S. Korea to offer tax, financial support to victims of downpour

South Korea will provide all available tax and financial support to the victims of the recent downpour, the finance minister said Friday, while focusing on preventing its impact on consumer prices of agricultural goods. The move came as the recent heavy rains in the central region damaged 34,583 hectares of farmland while killing 825,000 livestock, including 769,1000 chickens as of Thursday. "The government will concentrate all policy efforts in terms of budget, tax and finance to support t

July 21, 2023

S. Korea to speed up digitalization of service sector

South Korea's finance ministry said Friday the country will speed up efforts to adopt digital technologies in the service sector, with the goal of enhancing its competitiveness and bringing convenience to everyday life. The latest move comes in line with efforts to apply the latest technologies, including artificial intelligence, to various areas ranging from logistics and finance to public administration, according to the Ministry of Economy and Finance. "So far, the limited utilizati

July 21, 2023

Minimum wage set at 9,860 won: No one's happy

Korea has set its minimum wage level for 2024 at 9,860 won ($7.80) per hour, up 2.5 percent from this year’s 9,620 won. The raise would translate to a monthly income of 2.06 million won, based on a 40-hour workweek. The decision was made early Wednesday following a 15-hour meeting of the Minimum Wage Commission, composed of members spanning labor, business and the general public. Though eyes were on whether the minimum wage for next year would surpass the 10,000 won barrier, considering so

July 19, 2023

S. Korea seeks participation in Turkmenistan's plant construction projects

South Korea's top industry official on Wednesday asked for Turkmenistan's support for Korean companies in winning major plant construction projects in the central Asian country, the industry ministry said. Minister Lee Chang-yang made the request during a meeting with Baymyrat Annamammedov, Turkmenistan's deputy prime minister for construction, industry and electric power, in Seoul, according to the Ministry of Trade, Industry and Energy. Currently, South Korean companies are work

July 19, 2023

ADB slashes S. Korea's growth outlook for 2023 to 1.3%

The Asian Development Bank on Wednesday slashed its growth outlook for the South Korean economy to 1.3 percent, citing sluggish exports and investment. The downward revision came three months after the Manila-based bank suggested a 1.5 percent rise for Asia's fourth-largest economy. Earlier this month, the South Korean government also cut its growth forecast for this year by 0.2 percentage point to 1.4 percent. In June, the Organization for Economic Cooperation and Development lowered its 2

July 19, 2023

Choo asks Yellen to consider Korea's requests for IRA

In his meeting with Yellen, Choo delivered his gratitude for the US' efforts to communicate with Korea regarding the Inflation Reduction Act and the CHIPS and Science Act, while requesting the US government’s attention to Korean companies with business in the country. The IRA gives a tax credit to buyers of electric or fuel cell vehicles assembled in North America. To qualify for the tax credit, EVs must have batteries that contain at least 40 percent critical materials extracted or p

July 18, 2023

Tripartite commission set to decide next year's hourly minimum wage

A tripartite commission representing business, labor and the general public was set to meet Tuesday to determine next year's hourly minimum wage amid speculation about whether it would break the 10,000-won mark for the first time. The 27-member Minimum Wage Commission, composed of nine representatives each from the three sectors, was scheduled to hold a plenary session at 3 p.m. at the government complex in the central city of Sejong. The commission is expected to come up with a decision Tu

July 18, 2023

S. Korea to attend RCEP talks in Indonesia this week

South Korea will take part in a joint committee meeting of a regional mega trade pact to be held in Indonesia this week, the industry ministry said Tuesday. The fourth joint committee meeting of the Regional Comprehensive Economic Partnership will take place in Surabaya, Indonesia, from Tuesday through Wednesday, and some 80 officials from 15 member nations plan to discuss the establishment of its secretariat and the overall management, according to the Ministry of Trade, Industry and Energy. Du

July 18, 2023

[Graphic News] FDI pledges to S. Korea hit record high in H1

Foreign direct investment pledges to South Korea jumped 54.2 percent on-year in the first six months of this year to reach a record high for any first-half period, data showed. The country received $17.09 billion of FDI commitments in the January-June period, compared with $11.09 billion logged a year earlier, according to the Ministry of Trade, Industry and Energy. This year’s figure is the largest ever for any January-June period, with the previous record being $13.14 billion in 2021. Fo

July 18, 2023

Korea's household debt burden ranks No. 2 globally

Korea’s household debt is rising at an alarming pace, coming in second in terms of size and growth rate among major economies, data showed Monday. According to a report issued by the Bank of International Settlements, a financial institution based in Basel, Switzerland, the debt service ratio for households in Korea stood at 13.6 percent last year, the second highest among 17 major countries in the world, just behind Australia at 14.7 percent. The DSR gauges how much a borrower has to pay

