Concerns are rising that the new government’s policy to phase out nuclear power generation will result in rising electricity prices in the long run, posing an impediment to foreign investment in the country. Low electricity costs have been cited as a key factor leading foreign manufacturing firms to build factories in Korea despite other unfavorable conditions. In particular, many Japanese comp...

The number of apartments that cost more than 1 billion won ($892,000) nearly doubled over the past five years, as Seoul’s real estate prices continues to soar, according to data from property market research company Real Estate 114 on Wednesday. At the end of July 2012, the number of high-priced apartments exceeding 1 billion won stood at 105,773. As of this month, the figure increased to 204,7...

South Korea's ratio of tax burden to its gross domestic product will likely reach fresh record highs this year and next on a potential tax hike and rapidly rising government spending, government data showed Wednesday. According to the finance ministry, the government is expected to collect more than 250 trillion won ($223 billion) in national taxes by the end of 2017, up from an earlier target o...

South Korea's rapidly aging population is likely to reduce the nation's overseas equities investment as seniors will likely move to sell assets due to falling living standards, researchers at the Bank of Korea said Wednesday. As the global financial markets become more interconnected, older people will have a bigger impact on the nation's foreign currency market, Lim Jin-soo and Kim Young-rae sa...

The South Korean government said Wednesday that it will remove legal and administrative regulations in the local service sector as part of its efforts to promote fair market competition and boost growth. The Fair Trade Commission, the country's antitrust watchdog, said it checked 39 restrictions that restricted competition in the sectors of food, leisure and public services. Related government ...

South Korea will lower the maximum legal lending rate to 24 percent from next year and strengthen supervision of private lenders, in a move to help ease financial burdens for desperate borrowers, the nation's top financial regulator said Wednesday. Choi Jong-ku, the new chairman of the Financial Services Commission, also said he will encourage banks and other financial institutions to make loans...

South Korea's financial regulator said Wednesday it has advised some foreign banks here to take steps to guard against money laundering activities. After an inspection of 37 branches of foreign banks in the country, the Financial Supervisory Service concluded that some small-scale branches showed a lack of awareness of money laundering. The FSS said, however, most branches had anti-money-launde...

President Moon Jae-in is set to hold his first dialogue with top business leaders here this week over beer to help break the ice and possibly allow more frank discussions, an official from the presidential office, Cheong Wa Dae, said Tuesday. The talks will be held Thursday and Friday, each day involving part of the top executives from the 14 largest business conglomerates, according to Cheong W...

Moon administration releases economic policy blueprint, puts positive spin on strong exports and extra budget effect

South Korea’s composite consumer sentiment index inched up 0.1 point to 111.2 this month from June, indicating a phase of adjustment in anticipation for President Moon Jae-in’s new policies, the Bank of Korea said Tuesday. The CCSI has moved upward six straight months and been in optimistic terrain for four consecutive months, inching closer to the 111.4 recorded in January 2011. However, the in...

As part of his first duties in office, the newly appointed Minister of Trade, Industry and Energy Paik Un-gyu sent a letter to his US counterpart agreeing to hold a joint committee on the two countries’ free trade agreement, but with a different timeline, venue and agenda, the ministry said Tuesday. Making no mention of trade revision deliberations, the Seoul government suggested instead that t...

The South Korean government will unveil its plan to increase taxes for the super rich and biggest businesses next week to secure funds for expanded welfare costs over the next five years, the country's top economic policymaker said Tuesday. "The tax-hike issue has been raised in government policy meetings, with the ruling party calling for it," Finance Minister Kim Dong-yeon said at a press conf...

The employment rate of senior citizens in South Korea gained ground in May from a year earlier as a growing amount remained in the job market or sought work amid the rapidly aging population, government data showed Tuesday. The employment rate of those aged between 55 and 79 reached 54.8 percent as of May, up 1.1 percentage points from a year ago, according to the data compiled by Statistics Kor...

South Korea will cut credit card processing fees for small merchants starting later this month, in the latest move to push forward pro-consumer regulations against commission fees charged by financial service providers, the financial regulator said Tuesday. The move is in line with a campaign pledge by President Moon Jae-in that the new administration aims to ease financial burdens on consumers ...

President Moon Jae-in on Tuesday urged swift execution of the extra budget recently approved by the parliament, also stressing the need to maximize the efficiency and effectiveness of the additional spending. "Regarding the supplementary budget, the issue is now to execute it with speed. I want you to now show that the extra budget will in fact lead to new jobs, a reduction in the youth jobless ...