The Korean government will extend the current tax cut imposed on fuel until the end of August, the Finance Ministry announced Tuesday. Fuel tax reductions -- namely a 25 percent cut for gasoline, and 37 percent cuts for diesel and the liquefied petroleum gas butane -- which were to end in April, will last for another four months, considering the rising prices of oil, the ministry said. The cut pulls down gasoline prices by cutting tax worth 205 won ($0.16) from 820 won to 615 won per liter, di

Economy April 18, 2023

China's reopening has shown limited effects on the South Korean economy, dampening expectations that it would reignite tourism and export industries, a report by the Bank of Korea showed Monday. The trade balance with China, which had been worsening since April last year due to China's lockdowns, failed to make a rebound despite the easing of COVID-19 measures in December, the report said. The trade deficit with China stood at $7.85 billion in the first three months of 2023, following

Economy April 17, 2023

Bank of Korea Gov. Rhee Chang-yong underlined that is “too early” to discuss a rate cut, issuing a warning on growing expectations that the central bank may start to cut its base rate soon. With the BOK deciding to hold the rate at 3.5 percent for a second consecutive time on Tuesday, market expectations have grown that the rate hike cycle has ended and a pivot on the BOK’s rate stance could come within the year. Rhee, however, drew a line, saying it is premature to discuss a

Economy April 14, 2023

Top South Korean chaebol leaders are set to join President Yoon Suk Yeol on his state visit to the US later this month, according to industry sources on Friday. Yoon is set to embark on a state visit to the US for a summit with US President Joe Biden on April 26. Upon Yoon’s visit to the US, the Federation of Korean Industries, one of the nation’s major business lobby groups, plans to arrange a business delegation consisting of some 70 business leaders, including chiefs of the nati

Industry April 14, 2023

Economy April 13, 2023

Many Korean businesses are unsure about the actual profits that will come from the reopening of the Chinese economy and are maintaining a conservative stance in business expansion, a recent survey by Korea’s top business lobbying organization showed Thursday. In a survey of 440 export-focused manufacturers conducted by the Korea Chamber of Commerce and Industry, 54.4 percent of the respondents said the reopening will not have much effect on their businesses, while 38.2 percent said it wi

Industry April 13, 2023

Expectations on a base rate cut is growing as the Bank of Korea kept the benchmark rate steady for a second consecutive time Tuesday. The central bank’s decision to hold the rate at 3.5 percent in light of the eased inflationary pressure strengthened market expectations that the BOK’s rate hike cycle has ended and a pivot on its rate stance could come soon. Some even expect a rate cut to come within the year. “The Bank of Korea's terminal rate will stand at 3.5 percent. It

Economy April 12, 2023

The Bank of Korea kept the base rate unchanged for a second consecutive time, as inflation appears to be somewhat on the wane while the economy remains slow. The central bank decided to hold the rate at 3.5 percent at its rate-setting meeting on Tuesday, matching market expectations that the BOK's rate hike cycle of 1 1/2 years has come to a halt. “Inflation is projected to continue slowing down although it will remain above the target level for a considerable time. Uncertainties su

Economy April 11, 2023

The South Korean government may dial back the scale of tax cuts aimed at curbing inflation, as tax revenue for this year is likely to fall below the estimate. According to the Ministry of Economy and Finance, Korea’s tax revenue amounted to 54.2 trillion won ($41 billion) in the first two months of this year, marking a 15.7 trillion won drop from the 69.9 trillion won recorded in the same period last year. If the tax revenue from March to December is similar to the year before, the total

Economy April 10, 2023

The wealthiest in Korea tended to increase their shares of safe haven assets, such as cash holdings and deposits, rather than taking a risk with real estate in 2022, according to a report published Sunday by a think tank under Hana Bank. According to the 2023 Korean Wealth Report compiled by the Hana Institute of Finance, the wealthiest members of society owned an average of 18.7 billion won ($14.2 million) in cash holdings and deposits, accounting for an average of 58 percent of total assets, m

Market April 9, 2023

Local market watchers expect the Bank of Korea to keep the base rate unchanged once again at its rate-setting meeting on Tuesday, in light of the recent slowdown in inflation. However, the recent decision to cut oil production by global oil cartel OPEC+ could complicate the situation, exacerbating inflationary pressures. Recent figures show that inflation has passed its worst peak in Korea, easing the pressure on the central bank, which has repeatedly stressed it prioritizes price stabilization.

Economy April 6, 2023

South Korea's national debt is growing at an alarming pace, posting a record high of over 1,067 trillion won ($811 billion) last year, the Finance Ministry said Tuesday. The country’s debts – the amount owed by central and provincial governments, excluding state and public bonds owned by national institutions such as the National Pension Service -- came to a record 1,067.7 trillion won last year, according to a report on the 2022 national settlement of accounts approved at a C

Economy April 4, 2023

Asia’s largest private equity firm MBK Partners founder and Chairman Michael Byung-ju Kim highlighted China’s recovering domestic consumption and Korea and Japan’s changing demographics triggered by fast aging as key investment points in the region this year, in a letter to investors on Sunday. With its portfolio spanning across Asia, the Seoul-based company manages over $26 billion in the capital. Kim shed fresh light on the quality of growth of the Northeast Asian economies.

Market April 3, 2023

This is the fifth installment of a series of interviews on chiefs who run overseas units of Korean asset management, banking and securities companies, examining their key strategies for global expansion. -- Ed. Taking a step beyond simply adapting to the local market, Seoul-based securities firm Mirae Asset Securities’ Vietnamese arm looks to fully establish itself in the Southeast Asian country. Since 2007, South Korea's largest securities firm Mirae Asset Securities has been wor

Economy April 3, 2023

Despite the government’s efforts, Korea failed to join World Government Bond Index, a global benchmark that measures the performance of sovereign bonds. Financial Times Stock Exchange Russell, the index operator of WGBI, announced its Fixed Income Country Classification on Thursday. Korea will remain on the watch list, being placed on hold for its index inclusion until the next decision. Korea, which had been on the watch list, a prerequisite for its potential inclusion, since September,

Economy March 31, 2023