Despite its repeated pledges to push for drastic deregulation, President Moon Jae-in’s government has been facing criticism for dragging its feet on regulatory reform.Presiding over a debate last month, Moon emphasized the need to take a “revolutionary approach” to lifting regulations, calling for “bold ways that have never been tried until now.”Critics say, however, his administration’s efforts toward deregulation have been limited to selected new industries

Economy Feb. 14, 2018

Concerns are growing among economists and businesses here over the fallout from a reversal of corporate tax rates and interest rates in Korea and the US.Last year, Korea raised the tax rate on companies with annual taxable profits of more than 200 billion won ($184.5 million) to 25 percent from 22 percent, whereas a tax overhaul passed by the US Congress last month lowered the maximum corporate tax rate to 21 percent from 35 percent.Next month is likely to see a US benchmark interest rate exceed

Economy Feb. 12, 2018

Different views have been raised over whether a sharp increase in the minimum wage will result in a significant loss of jobs down the road.Korea’s minimum wage, which is applied across all regions and sectors, is set at 7,530 won per hour ($6.95) for 2018, up 16.4 percent from last year. It marks the first double-digit increase in more than a decade.The Minimum Wage Commission, comprising members who represent the government, employers and labor groups, last year agreed on the steep increa

Economy Feb. 7, 2018

Recent economic indicators point to the weakening vitality of the Korean economy shored up largely by an increase in exports.Business sentiments remain pessimistic as manufacturing and construction sectors are suffering setbacks. Core inflation, which excludes volatile oil and food prices, has dropped to an 18-year low, reflecting sluggish domestic demand.Manufacturing output shrank 6.6 percent from a year earlier in December, following a 1.7 percent on-year decline in the previous month, accord

Economy Feb. 5, 2018

Korea remains increasingly vulnerable to possible disruptions in overseas supplies of critical minerals used in everything from batteries to semiconductors and smartphones.Global demand for critical minerals continues to rise in keeping with the advancement of the “fourth industrial revolution,” resulting in a sharp increase in their prices.According to data from Korea Resources Corp., the prices of cobalt, tungsten, lithium and nickel jumped 124.7 percent, 63.2 percent, 31.7 percent

Economy Jan. 24, 2018

Measures taken by President Moon Jae-in’s administration to curb home prices have resulted in deepening the polarization of the local housing market.Betraying policymakers’ expectations, the prices of expensive apartments in Seoul, which were mainly targeted by tighter mortgage rules and other restrictive steps, have continued to rise, while house prices in most provincial areas are on a downward trend.Largely affected by a set of restrictive measures announced on six occasions since

Economy Jan. 22, 2018

Korea has seen tax revenues surpass government-set targets in recent years amid rising concerns over its long-term fiscal soundness.According to recent data from the Ministry of Strategy and Finance, national tax revenue amounted to 251.9 trillion won ($236.5 billion) in the first 11 months of 2017, exceeding the yearly revenue goal of 251.1 trillion won. The ministry estimated taxes collected for the whole of last year would reach 270 trillion won, up from 242.6 trillion won a year earlier.It m

Economy Jan. 18, 2018

The prospects of a simultaneous rise in the value of the won, interest rates and oil prices are casting a shadow on the government’s expectation that the Korean economy will grow more than 3 percent this year, propelled by a continuous rise in exports and a rebound in domestic demand.Trade officials here worry that such upward trends might be coupled with lingering uncertainties in the financial market and rising global protectionism to make it hard to achieve the export growth target for

Economy Jan. 15, 2018

South Korea is set to hold tough trade negotiations with the world’s two biggest economies -- the US and China -- this year while navigating rising protectionism around the globe.An early and smooth conclusion of the negotiations, which trade officials here say is far from guaranteed, would help improve external conditions for the Korean economy that relies heavily on exports for growth.According to government data, Asia’s fourth-largest economy saw its exports to China and the US in

Economy Jan. 10, 2018

Trade officials here expect Korea’s exports will grow 4 percent on-year in 2018.The target is modest compared to last year’s 15.8 percent growth but will still be challenging, as worsening conditions, including the strengthening of the won, are weighing on exporters.Heo Yoon, the dean of the Graduate School of International Studies at Sogang University, said export growth would slow dramatically if such negative factors add to the high base effect.According to Trade Ministry data, As

Economy Jan. 8, 2018

Concerns are deepening that the country’s employment conditions will continue to worsen this year, leaving young job seekers frustrated and forcing mostly low-wage employees out of work.In his New Year’s message, President Moon Jae-in vowed to place top priority on improving people’s livelihoods.Critics were quick to note his pro-labor and anti-business policies stand in the way of creating more jobs, which hold the key to enhancing the quality of life.A sharp hike in the minim

Economy Jan. 3, 2018

Government policymakers have expressed confidence that the Korean economy will easily see more than 3 percent growth this year following an estimated 3.2 percent expansion last year.They may not be overly confident, especially given the recovering world economy that will continue to bolster the country’s exports. The Organization for Economic Cooperation and Development recently revised up its global growth outlook for 2018 to 3.7 percent from its previous estimate of 3.6 percent in June.T

Economy Jan. 1, 2018

It seems almost certain that South Korea will see its gross national income per capita surpass $30,000 for the first time next year.The government’s economic policy directions for the coming year, unveiled Wednesday, forecast the country’s per capita GNI will reach $32,000 in 2018, up from an estimated $29,700 this year.This prediction is based on the assumption that Asia’s fourth-largest economy will grow about 3 percent next year, with the won-dollar exchange rate continuing to hover slightly

Viewpoints Dec. 27, 2017

Korea needs to step up efforts to advance service industries to ensure sustainable economic growth amid mounting trade protectionism across the globe, economists here say.In terms of service sector competitiveness, the country remains near the bottom among member states of the Organization for Economic Cooperation and Development.According to OECD data, labor productivity of service industries was just 45.1 percent of that of manufacturing industries in Korea in 2014, far below 87.8 percent in F

Economy Dec. 25, 2017

Impressive trade figures logged by Korea this year have veiled the weakening competitiveness of its major manufacturing industries, analysts here say.The country’s outbound shipments in the first 11 months of the year reached a record-high $524.8 billion, up 16.5 percent from a year earlier, according to data from the Ministry of Trade, Industry and Energy.Riding on the surge in exports, Asia’s fourth-largest economy saw its annual trade volume exceed $1 trillion last week. Korea&rsq

Economy Dec. 20, 2017