The Korea Herald

Korean economy heading for stagflation?

Oct 25, 2011

Slowing growth coupled with price rises poses dilemma for policymakersThe Bank of Korea froze its key interest rate at 3.25 percent a year for a fourth consecutive month in October in a move that analysts said placed worries over growing external uncertainties ahead of inflation concerns.A report by the central bank said at the time the downside risks to the economy were increasing due to worsening external factors such as the eurozone’s sovereign debt crisis and slowdowns in major countries.An
E-Mart launches ultra-cheap LED TV

IndustryOct 25, 2011

Retail giant threatens Samsung and LG with half-priced setsE-Mart will launch an ultra-cheap TV set on Thursday in a bold move to enter the electronics market that has long been dominated by Samsung and LG. E-Mart said its Dream View is a 32-inch full HD LED TV priced at 499,000 won ($443), up to 42 percent cheaper than those with similar specifications produced by local electronics giants.Even when compared to Chinese brands, the price is about 28 percent cheaper, the company said. “We have red
LG likely to ink patent agreement with Microsoft next month

IndustryOct 25, 2011

Vice chairman Koo may meet Microsoft counterpart at APEC CEO SummitLG Electronics will likely ink an agreement on patent loyalties with U.S. software giant Microsoft as early as next month, industry sources said Tuesday.The move is expected to further burden the Korean firm which is currently suffering from a sparse smartphone line-up. It could incur losses that amount to millions of dollars as the source noted that the firm is most likely to offer $3 per every Android device to Microsoft. A big
Banks promise to lower service charges

Oct 25, 2011

Lenders respond to public criticism over high commission feesCommercial banks bowed to pressure from the public and financial authorities, and disclosed their plan to lower or scrap over 100 services charges they impose on trivial electronic services.A joint letter from 18 local banks was sent to the Financial Supervisory Service where they agreed to cut major service charges, including discounts of up to 50 percent for using cash machines. The banks agreed to decrease the number of service fees
Profit-taking pushes shares down 0.51%

Oct 25, 2011

South Korean stocks closed 0.51 percent lower on Tuesday as institutions and retail investors opted to lock in profits from the recent rallies as the main stock index neared the 1,900 mark for the first time in nearly two months, analysts said. The local currency climbed against the U.S. dollar.After surpassing the 1,900-level at one point, the benchmark Korea Composite Stock Price Index slipped 9.67 points to 1,888.65. Trading volume was moderate at 348.6 million shares worth 5.97 trillion ($5.
Korea will be better-off than Japan in 2030: ADB

Oct 25, 2011

The Asian Development Bank said Tuesday that Koreans will enjoy a higher standard of living than the Japanese by 2030, projecting the country’s gross domestic product per capita and purchasing power to exceed that of Japan.In a Seoul seminar co-hosted by the Finance Ministry, the regional lender said the GDP per capita of Korea will stand at $56,000 by 2030, above Japan’s $53,000. It said Korea’s GDP per capita will be similar to that of the U.S. by 2050, at around $98,000.In its “Asia 2050” pub
Google’s Android passes Apple to become smartphone application leader

TechnologyOct 25, 2011

Google Inc.’s Android operating system passed Apple Inc. (AAPL)’s iOS as the most popular software platform for application downloads as consumers bought more Android smartphones. The Google platform accounted for 44 percent of all app downloads in the second quarter, eclipsing Apple’s 31 percent sh
Baby births grow in S. Korea for 18th month in Aug.

Oct 25, 2011

SEOUL, Oct. 25 (Yonhap) -- The number of babies born in South Korea grew for the 18th straight month in August amid the government's efforts to boost the nation's relatively low birthrate, a report showed Tuesday.According to the report by Statistics Korea, the number of babies born in August came t
VW likely to overtake Toyota as top carmaker in 2011

TransportOct 25, 2011

Volkswagen AG will probably become the world’s biggest carmaker this year, vaulting past Toyota Motor Corp. and General Motors Co . on gains in emerging markets.Volkswagen AG will probably become the world’s biggest carmaker this year, vaulting past Toyota Motor Corp. and General Motors Co . on gain
Regulator set to order Lone Star to sell KEB stake

Oct 25, 2011

SEOUL, Oct. 25 (Yonhap) -- South Korea's financial regulator is expected to order Lone Star Funds to sell the bulk of its stake in Korea Exchange Bank (KEB) after the U.S. buyout firm said it cannot meet the requirements as the major shareholder of the fifth-largest lender, watchers said Tuesday.Lon
Oil prices expected to slip 8 percent next year: report

IndustryOct 25, 2011

SEOUL, Oct. 25 (Yonhap) -- International crude oil prices are expected to fall up to 8 percent in 2012 from this year's levels as demand for oil products decline in line with the global economic slump, a report showed Tuesday.The price of Dubai crude, South Korea's benchmark, would trade at a range
Korea fuels fight against fake petrol

Oct 24, 2011

The government and local refiners are joining forces to root out rampant fuel adulteration across Korea by issuing tougher penalties and tipster rewards.Early this month, the government declared an all-out war against fake fuel, sharply raising fines for gas station owners selling adulterated petrol products and seeking ways to cancel their business licenses once caught.Hyundai Oilbank Co., the country’s smallest refiner, boosted the drive on Sunday by offering tipsters cash rewards of up to 5 m
Korea, Indonesia agree to seek free trade deal

Oct 24, 2011

South Korea and Indonesia agreed to significantly boost their economic ties, a move that will include the signing of a free trade deal at an early date, the Seoul government said Monday.The countries have also agreed to seek what they called joint “mega projects” that will symbolize their economic cooperation and Seoul’s support for the economic development of the Southeast Asian country, according to the Ministry of Knowledge Economy.The agreements came at a Seoul meeting of the countries’ join
Finance chief calls for fiscal soundness

Oct 24, 2011

South Korea should strengthen its fiscal health to brace for growing welfare demand from the nation’s fast-aging population and protracted low birth rates, the top economic policymaker said Monday.“Low birth rates and aging population could result in decreasing the number of economically active people and hiking welfare spending, all of which could undercut the nation’s growth potential and worsen its fiscal status,” Finance Minister Bahk Jae-wan told a gathering in Seoul.“We should prepare ours
63 Building to undergo major renovation

IndustryOct 24, 2011

The 63 City Building, the nation’s second-tallest building, will undergo a five-year renovation including the replacement of its 13,400 gold-tinted windows, industry sources said Monday. The 249-meter-high skyscraper in Yeouido, Seoul’s financial district, is currently home to more than 10,000 employees of Korea Life Insurance and other companies. The landmark building also houses a number of foreign companies operating in Korea.The large-scale renovation, including the remodeling of vacant offi