South Korea is set to slash its yearly growth forecast this week amid the persisting COVID-19 pandemic and the global economic downturn, but market predictions continue to remain divided over the likeliness of policy rate adjustment. While some view the additional rate cut as an inevitable move to shore up the virus-hit economy, others argue that the country should take prudence and first let its fiscal measures take effect in the market. Also, the recently reshuffled composition of t

Economy May 26, 2020

Due to its fast-aging population and consequently reduced productivity, South Korea will continue to see its current account decline over the years and eventually turn to the red as early as in the next decade, according to a state-run think tank. “The country’s fast-aging demographic trend is likely to reduce the current account surplus or cause a deficit,” the Korea Institute for International Economic Policy said in a report on the impact of demographic change on 

Economy May 25, 2020

Preparing for the Asian Development Bank’s annual meeting to be held in Songdo in September, South Korea’s government on Friday chaired a pre-session to handle key agendas in advance. During the 30-minute teleconference, presided by Korean Deputy Prime Minister and Finance Minister Hong Nam-ki, the board of directors approved the ADB’s annual financial report and reiterated joint efforts for regional prosperity according to the Ministry of Economy and Finance. Earlier in Mar

Economy May 22, 2020

The chief of South Korea’s financial watchdog urged financial circles to be wary of business expansion and to secure capital reserves, assuming that the COVID-19 pandemic will drag on. “The financial circles should maximize their total loss absorbency capacity, bracing for a prolonged fallout of COVID-19,” Yoon Suk-heun, governor of the Financial Supervisory Service, said in a financial supervision advisory committee meeting held Friday at the Korea Federation of Banks headqu

Market May 22, 2020

While the global market dwindled and corporate assets depreciated amid the COVID-19 pandemic, the limited range and number of companies and assets with growth momentum have gained popularity from investors across borders. In order to keep the balance between economic revitalization and protection of “strategic business assets,” policymakers should raise the threshold for aspiring foreign investors here, according to a state-affiliated think tank. “The preliminary screening pr

Economy May 21, 2020

South Korea’s government vowed Wednesday to swiftly create at least 550,000 new jobs in the public sector as soon as it secures an additional budget of 3.5 trillion won ($2.8 billion). The move came in line with the country’s efforts to brace for economic recovery after the ongoing COVID-19 pandemic. “It is now time to gear up for economic recovery, while maintaining thorough everyday quarantine rules,” said Deputy Prime Minister and Finance Minister Hong Nam-ki in a me

Economy May 20, 2020

As the global economy marks a sharp decline amid the persisting COVID-19 pandemic, South Korea will see its economy expand 0.2 percent this year before rebounding to 3.9 percent growth level next year, according to a state-affiliated think tank. But this modest figure, which is higher than the outlook suggested by other international institutions and private think tanks, is anticipated to face challenges down the road due to global economic uncertainties. “Our economy will grow 0.2 per

Economy May 20, 2020

South Korea will deliver a combined $53 million to Central and South American countries to help them deal with COVID-19, as part of efforts to promote the country’s esteemed quarantine model globally, officials said Monday. The Ministry of Economy and Finance has decided to deliver $50 million to Paraguay in the form of joint financing between the Inter-American Development Bank and the Economic Development Cooperation Fund. Established in 1959, the IDB is the largest source of develo

Economy May 18, 2020

South Korea’s financial authorities have slashed government subsidies for foreign banks that they view as “passive” toward the need to support small businesses hit by COVID-19, officials said Sunday. The amounts withheld from foreign banks will be reallocated to five major local lenders to maximize the availability of state-funded low-rate loans for cash-strapped business owner-operators. Starting Monday, seven major banks here are accepting loan applications from owner-oper

Economy May 17, 2020

South Korea’s government aims to create 1.56 million jobs mostly in the public sector, hoping it will eventually trigger the private sector to follow suit and hire more, according to the nation’s fiscal chief Thursday. “The ongoing pandemic has triggered not only immediate job losses but also long-term quantitative and qualitative shocks to the employment market,” Deputy Prime Minister and Finance Minister Hong Nam-ki said in an economic policy headquarters meeting he

Economy May 14, 2020

Despite hopes building on a return to normal life around the world, the speed of economic contraction globally and in South Korea has been accelerating due to the pandemic over decreased spending, investment and production, casting a dark cloud over all-out efforts to contain the damages, figures by think tanks and central bank showed Tuesday.　 Korea’s economic contraction has been gaining momentum in recent months due to lackluster consumer spending and exports following risks stemming

Economy May 12, 2020

Deloitte Korea said Monday it will be joining Deloitte Asia Pacific, a central business entity that combines regional operations. “Based on a partner-level vote conducted in April, we will officially join as member of Deloitte AP, starting June 1,” the local subsidiary of the New York-based accounting firm said in a release. Seeking to improve the level of services and to attract talent, Deloitte Korea will invest $22 million into the regional entity over the next four years, part

Market May 12, 2020

South Korea will save more than 300 billion won ($246 million) in 2021-2024 by aborting or merging state-subsidized projects, the Ministry of Economy and Finance said Friday. “We have made a rigorous assessment this year as an effective fiscal operation has become more crucial than ever in order to overcome the fallout of COVID-19,” said Vice Finance Minister Koo Yun-cheol in a state subsidy management committee meeting at Seoul Government Complex. Later in the day, Koo was name

Economy May 8, 2020

South Korea will provide 1.5 trillion won ($1.2 billion) in special subsidies to irregular workers who lost their income or suffered crucial blows amid the COVID-19 quarantines, the finance minister said Thursday. The move came in line with the government’s struggles to sustain the nation’s job market amid an economy that is set to contract this year. “Seeking to enhance the employment safety net for neglected underprivileged workers, (the government) will execute a 1.5 tril

Economy May 7, 2020

Former Shinhan Bank CEO Wi Sung-ho has joined Taekwang Group as an executive member of its insurance arm, filling his financial career vacuum after stepping down from his previous post. Wi on Monday attended his first day on the job as the new vice chairman of Heungkuk Life Insurance, according to the insurer’s officials. He will also serve as management adviser for Heungkuk Fire & Marine Insurance, Heungkuk Securities, Heungkuk Asset Management, Goryo Savings Bank and Yegaram Saving

Market May 4, 2020