S. Korea's trade balance expected to improve after May: finance minister

South Korea's finance minister said Monday the country's trade balance could improve after May and he expects a gradual recovery of tax revenue down the road as well. "After May, South Korea's trade deficit will decrease, and we can anticipate a completely different performance in the fourth quarter," Finance Minister Choo Kyung-ho told lawmakers during a parliamentary session. The remark came after South Korea's exports fell 16.1 percent on-year in the first 20 day

May 22, 2023

Exports down 16.1% during first 20 days of May

South Korea's exports fell 16.1 percent on-year in the first 20 days of May due to a prolonged slump in the global chip industry, data showed Monday, with the country's outbound shipments set to lose ground for seven consecutive months. The country's outbound shipments stood at $32.4 billion in the May 1-20 period, compared with $38.6 billion a year earlier, according to the data from the Korea Customs Service. Imports shed 15.3 percent on-year to $36.7 billion during the cited period, resulting

May 22, 2023

How rich is the top 1% in Korea?

People in South Korea's top 1 percent net asset bracket had at least around 3 billion won ($2.26 million) in net assets in 2021, according to a local insurance firm’s report, Sunday. Net assets refer to the value of a person’s assets such as houses, cars, investments and cash, minus liabilities. According to Hanwha Life Insurance, individuals who had more than 2.9 billion won in net assets sat in the top 1 percent net asset bracket, while the threshold for the 0.1 percent bracke

May 21, 2023

[KH Explains] BOK may opt for another rate freeze

The Bank of Korea is likely to maintain the current base interest rate at its next rate-setting meeting on Thursday, going for a third consecutive rate freeze amid waning inflation and a sluggish economy. The market expects the central bank to maintain the key rate at 3.5 percent, following two previous rate freezes in February and April. Inflation has been coming down in Korea. The consumer price index, a barometer of inflation, showed a 3.7 percent on-year increase in April, falling into the 3

May 21, 2023

Finance minister discusses bilateral ties with Chinese envoy

Finance Minister Choo Kyung-ho met with Chinese Ambassador to South Korea Xing Haiming on Friday to discuss economic ties and other bilateral issues, his office said. During the meeting, Choo expressed hope that South Korea and China can continue economic cooperation based on mutual respect and interests, according to the Ministry of Economy and Finance. The finance minister also requested China's support for the preparation of the bilateral economic ministerial meeting scheduled to be held

May 19, 2023

Korea bets on potential of advanced display technologies

The South Korean government is seeking to push the growth of cutting-edge display technologies, providing aggressive support such as hefty tax cuts and deregulation. “Displays will be designated as a national advanced strategic technology to encourage private investments, ensuring a stable supply network while supporting policy financing, research and development, and training,” Finance Minister Choo Kyung-ho said at a governmental meeting held in central Seoul on Wednesday. He added

May 17, 2023

S. Korea to up seafood exports to $4.5b by 2027

South Korea will penetrate deeper into the global seafood market with the goal of exporting $4.5 billion worth of goods in the sector by 2027, the oceans ministry said Wednesday. The amount represents around a 50 percent rise from a record high of $3.15 billion tallied in 2022, on the back of the global popularity of "gim" and abalone, according to the Ministry of Oceans and Fisheries. Gim, or dried seaweed, is usually roasted with sesame oil and fine salt, and served as a side dish in

May 17, 2023

Closer ties with US, Japan key to geo-economic challenges

South Korea needs to strengthen its trilateral alliance with the United States and Japan in trade and investment to overcome global geo-economic challenges and supply chain disruptions triggered by COVID-19, said Jun Kwang-woo, chairman of the Institute for Global Economics. The COVID-19 pandemic and the war in Ukraine have increasingly polarized the world economy, which centers around the US and China. This caused a shift in the global economic paradigm, leading to closer links between nati

May 16, 2023

Electricity bills to rise by 5.3% as Kepco battles mounting losses

Electricity rates and gas prices in South Korea will increase by 5.3 percent from Tuesday, to ease the financial burden of cash-strapped state-run energy companies. The electricity rate will go up by 8 won ($0.006) per kilowatt-hour and the gas rate by 1.04 won per megajoule, the government announced Monday. The hiked rates take effect from Tuesday, but will not be applied retroactively. This means that a four-person household that uses an average amount of electricity and gas will have to pay

May 15, 2023

Container freight rates for major destinations fall on-month in April

Outbound container shipping costs for major destinations, including the US west coast and the European Union, slipped in April from a month earlier, data showed Monday. The average rate for a 40-foot container from Asia's fourth-largest economy to the US west coast reached 4.84 million won ($3,610) last month, down 5.3 percent from March, according to the data from the Korea Customs Service. Compared with the previous year, the cost was down 64.4 percent. The data is based on freight rates

