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Lee Kyung-min

Korea Times AI content 2 team Reporter

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Economy

Gov't slammed for flip-flopping on alcohol taxes

gettyimagesbankBy Lee Kyung-min The government is facing criticism for flip-flopping on its stance on the liquor tax causing strong protests from local breweries.The Ministry of Economy and Finance said recently that it is considering scrapping plans to set up a quantity-based tax code instead of a manufacturing price-based one. The announcement effectively voids a two-year debate over fair competition between producers of imported beers and local breweries, long stressed by the latter being subject to up to 72 percent tax under what they call an “unfair, outdated” tax code.The Korea Alcohol and Liquor Industry Association estimates a tax gap of as much as 20 percent exists between the two groups. Calls for the revision, first floated in 2017, were put on hold by former Finance Minister Kim Dong-yeon in July 2018, when he cited the need to form a broader consensus among all liquor manufacturers on the fairness of the tax. Only four months later, however, the ministry said in November that it would resume its push for the revision, saying a concrete plan was scheduled to b

May 20, 2019By Lee Kyung-min
Gov't slammed for flip-flopping on alcohol taxes
Banking & Finance

Woori Bank launches aval-based service

A model holds a sign promoting Woori AVAL service launched by Woori Bank, Sunday, Courtesy of Woori BankBy Lee Kyung-min Woori Bank has launched an “aval-based” service to help local firms complete safe business transactions with their foreign counterparts, it said Sunday. Woori is the first Korean bank to initiate the advanced, good faith-based financial service. Aval refers to a guarantee that a third party adds to a debt obligation.Under the Woori AVAL service, the bank will ensure payment to foreign exporters for goods imported by local firms in case the latter defaults, even when both parties have not signed a letter of credit (LC). Only large conglomerates and their affiliates maintain LC-based transactions, a complicated and time-consuming process for small- to medium-sized enterprise (SMEs) that don't have the same resources and manpower. “Establishing an LC-based business relationship remains the norm with large companies, but it takes several months to complete,” a Woori official said.“Furthermore, having necessary papers ready from related cer

May 19, 2019By Lee Kyung-min
Woori Bank launches aval-based service
Banking & Finance

Helping disabled

Hana Nanum Foundation Chairman Ham Young-joo, right, and Seo Sang-mok, head of the Korea National Council on Social Welfare (KNCSW) hold a sign promoting a corporate responsibility program at the KNCSW in Mapo, Seoul, May 17. The two entities agreed to give financial support to strengthen the infrastructure at living facilities for the disabled to help improve their mobility. Courtesy of Hana Nanum Foundation

May 19, 2019By Lee Kyung-min
Helping disabled
Economy

Low productivity eats into Korea's growth potential

gettyimagesbank By Lee Kyung-min Korea's potential growth will face continued downward pressure due to deteriorating productivity as a result of falling corporate investment following the global financial crisis in 2008, a private think tank said Sunday.The government should lead with aggressive investment to foster promising businesses for the Fourth Industrial Revolution to boost stagnant growth potential, it added. According to a report published by the Korea Economic Research Institute (KERI) supervised by the Federation of Korean Industries (FKI), the country's potential growth rate stands at 2.7 percent, but will fall to an average of 2.5 percent for the next four-year period. (2019-2022). The figure will further drop to 2.3 percent between 2023 and 2030, and is feared to plummet to 1 percent in 2030, it added. KERI research fellow Lee Seung-suk, who authored the report, said the number could fall far faster unless major improvements are made in business in

May 19, 2019By Lee Kyung-min
Low productivity eats into Korea's growth potential
Economy

Card fee cuts begin to eat into profit

gettyimagesbankBy Lee Kyung-min Most card issuers have seen a significant drop in their net profits in the first quarter of 2019, a clear sign a card transaction fee cut is beginning to hit their bottom lines.Korea's seven card issuers posted a combined 453.4 billion won ($380 million) in net profit in the January-March period, down 3 billion won, or 0.7 percent from a year earlier. The hardest hit are mid- to bottom-tier companies whose limited business portfolio relies heavily on transaction fees unlike their top-tier counterparts which are expanding into “card loans” and other financing programs. Lotte, Woori and KEB Hana saw their year-on-year net profit decline by 38.7 percent, 38.9 percent and 28.6 percent, respectively. Lotte's net profit in the first quarter dropped to 26.5 billion won from 43.2 billion won the year before. Woori's figure dropped to 24 billion won from 39.3 billion won, while KEB Hana's fell to 18.2 billion won from 25.5 billion won. Shinhan, the leading player in the market, saw its net profit drop by 12.1 percent to 122.2 billion won from 139.1

