BOK to test feasibility of tokenized bank money-based voucher

South Korea's central bank said Wednesday it will test the feasibility of a digital voucher based on a tokenized deposit as part of its trial to introduce a wholesale central bank digital currency (CBDC). Along with the Financial Services Commission, the Ministry of Science and ICT, and the Bank of Korea will test the feasibility of a tokenized deposit-based voucher program for use on smartphones via a digital voucher management platform, which can be available for culture, education and ot

Nov. 6, 2024

[Herald Interview] FTA to bring Korea-Gulf ties to new level: Bahraini industry minister

MANAMA, Bahrain -- South Korea’s cooperation with the Gulf region, including Bahrain, is set to strengthen as the free trade agreement involving the two countries will take effect soon, according to a top Bahraini governmental official. "Last year, we had a trip with a big delegation to Korea. We met with many of the leading companies there,” Bahrain’s Minister of Industry & Commerce Abdulla bin Adel Fakhro told The Korea Herald during an interview held in Manama, Bahr

Nov. 5, 2024

Bahrain ready for bigger Korean presence

MANAMA, Bahrain – Strengthening its partnership with Bahrain would open a door of opportunities in the Middle East for South Korea, an investment forum held by the Gulf island nation's economic board suggested. Bahrain hosted the second edition of Gateway Gulf on Sunday and Monday. This year’s Gateway Gulf was held six years after the inaugural edition in 2018. Arranged by the Bahrain Economic Development Board, it was held under the theme of “Investing in a Rapidly Transf

Nov. 5, 2024

Consumer inflation slows to lowest level in nearly 4 years in Oct.

South Korea's consumer prices slowed to the lowest level in 45 months in October on stabilizing oil prices, staying below 2 percent for the second consecutive month, data showed Tuesday. Consumer prices, a key gauge of inflation, rose 1.3 percent on-year last month, compared with a 1.6 percent on-year increase in September, according to the data from Statistics Korea. October's figure marked the lowest level since January 2021, when consumer prices grew 0.9 percent. Consumer inflation

Nov. 5, 2024

After opposition U-turn, Korea to repeal plan for financial capital gains tax

Korea’s main opposition party reversed its plan to introduce capital gains taxes on financial investment income on Monday, putting an end to a four-year stalemate with the ruling party as the underperforming domestic stock market struggles to make a breakthrough. “We decided to agree to the abolishment of the capital gains tax, which the government and the ruling party have been pushing for,” said Rep. Lee Jae-myung, the leader of the main opposition Democratic Party, during

Nov. 4, 2024

Sharp rise seen in household credit, driven by savings banks, credit unions

South Korea's household credit increased at a faster rate in October due to rising loans from savings banks and credit unions despite the government's efforts to curb household debts, financial data showed Sunday. Outstanding household credit extended by all financial institutions, including commercial banks, savings banks, and insurance and securities firms, rose by 6 trillion won ($4.35 billion) from a month earlier in October, accelerating from a 5.2 trillion-won increase in Septemb

Nov. 3, 2024

Hankook & Co. formalizes deal for Hanon System, joins Korea's top 30 biz groups

Hankook & Co., the holding firm of Korea's largest tire maker Hankook Tire & Technology, announced Friday that it has signed a definitive agreement to acquire a stake in Seoul-based automotive parts supplier Hanon Systems. Under the agreement, Hankook & Company will purchase a 23 percent stake in Hanon Systems from private equity firm Hahn & Co. for approximately 1.23 trillion won, finalizing the deal about six months after the two companies signed a memorandum of understand

Nov. 1, 2024

Exports rise 4.7% in Oct. to extend gains to 13th straight month

South Korea's exports extended on-year gains to the 13th straight month in October, data showed Friday, on the back of the robust performance of semiconductors. Outbound shipments rose 4.6 percent on-year to $57.5 billion last month, according to the data compiled by the Ministry of Trade, Industry and Energy. Imports added 1.7 percent on-year to $54.3 billion, resulting in a trade surplus of $1.62 billion. South Korea has been maintaining a trade surplus for 17 consecutive months. Exports

Nov. 1, 2024

Industrial output falls 0.3% on weak chip production in Sept.: data

South Korea's industrial output fell from a month earlier in September on dwindling production in the semiconductor and other manufacturing sectors, data showed Thursday. Retail sales, a gauge of private spending, also went down amid signs of weaker economic growth, while facility investment rebounded on-month, according to the data compiled by Statistics Korea. Industrial production fell 0.3 percent on-month, following a 1.2 percent increase in August. In on-year terms, industrial output w

Oct. 31, 2024

Korea downplays impact of US investment ban on Chinese tech

Korean authorities expect the United States’ decision to ban outbound investments in artificial intelligence and other technology sectors in China to have a limited impact on South Korea's economy. On Monday, the Biden administration said it finalized rules that will bar US funds from flowing into Chinese technology such as quantum information technologies, AI systems and advanced microelectronics due to national security concerns. The new rules, directed by an executive order signed

