Income gap between haves, have-nots widened as low-income brackets face job losses

South Korea's imports of consumer goods from Japan plunged 37 percent in April from a year earlier due to Japan's export curbs and the new coronavirus impact on consumer spending, government data showed Sunday. The value of imported Japanese consumer goods fell on-year to $249 million last month as Korean consumers still opt not to buy Japan-made products amid trade tensions between Seoul and Tokyo, and the COVID-19 outbreak, according to the Korea Customs Service (KCS). In particular, impor

As South Korea is likely to face a severe economic shock in the second quarter under the novel coronavirus pandemic, the quarterly performance will determine the nation’s growth for the entire year, Vice Finance Minister Kim Yong-beom said Friday. “Shocks are expected to be concentrated in the second quarter,” Kim said during a meeting with senior ministry officials. “As the risks stemming from (the pandemic) prolong, it could evolve into a bigger risk that could sha

Preparing for the Asian Development Bank’s annual meeting to be held in Songdo in September, South Korea’s government on Friday chaired a pre-session to handle key agendas in advance. During the 30-minute teleconference, presided by Korean Deputy Prime Minister and Finance Minister Hong Nam-ki, the board of directors approved the ADB’s annual financial report and reiterated joint efforts for regional prosperity according to the Ministry of Economy and Finance. Earlier in Mar

The global OLED TV market, led by South Korea's LG Electronics Inc., is expected to post relatively small growth this year, compared with the QLED TV sector, following a disruption in panel supply caused by the novel coronavirus pandemic, a market report showed Friday. The global OLED TV shipment is expected to increase 7.8 percent on-year to 3.375 million units this year, according to display market tracker WitsView, a research division of TrendForce. The figure was a 26.1 percent decrease f

South Korea's provision of emergency relief funds began to boost private consumption, raising revenues of small merchants hit hard by the new coronavirus pandemic in the first week of the payout, data showed Friday. In a one-off aid program, the government began offering the relief funds totaling 14.3 trillion won ($11.6 billion) to all households last week to help them cope with the economic fallout of the COVID-19 outbreak. Mom-and-pop shops still are suffering from business setbacks due to

South Korea's first-quarter exports of eight new-industry goods jumped despite a drop in overall exports due to the new coronavirus pandemic, data showed Friday. Overseas shipments of those products came to $21 billion in the January-March period, up 17 percent from a year earlier, according to the data from the Korea International Trade Association (KITA). They include next-generation semiconductors, biohealth products, electric vehicles, new-energy goods, robots, aviation products and drone

SEJONG -- South Korea plans to comprehensively examine its rules on foreign exchange trading as it seeks to ensure dollar liquidity amid lingering uncertainties in global markets over the coronavirus pandemic, Vice Finance Minister Kim Yong-beom said Thursday. Measures to help banks inject more dollars into local markets, including an eased rule on the foreign exchange liquidity coverage ratio (LCR), will be put into place for the time being, Kim said during a meeting with senior officials fr

South Korea’s producer price index, which serves as a yardstick for inflation, slipped 0.7 percent on-month in April, extending its decline for the third consecutive month, data from the central bank showed Thursday. The index, which reflects how domestic producers receive price changes regarding their outputs, came to 102.08 last month, which fell from the corresponding and revised figure of 102.82 in March. The figure slipped 1.5 percent on-year. The Bank of Korea said that the index

While the global market dwindled and corporate assets depreciated amid the COVID-19 pandemic, the limited range and number of companies and assets with growth momentum have gained popularity from investors across borders. In order to keep the balance between economic revitalization and protection of “strategic business assets,” policymakers should raise the threshold for aspiring foreign investors here, according to a state-affiliated think tank. “The preliminary screening pr

SEJONG -- South Korea's household income rose in the first quarter from a year earlier, but the income gap between the haves and have-nots widened, as the employment situation of the low-income bracket worsened amid the coronavirus pandemic, a report showed Thursday. The average household earned 5.35 million won ($4,357) per month in the first quarter, up 3.7 percent from the previous year, according to the report by Statistics Korea. Household income earned through wages rose 1.8 percent on

Government to run fund for virus-hit industries, set up a W10tr SPV to stabilize bond market

  South Korea's corporate tax revenue is expected to decline this year for the first time in six years due to the coronavirus impact on major industries, a local think tank said Wednesday. The country's corporate tax revenue rose in the past five years to 72 trillion won ($59 billion) in 2019 from 45 trillion won in 2015, according to the Korea Economic Research Institute (KERI). This year, however, corporate tax revenue could reach an estimated 56.5 trillion won, 12 percent lower than

Foreign currency deposits at banks in South Korea reached a four-month high in April, central bank data showed Wednesday, amid market fluctuations caused by the new coronavirus outbreak. Foreign currency deposits here came to $78.18 billion as of end-April, up $2.89 billion from a month earlier, according to the data from the Bank of Korea (BOK). The reading marks the highest since $79.94 billion tallied at end-December. The monthly increase, however, marks a sharp slowdown from a $6.78 billi

SEJONG -- Service output declined in 14 provinces and cities in South Korea in the first quarter of this year as the coronavirus pandemic took a heavy toll on the service industry, data showed Wednesday. However, service output in Seoul -- home to one-fifth of South Korea's 51 million-strong population -- rose 2.3 percent on-year in the first quarter, helped by robust gains in the financial and property sectors, Statistics Korea said in a report. The southern res