March 14, 2017

South Korea’s trade with the United States has grown an average of 1.7 percent per year for the past five years on the back of the bilateral free trade pact despite a downturn in world trade, government data showed Tuesday.

Korea-US trade reached $109.7 billion last year, up from $100.8 billion in 2011, one year before the Seoul-Washington free trade agreement took effect, according to the data by the Ministry of Trade, Industry and Energy.

Over the same period, world trade retreated an annual 3.5 percent amid a protracted economic slump.

South Korea’s exports to the US gained an annual 3.4 percent over the five-year period, while the country’s entire outbound shipments fell 2.3 percent on average.

Imports from the world’s biggest economy edged down an average 0.6 percent per year, compared with a 5 percent annual drop in overall imports during the 2011-2016 period.

Asia’s fourth-largest economy saw its trade surplus with the US more than double to post $23.25 billion in 2016 from $11.64 billion in 2011, with an average growth rate hitting 14.8 percent over the five-year period.

The sharp increase in the trade surplus sparked concerns that US President Donald Trump will push to renegotiate the Korea-US FTA, as he has denounced the deal as a job destroyer, hinting that he would seek to revise the terms.

The massive surplus has also been under fire from the US government, which could designate South Korea as a currency manipulator.

But in the service sector, South Korea posted a $14.09 billion trade deficit with the US, with an annual growth rate of 10.8 percent from 2011, due to a rise in royalty payments from intellectual property.

Also, South Korean investors invested a total of $37 billion over the 2012-2016 period, up more than 60 percent from $23.1 billion tallied over the 2007-2011 period.

“The Korea-US FTA has been a win-win success to both countries,” said the trade ministry. “Despite a slowdown in world trade, bilateral trade has maintained an upward curve for the past several years.” (Yonhap)

 

Source: The Korea Herald > Business > Economy

Cigarette sales have dropped for three consecutive months, likely linked to the government’s move to put graphic warnings on cigarette packs, according to data Monday.

South Koreans purchased some 240 million cigarette packs on the domestic market in February, seeing a 22.6 percent fall from 310 million packs in November 2016, according to the Ministry of Strategy and Finance.

Sales amounted to 290 million packs in December and 280 million cigarette packs in January this year.

(Yonhap)

The gradual slide in sales came as the government began to dictate that cigarette packs sold in Korea carry graphic warnings about 10 adverse effects on human health, including cancers, heart disease and erectile dysfunction, starting Dec. 23, 2016.

According to the plan, one of 10 disturbing photos must be placed on the upper part of a cigarette pack and cover at least 30 percent of the entire display, along with a hotline that directs a caller to a tobacco rehabilitation center run by the National Cancer Center.

The number of those visiting cigarette rehabilitation center has almost doubled in the last three months. Some 26,000 people were estimated to have been registered in a rehabilitation program at state-run health facilities as of December, while the number soared to 51,000 in January.

“Since the graphic warnings started to appear on cigarette packs, more and more people are likely to quit smoking,” the ministry said. “We expect another drop in the number of smokers next month.”

The smoking rate in Korea has continued to drop, especially since the hike in price by 2,000 won ($1.70) per cigarette pack in January 2016. The rate of men smoking cigarettes slid to 39.3 percent in 2015, according to data in 2016, marking the first time it had fallen below 40 percent.

The ministry announced in 2015 that it aimed to lower the smoking rate among South Korean men to 29 percent by 2020.

By Son Ji-hyoung (consnow@heraldcorp.com)

South Korea’s No. 2 carmaker Kia Motors Corp. and its larger affiliate Hyundai Motor Co. have been ramping up efforts to boost their brand recognition in the United States by sporing major golf tournaments, industry sources said Tuesday.

The American unit of Kia Motors will sponsor the eighth annual Kia Classic LPGA tournament to be held at Park Hyatt Aviara Golf Club in California from March 20-26, which will bring together the top 100 players in terms of 2016 LPGA prize money rankings, including world No. 1 Lydia Ko.

This file photo shows Lydia Ko posing after winning the 2016 Kia Classic LPGA tournament. (Kia Motors Corp.)

Kia will provide vehicles to be used by participating golfers, hold an exhibition of its cars and host a variety of events to promote its brand.

The upcoming tournament’s prize money totals $1.8 million with Kia offering the winner its latest Cadenza full-size sedan.

n the sidelines of the tournament, Kia will hold a golf clinic for young players and an autograph session by participating golfers.

Kia plans to donate part of the proceeds from ticket sales to a US nonprofit organization dedicated to helping retired soldiers find jobs and assimilate into society. The carmaker will also give away free tickets to families of active US service members.

“Based on a successful LPGA partnership, Kia has been engaging in efforts to burnish its image through golf,” a Kia official said.

“Kia is very pleased to contribute to the community where its US unit is based, through the sponsorship.”

Meanwhile, Hyundai also sponsored two golf tournaments at home and abroad — the KPGA tour Genesis Championship and the Genesis Open in Los Angeles — in February in an effort to promote its luxury brand Genesis. (Yonhap)

Source: The Korea Herald > Business > Industry