South Korea plans to sell 13.9 trillion won ($12.4 billion) in state bonds next month, the finance ministry said Thursday. The ministry will issue 700 billion won in Treasurys with a maturity of two years for the first time in an effort to soothe market uneasiness from its planned massive bond sales, according to the Ministry of Economy and Finance. It will also float 3 trillion won in three-year government bonds, 2.7 trillion won in five-year government debts and 2.9 trillion won in bonds wit

South Korea’s current snowballing budget deficit, fueled by the COVID-19 pandemic “can be offset by gradual consolidation” in coming years, the International Monetary Fund said Thursday. The remark by Andreas Bauer, Korea mission chief at the IMF, apparently aims to alleviate concerns surrounding the nation’s government debt surged by four rounds of supplementary budgets implemented to finance COVID-19 relief programs. The sovereign debt is projected reach 956 trillio

South Korea's terms of trade rose for the ninth consecutive month in December as export prices increased at a faster pace than import prices, central bank data showed Thursday. The nation's net terms-of-trade index for goods -- a gauge of trade terms -- increased 7.2 percent last month from a year earlier, according to preliminary data from the Bank of Korea (BOK). It marked the ninth straight month of an on-year rise since April, when the trade terms logged the first on-year hike in over two

South Koreans' consumption of rice hit a record low in 2020, data showed Thursday, due mainly to changes in diet and eating habits. The average South Korean consumed 57.7 kilograms of rice in 2020, down 2.5 percent or 1.5 kilograms from the previous year, the Ministry of Agriculture, Food and Rural Affairs said, citing the data compiled by Statistics Korea. Rice is a key staple food for Koreans, but its consumption has been on a steady decline since 1980, when per capita average annual rice co

The International Monetary Fund (IMF) recommended Thursday that South Korea further carry out accommodative fiscal and monetary policies, including rate cuts, in a bid to accelerate its economic recovery amid the pandemic. Despite rising budget deficit, the country also has fiscal room for increasing targeted support to people and businesses hit hard by the new coronavirus outbreak, according to Andreas Bauer, Korea mission chief at the IMF. An IMF team, led by Bauer, unveiled the outcome of i

South Korea's financial watchdog said Thursday it has decided to advise local banks to reduce dividends this year to help them better cope with the impact of the coronavirus outbreak. The decision, among other things, recommends lenders to keep their dividends below 20 percent of earnings, according to the Financial Services Commission (FSC). But the recommendation doesn't apply to dividends that banks pay out to their holding companies. Two state lenders -- the Korea Development Bank and the

South Korea's imports of Japanese beer plunged nearly 86 percent in 2020 due to a local boycott of goods from the neighboring country, data showed Thursday. Seoul brought in $5.67 million worth of Japanese beer last year, down 85.7 percent from a year earlier, according to the data from the Korea Customs Service and the liquor industry. The tumble follows a drop to $39.76 million in 2019 from a peak of $78.30 million a year earlier. South Koreans launched the boycott in protest of Japan's exp

South Korean manufacturers' business sentiment rose in February, but concerns about sluggish consumption persisted amid the coronavirus pandemic, central bank data showed Thursday. The business sentiment index (BSI) for local manufacturers came to 81 for February, up from 77 for January, according to the data from the Bank of Korea (BOK). The index measures manufacturers' outlook on business conditions in the following month. A reading below 100 means pessimists outnumber optimists. In Decemb

The International Monetary Fund (IMF) said Wednesday that it would be desirable for South Korea to selectively provide assistance to sectors and people hit hard by the pandemic as economic recovery is uneven. During a conference call with Finance Minister Hong Nam-Ki, Andreas Bauer, Korea mission chief at the IMF, said South Korea needs to maintain policy support to tackle economic slumps caused by the new coronavirus outbreak. An IMF team held its annual meetings with South Korea's finance mi

South Korea's national pension fund earned nearly 58 trillion won ($52.6 billion) from stock investments in 2020 thanks to the bullish stock market, data showed Wednesday. As of Friday, the National Pension Service (NPS) held 181.3 trillion won worth of shares in 275 companies, of which it owns 5 percent or more, according to the data from corporate tracker CEO Score The amount was up about 47 percent, or 57.7 trillion won, from the start of last year. The bulk of last year's gains came from

Several foreign investment banks (IBs) have revised up their forecasts for South Korea's 2021 economic growth following the economy's relatively good performance last year, a report showed Wednesday. Out of six foreign IBs and one research institute that published reports on Asia's fourth-largest economy Tuesday, three upgraded their growth outlooks by 0.1 to 0.3 percentage point, according to the report by the Korea Center for International Finance. These institutions predict the South Korean

South Korea's corporate direct financing gained 10.8 percent on year in 2020 as the coronavirus pandemic prompted more companies to tap the bond market to raise funds, data showed Wednesday. Local companies raised a combined 194.4 trillion won ($175.6 billion) by selling stocks and bonds last year, up 18.9 trillion won from 2019, according to the data from the Financial Supervisory Service (FSS). Corporate stock sales more than doubled to 10.9 trillion won, with the value of initial public off

South Korea's consumer sentiment improved in January as a third wave of coronavirus infections showed signs of slowing down amid hopes for vaccine rollouts, central bank data showed Wednesday. The composite consumer sentiment index (CCSI) came in at 95.4 for January, up 4.2 points from the previous month, according to the data from the Bank of Korea (BOK). A reading below 100 means pessimists outnumber optimists. The latest reading marks the first on-month gain following a drop in December, w

The International Monetary Fund has raised its growth outlook for South Korea this year to 3.1 percent from the earlier figure of 2.9 percent estimated in October last year, the Ministry of Economy and Finance said Tuesday. The nation’s economic growth projection improved largely thanks to the government’s aggressive policy responses to the COVID-19 crisis, including economic stimulus packages as well as strict quarantine measures, according to a report released by the ministry on

Asia’s fourth-largest economy contracts for the first time in 22 years, amid COVID-19 pandemic, but rebound is anticipated for 2021