Consumer prices rise 2.1% in July on higher industrial goods, service costs

South Korea's consumer prices grew by more than 2 percent for the second consecutive month in July, mainly driven by higher costs of industrial goods and services, government data showed Tuesday. Consumer prices, a key gauge of inflation, increased 2.1 percent from a year earlier last month, according to the data from Statistics Korea. Inflation had remained above the Bank of Korea's 2 percent target for four consecutive months through April before slowing to 1.9 percent in May. It then edged up

Aug. 5, 2025

[Contribution] Is China equity recovery durable?

By Raymond Cheng China’s equity rally faces a wall of scepticism after years of false dawns. However, this time could be different: Beijing’s crackdown on irrational competition in key industries and sustained stimulus, compounded by moderating US trade rhetoric ahead of a potential Trump-Xi meeting, are setting the stage for a sustainable equity market rebound most are missing. The Hang Seng index and MSCI China index have soared over 25 percent year to date. However, China equities still regis

Aug. 4, 2025

Early data shows stimulus coupons are helping retailers. Opticians see biggest boost

Small business sales are already seeing an uptick a week after South Korea rolled out its stimulus coupon program, with data from July 21 to 27 showing noticeable gains, according to figures released Monday. A card sales analysis from Korea Credit Data showed that optical shops saw the biggest jump, with sales surging nearly 57 percent from the previous week. Fashion and clothing stores followed with a 28.4 percent increase. Noodle restaurants were up 25.5 percent, foreign language academies 24.

Aug. 4, 2025

Lee Jae Myung rolls back Yoon-era tax cuts in first code overhaul

President Lee Jae Myung’s first tax code overhaul, unveiled Thursday, focuses on reversing the tax relief introduced under his predecessor over the past three years, chiefly by raising tax rates on corporations and high-income individuals. “The country’s tax revenue base has eroded sharply over the past three years, leading to a significant drop in the tax-to-GDP ratio,” First Vice Finance Minister Lee Hyoung-il said Tuesday during a press briefing. “This year’s tax revision aims to support econ

July 31, 2025

Seoul, Washington strike $450b deal to cap US tariffs at 15%

South Korea clinched a last-minute trade deal with the United States on Thursday, capping a looming blanket tariff at 15 percent and averting a steeper 25 percent rate set to take effect Friday. In return, Seoul agreed to a $350 billion investment package aimed at deepening economic ties with Washington. The new 15 percent tariff rate, described as “reciprocal,” aligns with terms recently accepted by Japan and the European Union. However, it marks a significant departure from the 2012 Korea-US F

July 31, 2025

Industrial output, retail sales rise in June; facility investment down for 4th month

South Korea's industrial output and retail sales rose from a month earlier in June, while facility investment declined for the fourth consecutive month, government data showed Thursday. Industrial production went up 1.2 percent last month compared with a month earlier, led by strong performances in the semiconductor and automobile sectors, according to the data compiled by Statistics Korea. Retail sales, a gauge of private spending, gained 0.5 percent on-month, backed by strong demand for clothi

July 31, 2025

Trump says he'll meet S. Korean trade delegation with 'offer to buy down' tariffs

US President Donald Trump said Wednesday that he will meet a South Korean trade delegation in the afternoon to listen to their "offer to buy down" the proposed 25 percent "reciprocal" tariffs. Trump made the remarks in a social media post as South Korean negotiators are striving to reach a trade deal with his administration before Friday, when the steep reciprocal tariffs are set to take effect unless an agreement is reached. "I will be meeting with the South Korean Trade Delegation this afterno

July 31, 2025

'Yellow Envelope Law' will repel investment, foreign biz groups warn

A controversial pro-labor union bill advancing through Korea’s National Assembly is drawing a rare, unified backlash from both foreign business chambers and local industry groups, who warn it could erode legal predictability and diminish the country's investment competitiveness. The proposed legislation, commonly referred to as the “Yellow Envelope Law,” would amend the Trade Union and Labor Relations Adjustment Act. If passed, the bill would expand the definition of “employer” to include main c

July 30, 2025

From US to Scotland, Korea chases last-minute deal to dodge tariff hit

With just days remaining before the US imposes steep "reciprocal tariffs," South Korea is ramping up efforts to strike a deal, overhauling its negotiation package and closely shadowing key US officials as it tries to bring the 25 percent rate down. Deputy Prime Minister and Finance Minister Koo Yun-cheol departed Tuesday for Washington, where he is scheduled to meet US Treasury Secretary Scott Bessent on Thursday. Koo said he would press for a “mutually beneficial agreement,” pitching sectors su

July 29, 2025

South Korea in push for US trade deal to offer package including shipbuilding tie-up

South Korean Finance Minister Koo Yun-cheol said on Tuesday he would seek a mutually beneficial trade deal when he meets US Treasury Secretary Scott Bessent for talks this week, just days before an August 1 deadline expires to avoid punishing tariffs. Speaking at the airport before departing for Washington, Koo said he would propose at Thursday's meeting a "programme" South Korea had prepared and consult on areas where they could cooperate in the mid-to-long term, such as shipbuilding. South Kor

July 29, 2025

European chamber raises alarm over Korea’s 'Yellow Envelope' bill

The European Chamber of Commerce in Korea is urging a revision of the proposed “Yellow Envelope Law,” warning that its implementation could prompt foreign companies to withdraw from the Korean market. According to the National Assembly on Tuesday, the bill, which would revise Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act, passed the Environment and Labor Committee’s plenary session Monday. The Democratic Party-led proposal was twice vetoed under former President Yoon Suk

July 29, 2025

S. Korean shipbuilders' global order share rises in H1 amid US-China tension

South Korean shipbuilders saw a significant rebound in their global order share in the first half amid US sanctions targeting Chinese rivals, an industry report showed Tuesday. According to the report from the Export-Import Bank of Korea, South Korea secured 25.1 percent of global shipbuilding orders in terms of compensated gross tons during the January-June period. It marks a substantial rise from 17.2 percent a year earlier, narrowing the gap with leader China from 51 percentage points to 26.7

July 29, 2025

Finance minister to hold talks with U.S. treasury secretary Thursday

Finance Minister Koo Yun-cheol will hold high-level trade talks with his U.S. counterpart in Washington later this week, the finance ministry said Monday, as the Aug. 1 deadline for tariff negotiations approaches. Koo will depart Tuesday for the U.S. capital, where he will hold talks with U.S. Treasury Secretary Scott Bessent on Thursday (local time), just one day before the United States is expected to resume hefty tariff enforcement on South Korean goods. The minister had originally been slate

July 28, 2025

Seoul event honors 40 years of Korea-Trinidad and Tobago relations

The Honorary Consulate Office of Trinidad and Tobago to the Republic of Korea celebrated 40 years of diplomatic relations between the two nations in Seoul on Wednesday, with key officials and members of the Trinidad and Tobago diaspora in attendance. The event also honored the longstanding service of Honorary Consul Choi Seung-woong, who has served since the consulate’s opening in 1993. Choi reflected on several key milestones, including the inaugural ceremony attended by Miss World 1993, Caribb

July 28, 2025

Seoul's average apartment price tops $1m

Rising home prices in Seoul pushed the city’s average apartment price beyond 1.4 billion won ($1 million) for the first time, data showed Monday. KB Kookmin Bank’s monthly real estate report showed that the average price of apartment homes in Seoul reached 1.45 billion won in July, marking a 1.28 percent increase from the previous month. The figure climbed past the 1.4 billion won mark just three months after surpassing 1.3 billion in April. Apartment prices averaged 1.76 billion won in Seoul’s

July 28, 2025