Korea likely to designate Oct. 2 as temporary holiday

    Finance Minister Choo Kyung-ho said the government was positively considering the ruling party's proposal to designate Oct. 2 as a one-off public holiday to allow people to have six consecutive days off work. "The ruling party made the suggestion to ensure the people's right to rest and to stimulate domestic consumption. The government agrees with the ruling party," Choo said in an interview held by a local broadcasting station Tuesday. Designating a temporary holiday on

Aug. 30, 2023

Over 50% of Korean firms missing earnings target in China this year: survey

China’s disappointing economic recovery has led more than half of Korean companies to miss their earning targets in the market, with abounding downside risks hampering the path to a rebound in the second half of the year, Korea’s major business lobby group said Wednesday. The Korea Chamber of Commerce and Industry raised concerns over the factors causing financial instability in China which could further drag Korean companies down, including its real estate market crisis, contracti

Aug. 30, 2023

Korea slams brake on budget growth

The Cabinet on Tuesday approved the 2024 budget proposal worth 656.9 trillion won ($497 billion), marking the lowest on-year growth in nearly two decades as the country suffers from sluggish tax revenue. The size of the second budget proposal drawn up by the Yoon Suk Yeol administration has increased by 2.8 percent from this year’s 638.7 trillion won, the smallest proposed increase since 2005. The budget for this year was 5.1 percent up on the previous year. “Due to the past administ

Aug. 29, 2023

S. Korea, S&P begin annual consultation meetings

South Korea on Monday began annual consultation meetings with global rating appraiser Standard & Poor's Global Ratings (S&P) to discuss the country's credit valuation and economic circumstances, the finance ministry said. The delegation, led by Kim Eng Tan, senior director of Asia-Pacific sovereign ratings at S&P, is visiting South Korea for three days of consultations through Wednesday, according to the Ministry of Economy and Finance. The delegation paid a courtesy visit

Aug. 28, 2023

[Photo News] Soaring fuel prices

Gasoline and diesel prices are displayed at a gas station in Seoul on Sunday, as diesel averaged over 1,600 won ($1.2) per liter, marking a six-month high following seven continuous weeks of rising gas prices. (Yonhap)

Aug. 27, 2023

Inflation fears grow on high fuel costs

The on-year growth in consumer prices is likely to bounce back to the 3 percent range from this month due to the spike in international oil prices. While inflation in Korea has been easing off this year, the Finance Ministry expects it to climb back, reaching the 3 percent range before coming down again in October. Korea's on-year growth in consumer prices has been showing signs of slowing down this year. It came down to 4.8 percent in February from 5.2 percent in January, and stayed in the

Aug. 27, 2023

Exports of fisheries products fall 12% this year: data

South Korea's exports of fisheries products fell more than 10 percent on-year during the first seven months of 2023, data showed Sunday. Outbound shipments of marine products came to $1.75 billion in the January-July period, down 11.5 percent from a year earlier, according to the data by the Korea Agro-Fisheries & Food Trade Corp. (aT). Global sales of major fisheries goods suffered a decline, with exports of tuna skidding 21.1 percent to $322 million and those of pollack sinking 82.8 p

Aug. 27, 2023

How will China's lifting of group travel ban affect Korea's GDP?

China’s lifting of group tours to South Korea is estimated to lead to 800,000 more travelers and raise Korea’s gross domestic product by 0.06 percent this year, the Bank of Korea said Friday. The resumption of group tours is expected to have a significant impact on the recovery of Chinese tourists visiting Korea, considering that about 40 percent of all Chinese tourists were group tourists before the restrictions were put in place, according to an economic outlook report released b

Aug. 25, 2023

BOK extends rate pause amid mounting US, China pressure

The Bank of Korea on Thursday kept its policy rate unchanged at 3.5 percent, maintaining it a fifth consecutive time amid growing China fears and a widened rate gap with the US. In a rate-setting meeting presided over by BOK Gov. Rhee Chang-yong, the six-member monetary policy board unanimously voted to maintain the current policy rate, which has stayed at 3.5 percent since February. “The board decided to hold the rate, projecting it would take significant time for the inflation rate, whic

Aug. 24, 2023

BOK holds rate at 3.5% amid China fears

The Bank of Korea on Thursday kept its policy rate unchanged at 3.5 percent, holding it for the fifth consecutive time since February. Recent economic indicators show inflation could rebound within this year as the base effect from last year’s dip in international oil prices wears off. Oil prices have been on the rise recently, too, adding to the growing inflationary pressure on the Korean economy, which heavily dependent on energy imports. Chinese deflation and default risks from its real

