Responding to continuing public complaints that the latest and forthcoming real estate policies impose excessive burdens upon nonspeculative end users, the South Korean government is set to lowering the tax rate for budget residences, the nation’s fiscal chief said Wednesday. He also rolled out a “phased” housing system that would allow prospective homebuyers with limited credit to eventually own a residential home by accumulating stake in the given property throughout the

The South Korean economy in the July-September period marked the first quarterly expansion since the COVID-19 outbreak, reflecting the recent rebound in exports, central bank data showed Tuesday. While the government displayed some optimism over the latest turnaround, monetary authorities continued their wait-and-see approach, citing uncertainties such as the imminent US presidential election and the apparent coronavirus flare-up in Europe. The country’s real gross domestic product for

Despite ongoing controversies and criticism even from within the ruling party, the South Korean government is set to introduce the so-called “fiscal soundness rules” to impose risk management limits to the nation’s fiscal spending, officials said Monday. Recognizing the political and legislative hurdles, the government also hinted at using executive powers to push ahead with the plan, if the related bill fails to obtain parliamentary approval in time. “(The government)

South Korea will hold a recruiting fair via teleconference next month for those who aspire to join global financial organizations, the Ministry of Economy and Finance said Friday. The 11 participating organizations are the International Monetary Fund, World Bank, Asia Development Bank, Asia Infrastructure Investment Bank, African Development Bank, Central American Bank for Economic Integration, European Bank for Reconstruction and Development, Global Climate Fund, Global Green Growth Instit

While the outbreak of COVID-19 initially impacted jobs in the service sector, the fallout has now spilled over to South Korea’s manufacturing and knowledge industries amid the prolonged epidemic crisis, data showed Wednesday. Also, young workers under 40 took a heavier blow than those in their 40s and 50, while those aged 60 and older saw a rise in their employment numbers. The number of people employed in retail, wholesale, lodging and restaurant businesses totaled 5.52 million in S

South Korea’s major financial state-owned corporations turned out to have imposed excessive interest amounts that far exceed the principal upon small-sized debtor businesses, raising skepticism about their “inclusive finance” policy functions, data showed Tuesday. According to data submitted to Rep. Min Hyung-bae, lawmaker of the ruling Democratic Party of Korea and a member of the parliamentary finance committee, the four state-owned companies affiliated with the Financial

Despite the government’s repeated reassurance that South Korea’s sovereign debts are under control, concerns continue to mount not only in the private sector but also among state-run think tanks, data showed Monday. The Korea Institute of Public Finance, a government-funded institution affiliated with the Prime Minister’s Office, recently pointed out that Asia’s fourth-largest economy will see its level of debt without payment resource approach 900 trillion won ($787

  South Korea saw its trade dependency level slip for the first time in three years in 2019, as its export volume dropped amid global factors, data showed Sunday. The country’s trade dependency index -- the total trade volume proportion out of the gross domestic product -- came to 63.51 percent, according to the Korean Statistical Information Service run by Statistics Korea. This was down 2.57 percent from a year earlier and the lowest since the 60.11 percent observed in 2016. The

South Korea will alleviate the requirements to qualify for housing subscriptions, in a move to lower the market entry barrier for young non-homeowners, Deputy Prime Minister and Finance Minister Hong Nam-ki said Wednesday. The government expects that the revised set of rules will allow up to 92 percent of newlyweds and first-time homebuyers to apply for newly built houses. “(The government) will seek to further alleviate the income rule in the special housing supply for first-time bu

The Industrial Bank of Korea said Tuesday that it will help local small and medium-sized enterprises promote their products via online channels amid the prolonged market fallout of COVID-19. The state-run lender, in partnership with the Seoul Business Agency, will hold an online promotion campaign for a selected list of quality SME products. After receiving applications in May, the bank singled out 10 beneficiaries and created video advertisements that will be posted on IBK and SBA’s cha

