While South Korea is set to expand its definition of a “large shareholder” starting next year, calls are escalating for the forthcoming rule to be alleviated for the sake of market stability and fair taxation. Some predicted that the stronger regulation might trigger a selling spree at year-end as retail investors seek to avoid a heavier tax burden, and others pointed to the possibility of double taxation. Under the Income Tax Act, revised in 2017 and due to take effect in 2021, t

Market Oct. 4, 2020

While Korea’s major lenders are gesturing to tighten their loan extensions in apparent response to financial authorities’ regulatory efforts, nonmonetary institutions are striving to expand their loan supplies, seeking to absorb market demand. Several savings banks, insurers and e-payment service operators ran special promotional events throughout the last two weeks of September, ahead of the Chuseok holiday, offering cash back or other benefits to potential credit loan borrowers.

Market Oct. 3, 2020

South Korea will impose punitive statutory damages of up to three times upon breaches of trademark righs and design rights, starting in April 2021, in continued efforts to enhance knowledge-based intangible assets, the country’s intellectual property office said Friday. The revision bills of the Trademark Act, Design Protection Act and the Unfair Competition Prevention and Trade Secret Protection Act have been approved by the National Assembly, the Korean Intellectual Property Office s

Market Sept. 25, 2020

South Korea’s vice finance minister on Thursday warned that the local foreign exchange market may face higher volatility amid external factors such as the COVID-19 resurgence in Europe and the reignited US-China conflict. “There are currently various factors which may increase volatility in the global financial market, including the resurgence of COVID-19 in Europe and the escalating tension between the US and China ahead of the US presidential election,” said Kim Yong-beom

Economy Sept. 24, 2020

Shin & Kim LLC, South Korea’s fifth-largest law firm by number of lawyers, said Thursday that it has enhanced its international tax practice by hiring four leading experts. Sunny Kim, a senior foreign attorney and expert in international tax and cross-border mergers and acquisitions, was named head of the international tax practice, the company said in a release. Kim frequently serves as a consulting expert for the Korean government on issues such as consolidated tax regime, partn

Market Sept. 24, 2020

The first batch of the emergency relief funds for the socially vulnerable will be handed out starting Thursday, following the National Assembly’s approval of the extra budget bill worth 7.8 trillion won ($6.7 billion), officials said Wednesday. The government’s target timeline is to distribute 80 percent of the total budget, or 6.3 trillion won, ahead of the Chuseok holiday that is to start on Sept. 30. The Ministry of Economy and Finance held an emergency fiscal status meeting

Economy Sept. 23, 2020

South Korea’s producer prices increased for the third consecutive month in August, mostly reflecting the rising costs of agricultural goods and oil products, central bank data showed Tuesday. The inflationary trend, attributed to the record-long rainy season and typhoons, is seen as adding pressure on coronavirus-hit consumers ahead of the Chuseok holiday. The producer price index -- an indicator of future consumer inflation -- stood at 103.19 in August, climbing 0.5 percent from a m

Economy Sept. 22, 2020

South Korea has moved a step closer to officially legalizing the shared accommodation business in rural areas, according to the country’s top fiscal chief. The “Korean Airbnb” -- modeled after the US shared lodgings company -- would allow business operators to run such services by using empty houses in non-urban areas for all guests -- locals and foreigners alike. “We have reached a mutually beneficial consensus on using empty homes in farming and fishing areas as l

Economy Sept. 21, 2020

South Korea’s government will start handing out the emergency relief funds tailored for the socially vulnerable early next week, in time for the Chuseok holiday that starts on Sept. 30, officials said Sunday. According to the Ministry of Economy and Finance, the Ministry of Employment and Labor, and the Ministry of SMEs and Startups, small-sized merchants, non-standard contract employees, and families with young children will start to receive the special allowance on Sept. 28-29. The

Economy Sept. 20, 2020

South Korea’s fiscal chief on Thursday asked the National Assembly to approve the recently submitted fourth supplementary budget bill by early next week, aiming at handing out emergency relief funds ahead of the Chuseok holiday. He also pledged to help small business owners digitalize their operations by providing online delivery systems to offline stores and traditional markets, in an extended effort to revamp the economy in the post-coronavirus era. “Sept. 22 is the eff

Economy Sept. 17, 2020

Acknowledging South Korea’s relatively effective control of COVID-19 and its appropriate fiscal response, the Organization for Economic Cooperation and Development recently increased its outlook for Asia’s fourth-largest economy this year, officials said Wednesday. It also reiterated the need to sustain expansionary fiscal policies, warning that hasty belt-tightening as the economy is slowly recovering could dampen growth prospects for next year. In its biannual Interim Economic

Economy Sept. 16, 2020

South Korea’s food price inflation last month ranked the third highest among members of the Organization for Economic Cooperation and Development, due to the record-long summer monsoon season soon followed by consecutive typhoons, data showed Wednesday. The prices for groceries and nonalcoholic beverages for August was up 6.6 percent from a year earlier, according to data compiled by the OECD and Statistics Korea. This on-year rise was third highest among the 22 OECD member states th

Economy Sept. 16, 2020

The Asian Development Bank said Tuesday that South Korea’s economy would likely contract 1 percent on-year in 2020 due to the COVID-19 pandemic, but grow 3.3 percent next year on the back of the global economic recovery and local fiscal spending. In its revised set of growth projections for the Asian region, ADB maintained its earlier forecast for Asia’s fourth-largest economy, while cutting the region’s overall growth outlook for this year to a contraction of 0.7 percent f

Economy Sept. 15, 2020

South Korea will enter into talks with Uzbekistan by the end of the year, seeking to sign a bilateral trade deal, Deputy Prime Minister and Finance Minister Hong Nam-ki said Monday. It will also establish a platform to help local SMEs promote and sell their products through contactless global selling channels such as Amazon. “Our economy continues to face difficulties, with exports logging negative growth for six months straight,” Hong said in a meeting of economy-related minist

Economy Sept. 14, 2020

Creditors of Asiana Airlines announced Friday that they would pull the plug on a stalled deal to sell the cash-strapped airline to property developer HDC Hyundai Development Co. after 10 months of negotiations. They also decided to inject an additional 2.4 trillion won ($2.02 billion) in industrial stabilization funds to normalize operations at the air carrier for another disposal attempt. “Today, Kumho Industrial Co. has notified HDC Hyundai Development Co. that the merger and acquisiti

Market Sept. 11, 2020