The Korea Herald

Acting president to deliver economy policy plan on Dec. 29

Dec 18, 2016

Acting President and Prime Minister Hwang Kyo-ahn is set to deliver next year's economy policy plan later this month, sources said Sunday, indicating he will continue to actively participate in state affairs despite opposition parties demanding him to remain low-key.It marks a rare occasion for a prime minister to deliver the announcement, which is usually delivered by financial ministers.The event is slated for Dec. 29. Hwang became the acting president after President Park Geun-hye was impeach
Finance minister, BOK chief vow to tackle market uncertainties

Dec 17, 2016

The country's chief economic policymaker and the head of the central bank Friday agreed to take measures to tackle market uncertainties, if necessary, which stem from the impeachment of President Park Geun-hye and the much-expected rate hikes in the US.Finance Minister Yoo Il-ho and Bank of Korea Gov. Lee Ju-yeol also shared the view that a policy mix is increasingly important to help Asia's fourth-largest economy grow. Bank of Korea Governor Lee Ju-yeol (left) and Finance Minister Yoo Il-ho. (Y
‘US rate hike will burden Korean exporters’

Dec 15, 2016

The US interest rate hike will likely pose more burden on Korea’s export-based economy as it will affect the emerging markets which Korea heavily depends on, a report said Thursday.According to a report by the Korea International Trade Association, the strengthening dollar may lower material costs and cause capital outflow, triggering an impact on emerging markets such as China, Central and South America, which could affect the Korean economy. From January to October this year, emerging countrie
Hawkish Fed leaves Korea under bigger pressure

Dec 15, 2016

Seoul officials scramble to prevent excessive market volatility
S. Korea to take stern measures against U.S. rate hike rout

Dec 15, 2016

South Korea will take firm and resolute action to stabilize the local financial markets to prevent any fallout from the latest U.S. rate hike, the government said Thursday.Earlier in the day, the U.S. Federal Reserve raised its key interest rate by a quarter of a percentage point to a range of 0.5 percent to 0.75 percent, citing better job data and potential higher growth of inflation. It also signaled three rate hikes in 2017.The rate increase, the first since December last year, marked the sec
Korea faces increased non-trade barriers

Dec 15, 2016

South Korea has faced increased non-trade barriers raised by foreign countries in the past few years, while such measures around the globe declined, a report said Thursday.According to the report compiled by the Korea Chamber of Commerce and Industry, a total of 134 non-tariff measures such as technical barriers to trade, were taken against South Korean goods between 2013 and 2016, compared to the 65 cases reported between 2008 and 2012.In contrast, such non-trade barriers around the globe decli
Fed raises key interest rate and foresees 3 hikes in 2017

Dec 15, 2016

The Federal Reserve has raised a key interest rate in response to a strengthening U.S. economy and expectations of higher inflation, and it foresees three more rate hikes in 2017.The Fed's move will mean modestly higher rates on some loans.Wednesday's action signaled the Fed's belief that the economy has improved over the past year after a rough start to 2016 and can withstand slightly higher borrowing rates. Its expectation of three rate increases in 2017 is up from two in its forecast three mo
Youth unemployment hits 13-year high for Nov.

Dec 14, 2016

The unemployment rate among young South Koreans hit a 13-year high for the month of November, as manufacturers reduced new hires amid the prolonged economic downturn, the government said Wednesday. (123rf)According to data from Statistics Korea, the jobless rate among people aged between 15 and 29 rose to 8.2 percent in November, down from 8.5 percent a month earlier but up from 8.1 percent a year earlier. The figure last month is the highest yearly figure for November since 2003.The unemploymen
Household loans up 11.5% in November

Dec 14, 2016

South Korea's household loans extended by local banks rose 11.5 percent in November from a year earlier due to an increase in collective loans, central bank data showed Wednesday.Outstanding household loans from local lenders came to 704.6 trillion won ($601 billion) as of end-November, compared with 632.2 trillion won from a year earlier, according to the data from the Bank of Korea (BOK).Compared with October this year, the amount rose by 8.8 trillion won. "Mortgages increased 6.1 trillion won
State pension's 'no' vote ratio stands at 10% data

Dec 14, 2016

South Korea's state-run pension fund actively exercised its voting rights this year opposing one out of 10 proposals at shareholders meeting, data showed Wednesday.The National Pension Service (NPS), the operator of the fund, voted against 320, or 9.6 percent, out of 3,344 resolutions made this year at shareholders meetings of the companies it has invested in, according to the data compiled by industry tracker CEO Score.The tally was based on the votes the NPS took part in at 654 shareholders me
Korea's jobless rate remains unchanged at 3.1% in Nov.

Dec 14, 2016

South Korea's jobless rate remained unchanged in November from a year earlier, with a protracted economic slowdown weighing heavily on the unemployment for young people, a government report showed Wednesday.The unemployment rate in Asia's fourth-largest economy stood at 3.1 percent last month, staying flat from a year earlier, according to the report compiled by Statistics Korea.The number of employed people stood at 26.59 million in November, up 339,000 from a year earlier, with the monthly gai
Korea's export prices up 4.1% last month on weaker won

Dec 14, 2016

South Korea's export prices increased 4.1 percent in November from a month earlier due to a weaker local currency and strong demand for electric and electronic products, central bank data showed Wednesday.The won fell 3.2 percent against the dollar on average in November compared to a month earlier. In local currency terms, export prices rose 3.8 percent last month from a year earlier, according to preliminary data from the Bank of Korea.Export prices of industrial goods gained 3.7 percent year-
Incumbent finance minister likely to maintain his post

Dec 12, 2016

Finance Minister and Deputy Prime Minister for Economy Yoo Il-ho is likely to keep his job, as both ruling and opposition parties as well as acting President Hwang Kyo-ahn were seen supporting Yoo’s continued term Monday.Following the parliament’s passage of a bill to impeach President Park Geun-hye on Friday, it had remained uncertain as to whether the incumbent Yoo would maintain his post or whether Financial Services Commission Chairman Yim Jong-yong, who had been nominated as new finance min
Low-income households, SMEs hit by economic headwinds

Dec 12, 2016

Low-income households and small businesses in South Korea look particularly vulnerable to stronger headwinds faced by the country’s sluggish economy.The government is now tasked with steering the economy through worsening conditions at home and abroad, amid prolonged domestic political turmoil following last week’s impeachment of President Park Geun-hye over a massive corruption scandal.In carrying out this thorny task, there is a risk that the weakest part of the economy could take the hardest
Uncertainties add to urgency of decision on finance minister

Dec 11, 2016

South Korea urgently needs to decide who will be the nation’s top economic policymaker to deal with growing uncertainties and prop up the faltering economy, experts said Sunday.The parliament’s impeachment of President Park Geun-hye on Friday signaled the start of more uncertainties as to whether incumbent Finance Minister Yoo Il-ho will maintain his post or the Financial Services Commission’s Yim Jong-yong, who had been designated as new finance minister by Park last month, will take over.Polit