Most Popular
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Contentious grain bill put directly to plenary meeting for vote
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Yoon's approval rating plunges to all-time low
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Will tug-of-war between doctors, government end soon?
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Climate impacts set to cut 2050 global GDP by nearly a fifth
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Trilateral talks acknowledge ‘serious’ slumps of won, yen
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[KH Explains] Hyundai's full hybrid edge to pay off amid slow transition to pure EVs
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North Korea removes streetlights along cross-border roads with South
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Russia's denial of entry of S. Korean national unrelated to bilateral ties: Seoul official
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Farming households dip below 1m for first time in 2023
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S. Korea votes in favor of Palestinian bid for UN membership
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Public outlays grow amid sluggish private consumption
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
Aug. 15, 2018
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Deregulation needed to spur corporate investments
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
Aug. 13, 2018
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OECD warns Korea is facing some stiff challenges
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
Aug. 12, 2018
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Oil price, minimum wage, heat wave expected to fuel inflation
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
Aug. 12, 2018
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Business loan increase weigh down on BOK’s rate hike dilemma
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
Aug. 9, 2018
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Korean economy decoupled from robust global growth
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
Aug. 8, 2018
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Vegetable prices jump 5.4% in single week from heat wave
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
Aug. 8, 2018
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Reality bites for hopes of peninsular economic cooperation
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
Aug. 7, 2018
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Declining construction investment worsens unemployment
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
Aug. 6, 2018
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Finance minister calls for corporate support in job creation, innovative growth
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
Aug. 6, 2018
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More companies report zero net profit in 2017
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
Aug. 6, 2018
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S. Korea’s tax burden to exceed 20% in 2018
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
Aug. 5, 2018
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Household loans at 5 major banks reach W548t in July
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
Aug. 4, 2018
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State firms to spend over W30tr to nurture innovative growth
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
Aug. 2, 2018
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S. Korean exports little affected by demand from advanced nations: report
South Korean triathletes said Thursday they'll try to bring home the first Asian Games gold medal from Indonesia this year.The triathlon team to compete at the Aug. 18-Sept. 2 Asian Games in Jakarta and Palembang, Indonesia, hosted a launching ceremony in Seoul. The triathlon events will be held on Aug. 31 and Sept. 1 in Palembang.Triathlon first became an Asian Games medal sport in 2006. South Korea has won two medals so far -- a women's bronze by Jang Yun-jung in 2010 and a mixed relay silver
Aug. 2, 2018
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Online shopping purchases continue to increase in June
Purchases made using the Internet and mobile devices in South Korea continued to show solid growth in June, government data showed Thursday, demonstrating the popularity of smartphones, fast delivery and convenient payment options offered to local shoppers.The total value of transactions made with computers, smartphones and tablets reached a record 8.72 trillion won ($7.79 billion) in June, up 19.6 percent from a year earlier, according to the data from Statistics Korea.The sharp rise was attrib
Aug. 2, 2018
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Weak inflation hampers BOK’s rate hike timeline
South Korea’s economy found itself in a prolonged deadlock in July, as its long-stalled domestic market failed to gain upward momentum, in contrast to the steady growth of the outbound sector, data showed Wednesday.The static trend of the market price index also weakened the recent speculations that the central bank may increase the policy rate within the year. The country’s exports in July stood at $51.88 billion, growing 6.2 percent on-year and rebounding from the slight fall in th
Aug. 1, 2018
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Finance Ministry changes English name
South Korea’s Finance Ministry has changed its formal English name, seeking to better convey its role as the nation’s headquarters for financial policies and economic affairs, officials said Wednesday.The former Ministry of Strategy and Finance was renamed as the Ministry of Economy and Finance, starting Wednesday, the ministry said in a press release. “The latest change in the English name was based on internal feedback, surveys conducted on key foreign organizations and forei
Aug. 1, 2018
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Korea's exports rebound in July
South Korea's exports rebounded in July from the previous month's slight fall, largely due to a continued rise in outbound shipments of chips and petrochemical goods, government data showed Wednesday.Outbound shipments rose 6.2 percent on-year to reach $51.88 billion last month, marking the second-largest monthly figure, according to the data compiled by the Ministry of Trade, Industry and Energy. The reading also marks the first time that the country's monthly exports topped the $50 billi
Aug. 1, 2018
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[Monitor] Heat wave leads to more traffic accidents
The number of traffic accidents increased by around 8 percent this summer compared to last year, a phenomenon largely attributable to a record-breaking heat wave, a report by Samsung Traffic Safety Research Institute showed.By analyzing over 1.86 million road accidents that occurred from June to August 2016-2018 (up until July 23, 2018) that involved their car insurance subscribers, the institute said the average number of accidents soared when temperatures escalated.For instance, while an avera
July 31, 2018