Concerns are rising that Korea, which is heavily dependent on exports for growth, will become the biggest victim of a looming global trade war prompted by US protectionist measures and retaliatory moves from other major economies.China and the EU are poised to react strongly if they are subject to hefty US tariffs on steel and aluminum imports, which are slated to come into force Friday.The trade conflict between the US and China is set to further flare up as President Donald Trump’s admin

The Moon Jae-in administration’s employment policy, which relies on fiscal spending and is unaccompanied by regulatory and labor reforms, will do little to ease Korea’s deteriorating situation of youth joblessness, experts say.What is further concerning is that a set of pro-labor measures taken by the administration is pushing an increasing number of local firms to move production abroad, reducing jobs at home.The Ministry of Strategy and Finance is drawing up a supplementary budget

Calls are rising for President Moon Jae-in’s administration to be more strategic and flexible in coping with mounting US trade protectionism, which is casting a broadening shadow on Korea’s exports.Moon instructed his aides last month to confidently and resolutely deal with what he called “unreasonable” US protectionist measures. The instruction came days after the US Department of Commerce released a report recommending President Donald Trump impose stiff tariffs on stee

Korea needs to move faster to join a Pacific trade deal signed by Japan and 10 other regional nations last week without the presence of the US, experts here say.Seoul officials have withdrawn their attention from the Japan-led process of reviving the Trans-Pacific Partnership since President Donald Trump pulled the US out of it to pursue his “America First” agenda shortly after taking office early last year. An interministerial task force formed to consider Korea’s entry to the

Calls are growing for more strenuous efforts to improve the country’s labor productivity to offset the negative effects of reduced work hours and increased wages on companies and the economy as a whole.Korea’s labor productivity remains near the bottom among major economies.A Korean worker produced added value worth $33.10 per hour on average in 2016, far below the average of $47.10 for 35 member states of the Organization for Economic Cooperation and Development. The corresponding f

Industrial restructuring has been going adrift under President Moon Jae-in’s administration, deepening concerns about the weakening of the country’s economic fundamentals.In December, the administration announced a new direction for corporate restructuring, which focused on ensuring a balance between financial logic and industrial consequences and considering the effects on regional economies and employment.To fit into the redefined approach, the government’s main arm for indus

Mounting trade pressure from the US has prompted speculation here that Washington is linking trade issues to security concerns to keep in check what it views as President Moon Jae-in’s enthusiastic push for inter-Korean rapprochement ahead of the North’s denuclearization.Many commentators note South Korea is receiving the harshest treatment from the Trump administration, though its trade surplus with the US dropped significantly last year while the US’ imbalances with other major economies widen

Questions are being raised about the relevance of the government’s move to draw up a supplementary budget this year to cope with the country’s deteriorating unemployment problem.Critics note President Moon Jae-in’s administration is looking for an easy way to tap into taxpayers’ money to bolster employment at the risk of neutralizing fiscal disciplines.Finance Minister Kim Dong-yeon, who doubles as deputy prime minister for economic affairs, said last week that the govern

Korea Inc. is being squeezed between growing risks from its two largest trading partners and a raft of anti-business policies pushed by President Moon Jae-in’s administration.The country’s manufacturing exporters have faced mounting protectionism in the US and intensifying competition with their Chinese rivals both in traditional and high-tech sectors.Under recommendations made last week by the US Department of Commerce to President Donald Trump, steelmakers from Korea and 11 other c

Calls are rising for timely measures to stabilize the increasing fluctuation in the value of the Korean won.Economists note a failure to properly respond to currency fluctuations could lead to sparking foreign capital flight or dampening exports that have shored up Asia’s fourth-largest economy.The won has depreciated against the US dollar in recent weeks as the global shock waves prompted by the prospect of steep US rate hikes hit local financial markets.Foreign investors net sold Korean

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

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

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

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

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

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

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

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

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

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