SEJONG -- South Korea posted a trade deficit for the fourth consecutive month in the wake of a noteworthy decline in exports to China as well as the spiraling import prices of raw materials, with the cumulative deficit for the first seven months of the year hitting the highest in 66 years. In particular, the nation recorded all-time high imports in July due to a spike in energy prices, which has worsened the trade balance, state data showed Monday. According to the Ministry of Trade, Industry

Economy Aug. 1, 2022

SEJONG -- The Yoon Suk-yeol administration on Friday unveiled a policy scaling back payrolls at 350 public firms nationwide next year, as part of its effort to raise overall productivity and eradicate negligent management of some state-run agencies. It also plans to revamp the wage payment structure for workers in the public agency sector, by slashing taxpayer funding injected from the central government for operation of their businesses. This marks the first time that the government has cut p

Economy July 29, 2022

SEJONG -- The nation’s top economic policymaker on Thursday downplayed the possibility of an active capital flight among foreign investors, saying that the US Federal Reserve’s latest rate hike, which now stands higher than South Korea’s, was carried out within the market expectation. “The US Fed’s decision generally accords with market expectations,” said Deputy Prime Minister and Finance Minister Choo Kyung-ho, adding the international financial markets abs

Market July 28, 2022

SEJONG -- A second hydrogen production base in Korea is set to kick off operations in Pyeongtaek, Gyeonggi Province, next month, to improve the supply volume of energy to vehicle charging stations in Seoul and neighboring cities. The Pyeongtaek base, located at the Asan Industrial Complex, some 60 kilometers south of Seoul, will have the capacity of providing 430,000 hydrogen-fueled vehicles, including commercial ones, with energy per annum, according to the Ministry of Trade, Industry and Ene

Industry July 27, 2022

South Korea entering the fog of economic uncertainty became more obvious on Tuesday with the International Monetary Fund revising down the country‘s growth forecast and figures showing that trade deficit for the export-led economy is worsening. In its latest world economic outlook report, the IMF revised down its prediction on the gross domestic product growth of Korea by 0.2 percentage point from its earlier suggestion of 2.5 percent to 2.3 percent, citing the global inflationary pressu

Economy July 26, 2022

SEJONG -- The International Monetary Fund on Tuesday forecasted that the growth of the South Korean economy would stay under 2.5 percent in 2022 and 2023, respectively, in the wake of global inflationary pressure, China’s economic slowdown and the war between Ukraine and Russia. In its latest world economic outlook report, the IMF revised down its prediction on the 2022 gross domestic product growth for South Korea by 0.2 percentage point from its earlier suggestion of 2.5 percent to 2.3

Economy July 26, 2022

SEJONG -- South Korea needs to brace for a change in trade relations with China, as industries in the global economic powerhouse are undergoing rapid development, First Vice Finance Minister Bang Ki-sun said Friday. At an economy-related vice ministerial meeting in Seoul, Bang said China’s industrial structure has showed “advancement in technologies,” adding that this has been bringing about a change in bilateral trade structure with Korea. The government will spare no effort

Economy July 22, 2022

SEJONG -- The Yoon Suk-yeol administration on Thursday unveiled a new batch of measures aimed at revamping the taxation system, including expanding corporate tax breaks and relieving the tax burden on individuals. It is the first time in 15 years for the government to push to cut income taxes to support middle- and low-income people. To encourage companies to invest and create more jobs, the government plans to slash the corporate tax ceiling to 22 percent of earnings from the current 25 percen

Economy July 21, 2022

SEJONG -- The Korean currency gained against the US dollar on Wednesday, a day after finance ministers from South Korea and the US said they could take actions like supplying liquidity for stabilization of the foreign exchange market. The price of the Korean currency climbed by 0.5 won per dollar from a trading session earlier to close at 1,312.9 won. After peaking at 1,326.1 won last Friday, the greenback fell for the third consecutive trading session. This could be attributab

Market July 20, 2022

SEJONG -- The number of Koreans who are not engaged in any economic activities after being classified as seniors has surged almost 100 percent in two decades, state data showed Monday. According to Statistics Korea, the tally for economically inactive people due to old age reached a record-high of 2.48 million as of June. “Old age” refers to those aged 65 and over, according to stipulations from the United Nations. The figure was a surge by 96.8 percent, compared to 1.26 million po

Economy July 18, 2022

SEJONG -- The government will offer policy financing worth 68 trillion won ($51 billion) to small merchants and the underprivileged on a step-by-step basis, starting from the end of July, the Finance Ministry said Friday. Government-initiated low-interest loans will be divided: 43 trillion won will go to small merchants and 25 trillion won to young people and low income households. “The government has set consumer prices and stability in people’s living conditions as the primary ad

Economy July 15, 2022

SEJONG -- The number of employed across the nation increased for the 16th consecutive month, with the tally for June climbing by more than 800,000 on-year, state data showed Wednesday. While brisk hiring continued last month, employment by age indicates that young generations still suffer a tough job market despite the normalization process from the pandemic. According to Statistics Korea, the number of employed people increased by 841,000 in June, compared to the corresponding month of 2021,

Economy July 13, 2022

SEJONG -- South Korea will resume construction of new nuclear reactors in the country's eastern industrial city of Uljin in the next two years, speeding up its nuclear energy drive announced earlier this month, the energy minister said in a briefing to President Yoon Suk-yeol on Tuesday. The construction of the Shin-Hanul No. 3 and No. 4 reactors in North Gyeongsang Province is set to begin as early as 2024, said Minister Lee Chang-yang, adding that about 130 billion won ($99 million) worth of

Economy July 12, 2022

SEJONG -- Economic policymakers on Friday unveiled a policy of adding a zero-percent quota tariff on some imported daily necessities, including livestock products, in an attempt to tame the recent spike in consumer prices. The policy drawn by a group of ministries including the Ministry of Economy and Finance, was finalized during a meeting attended by President Yoon Suk-yeol in Seoul earlier in the day. It will be implemented via enforcement ordinances later this month. According to the Finan

Economy July 8, 2022

SEJONG -- Political heavyweights from the ruling People Power Party said they would not spare any effort to overcome a variety of economic challenges during a meeting with senior government officials and presidential aides in Seoul on Wednesday. Their meeting comes as the nation’s inflation -- 6 percent in June -- hit its highest point in more than two decades. The country is also grappling with rising interest rates, which are posing a heavy burden on households. Some noteworthy re

Economy July 6, 2022