BOK heeds possibility of US rate hikes later this year

The Bank of Korea said it would remain vigilant following the US Federal Reserve’s decision to pause its interest rate hike cycle for the first time in 15 months, noting the possibility of a further increase later this year. The Federal Open Market Committee unanimously kept its key borrowing target range at 5 percent to 5.25 percent, after 10 consecutive rate increases since March last year. The rate freeze was aligned with expectations in the market but the Fed also signaled that addit

June 15, 2023

Container freight rates for US, EU up in May: data

Outbound container shipping costs for major destinations, including the United States and the European Union, rose in May from a month earlier, data showed Thursday. The average rate for a 40-foot container from Asia's fourth-largest economy to the US east coast came to 4.95 million won ($3,877), up 3 percent from a month earlier, according to the data from the Korea Customs Service. It marked the first time in 13 months for the rate to rise on-month, the agency said. Rates for the US west

June 15, 2023

S. Korea's fiscal deficit expands on-year in April

South Korea's fiscal deficit expanded in the first four months of 2023 from a year earlier amid economic uncertainties, data showed Thursday. The managed fiscal balance, a key gauge of fiscal health calculated on a stricter term, posted a deficit of 45.5 trillion won in the January-April period, larger than a shortfall of 37.9 trillion won a year earlier, according to the finance ministry. South Korea's tax revenue came to 134 trillion won during the cited period, down 33.9 trillion wo

June 15, 2023

S. Korea, Ecuador seek stronger economic ties through envisioned trade deal

South Korea and Ecuador on Thursday discussed ways to expedite the establishment of a bilateral free trade deal to boost trade and investment and to deepen industry ties, Seoul's trade ministry said. Negotiations are underway between the two sides for the Strategic Economic Cooperation Agreement, a type of free trade pact, with nine rounds of talks having been held since 2016. On Thursday, Trade Minister Ahn Duk-geun met with his Ecuadorian counterpart, Julio Jose Prado, in Seoul and discus

June 15, 2023

S. Korea's ICT exports fall for 11th straight month in May

South Korea's exports of information and communication technology products dropped for the 11th consecutive month in May on a lingering economic slowdown and waning demand for semiconductors, government data showed Wednesday. Outbound shipments of ICT products came to $14.5 billion last month, down 28.5 percent from $20.2 billion a year earlier, according to the data compiled by the Ministry of Science and ICT. The monthly ICT exports have been on the decline since July last year. The count

June 14, 2023

S. Korea to unveil measures to fill job openings in vulnerable sectors

South Korea plans to announce additional measures next month to help industries facing labor shortages fill job vacancies, the finance ministry said Wednesday. The move came as some 216,000 job openings remained vacant in April, according to the Ministry of Economy and Finance, amid the country's falling unemployment rate. "Along with customized measures for each sector, we plan to beef up employment services, apply flexible rules to utilize the foreign workforce, improve the working e

June 14, 2023

Import prices snap 3-month fall in May on falling oil prices

Import prices fell in May to end a three-month rise on the back of falling oil prices, central bank data showed Wednesday. The import price index for May stood at 135.54, down 2.8 percent from April's 139.45, according to the data compiled by the Bank of Korea. The index also fell 12 percent compared with a year earlier, marking the sharpest decline since May 2020, when the comparable figure was 13 percent. Import prices of coal and petrochemical goods dropped 5.8 percent on-month last mont

June 14, 2023

Exports up 1.2% during first 10 days of June

South Korea's exports moved up 1.2 percent on-year in the first 10 days of June due to a greater number of working days, data showed Monday, although overseas sales of semiconductors continued to remain sluggish. The country's outbound shipments reached $15.3 billion in the June 1-10 period, compared with $15 billion tallied a year earlier, according to the data from the Korea Customs Service. Imports fell 20.7 percent on-year to $16.7 billion during the period, resulting in a trade de

June 12, 2023

S. Korea, Saudi Arabia to form W208.4b joint investment fund

South Korea and Saudi Arabia will form a 208.4 billion won ($155 million) joint fund to help Korean startups attract investments and advance to the Middle Eastern market, government officials said Sunday. Saudi Arabia will inject 195.4 billion won into the fund and Korea Venture Investment Corp. will invest the remaining 13 billion won in it, according to the Ministry of SMEs and Startups. From Saudi Arabia, Saudi Venture Capital Co. and Public Investment Fund (PIF) Jada will make an investment

June 11, 2023

Solar power emerging as major energy source in S. Korea

Solar power generation accounted for close to 40 percent of South Korea's overall electricity demand at one point in April, industry data showed Sunday, suggesting it has emerged as a major source of energy in the country. A total of 21,778 megawatts was generated through solar power between noon and 1 p.m. on April 9, accounting for 39.2 percent of the country's total power use of 55,577 megawatts, according to data from the Korea Power Exchange and state utility Korea Electric Power

