South Korea's monetary policy is considered still loose although the Bank of Korea delivered its first pandemic-era rate hike in August, a member of the BOK's rate-setting board said Wednesday. The remarks by Suh Young-kyung are expected to reinforce market expectations that the central bank may again raise its key rate later this year or early next year. "In spite of a hike in the key rate in August, the current monetary policy is still loose," Suh told a forum in Seoul. The BOK must

South Korea's terms of trade fell for the fifth consecutive month in August due to a rise in prices of imported goods, central bank data showed Wednesday. The nation's net terms-of-trade index for goods -- a gauge of overall trade terms -- declined 5 percent last month from a year earlier, according to preliminary data from the Bank of Korea (BOK). The figure is calculated by dividing the index for export prices by that for import prices. It shows the amount of imports a country can buy for each

Finance Minister Hong Nam-ki said Wednesday the government is speeding up a plan to supply homes in Seoul and other regions, as it seeks to curb high-flying home prices. In February, the government unveiled the plan that eased building regulations and supported redevelopment projects in urban areas to increase the number of new homes by up to 836,000 nationwide in the next four years. Some residents in the designated areas in Seoul have already voted in favor of the redevelopment projects, makin

South Korea's exports contributed the most in three years to the country's economic growth in 2020 amid the coronavirus pandemic, a report showed Wednesday. Overseas shipments contributed 0.6 percentage point to the country's economic growth last year, according to the report from the Korea International Trade Association (KITA). The contribution rate of exports was higher than 0.5 percentage point in 2019 and 0.1 percentage point in 2018. Last year, South Korea's nominal exports fell 5.5 percen

South Korea's business sentiment improved for October on expectations of a possible rebound in domestic consumption amid an accelerating nationwide vaccination drive, a local think tank said Wednesday. The business survey index (BSI) of the country's top 600 companies by sales rose to 103.4 for next month, up from 100.6 for September, the Korea Economic Research Institute (KERI) said in a statement. The business outlook stayed above 100 for a second straight month. The actual BSI stood at 98.9 i

A plan to adopt a critical ESG disclosure system by 2023 is lagging far behind other countries and should be implemented as soon as possible to foster environmental, social and governance investment, Ryu Young-jae, CEO of a leading ESG advisory firm said Tuesday. European countries adopted a sustainable finance disclosure system in 2018 and Japan in 2021. The US House of Representatives passed the ESG Disclosure and Simplification Act in June, according to Ryu. Under such a disclosure syste

South Korea’s chief economic policymaker vowed Tuesday to pursue environmental, social and governance-related policies with support, not regulations, to build a stronger cornerstone for the nation’s sustainable growth. Deputy Prime Minister and Finance Minister Hong Nam-ki, in his congratulatory speech at the second Korea Herald Finance and Investment Forum, said that the government will make various efforts such as helping industries establish a market-oriented system, creating ne

The Korea Herald’s 2nd finance forum addresses hopes, realities of adopting ESG values in Asia’s 4th-largest economy

Seoul mayor pins hopes on city attracting global ESG investments under its new investment agency

South Korea's exports are anticipated to rise 15 percent on-year in September on the back of robust demand for chips and automobiles, although the overall growth might slow due to fewer working days in the month, a poll showed Tuesday. Exports are expected to reach Imports are estimated to have gone up 26.5 percent on-year in September to $49.8 billion, resulting in a trade surplus of $5.3 billion. South Korea will release its official trade data Friday. In August, South Korea's exports have ext

South Korea's exports are anticipated to rise 15 percent on-year in September on the back of robust demand for chips and automobiles, although the overall growth might slow due to fewer working days in the month, a poll showed Tuesday. Exports are expected to reach Imports are estimated to have gone up 26.5 percent on-year in September to $49.8 billion, resulting in a trade surplus of $5.3 billion. South Korea will release its official trade data Friday. In August, South Korea's exports have ext

A majority of South Korean manufacturers expect their business conditions to worsen in the fourth quarter from three months earlier on a coronavirus resurgence and rising material costs, a poll showed Tuesday. A survey of about 2,300 manufacturing firms put the business sentiment index (BSI) at 91 for the October-December period, down 12 points from the third quarter, the Korea Chamber of Commerce and Industry (KCCI) said. A reading below 100 means companies expecting deteriorating business cond

Personal and corporate bankruptcies in South Korea increased by more than 10 percent last year, data showed Monday, reflecting the economic impact of COVID-19 on both businesses and households. According to the report released by the National Court Administration, the number of personal bankruptcies filed in 2020 rose by 10.4 percent from the previous year, from 45,654 cases to 50,379 cases. Last year’s tally was the biggest figure since 2015. After hitting a record high of 150,439 c

South Korea said Monday it will start a cash-back reward program for card spending next month in an effort to boost private spending amid the fourth wave of the pandemic. The two-month scheme will allow people to receive up to 100,000 won ($85) per month if their card spending exceeds 3 percent of their monthly average use in the second quarter, according to the Ministry of Economy and Finance. The government earmarked 700 billion won in its budget to fund the scheme, with an aim of boosting p

South Korea plans to unveil additional measures next month to curb household debts, the head of the financial regulator said Monday. Financial Services Commission (FSC) Chairman Koh Seung-beom said such measures will focus on improving ways of calculating a household's ability to repay debts. Koh said the government will continue to take stricter measures to rein in household debts, calling such debts the "biggest potential risk" on the nation's economy. Since July, the FSC has a