South Korea – Muhasebe News

The Bank of Korea’s Monetary Policy Council made the decision to maintain the Base Rate at 3.50%

MuhasebeNews — Mon, 27 Feb 2023 07:42:37 +0000

In order to assess the impact of previous rate hikes, South Korea’s central bank decided to hold its interest rate, bringing an end to the tightening cycle that began 18 months ago.

The Bank of Korea’s Monetary Policy Board decided to keep the Base Rate unchanged at 3.50 percent.

Since August 2021, the central bank has raised its policy rate by a total of 300 basis points, bringing it to its highest level since 2008.

“I don’t want today’s decision to be interpreted as the end of rate hikes,” said Bank of Korea Governor Rhee Chang-yong.

The governor previously stated that it was normal to pause after raising interest rates to assess the need for further increases.

“Today’s decision could be interpreted as a return to the previous way,” Rhee said.
The central bank reduced its growth forecast for 2023 to 1.6 percent from 1.7 percent, citing the global economic slowdown and interest rate increases.

Domestic economic growth is expected to improve gradually beginning in the second half of 2023, as the Chinese economy and information technology industry recover. Nonetheless, the outlook is judged to be fraught with uncertainty.

Source: RTT News
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Consumer confidence in South Korea declines in February

MuhasebeNews — Tue, 21 Feb 2023 13:08:58 +0000

As the Bank of Korea gears up to conduct its most recent rate-setting session later this week, survey data reveals that consumer sentiment in South Korea declined in February as households’ expectations for future living standards and earnings declined.

Results from a survey conducted by the Bank of Korea revealed that the consumer confidence index fell from 90.7 in January to 90.2 now. The measurement in December was 90.2.

The measure for the view on prospective income eased to 95 from 96, and the sub-index for households’ estimate of future living standards fell to 83 from 85.

Consumers anticipate an increase in household spending in the future, and the pertinent indicator increased from 110 to 112 as a result.

Households’ expectations for the domestic economic conditions in future were unchanged and the corresponding index was steady at 60.

Labor force participation rate in South Korea stood at 62.6% in January, up 0.4%p year-on-year

MuhasebeNews — Fri, 17 Feb 2023 08:19:18 +0000

< Economically active population and labor force participation rate in South Korea>

◯ The economically active population marked 28.387 million persons in January, which grew 291 thousand persons or 1.0% year-on-year.

◯ The labor force participation rate stood at 62.6% in January, up 0.4%p year-on-year.

< Employed persons and employment to population ratio >

◯ The number of employed persons totaled 27.363 million persons in January, which went up 411 thousand persons or 1.5% year-on-year.

◯ The employment to population ratio recorded 60.3% in January, up 0.7%p year-on-year.

< Unemployed persons and unemployment rate >

◯ The number of unemployed persons totaled 1,024 thousand people in January, which decreased 119 thousand persons or 10.4% year-on-year.

◯ The unemployment rate marked 3.6% in January, down 0.5%p year-on-year.

< Economically inactive population >

◯ The economically inactive population totaled 16.965 million people in January, decreasing 139 thousand persons or 0.8% year-on-year.

Source: Statistics Korea
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Samsung’s Unexpected Recovery!

MuhasebeNews — Thu, 13 Apr 2017 08:53:46 +0000

Pre-orders Samsung’s flagship Galaxy S8 smartphones have been better than expected so far!

Tech giant Samsung Electronics explained that pre-orders for Samsung Galaxy S8 has been better than expected so far.

South Korean firm’s mobile business chief Koh Dong-jin claimed that that helped the firm recover from the costly collapse of the fire-prone Galaxy Note 7.

Source: Euronews

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Hyundai and Kia Call Back Their Cars!

MuhasebeNews — Mon, 10 Apr 2017 07:53:26 +0000

Hyundai and Kia groups are planing to call back their cars in South Korea!

Hyundai and Kia groups are planing to call 171,348 cars back in South Korea due to an engine defect. Because the ministry said metal debris in crankshafts could cause engine damage, leading to possible engine stalling.

The recall covers Hyundai’s Sonata, Grandeur sedans and Kia’s K5, K7 and Sportage models.

Source: Euronews

Samsung Will Launch Galaxy Note 7 to the Market Again!

MuhasebeNews — Mon, 03 Apr 2017 14:22:45 +0000

Samsung is planning to launch refurbished version of Galaxy Note 7 to the market.

Tech giant Samsung is planning to sell refurbished versions of the Galaxy Note 7 which was pulled from markets last year due to fire-prone batteries (self-combusted).

However, the refurbished versions of Galaxy Note 7 will only be sold in specific markets like South Korea.

