between wages and inflation could drive up inflationary pressure, as observed in other economies,” Bank of Korea Gov. Lee Ju-yeol said in a press briefing. “The longstanding high inflation could hinder households’ purchasin

Dec. 16, 2021

Builders' 2020 sales fall for first time in 21 years on pandemic

South Korean construction companies' sales dropped on-year in 2020 for the first time in 21 years due to the coronavirus pandemic, government data showed Thursday. The combined top line of local builders reached 396.9 trillion won ($336 billion) last year, down 1.1 percent from the previous year, according to the data from Statistics Korea. It marks the first on-year decline since the 11.1 percent decrease recorded in 1999 in the wake of the country's foreign exchange crisis. Their domestic s

Dec. 16, 2021

Income gap narrows to record low in 2020 on emergency cash handouts

The income gap between the haves and have-nots in South Korea narrowed to a record low in 2020 on the back of the government's provision of emergency cash handouts amid the pandemic, data showed Thursday. The Gini coefficient measured with disposable income, a gauge of income inequality, came in at 0.331 last year, down from 0.339 the previous year, according to the data from Statistics Korea. A reading of zero means complete income equality, while higher numbers nearing one indicate a widenin

Dec. 16, 2021

S. Korea's 2022 economic growth target set at early 3% range: finance minister

South Korea's top economic policymaker said Thursday the government plans to make efforts to help the country's economy grow in the early 3 percent range next year amid heightened economic uncertainty. Finance Minister Hong Nam-ki said the country plans to focus on boosting domestic demand and conducting fiscal spending in the fourth quarter to achieve the 4 percent range growth target for this year. The finance ministry plans to unveil its 2022 economic policy directions next week. Hong said

Dec. 16, 2021

Tally for unemployed falls to 730,000 in Nov.: data

SEJONG -- The number of employed in the nation increased by 553,000 in November, compared to a year earlier, continuing improvement in the hiring index over the past few months, state data showed Wednesday. But the number of de facto jobless -- unemployed plus underemployed -- still surpassed 3 million, with the actual jobless rate reaching 11 percent. The Ministry of Economy and Finance maintained that the “official” tally for the jobless and jobless rate stayed at 734,000 and 2.6

Dec. 15, 2021

Regulator approves restart of nuclear reactor after maintenance

South Korea's nuclear safety watchdog on Wednesday approved the restart of a nuclear reactor in the country's southwestern nuclear complex that was shut down for an inspection. The Nuclear Safety and Security Commission said it has given the go-ahead to restart the Wolsong No. 4, 700-megawatt reactor, in Gyeongju, 371 kilometers southeast of Seoul. The Wolsong No. 4 nuclear power reactor, which first started operations in 1999, has been shut down since Oct. 10 for regular maintenance. The com

Dec. 15, 2021

Use of robots results in 'meaningful' decline in human labor demand in manufacturing: BOK report

Expanded use of robots has resulted in a "meaningful" decline in demand for human labor in the manufacturing industry while replacing mostly "routine" and "repetitive" jobs, a central bank report said Wednesday. The Bank of Korea's report was based on data related to introduction of robots in industries and the impact on employment from 2010-2019. It analyzed the net effect of the "displacement effect" in which robots replace workers and "productivit

Dec. 15, 2021

Money supply up 1.1% on-month in October

South Korea's money supply grew in October on increased savings amid higher interest rates on deposits, central bank data showed Wednesday. The country's M2, a key gauge of the money supply, stood at 3,550.6 trillion won ($3 trillion) as of end-October, up 1.1 percent, or 38 trillion won, from a month earlier, according to the preliminary data from the Bank of Korea (BOK). The growth slightly quickened from the previous month's 0.5 percent gain. Compared with a year earlier, the money supply

Dec. 15, 2021

Auto exports down 4.7% in Nov. amid lack of automotive chips

South Korea's automobile exports fell nearly 5 percent in November from a year earlier due to a global shortage of automotive chips, data showed Wednesday. Outbound shipments of automobiles came to 178,994 units last month, down 4.7 percent from the same month a year earlier, according to the data from the Ministry of Trade, Industry and Energy. In terms of value, however, exports advanced 3.3 percent to $4.12 billion in November, the largest monthly tally since April when the supply bottlene

Dec. 15, 2021

Job growth extended for 9th month in Nov. amid economic recovery

South Korea reported job additions for the ninth straight month in November in the latest sign the country's economic recovery has continued despite the latest upsurge in COVID-19 cases, data showed Wednesday. The number of employed people reached 27.79 million last month, 553,000 more than a year earlier, according to the data compiled by Statistics Korea. The reading was lower than an on-year increase of 652,000 in October. But the number of employed people has risen since March as Asia's fo

Dec. 15, 2021

Busan starts campaign to host Expo 2030 world fair

Busan started its campaign Tuesday to host the Expo 2030 world fair at a virtual meeting convened by the organizing body Bureau International des Expositions (BIE), Busan Metropolitan City said. Busan -- one of five cities including Rome, Moscow, Odessa and Riyadh to have submitted the bid -- was the first city to make its case online. The Busan mayor leading the Korean delegation proposed holding the fair under the theme: “The era of great change: Sailing toward a better future.”

