BOK keeps rate at 3.5%, cuts growth projection to 2.4%

The Bank of Korea kept the base rate steady at 3.5 percent Thursday while slashing the projection for economic growth by 0.1 percentage point to 2.4 percent due to slow domestic demand. All members of the monetary policy board agreed on the rate freeze. Of the six members, excluding BOK Gov. Rhee Chang-yong, four suggested leaving room for a rate cut within the next three months, according to Rhee. With the rate decision, the BOK has kept the rate steady for the 13th straight time since it raise

Aug. 22, 2024

S. Korea will expand free trade deals with emerging markets: PM

Prime Minister Han Duck-soo said Thursday that South Korea will push to expand free trade agreements (FTAs) with emerging markets in Asia and Africa to boost the export-driven economy and enhance supply chain resilience. Han unveiled the trade policy road map during a ministerial meeting to address challenges from the rapidly changing global trade environment and supply chain disruptions. "We will expand the FTA network in major emerging markets, including Asia and Africa, to support local

Aug. 22, 2024

Top financial regulator highlights need to overhaul credit payment system

The chief of the financial regulator on Thursday emphasized the need to reform the country's online payment system following massive payment delays at two e-commerce platforms. Kim Byoung-hwan, head of the Financial Services Commission, said the government will also seek to establish new regulations governing payment gateway (PG) service providers. "The recent TMON and WeMakePrice incident was a problem that occurred under the complex payment system in a newly emerging industry such as

Aug. 22, 2024

'Vast majority' of Fed policymakers signal likelihood of September rate cut: minutes

The "vast majority" of the US Federal Reserve's policymakers indicated it might be appropriate to start lowering the benchmark interest rate next month should progress on inflation continue, the minutes of the central bank's monetary policy meeting last month showed Wednesday. The Fed released the minutes of the Federal Open Market Committee meeting on July 30-31. At the meeting, the bank held its key rate at the 5.25 to 5.50 percent range for an eighth consecutive time, but

Aug. 22, 2024

Exports rise 18.5% from Aug. 1-20 on strong chip demand

South Korea's exports increased 18.5 percent on-year in the first 20 days of August, data showed Wednesday, on the back of solid outbound shipments of chips. Outbound shipments reached $33.1 billion in the Aug. 1-20 period, compared with $27.9 billion tallied a year earlier, according to the data from the Korea Customs Service. Imports grew 10.1 percent on-year to $34.6 billion during the period, resulting in a trade deficit of $1.47 billion. By sector, exports of semiconductors jumped 42.5

Aug. 21, 2024

Fuel tax cut to be extended by 2 months on Middle East tensions

The finance ministry said Wednesday it will extend the tax cut on fuel for automobiles by another two months until the end of October as concerns linger over the Middle East crisis. South Korea has been applying a 20 percent discount on gasoline consumption and a 30 percent discount on diesel and liquefied petroleum gas consumption, which were supposed to expire at the end of this month. While the country previously applied a 25 percent and a 37 percent cut on gasoline and diesel prices, respect

Aug. 21, 2024

Percentage of younger employees drops at major Korean companies: report

Major South Korean companies are seeing an increase in the percentage of employees aged 50 or older, while that of employees in their 20s is declining, a recent report by corporate analysis firm Leaders Index showed Tuesday. The firm analyzed 2021-23 data of 141 companies among the top 500 in the country in terms of sales, compiling the report on 123 companies that also revealed the ages of their employees. The total number of employees at those companies went from 1.38 million in 2021 to 1.42 m

Aug. 20, 2024

Bankers better paid than Samsung, Hyundai Motor workers

The average earnings of bankers at South Korea's four major banks in the first half of this year amounted to 60.5 million won ($45,300), surpassing the pay at some of the country's largest companies. According to recent public disclosures reported by the banks to the Financial Supervisory Service, Hana Bank led the pack, offering 67 million won on average to its employees over the first six months. KB Kookmin Bank and Woori Bank followed at 60 million won each, while Shinhan Bank provi

Aug. 19, 2024

More young Koreans give up on finding a job

The number of young people not in education, employment or training was the highest last month for any July on record, revealing South Korea’s deepening troubles in the labor market. The number of NEET Koreans between the age of 15 and 29 who were not actively seeking work stood at 443,000 in July, up 42,000 on-year, according to data from Statistics Korea. The figure had stayed below 300,000 between 2013 and 2017, before surpassing it in 2018. It peaked at 441,000 in 2020 amid the COVID-1

Aug. 18, 2024

Top financial regulators of Seoul, Tokyo to meet next month

The top financial regulators of South Korea and Japan are set to meet next month. Korea’s Financial Services Commission Chairman Kim Byoung-hwan is scheduled to meet with Hideki Ito, commissioner of Japan’s Financial Services Agency, in Tokyo in September, according to the FSC on Friday. This marks the first meeting between the newly appointed financial chiefs since both assumed their positions in July. The upcoming bilateral talks follow the revival of the regular meetings between K

