The Korea Herald

S. Korea, Portugal discuss ways to expand economic cooperation

Nov 2, 2016

South Korea and Portugal have discussed ways to expand their bilateral economic cooperation in diverse areas including joint efforts to advance into diverse markets, the foreign ministry said Wednesday.Deputy Foreign Minister for Economic Affairs Lee Tae-ho and his Portuguese counterpart Jorge Costa Oliveira held the fourth economic joint committee in Seoul on Tuesday, according to the ministry.During the meeting, both discussed ways to increase cooperation in such areas as space technology, whi
Political uncertainties increase downside risks to economic growth: foreign IBs

Nov 2, 2016

South Korea's political uncertainties over an unfolding influence-peddling scandal could increase downside risks to the country's economic growth, a report said Wednesday.Citigroup said the scandal involving President Park Geun-hye's longtime confidante could shrink consumer sentiment, which in turn could further slow the economic growth rate in the fourth quarter, according to the report released by the Korea Center for International Finance.In the July-September period, South Korea's gross dom
Veteran technocrat pledges to salvage economy amid crisis

Nov 2, 2016

Yim Jong-yong, the nominee for deputy prime minister for economy, pledged Wednesday to salvage the sinking Korean economy. “Assuming this position at a time of serious economic situations gives me a sense of grave responsibilities,” Yim said at a press conference at the Seoul government complex in Gwanghwamun on Wednesday. Yim Jong-yong, the nominee for deputy prime minister for economy, walks to a press briefing at the Seoul Government Complex on Wednesday. (Yonhap)“It is not an exaggeration to
S. Korean stocks sharply down in late morning

Nov 2, 2016

South Korean stocks traded sharply lower late Wednesday morning as investors took to the sidelines amid growing uncertainties at both home and abroad.The benchmark Korea Composite Stock Price Index declined 26.36 points, 1.31 percent, to 1,981.30 as of 11:20 a.m.Investors' appetite for less risky assets appeared to be growing amid a high-profile scandal that centers on allegations that a confidante of President Park Geun-hye interfered in state affairs and peddled influence.Also, concerns persis
[ECONOMY AT RISK] Indicators warn of economic crisis in Korea

Nov 1, 2016

Economy battered by Choi Soon-sil scandal, Galaxy Note 7 debacle and Hyundai Motor strike
Korea's current account surplus narrows to $8.26 bln in Sept.

Nov 1, 2016

South Korea posted a current account surplus for the 55th straight month in September but suffered a decline from a year earlier due to sluggish outbound shipments, central bank data showed Tuesday.The current account surplus reached $8.26 billion in September, compared with a $10.84 billion surplus a year earlier, according to the preliminary data from the Bank of Korea.But the September figure marks a rise from $5.28 billion in August. The current account is the biggest measure of cross-border
Korea's consumer prices rise 1.3% on-year in Oct.

Nov 1, 2016

South Korea's consumer prices rose more than 1 percent for the second consecutive month in October amid concerns over potential deflation in Asia's fourth-largest economy, government data showed Tuesday.The country's consumer price index rose 1.3 percent last month from a year earlier, marking the highest monthly gain since February, according to the data compiled by Statistics Korea.The index stayed over the 1 percent level for the second straight month, following a growth of less than 1 percen
Scandal brings renewed attention to 'quasi-tax' burdens on companies

Oct 31, 2016

Allegations that President Park Geun-hye’s closest confidants used their influence to coerce the country’s big conglomerates into making multimillion-dollar donations to two nonprofit foundations have served to draw attention to the increasing extra tax burdens local companies are compelled to shoulder.The Mir and K-Sports foundations, established in 2015 and early this year, respectively, collected about 80 billion won ($70 million) from 53 corporations in just a few months.Choi Soon-sil, who m
Production, consumption slip in September

Oct 31, 2016

South Korea’s industrial output and consumption shrank in September, government data showed Monday, reflecting the nation’s dire economics situation. The impact from sluggish exports, the Galaxy Note 7 recall, Hyundai Motor strike and Hanjin Shipping bankruptcy were felt on the indexes of industrial output and consumption in September, according to data released by Statistics Korea. The index of all industry production in September decreased by 0.8 percent from the previous month
Ministry plans W11tr orders for shipbuilders

Oct 31, 2016

Finance Minister Yoo Il-ho said Monday the government will order more than 250 public vessels, including naval and military vessels, worth more than 11 trillion won ($9.6 billion) by 2020 to help ailing local shipbuilders deal with the drying up of new orders.For the shipping industry, the government will give 6.5 trillion won in fresh financing to help shippers secure new vessels, he said.“The global shipbuilding industry is likely to recover from 2018. However, by 2020, orders will not reach t
Number of college graduates defaulting on student loans up 8 times in 3 years

Oct 31, 2016

The number of college graduates who failed to pay back their student loans jumped nearly eight times in three years, data showed Monday, in the latest sign of financial trouble for young South Korean workers.Under the student loan program that began 2010, college graduates are required to pay back their loans in case they earn more than 18.56 million won ($16,000) a year.Last year, a total of 86,715 college graduates were obliged to start paying back their loans.Among them, 7,912 college graduat
Loan delinquency rate for conglomerates hits new record high in Sept.

Oct 31, 2016

The delinquency rate of South Korean banks' won-denominated loans to large companies hit a new all-time high in September after the nation's No. 1 shipper was put under court receivership, government data showed Monday.The rate rose to 2.67 percent during the month, up 0.08 percentage point from a month earlier, according to the data compiled by the Financial Supervisory Service. This undated file photo shows bank workers handling corporate financing. (Yonhap)It marks the highest since the relat
More people cancel installment savings amid slump

Oct 31, 2016

More South Koreans have canceled their installment savings accounts before maturity this year, industry data showed Monday, an apparent sign that an increasing number of ordinary people are feeling the pinch from the country's sluggish economy.The early cancellation rate of installment savings accounts at Shinhan, KB Kookmin, KEB Hana and three other major banks came to 45.2 percent as of end-September, up sharply from 42.6 percent the previous year.Industry sources said households, when they ex
Public firms' hirings rise 15% through Sept.

Oct 31, 2016

The number of people newly employed by South Korea's state-run corporations rose 15 percent this year from a year earlier amid a slump in the local job market, government data showed Monday.Some 320 state-funded companies and organizations hired 14,790 new employees through September this year, up from 12,877 a year ago, according to the data compiled by the Ministry of Strategy and Finance.A total of 296,000 are working at the institutions, up 3.2 percent, or 9,224, from a year earlier, with fo
[Budget 2017] Rival parties spar over corporate tax hike

Oct 30, 2016

As the National Assembly last week began a 40-day review of the government’s budget plan for 2017, opposition lawmakers are pushing hard to raise corporate tax, citing the need to curb a growing fiscal deficit. Ruling lawmakers and the government, however, strongly oppose the idea, saying it would exacerbate the already depressed business sentiment.Saenuri Party lawmaker Yoo Seong-min (right) talks with People‘s Party lawmaker Park Joon-young at a public hearing for the parliamentary review of t