Struggling with weak job numbers and slack facility investment, President Moon Jae-in Friday tapped a veteran fiscal policy expert as the new finance minister who will spearhead his signature income-led growth policy.The nomination of Hong Nam-ki, currently chief of the Office for Government Policy Coordination, comes as the South Korean economy is showing signs of a slowdown amid internal and external challenges.Some economic data have even hinted that Seoul maybe heading towards a period of ec

The replacement of the nation’s top two economic policymakers had long been speculated as inevitable for the Moon Jae-in administration to keep its policy momentum amid prolonged economic challenges and mounting skepticism over next year.After months of denying rumors about the reshuffle, the presidential office Cheong Wa Dae on Friday announced the replacements for Deputy Prime Minister and Finance Minister Kim Dong-yeon and presidential chief of staff for policy Jang Ha-sung.Kim was repl

In replacing the top two economic policymakers on Friday, Cheong Wa Dae has chosen insiders from the incumbent bureaucratic society. Hong Nam-ki, 59, who was named to replace Kim Dong-yean as deputy prime minister and finance minister, has been serving as chief of the Office for Government Policy Coordination since May 2017, the beginning of the Moon Jae-in administration.He is marked for his diverse experience not only in government departments, but also in the presidential secretariat und

Kim Dong-yeon, Jang Ha-sung step down amid stagnant economy

Retail sales and service output in restructuring-hit regions continued to remain in a slump in the third quarter, government data showed Thursday.According to the data compiled by Statistics Korea, service output in South Gyeonsang Province, North Jeolla Province and Ulsan city suffered a decline of 0.8 percent, 0.6 percent and 0.2 percent, respectively, in the July-September period, from a year earlier.Retail sales in South Gyeongnam, North Jeolla and Ulsan also logged negative growth, the late

Some 15 billion won ($13.4 million) will be allocated in the national budget next year to assist Korean small and medium-sized companies making inroads into the Southeast Asian market, a presidential aide said Wednesday, calling the region “a blue ocean” for Korean companies.“Even if it is a blue ocean market, financial assistance is needed for companies entering the market with insufficient capital,” said Kim Hyun-chul, presidential adviser for economic affairs, at a mee

Calls are growing for the government to increase infrastructure spending to shore up the country’s slowing economy and improve its worsening employment conditions.Since its launch in May last year, President Moon Jae-in’s administration has refrained from following in the footsteps of previous administrations, which sought to bolster the economy by undertaking massive infrastructure projects. It has been particularly critical of the attempt by former President Lee Myung-bak’s g

South Korea reported a sharp decline in the price of gasoline, diesel and liquefied petroleum gas Tuesday, as the government effectuated its temporary tax break on vehicle fuels in an effort to alleviate the people’s economic burden, data showed.According to Opinet, the oil information platform run by the Korea National Oil Corporation, the average per liter price of gasoline here stood at 1,677.39 won ($1.49) at around 2:30 p.m. on Tuesday, down 12.91 won from a day earlier and marking th

South Korea's current account remained firmly in the black in September despite a slight decrease in goods surplus, central bank data showed Tuesday.The country's current account surplus came to $10.83 billion in September, down from a record $12.29 billion a year earlier, according to the preliminary data from the Bank of Korea. The number rose from a month earlier when it stood at $8.44 billion.It is the first time in one year that the favorable balance surpassed the $10 billion mark. Asia's f

The slowing Korean economy has been shadowed by the possibility of a steep asset devaluation, which could push it deep into a long-term recession.With investment declining and employment worsening, a simultaneous fall in stock and real estate prices could see the country go through something similar to Japan’s “two lost decades” spanning the 1990s and 2000s, economists here warn.They call for pre-emptive measures to prevent continued asset devaluation from further dampening eco

Korea’s FEZs to focus on attracting Korean anchor companies, new industries

A senior Goldman Sachs economist was named head of the Presidential Committee on Northern Economic Cooperation, the presidential office said Sunday. Kwon Goo-hoon, 56, will replace Rep. Song Young-gil of the ruling Democratic Party as chairman of the committee that was formed to reinforce economic and other forms of cooperation with the northern region, including Eurasia.Song quit in late July to run for chief of the ruling party.A graduate of Seoul National University, Kwon earned his Ph.D from

Further tax cuts should be offered to government-designated industrial crisis zones in order to create an actual investment effect, according to Prime Minister Lee Nak-yon on Sunday.“I suggest we discuss ways to further increase the investment tax deduction rate in industrial crisis zones,” Lee said at the government and ruling party meeting held at the National Assembly.“Related tax revision bills are currently pending for (parliamentary) approval, but the current level (of ta

The price gap between South Korea's most expensive apartments and its cheapest ones widened to a more-than-seven-year high last month amid an overheated urban real estate market, industry data showed Sunday.According to the data compiled by Kookmin Bank, apartment prices in the top 20 percent group reached an average 694.1 billion won (US$621,000) last month, up 22.3 million won from a month earlier. Prices of apartments in the bottom 20 percent band fell 610,000 won on-month to an average 115.3

The number of low-paid people hired by South Korea's public and governmental organizations rose at the fastest pace in five years in the first half of this year amid sluggish employment conditions, government data showed Sunday.In public administration, defense and social welfare, 387,000 employees were paid less than 2 million won (US$1,800) per month during the January-June period, up 45,000 from a year earlier, according to the data from Statistics Korea. The on-year increase was the largest