SEJONG -- The Cabinet on Tuesday approved the administration’s energy policy direction, which is aimed at raising the share of nuclear energy out of the nation’s total power generation from the current level of 27.4 percent. According to the Ministry of Trade, Industry and Energy, the administration has set the goal of raising the share of nuclear power generation to 30 percent or more by 2030. The Yoon Suk-yeol administration’s energy policy direction invalidates that of the

Economy July 5, 2022

SEJONG -- The Yoon Suk-yeol administration is considering revising the law on foreign exchange transactions for the first time since it was legislated 23 years ago, officials said Monday, drawing market eyes to whether the government would be granted the authority to impose financial sanctions on overseas traders “independently.” Under the current law, the Korean government is only entitled to apply sanctions in accordance with the international community’s joint moves toward

Economy July 4, 2022

SEJONG -- South Korea posted a record-high trade deficit during the first half of 2022 in the wake of a spike in import prices of raw materials, state data showed Friday. According to the Ministry of Trade, Industry and Energy, the nation’s exports recorded $350.3 billion during the January-June period, up 15.6 percent compared to the corresponding period of 2021. Imports increased by 26.2 percent on-year to post $360.6 billion. This brought about a trade deficit of $10.3 billion, which

Economy July 1, 2022

SEJONG -- Economic policymakers on Thursday designated 14 state-run companies as a group targeted for special control, citing their “risky” financial status. The companies included the Korea Electric Power Corp., the Korea Railroad Corp., the Korea National Oil Corp. and the Korea Land & Housing Corp., according the Ministry of Economy and Finance. Among the 14 state-run firms, nine showed worsened profitability to a certain extent, while five were weak in terms of financial so

Economy June 30, 2022

SEJONG -- South Korea has recently carried out a senior-level promotion in the Czech Republic for its nuclear energy technologies in an attempt to win a reactor project in the European nation, the Energy Ministry said Wednesday. The core of promotion activities was Minister of Trade, Industry and Energy Lee Chang-yang’s meetings with Czech senior officials and political heavyweights in Prague on Tuesday.   In a meeting with his counterpart Jozef Sikela, Lee commented on details on Ko

Economy June 29, 2022

SEJONG -- The nation’s fiscal chief on Tuesday called for employers to refrain from excessively raising wages, stressing that a sharp pay raise could possibly fan consumer prices growth. Deputy Prime Minister and Finance Minister Choo Kyung-ho expressed the worries during his meeting with business leaders, including Korea Enterprises Federation and CJ Group Chairman Sohn Kyung-shik, in Seoul. “There have been drastic pay raises in the information technology-oriented firms and some

Economy June 28, 2022

SEJONG -- Economic policymakers on Friday said they would ramp up pressure on gas stations in a bid to ease inflationary pressure from surging energy costs, as soon as an expanded fuel tax cut goes into effect next week. The government announced last week that it would further increase tax cuts on fuel consumption from the current 30 percent to 37 percent, the maximum legal cap. “In consultation with the oil refinery industry, (the government) plans to induce a cut in supply prices for g

Economy June 24, 2022

SEJONG -- The Yoon Suk-yeol administration on Tuesday unveiled the first batch of its real estate measures that offer lowering tax burdens for first-time homeowners and expanding tax deductions for tenants, taking the first step to realize its campaign pledge to “normalize” the housing market. The government will come up with detailed measures for the supply of 2.5 million homes and more no later than August.　 At a joint briefing, First Vice Minister of Economy and Finance Bang Ki

Economy June 21, 2022

SEJONG -- South Korea will embark on discussions and debates on extending the retirement age from the current 60, under the Yoon Suk-yeol administration’s economic policy approach to cope with workforce shortages caused by demographic change. In a comprehensive plan on the economy unveiled last week, the government said it would foster a “task force to take countermeasures against workforce shortages,” which will comprise relevant ministries, think tanks and private researcher

Economy June 20, 2022

SEJONG -- South Korea far outstripped the average of the Organization for Economic Cooperation and Development in the ratio of inheritance and gift tax revenues to gross domestic product, a local think tank said Friday. In a report, the Korea Economic Research Institute said Korea posted 0.5 percent in the ratio of revenue from inheritance and gift tax to GDP, which placed the nation at No. 3 among the OECD members as of 2020. While the institute said the level was higher by 0.3 percentage poi

Economy June 17, 2022

SEJONG -- The Yoon Suk-yeol administration on Thursday unveiled a five-year plan to pursue a business-friendly and market-oriented economy by carrying out intensive deregulatory measures and alleviating the corporate tax burden. In a major shift from the previous administration‘s liberal agenda of an income-driven economy, the new government also vowed to minimize state intervention in the market. In addition, the plan includes a series of reforms, such as restructuring the national pensi

Economy June 16, 2022

SEJONG -- The number of people employed in South Korea increased by more than 900,000 in May from a year earlier, which marked the largest job increase in 22 years for that month. But figures showed that men in their 60s or older made up more than 30 percent (32.4 percent) of the total increase, state data showed Wednesday. According to Statistics Korea, the number of jobs came to 28.48 million as of last month, up 935,000 on-year. This posted the largest growth since May 2000, when an increas

Economy June 15, 2022

SEJONG -- South Korea’s trade deficit, posted over the past five months on a cumulative basis, expanded during the first 10 days of June due to a decline in exports as well as a spike in import prices of raw materials including crude. The nation’s exports fell more than 12 percent during the June 1-10 period, compared to the same period of 2021, while imports increased by more than 17 percent, state data showed Monday. Korea recorded a trade deficit of $5.59 billion for the first 1

Economy June 13, 2022

SEJONG -- Gasoline prices in South Korea are likely to hit an all-time high in the coming weeks in the wake of another spike in international crude prices, with prices climbing for more than 30 consecutive days. According to the Korea National Oil Corp., the nation’s benchmark gasoline price reached 2,055.11 won ($1.62) per liter on Friday. After posting 1,931.86 won on May 6, its price tag rose for the 35th consecutive day. Some market insiders are issuing the possibility that the price

Economy June 10, 2022

SEJONG -- The nation’s fiscal chief said Thursday that the Ministry of Economy and Finance will unveil the economic policy direction of the Yoon Suk-yeol administration next week, which highlights a full-fledged deregulation scheme for businesses as well as measures to tame inflation. At a ministerial meeting at the government complex, Deputy Prime Minister and Finance Minister Choo Kyung-ho commented on the external uncertainty, which involves a slowdown in global economic recovery and p

Economy June 9, 2022