South Korean President Park Geun-hye is appointing Hyun Oh-seok as finance minister, paving the way for stimulus measures to boost growth in Asia’s fourth-biggest economy.
Hyun, 62, was to be appointed yesterday afternoon, Park’s spokeswoman Kim Haeng said at a briefing televised on YTN network.
Pressing on with Hyun’s appointment in the face of objections from opposition lawmakers may bring forward measures that Park hopes will spur the economy after growth last year was the weakest since the global financial crisis.
After his nomination, Hyun said short-term policy support is needed.
“Hyun becoming finance chief is likely to speed up preparation for a stimulus package, given that Hyun shares the view that a policy boost is needed,” said Kim Hyeon-wook, an economist at SK Research Institute who has worked under Hyun.
Hyun was president of the state research center Korea Development Institute, which was founded by Park’s father, former dictator Park Chung-hee.
He has a PhD in economics from the University of Pennsylvania and previously worked at the World Bank, as well as South Korea’s finance ministry.
The government may announce a supplementary budget of 10 trillion won (US$8.9 billion) on Tuesday, Yonhap News reported this week, without saying where it got the information.
South Korean Ministry of Strategy and Finance Director-General Choi Sang-mok said no decision had been made.
Delays in filling the finance minister slot have been costly because consumers and companies are delaying spending until they see the new government’s stance, said Kong Dong-rak, a fixed-income analyst at Hanwha Investment & Securities Co in Seoul.
“It’s a great loss to our economy to have the economic-policy control tower empty for nearly a month,” Kong said.
South Korean officials aim to get the nation closer to a potential growth rate estimated by central bank Governor Kim Choong-soo at 3.8 percent, after last year’s 2 percent expansion was the weakest since 2009.
Challenges include a stagnant property market, an aging population and weakness in the yen that aids export competitors in Japan.
“Hyun will need to announce at least 20 trillion won of supplementary spending to achieve growth of about 3 percent this year,” Lee Chul-hee, chief economist at Tongyang Securities Inc, said by telephone in Seoul.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion