BOK likely to hold key rate steady as inflation eases

The Bank of Korea is expected to keep its key interest rate unchanged this week as recent economic indicators show signs of waning inflation. If the central bank maintains the policy rate at 3.5 percent at its rate-setting meeting scheduled to take place on Thursday, it would be its fourth consecutive freeze since February. Signs of inflation cooling have created room for the BOK to keep the rate at the same level. Korea’s consumer prices, a key gauge of inflation, rose by 2.7 percent in

July 10, 2023

S. Korea's current account returns to black in May

South Korea's current account returned to the black in May on the back of a trade surplus and increased dividend payments from overseas, central bank data showed Friday. The country's current account surplus reached $1.93 billion in May, swinging from a deficit of $790 million a month earlier, according to the preliminary data from the Bank of Korea. May's surplus came as the country logged a trade surplus and the service account deficit narrowed. The primary income account, which

July 7, 2023

S. Korea removes tariffs on naphtha imports

South Korea has removed tariffs on imports of naphtha and crude oil used to produce the material, the finance ministry said Thursday, in line with efforts to support the local petrochemical industry. Under the measure, the tariffs on all naphtha imports will be lowered to zero through the end of 2023 immediately, compared with the current 0.5 percent, according to the Ministry of Economy and Finance. Those on crude oil used to produce naphtha will also be lowered to zero for the amount not excee

July 6, 2023

S. Korea's overseas plant orders jump 40.2% in H1

Overseas orders for industrial plants won by South Korean builders spiked more than 40 percent on-year in the first half of 2023 on brisk demand from the Middle East and Africa, data showed Thursday. Local builders clinched $13.05 billion worth of plant orders from abroad in the January-June period, up 40.2 percent from a year earlier, according to the commerce ministry data. The first-half jump came as orders from Middle Eastern and African countries shot up from a year earlier. Plant orders fr

July 6, 2023

[Photo News] Foreign reserves up in June

An official sorts dollar bundles at a Hana Bank branch in Seoul, Wednesday. As the US dollar weakens, Korea's foreign reserves amounted to $421.45 billion as of end-June, up $470 million from the previous month. The dollar's fall boosted the converted value of holdings denominated in other currencies such as the euro and pound. Financial institutions' foreign currency holdings also went up, the Bank of Korea explained.

July 5, 2023

S. Korea, India discuss industry, economic cooperation

South Korea's top trade official met with an Indian industry delegation in Seoul on Wednesday for talks on ways to expand bilateral economic and industry ties, Seoul's industry ministry said. Trade Minister Ahn Duk-geun met with the visiting delegation led by Sanjiv Puri, president designate of the Confederation of Indian Industry, and discussed how to enhance cooperation on the overall economy and major industry sectors, according to the Ministry of Trade, Industry and Energy. Two-way

July 5, 2023

Korea lowers growth outlook to 1.4% on slow recovery

The Korean government revised down its economic growth rate projection to 1.4 percent on Tuesday, as the exports sector struggles to rebound, delaying the economy's recovery to next year. The revision came as the Finance Ministry and other related ministries announced economic policy measures for second half of this year. The gross domestic product growth forecast was cut from the previous 1.6 percent to 1.4 percent. The ministry initially suggested that the Korean economy would see a rebou

July 4, 2023

S. Korea's consumer prices up 2.7% in June, slow for 5th month

South Korea's consumer price growth slowed for the fifth straight month in June, falling below 3 percent for the first time in 21 months, data showed Tuesday. Consumer prices, a key gauge of inflation, rose 2.7 percent last month from a year earlier, compared with a 3.3 percent increase tallied in May, according to the report from Statistics Korea. It also marked the first time for the on-year growth in consumer prices to fall below 3 percent since September 2021, the data showed. The price

July 4, 2023

Korean investors snap up Japanese stocks amid yen weakness

Korean investors have poured money into Japanese stocks this year, taking advantage of a weaker yen and the roaring Japanese stock market, according to data from the Korea Securities Depository on Monday. In recent months, the Korean currency has been traded in the 900 won range against 100 Japanese yen, as the Bank of Japan continues to maintain negative rates to spur the local economy. Backed by the record low yen, more local investors are scooping up Japanese shares. The KSD data showed that

July 3, 2023

Hana seeks to foster financial talent in Indonesia

Hana Financial Group said Monday it is working together with Binus University, a prestigious private university in Indonesia, to foster global talent in the financial sector. Under the partnership agreement signed in Seoul on Friday, Hana Financial Group will provide opportunities for Indonesian university students to work as interns at Hana offices starting in the second half of this year. Binus University plans to operate the International Talent Pool Management program, which provides credits

