Economy - The Korea Times

Korea to extend fuel tax cut by another 2 months until June

Korea will extend its fuel tax cut for an additional two months through the end of June in an effort to ease the financial burden on consumers amid rising prices and slowing demand, the finance ministry said Tuesday. Under the extended policy, however, the current 15 percent tax cut on gasoline will be rolled back to 10 percent, while the tax cut on diesel and liquefied petroleum gas (LPG) will be reduced from 23 percent to 15 percent, according to the ministry. The adjusted fuel tax rates will remain in effect until June 30. The ministry said the partial rollback was decided in consideration of recent trends in global oil prices, inflation and the impact on government finances. Korea first introduced the fuel tax cut in November 2021 as a response to rising energy prices. The government has since extended the measure multiple times, adjusting the rates in accordance with changes in the global energy market. This latest move marks the 15th extension of the fuel tax relief program. Korea, which depends heavily on imports for energy, is particularly vulnerable to external price shocks, which

Apr 22, 2025By Yonhap

Korea to extend fuel tax cut by another 2 months until June

Korea's weighting in MSCI index continues to drop amid market weakness

Korea's share in the Morgan Stanley Capital International (MSCI) Emerging Markets Index has dropped below 9 percent for the first time since the 1998 Asian Financial Crisis, analysts said Sunday. The decline is largely attributed to prolonged weakness in the country's stock market and a slide in corporate competitiveness, they said. According to MSCI's official fact sheet, Korea’s weight in the index stood at 8.99 percent as of March 31, down from 9.18 percent in December. Korea was first added to the MSCI Emerging Markets Index in 1992. By 2004, it climbed to 18.67 percent, becoming the index’s top-weighted country. Until the end of 2020, Korea maintained the second-largest weighting after China. But since December 2023, its share has been in steep decline, surpassed by both Taiwan in 2021 and India in 2022. As one of the most influential global equity benchmarks, the MSCI Index plays a key role in shaping capital flows. "If this trend continues, Korea could eventually be grouped with Taiwan as a single portfolio category by global investors. Aside from a few major companies, Korea m

Apr 20, 2025By Lee Yeon-woo

Korea's weighting in MSCI index continues to drop amid market weakness

Financial watchdog chief discusses pending issues with counterparts in Hong Kong, China

Korea's financial watchdog chief has discussed a variety of issues, such capital market advancement and corporate governance reform, with his counterparts in Hong Kong and China, his agency said Thursday. Financial Supervisory Service (FSS) chief Lee Bok-hyun visited Hong Kong and China earlier this week to share views on financial supervision and enhance cooperation with top financial watchdogs there. He met Julia Leung, the CEO of the Securities and Futures Commission of Hong Kong, and Wu Qing, chairman of the China Securities Regulatory Commission, according to the watchdog. During the meetings, they also discussed topics such as the regulation of capital markets, regulatory exchanges and cooperation between the two sides, according to the FSS.

Apr 17, 2025By Yonhap

Financial watchdog chief discusses pending issues with counterparts in Hong Kong, China

Seoul shares slightly up late Thursday morning

Korean stocks traded slightly higher late Thursday morning as investors took a cautious approach to see the developments of the ongoing U.S.-Japan tariff negotiations. The benchmark Korea Composite Stock Price Index (KOSPI) gained 13.81 points, or 0.56 percent, to 2,461.24 as of 11:20 a.m. Investors are watching the U.S.-Japan trade talks, which are expected to give indications regarding upcoming negotiations with other allies, including South Korea. Additionally, South Korea's central bank kept its benchmark interest rate unchanged at 2.75 percent, citing concerns over fluctuating foreign exchange rates and rising household debts amid uncertainty from U.S. tariff policies. Major shares traded in mixed territory. Market bellwether Samsung Electronics rose 0.55 percent and Hanmi Semiconductor, a leading chip manufacturing equipment supplier, jumped 6.65 percent. No. 2 carmaker Kia increased 0.59 percent and defense firm KAI climbed 1.76 percent. However, chip giant SK hynix stayed flat and leading battery maker LG Energy Solution lost 0.73 percent. Nongshim, the country's leading instant nood

Apr 17, 2025By Yonhap

Seoul shares slightly up late Thursday morning

In slumping economy, small businesses connect with young consumers over 'smart deals'

Traditionally, price competition in Korea’s food service industry has centered on restaurants lowering their prices — particularly on high-margin items like beverages. Supermarkets and convenience stores also typically offload excess inventory in bulk at discounted prices. But now, a more systematic trend is taking hold among individual business owners, which is also attracting budget-conscious customers. Jeon Sae-mi, an office worker in her 30s who used to rely on her go-to delivery app for dinner at home, recently tried a new app her colleague had recommended. The app, Lucky Meal, connects users with restaurants, cafes and bakeries offering freshly made but unsold food at about half the original prices when they close at the end of the day. Browsing the app, Jeon picked a nearby shop selling side dishes. She placed an online order for a bundle of side dishes, paying just 7,400 won ($5.19) — half the regular price. She picked them up right away. "The side dishes were still in great condition, and the owner added a few extras for free," she said. "I would definitely use it again. No

Apr 16, 2025By Lee Yeon-woo

In slumping economy, small businesses connect with young consumers over 'smart deals'

InterviewAI expertise, gaming leadership, blockchain innovation makes Korea strategic market: AI expert

