Lending rates on fresh bank loans dropped to new lows in August, central bank data showed Thursday, hinting at a further increase in the country's already record-high household borrowing.The average interest rate on fresh loans extended to households came to 2.92 percent in the month, down 0.20 percentage point from 3.12 percent the previous month, according to the data from the Bank of Korea. The average rate on fresh corporate loans also dropped by 0.20 percentage point to 3.32 percent over th

South Korea's financial stability worsened slightly in August due to a rise in household and corporate debt in the face of an economic slowdown, a central bank report showed Thursday.The country's financial stability index came to 8.3 at the end of last month, breaching the 8-point mark for the first time since early 2016, according to the Bank of Korea.The 8-point mark is the lower boundary for a warning, while an index of over 22 means the country may be in a financial crisis, according to the

The Asian Development Bank has slashed its growth outlook for South Korea this year to 2.1 percent, the bank said in a report released Wednesday.The latest outlook marks a sharp drop from April's 2.5 percent forecast.The bank cited the country's poor economic performance and adverse external factors that apparently include the US-China trade dispute.    The ADB also lowered its 2020 growth outlook for South Korea to 2.4 percent from the previous 2.5 percent.The South Korean econom

South Korea’s producer prices dropped in August on-year, according to data released by the central bank Tuesday, marking the second consecutive month of decline and feeding concerns that it may lead to a prolonged state of weak consumer prices. According to the Bank of Korea, the producer price index dipped 0.6 percent to 103.73 on-year in August. The reading follows July’s corresponding figure of 103.5, which fell 0.3 percent on-year and marked the first on-year drop in 33 months.&n

South Korea’s exports have plunged the most among G-20 nations due to the ongoing US-China trade conflict, data compiled by the World Trade Organization showed Monday.The country’s second-quarter exports dropped 8.6 percent on-year to $138.6 billion, marking the second-largest decline among G-20 members. Indonesia outranked Korea in terms of decline in exports with a 9.1 percent drop.  By nation, outbound shipments of those heavily reliant on either the US and China saw the stee

Raison d’etre questioned of once top-tier economic platform, but Japan seeks best use of membership

Management in Korea is a regular column written by the members of Egon Zehnder Seoul, touching on various aspects of Korean enterprises and business leaders, offering management tips. -- Ed.Nearly every presidential candidate in South Korea over the past two decades has made the same campaign promise and failed to deliver on it: End the near-monopoly chaebol -- family-owned conglomerates -- hold in the country and give smaller companies an opportunity to thrive. To enact some semblance of contro

“Mini” businesses selling products on Coupang have seen their businesses grow by 81 percent on average, with combined sales exceeding 2.65 trillion won ($2.22 billion) in 2018 alone, a report released by Coupang showed.These and other findings were included in the “2019 Coupang Mini Business Impact Report -- Small Giants Working With Coupang,” highlighting the socioeconomic correlation between Coupang, its business partners and local communities. It is the first such in-d

South Korea's exports of pork are expected to remain steady despite two confirmed cases of African swine fever in the country as the disease has been reported only in a limited area, officials said Sunday, The first-ever confirmed ASF case in South Korea was reported Tuesday in Paju, located near the heavily fortified border with North Korea. The second confirmed ASF case was reported in the neighboring Yeoncheon the next day.The confirmed cases sparked concerns over the local pork industry, inc

With US President Donald Trump casting doubt on the way the World Trade Organization categorizes global economies, South Korea’s finance minister said Friday that the government would take a cautious approach toward its developing-country status and the trade benefits that come along with it. “The other developing economies that are members of the WTO have been raising issues with the benefits that our nation receives through the developing country status, which is why now is the tim

The Organization for Economic Cooperation and Development (OECD) on Thursday slashed its growth outlook for South Korea's economy this year to 2.1 percent amid a slowdown in global trade.The OECD's interim outlook represented a drop from its previous forecast of 2.4 percent in May. It said the South Korean economy would grow 2.3 percent in 2020, also slower than its previous forecast of 2.5 percent.Growth in South Korea "has moderated by more than expected this year, in part due to persiste

South Korea’s central bank chief said Thursday that the latest US rate cut has created some policy space for easing actions amid the slowing economy.“The US Federal Reserve’s rate cut alleviates the burden for other countries in operating their own monetary policies,” Bank of Korea Gov. Lee Ju-yeol told reporters. On Wednesday local time, the Fed cut the base rate by a quarter percentage point to a range of between 1.75 percent and 2 percent. This was its second rate cut

The head of South Korea's central bank said Thursday the latest US rate cut may have created further room for his country to more actively support the local economy as it grapples with falling exports and sagging investment.On Wednesday (local time), the US Fed slashed its policy rate by 25 basis points to a range of between 1.75 percent and 2.0 percent in its second rate cut in two months -- and the second since 2008. "Of course the US Fed reducing its rate somewhat removes the burden for

Government vows to increase manpower in schools, military, lower barriers for qualified foreign workers

Latest Saudi drone attack to have limited impact on domestic oil supplies: vice minister