The Korea Herald

MERS scares hit travel, cosmetics stocks hard

Jun 10, 2015

Travel and cosmetics stocks have suffered a sharp decline in their market value as the outbreak of the Middle East Respiratory Syndrome in South Korea has dampened sentiment among consumers and investors alike, data showed Wednesday, sparking worries over its economic impact in Asia's fourth-largest economy.South Korea on Wednesday confirmed nine deaths from MERS and reported 13 new cases, bringing the total number of people diagnosed with the disease to 108 after the first outbreak on May 20. A
Stock short-selling rising amid uncertainties

Jun 10, 2015

More investors in South Korea are opting to short stocks as they bet on a fall in local equities amid growing economic uncertainties, data showed Wednesday. Daily stock short-selling averaged 356.4 billion won ($318.2 million) in the main KOSPI market this month, up 63.9 billion won from last month's daily average, according to the data compiled by corporate researcher Wisefn. Stock short-selling is a trading technique in which investors sell stocks they borrowed on the belief that share pri
Seoul shares edge down ahead of MSCI's decision on China stocks

Jun 9, 2015

South Korean stocks ended 0.06 percent lower Tuesday as investors took a wait-and-see stance ahead of the MSCI's decision on whether to include Chinese stocks in its emerging market index, a move that could spark outflows of money from here, analysts said. The local currency gained ground against the U.S. dollar. The benchmark Korea Composite Stock Price Index fell 1.16 points to 2,064.03. Trading volume was moderate at 417.64 million shares worth 5.54 trillion won ($4.95 billion), with gainers
S. Korea's farm exports drop 8.1 pct on-year in May

Jun 9, 2015

South Korea's exports of farmed goods shrank significantly last month with shipments of both fresh foodstuff and processed products slipping, the government said Tuesday. Outbound shipments of agricultural and food products amounted to $480.4 million in May, down 8.1 percent from the same month last year, according to the Ministry of Agriculture, Food and Rural Affairs. The drop was partly attributed to large cuts in exports to Japan and Russia, both of whom have experienced weakening currenci
S. Korean economy recovering amid downside risks: gov't

Jun 9, 2015

South Korea's economy is recovering slowly on increased domestic spending, but it is facing stiff challenges from falling exports and the outbreak of Middle East Respiratory Syndrome, the finance ministry said Tuesday. In its latest report on Asia's fourth-largest economy, the ministry said low fuel prices and a surge in home transactions are contributing to a rise in consumption that has been weighing down growth. In May, home purchases jumped 40.5 percent from a year earlier, it said. The
Foreigners extend buying S. Korean stocks to 4 straight months

Jun 9, 2015

Foreign investors extended their buying streak to four consecutive months in the South Korean stock market in May but their net purchase waned from a month earlier on concerns over the U.S. Federal Reserve's expected rate hike, the financial watchdog said Tuesday. Offshore investors bought a net 1.35 trillion won ($1.2 billion) worth of local shares in May, compared with a 4.68 trillion won net purchase the previous month, according to the Financial Supervisory Service. Their stock ownership i
Korea to build two new nuclear reactors by 2029

Jun 8, 2015

South Korea plans to build two new nuclear reactors within the next 15 years in an effort to revive its nuclear power footing for energy, the government announced Monday.The addition will increase the number of reactors to 39 by 2029. Currently, Korea has 23 reactors nationwide. The expansion of nuclear power is included in the seventh “basic plan for long-term electricity supply and demand,” which covers the period between 2015 and 2029. The Ministry of Trade, Industry and Energy had developed
Biz community steps up emergency response against MERS

Jun 8, 2015

South Korean companies are rushing to step up their emergency response efforts to better protect their employees from Middle East Respiratory Syndrome, which is showing signs of a wide spread in South Korea. South Korea remains gripped by the potentially deadly disease that has claimed six lives so far and forced more than 2,500 people to be kept in quarantine. This is the largest outbreak of the disease outside Saudi Arabia. Hyundai Motor Group, which has top two automakers, Hyundai Motor Co.
BOK expected to cut rate in June, but analysts split on forecast: poll

Jun 8, 2015

South Korea's central bank is expected to lower its benchmark interest rate to a fresh record low in June on concerns over sluggish exports and the country's first-ever spread of the Middle East Respiratory Syndrome, but analysts were split on the outlook as heavy household debt lingers as a bugbear for Asia's fourth-largest economy, a poll showed Monday. Nine out of 17 analysts and economists surveyed by Yonhap Infomax, the financial news arm of Yonhap News Agency, forecast the Bank of Korea w
MERS outbreak may negatively affect economy: finance minister

Jun 8, 2015

The outbreak of Middle East Respiratory Syndrome is feared to have a negative impact on the South Korean economy by dampening consumer spending and corporate investment, the top economic policymaker said Monday. The warning comes as the country remains gripped by the potentially deadly disease that has claimed six lives so far and forced more than 2,500 people to be kept in quarantine. "The outbreak is a source of concern and could hurt consumption and business investment," Finance Minister Ch
S. Korean firms vulnerable to looming U.S. rate hike: poll

Jun 8, 2015

Nearly three-fourths of South Korean manufacturers are expecting a looming U.S. rate hike to hamper the recovery in Asia's fourth-largest economy, but most don't have any viable measures to tackle it, a poll showed Monday. According to the survey on 300 local manufacturers conducted by the Korea Chamber of Commerce and Industry, the respondents said the U.S. rate hikes could spark massive capital outflows from the country, increase financial volatility and worsen consumer sentiment. The poll s
BOK chief says to consider 'everything' in June policy meeting

Jun 8, 2015

South Korea's top central banker said Monday that he will take into account "all factors" in an upcoming interest rate decision for June, as the outbreak of Middle East Respiratory Syndrome is feared to dent recovering domestic demand. The Bank of Korea is scheduled to hold a monthly rate-setting meeting Thursday after it left the base rate at a record low of 1.75 percent for the second straight month in May. "I will consider everything in the policy meeting," BOK Gov. Lee Ju-yeol told reporte
[Herald Interview] KLM reaches Korean customers via KakaoTalk

Jun 7, 2015

AMSTERDAM ― KLM Royal Dutch Airlines, known for its social savvy and service, is expanding its online presence to reach out to Korean customers with the launch of a KakaoTalk customer service account in a bid to “be where its customers are,” the airline’s e-commerce executive said.“Replying in Korean on Korea’s most popular social media platform allows KLM to be in close interaction with its Korean customers,” Tjalling Smit, Air France KLM’s senior vice president of e-commerce, said during an in
Major firms' capex to rise 15 pct this year

Jun 7, 2015

Major South Korean companies are expected to increase their capital expenditures by nearly 15 percent in 2015 from last year despite the economy's prolonged weakness, a state bank said Sunday.A survey on 2,500 manufacturing and service companies shows that the businesses plan to spend a combined 157.3 trillion won ($141 billion) on new plants and equipment this year, up 14.9 percent from last year, according to the Korea Development Bank.Excluding one-off investments like Hyundai Motor Group's p
Korea to grow in low 3% range this year: Choi

Jun 6, 2015

South Korea's top economic policymaker said Friday that the country's economy will likely grow just over 3 percent this year due to some trouble in exports.At a meeting attended by more than 60 investors in London, Finance Minister Choi Kyung-hwan said the slower than anticipated growth is due to a drop in global trade that has offset steady gains in domestic consumption.The government had originally targeted 3.8 percent growth as being attainable this year, up from 3.3 percent reached in 2014.T