Fuel tax cut to be extended by 2 months with adjustments

The finance ministry said Wednesday it will extend the tax cut on fuel by another two months with some adjustments amid the ongoing Middle East crisis. Under the decision, South Korea will apply a 15 percent discount on gasoline consumption and a 23 percent cut on diesel and liquefied petroleum gas, according to the Ministry of Economy and Finance. South Korea has been applying a 20 percent discount on gasoline consumption and a 30 percent discount on diesel and liquefied petroleum gas, which we

Oct. 23, 2024

KEF chief meets with EU ambassadors to beef up economic ties

Member companies of the Korea Enterprises Federation met with ambassadors of the European Union on Tuesday to elevate economic cooperation and discuss strategies for embracing the shift in the labor market induced by industrial restructuring. Top officials from 23 EU member nations’ embassies in Korea, including Maria Castillo Fernandez, the ambassador of the EU, attended the business roundtable event hosted by the KEF held at a hotel in Seoul on Tuesday. Sohn Kyung-shik, chairman of the

Oct. 22, 2024

WGBI inclusion boon for FX market reform: ministry

The recent inclusion on the World Government Bond Index, a global benchmark for bond investments, proves South Korea is headed in the right direction in its efforts to improve its foreign exchange market, an official from the Finance Ministry said Monday. On Oct. 9, the Financial Times Stock Exchange Russell announced that Korea has been added to the WGBI. The inclusion came more than two years after Korea was put on the watchlist in September 2022. In the announcement, FTSE Russell stated that

Oct. 21, 2024

Tariffs top US election agenda for Korean firms

Whether Democratic presidential nominee Kamala Harris or Republican candidate Donald Trump takes the White House, US tariff policy for the next four years is the top concern for Korean firms, according to Korea Chamber of Commerce and Industry poll results on Monday. In a survey conducted on 300 Korean manufacturing companies from Oct. 2-11, over a quarter of Korean companies, or 25.6 percent, said Trump's plan of “expanding universal and reciprocal tariffs” grabbed their at

Oct. 21, 2024

Exports fall 2.9% during first 20 days of October

South Korea's exports lost 2.9 percent on-year in the first 20 days of October due to falling demand for vehicles and petroleum products and fewer working days, data showed Monday. Outbound shipments reached $32.77 billion in the Oct. 1-20 period, compared with $33.74 billion tallied a year earlier, according to the data from the Korea Customs Service. Per-day exports, however, rose 1 percent on-year to $2.62 billion. The number of working days during the cited period of this year came to 1

Oct. 21, 2024

Domestic demand shows signs of recovery despite gaps among sectors: finance ministry

The South Korean economy has been on a path for recovery led by exports and domestic demand showed signs of improvement, the finance ministry said Friday. The ministry made the assessment in its monthly economic report, the Green Book, while noting that the pace of recovery differs among sectors. "The economy continues to show a recovery trend centering on exports and the manufacturing sector amid the stabilization of consumer prices. Domestic demand is also showing signs of a gradual recov

Oct. 18, 2024

Central bank chiefs from S. Korea, China, Japan meet over economic, financial issues

Central bank chiefs from South Korea, China and Japan held a meeting in Beijing on Thursday to discuss a variety issues, including economic and financial trends. Bank of Korea (BOK) Gov. Rhee Chang-yong met with his Chinese counterpart, Pan Gongsheng, and Japanese counterpart, Kazuo Ueda, at the gathering, the 13th of its kind, chaired by Beijing's top central banker, according to the BOK. The BOK said the central bank chiefs exchanged their views on recent economic and financial issues.

Oct. 17, 2024

Finance minister vows all-out efforts to win Czech nuclear deal

Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok vowed to secure the final deal for Czech nuclear plants amid ongoing criticism that it would result in a pork-barrel project. “We will put an utmost effort to ensure that the construction of the Czech nuclear power plant reaches the final contract without any setbacks,” Choi said during a ministerial meeting on external economics. Korea's consortium, led by the state-run Korea Hydro & Nuclear Power, is s

Oct. 17, 2024

Multinationals in Korea pay OECD’s lowest share of corporate tax

The proportion of South Korea's total corporate tax revenue that comes from foreign multinational companies, including Google and Netflix, stands at just 7 percent, one of the lowest ratios in the Organization for Economic Cooperation and Development. According to an analysis of OECD corporate tax data by Rep. Ahn Do-geol, submitted at the parliamentary audit of the National Tax Service on Wednesday, the share of corporate tax revenue from foreign multinationals in Korea is less than one-th

Oct. 17, 2024

K bank eyes W5tr IPO to spur growth

K bank, South Korea's first internet-only bank, has announced plans for business expansion, seeking to raise over 1 trillion won ($733.6 million) from its upcoming initial public offering. "K bank will drive inclusive and innovative finance by using the IPO funds to advance our three core growth strategies — retail, small- and medium-sized enterprises and platforms — along with risk management and technology," said CEO Choi Woo-hyung during a press conference in Seoul

