The government on Monday announced a plan to support the domestic production of 100 key manufacturing materials, seeking to boost the competitiveness of the local industries in the wake of Japan’s recent economic retaliation.It also vowed to inject 7.8 trillion won ($6.4 billion) into research and development as part of its mid and long-term road map to reduce the industrial dependence on Japan and create a stable supply chain by 2024. “(The government) will select and invest in 100

In light of the trade conflict with Japan and other external risks, concerns are mounting that South Korea’s economic growth this year may fall below 2 percent at worst, lower than the range of 2.2-2.5 percent forecast by the government and the central bank.The state-run think tank Korea Institute for International Economic Policy said in its recent report that Japan’s export restrictions would reduce Korea’s gross domestic product by 0.27-0.44 percentage point. The report

South Korea’s central bank said Thursday that it could consider further cuts in its base rate amid growing economic uncertainties, such as the trade tension with Japan.“If the economic conditions worsen, (a rate cut) will of course have to be considered,” Bank of Korea Gov. Lee Ju-yeol told reporters. When asked about the US Federal Reserve’s decision to cut the key interest rate Wednesday, Lee welcomed the much-anticipated move, but also expressed some disappointment.&ld

South Korea’s major financial groups posted record-breaking earnings during the first half of the year, notwithstanding external challenges that have weighed down the overall market, industry data showed Sunday. Shinhan Financial Group and KB Financial Group, the nation’s top two banking groups in terms of assets, logged 1.91 trillion won ($1.6 billion) and 1.84 trillion won in net profit, respectively, according to their recent earnings announcements.Runners-up Hana Financial Group

After picking up last year amid a slowing economy, Seoul’s office building market is likely to catch its breath in the upcoming months and peak next year as large-sized premium buildings spill into the market for sale and lease, according to commercial real estate company Cushman & Wakefield.“Since 2010, the office building market (in Seoul’s key business districts) has mostly seen supply outrun demand,” Philip Jin, head of research at the Korean office of the US-base

Bank of Korea Gov. Lee Ju-yeol said Tuesday that the central bank could consider an additional cut of the country’s growth outlook for this year, should the ongoing trade tensions with neighboring Japan expand.“If (Japan’s export curbs) worsen and such consequences have not sufficiently been reflected in the (recently revised) economic outlook, they will certainly deliver a negative impact on our economy,” Lee said in a briefing session of the parliamentary strategy and f

In response to the escalating economic conflict between South Korea and Japan, financial authorities here are establishing a contingency plan in case Tokyo expands its trade restrictions to the financial sector, officials said Monday.The preemptive gesture came out of concern about the apparent dependency of local financial companies on Japanese lenders, which have been offering a low interest rate for years. The total amount of Japanese money circulating in Korea’s financial market was es

The Bank of Korea has slashed its forecast for this year’s economic growth to 2.2 percent, reflecting the negative impact of external uncertainties including Japan’s ongoing export curbs.It also carried out an earlier-than-expected base interest rate cut to 1.5 percent, embracing the monetary easing signals in the United States and other developed economies.“Considering the changes in economic conditions since the last outlook (announcement) in April, we have set the economic g

South Korea’s central bank on Thursday cut the nation’s policy rate to 1.5 percent, amid mounting external uncertainties, officials have announced.It also decided to sharply slash the country's growth pace this year by 0.3 percentage point to 2.2 percent from 2.5 percent.The Bank of Korea held its rate-setting Monetary Policy Board and decided to cut the base interest rate by 25 basis points to 1.5 percent.The rate cut decision came a step earlier than the US Fed’s largely anti

With its rate-setting board meeting slated for this week, South Korea’s central bank is gearing up to lower its economic growth forecast and base interest rate, in step with the sluggish recovery pace of the global economy and the US Federal Reserves’ signal of a rate cut.While most predicted a rate cut of 25 basis points from the current 1.75 percent by no later than August, views differed on the pace and frequency of further rate cuts this year. The Bank of Korea is scheduled to ho