Aug. 24, 2023

Biz outlook hits 6-month low in August amid uncertainties

South Korea's business sentiment fell to the lowest level in six months in August amid continued uncertainties over the economy and monetary tightening here and abroad, a central bank poll showed Wednesday. Manufacturers' business sentiment index for August came to 67, down from 72 tallied for the previous month, according to the survey by the Bank of Korea. The index marks the lowest since February this year, when the comparable reading was 63. The index measures corporate prospects f

Aug. 23, 2023

Corporate direct financing down 32.8% in July

Corporate direct financing in South Korea contracted 32.8 percent in July from the previous month, data showed Wednesday. Local companies raised a combined 16.07 trillion won ($12.03 billion) by selling stocks and bonds last month, down 7.85 trillion won from June, according to the Financial Supervisory Service. Direct financing refers to raising funds directly from the stock and bond markets without borrowing from banks and other financial institutions. Stock sales shot up 58.6 percent on-month

Aug. 23, 2023

Exports down 16.5% during first 20 days of August

South Korea's exports fell 16.5 percent on-year in the first 20 days of August due to sluggish shipments of chips and petroleum products, data showed Monday. The country's outbound shipments reached $27.9 billion in the Aug. 1-20 period, compared with $33.3 billion tallied a year earlier, according to the data from the Korea Customs Service. Imports fell 27.9 percent on-year to $31.4 billion during the period, resulting in a trade deficit of $3.6 billion. South Korea's exports fel

Aug. 21, 2023

Korea’s economic recovery falters as China's deflation looms

The South Korean economy faces fresh risks from China, with no immediate breakthrough in sight to recover its faltering exports. Recent figures show worsened woes in Beijing, indicating the country’s economy could be on a path of decline. China has slipped into deflation, reporting a 0.3 percent drop in consumer prices in July on-year. It was the first time in 29 months for the figure to nosedive to a minus range. Further data showed its retail sales, industrial output and investment all

Aug. 20, 2023

S. Korea to closely monitor consumer prices of key items ahead of Chuseok

South Korea's finance ministry said Friday it plans to closely monitor consumer prices of key items ahead of the Chuseok holiday amid lingering economic uncertainties. "We plan to thoroughly manage the supply of highly demanded products for Chuseok, and roll out various promotional events under ties with the retail sector," First Vice Finance Minister Bang Ki-sun said during a meeting with economy-related vice ministers. The Chuseok holiday, the autumn harvest celebration, falls i

Aug. 18, 2023

Auto exports up 15% in July on strong eco-friendly car sales

South Korea's car exports jumped 15 percent on-year in July on the back of solid global demand for eco-friendly cars, the industry ministry said Thursday. The value of outbound shipments of automobiles came to $5.9 billion last month, compared with $5.14 billion a year earlier, according to data from the Ministry of Trade, Industry and Energy. It is the highest figure for any July, it added. During the first seven months of 2023, auto exports surged 41 percent on-year to $41.55 billion, and

Aug. 17, 2023

Import prices up in July on higher oil prices

South Korea's import prices rose in July largely due to the higher price of crude oil, central bank data showed Thursday. The import price index rose 0.4 percent last month from a month earlier, following a 3.9 percent fall tallied in June, according to the preliminary data from the Bank of Korea. The rise came as the cost of crude oil rose. Import prices are a major factor that determines the path of the country's overall rate of inflation. The Dubai crude price, South Korea's be

Aug. 17, 2023

Korean won slides amid strong US dollar, China fears

The Korean won declined below 1,340 won against the dollar during trading hours Wednesday, marking a new three-month low and reflecting increased volatility from the US’ stronger-than-expected economy and deflation worries in China, boosting the dollar's safe-haven appeal. The Korean won against the greenback opened at 1,340 won on Wednesday, 9.1 won higher than the previous trading day. Shortly after trading began, it fell back to 1,341 won, the weakest since the 1,343 won seen earli

Aug. 16, 2023

Container freight rates for major destinations down in July

Outbound container shipping costs for major destinations, including the United States and the European Union, fell in July from a month earlier, data showed Wednesday. The average rate for a 40-foot container from South Korea to the US west coast came to 4.37 million won ($3,265) in July, down 5 percent from the previous month, the data from the Korea Customs Service showed. Rates for the US east coast fell 1.9 percent to 4.65 million won on-month in July, with those for the EU routes moving dow

Aug. 16, 2023

SPAC listing market stable after rules eased: KRX

The Korea Exchange, the nation’s sole bourse operator, said Tuesday that the stock market for special purpose acquisition companies, or SPACs, remains stable after price fluctuations in the first months of eased regulations. A SPAC is a publicly traded shell corporation that is formed to raise capital through listings to acquire or merge with an existing company. Most SPACs make their debut at the public offering price of 2,000 won ($1.50) per share as mergers and acquisitions could be d

Aug. 15, 2023