Dec. 14, 2021

S. Korea's ICT exports hit new monthly high in Nov.

South Korea's exports of information and communication technology (ICT) products touched a new monthly high in November on brisk global demand for chips and displays, data showed Tuesday. Outbound shipments of ICT products reached $21.49 billion last month, up 30 percent from a year earlier, according to the data from the from the Ministry of Science and ICT. The November tally represents the largest-ever monthly amount and the 18th consecutive month of on-year gains since June last year. ICT

Dec. 14, 2021

Import prices down in November for first time in 7 months on cheaper oil, raw materials

South Korea's import prices dropped for the first time in seven months in November as prices of oil and other raw materials declined, central bank data showed Tuesday. The import price index inched down 0.6 percent last month from a month earlier, according to the preliminary data from the Bank of Korea. This marked the first on-month decline in seven months The decline is blamed on a fall in international crude oil prices and other raw materials, including mining products. The central bank

Dec. 14, 2021

‘Uncertainty’ leading businesses to postpone investment: poll

About half of the highest-earning South Korean companies have no investment plans for next year as they battle “uncertainty” around the omicron coronavirus variant and the disruptions the pandemic has caused, a local think tank said Monday. According to the Korea Economic Research Institute, 49 percent of the 101 companies that responded to the survey said they either do not plan to make new investments in 2022 or have yet to come up with one, citing an uncertain economic outlook.

Dec. 13, 2021

Korea to push for entry to 11-member CPTPP

SEJONG -- South Korea on Monday has expressed its commitment to joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which is aimed at multilateral free trade agreements in the Asia-Pacific region. In addition, the nation has unveiled a policy to push for bilateral FTAs with more countries, including Mexico. In a ministerial meeting, Deputy Prime Minister and Finance Minister Hong Nam-ki said that the government “is seeking to collect public opinions and rea

Dec. 13, 2021

S. Korea’s exports hit new all-time record: ministry

South Korea’s exports from the beginning of the year to Monday surpassed the record-high annual outbound shipments of $604.9 billion, observed in 2018, setting a new all-time high. According to data compiled by the Trade Ministry and Korea Customs Service, total outbound shipments surpassed the ful-year export record at 11:36 p.m. Monday. It is projected to surpass $640 billion on current trends, the Trade Ministry noted. A Trade Ministry official pinpointed further development in Kore

Dec. 13, 2021

1 in 5 under-30s neither in employment nor education

　A fifth of people aged 15 to 29 in South Korea were not in employment, education or training (NEET), a report has shown, which would mark the third-highest level among members of the Organization for Economic Cooperation and Development. 　The estimated number of NEET youth in South Korea is nearly 1.59 million, according to a report by Chung Jae-hyun, head of the youth policy research and development division at the Korea Employment Information Service. 　They include about 778,000 who are se

Dec. 13, 2021

BOK calls for efforts to 'steadily adjust' high levels of leverage

South Korea needs to "steadily adjust" high levels of leverage maintained to prop up the pandemic-hit economy as excessive indebtedness could result in financial instability and reduce future policy room, a central bank report showed Monday. Rising household debt, in particular, has been cited as a major economic risk factor and the government has been tightening rules on lending amid worries that the financial imbalances caused by increased debt in the private sector could put a damp

Dec. 13, 2021

S. Korea to expand financial support for builders' overseas orders

South Korea said Monday it will expand financial support measures for local builders as their overseas orders are expected to fall short of last year's records amid the protracted pandemic. Korean construction firms clinched combined overseas orders worth $24.3 billion between Jan. 1 and Dec. 10, down 21 percent from a yer earlier, according to the government. Last year, local builders secured overseas orders worth $35.1 billion last year, but their combined orders for this year may be around

Dec. 13, 2021

Exports rise 20.4% in first 10 days of Dec.

South Korea's exports grew 20.4 percent on-year in the first 10 days of December on the back of solid demand for chips and petroleum products, customs data showed Monday. The country's outbound shipments stood at $19.5 billion in the Dec. 1-10 period, compared with $16.2 billion a year earlier, according to the data from the Korea Customs Service. (Yonhap)

Dec. 13, 2021