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Pluto
Joined: 19 Dec 2006
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 Posted: Mon Apr 28, 2008 7:21 am Post subject: South Korean Economy to Slow.... |
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...even more.
South Korea's Growth Is Likely to Slow More
by JUNG-AH LEE
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SEOUL, South Korea -- South Korea's economy, after experiencing its weakest quarterly growth in more than three years, is likely to slow even more in the next few months.
Stumbling investments and slowing exports led its gross domestic product to expand 0.7% on a seasonally adjusted basis in the first quarter, the Bank of Korea said in preliminary data issued Friday. That fell shy of a market estimate for a 1% rise and was the weakest quarterly growth since the fourth quarter of 2004.
[Chart]
Following the data's release, a director-general at the central bank's Economic Statistics Department, Choi Chun-sin, said the economy may grow at a slower rate in the April-June period. That might lead the central bank to cut its key interest rate as early as May, despite rising inflation, observers say.
"The Korean economy appears more exposed to the global slowdown than previous assumed, with autonomous domestic demand growth unlikely to offset the expected weakness in exports," said HSBC economist Frederic Neumann.
He expects the central bank to deliver its first cut of the year in its benchmark interest rate by a quarter-percentage point at the end of this quarter, instead of the middle of the third quarter as he had previously assumed.
The central bank, which has left its benchmark interest rate unchanged at 5% since August, will next review its monetary policy on May 8.
The GDP report added to evidence that South Korea's new president, Lee Myung-bak, will have a difficult time meeting his short-term economic goals. Mr. Lee, who campaigned on giving South Korea an economic jolt, has had to adjust in the face of the U.S.-led global economic slowdown.
Finance Minister Kang Man-soo said on Thursday that it will be difficult to hit Mr. Lee's goal of achieving 7% economic growth over his five-year term.
In his report on Friday, the Bank of Korea's Mr. Choi said the quarterly growth in the second half may outperform the first-quarter's reading, as capital and construction investments improve. |
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Ya-ta Boy
Joined: 16 Jan 2003
Location: Established in 1994
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| Posted: Mon Apr 28, 2008 4:13 pm Post subject: |
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| Not good, but as long as my fund keeps paying 25%+ I'm happy. |
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mises
Joined: 05 Nov 2007
Location: retired
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| Posted: Mon Apr 28, 2008 6:56 pm Post subject: |
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 What fund is that?
I'm mostly in dividend paying stocks but 25% might sway me... |
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Ya-ta Boy
Joined: 16 Jan 2003
Location: Established in 1994
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| Posted: Tue Apr 29, 2008 2:24 am Post subject: |
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Not a clue. I went to Nong Hyup a couple of years ago and said I wanted to invest my money in a fund. The guy whipped out a form and we filled it out. We divided my money into two piles. One for a conservative fund where I couldn't lose money but the potential interest was lower and one for a more adventurous fund where I could lose if things didn't work out, but could win big if the guy at the head office guessed right. Both had a 2-year limit.
I was content for a year or so and then about 8 months ago I started getting excited. The Korean market was setting all-time records and my end-date was growing nigh. Then about 6 months ago the K market started dropping bombs. My mood followed suit.
A couple of weeks ago I went in ready to make a public scene of a foreigner crying and floundering around on the floor, gnashing teeth and all. You can imagine how pleased I was when the lady handed me a print-out showing almost 24% for one and 13.33% for the other. (It changes on a daily basis.) I renewed for another year.  I'm guessing the money is at least partly invested in Korean stocks in China, or something like that. IF I took my money out today, it would be a shade under 33% profit, minus fees.
BTW, having money invested through Nong-Hyup means I am a VIP when I go in. That doesn't hurt when there is a crowd of ajumas ahead of me and I get hustled over to a desk on the side and given a cup of OJ while the cute young thing does my banking business. It also doesn't hurt when it comes to my credit card. None of the silliness that I used to get at Kook-Min. |
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greedy_bones
Joined: 01 Jul 2007
Location: not quite sure anymore
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| Posted: Wed Apr 30, 2008 8:56 am Post subject: |
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All I have to say is *beep* Hyundai. Stop manipulating the worth of the won to match the dollar. As the worth of the dollar drops, I should be profiting by sending won home not losing money. If the dollar has dropped the most, why should the won be strongest against every currency except the dollar???
I know this is a little unrelated, but I'm getting annoyed by this nonsense. |
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Czarjorge
Joined: 01 May 2007
Location: I now have the same moustache, and it is glorious.
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| Posted: Wed Apr 30, 2008 11:10 pm Post subject: |
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Should I come to Korea?
Damn, why am I spending all this time learning the language. |
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Ya-ta Boy
Joined: 16 Jan 2003
Location: Established in 1994
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| Posted: Thu May 01, 2008 2:41 am Post subject: |
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Should I come to Korea?
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Well, given that the only currency lower than the Korean Won is the US dollar, why not come? You wouldn't be any worse off.
(I'm exaggerating about the Won.) |
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