Aug. 16, 2024

AmCham seminar offers insight on US work visa

The American Chamber of Commerce in Korea hosted a seminar on Wednesday at the IFC Forum in Yeouido, Seoul, offering an in-depth overview of the US work visa process. The event focused on providing essential information about US work visas, including the visa categories, their specific requirements and permitted business activities under each visa type. Experts from various fields also offered insights for corporations and individuals looking to expand into the US market, addressing challenges a

Aug. 14, 2024

Job additions rise over 100,000 for first time in 3 months

South Korea added more than 100,000 jobs for the first time in three months in July, but jobs in the construction sector fell by the most in 11 years amid a slowdown in the industry, data showed Wednesday. The number of employed people came to 28.86 million last month, up 172,000 from a year earlier, according to the data compiled by Statistics Korea. It marked the first time in three months that the monthly job additions bounced back to over 100,000. In June, 96,000 jobs were added on-year afte

Aug. 14, 2024

Regulations hinder corporate charitable missions: KCCI

Korean corporate foundations are making less social impact than those in major economies because of strict overlapping regulations, the Korea Chamber of Commerce and Industry said Tuesday, urging the government to revise tax codes to encourage corporate philanthropy. According to the World Giving Index, an annual report published by the UK-based Charities Aid Foundation, South Korea has been in a continual decline in making donations, ranking 79th out of some 140 countries in the world in 2023

Aug. 13, 2024

CJ CheilJedang Q2 net rises 16% on food, high-end products

South Korean food company CJ CheilJedang Corp. said Tuesday its second-quarter net profit rose 16 percent from a year earlier on increased sales of food and high-end products. Net profit for the three months to June rose to 147.82 billion won ($108 million) from 127.46 billion won during the same period of last year, the company said in a statement. "Strong overseas sales of dumpling products under CJ's Bibigo brand and other food products buoyed the quarterly results. And increased sa

Aug. 13, 2024

Govt. to ease greenbelt restrictions in Seoul

The South Korean government announced it plans to supply more than 80,000 housing units in Seoul and adjacent areas over the next six years by removing restrictions on developing greenbelt areas in the capital for the first time in 12 years. The Ministry of Land, Infrastructure and Transport and Ministry of Economy and Finance on Thursday announced a real estate development plan that aims to stabilize the housing market amid soaring apartment prices in the capital. “The key to stabilizin

Aug. 8, 2024

Celltrion Q2 net profit drops 48%

Celltrion Inc., a South Korean biopharmaceutical company, said Wednesday its second-quarter net profit plunged 48 percent from a year earlier due to costs following a merger with its sales and marketing affiliate last year. Its net profit came to 78.5 billion won ($57.1 million), compared with 150.9 billion won a year ago, the company said in a regulatory filing. Its operating profit also decreased 60.4 percent on-year to 72.5 billion won, but sales jumped 66.9 percent to 874.7 billion won. Desp

Aug. 7, 2024

S. Korea reports biggest current account surplus in about 7 years in June: BOK

South Korea posted its largest current account surplus in about seven years in June, driven by robust exports led by semiconductors, central bank data showed Wednesday. The country's current account surplus reached US$12.2 billion in June, marking a surplus for two consecutive months, according to data compiled by the Bank of Korea. The June surplus is the largest since September 2017, when the surplus was $12.3 billion. The latest performance was driven by a robust goods account, which tot

Aug. 7, 2024

World Bank's digital chief vows to close digital divide

World Bank's new Vice President for Digital Transformation Kim Sang-bu outlined his mission to enhance the impact of digital technologies in accelerating development. "Digital technology has become a critical focus as the World Bank advances initiatives aimed at eradicating poverty," Kim said at a press meeting in Seoul on Tuesday. "A major challenge is ensuring that low-income countries without internet access can benefit from rapid advancements in artificial intelligence.&q

Aug. 6, 2024

Korean shares tank as global rout continues

South Korean shares dived more than 8 percent on Monday, triggering the stock exchange to temporarily halt the main Kospi and secondary Kosdaq markets, as investors were gripped by fear that the US economy may head toward a recession. A record 190 trillion won ($139 billion) was wiped off the Kospi market, as it tumbled 8.77 percent, or 234.64 points, to close at 2,441.55. This is the first time since the benchmark bourse opened that it has fallen by more than 200 points, recording the largest d

Aug. 5, 2024

FSC chief vows to curb household debts, stabilize financial market

The head of South Korea's financial regulator said Monday that he will redouble efforts to reduce high household debts via the implementation of tighter curbs. Kim Byoung-hwan, the chief of the Financial Services Commission, also said the regulator will remain vigilant against potential volatility in the financial market. "The very reason for our financial system's vulnerability to external shocks is relatively high indebtedness and dependence on debts," he said. "We nee

Aug. 5, 2024