The Korea Herald

Korean shares trade lower after Italy referendum

Dec 5, 2016

South Korean shares ticked down late Monday morning on a risk-off mood following the failure of Italy's referendum on constitutional reform.The benchmark Korea Composite Stock Price Index (KOSPI) fell 1.76 points, or 0.09 percent, to 1,969.85 as of 11:20 a.m.The KOSPI opened lower but it pared some losses as foreigners and institutions turned to net-buyers. Individuals offloaded shares.The global financial market has paid keen attention to political turmoil in Italy. Concern is widespread about
Disposable income of low-income bracket declines in Q3

Dec 5, 2016

The disposable monthly income of the lowest-income brackets fell 16 percent in the third quarter from a year earlier due to reduced earnings, official data showed Monday.The disposable monthly income of the lowest 10 percent income group came to 717,000 won ($610) in the July-September period, according to data compiled by Statistics Korea.It marked the biggest decline since 2003 when the statistics office began compiling relevant data.The disposable monthly income of the lowest 10 percent incom
Korea to reduce rice paddies in 2017

Dec 5, 2016

South Korea will reduce its rice paddies some 4.5 percent in 2017 from this year as part of an ongoing effort to deal with a chronic supply glut of the staple crop, the farm ministry here said Monday.The Ministry of Agriculture, Food and Rural Affairs said it has set the target of nationwide rice cultivation area at 744,000 hectares next year, down 35,000 from this year's 779,000.The ministry said it will help farmers convert their rice paddies into fields growing other crops.The decision came a
[News Focus] Spending on infrastructure up, welfare down in 2017 budget

Dec 4, 2016

South Korea’s National Assembly on Saturday passed the 2017 budget at 400.5 trillion won ($341.4 billion) with an increase in spending on infrastructure and a cut in welfare expenditure. The budget is 200 billion won smaller than the government’s plan, but is the first to surpass 400 trillion won. The Assembly passed the national spending plan in a 221-30 vote with 30 abstentions, after the government and lawmakers resolved their differences on the controversial free child care program.The total
Korean economy faces 0.5% fall in presidential election years

Dec 4, 2016

The South Korean economy has experienced a drop in its growth in six previous presidential election years due to rising political uncertainties, a report said Sunday.The country's economic growth fell an average 0.5 percent point from a year earlier in each election year from 1987 to 2012, according to the report released by Hyundai Research Institute (HRI).Private consumption and facility investment also declined 0.6 percentage point on-year and 4 percentage points on average, respectively, in
National pension fund holds 5% stake in 62 listed companies

Dec 4, 2016

The state-run National Pension Fund (NPF), South Korea's largest institutional investor, holds at least a 5 percent stake of nearly 70 percent of the listed affiliates of the country's top 10 business groups, giving the firm voting power, financial data showed Sunday.Out of the 89 affiliate companies of the 10 conglomerates, including Samsung Group and Hyundai Motor Group, NPS holds a 5 percent or more stake in 62 firms, according to the data compiled by the Financial Supervisory Service.The NPS
Koreans' ratio of public contributions to GDP surpasses 25% in 2015

Dec 4, 2016

South Korea's ratio of public contributions including taxes and pension premiums to the gross domestic product (GDP) surpassed 25 percent for the first time last year on a steady rise in welfare costs, an international report showed Sunday.The so-called national burden ratio reached 25.3 percent as of end-2015, up 0.7 percentage point from the previous year's 24.6 percent, according to the Revenue Statistics 2016 report by the Organization for Economic Cooperation and Development (OECD).National
Korea’s flat Q3 growth fuels concerns over slump

Dec 2, 2016

The South Korean economy grew less than 1 percent for the past three consecutive quarters, raising the possibility of the government failing to reach its annual growth target. According to the Bank of Korea on Friday, Korea’s gross domestic product expanded 0.6 percent on-quarter in the third quarter of 2016. The revised figure was lower than the 0.7 percent growth preliminary estimated by the BOK in October. Since the fourth quarter of 2015, the quarterly growth has been hovering below 1 perce
Online shopping in S. Korea hits record high in Oct.

Dec 2, 2016

Online shopping in South Korea reached a fresh record high in October on a nationwide discount event, a government report showed Friday.Total online transactions reached a record 5.6 trillion won ($4.8 billion) in October, up 17.3 percent from 4.8 trillion won a year earlier, according to the report compiled by Statistics Korea.Purchases made through smartphones, tablets and other mobile gadgets also soared 37.4 percent on-year to a record 3.2 trillion won to account for 56.1 percent of all onli
Investment advisers suffer plunging assets

Dec 2, 2016

Investment advisory companies in South Korea are suffering from plunging contracts due largely to institutions' cancellations, leaving more than half in the red, data showed Friday.According to the data by the Financial Supervisory Service, 159 investment advisory companies' assets under management totaled 16.3 trillion won ($13.9 billion) as of the end of September, down 57.6 percent from end-June last year.The value was also 8.4 percent lower than three months earlier.The financial watchdog at
More travelers head overseas in Nov. despite offseason

Dec 2, 2016

The number of South Korean overseas tourists rose in November from a year earlier despite the offseason, industry data showed Friday, sparking concern over the country's continued tourism deficit.Hana Tour Co., the nation's largest travel agency, said some 242,000 South Koreans traveled abroad through the company last month, up 12.7 percent from a year earlier.The figure was approximately 2,000 people more than the previous month, suggesting the number of overseas travelers increased steadily in
S. Korea's economy grows 0.6% in Q3: BOK

Dec 2, 2016

South Korea's economy expanded 0.6 percent on-quarter in the third quarter of 2016 on the sagging growth of the manufacturing sector, the country's central bank announced Friday.The revised third-quarter expansion is slightly slower than the 0.7 percent gain previously estimated in October by the Bank of Korea. (Yonhap)It marks the fourth consecutive quarter that Asia's fourth-largest economy posted a zero-percent-level GDP growth, adding to concern about a prolonged slump.In the second quarter
Rising inflation, trade surprise in November data

Dec 1, 2016

South Korea’s consumer prices continued to rise more than 1 percent for the third consecutive month amid the soaring prices of agricultural goods. Prices of agricultural products jumped 7.9 percent from a year earlier, with prices of kimchi ingredients skyrocketing. Cabbage and radish prices soared by 82.1 percent and 120.7 percent, respectively, from a year earlier. The service sector, which weighs most heavily on the consumer price index, rose 1.8 percent on-year, led by increase
OPEC deal boosts outlook for Korea‘s exports

Dec 1, 2016

The Wednesday deal among the members of the Organization of Petroleum Exporting Countries to cut oil output by about 1 percent of the global oil production has brightened up prospects for South Korea’s exports. (photo by 123rf)While the OPEC deal is expected to push global oil prices up to about $60 per barrel from the current mid-$40 levels, oil price hikes will be positive for Korean exporters of petrochemical and refinery products, a government official said.The price of Dubai crude, South
Korea's exports rebound to rise 2.7% in Nov.

Dec 1, 2016

South Korea posted a current account surplus for the 56th straight month in October but suffered a decline due to sluggish outbound shipments, central bank data showed Thursday.The current account surplus reached $8.72 billion in October, compared with a $9.58 billion surplus a year earlier, according to the preliminary data from the Bank of Korea (BOK).But the October figure marks a rise from $8.07 billion in September. The current account is the biggest measure of cross-border trade.It said th