Weighed down by a bearish market and a series of business license revocations on key products, South Korea’s pharmaceutical sector saw its market capitalization shed over 4 trillion won ($3.4 billion) during the first half of this year, data showed Sunday.According to market operator Korea Exchange (KRX), the market capitalization of Kosdaq-listed biotech companies stood at 28.9 trillion won as of end-June, down 12.3 percent, or 4.1 trillion won, from the end of last year.The number of lis

Japan’s trade surplus in value-added goods and services (TiVA) with South Korea took a downturn during the 2005-2015 period, reflecting the diversifying structure of logistics and trade, statistics showed Sunday.In light of the interconnection of the global value chain, the country’s recent curbs on hi-tech exports to Korea are likely to affect not only the two countries but also the regional and global economy in general, Seoul’s government officials noted. According to t

South Korea’s economy continues to face pressure in exports and investments, mainly due to the prolonged trade war between the United States and China, the Finance Ministry said Friday.Japan’s export control measures, while remaining a core risk factor, will not affect Seoul’s growth outlook, it added.“Despite the gradual improvement in domestic consumption, exports and investments continue to remain dull,” the Ministry of Economy and Finance said in its monthly eco

The Bank of Korea is likely to experience further delays in the reconstruction of its headquarters as a disputed builder asserted its rights as the successful bidder, challenging the procurement office’s plan to carry out a re-tendering process.The Seoul Central District Court on Thursday granted a provisional injunction filed by Kyeryong Construction Industrial, demanding that the Public Procurement Service halt its re-tendering process for the reconstruction of the BOK’s annex, BOK

South Korea logged the steepest pace of job creation in almost two years, but the number of unemployed people reached a 20-year high, indicating the vulnerability of the local job market, government data showed Wednesday.The number of unemployed people here was tallied at 1.14 million as of end-June, up 103,000 from a year earlier, according to monthly employment figures released by Statistics Korea. This was a record high since the 1.5 million observed in June 1999 in the wake of the Asian fina

South Korea’s financial regulator is to resume the process to select a new online-only bank here, hoping to announce the result by the year’s end, according to officials Monday.The Financial Services Commission plans to announce later this month its plan to receive applications for business approval for an internet-only bank, officials said. The feasible timeline is to receive applications starting October and grant a preliminary license to one or more successful applicants by the en

South Korea’s main bourse operator Korea Exchange (KRX) has designated Kolon TissueGene, original developer of the recently invalidated joint inflammation treatment Invossa, as a potential delisting target, officials said Friday.“A screening committee will be held within 15 working days (by July 26) to decide whether to delist (the company) or to grant a grace period for improvement,” KRX said in a public statement.Kolon TissueGene, the US affiliate of Kolon Life Science, went

South Korea’s top fiscal policymaker said Friday he is likely to meet the top executives of Samsung Group and other ranking conglomerates to address Japan’s export restrictions.“There seems to be no reason why I shouldn’t meet (with them),” said Deputy Prime Minister and Finance Minister Hong Nam-ki.“I shall confirm (the details) after discussing (the possibility of the meeting) with Cheong Wa Dae.” The remarks came in answer to the reporters’

South Korea’s government on Wednesday revised the growth rate forecast for this year to 2.4-2.5 percent, down 0.2 percentage point from its earlier estimation, amid sluggish exports and investments.It also added pressure upon the National Assembly to swiftly approve a long-pending supplementary bill of 6.7 trillion won ($5.7 billion) dedicated to economic revitalization. “The government has devoted all efforts to achieve an economic paradigm shift but uncertainties such as the global

South Korea’s government on Wednesday revised the growth rate forecast for this year to 2.4-2.5 percent, down 0.2 percentage point from its earlier estimation, amid sluggish exports and investments.It also added pressure upon the National Assembly to swiftly approve a long-pending supplementary bill of 6.7 trillion won ($5.7 billion) dedicated to economic revitalization. “The government has devoted all efforts to achieve an economic paradigm shift but uncertainties such as the g