Oct. 15, 2024

Spike in KAIST dropouts as med school draws talent away

Over the past three years, 182 students from the Korea Advanced Institute of Science and Technology have withdrawn from the university to pursue medical or dental school, with some even abandoning their graduate-level studies to make the switch. According to data provided by Democratic Party Rep. Hwang Jeong-ah, a member of the National Assembly's Science, ICT, Broadcasting, and Communications Committee, these 182 students left KAIST between 2021 and Oct. 4 this year, specifically citing th

Oct. 15, 2024

Land ministry delegation to visit Philippines, Thailand for infrastructure cooperation

The Ministry of Land, Infrastructure and Transport said Tuesday it plans to send a delegation to the Philippines and Thailand to explore infrastructure and development-related cooperation with the countries. During the four-day trip beginning Tuesday, the delegation headed by First Vice Land Minister Jin Hyun-hwan plans to meet with Manila's land and transport ministries, as well as the Asian Development Bank officials, to discuss cooperation in related areas. In Thailand, the delegation pl

Oct. 15, 2024

S. Korea-China route container shipping costs on constant rise: data

Container shipping costs from South Korea to China rose for the eighth consecutive month in September, the customs agency said Tuesday. The average shipping cost for a 40-foot container from South Korea to China climbed 17.6 percent on-month to 862,000 won ($634.48) last month, according to the data from the Korea Customs Service. The figure has been on a constant increase since February. But the average shipping costs from South Korea to the European Union shed 14.7 percent, the first fall in f

Oct. 15, 2024

'8 out of 10 foreign students willing to work in Korea'

Eight out of 10 international college students studying in Korea are willing to work in the country, yet the proportion of professional foreign laborers securing jobs remains quite low, according to a recent report by the Korea International Trade Association. The report, released Monday, noted that the number of foreign students in Korea has steadily increased over the past decade, reaching 197,000 in 2022. However, only 6 percent of these students secured employment through the E-7-1 professio

Oct. 14, 2024

ICT exports rise for 11th straight month in Sept. on record chip sales

South Korea's exports of information and communication technology (ICT) products rose for the 11th consecutive month in September, driven by record sales of semiconductors, data showed Monday. Outbound shipments of ICT products came to $22.4 billion last month, up 24 percent from $18.04 billion a year earlier, according to data compiled by the Ministry of Science and ICT. The monthly tally marked the second highest since March 2022. Imports of ICT products increased 15.9 percent on-year to

Oct. 14, 2024

BOK cuts key rate by quarter point to 3.25%

South Korea's central bank lowered the policy rate by 0.25 percentage point on Friday, signaling the end of an era of monetary tightening that had extended over three years. The Bank of Korea’s monetary policy board slashed the base rate by 25 basis points, bringing it down to 3.25 percent. Five of the other six monetary policy board members, not including BOK Gov. Rhee Chang-yong, agreed to the rate cut, while the remaining member suggested maintaining the rate at the 3.5 percent lev

Oct. 11, 2024

Korea added to key bond index

South Korea finally succeeded in joining the World Government Bond Index, a global benchmark measuring the performance of sovereign fixed income. The inclusion is expected to draw in passive foreign funds worth over $56 billion. The WGBI, managed by Financial Times Stock Exchange Russell, is one of the three key government bond indices, along with the Bloomberg-Barclays Global Aggregate Index and JP Morgan Government Bond Index-Emerging Markets. It is tracked by global funds worth over $2.5 tril

Oct. 9, 2024

Banks, brokerages, insurers spent W2.4tr in entertainment expenses over last five years

South Korea’s financial sector, including banks, brokerage houses and insurers, spent a staggering 2.4 trillion won ($1.78 billion) on entertaining clients over the past five years, data showed Tuesday. From 2019 through the first half of this year, banks, brokerages and insurance companies spent 957.8 billion won, 1.13 trillion won and 308.5 billion won, respectively, on entertainment expenses, according to Financial Supervisory Service data submitted to Rep. Kim Hyun-jung of the main opp

Oct. 8, 2024

S. Korea logs current account surplus for 4th month in August

South Korea racked up a current account surplus for the fourth consecutive month in August, driven by robust exports, central bank data showed Tuesday. The country's current account surplus reached $6.6 billion in August, marking a surplus for the fourth consecutive month, according to data compiled by the Bank of Korea. The August surplus was smaller than the previous month's $8.97 billion. The country's goods account racked up a $6.59 billion surplus in August following an $8.33

Oct. 8, 2024

Regulator to begin probe into TikTok over potential violation of personal data law

South Korea's media regulator is set to look into TikTok over a potential violation of the nation's personal data protection law, an official at the regulator said Monday. TikTok is accused of automatically requiring its users to receive advertisements, instead of letting users give their consent to receive such content under the Korean law, according to industry sources. The Korea Communications Commission suspects that TikTok may be violating the Act on Promotion of Information and C

Oct. 7, 2024