An increase in government spending, which has been precipitated under President Moon Jae-in’s administration, contrasts with sluggish private consumption in the country.Economists note that expanded public expenditure coupled with dampened private consumption will do little to reinvigorate the Korean economy that is losing growth momentum.Recent data from the Bank of Korea showed government outlays accounted for 23.63 percent of the country’s domestic final consumption expenditure in

Regulatory reforms need to be accelerated to ensure that massive investment plans unveiled or drawn up by the country’s major conglomerates will be implemented smoothly in the coming years, economists say.In the past months, six local business groups have announced plans to make new investments worth more than 330 trillion won ($290 billion) and hire 188,000 workers, with investment periods spanning one to five years.Samsung, Korea’s largest conglomerate, last week unveiled an invest

The Organization for Economic Cooperation and Development raised warnings that Korea's economy is facing some serious challenges going forward, an analysis of data showed Sunday.The alarm comes as the organization representing developed market economies with high income adjusted down Seoul's composite leading indicator , backtracking 0.3 point to 99.2 in June from the previous month. The CLI is designed to provide early estimates six to nine months down the line on fluctuations in a nation's bus

The latest increase in the global oil price and the country's minimum wage, along with the heat wave are anticipated to push up the cost of living in South Korea, a report showed Sunday.According to the report released by the Hyundai Research Institute, the country is set to be affected by a hike in living costs following multiple factors, including the increase in raw material prices and the minimum wage.The outlook came as the price of oil, which was around $26.9 per barrel in early 2016, curr

In addition to the series of slack economic indices, the latest statistics on bank loans has added further weight to burgeoning speculations that South Korea’s central bank is likely to shelve its policy rate hike action this month, holding off the inevitable decision to later in the year.The loan balance for private businesses as of the end of July stood at 304.6 trillion won ($272.6 billion), up 2.5 trillion won from a month earlier, marking the steepest on-month jump in four months, acc

The Korean economy is being decoupled from a robust recovery of the global economy this year, held back by sluggish domestic demand and deteriorating external conditions.Last month, the Ministry of Economy and Finance and the Bank of Korea revised down their 2018 growth forecasts for Asia’s fourth-largest economy to 2.9 percent from an earlier prediction of 3 percent. The Korean economy expanded 3.1 percent last year.Private economists, however, remain skeptical about the possibility of th

Prices of vegetables jumped more than 5 percent last week from the week before as the heat wave continued, while the price of ice cream fell by over 40 percent, data showed Wednesday.According to a portal operated by the Korea Consumer Agency that tracks food costs, vegetable prices increased 5.4 percent as of Friday from the previous week. Processed seafood became 7 percent more expensive, and fish 2.4 percent. For vegetables, the price of cabbage was up the most, climbing 41.2 percent. Spinach

The Korea Herald is publishing a series of articles featuring inter-Korean relations to mark the paper’s 65th anniversary that falls on Aug. 15. Following is the fifth installment. - Ed.The possibility that the long-reclusive North Korea may open up its market for extensive development is likely to act as hopeful momentum for South Korea’s economy, which has stalled in slow growth and sluggish employment.Despite all the alluring factors, however, rosy promises of the inter-Korean eco

Weakening construction investment is cited by economists as a key reason for the country’s deteriorating unemployment and decelerating growth.According to a recent report from the Construction and Economy Research Institute of Korea, the on-year increase in domestic construction investment, which averaged 7.6 percent in 2017, dropped to 1.8 percent in the first quarter of this year and minus 0.7 percent in the following three months.The number of jobs created by construction investment shr

PYEONGTAEK -- South Korea's top economic policymaker on Monday urged Samsung Group, the country's leading conglomerate, to do more to create jobs and spearhead innovative growth in the latest appeal to the business community to join the government's job-first policy.In a meeting with Lee Jae-yong, the de facto chief of Samsung Group, and other top executives in Pyeongtaek, south of Seoul, Finance Minister Kim Dong-yeon stressed the importance of cooperation between the private sector and the gov

The number of companies that either made zero net profit or pure profit of more than 10 billion won ($8.87 million) both increased last year, records from the National Tax Service showed Monday, indicating a growing gap between firms at opposing ends.According to the records on corporate tax payments, a total of 264,564 companies reported zero net profit for last year, up 9.8 percent from the previous year. The latest total is the highest since the tax agency began keeping records in 2012. Such

South Korea’s tax burden this year is likely to surpass 20 percent of gross domestic product for the first time, on the back of the government’s expansionist fiscal operations, officials said Sunday.The nation’s tax income this year is estimated at 365 trillion won ($323.6 billion), up 5.5 percent from the previous year, according to data compiled by the Ministry of Economy and Finance and Ministry of Interior and Safety.Of the estimated total, national taxes will account for 2

Household loans at South Korea's five major banks reached an accumulated 548 trillion won at the end of July as people continue to borrow money to buy a house, the lenders said Saturday.  The five banks -- KB Kookmin Bank, Shinhan Bank, Woori Bank, KEB Hana Bank and NH Nonghyup Bank -- held a combined 547.7 trillion won in household loans at end-July, up 7.4 percent from 509.8 trillion won a year earlier, their data showed. The government has announced packages of measures to stabilize the

State-led companies plan to spend over 30 trillion won ($27 billion) in key leading sectors, such as autonomous driving, by 2022, thus creating an environment for private companies to seek innovative growth, the country's chief economic policymaker said Thursday."To boost innovative growth, state-run companies will play a vital role, and they will spearhead investment," Finance Minister Kim Dong-yeon said in an economy-related ministers meeting. "The government will also expand su