[THE INVESTOR] With the government seen leaning toward compiling a supplementary budget, attention is now being drawn to the size of the possible fiscal boost. Experts said the government has room for a “sizable” extra budget of more than 10 trillion won, given that this year’s tax collection was running 23 percent higher than the year before.  “The government will actively reinforce fiscal measures in the second half of the year,” Finance Minister Yoo Il-ho said Friday, predicting a tougher tim

[THE INVESTOR] The net short-term foreign liabilities of major South Korean lenders have exceeded 40 trillion won (US$34.09 billion), raising concerns about the banks’ foreign currency soundness. According to analyst estimates, the combined foreign liabilities of the country’s six major banks that will mature in less than two years stood at 37.11 trillion won as of last week. The total owed by all local lenders currently stands well above 40 trillion won, considering the additional 2.9 trillion

[THE INVESTOR] There is a saying, “Money does not grow on trees.” One has to work really hard to earn it.But making an honest buck in this age of low interest rates and low growth has become harder than ever.It is not as if Koreans do not work hard. In fact, Koreans work the longest hours after Mexicans among member countries of the Organization for Economic Cooperation and Development. Koreans worked 2,124 hours in 2014, according to the latest data. Working long hours does not necessarily mean

[THE INVESTOR] The Korean economy will continue to face tough internal and external conditions, the country’s top economic policymaker said on June 17. Speaking at a conference with think tanks, Deputy Prime Minister and Minister of Strategy and Finance Yoo Il-ho said that difficult conditions will continue and that the government will roll out necessary counter measures. Deputy Prime Minister Yoo Il-ho(second from right) is speaking at a conference with think tanks.“Internal and external condit

 [THE INVESTOR] Korea’s current account surplus with China fell nearly 20 percent last year due to the sluggish growth of the world’s second largest economy, central bank data showed June 17.The current account surplus with China came to $45.14 billion in 2015, a 19.5 percent decline from the previous year’s $56.06 billion, according to data from the Bank of Korea. The figure decreased for two straight years since 2013 when it reached $56.69 billion. Busan PortThe central bank cited a drop in ex

[THE INVESTOR] The latest financial regulations released by the government in efforts to secure foreign currency stability met with mostly positive responses from industry watchers.Regarding one of the key features requiring banks to raise their foreign exchange liquidity coverage ratio for banks, experts said the move would eventually lead to reinforcing the health of the banking sector. As a part of the stability plans, financial regulators said local banks will be required to raise their FX L

[THE INVESTOR] South Korea’s shipbuilding industry is expected to remain lackluster while auto, electronics and steel industries are unlikely to improve in the second half of this year, experts said on June 16. They said local shipbuilders are likely to suffer a lack of fresh orders, a move that could put further strain on embattled shipyards.They made the predictions on the country’s major industries in a seminar organized by the Federation of Korean Industries that speaks for the country’s lar

[THE INVESTOR] Seoul is looking to strengthen the ability of local banks to deal with sudden changes in the international market, the financial authorities announced after a meeting Thursday. As part of the plans -- finalized at a meeting between the financial regulators, central bank and Finance Ministry -- local banks will be required to raise their foreign exchange liquidity coverage ratio to 80 percent by 2019. The FX LCR is maintained at a level between the net forex outflow expected over a

[THE INVESTOR] A significant rise in South Korea’s tax revenues in the first four months of this year is credit-positive for Korea as it will help support the government’s stimulus packages, Moody’s Investors Service said on June 16. In December, Korea’s credit ratings was upgraded from Aa3 to Aa2 by the rating firm, which changed its economic forecast from positive to stable, noting its stronger economic and fiscal fundamentals compared to China and eurozone countries. “The increased tax revenu

[THE INVESTOR] Weak employment and low inflation led the U.S. Federal Open Market Committee to freeze its federal fund rate at 0.25 to 0.50 percent, extending the possibility and uncertainty over a rate rise, analysts say.The U.S. FOMC said that it will maintain its benchmark interest rate, but remains “accommodative,” indicating that it will adjust its monetary policy in accordance with conditions in the labor market and consumer prices.“In determining the timing and size of future adjustments

[THE INVESTOR] In a move expected to further boost bilateral trade, the Korea-Colombia free trade agreement will take effect next month, the government said on June 16.Colombia informed South Korea earlier in the day that it has completed the ratification process of the deal clinched in 2013, the Ministry of Trade, Industry and Energy said, adding that the deal will go into effect on July 15. South Korean cars are waiting to be shipped overseas.                                               Hera

Below is an article from “Moody‘s Credit Outlook”, 16 Jun 2016 issue.Last Friday, Korea’s (Aa2 stable) Ministry of Strategy and Finance (MOSF) announced that it had collected KRW96.9 trillion in taxes in the first four months of the year, a 23% increase from the same period a year earlier and already 43% of the government’s targeted tax revenues for 2016.The increased revenue is credit positive for the sovereign because it supports government finances. Moreover, the increased tax revenue reflect

[THE INVESTOR] Seoul is looking to strengthen the ability of local banks to deal with sudden changes in the international market, the financial authorities announced after a meeting Thursday. As part of the plans -- finalized at a meeting between the financial regulators, central bank and Finance Ministry -- local banks will be required to raise their foreign exchange liquidity coverage ratio to 80 percent by 2019.   pixabay.comThe FX LCR is maintained at a level between the net forex outflow ex

[THE INVESTOR] North Korea’s trade volume came in at $6.25 billion in 2015, dropping 18 percent compared to the previous year, South Korean data showed on June 15. According to the data released by the Korea Trade-Investment Promotion Agency, both exports and imports recorded a year-on-year drop to bring down Pyongyang’s overall trade volume.The data showed that exports dropped 15 percent to come in at $2.7 billion, imports fell 20 percent to come in at $3.55 billion. With the changes, Pyongyang

[THE INVESTOR] South Korea will start an intensive investigation targeting dozens of individual and corporate offshore tax evaders who did not voluntarily pay taxes, the National Tax Services said on June 15. The NTS, the country’s tax authority, said that some 36 people are subject to the probe, including three or four suspects who hid assets in tax havens and were listed in the leaked files known as the Panama Papers. The crackdown comes as a six-month grace period offered by the tax agency en