US Fed keeps key lending rate unchanged for 3rd straight time

The US Federal Reserve held its benchmark lending rate steady for a third consecutive time during a monetary policy meeting on Wednesday, saying inflation has eased over the past year though it still remains elevated. After the two-day Federal Open Market Committee meeting, the central bank announced the decision to keep the rate between 5.25 and 5.50 percent, and hinted that its hiking campaign -- launched in March 2022 -- may be near or at an end. FOMC members' latest median economic proj

Dec. 14, 2023

Korea to improve market access for foreign investors

South Korea is lowering the bar considerably for foreign investors to enter the local capital market with several new measures -- including the abolishment of a cumbersome registration policy -- set to come into effect Thursday. The new measures are being implemented in around a year since local financial regulators announced them in January, as part of their efforts to attract more overseas investment and meet global standards. Among the reforms is the abolition of a 30-year-old registration po

Dec. 13, 2023

S. Korea pushing to require shrinkflation signs on products for downsizing

The finance ministry said Wednesday the government will push to make it mandatory for companies to put shrinkflation warning signs on their products if they reduce packet contents without a price fall to match. The measure is in response to growing public complaints about shrinkflation practices, where companies downsize their products while keeping prices unchanged without any notice, shifting a rise in production costs to consumers amid high inflation. After a monthlong investigation, the gove

Dec. 13, 2023

Korea's trade to turn around in 2024 on tech recovery

While South Korea's trade balance is likely to record a surplus next year after three years of struggle, experts warned that the country should brace for worsening global economic instability and geopolitical complications. At a seminar held by the Korea International Trade Association on Tuesday in Seoul, experts presented outlooks for next year's export environment and trade issues related to the US presidential election, along with geopolitical risks. Overall, Korea's trade is

Dec. 12, 2023

[Herald Interview] 'Reunification could damage S. Korea’s sovereign rating'

North Korea is the only potential trigger for a downgrade of South Korea’s current sovereign rating of AA -- the third-highest level on the S&P Global Ratings table, an expert from the credit appraiser said. If reunification of the Korean Peninsula is to happen -- though it is a very “unlikely scenario” -- South Korea’s sovereign rating could take a hit, according to Kim Eng Tan, senior director for the sovereign ratings team in Asia-Pacific. "(Reunification) i

Dec. 12, 2023

Exports gain 3.3% from Dec. 1-10 on solid demand for cars, ships

South Korea's exports rose 3.3 percent on-year in the first 10 days of December despite the fall in sales of semiconductors, data showed Monday. Outbound shipments reached $15.79 billion in the Dec. 1-10 period, compared with $15.29 billion tallied a year earlier, according to the data from the Korea Customs Service. Per-day exports jumped 18 percent on-year to $2.26 billion. The number of working days during the cited period came to seven days, compared with eight days from a year earlier.

Dec. 11, 2023

S. Korea to launch pan-govt commission on enhanced supply chain management

South Korea will establish a government-wide commission for the comprehensive management of supply chains of items necessary for major industries and the people's everyday lives amid growing supply chain risks, the finance ministry said Monday. The government also plans to create a fund to secure critical items and support investment in relevant facilities as the country seeks to reduce dependence on China and other nations to better ensure stable supply chains of key items, according to th

Dec. 11, 2023

Banks mull W2tr in cash back for small-business owners

Local banks are considering a financial support program worth 2 trillion won ($1.52 billion) for owners of small businesses by giving back a part of their loan payments, amid prolonged inflation and high interest rates. The measure was discussed Thursday during a task force meeting of local financial institutions and regulatory bodies aimed at finding means to support the public livelihood, industry sources said Sunday. The first of the collective efforts is set to be a cash-back rewards scheme

Dec. 10, 2023

S. Korea's exports of dried seaweed hit new record in 2023

South Korea's exports of dried seaweed hit a new record on the back of growing awareness of healthy food around the globe, data showed Sunday. Outbound shipments of dried seaweed, called "gim" in Korean, reached $670 million over the January-October period, up 20.4 percent from a year earlier, according to the Ministry of Oceans and Fisheries. The ministry noted the combined export volume came to $700 million as of Nov. 10, surpassing the previous record of $690 million for the en

Dec. 10, 2023

China's consumer prices hit 3-year low with factory cost decline

China's consumer prices experienced their fastest decline in three years this November, while factory-gate deflation deepened, indicating increasing deflationary pressures as weak domestic demand casts doubt on the economic recovery The consumer price index dropped 0.5 percent both from a year earlier and compared with October, data from the National Bureau of Statistics (NBS) showed on Saturday. That was deeper than the median forecasts in a Reuters poll, which predicted 0.1 percent declin