Among foreign-based companies operating in South Korea, almost half defaulted on their corporate tax payments last year, with two of them logging more than 5 trillion won ($4.36 billion) in annual sales, a ruling party lawmaker said Monday. According to data submitted by the National Tax Service to Rep. Kim Soo-heung of the ruling Democratic Party of Korea, 46.6 percent or 4,956 out of the 10,630 registered foreign companies here did not pay corporate taxes at all in 2019. The figure was up

Kakao Bank, South Korea’s leading internet-only bank and an affiliate of mobile platform operator Kakao, has supplied more than 2 trillion won ($1.7 billion) in accumulated mid-range interest rate loans, officials said Sunday. The company has also already achieved its annual target of 1 trillion won and has vowed to sustain its mid-rate lending throughout the rest of the year in a gesture to provide liquidity to people with weak credit ratings. Kakao Bank’s mid-range lending so far

Tension is escalating at financial institutions as the National Assembly begins two weeks of auditing on financial bodies, focusing on a private equity fund scam and the government’s “Korean New Deal” program. This year, the inspected organizations are especially weighed down by advance paperwork, as only a limited number of people are allowed in the audit hall, as par of anti-coronavirus social distancing rules. The National Policy Committee of the National Assembly will

South Korea’s foreign reserves continued to rise in September for the sixth straight months, mostly on the back of the country’s sale of foreign exchange stabilization bonds and partly due to investment returns, central bank data showed Wednesday. The foreign reserves totaled at a record high of $420.6 billion as of the end of September, up $1.59 billion from a month earlier, according to data compiled by the Bank of Korea. The given figure comprises securities and deposits denomin

South Korea’s consumer prices increased 1 percent on-year in September, marking the sharpest rise in six months, data showed Tuesday. This was driven largely by the impact of the record-long rainy season, which caused prices of agricultural, livestock and fisheries goods to rise at the steepest rate in almost a decade. The Consumer Price Index for September stood at 106.20, up 1 percent from a year earlier and returning to the 1 percent level for the first time since March, according

While South Korea is set to expand its definition of a “large shareholder” starting next year, calls are escalating for the forthcoming rule to be alleviated for the sake of market stability and fair taxation. Some predicted that the stronger regulation might trigger a selling spree at year-end as retail investors seek to avoid a heavier tax burden, and others pointed to the possibility of double taxation. Under the Income Tax Act, revised in 2017 and due to take effect in 2021, t

While Korea’s major lenders are gesturing to tighten their loan extensions in apparent response to financial authorities’ regulatory efforts, nonmonetary institutions are striving to expand their loan supplies, seeking to absorb market demand. Several savings banks, insurers and e-payment service operators ran special promotional events throughout the last two weeks of September, ahead of the Chuseok holiday, offering cash back or other benefits to potential credit loan borrowers.

South Korea will impose punitive statutory damages of up to three times upon breaches of trademark righs and design rights, starting in April 2021, in continued efforts to enhance knowledge-based intangible assets, the country’s intellectual property office said Friday. The revision bills of the Trademark Act, Design Protection Act and the Unfair Competition Prevention and Trade Secret Protection Act have been approved by the National Assembly, the Korean Intellectual Property Office s

South Korea’s vice finance minister on Thursday warned that the local foreign exchange market may face higher volatility amid external factors such as the COVID-19 resurgence in Europe and the reignited US-China conflict. “There are currently various factors which may increase volatility in the global financial market, including the resurgence of COVID-19 in Europe and the escalating tension between the US and China ahead of the US presidential election,” said Kim Yong-beom

Shin & Kim LLC, South Korea’s fifth-largest law firm by number of lawyers, said Thursday that it has enhanced its international tax practice by hiring four leading experts. Sunny Kim, a senior foreign attorney and expert in international tax and cross-border mergers and acquisitions, was named head of the international tax practice, the company said in a release. Kim frequently serves as a consulting expert for the Korean government on issues such as consolidated tax regime, partn