Source: Bloomberg

Investment Legislation

MuhasebeNews — Mon, 13 Mar 2017 13:39:08 +0000

Turkey’s investment legislation is simple and complies with international standards, while it offers equal treatment for all investors. The backbone of the investment legislation is made up of the Encouragement of Investments and Employment Law No. 5084, Foreign Direct Investments Law No. 4875, the Regulation on the Implementation of the Foreign Direct Investment Law, multilateral and bilateral investment treaties and various laws and related sub-regulations on the promotion of sectorial investments.

Legal Framework of Foreign Direct Investment
1. Foreign Direct Investment (FDI) Law No. 4875

The aim of the Foreign Direct Investment (FDI) Law No. 4875 is:

to encourage FDI in the country
to protect the rights of investors
to align the definitions of an investor and investment with international standards
to establish a notification-based system rather than an approval-based one for FDI
to increase the volume of FDI through streamlined policies and procedures

The FDI Law provides a definition of foreign investors and foreign direct investments. In addition, it explains important principles of FDI, such as;

freedom to invest,
national treatment,
expropriation and nationalization,
freedom of transfer,
national and international arbitration and alternative dispute settlement methods,
valuation of non-cash capital,
employment of foreign personnel,
liaison offices.

The Regulation on the Implementation of the FDI Law consists of specifying the procedures and principles set forth in the FDI Law. The aim of the FDI Law with regard to the work permits for foreigners is:

to regulate the work carried out by foreigners
to stipulate the provisions and rules on work permits given to foreigners
2. Bilateral Agreements
2.a. Bilateral Agreements for the Promotion and Protection of Investments
Bilateral Agreements for the Promotion and Protection of Investments were signed from 1962 onwards with countries that show the potential to improve bilateral investment relations. The basic aim of bilateral investment agreements is to establish a favorable environment for economic cooperation between the contracting parties by defining standards of treatment for investors and their investments within the boundaries of the countries concerned. The aim of these agreements is to increase the flow of capital between the contracting parties, while ensuring a stable investment environment. In addition, by having provisions on international arbitration, they aim to prescribe ways to successfully settle disputes that might occur among investors and the host state. Turkey has signed Bilateral Investment Treaties with 94 countries. However, Turkey is a dualist country, where an international treaty has to be ratified and promulgated in order to become part of the national legal system. Within this regard, 75 Bilateral Investment Treaties out of these 94 have gone into effect so far.

75 countries
Afghanistan, Albania, Argentina, Australia, Austria, Azerbaijan, Bangladesh, Belarus, Belgium-Luxembourg, Bosnia and Herzegovina, Bulgaria, China, Croatia, Cuba, Czech Republic, Denmark, Egypt, Estonia, Ethiopia, Finland, France, Georgia, Germany, Greece, Hungary, India, Indonesia, Iran, Israel, Italy, Japan, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Latvia, Lebanon, Libya, Lithuania, Macedonia, Malaysia, Malta, Moldova, Mongolia, Morocco, Netherlands, Oman, Pakistan, Philippines, Poland, Portugal, Qatar, Romania, Russian Federation, Saudi Arabia, Senegal, Serbia, Singapore, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, Syria, Tajikistan, Thailand, Tunisia, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, Yemen
Source: Ministry of Economy

2. b. Double Taxation Prevention Treaties
Turkey has signed Double Taxation Prevention Treaties with 80 countries. This enables tax paid in one of two countries to be offset against tax payable in the other, thus preventing double taxation.

80 countries
Albania, Algeria, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Belarus, Belgium, Bosnia and Herzegovina, Brazil, Bulgaria, Canada, China, Croatia, Czech Republic, Denmark, Egypt, Estonia, Ethiopia, Finland, France, Georgia, Germany, Greece, Hungary, India, Indonesia, Iran, Ireland, Israel, Italy, Japan, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Latvia, Lebanon, Lithuania, Luxembourg, Macedonia, Malaysia, Malta, Moldova, Mongolia, Morocco, Netherlands, New Zealand, Norway, Oman, Pakistan, Poland, Portugal, Qatar, Romania, Russian Federation, Saudi Arabia, Serbia and Montenegro, Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain, Sudan, Sweden, Switzerland, Syria, Tajikistan, Thailand, Tunisia, Turkish Republic of Northern Cyprus, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, Yemen
Source: Revenue Administration

Turkey is continuing to expand the area covered by the Double Taxation Prevention Treaty by adding more countries on an ongoing basis.

2. c. Social Security Agreements
Turkey has signed Social Security Agreements with 26 countries. These agreements make it easier for expatriates to move between countries. The number of these countries will increase in line with the increased sources of FDI.

