The Korea Herald

Korea’s growth hits 5-year high

Jun 4, 2015

South Korea’s gross national income posted its highest growth in more than five years during the first quarter on the back of improved trade terms from then-low oil import prices, data from the Bank of Korea showed Thursday.Though the nation’s first-quarter GDP growth stood at 0.8 percent over the previous quarter, its GNI ― a barometer for consumers’ purchasing power ― increased by 4.2 percent, according to the central bank.This marked the highest figure since the GNI reached 5 percent in the s
Labor laws hurt start-ups

Jun 4, 2015

Foreigner quotas, visa rules provoke firms to seek loopholes
Falling exports hamper S. Korea's economic growth: KDI

Jun 4, 2015

The South Korean economy remains weak overall as a slump in exports weighs down on its growth, a state-run think tank said Thursday. In its latest report on the economy, the Korea Development Institute said private consumption has improved at a moderate pace, but a drop in outbound shipments and predictions of a weaker global economy are hindering growth."Investment-related leading indicators showed positive trends amid a gradual improvement in private consumption," the institute said. "This may
S. Korean economy grows 0.8 pct in Q1: BOK

Jun 4, 2015

The South Korean economy expanded 0.8 percent in the first quarter from three months earlier due mostly to increased construction investment while consumption and trade remained weak, revised central bank data showed Thursday.Korea's gross domestic product, the broadest measure of economic performance, picked up from a 0.3 percent expansion in the fourth quarter of last year, according to the data by the Bank of Korea.The latest reading is in line with the central bank's earlier estimate release
MERS outbreak batters travel, leisure shares

Jun 4, 2015

As South Korea grapples with the outbreak of Middle East Respiratory Syndrome, so do tourism and leisure shares that had rallied earlier this year on hopes for a rising influx of Chinese travelers to the nation. Although the government has vowed all-out efforts to contain the disease since the first outbreak on May 20, worsening sentiment following two deadly cases have sent leisure, airlines and cosmetics shares tumbling on the Seoul bourse over the past two weeks.According to the state-run tou
Foreigners' trip cancellations surge after MERS outbreak

Jun 4, 2015

A growing number of overseas travelers are calling off their trips to South Korea over fear of the Middle East Respiratory Syndrome that hit the nation, dealing a blow to the tourism and hotel industry here, industry officials said Thursday. The number of trip cancellations jumped from 2,500 on Monday to 7,000 on Tuesday, mostly by people from China and other Asian regions, and it is expected to grow in the wake of more cases of people infected with the contagious disease, the state-run Korea To
Koreans' overseas card spending hits record high in Q1

Jun 4, 2015

Overseas credit card spending by South Koreans soared to a fresh high in the first quarter of this year as more travelers went overseas amid low oil prices, central bank data showed Thursday.Overseas credit card bills totaled $3.21 billion in the first three months of the year, up 0.5 percent from three months earlier, according to the data by the Bank of Korea. From a year earlier, the amount climbed 13.8 percent.The first-quarter amount broke the previous quarterly record of $3.2 billion recor
MERS fears grip S. Korean tourism, retail sectors

Jun 3, 2015

Fears over the Middle East Respiratory Syndrome are casting a pall over South Korea's tourism and retail industries as the respiratory illness does not show signs of a letup, prodding overseas travelers to cancel their trips and locals to abstain from outdoor activities, industry sources said Wednesday.South Korea on Tuesday reported its first two deaths from MERS since the first confirmed case two weeks ago, fueling growing concerns about its spread in the country.Although MERS has not yet seri
MERS outbreak casts cloud on economy

Jun 2, 2015

Concerns over the negative impact of an outbreak of Middle East respiratory syndrome on the Korean economy are rising after the health authorities reported the first two deaths from the disease Monday. “Unless the authorities prevent the further spread of MERS, the number of Chinese travelers could fall at a fast pace, which will deal a blow to domestic consumption,’’ said Lim Hee-jung, a researcher from Hyundai Research Institute.Spending by Chinese visitors has boosted domestic consumption in
One policymaker opposes rate freeze in May: minutes

Jun 2, 2015

One member of the central bank's monetary policy committee opposed a majority decision last month to hold the policy rate steady at a record low of 1.75 percent, its May minutes showed Tuesday.As widely expected, the Bank of Korea (BOK) left the key rate on hold after unexpectedly slashing it by a quarter percentage point in March. The move marked its third rate cut in the past year, following one cut in August and another in October.According to the minutes from the May 15 meeting, Ha Sung-keun
S. Korea's current account surplus narrows in April

Jun 2, 2015

South Korea's monthly current account surplus narrowed in April from a four-month high in the previous month but continued to extend its surplus streak to a 38th straight month, data showed Tuesday.The current account surplus reached $8.14 billion last month, down from a $10.43 billion surplus in March, according to the provisional data released by the Bank of Korea. The current account is the broadest measure of cross-border trade.The on-month decline was largely attributed to the primary incom
S. Korea's consumer prices edge up 0.5 pct on-year in May

Jun 2, 2015

South Korea's consumer prices grew less than 1 percent for the sixth month in a row in May, a government report showed Tuesday, fueling worries of deflation in Asia's fourth-largest economy.The country's consumer price index inched up 0.5 percent last month from a year earlier, the report by Statistics Korea showed. Last month's number represents a gain from 0.4 percent growth tallied for both April and March, which were the lowest increases since July 1999, when consumer prices moved up just 0.
Korea, China sign free trade agreement

Jun 1, 2015

South Korea and China signed a free trade agreement Monday that is expected to become a platform for the two economies seeking new growth engines and to bring the 23-year bilateral cooperation up to a new level. The gradual removal of tariffs on agricultural, maritime and manufactured products, as well as opening up those industries of the world’s largest market, is expected to give Korea’s gross domestic product a 0.96 percent increase and boost customer welfare by $14.6 billion within 10 years
Seoul shares fall 0.59 pct on export, Greek debt woes

Jun 1, 2015

South Korean stocks fell 0.59 percent Monday as investor sentiment was dampened by concerns about the country's slowing exports and the lingering Greek debt problem, analysts said. The local currency lost ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index lost 12.43 points to 2,102.37. Trading volume was moderate at 416.9 million shares worth 5.8 trillion won ($5.2 billion), with losers outnumbering gainers 489 to 329.South Korea's exports shrank 10.9 percent last mon
Household debt, low growth major threats to S. Korean financial

Jun 1, 2015

Surging household debt and a prolonged low-growth trend are two major systemic risks facing South Korea's financial system, a poll showed Monday. The household debt issue topped the list of key systemic risks cited by market watchers at 66 percent, followed by a sluggish growth trend and inflation at 64 percent, according to the semi-annual survey conducted by the Bank of Korea.The central bank polled 82 officials at local banks and non-banking institutions in addition to foreign assets managers