May 16, 2019By Lee Kyung-min
Card fee cuts begin to eat into profit
Banking & Finance

For post-retirement

Shinhan Bank Deputy President Lee Hee-soo, right, and the bank's Manila branch manager Chung Yong-ho, second from right, pose with Philippines Retirement Authority (PRA) CEO Bienvenido K. Chy, second from left, after signing a memorandum of understanding at the PRA in Manila, the Philippines, May 16 (local time). Under the agreement, Koreans aged over 35 who obtain retirement visas for the Philippines will have to deposit at least $20,000 in a Shinhan bank account. Courtesy of Shinhan Bank

May 16, 2019By Lee Kyung-min
For post-retirement
Economy

'Comprehensive economic partnership needed to boost North Korean economy'

gettyimagesbankBy Lee Kyung-min Signing an inter-Korean trade agreement could be the first step towards helping North Korea's economy grow, according to a state-run think tank's study released Tuesday. Given two precedents whereby North Korea comprehensively revised its laws following a spike in trade, an export-oriented policy with the aim to increase foreign direct investment (FDI) will be the most helpful way to grow the moribund economy of the isolationist regime, it said. “North Korea revised the law in 1999 amid fast thawing inter-Korean relations and later in 2011 when its trade with China increased,” Choi Jang-ho, head of international cooperation for the Korean unification team at the Korea Institute for International Economic Policy (KIEP), told The Korea Times. Choi was the lead author of the study. Of 27 trade-related laws, the North revised 13 in 1999 to help facilitate foreign investment in the regime. North Korea has about 120 laws, he said. “The revision was defined by efforts to help attract more foreign investment. Examples include establishing med

May 15, 2019By Lee Kyung-min
'Comprehensive economic partnership needed to boost North Korean economy'
Economy

Jobless rate hits 19-year high

Manufacturing job losses on decline for 13 months By Lee Kyung-min Over 1.24 million people remained jobless in April, the highest in 19 years, a clear indication of the tightening job market amid an economic slowdown here, government data showed Wednesday. Statistics Korea said the number of jobless stood at 1,245,000, up 84,000 from a year earlier and the highest number since June 1999 when the agency began compiling related data. The jobless rate also jumped to 4.4 percent in April, up 0.3 percentage points year-on-year, the highest since 2000 when it stood at 4.5 percent. The rate for those aged between 15 and 29 reached 11.5 percent, up 0.8 percentage points from a year earlier, also the highest since April 2000. The number of employed people was 27.03 million in April, up 171,000 year-on-year.By age, 335,000 jobs were added for those in their 60s, while 65,000 were obtained by those in their 50s. People in their 20s saw 21,000 new jobs. By contrast, 90,000 people in their 30s and 187,000 people in their 40s lost their jobs. Among the self-employed, 28,000 joined their ranks,

May 15, 2019By Lee Kyung-min
Jobless rate hits 19-year high
  • No money, no hope: South Korea's 'Dirt Spoons' turn against Moon
Economy

Boosting tax cooperation

National Tax Service (NTS) Commissioner Han Sung-hee, left, shakes hands with his Polish counterpart Marian Banas at a meeting in Warsaw, Poland, May 14 (local time). They discussed ways to boost cooperation in efficient tax administration. During Han's six-day trip from May 14, he also met with tax chiefs in Hungary, Uzbekistan and Kyrgyzstan. Courtesy of NTS

May 15, 2019By Lee Kyung-min
Economy

'Korea should brace for prolonged market turmoil'

Xu Xiao Chun of Moody's AnalyticsBy Lee Kyung-min Korea may face prolonged market turmoil as lingering uncertainties caused by the U.S.-China trade war will weigh on investor sentiment, experts forecast Tuesday.They expect both stock and currency markets to undergo wild fluctuations for a while as foreign investors are likely to continue dumping local shares as the won weakens against the dollar.They said the Korean market will be more volatile than others as the country's export-reliant economy is dependent on global economic and financial sentiment. Xu Xiao Chun of Moody's Analytics said the Korean economy as well as its equity market may experience severe, long-lasting consequences along with the overall slowdown in world trade. “Now that the threatened tariff rate hike is set to go ahead, the Asia-Pacific region including Korea will take a significant hit given their economies are linked to the Chinese supply chain,” he said. “The U.S. also threatened to raise tariffs to 25 percent on an additional $300 billion in Chinese imports. Understandably, equity markets

May 14, 2019By Lee Kyung-min
'Korea should brace for prolonged market turmoil'
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