Korea is rapidly emerging as a major player in the global artificial intelligence (Al) race as it fiercely competes with regional heavyweights such as China — where companies like DeepSeek are advancing AI innovation — and India, an AI expert said Tuesday. The government’s decision to secure 10,000 high-performance graphics processing units (GPUs) to strengthen national AI infrastructure signals the country’s commitment to maintaining a competitive edge in AI-driven innovation, according to Roman Cyganov, CEO and founder of Antix, a Web3 platform driven by Al. Web3 is a next-generation, blockchain-backed internet. This investment, alongside Korea’s existing expertise in gaming, media and digital technology, enables the country to solidify its position as a frontrunner in AI-powered content creation and synthetic media development. "To sustain its leadership, Korea must continue fostering public-private partnerships, advancing regulatory clarity and incentivizing AI research to match the aggressive AI advancements seen in its neighboring markets," he said in an interview with T

Apr 15, 2025By Lee Kyung-min

AI expertise, gaming leadership, blockchain innovation makes Korea strategic market: AI expert

Container shipping costs on Korea-US route fall for 2nd month in March

Container shipping costs from Korea to the United States fell for the second consecutive month in March, the customs agency said Tuesday. The average shipping cost for a 40-foot container from Korea to the U.S. West Coast dropped 13.1 percent from a month earlier to 5.36 million won ($3,754) in March, according to data from the Korea Customs Service. Shipping costs to the U.S. East Coast also declined, falling 6.4 percent to 6.17 million won during the same period. Average shipping costs from Korea to the European Union fell 2.7 percent on-year in March to 4.39 million won, marking the third consecutive monthly decline. On the Korea–Vietnam route, costs edged down 0.9 percent to 1.75 million won. But shipping costs to China rose 4.5 percent to 844,000 won, while those on the Korea–Japan route surged 14.3 percent to 779,000 won in March. The figures include freight rates, commissions and other related charges reported by local exporters, the agency said.

Apr 15, 2025By Yonhap

Container shipping costs on Korea-US route fall for 2nd month in March

Korean Air hit with series of share price downgrades amid Trump tariff uncertainties

Brokerages are slashing their target prices for Korean Air over concerns of a nearly 20 percent drop in operating profit despite record revenue in the first three months of this year, market watchers said Monday. Falling freight rate margins and Trump tariff uncertainties have painted a bleak outlook for the country's largest flagship carrier in the coming months, they said. Central to the grim outlook is the flagship carrier’s first quarter profit released Friday. The record 3.9 trillion won ($2.7 billion) revenue was a 3.5 percent increase from a year earlier. However, its operating profit fell to 350.9 billion won, down 19.5 percent from the 436.1 billion won a year earlier. Mirae Asset Securities lowered its target price for Korean Air to 30,000 won, down from 33,000 won. This was the same price revised down by Samsung Securities and Hana Securities. The previous price set by Samsung was 35,000 won and 33,000 won by Hana. Mirae Asset said fuel costs dropped 6.3 percent from the previous year, led by lower unit fuel prices. However, it failed to offset a sharper-than-expected increase

Apr 14, 2025By Lee Kyung-min

Korean Air hit with series of share price downgrades amid Trump tariff uncertainties

Home prices soar in Sejong as talks of presidential office relocation resurface

The impeachment of former President Yoon Suk Yeol and the upcoming June 3 presidential election have triggered a surprising turn of events: home prices are soaring in Sejong, Korea's administrative capital, industry officials said Monday. Political parties are fueling expectations for the relocation of the presidential office to the city, arguing that the current office in central Seoul's Yongsan District is unsuitable as a permanent location. While several locations are under consideration — including Cheong Wa Dae and Gwanghwamun in Seoul — Sejong remains the only option outside the capital being discussed. According to real estate data tracker Asil, apartment sales in Sejong surged to 735 in March, nearly double February's 372. Reflecting enthusiasm among homeowners, the number of apartments listed for sale dropped to 6,818 listings as of Monday, a decrease of 12.8 percent compared to a month earlier. Apartment prices are also going up. On March 20, a 98-square-meter unit on the 17th floor near Government Complex Sejong sold for 910 million won ($637,299), marking a 280 million w

Apr 14, 2025By Lee Yeon-woo

Home prices soar in Sejong as talks of presidential office relocation resurface

Won-based export settlements drop in 2024: BOK

The proportion of Korean exports settled in the local currency declined in 2024 due mainly to relatively weak growth in auto exports, central bank data showed Monday. The use of the won accounted for 2.7 percent of all export settlements last year, down 0.2 percentage point from a year earlier, according to the data from the Bank of Korea (BOK). The share had climbed in 2023 for the first time in six years, but fell again in 2024. The decline was largely attributed to the slower growth in automobile exports, which are typically settled in Korean won. Car exports rose 6 percent last year, falling short of the overall export growth of 8.1 percent, the BOK said. A drop in machinery exports also contributed to the decline, it added. The U.S. remained the dominant currency used to settle Korean exports in 2024, accounting for 84.5 percent of total export settlements, up from 83.1 percent in 2023. The increase in dollar-denominated settlements was driven by robust semiconductor exports, which are typically settled in U.S. dollars. Outbound shipments of chips soared 43.9 percent on-year to a reco

Apr 14, 2025By Yonhap

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