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KOREA REPORT - JULY, 2021.
TOPICS.
Social
distancing measures in the greater Seoul area was raised to highest in the
four-tier system starting 12th for two weeks, as
SKorea¡¯s daily infection tally had spiked over 1,000 in the past few days.
Private gatherings of more than four people are banned. After 6 pm, gatherings
are limited to two people, even for the fully vaccinated.
South
and North Korea reopened direct communication lines as of 10 am on 27th, with President Moon and Kim Jong-un agreeing to restore mutual
trust and improve soured inter-Korean relationship. The hotline restoration
came after 13 months of collapsed diplomacy between two Koreas.
Fitch
Ratings said on 22nd it has maintained SKorea's credit rating at
"AA-" with a stable outlook. "Korea's
rating balances robust external finances, resilient macroeconomic performance
and modest fiscal headroom against geopolitical risks related to NK and
medium-term structural challenges from ageing population. The strong economic
recovery, underpinned by the government's effective management of the
coronavirus pandemic and dynamic export sector, should continue to support
Korea's credit metrics in the near term," Fitch said.
SKorea's trade
surplus came to $1.76 bil in July, marking 15th consecutive month of
surplus. Exports jumped 29.6% on-year to record high of $55.4 bil, extending
gains to a ninth consecutive month on strong auto and chip sales. Exports in
first seven months of 2021 came to $358.7 bil, also setting a fresh high.
Imports climbed 38.2% to $53.6 bil.
Korea
Gas signed an agreement with Qatar to purchase additional 2 mil metric tons of
liquefied natural gas for 20 years starting from 2025, the Ministry of Trade, Industry and Energy said on 12th. Qatar
supplies 9 mil tons of LNG to Korea annually through multiple long-term deals
with Kogas.
Korean ¡®Big 3¡¯ achieved 84% of their order goal
year-to-date. KSOE has been awarded 165 vessels including two offshore plants
worth KW15.2 bil so far this year, accomplishing 102% of its 2021 order target
($14.9 bil). As for KSOE, its backlog was worth KW25.3 tril, up by 16.2%
compared to KW21.763 tril seen at the end of 2020. SHI has been awarded 51
newbuilds comprised of 38 container vessels, seven crude oil carriers, six LNG
carriers, etc, so far this year, reaching 71% of its 2021 order goal ($9.1 bil). Given
the rising in ship orders and scheduled LNGC orders from Qatar project, SHI has
raised its 2021 order target from $7.8 bil to $9.1 bil. Based on the original
goal, SHI¡¯s target accomplishment rate is 91%. DSME has been awarded 40
newbuilds worth $6.13 bil, accomplishing 80% of its 2021 order target ($7.7 bil).
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