South Korea economy showing positive signs in capex, exports: minister

[SEJONG] South Korea's economy is showing positive signs of growth in exports and capital investment, the country's second vice-minister said on Monday, although consumption is still sluggish.

"There are some in the media who are pessimistic about our economy, but I don't think we are headed for dire straits," Song Eon Seog told a press conference at the ministry's headquarters in Sejong, south of Seoul. "Growth in private consumption is slightly sluggish, but we are picking up positive signals from capital investment and exports."

Mr Song also said initial market turbulence after US President Donald Trump took office has "calmed considerably" in South Korea.

Regarding the ministry's announcement earlier in the day about an additional offering of 50-year treasury bonds in March, the vice-finance minister said the government had decided to issue the bonds after much demand from the market.

"We will have to look at market demand, of course, but going forward I believe we will head towards increasing issuances for long-term treasury bonds like 20-year, 30-year and 50-year,"said Mr Song. "Our yield curve is very flat right now. We will make our decisions in consideration of the yield curve, so that it normalises."

The government sold off its first 50-year bonds, the nation's longest-ever maturity, in October 2016 at 1.574 per cent.

REUTERS