The Korea Herald

Ministry proposes 3% budget boost

The government proposed a 3 percent increase in its 2016 budget formulation from this year to continue to push for an expansionary economic policy next year despite concerns over worsening fiscal soundness.The Finance Ministry said Tuesday that the budget proposal reflects the administration’s full-fledged effort to invigorate sagging private consumption and exports.The budget scheme, which is to be proposed before the National Assembly on Sept. 11, amounts to 386.7 trillion won ($322.2 billion)

Sept. 8, 2015

Dollar finishes above W1,200

South Korea’s currency further weakened Monday ahead of the interest rate-setting meeting of the Federal Open Market Committee, slated for Sept. 16-17 in Washington, D.C.Amid the growing investor sentiment toward non-risky assets, the U.S. dollar and Japanese yen showed stronger position against the Korean won.The dollar rose by 10.8 won from a trading session before to close at 1,204.2. The won fell to its cheapest versus the greenback in more than five years. Currency dealers look at indices

Sept. 7, 2015

Growing second-tier loans mount household risks

An increasing number of households in Korea are burdened with high-interest loans from secondary financial firms, central bank data showed Sunday.As a result, concerns are escalating over the possibility that the recent surge in the second-tier loans may increase the number of loan delinquents in the coming years and dent the economy.According to the Bank of Korea, the credit based-loans from the secondary sector -- such as mutual savings banks and capital services firms -- increased by about 5

Sept. 6, 2015

Korea’s quarterly GNI falls for 1st time since 2010

The nation’s gross national income posted minus growth in the second quarter of the year, dropping 0.1 percent from the previous quarter, data from the Bank of Korea showed Thursday. This is the first time in 4 1/2 years that the country marked negative GNI growth on a quarter-to-quarter basis, after the index fell below zero to -1.9 percent during the fourth quarter of 2010.The GNI refers to the total domestic and foreign output claimed by residents of a country, including their salaries, finan

Sept. 3, 2015

KOSPI follows Shanghai index despite U.S. stock crash

South Korea’s stock market weathered the overnight plunges of equities on the European and U.S. bourses, despite the aggravated concerns about possible global deflation from China’s economic slowdown.The KOSPI gained 0.99 points or 0.05 percent from a trading session earlier to close at 1,915.22 on Wednesday, though the benchmark index started in a bearish position earlier in the day.While some analysts claimed the Korean index is considered to have hit the bottom in late August, others say the

Sept. 2, 2015

KOSPI follows Shanghai index despite U.S. stock crash

[Weekender] Who will take on currency redenomination?

In the early 2000s, Korean tourists to Turkey saw a foreign exchange rate of 1 million won to about 1.3 billion lira.When it comes to South Korea’s economic scale, its won-denominated gross domestic product is estimated at about 1.6 quadrillion won last year, or 1,600,000,000,000,000 won. Its outstanding household debt, fully written out in the local currency, is 1,100,000,000,000,000 won.Inbound tourists can sometimes get confused by the multiple-unit conversions such as thousands of dollars to

Aug. 28, 2015

[Weekender] Who will take on currency redenomination?

Korea downplays stock contagion

South Korea’s Finance Minister Choi Kyung-hwan dismissed Wednesday market analysis that the nation’s stock market was showing signs of being coupled with that of China, whose index recently plummeted.His refutation came a day after China’s monetary policymakers cut the country’s benchmark interest rate to shore up its economy. Later in the day, shares on the Shanghai bourse lost ground again. Though the domestic market is being affected by concerns over China’s slowdown, the recent synchronizati

Aug. 26, 2015

Park to meet all ruling party lawmakers at Cheong Wa Dae

President Park Geun-hye will hold a luncheon meeting with ruling party lawmakers this week, entering the second half of her five-year tenure, party officials said Tuesday.Park has invited all lawmakers from the Saenuri Party to Cheong Wa Dae, the presidential office, for the rare group meeting slated for Wednesday, according to the party's spokesman Kim Young-woo."President Park is expected to request the party's cooperation in handling economy-related bills, job-creation bills, and next year's

Politics Aug. 25, 2015

China said to halt stock support amid intervention debate

China’s decision to halt intervention in the stock market this week reflects a debate at the heart of the country’s leadership on the role of markets in the world’s second-largest economy.Authorities have refrained from intervening so far this week as the Shanghai Composite Index tumbled at the fastest pace since 1996, according to people familiar with the situation.Some officials argue that market losses will have a limited impact on economic growth and the costs of support are too high, said o

World Business Aug. 25, 2015

Suspect looked at jihadist video before France train attack: source

PARIS (AFP) -- The suspect in the attack on a high-speed train in France looked at an online video of jihadist songs on his mobile phone shortly before boarding, a source in the investigation said on Tuesday.Ayoub El Khazzani "looked at this video between the time that he bought his ticket and the time he boarded the train" a few hours later, the source said.He was initially thought to be carrying two phones, but the source said he was actually only in possession of one mobile phone, which had b

World News Aug. 25, 2015

Record numbers cross Hungary border as refugee crisis escalates

Record numbers of refugees are streaming into EU member Hungary from Serbia, posing a new headache for regional leaders at a summit this week set to be dominated by Europe's worst migrant crisis since World War II.Almost 2,100 people, the highest ever daily total, crossed the border near the Hungarian town of Roszke on Monday, police said, just days before Hungary completes a vast razor-wire barrier to keep out migrants.They were part of around 7,000 refugees whose hazardous journey to the Europ

World News Aug. 25, 2015

China cuts interest rates in new bid to spur economy

BEIJING (AP) -- China cut interest rates Tuesday for a fifth time in nine months in a new effort to shore up slowing economic growth.The benchmark rate for a one-year loan will be cut by 0.25 percentage point to 4.6 percent and the one-year rate for deposits will fall by a similar margin to 1.75 percent, the central bank announced. It also increased the amount of money available for lending by reducing the minimum reserves banks are required to hold by 0.5 percentage point.The moves had been ant

World Business Aug. 25, 2015

KOSPI rebound stifled by global tumbles

The benchmark KOSPI stopped a six-day slide Tuesday as the two Koreas reached a military agreement. It gained 16.82 points, or 0.92 percent, from the previous trading session to close at 1,846.63.However, foreign investors were still net-selling on local main bourse after major stock markets of Europe and the U.S. tumbled overnight.The Chinese market’s further plunge on Tuesday is estimated to have stifled the rebound of South Korean stocks.Foreigners net-sold equities worth 528.6 billion won ($

Aug. 25, 2015

Two Koreas reach deal to ease military tensions

North Korea on Tuesday expressed regret over a recent land mine blast in the Demilitarized Zone and resulting injuries on South Korean soldiers and agreed to lift the “quasi-war state” in return for Seoul’s conditional revocation of anti-Pyongyang broadcasts. The two Koreas also agreed to hold formal talks to improve their relations in Seoul or Pyongyang “at an early date” and working-level discussions in early September to arrange reunions of separated families in time for the upcoming Chuseok

North Korea Aug. 25, 2015

Two Koreas reach deal to ease military tensions

[URGENT] Seoul to publicize results of inter-Korean talks

Kim Kwan-jin, chief of Cheong Wa Dae’s National Security Office, is scheduled to unveil the results of the high-level talks between the two Koreas -- held since Saturday in Panmunjeom -- around 2 a.m. on Tuesday at the presidential office in Seoul.

North Korea Aug. 25, 2015

Articles by 김연세