Dec. 9, 2023

S. Korea logs current account surplus for 6th month in October

South Korea logged a current account surplus for the sixth straight month in October on the back of a trade surplus, a reduction in the service deficit and increased dividend income from overseas, central bank data showed Friday. The country's current account surplus reached $6.8 billion in October, widening from the surplus of $5.42 billion the previous month, according to preliminary data from the Bank of Korea. October's surplus came as the country's trade balance has remained

Dec. 8, 2023

S. Korea to support corporate emergency urea imports

The South Korean government will push to pay for part of urea imports when companies need to buy the chemical from nations other than China as part of efforts to prevent a supply shortage and ensure a longer-term stable supply, the industry minister has said. Industry Minister Bang Moon-kyu made the remarks during a meeting with reporters Wednesday, as China's recent suspension of customs procedures for urea shipments to South Korea has raised concerns about a supply crisis. "We have enough

Dec. 7, 2023

Twitch plans to shut down in S. Korea over high network costs

Twitch, a popular U.S.-based live game streaming platform, said Wednesday it plans to shut down its South Korean service in February next year due to high network usage fees in the country. In an announcement posted on its corporate blog, Twitch Interactive Inc. CEO Dan Clancy said the company "made the difficult decision to shut down the Twitch business in Korea on February 27, 2024." Clancy said the cost to operate Twitch in South Korea was "prohibitively expensive" and sai

Dec. 6, 2023

Korea, Britain finance chiefs discuss economic dialogue, investment ties

The finance ministers of South Korea and Britain on Tuesday discussed the establishment of a bilateral economic dialogue and investment cooperation channels as follow-up measures to last month's summit of their leaders, Seoul's finance ministry said. During a video conference with Britain's Chancellor of the Exchequer Jeremy Richard Streynsham Hunt, South Korea's Finance Minister Choo Kyung-ho voiced expectations for stronger bilateral cooperation on energy, supply chains a

Dec. 5, 2023

'Making economy more dynamic a top priority': finance minister nominee

South Korea's finance minister nominee on Tuesday said strengthening economic stabilization efforts for citizens' livelihoods while continuing the government's drive for reform would be the key priorities under his leadership. Choi Sang-mok, the nominee for the country’s top economic policymaker, made the remark during his first gathering with the local press Tuesday, following his nomination by the presidential office Monday. The former senior presidential secretary for eco

Dec. 5, 2023

S. Korea's economy grows 0.6% in Q3, unchanged from earlier estimate

South Korea's economy grew 0.6 percent in the third quarter of the year, matching an earlier estimate, on the back of reviving exports and domestic demand, central bank data showed Tuesday. The country's real gross domestic product -- a key measure of economic growth -- increased 0.6 percent on-quarter in the July-September period, according to data from the Bank of Korea (BOK). The third-quarter expansion compares with the 0.6 percent on-quarter expansion in the second quarter and the

Dec. 5, 2023

S. Korea's inflation slows in Nov., stays over 3% for 4th month

South Korea's inflation grew at a slower pace last month, though it stayed above 3 percent for the fourth consecutive month amid high prices of energy and farm goods, data showed Tuesday. Consumer prices, a key gauge of inflation, rose 3.3 percent in November from a year earlier, compared with a 3.8 percent on-year increase the previous month, according to the data from Statistics Korea. It is the first time in four months that the annual price growth has eased. The on-year price growth fell bel

Dec. 5, 2023

Yoon’s chief economist tapped as finance minister

Choi Sang-mok, the former senior presidential secretary for economic affairs, has been nominated as the new finance minister who doubles as the deputy prime minister, according to the presidential office on Monday. Born in 1963 in Seoul, Choi studied law at Seoul National University and earned a doctorate in economics at Cornell University. He passed the civil service examination in 1985. He is known as an "orthodox economic bureaucrat" who has a strong understanding of economic poli

Dec. 4, 2023

Ex-LH CEO nominated as land minister

Park Sang-woo, the former CEO of the Land and Housing Corporation (LH), has been nominated as the new minister of land, infrastructure and transport, according to the presidential office on Monday. Having joined the ministry in 1983, Park boasts expertise in land and transport policy for decades. He is known to have played a role in shaping housing policies during the Lee Myung-bak and Park Geun-hye administrations. He also served as the head of the state-run housing agency between 2016 and 2019

Dec. 4, 2023

About half of top 500 firms remain undecided on 2024 investment plans: poll

About half of big firms in South Korea remain undecided on their investment plans for next year, according to a survey released Monday, an indication of how many companies are going through economic uncertainties. In the survey conducted by polling agency Mono Research on the leading 500 companies in terms of sales from Nov. 16-24, 49.7 percent responded they remain undecided on next year's investment plans. Also, 5.3 percent of the respondents said they have no investment plans next year.

Dec. 4, 2023