IMF dispels concerns of S. Korea’s rising budget deficit
EconomyJan 28, 2021
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 surging government debt, which is projected reach 956 trillion won ($859 billion) this year, gaining 150.8 trillion won on-year. “The 2021 budget rightly a
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S. Korea's daily FX turnover dips 5% last year amid won's gainMoneyJan 28, 2021The daily foreign exchange (FX) trading by banks in South Korea fell 5.3 percent on-year in 2020 as the local currency rose against the US dollar, central bank data showed Thursday. The daily FX turnover came to an average $52.8 billion last year, down $2.93 billion from the previous year, according to the data by the Bank of Korea (BOK). The BOK said the drop in the daily FX turnover came as the won's gain reduced demand to hedge risks with FX derivative trading. The Korean currency apprecia -
FSC recommends banks to keep dividends below 20% of earningsMoneyJan 28, 2021South Korea’s top financial regulator said Thursday it has decided to advise major banks to maintain their dividend payouts below 20 percent of net income during the first half of this year in response to the prolonged economic fallout of COVID-19. Under the latest guidance by the Financial Services Commission, local lenders are expected to cut payments to shareholders by about 5 to 7 percentage points. Last year, the country’s four major banking groups -- KB Financial, Shinha
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Dutch investor NNIP says Korean bonds have less upside potential than EM peersMoneyJan 28, 2021Netherlands-based investor NN Investment Partners said Thursday the search for yield will make emerging markets the most attractive destination for bond investors, but that South Korea was not likely to be their first choice. “Although Korea is part of the emerging market universe in indices, it is much closer to the developed than many other emerging market universe,” Valentijn van Nieuwenhuijzen, chief investment officer of NNIP, said in a teleconference with Korean reporters. & -
S. Korea's trade terms rise for 9th straight month in Dec.EconomyJan 28, 2021South 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 -
S. Koreans' consumption of rice hits all-time low in 2020EconomyJan 28, 2021South 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 -
Seoul stocks open sharply lower on US slumpMarketsJan 28, 2021South Korean stocks opened sharply lower Thursday, taking a cue from overnight drops on Wall Street. The benchmark Korea Composite Stock Price Index fell 49.67 points, or 1.59 percent, to 3,072.89 in the first 15 minutes of trading. Foreign selling increased as the US Fed did not announce new measures to quicken the economic recovery. Overnight, the tech-heavy Nasdaq composite retreated 2.61 percent, with the Dow Jones Industrial Average and the S&P 500 closing down 2.05 percent and 2.57 -
S. Korea needs additional stimulus dose for quick recovery amid pandemic: IMFEconomyJan 28, 2021The 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 -
Watchdog advises banks to cut dividends amid coronavirus impactEconomyJan 28, 2021South 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 -
Imports of Japanese beer tank in 2020 on anti-Japan campaignEconomyJan 28, 2021South 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 -
Manufacturers' business sentiment rises in FebruaryEconomyJan 28, 2021South 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 -
Venture investment hits record high in 2020MoneyJan 27, 2021South Korea’s venture investment set records in 2020 both in the number of deals and their value, despite the fallout from the coronavirus pandemic, the Ministry of SMEs and Startups announced Wednesday. The country’s investment in startups reached 4.30 trillion won ($3.89 billion) in 2020, adding 26.8 billion won, or 0.6 percent, from the previous year. The number of investment deals also hit a record high of 4,231 while the number of invested companies logged an all-time high -
Selective support to pandemic-hit sectors is desirable: IMFEconomyJan 27, 2021The 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 -
KB Securities wraps up sale of UK logistics facilityMarketsJan 27, 2021South Korean brokerage firm KB Securities said Wednesday that it had completed the sale of a UK logistics facility, in which it jointly invested with LB Asset Management in 2017. The two Korean companies bought the facility through funds designed to invest in UK property assets in 2017. The exact investment amount for the acquisition was not unveiled at the time. KB Securities and LB Asset Investment sealed the sale deal of the facility in January. The facility is leased to UK supermarket ch -
Seoul stocks fall on foreign selling ahead of US Fed meetingMarketsJan 27, 2021South Korean stocks slumped after a choppy session Wednesday, largely due to heavy foreign selling related to concerns over fiscal policy tightening in major financial markets. The Korean won rose against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) fell 17.75 points, or 0.57 percent, to close at 3,122.56 points. Trading volume was moderate at about 905 million shares worth some 19.4 trillion won ($17.6 billion), with losers outnumbering gainers 574 to 293. Foreigner
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