July 3, 2023

S. Korea's exports to US up 5.5% per year for 10 years under KORUS FTA

South Korea's exports to the United States rose more than 5 percent per year on average over the past decade thanks to the 2012 bilateral free trade agreement, compared with a 1.5 percent increase in the country's overall exports, a think tank said Monday. South Korea's shipments to the US jumped to $96.3 billion in 2021 from $56.4 billion in 2011, marking a yearly 5.5 percent growth on average, according to the Korea Institute for International Economic Policy. During the period,

July 3, 2023

[KH Explains] Korea’s economic recovery slower than hoped

Though Korea’s sluggish economy was initially expected to improve in the latter half of the year, the recovery is slowing, as the country struggles with a prolonged export slump. The Finance Ministry is likely to lower slightly the economic growth rate forecast for 2023 from the previous 1.6 percent when it announces economic policy measures for the second half of the year on Tuesday. The Korean economy was initially expected to rebound in mid-2023 when China’s economy reopened and t

July 2, 2023

S. Korea swings to trade surplus in June; decline in exports eases

South Korea reported a trade surplus in June for the first time in 16 months, but its outbound shipments fell for the ninth consecutive month due mainly to weak demand for semiconductors, the industry ministry said Saturday. Outbound shipments fell 6 percent on-year to $54.24 billion last month, according to the data compiled by the Ministry of Trade, Industry and Energy. The decline came as exports of semiconductors, the country's key export item, sank 28 percent on falling demand and a

July 1, 2023

BOK sells net $2.1 billion in market-smoothing operations in Q1

The Bank of Korea said Friday it sold a net $2.1 billion in the first quarter of the year to help ease the decline of the local currency against the US dollar. The first-quarter dollar selling marks the seventh straight quarter of dollar selling for market smoothing operations since the third quarter of 2021, according to the central bank. The selling of US dollars in the first quarter came as the US Federal Reserve’s rate hikes sharply depreciated the value of the local currency, accordin

June 30, 2023

Tax revenue down W36.4tr through May

South Korea's tax revenue fell 36.4 trillion won ($27.6 billion) in the first five months of 2023 from a year earlier, data showed Friday, on weaker corporate performance and a slump in the local property market. Tax revenue amounted to 160.2 trillion won during the January-May period, down from 196.6 trillion won tallied a year earlier, according to the Ministry of Economy and Finance. In May alone, the government collected 26.2 trillion won in taxes, down 2.5 trillion won from the previou

June 30, 2023

Industrial output up in May, along with private spending, facility investment

South Korea's industrial output rose 1.3 percent in May from a month earlier, data showed Friday, with retail sales and facility investment gaining ground as well. The latest growth marks a sharp turnaround from a 1.3 percent on-month drop tallied in April, according to the data from Statistics Korea. The output in the mining, manufacturing, gas and electricity industries moved up 3.2 percent over the period on the back of the robust performance of the automobile and chip segments, which ad

June 30, 2023

Yoon's office welcomes S. Korea-Japan currency swap deal

The office of President Yoon Suk Yeol welcomed the resumption of a currency swap deal between South Korea and Japan on Thursday, saying it shows the two countries' relationship is improving also in the financial sphere. The US$10 billion currency swap deal was agreed between Finance Minister Choo Kyung-ho and his Japanese counterpart, Shunichi Suzuki, in Tokyo earlier in the day, restoring an arrangement that was terminated in 2015 amid strained bilateral ties. "The resumption of the

June 29, 2023

Korea, Japan revive $10b currency swap

South Korea and Japan agreed to resume a $10 billion currency swap deal after an eight-year suspension, showing bilateral economic ties are on a path of recovery. Finance Minister Choo Kyung-ho met with his Japanese counterpart Shunichi Suzuki in Tokyo on Thursday. It was the first time since 2016 for the top finance heads of Korea and Japan to hold an official one-on-one meeting. The new currency swap program will last three years and be based on the US dollar. A currency swap deal allows the e

June 29, 2023

S. Korea eyes W100tr of investment in free economic zones by 2032

South Korea seeks to attract 100 trillion won ($76.55 billion) of investment in the country's free economic zones and create 450,000 jobs there by 2032 to make them global hubs of advanced industries and businesses, the industry ministry said Thursday. Under the draft of the comprehensive 10-year development plan, the government aims to attract the investment from domestic and foreign entities in key leading sectors and build smart, eco-friendly international cities in cooperation with muni

June 29, 2023

Biz outlook worsens for July amid economic uncertainties

South Korea's business sentiment slightly fell for July amid continued uncertainties over the economy and monetary tightening here and abroad, a central bank poll showed Thursday. Local companies' business sentiment index for July came to 75, down from 76 tallied for the previous month, according to the survey by the Bank of Korea. The index measures corporate prospects for business conditions the following month. A reading below 100 means pessimists outnumber optimists. The worsened o

June 29, 2023