Moody‘s Investors Service says that against a backdrop of weak external demand, Korea’s (Aa2 stable) export-dependent growth model has come under pressure. The consequently weakening operating environment underpins the negative outlook on the banking system. However, Moody‘s expects Korea’s fiscal, institutional and external metrics to remain strong when compared to rating peers, which supports the stable outlook on the sovereign rating.In a just-released report titled “Government of Korea: FAQ

[THE INVESTOR] Korea’s monthly exports to China shrank for the 11th consecutive month in May, matching the record set in 2008 and 2009, industry data showed on June 23. According to the Korea International Trade Association, Korea’s exports to China came in at US$9.93 billion in May, falling 9.1 percent from a year ago. Korea’s exports to China have shown year-on-year drop since July 2015. However, the rate of decrease has slowed in recent months, the data showed. From December to April, Korea’s

[THE INVESTOR] Korea’s economic recovery is being delayed as local companies are fast losing vitality, a study conducted by LG Economic Research Institute showed. Korea’s equity market that is in the doldrums reflects the downtick in business activities here, Lee Han-deuk, senior researcher at the think tank said in his report published on June 20. The study notes that the compound annual growth rate of Korean firms’ market capitalization slowed to 3.2 percent between 2011 and 2015, compared to

[THE INVESTOR] Korea’s exports will show small improvement in the second half of the year, the Institute for International Trade projected in a report released on June 22. In the report, IIT projected that Korea’s exports will come in at US$260.5 billion in the second half of the year, up 0.9 percent from the same period last year. The IIT cited developed nations’ economic recovery, rising oil prices and improving demand from emerging economies for the projection. The IIT forecast that crude oil

[The INVESTOR] Korea’s economy is expected to grow at a similar rate this year on the recovery of exports in the second half. Facility investment, however, will record minus growth, according to a leading economic think tank. Korea Institute for Industrial Economics and Trade released its economic and industrial outlook for 2016 on June 22. It predicted the gross domestic product in the first half of the year at 2.9 percent and the second half at 2.3 percent, averaging the figure of 2.6 percent

[THE INVESTOR] The South Korean government exceeded its fiscal spending plans during the first five months of the year to help stimulate the lackluster economy, the Finance Ministry said June 22. The government had earlier announced that it would spend approximately 60 percent of this year’s 280 trillion won (US$242 billion) budget set aside for the central government in the first half. The ministry said it has used 135.1 trillion won of the budget in the first five months of the year, surpassin

[THE INVESTOR] The head of South Korea‘s central bank will visit Basel, Switzerland this week for the annual general assembly of the Bank for International Settlements, the Bank of Korea said on June 22. BOK Gov. Lee Ju-yeol will depart on June 23 to attend the 86th BIS General Assembly to be held over the weekend.BOK governor Lee Ju-yeolWhile in Basel, the South Korean top central banker will also attend the BIS Global Economy Meeting and the Meeting of the Asian Consultative Council where he w

[THE INVESTOR] Bank of Korea Gov. Lee Ju-yeol said on June 22 that the Korean economy is expected to see increasing external and internal uncertainties in the second half of the year. He pointed out that the UK’s referendum result on Britain’s exit from the European Union could further spur volatility in global financial market, during a meeting with economic experts held at the central bank’s headquarters in Seoul. Bank of Kora Gov. Lee Ju-yeol. The InvestorLee also expressed concerns that the

[THE INVESTOR] Korea Inc. is expected to show steady growth in the second quarter but only if Samsung Electronics is included in the club. Local securities firms have revised up their projections for aggregate operating profit of 172 companies listed on the benchmark KOSPI to 33.83 trillion won (US$29.2 billion) as of June 22, up 1.67 percent from their forecast a month earlier. “The burden of KOSPI’s high valuation has been eased as major companies’ Q2 revenue forecasts have continuously increa