Consumer sentiment slides for 3rd month in October amid slowdown woes

South Korea's consumer sentiment slid for the third straight month in October amid woes over an economic slowdown, slumping exports and weakened spending power, a central bank poll showed Wednesday. The composite consumer sentiment index stood at 98.1 in October, down from 99.7 the previous month, marking the lowest since May this year, when the comparable figure was 98, according to the survey conducted by the Bank of Korea. A reading below 100 means pessimists outnumber optimists. The cen

Oct. 25, 2023

S. Korea formally accepts WTO deal on fisheries subsidies

South Korea's industry ministry said Tuesday the government has formally accepted an agreement by the World Trade Organization aimed at banning subsidies for illegal fishing. The agreement centers on prohibiting subsidies that contribute to overfishing and other illegal, unregulated fishing so as to ensure the sustainability of fish stocks and the industry. Following South Korea's approval, the total number of WTO members that have formally endorsed the rule reached 51, taking up 46 pe

Oct. 24, 2023

AmCham delegation to visit Washington this week

The American Chamber of Commerce in Korea said Monday its delegation will travel to Washington this week to meet with key US government officials and lawmakers. The three-day trip to the United States starting Tuesday is part of the annual business-promotion program it calls “Doorknock.” The delegation will meet with officials of the Joe Biden administration as well as members of the US Congress to share insights about US-South Korea economic ties. The AmCham Korea delegation is expe

Oct. 23, 2023

BOK chief says to keep restrictive policy for considerable time

The chief of South Korea's central bank said Monday that the bank needs to maintain its restrictive monetary policy for a considerable time as uncertainties over inflation are rising. During a parliamentary inspection, Bank of Korea Gov. Rhee Chang-yong said consumer price growth is expected to slow, but remain above the target rate of 2 percent amid increased volatility in global oil prices and currency rates following the Israel-Hamas conflict. "Given these situations, uncertainties

Oct. 23, 2023

Economy set for mild recovery, but bumpy road still ahead: BOK

South Korea's economy will post a mild recovery amid a slowdown in inflation but face heightened uncertainties amid geopolitical tensions and higher rates in major economies, the central bank said Monday. In a report to lawmakers for parliamentary inspection, the Bank of Korea said the economy will post a mild recovery into next year as a slump in exports eases, while private spending remains relatively weak. In May, the bank cut its growth projection for Asia's fourth-largest economy

Oct. 23, 2023

Exports up 4.6% during first 20 days of October

South Korea's exports rose 4.6 percent on-year in the first 20 days of October on robust shipments of cars and petroleum products, data showed Monday. The country's outbound shipments reached $33.8 billion in the Oct. 1-20 period, compared with $32.3 billion tallied a year earlier, according to the data from the Korea Customs Service. Imports rose 0.6 percent on-year to $37.6 billion during the period, resulting in a trade deficit of $3.74 billion. Exports fell for the 12th month in a

Oct. 23, 2023

BOK’s hands tied amid heightened uncertainties

Central bank holds key rate at 3.5 percent for 6th consecutive time The Bank of Korea maintained its benchmark interest rate at 3.5 percent on Thursday, amid mounting economic uncertainties provoked by tensions from the conflict between Israel and the Hamas militants. The six-member Monetary Policy Board unanimously voted to carry out its sixth rate freeze, keeping the benchmark rate steady since February. “The biggest reason behind the rate hold was the high uncertainties surrounding the

Oct. 19, 2023

BOK holds key rate steady at 3.5%

The Bank of Korea maintained its benchmark interest rate at 3.5 percent on Thursday, amid heightened economic uncertainties provoked by tension in the Middle East. Falling in line with market expectations, the central bank held the rate once again, keeping it steady since February. The BOK was pressured by rebounding inflation. Consumer prices growth in Korea stood at 3.7 percent in September and 3.4 percent in August, surging from how the figure stayed in the 2 percent range in the previous t

Oct. 19, 2023

S. Korea, Latin America to discuss ways to boost trade, ICT cooperation

Some 200 corporate and government officials from South Korea and Latin American countries will gather in Mexico this week to discuss ways to enhance bilateral trade and cooperation on advanced technology sectors and explore new business chances, Seoul's finance ministry said Wednesday. The inaugural Korea-Latin America and the Caribbean Innovation and Trade Forum will take place in Mexico City on Wednesday for a two-day run, which will be hosted by the Ministry of Economy and Finance and th

Oct. 18, 2023

S. Korean industries to see modest recovery in 2024: think tank

Most South Korean industries are likely to see a modest recovery next year, with rechargeable batteries, automobile and shipbuilding sectors expected to show robust growth, according to a think tank Wednesday. The Hana Institute of Finance stressed the need to prepare for China's slowing growth, strengthening of global environmental regulations and new technological advances that it said will have mid- and long-term effects on local industries. "Local industries are generally expected

