[THE INVESTOR] The South Korean government will increase its spending to 400.7 trillion won next year, up 3.7 percent from this year, with a primary focus on boosting social welfare and creating jobs, the Finance Ministry said Tuesday.This marks the first time for the national budget to exceed 400 trillion won with about one-third of it allocated to spending on welfare, or 130 trillion won, the highest. Of 130 trillion won allocated to social welfare, the budget includes spending 17.5 trillion w

Aug. 30, 2016

[THE INVESTOR] Fitch Ratings continued to warn South Korea of geopolitical risks associated with North Korea in the light of the North’s recent submarine missile test, in addition to structural risks on changing demographics and low productivity, according to the Finance Ministry on Friday.The Fitch delegation visited Korea for its annual consultation meetings with the Finance Ministry from Wednesday-Friday this week.Although the global ratings agency gave a positive review on Korea maintaining

Aug. 26, 2016

South Korea’s overall consumer sentiment reached an eight-month high in August on the back of growing expectations of an economic recovery.The Bank of Korea said Friday that the composite consumer sentiment index reached 102 last month, up from 101 in July.This marked that highest since December last year, and a second consecutive increase, the central bank data showed. A reading above 100 indicates that more households are positive about their economic future.Analysts say that Korea’s sovereign

Aug. 26, 2016

Fitch Ratings continued to warn South Korea of geopolitical risks associated with North Korea in the light of the North’s recent submarine missile test, in addition to structural risks on changing demographics and low productivity, according to the Finance Ministry on Friday.The Fitch delegation visited Korea for its annual consultation meetings with the Finance Ministry from Wednesday-Friday this week.Although the global ratings agency gave a positive review on Korea maintaining fiscal soundnes

Aug. 26, 2016

[THE INVESTOR] The South Korean government said Thursday that it will control the number of houses and apartments supplied in the market, and strengthen regulations on mortgages as part of efforts to contain its household debt.With the country’s household debt increasing at a fast pace on low interest rates this year, the Finance Ministry said that it will restrict the supply side of the housing market rather than the demand side to ease the debt problem, as well as housing oversupply.Financial

Aug. 25, 2016

The South Korean government said Thursday that it will control the number of houses and apartments supplied in the market, and strengthen regulations on mortgages as part of efforts to contain its household debt.With the country’s household debt increasing at a fast pace on low interest rates this year, the Finance Ministry said that it will restrict the supply side of the housing market rather than the demand side to ease the debt problem, as well as housing oversupply.Financial policymakers an

Aug. 25, 2016

With political parties growing further apart over their inability to compromise on the South Korean government’s extra budget bill, the Finance Ministry is making a last-ditch effort to appeal to lawmakers before time slips away.Once again urging the conservatives and progressives to sign on its supplementary budget, Finance Minister Yoo Il-ho said Wednesday that if the country misses the “golden time” to carry out its 11 trillion won ($10 billion) extra spending plan over the next four months,

Aug. 24, 2016

South Korea’s terms of trade slightly improved last month, according to preliminary data by the Bank of Korea on Tuesday.The terms of trade -- an index that measures a country’s trade performance by comparing the amount of exports and imports -- stood at 100.09 in July, up 0.4 percent from a year ago, indicating that the country is exporting more than spending on imports.However, the central bank noted that the improvement was mostly due to “a bigger drop in import prices than export prices” on

Aug. 23, 2016

[THE INVESTOR] Contrary to the International Monetary Fund’s assessment that South Korea’s household debt is manageable in part due to increased regulations, the central bank sees the rapid growth of borrowings as a serious problem that could further undermine Korea’s economic structure.In direct conflict with the Financial Services Commission, which has provided industry guidelines to curb borrowings, the Bank of Korea suggested that the country would need additional measures as the government’

Aug. 22, 2016

Contrary to the International Monetary Fund’s assessment that South Korea’s household debt is manageable in part due to increased regulations, the central bank sees the rapid growth of borrowings as a serious problem that could further undermine Korea’s economic structure.In direct conflict with the Financial Services Commission, which has provided industry guidelines to curb borrowings, the Bank of Korea suggested that the country would need additional measures as the government’s regulatory gu

Aug. 22, 2016

[THE INVESTOR] South Korea’s economy saw its household saving rate increase among the fastest in the Organization for Economic Cooperation and Development, according to the OECD.　The OECD forecast that Korea’s household saving rate is expected to increase more than twofold this year, compared to four years ago, from 3.9 percent in 2012 to 8.66 percent in 2016. This would rank Korea as the fifth highest in the OECD following Switzerland with 20.13 percent, Sweden with 16.45 percent; Luxembourg wi

Aug. 21, 2016

South Korea’s economy saw its household saving rate increase among the fastest in the Organization for Economic Cooperation and Development, according to the OECD.The OECD forecast that Korea’s household saving rate is expected to increase more than twofold this year, compared to four years ago, from 3.9 percent in 2012 to 8.66 percent in 2016. This would rank Korea as the fifth highest in the OECD following Switzerland with 20.13 percent, Sweden with 16.45 percent; Luxembourg with 17.48 percent

Aug. 21, 2016

[THE INVESTOR] Finance Minister Yoo Il-ho said Thursday that Korea would firmly stand against trade protectionism by further seeking economic partnerships with other economies despite growing uncertainties, while urging again the National Assembly to approve its extra spending proposal.In a meeting to review its external economic conditions, the finance minister said that the issue of protectionism was rising amid uncertainties on Brexit and becoming a major topic in the US presidential race.Abo

Aug. 18, 2016

Finance Minister Yoo Il-ho said Thursday that Korea will firmly stand against trade protectionism by further seeking economic partnerships with other economies despite growing uncertainties, while urging again the National Assembly to approve its extra spending proposal.In a meeting to review its external economic conditions, the finance minister said that the issue of protectionism is rising amid uncertainties on Brexit and becoming a major topic in the US presidential race.About 10 industrial

Aug. 18, 2016

The Seoul stock market took a dive Wednesday following overnight losses on Wall Street after one of the key members of the US Federal Open Market Committee sent a clear message to the world that it could raise its interest rates next month.Based on strong employment data and positive growth forecast, New York Fed Reserve President William Dudley spoke in a televised interview about the possibility of a rate hike in September. It sent the Dow Jones Industrial down more than 84 points at 18,552.02

Aug. 17, 2016

[THE INVESTOR]  South Korea ranked 11th worldwide in gross domestic product in 2015, with its global standing rising two notches from a year earlier, data showed Tuesday.According to the data by the World Bank, South Korea's nominal GDP came to $1.38 trillion last year, up from 13th place a year earlier. But the value was down 2.4 percent from $1.42 trillion the previous year.GDP, the broadest measure of an economy's performance, is the total value of goods and services produced within the econo

Aug. 16, 2016

South Korea has regained its title as the world’s 11th-largest economy in nine years, according to national accounts data by the World Bank and the Organization for Economic Cooperation and Development.The latest data showed that Korea’s gross domestic product stood at $1.38 trillion in 2015, climbing back up to 11th place, based on the average dollar currency rate over the last three years.Korea’s ranking in terms of economic output has been sliding since 2006, beyond the top 10 during the Roh

Aug. 16, 2016