The consumption gap is further widening between the rich and poor as income inequality and consumer prices rise.Statistics Korea said Tuesday that the bottom 10 percent of households by income concentrate their spending on daily necessities such as food and settling monthly utility bills.Meanwhile, the top 10 percent spend their wealth on education for their children, travel, entertainment and other cultural activities.Groceries and nonalcoholic drinks accounted for more than 23 percent of total

March 19, 2013

Hana Financial Group is on track to take compete control of Korea Exchange Bank as the majority of its shareholders approved a plan to swap Hana shares with remaining KEB shares owned by minority stakeholders at Hana’s extraordinary general meeting on Friday.The share swap scheme was also approved at KEB’s meeting, but is expected to face growing opposition from KEB minority shareholders and union workers.The plan, not only to gain 100 percent ownership in Korea’s leading foreign exchange bank b

March 15, 2013

Korea’s weekly working hours fell to a record low in 2012 as companies reduced operations and production to shed costs amid the economic slowdown.Companies with more than five workers had their employees work an average 41.4 hours a week last year, with average monthly working hours also falling below 180 hours for the first time since 1999 when Statistics Korea began compiling data, the statistics bureau and the Ministry of Employment and Labor said Wednesday.Korea’s monthly working hours avera

March 13, 2013

A free trade agreement with the U.S. has pushed down Korea’s tariff revenue on U.S. imports for the first time in seven years, despite an increase in trade with the world’s largest economy.The Ministry of Strategy and Finance said Tuesday that tariff revenue on U.S. imports sank to 9.8 trillion won ($8.9 billion) last year, down 10.7 percent from 10.9 trillion won a year ago.This is the first time Korea saw its customs revenue decline since 2005, the ministry noted, adding that its revenue fell

March 12, 2013

The Ministry of Strategy and Finance said Monday that it was considering reducing tax-exemptions and benefits “comprehensively” and across the board, in line with President Park Geun-hye’s pledge to boost welfare spending for the middle class.The downsize of tax benefits could apply to foreign investors, but an official at the Finance Ministry said that nothing had been decided yet regarding tax revision for foreigners.A local newspaper reported that the Finance Ministry had begun looking into w

March 11, 2013

The proportion of people currently working or seeking work in Korea’s labor market is expected to fall below the 60 percent threshold for the first time in 24 years.Korea’s economic activity rate is predicted to sink to 59.3 percent this year, according to data by Statistics Korea and the National Assembly Budget Office. Korea has generally kept its economic activity rate above 60 percent since 1990. The economically active population also is expected to fall 2.3 percent to 25.4 million. This wo

March 11, 2013

The Export-Import Bank of Korea could assist Incheon International Airport Corp to finance Myanmar’s new airport project as the state-run airport operator is currently looking into ways to fund the potential deal worth up to $600 million, said sources familiar with the situation.IIAC could seek Korea Eximbank, which has a non-binding agreement with IIAC to support the export of its airport operation know-how, to back its consortium through the policy bank’s Economic Development Cooperation Fund

March 10, 2013

Conglomerates such as Shinsegae and CJ that provide goods and services directly to retail consumers flunked their evaluations on corporate social responsibility performances.Korea’s Corporate Governance Service said Wednesday that CJ and its subsidiaries earned the lowest score of 5.6 points out of 100 among the top 20 conglomerates and units in running a fair and reliable operation for consumers.Shinsegae, contrary to its close home rival Lotte, which received 53.68 points, earned around 20 poi

March 6, 2013

An increasing number of domestic asset management and investment advisory service companies are faced with capital erosion and inevitable restructuring due to weakening profitability, according to the Financial Supervisory Service and the Korea Financial Investment Association.Securities companies have been downsizing their units and staff levels as the global slowdown has weighed down their brokerage and investment banking businesses.Financial regulators are expected to clean up and shut down t

March 5, 2013

Following is the fifth and last in a series of stories featuring economic issues facing the Park Geun-hye government that was inaugurated on Feb. 25. ― Ed.When executives of Korean exporters shared their concern with President Park Geun-hye over the volatility of the Korean won during the transition period, the nation’s 18th chief executive said then that her government will aim to maintain foreign exchange stability through “preemptive measures.”The president said she was well aware that Korea

March 5, 2013