July 17, 2023

BOK unlikely to cut rates this year: Gov. Rhee

The Bank of Korea is unlikely to cut interest rates this year because of uncertainty in the inflation outlook and massive household debt, central bank Gov. Rhee Chang-yong said Friday. "It is difficult to say that we will lower the interest rates for the time being, so don't expect too much that there will be a drop in the interest rates," he said during the 45th Jeju Forum hosted by the Korea Chamber of Commerce and Industry at Jeju Haevichi Hotel Resort. "We will look at

July 14, 2023

Economy's downward pressure eased as exports show recovery signs

South Korea's economy is experiencing eased downward pressures on the back of improving exports, the finance ministry said Friday, although the country still faces an ongoing economic slowdown. "(The economy's) downward pressures are easing on the back of partial recovery of the sluggish exports, sound domestic consumption, improved economic sentiment and robust employments," the Ministry of Economy and Finance said in a report. The ministry nevertheless mentioned an economic

July 14, 2023

BOK extends rate pause amid cooler inflation

The Bank of Korea kept the base rate unchanged at 3.5 percent Thursday, going for a fourth consecutive freeze as inflation has shown signs of cooling down significantly. The six-member monetary policy board unanimously voted for a rate freeze, while agreeing to keep the terminal rate at 3.75 percent, BOK Gov. Rhee Chang-yong said at a press conference held shortly after the rate-setting meeting. The central bank was able to maintain the rate, as inflation has been giving firmer signs of easing

July 13, 2023

BOK holds key rate steady at 3.5%

The Bank of Korea kept its key interest rate unchanged for the fourth consecutive time as inflation seems to be on the wane. The central bank decided to hold the rate at 3.5 percent at its rate-setting meeting on Thursday, keeping the base rate steady since February. The BOK’s decision falls in line with the market projection which assumed the central bank would maintain the rate as the consumer prices growth in June fell to the 2 percent range for the first time in 21 months. Korea’

July 13, 2023

S. Korea's fiscal deficit narrows on-year through May

South Korea's fiscal deficit narrowed in the first five months of 2023 from a year earlier as the country cut spending on pandemic-related expenditures, data showed Thursday. The managed fiscal balance, a key gauge of fiscal health calculated on a stricter term, posted a deficit of 52.5 trillion won ($40.9 billion) in the January-May period, compared with a shortfall of 71.2 trillion won tallied a year earlier, according to the Ministry of Economy and Finance. South Korea's tax revenue

July 13, 2023

Import prices hit 18-month low in June on strong won, stable oil prices

Import prices fell to the lowest in 18 months in June to extend their on-month decline for the second straight month on the back of the strengthening Korean won and stable oil prices, central bank data showed Thursday. The import price index for June stood at 130.49, down 3.4 percent from May, according to the data compiled by the Bank of Korea. The June reading marks the lowest since December 2021. The index also fell 15.7 percent compared with a year earlier, marking the sharpest decline since

July 13, 2023

W8.6b returned to people who sent money to wrong accounts

A total of 8.6 billion won ($6.7 million) was returned to 7,015 people who wired money to the wrong accounts since July 2021, the Korea Deposit Insurance Corporation said on Wednesday. The Misdirected Wire Transfers Recovery Support System, implemented in July 2021, is a system that returns money that was sent by mistake, which applies to those who wired amounts between 50,000 won and 50 million won. Requests for return need to be filed within a year of the date transfer was made. The average am

July 12, 2023

Korea looks to lure more foreign workers

The Korean government plans to ease the visa quota for foreign workers to resolve growing labor shortage issues. “We will resolve the imbalance in the labor market by improving the working environment and using foreign human resources,” Finance Minister Choo Kyung-ho said at a meeting Wednesday. Choo said the government will lift the quota for the E-7-4 visa for skilled workers from 5,000 to 35,000 within the year and ease the standard on minimum annual income, which currently stands

July 12, 2023

Hyundai workers to hold strike in protest against 'anti-union' government

Unionized workers at Hyundai Motor Co. will hold a partial strike Wednesday in the South Korean carmaker's domestic plants in protest against the "anti-union" Yoon Suk Yeol government, the union said. Hyundai's day-shift and night-shift workers will hold a two-hour strike Wednesday, respectively, under the guidelines of the Korean Metal Workers' Union, a union spokesman said over the phone. The KMWU has been calling on the Yoon government to stop union repression and for

July 12, 2023

S. Korean banks' net income from overseas businesses down in 2022

South Korean banks' net income from overseas businesses decreased in 2022 from a year earlier on increased bad debt expenses, data showed Wednesday. The net income of domestic banks' overseas businesses sank to $991 million from $1.17 billion on-year, according to the Financial Supervisory Service. The FSS attributed the decrease to a rise in banks' bad debt expenses intended to prepare for bad loans amid global rate hikes. The banks' interest income rose 13.7 percent on-year

July 12, 2023