News from South Korea
Country Updates
29 December 1998
South Korea Expected to Lend More Than it Will Borrow in 1999
The government expects South Korea's overseas lending to exceed its borrowings next year for the first time ever by recording a current account surplus of about US$20 billion. S. Korea currently has net foreign debts of US$21.1 billion with overseas liabilities reaching US$153.5 billion while assets accounted for US$132.4 billion as of October 1998.
The government, however, expects a surplus of US$20 billion in the current-account balance and black figures in capital balance as well next year, becoming a creditor country for the first time, sources said.
The preceding Country Update is courtesy of Cynthia Gilbert, of Saddle River Futures Trading Group/Refco Inc. in Chicago, IL Published by PANGAEACommunicationstm. Cynthia works as a commodities broker and has experience trading emerging market debt and equities.
1 April, 19973,000 S. KOREANS LOSE JOBS EACH DAY; JOBLESS RATE IN FEBRUARY '97 SOARED TO 3-YEAR HIGH OF 3.2%
Affected by downsizing drives by companies and increasing bankruptcies due to the nation's ongoing economic slump, an average of 3,000 South Korean's find themselves out of a job every day. The number of temporary workers (contract period of less than a year) is on a steady increase whereas that of full-time employees is declining.The National Statistical Office (NSO) announced that the number of unemployed people increased by 183,000 during the first two months of the year (72,000 in January, 111,000 in February) to reach an all time-high of 662,000.
The jobless rate in February reached 3.2%, exceeding the 3% level for the first time in three years since February 1994. The figure is an increase of 0.9% of a point from last December and 0.6% of a point from January. It also exceeds the government's projected jobless rate of 2.5% for this year. (Source: Joong-Ang Ilbo, April 1, 1997)
S. KOREA'S CONSUMER PRICE HIKES STOPPED AT 1.7% DURING THE FIRST THREE MONTHS OF THE YEAR; LOWEST MONTHLY INCREASE IN 11 YEARS
Despite the increase in gasoline prices and school tuition fees, consumer price hikes stabilized and only rose by 1.7% during the first three months of 1997, the lowest rate since 1989. In particular, consumer prices in March climbed by a mere 0.4% from the previous month, the lowest monthly increase in 11 years since March 1986 (0.3%).Director Kim Chong-chang at the Ministry of Finance and Economy said, "School tuition fees at the nation's secondary schools and universities, which had steadily increased by two-digit figures, only rose by 5.1% and 7.1% respectively this year. Gasoline prices also began to drop in March due to lower international oil prices." (Source: Joong-Ang Ilbo, April 1, 1997)
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last updated: 1/5/99