The Korea Herald

China's hard landing not likely, but still possible: report

Aug 31, 2016

The Chinese economy is showing signs of improvements centered around growth in its domestic consumption, but the possibility of a hard landing still lingers due to growing corporate debts, a South Korean think tank said Wednesday.In a report, the Korea Economic Research Institute noted the possibility of China's hard landing has been somewhat reduced on a rise in local spending."Initially, there had been concerns that China's economic restructuring might create a hindrance to its growth, but suc
Presidential office calls for 'timely' passage of extra budget bill

Aug 31, 2016

The presidential office Cheong Wa Dae on Wednesday reiterated its calls for a "prompt, timely" passage of an extra budget bill that has stalled over partisan bickering over outlays."Timing is crucial for the extra budget this time, which is designed to address (the potential fallout from) the restructuring of major industries, and create jobs," presidential spokesman Jung Youn-kuk told reporters. "(We) hope for a swift passage (of the extra budget bill)." This photo, taken on April 14, 2016, sho
Korea's industrial output gains 1.6% on-yr in July

Aug 31, 2016

South Korea's industrial output advanced for the third month in a row in July on a rise in chips and chemical production, a government report showed Wednesday.Production in the mining, manufacturing, gas and electricity industries rose 1.6 percent last month from a year ago, according to the report by Statistics Korea. The July figure marks the third straight month of advance, following a 4.7 percent jump in May and a 0.8 percent gain in June.From a month earlier, industrial output also climbed
[News Focus] Korean economy braces for US rate hike impact

Aug 30, 2016

All eyes and ears are on the US Federal Reserve -- will the world’s most influential central bank raise its interest rate twice this year?Analysts are scrambling trying to decode what Fed Chairwoman Janet Yellen said at a recent symposium in Kansas City, Jackson Hole, Wyoming, followed by Fed Vice Chairman Stanley Fischer’s televised interview.“Looking ahead, the Federal Open Market Committee expects moderate growth in real gross domestic product, additional strengthening in the labor market, an
[Graphic News] Korea to build network of smart expressways by 2020

Aug 30, 2016

The Transport Ministry plans to build a network of smart expressways that will include new sections of road where electric vehicles can be charged on the go, officials said Tuesday.Under the plan, the government will build an additional 1,000 kilometers of expressway, extending the total length in the country to 5,131 kilometers by 2020. This will create a complete network in which nearly 96 percent of the country’s population will be able to access an expressway within 30 minutes from their hom
Gov't proposes 2017 budget in excess of record 400 trillion won

Aug 30, 2016

The South Korean government aims for a 3.7 percent increase in its spending next year to push the annual budget above the 400 trillion won ($358 billion) mark for the first time, with steep rises planned for youth job creation, expansion of custom-made welfare benefits and stabilization of public livelihoods, the finance ministry said Tuesday.The proposed 2017 budget calls for boosting spending on job creation, education, defense, and culture and tourism by 10.7 percent, 6.1 percent, 4 percent a
BOK chief cites heightened possibility of rate hike in US

Aug 30, 2016

The head of South Korea's central bank said Tuesday that there is a heightened possibility that the US Federal Reserve could raise its interest rates.Bank of Korea Gov. Lee Ju-yeol made the comment in a meeting with leading economists and scholars on the current economic conditions, citing recent remarks by Federal Reserve Chair Janet Yellen.Last week, Yellen said the Federal Open Market Committee continues to anticipate that gradual increases in the federal funds rate will be appropriate over t
Views mixed over house prices growth

Aug 29, 2016

Measures announced by the government last week to curb the country’s soaring household debt showed the dilemma policymakers face in handling the local housing market.The government plans to reduce the supply of new apartments and residential plots by the state-funded Korea Land and Housing Corp. in a bid to hold down mortgage loans seen as the main culprit for the rapid increase in household debt.But it stopped short of implementing more effective and fundamental measures to cut borrowing by hom
Korea's income gap is smaller than OECD average

Aug 29, 2016

South Korea's wage gap between its high school and university graduates is smaller than the average of the Organization for Economic Cooperation and Development, data showed Monday.According to data compiled by Seoul's Ministry of Employment and Labor, average wages of the country's university graduates are 37 percent higher than those of high-school graduates. The OECD average wage gap stands at 56 percent. In terms of the wage gap, South Korea ranked 23rd among the OECD member countries. (Yonh
Koreans' average insurance coverage tops 47 mln won

Aug 29, 2016

South Korea's insurance policyholders can receive coverage worth 47.5 million won ($42,600) on average through their life insurance contracts, industry data showed Monday.According to the Korea Life Insurance Association, last year's figure represents a sharp rise from 5.44 million won in 1993, when related data began to be compiled. (KLIA)The comparable figures were 21 million won in 2001, 31.6 million won in 2006 and 40 million won in 2012, the data showed.The average coverage is obtained by d
KEPCO inks deal to buy US solar power plant

Aug 28, 2016

The state-run Korea Electric Power Corp. on Sunday said it has signed a deal to buy a US solar power plant, making inroads into the US electricity market.Under the deal with Cogentrix Energy Power Management, part of the Carlyle Group LP, KEPCO will buy a 30 megawatt solar power plant in Alamosa, Colorado.The deal is estimated at $34 million.KEPCO said it will be able to generate $230 million in sales over a 26-year period by selling electricity there. The Alamosa plant started its operations in
Financial sector sheds 1% of jobs this year

Aug 28, 2016

The number of employees in South Korea's financial industry has declined nearly 1 percent in the first six months of the year amid a protracted industrywide slump and subsequent restructuring moves, data showed Sunday.As of end-June, the number of employees at 117 major local financial companies -- including banks, and insurance, securities and card firms -- stood at 194,106, down 1,919, or 1 percent, from the end of last year, according to the data compiled by corporate researcher CEO Score.The
Korea, Japan agree to resume currency swap deal

Aug 28, 2016

South Korea and Japan on Saturday agreed to resume a currency swap deal, which expired last year, as part of their efforts to strengthen bilateral economic cooperation amid a global slowdown and a possible US rate hike."The two countries agreed to start negotiations to reopen the currency swap deal," South Korea's Finance Minister Yoo Il-ho said after a finance ministers' meeting with his counterpart Taro Aso in Seoul."It represents the strong economic cooperation between Seoul and Tokyo amid ri
Consumer sentiment reaches 8-month high

Aug 26, 2016

South Korea’s overall consumer sentiment reached an eight-month high in August on the back of growing expectations of an economic recovery.The Bank of Korea said Friday that the composite consumer sentiment index reached 102 last month, up from 101 in July.This marked that highest since December last year, and a second consecutive increase, the central bank data showed. A reading above 100 indicates that more households are positive about their economic future.Analysts say that Korea’s sovereign
Korean stocks close lower on U.S. woes

Aug 26, 2016

South Korean shares closed lower Friday as investors took to the sidelines amid growing concerns over a U.S. rate hike. The local currency further gained ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index lost 5.42 points, or 0.27 percent, to 2,037.50. Trading volume was slim at 268.85 million shares worth 3.69 trillion won ($3.31 billion), with losers outnumbering gainers 431 to 367.The index opened sharply lower, tracking overnight losses on Wall Street, partly caus