Oct. 29, 2024

Asia-Pacific tax chiefs gather in Seoul to bolster cooperation

The Asia-Pacific region’s largest annual tax administration meeting launched Tuesday in Seoul, bringing together top tax officials from 18 countries to advance tax administration and bolster international cooperation. The 53rd annual meeting of the Study Group on Asia-Pacific Tax Administration and Research opened at Shilla Hotel in central Seoul, hosted by South Korea's National Tax Agency. This is the fourth time Korea has hosted this gathering, and the first since 2013. Around 180

Oct. 29, 2024

Finance minister vows swift response to 'unwarranted' volatility amid global uncertainties

Finance Minister Choi Sang-mok vowed Monday to enhance market monitoring and to swiftly respond to excessive volatility under contingency plans amid weaker growth data and global uncertainties, his office said. Choi made the remarks during an economy-related ministers' meeting in Seoul after the gross domestic product expanded 0.1 percent on-quarter in the July-September period, lower than market expectations. "The government will pay extra attention to signs of economic uncertainties

Oct. 28, 2024

S. Korea to utilize up to W16t of state funds amid massive tax revenue shortfall

The finance ministry said Monday that the government will utilize foreign exchange equalization funds and other resources available while slashing local subsidies to deal with the expected massive tax revenue shortfall this year. The government is projected to collect 337.7 trillion won ($253.41 billion) in taxes in 2024, an 8.1 percent, or 29.6 trillion won, fall from its forecast made in the 2024 budget planning due mainly to weak corporate activities amid an economic slowdown last year, accor

Oct. 28, 2024

KB posts record Q3 earnings, vows higher shareholder returns

KB Financial Group reported record third-quarter profits driven by increased interest revenues from expanded loans while announcing a plan to enhance shareholder returns linked to its financial stability. The group posted a net profit of 1.61 trillion won ($1.17 billion), a 17.5 percent on-year increase, marking its best performance for the third quarter to date. Cumulatively, the year-to-date net profit reached 4.4 trillion won, up 0.4 percent from the previous year. However, compared to the

Oct. 24, 2024

South Korea to lead Japan, Taiwan in GDP per capita: IMF

South Korea’s gross domestic product per capita is projected to continue its lead over Japan and Taiwan in 2024, according to International Monetary Fund data. In its “World Economic Outlook,” released on Monday, the IMF forecasted Korea's GDP per capita to rise this year to $36,132, which would be an increase of 1.6 percent from last year’s $35,563. The figure for Japan is expected to decline from last year by 3.1 percent to $32,859, while Taiwan is forecast to reco

Oct. 24, 2024

Korea's economic growth slows in Q3 on weaker exports

South Korea’s economy has grown by 0.1 percent in the third quarter from the prior quarter, undershooting forecasts by big margins due to unexpectedly slowed exports, according to preliminary data from the Bank of Korea on Thursday. The country's real gross domestic product -- a key measure of economic growth -- expanded 0.1 percent on-quarter in the July-September period, missing the 0.5 increase forecast by the central bank in August. This is a red flag for Asia’s fourth-large

Oct. 24, 2024

[Contribution] SGATAR in Seoul: NTS driving cooperation in tax administration

By Choi Jae-bong, Vice Commissioner of National Tax Service Nestled in the southeastern corner of France lies the small sovereign state of Monaco, a tranquil city-state renowned for actress Grace Kelly and Formula 1 racing. However, in 1962, this peaceful city-state found itself at the center of a tense standoff along its borders due to a conflict over taxation between French tax authorities and taxpayers. Taking advantage of the fact that Monaco has no income tax, many French taxpayers sought

Oct. 23, 2024

S. Korea to maintain close communication with global investors ahead WGBI inclusion

Finance Minister Choi Sang-mok has said South Korea will maintain close communication with global investors to ensure the country's successful debut in a key global government bond index managed by FTSE Russell. Choi made the remark during his meeting in New York with representatives from major U.S. investment companies on Tuesday, noting that South Korea's inclusion in the World Government Bond Index reflects global recognition of its efforts to improve the investment environment. &qu

Oct. 23, 2024

Fuel tax cut to be extended by 2 months with adjustments

The finance ministry said Wednesday it will extend the tax cut on fuel by another two months with some adjustments amid the ongoing Middle East crisis. Under the decision, South Korea will apply a 15 percent discount on gasoline consumption and a 23 percent cut on diesel and liquefied petroleum gas, according to the Ministry of Economy and Finance. South Korea has been applying a 20 percent discount on gasoline consumption and a 30 percent discount on diesel and liquefied petroleum gas, which we

Oct. 23, 2024

KEF chief meets with EU ambassadors to beef up economic ties

Member companies of the Korea Enterprises Federation met with ambassadors of the European Union on Tuesday to elevate economic cooperation and discuss strategies for embracing the shift in the labor market induced by industrial restructuring. Top officials from 23 EU member nations’ embassies in Korea, including Maria Castillo Fernandez, the ambassador of the EU, attended the business roundtable event hosted by the KEF held at a hotel in Seoul on Tuesday. Sohn Kyung-shik, chairman of the

Oct. 22, 2024