A signboard at a self-service gas station in Seoul on Feb. 14 shows how far gasoline prices have bounced back. Though the nationwide barometer was 1,461.05 won per liter, retail prices in Seoul approached 1,500 won. (Yonhap)
SEJONG -- Gasoline prices in South Korea have climbed for 89 consecutive days in tandem with international crude prices, adding to the burdens facing households and businesses.
According to the Korea National Oil Corp., the price of gasoline reached 1,461.05 won ($1.32) per liter on Feb. 15. It marked a third consecutive month of rebounding, having previously dipped to 1,317.12 won per liter Nov. 18.
Furthermore, the current level marked the highest price point in about 11 months -- since March 18, 2020, when it hit 1,465.40 won per liter.
It was also a 17.1 percent climb compared with nine months earlier. On May 15, 2020, the price of gasoline was just 1,247.53 won per liter.
Rising gasoline prices might signal a recovery in the local economy, which was seriously affected by the novel coronavirus over the past year, now that vaccines for COVID-19 are being introduced around the globe.
(Graphic by Kim Sun-young/The Korea Herald)
But major economic indexes are still sagging, according to data held by the Bank of Korea, Statistics Korea and the Korea Immigration Service.
BOK data showed that the nation’s gross domestic product posted negative growth on-year for three consecutive quarters in a row -- minus 2.7 percent in the second quarter of 2020, minus 1.1 percent in the third quarter and minus 1.4 percent in the fourth quarter.
Though the central bank has kept the benchmark interest rate untouched at a record low of 0.5 percent per annum since May 2020, there are few signs that the economy is bouncing back amid ongoing worries over COVID-19.
The jobless rate reached 5.7 percent as of January 2021, with 1.57 million people unemployed, according to Statistics Korea -- the highest level in about about two decades. This contrasts with 1.15 million people unemployed and a jobless rate of 4.1 percent in January 2020.
According to the Supplementary Index III for Employment, the tally of “de facto” unemployed people – those who are either unemployed or underemployed -- came to 4.97 million people as of January 2021, out of an economically active population of 29.61 million. This marked a record high since the compilation of figures began in January 2015.
This indicates that 16.8 percent of economically active people were de facto jobless. Index III regards underemployed people -- those who work fewer than 36 hours a week but want to work more, as well as seasonal workers who are out of work for part of the year -- as unemployed.
The number of foreign visitors to Korea declined by 95.8 percent from 1.68 million in October 2019 to 69,215 in October 2020, according to the Korea Immigration Service.
On a cumulative basis, the tally of inbound visitors (non-Koreans) plunged from 14.9 million during the period from January through October 2019 to 2.52 million for January through October 2020, dealing a blow to the tourism industry and businesses oriented to foreign tourism.
Alongside gasoline, diesel rose in price by more than 200 won per liter to 1,261.14 won per liter on Feb. 15, compared with 1,058.76 won per liter on May 15, 2020.
International crude prices are fast recovering. Western Texas Intermediate, which ranged between $36 and $42 per barrel in October 2020, traded at $60.26 per barrel as of Feb. 15.
Both Dubai crude, which makes up the dominant portion of Korea’s petroleum imports, and Brent crude also hovered around $60 per barrel.
By Kim Yon-se (
kys@heraldcorp.com)