Oct. 18, 2023

US toughens rules on exports of advanced computing chips to China

The US Department of Commerce announced a set of rules Tuesday to update and strengthen its restrictions on the export of advanced computing semiconductors to China in an apparent move to further curb China's technological advancement. The department's Bureau of Industry and Security released the rules to reinforce the export controls, which were published about a year ago to restrict China's ability to purchase and manufacture certain high-end chips critical for military advantag

Oct. 18, 2023

Fitch keeps S. Korea's credit rating at 'AA-,' outlook stable

Global credit appraiser Fitch Ratings has reaffirmed South Korea's sovereign rating at "AA-" with a stable outlook, the finance ministry said Tuesday. It is the fourth-highest level on the agency's table, and Fitch has maintained the rating of AA- since September 2012.

Oct. 17, 2023

Import prices rise for 3rd month on higher oil costs

Volatility in oil prices, currency add pressure on Korean economy South Korea's import prices climbed for a third consecutive month, increasing inflationary pressure on the economy, central bank data showed Wednesday. Export prices rose as well, but at a slower pace. The import price index for September stood at 139.67, up 2.9 percent from a month before. The figure has been on the rise for three straight months, following 4.2 percent and 0.2 percent increases in August and July, respective

Oct. 17, 2023

Korea extends fuel tax cut scheme until year's end

The Korean government will extend the current tax cut imposed on fuel until the end of the year, considering the escalated volatility in international oil prices following the renewed Israel-Hamas conflict, the Finance Ministry announced Monday. Fuel tax reductions -- namely a 25 percent cut for gasoline as well as 37 percent cuts for diesel and butane -- which were to end in October, will last two more months through the end of this year, the ministry said. Finance Minister Choo Kyung-ho assess

Oct. 16, 2023

BOK expected to stand pat this week over growth risks: experts

South Korea's central bank is expected to keep its benchmark rate unchanged at 3.5 percent for the sixth consecutive time this week, with inflation continuing to ease amid lingering concerns about growth, according to experts Sunday. According to a survey of six economic experts conducted by Yonhap News Agency, all of them said the Bank of Korea will likely decide to stand pat at its rate decision meeting Thursday. A 2 percentage-point gap between the key rates of South Korea and the United

Oct. 15, 2023

S. Korea entering 'recovery phase' amid geopolitical uncertainties: Choo

The South Korean economy is entering a "recovery phase" on the back of signs of an export rebound, while the geopolitical tension from the Middle East is emerging as a new uncertainty, the finance minister said Sunday. "We believe that chips are gradually supporting exports again," Finance Minister Choo Kyung-ho said during a meeting with reporters held on the margins of the annual International Monetary Fund and the World Bank meetings in Marrakesh, western Morocco. "Th

Oct. 15, 2023

S. Korea, UAE strike bilateral free trade agreement

South Korea and the United Arab Emirates struck a bilateral free trade agreement Saturday, which is expected to enhance bilateral trade and overall economic relations, Seoul's industry ministry said. South Korea's Trade Minister Ahn Duk-geun and the UAE's foreign trade minister, Thani bin Ahmed Al Zeyoudi, signed the joint statement on the conclusion of negotiations for the bilateral Comprehensive Economic Partnership Agreement in Seoul, according to the Ministry of Trade, Industr

Oct. 14, 2023

Choo calls for end to protectionism, supply chain recovery during G20 meeting

MARRAKESH, Morocco -- South Korea's finance minister called Saturday for concerted international efforts to end protectionism and recover supply chains to address economic challenges stemming from Russia's protracted war in Ukraine, COVID-19 and other factors. Finance Minister Choo Kyung-ho made the call during the two-day G20 Finance Ministers and Central Bank Governors Meeting held in Marrakesh, Morocco, which ended Friday, according to the Ministry of Economy and Finance. Choo calle

Oct. 14, 2023

S. Korea has 'no urgency' to cut key lending rate soon: IMF director

MARRAKESH, Morocco -- South Korea has "no urgency" to lower its key lending rate as bringing down inflation still remains a priority, a director at the International Monetary Fund said Saturday. Krishna Srinivasan, the director of the Asia and Pacific Department at the IMF, made the remarks, noting that the Bank of Korea has "appropriately" maintained a monetary policy tightening approach as inflation remains elevated above its 2-percent target. "Given the fact that infl

Oct. 14, 2023

South Korean oil payments for Iran frozen again over Hamas links

South Korea's $6 billion payment for Iranian crude oil has been frozen by the US administration again due to rising tensions regarding Iran's suspected links to the militant group Hamas, according to reports from multiple media outlets on Friday, including The New York Times. These funds were originally intended for humanitarian assistance under strict US oversight. Now held in a Qatari bank, they are caught up in a diplomatic tangle following recent Hamas-initiated hostilities against

Oct. 13, 2023