26 countries
Albania, Austria, Azerbaijan, Belgium, Bosnia and Herzegovina, Bulgaria, Canada and the Province of Quebec, Croatia, Czech Republic, Denmark, France, Georgia, Germany, Libya, Luxembourg, Macedonia, Netherlands, Norway, Romania, Slovakia, Serbia, South Korea, Sweden, Switzerland, Turkish Republic of Northern Cyprus, United Kingdom
Source: Social Security Institution (SSI)

3. Customs Union and Free Trade Agreements (FTA)
A Customs Union Agreement between Turkey and the European Union has been in effect since 1996. The agreement allows trade between Turkey and the EU countries without any customs restrictions. The EU-Turkey Customs Union is one of the steps toward full Turkish membership of the EU itself.

Turkey has FTAs with 37 countries, creating a free trade area in which the countries agree to eliminate tariffs, quotas and preferences on most goods and services traded between them. This framework explains why many global companies are now using Turkey as a second supply source and manufacturing base, not only for the EU and rapidly growing Turkish markets, but also for the Middle East, Black Sea and North African markets, with the added advantage of a relatively low-cost but well-educated labor force, coupled with cost-effective transportation.

37 countries
Albania, Bosnia and Herzegovina, Egypt, Georgia, EFTA, Israel, South Korea, Macedonia, Morocco, Malaysia, Mauritius, Palestine, Jordan, Syria*, Tunisia, Montenegro, Serbia, Chile
Countries that have finalized the negotiation process: Faroe Islands, Ghana, Kosovo, Lebanon, Moldova, Singapore
Countries in the negotiation process: Democratic Republic of the Congo, Cameroon, Colombia, Ecuador, Gulf Cooperation Council, Japan, Libya, Mexico, Mercosur, Peru, Seychelles, Ukraine *suspended
Source: Ministry of Economy

Date: 13 March 2017

Foreign Trade

MuhasebeNews — Mon, 13 Mar 2017 12:56:54 +0000

Foreign Trade Statistics

Source: TurkStat

Due to the implementation of the liberalization process since the 1980s, the Turkish economy has experienced a period of substantial growth. Foreign trade, in respect of both exports and imports, has grown rapidly and notable changes in the structure of exports have been observed. In this regard, industrial products have gained prominence over agricultural products.

Turkey became a member of the World Trade Organization (WTO) in 1995. Following this move, it finalized an agreement with the European Union, enabling it to join the Customs Union on January 1, 1996.

Exports
In line with the policies implemented as part of the export-led development model followed since 1980, exportation has become important to Turkey in both qualitative and quantitative terms.

Starting in particular in 1980 and continuing up to the mid-1990s, significant developments have been observed in the market share held by labor-intensive industrial products such as textiles and clothing, iron and steel, and foodstuffs.

In 1996, following the establishment of a Customs Union with the European Union, Turkey’s exports entered a new structural transformation process. Developments in recent years show that production and exportation have increased substantially in high-technology sectors, where goods include electrical and electronic machinery and equipment, as well as in the automotive industry. In this respect, it can also be observed that the export market share of manufactured industrial products has increased.

Top 10 Export Product Groups in 2016

Source: TurkStat

Major Export Markets in 2016

Source: TurkStat

Imports
The Turkish import regime highlights the liberalization of Turkish imports in line with its commitment to complete the Customs Union with the EU, its relationship with EFTA, and its obligations under the World Trade Organization (WTO). Turkey has placed special emphasis on its commitment to reduce customs duties in order to align itself with the Common Customs Tariff. Turkey has made some necessary modifications to its import regime, and by January 1, 1996 the Customs Union with the EU became effective.

The basic aims of Turkey’s import policy since the early 1980s can be summarized as follows:

To reduce protectionist measures in conformity with the new GATT rules
To reduce bureaucratic procedures
To secure a supply of raw materials and intermediary goods at suitable prices with certain quality standards

Turkey’s Membership of International Trade Organizations
Turkey has been a member of the World Trade Organization (WTO) since 1995. The country’s commitment to integrating regional and international trade norms can be seen in its participation in and membership of various organizations, including

the Economic Cooperation Organization (ECO),
the United Nations Conference on Trade and Development (UNCTAD),
the Organization of the Black Sea Economic Cooperation (BSEC),
the World Customs Organization (WCO),
the International Chamber of Commerce (ICC),
D-8,
various other organizations

In addition to the Customs Union with the EU, Turkey has signed Free Trade Agreements (FTA) with

Albania,
Bosnia-Herzegovina,
Chile,
Egypt,
Faroe Islands*,
Georgia,
Ghana*,
Iceland,
Israel,
Jordan,
Kosovo*,
Lebanon*,
Macedonia,
Malaysia,
Mauritius,
Montenegro,
Moldova*,
Morocco,
Norway,
Palestine,
Serbia,
Singapore*,
South Korea,
Switzerland,
Lichtenstein,
Syria (pending),
Tunisia. (*to be ratified)

Date: 13 March 2017

Turkey – Synoptic

MuhasebeNews — Mon, 13 Mar 2017 11:49:07 +0000

Date: 13 March 2017