May 15, 2023

S. Korea to hike Q2 electricity, gas rates on high costs, losses

South Korea will raise second-quarter electricity rates and gas prices on high global energy costs and mounting losses of the state utility companies, the industry ministry said Monday. The government will jack up the electricity rates for consumer and industrial use by 8 won ($0.01) per kilowatt hour for the April-June period, compared with a 13.1 won increase per kWh in the first quarter of this year, according to the Ministry of Trade, Industry and Energy. The fee hike is estimated to cost a

May 15, 2023

Jobs for 40-somethings fall for 10th month amid manufacturing slump

The number of jobs for people in their 40s in South Korea decreased for the 10th consecutive month in April, data showed Sunday, amid the protracted slump in the country's manufacturing industry. Jobs for the age group have been falling on-year since July, with the positions decreasing 22,000 from a year earlier in April, according to the data compiled by Statistics Korea. South Korea added 816,000 jobs annually in 2022, with the addition maintaining growth through April on the back of the

May 14, 2023

Choo highlights role of MDBs in tackling poverty in developing nations

South Korean Finance Minister Choo Kyung-ho emphasized the importance of multilateral development banks' role in tackling poverty in developing nations at a Group of Seven ministerial meeting, the ministry said Saturday. Choo made the remark during a session at the G-7 Finance Ministers and Central Bank Governors' Meeting in Niigata, northwest of Tokyo, which closed Saturday after a three-day run, according to the Ministry of Economy and Finance. Asia's No. 4 economy participate

May 13, 2023

Economic slowdown continues on weak exports, manufacturing performance: govt.

South Korea's finance ministry said Friday the country's domestic consumption has been showing a steady recovery, but the economy has continued to slow due to sluggish exports and facility investment. "Recently, inflation has been slowing in South Korea, with the domestic consumption also posting a rebound," the Ministry of Economy and Finance said in a report. In April, the country's inflation grew 3.7 percent on-year, marking its slowest pace in over a year. The minist

May 12, 2023

S. Korea to issue travel coupons to boost domestic consumption

South Korea's finance ministry said Friday the government will issue a set of coupons for local accommodations and tour packages in line with efforts to boost domestic consumption. The move came a day after President Yoon Suk Yeol declared an end to almost all COVID-19 restrictions in the latest step to return to pre-pandemic normalcy. Under the measure, the government plans to offer 30,000-won ($22.50) coupons that can be used at local accommodations, along with a 30 to 50 percent discount

May 12, 2023

KDI slashes Korean economy's growth rate to 1.5% for 2023

The Korea Development Institute, a South Korean state-run think tank, lowered the nation’s growth rate for 2023 to 1.5 percent from 1.8 percent in its previous outlook due to weak exports. The KDI projected Korea's economy will grow by 0.9 percent in the first half of 2023. It is expected to see 2.1 percent growth in the latter half of the year provided that the Chinese economy picks up and the semiconductor industry recovers from its slump. In the previous projection given in Febru

May 11, 2023

Exports down 10.1 % during first 10 days of May

South Korea's exports fell 10.1 percent on-year in the first 10 days of May, data showed Thursday, amid the prolonged downcycle of the global semiconductor industry. The country's outbound shipments stood at $14.5 billion in the May 1-10 period, compared with $16.1 billion a year earlier, according to the data from the Korea Customs Service. Imports shed 5.7 percent on-year to $18.7 billion during the cited period, resulting in a trade deficit of $4.2 billion. In April, South Korea

May 11, 2023

S. Korea's current account logs first Q1 deficit in 11 years

South Korea’s current account balance in the first three months of 2023 posted a deficit for the first time in 11 years due to sluggish exports, Bank of Korea data showed Wednesday. Though the country posted a current account surplus in March, the first quarter recorded a deficit of $4.46 billion due to a record-high deficit of $4.21 billion in January, followed by $520 million in February. It was the first time the quarterly figure went into the red since the first quarter of 2012. The sl

May 10, 2023

Job additions slow in April amid higher borrowing rate, economic slowdown

SEJONG -- South Korea's job additions slowed in April after a brief rebound a month earlier, data showed Wednesday, amid higher borrowing costs and an economic slowdown, with most new positions taken by seniors. The number of employed people came to 29.23 million in April, up around 354,000 from a year earlier, according to the data compiled by Statistics Korea. In April 2022, the country added 865,000 jobs on-year. South Korea's monthly job additions had been slowing for nine consecut

May 10, 2023

S. Korea logs current account surplus in March

South Korea logged a current account surplus in March as a goods account deficit and dividend payments overseas narrowed amid an extended slump in exports, central bank data showed Wednesday. The country's current account surplus reached $270 million in March, swinging from a shortfall of $520 million, according to the preliminary data from the Bank of Korea. In January, the country also suffered a record deficit of $4.21 billion amid an extended decline in outbound shipments. Consequently, the

May 10, 2023