The Korea Herald

Korea battles ‘consumption cliff’ concerns

Jan 4, 2016

In a meeting of economy-related ministers last week, outgoing Finance Minister Choi Kyung-hwan went out of the way to defend his handling of the Korean economy, which is estimated to have grown by 2.7 percent last year.Finance Minister Choi Kyung-hwan (Yonhap)Choi, who concurrently serves as deputy prime minister for economic affairs, said the 2015 growth rate, down from 3.3 percent in 2014, was still the third highest among major countries with a per capita income of more than $20,000.His remar
Asia stocks, currencies sink but oil surges on Mideast woes

Jan 4, 2016

HONG KONG (AFP) - Asian stock markets tumbled while safe haven assets and oil prices jumped Monday in the first full day's trade of 2016 as a flare-up in tensions between Iran and Saudi Arabia raised concerns about the volatile Middle East.Saudi Arabia severed diplomatic ties with its old foe Iran Sunday after protesters ransacked its embassy in Tehran in response to the execution of a Shiite cleric.Riyadh gave Iranian diplomats two days to leave the kingdom, while the supreme leader in Tehran s
Finance minister calls for sweeping structural reform

Jan 4, 2016

South Korea's finance minister said Monday that it is necessary to push for sweeping reforms in all sectors in order to succeed in a tough environment in the new year and achieve its economic goal."We will face a more difficult environment in the new year. Global uncertainties are high due to low oil prices, higher U.S. interest rates and a slowdown in emerging economies," Minister of Strategy and Finance Choi Kyung-hwan said in his New Year's message. "Weak global demand and technological devel
Households' unsecured loans up 5% on-year in 2015: data

Jan 4, 2016

Unsecured loans taken out by households grew 5 percent on average in 2015 compared with 2014, mainly due to increased borrowing to pay for business-related outlays, cover living expenses and cope with rental security deposits, government data showed Monday.Data by Statistics Korea, the Financial Supervisory Service and the Bank of Korea showed that as of late March 2015, the size of credit loans per household stood at 6.42 million won ($5,480), up from 6.12 million won a year earlier.In the same
Jeonse prices likely to go higher this year

Jan 3, 2016

More Koreans are expected to struggle to pay higher jeonse prices this year with many tenants postponing plans to buy homes in fears of slowing growth in property value as well as of a potential increase in interest rates.According to market analysts and reports, the greater demand for jeonse ― a scheme popular in Korea where tenants give a large deposit to the landlord upfront in lieu of paying monthly rent ― could push deposit levels to record highs and force more tenants to pay in monthly fee
[Graphic News] Billionaires’ stock value hits all-time high

Jan 3, 2016

The total market value of shares held by the top 100 stock-rich people in Korea surpassed the 100 trillion-won ($849.25 billion) mark for the first time last week, according to market researcher Chaebul.comThe data showed that the billionaires held 103. 83 trillion won worth of stocks as of Dec. 30, accounting for 8.3 percent of the total market capitalization.The stock value of the top 100 has been risen steadily over the past several years, to 74 trillion won in 2013 and 92.6 trillion won in 2
South Korean won forecast to weaken to U.S. dollar this year

Jan 3, 2016

The South Korean won is likely to remain weak against the U.S. dollar this year on growing uncertainty in emerging economies following a U.S. rate hike and a slowdown in the Chinese economy, market watchers said Sunday.The local currency, however, is not expected to drop sharply against the greenback in light of Seoul's strong foreign exchange position and its sufficient current account surplus, they said.The South Korean currency started at 1,103.50 won to the dollar on the first trading day of
Seoul bourse to stay subdued next week on oil rout, emerging markets

Jan 2, 2016

South Korean stocks may remain subdued next week, weighed down by slumping global commodity prices and risks stemming from emerging economies, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) closed at 1,961.31 on Thursday, the last trading day of this year, down 1.47 percent from a week earlier. The market got off to a weak start this week as Samsung Group affiliates lost ground after the country's regulator ordered them to resolve the complicated cross-shareholding struct
South Korea's December exports worse than expected

Jan 1, 2016

South Korean exports were worse than expected in December, bearing the brunt of slowdowns in China and other key trading partners, as well as an extended slump in oil prices, government data showed Friday. The country's outbound shipments sank 13.8 percent last month from a year earlier to $42.64 billion, smaller than the market estimate of $44.75 billion. The December figure also marks an on-year drop for the 12th straight month. Its imports also sank 19.2 percent on-year to $35.47 billion
Korean economy to face stronger headwinds

Dec 31, 2015

Entering the New Year, the Korean economy finds itself besieged by a complex set of external and internal risks that threaten to continuously hamper its growth.　Government policymakers estimate the country’s gross domestic product will grow by 3.1 percent in real terms this year, marking a modest improvement from last year’s growth, which is estimated to have remained at 2.7 percent.　Announcing the 2016 economic policy directions last month, they pledged to revitalize the economy by boosting dom
Korea's major industries bracing for downturn in 2016

Dec 31, 2015

After a year of prolonged economic downturn and a major drop in exports in 2015, South Korea faces another grim outlook in 2016 as most of its major industries are forecast for sluggish growth.　Though Korea’s overall trade will slightly grow, its net export volume will increase by just 2.1 percent this year, according to the Korea Institute for Industrial Economics & Trade.　The state-run Korea Development Bank expects a general recession of the domestic economy to continue into the new year as t
BOK chief vows to keep easy money policy to fuel growth

Dec 31, 2015

South Korea's top central banker said Thursday he will seek an easing monetary policy to boost growth while guarding against any financial instabilities."It is necessary to put the focus on downward risks in economic growth and prices, while closely checking the macroeconomic circumstances," Bank of Korea Gov. Lee Ju-yeol said in his New Year's message, noting that the country has seen a moderate recovery amid little inflation pressure."Next year, the local economy is forecast to continue such a
Park vows to boost economy through structural reforms in New Year's message

Dec 31, 2015

President Park Geun-hye pledged Thursday to accomplish structural reforms in four major sectors of the society to revive the economy and create more jobs next year."(The government) will firmly root the creative economy and cause the culture to flourish, eventually to revitalize our economy and to create more jobs," Park said in a New Year's video message uploaded on YouTube and posted on her Facebook page.The government has pushed ahead with structural reforms in four major sectors, including t
Market value of apartments in Korea tops 2,000 tln won

Dec 31, 2015

The aggregate market value of apartments in South Korea has topped 2,000 trillion won for the first time, driven by more construction and rising housing prices, industry data showed Thursday.According to Real Estate 114, a real estate information provider, about 6.83 million apartments nationwide were estimated to be worth 2,127 trillion won ($1.81 trillion) as of end-December based on their market value. This is up 166 trillion won from a year earlier and marks the largest-ever value since rela
Korea's consumer prices growth hits 16-month high in Dec.

Dec 31, 2015

South Korea's consumer prices grew at the fastest pace in 16 months in December, a government report showed Thursday, amid government-led efforts to stave off deflation concerns.The country's consumer price index rose 1.3 percent this month from a year earlier, according to the report by Statistics Korea, marking the highest level since August 2014, when it hit 1.4 percent."As global oil prices experienced a relatively gentle fall this month, compared to a year ago, the December figure recorded