Seoul: Consumer Price Index Adjustment Announced
In a noteworthy development, South Korea is set to recalibrate its consumer price index basket, adapting to the evolving economic landscape.
The statistics agency revealed plans on Tuesday to incorporate subscriptions and smartwatch-related expenditures, with further specifics to be disclosed in December.
The Ministry of Data and Statistics unveiled intentions to revamp the consumer price survey, concentrating on contemporary spending behaviors within the digital realm, as reported by the Yonhap news agency.
The impending adjustments will not only embrace subscription fees for software and cloud services but will also eliminate items that have waned in popularity, such as bracken fern, often used in traditional Korean side dishes.
Additionally, the forthcoming items slated for inclusion encompass meal kits, electric vehicle charging fees, online shopping subscriptions, and malatang— a Chinese culinary dish that has recently captured the South Korean palate.
In a bid to ensure public engagement, South Korea aims to solicit citizen opinions through mid-July before the finalization of these adjustments.
Record High Corporate Financial Reserves
In an intriguing contrast, the latest data from the central bank indicates that excess financial reserves held by South Korean corporations surged to unprecedented levels in the first quarter, propelled by robust semiconductor exports.
The Bank of Korea (BOK) reported on Tuesday that net financial funds—representing the difference between financial assets and liabilities—accumulated by non-financial corporations reached 20.8 trillion won (approximately US$13.6 billion) by the end of March. This marks a substantial increase from a mere 100 billion won three months prior.
This figure represents the apex of quarterly net financial holdings since the BOK commenced its records in 2009.
A BOK official commented on this phenomenon, noting that, traditionally, many companies find themselves in debt due to the need for investment.
However, a remarkable increase in net profits from semiconductor exports during the first quarter has led to a surplus in funds.
Furthermore, the net financial assets of households also demonstrated growth, climbing to 79.2 trillion won in the first quarter from 67 trillion won the previous quarter.
This uptick is partly attributable to year-end bonuses and a contraction in the supply of new residential units.
Collectively, the financial assets held by households and non-profit entities totaled an impressive 6,417.1 trillion won at the close of March, representing an increase of 209.4 trillion won from three months earlier.
However, it is notable that their debts rose by 26 trillion won during the same period, reaching 2,466.8 trillion won. Consequently, the financial assets to liabilities ratio for households stands at 2.6.
Source link: Thehansindia.com.