June 11, 2023

Samsung Electronics most preferred stock as gifts in May

South Korean tech giant Samsung Electronics Co. was the most preferred stock as gifts among domestic investors last month, a local brokerage analysis showed Sunday. Shares in Samsung Electronics topped gifting stock services of the home trading and mobile trading systems operated by the country's seven securities companies in May, according to the brokerages' analysis. The seven securities firms are NH Investment & Securities Co., Samsung Securities Co., Hana Securities Co., KB Sec

June 11, 2023

S. Korea's current account returns to deficit in April

South Korea's current account returned to a deficit in April due to decreased dividend payments from overseas and a deficit in the travel-related account, central bank data showed Friday. The country's current account deficit reached $790 million in April, swinging from a surplus of $160 million a month earlier, 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

June 9, 2023

Samsung Heavy wins certification for design of LCO2 carrier

South Korean shipyard Samsung Heavy Industries Co. said Thursday it has won an approval in principle for the conceptual design of a liquefied carbon dioxide carrier from a local certification agency. The AIP from the Korean Register means that Samsung Heavy Industries' conceptual design of the storage tank of a 40,000-cubic-meter LCO2 carrier has been confirmed to meet the agency's technical requirements and standards for safety, the shipbuilder said. Samsung Heavy Industries said it h

June 8, 2023

S. Korea to end consumption tax cut on passenger cars after 5 years

South Korea will terminate the cut in the consumption tax on passenger cars starting next month, the finance ministry said Thursday, in an apparent move to make up for a recent decrease in tax revenue. In July 2018, the government slashed the auto consumption tax to 3.5 percent from 5 percent and had extended the measure in an effort to boost domestic demand amid the COVID-19 pandemic. The tax cut is supposed to expire at the end of June and the government decided not to extend it anymore "

June 8, 2023

KB chief stresses role of finance in net-zero transition

KB Financial Group said Wednesday that Chairman Yoon Jong-kyoo stressed the role of finance in achieving a net-zero transition at a meeting of the Asia-Pacific Advisory Board of the Glasgow Financial Alliance for Net Zero, or GFANZ, held in Singapore on Monday. The GFANZ is an alliance of over 550 financial institutions from 50 countries. Established in April 2021, the coalition aims to promote a net-zero economy and tackle climate change. Its Asian advisory committee was also set up in June las

June 7, 2023

S. Korea to lift set of regulations to induce W300b of investment

South Korea plans to lift a set of industrial regulations to try to induce combined private investment worth 300 billion won ($231 million), the finance ministry said Wednesday. The plan, the fifth of its kind, will lift hurdles for five investment projects, including construction of production lines, according to the Ministry of Economy and Finance. "South Korea's exports have experienced a recent decline, primarily attributed to the deteriorating IT sector and weak business sentiment

June 7, 2023

S. Korea seeks to win major energy, industry projects in Azerbaijan

South Korea asked for Azerbaijan's support Wednesday for its companies seeking to take part in major energy and other industry projects in the European nation, the industry ministry said. Deputy Trade Minister Jeong Dae-jin made the request during their joint economic commission meeting in Seoul on the day, as the two nations explored ways to enhance bilateral economic and industry cooperation, according to the Ministry of Trade, Industry and Energy. South Korean companies are pushing to pa

June 7, 2023

Banks' Q1 net up 24 pct on higher interest income

South Korean banks saw their first-quarter net profit rise 24 percent from a year earlier on higher interest and non-interest income, preliminary data showed Friday. Their combined net profit came to 7 trillion won ($5.4 billion) in the January-March period, up from 5.6 trillion won tallied a year ago, according to data from the Financial Supervisory Service. The figure was up 55.9 percent from 4.5 trillion won three months ago. Local banks' interest income totaled 14.7 trillion won in the

June 2, 2023

S. Korea's economy grows 0.3% in Q1, unchanged from earlier estimate: BOK data

South Korea's economy grew 0.3 percent in the first quarter of this year, unchanged from an earlier estimate, largely thanks to a sustained recovery in private spending amid an extended slowdown in exports, central bank data showed Friday. The country's gross domestic product -- a key measure of economic growth -- increased 0.3 percent in the January-March period from three months earlier, according to the preliminary data from the Bank of Korea. The first-quarter expansion follows a 0

June 2, 2023

S. Korea showing signs of export recovery: finance minister

South Korean exports are showing some signs of a recovery on the back of rising demand from China and increasing outbound shipments of semiconductors, the finance minister said Friday. South Korea's exports fell for an eighth consecutive month in May, reaching $52.24 billion, down 15.2 percent on-year, government data showed this week. The decline mostly came as exports of semiconductors sank 36.2 percent on-year on falling demand and a drop in chip prices. "Exports for May fell by two

June 2, 2023