South Korea‘s economy will likely grow 3.4 percent in 2012, down from 3.8 percent growth projected for this year, as global economic uncertainties affect exports, a private think tank said Tuesday. In its outlook for next year, LG Economic Research Institute said sluggish growth in industrialized economies is expected to hurt demand for durable goods and related parts. Such developments can directly impact the country’s outbound shipments.The institute said there may be some improvements in dome

The sudden death of North Korean leader Kim Jong-il will likely have a limited impact on South Korea's financial markets, a senior finance ministry official said Tuesday, citing relatively stable overnight offshore market situations.South Korea's stock and currency markets tumbled on Monday, sparked

The number of South Korean corporate bankruptcies jumped to a seven-month high in November, the central bank said Monday, raising concerns at signs of an economic slowdown.The number of companies that went belly-up totaled 130 last month, up from 118 in October, according to the Bank of Korea.The figure is the highest since 134 bankruptcies registered in April. The BOK added that the number of newly set-up firms reached 5,432 in November, growing 358 from the previous month.The default rate of c

South Korea plans to actively use its tariff quota system to cope with supply-side instability that can fuel inflationary pressure in 2012, the finance minister said Monday.In a meeting with economic policymakers, Bahk Jae-wan said Seoul plans to use the flexible tariffs to stabilize prices of products that may experience supply shortfalls.“There may be supply problems with products such as rice, dried chili peppers, garlic and pork in the coming months that can affect consumer prices,” he said.

South Korea is seeking to create an Asian financial safety next year as part of the Chiang Mai Initiative Multilateralization regime to better insulate the regional economies from a worldwide financial meltdown, the country’s senior economic policymaker said Monday.Speaking at the G20 global economic cooperation conference hosted by the Korea Development Institute, Finance Minister Bahk Jae-wan said that there is support and sympathy for setting up a regional precautionary credit line. The plan

South Korea’s real interest rate remained in negative territory for the 25th straight month in November, data showed Monday, raising concerns the trend will continue into next year amid a possible global economic downturn.The real interest rate, or the benchmark interest rate minus the consumer inflation rate, stood at minus 1 percent in November, according to the data compiled by the Bank of Korea.The November figure extended the minus real interest rate period to its longest streak since the B

By Yang Sung-jinSouth Korea’s stock market has demonstrated the most volatility of any market worldwide this year, data showed on Monday.Even aside from the turbulence sparked by the news of Kim Jong-il’s death, the financial industry’s data suggests that Korean investors rode a roller coaster ride this year, thanks to greater external uncertainties.The eurozone sovereign debt crisis, the growing local derivatives market and heavy reliance of the Korean economy on trades added to volatility, bro

By Cynthia J. KimThe death of North Korean leader Kim Jong-il sparked immediate concern in the market, pushing the won to a two-month low against the dollar and dropping Seoul stocks to a three-week low.The benchmark KOSPI lost 3.43 percent and closed at 1,776.93 after sliding as much as to 1,750.60 at around noon when North Korea announced that the communist leader died on Dec. 17. The local currency lost 1.4 percent to 1,174 won against the greenback after dipping as low as 1,179.95. The junio

Global rating firms predicted Monday that the death of North Korean leader Kim Jong-il would not lead to a downgrade of South Korea’s credit rating.Moody’s Investors Service said that the economic fundamentals of Seoul would not change with Kim’s death.“We will continue to rate South Korea on the basis of its economic, institutional and government financial fundamentals,” a senior vice president at Moody’s in Singapore was quoted by a Chinese news provider as saying.He said these would not chang

The death of North Korea's Kim Jong Il is not a ratings trigger in itself?for South Korea, Fitch Ratings said in an e-mail today. "However, clearly it gives rise to additional uncertainty and we will keep the situation under close review," the e-mail said.Moody’s Investors Service said the deat

TOKYO, Dec 19, 2011 (AFP) - The dollar rose against other currencies on Monday following news that North Korean leader Kim Jong-Il had died, which sparked worries over instability in the reclusive state.The greenback gained ground as market players digested the announcement from North Korean state t

The South Korean stock market was one of the world's most volatile this year as global uncertainties triggered massive flows of foreign capital in and out of the local bourse, data showed Monday.The local stock market moved 1.23 percent on a daily basis on average in 2011, sharply up from 0.73 perce