Jeonse home rent loans soar on regulations, pandemic

Total “jeonse” rent loans supplied by commercial banks grew around 2 trillion won ($1.62 billion) for the second consecutive month, as the number of house hunters looking for two-year leases instead of purchases increased, industry data showed Tuesday.  The jeonse loan balance of the country’s five major commercial banks -- KB Kookmin, Shinhan, Woori, Hana and Nonghyup -- came to 86.25 trillion won at the end of March, up 2.28 trillion won from a month before. The figu

MarketApril 21, 2020

Stocks tank on NK leader's health rumor, oil plunge

South Korea’s stock market fluctuated as the geopolitical uncertainties triggered by the health condition of North Korean leader Kim Jong-un and historic oil price plunge sapped investor sentiment. The benchmark indexes -- main bourse Kospi and Kosdaq -- had a roller-coaster ride. Kospi sank 3 percent to its lowest in the late morning session and the loss narrowed to 1 percent in its closing. Kosdaq saw a 5.6 percent plunge at its largest, and closed 1.4 percent lower. Market bellweth

MarketApril 21, 2020

Brokerages' oil price errors could worsen investor losses

South Korean investors could face losses regarding their hedge on oil futures as local brokerages did not reflect plunging oil prices in their forecasts, according to market watchers Tuesday. A futures contract for US West Texas Intermediate crude for May delivery closed at negative $37.63 per barrel at the end of Monday trading in the US -- plunging $55.90 from the previous session’s close. The sudden collapse has put some securities firms into chaos. Kiwoom Securities suffered a techn

MarketApril 21, 2020

Coronavirus pandemic feared to accelerate population decline in S. Korea

The coronavirus pandemic could have a negative impact on births and marriages this year and is feared to accelerate population decline in South Korea, a senior finance ministry official said Tuesday. Vice Finance Minister Kim Yong-beom said in a meeting on the nation's population policy that the coronavirus outbreak has reshaped people's everyday lives, prompting people to work from home and students to take online classes. "There are worries that shocks from COVID-19 could have a negati

EconomyApril 21, 2020

BOK lends $2.1b more to banks via US currency swap

The Bank of Korea (BOK) delivered an additional $2.12 billion to local banks Tuesday under a currency swap deal with its US counterpart in a bid to stabilize the local foreign exchange market. The BOK held its fourth online auction to provide up to $4 billion in six-day debt and 84-day loans to commercial banks and state lenders. Bids undershot the central bank target of $3.5 billion in 84-day loans and $500 million in seven-day loans. No bids were placed for the six-day loans, the BOK said,

EconomyApril 21, 2020

Auto exports down 46% through mid-April amid pandemic

South Korea's exports of automobiles plunged a whopping 45.8 percent in the first 17 days of April from a year earlier, data showed Tuesday, apparently as the new coronavirus pandemic disturbed the global supply chain and weighed down demand. Outbound shipments of cars reached 48,800 units over the first 17 days of the month, falling sharply from 90,009 units posted last year, according to the data provided by the Ministry of Trade, Industry and Energy. The automobile output also slipped 19.2

MobilityApril 21, 2020

S. Korea pledges sufficient forex liquidity for virus-hit exporters, importers

South Korea‘s finance ministry said Tuesday it will continue to supply sufficient foreign-exchange liquidity to exporters and importers hit by the coronavirus pandemic. Vice Finance Minister Kim Yong-beom made the remarks at a meeting with senior executives from major exporters and importers earlier in the day, the ministry said in a statement. Kim told the meeting that the global economy is expected to take a big hit by “unprecedented large-scale shocks” from the pandemic

EconomyApril 21, 2020

Sales of derivatives-linked securities dip 32% in Q1

The issuance of derivatives-linked securities (DLS) in South Korea plummeted in the first quarter of the year amid uncertainties over the new coronavirus, data showed Tuesday. In the January-March period, sales of DLS amounted to 5.3 trillion won ($4.3 billion), down 31.7 percent from the previous quarter, according to the data from the Korea Securities Depository (KSD). The reading also marks a 17.5 percent fall from a year ago. DLS tracks the performance of interest rates, currency values

EconomyApril 21, 2020

Electronics industry gearing up for surge in demand in post-coronavirus era

South Korea’s electronics industry is gearing up for a surge in demand in the post-coronavirus era, with some experts predicting it as early as the second half of this year, industry sources said Tuesday. Experts from the semiconductor, display, telecommunications and battery sectors gathered Tuesday at an event hosted by the Korea Chamber of Commerce and Industry to discuss how to prepare for a post-coronavirus market. Attendees agreed on the need for preemptive measures to respond

TechnologyApril 21, 2020

Korean display makers likely to suffer Q1 operating loss due to virus: analysts

South Korea's two major display makers are expected to suffer an operating loss for the first quarter of the year, analysts here said Tuesday, due to the fallout from the novel coronavirus pandemic. Samsung Display Co., the display manufacturing affiliate of Samsung Electronics Co., was projected to have posted an operating loss of 464.2 billion won ($378 million) and racked up 6.3 trillion won in sales in the January-March period, according to the data by 13 local brokerage houses compiled b

IndustryApril 21, 2020

Retail investors’ buying binge will pay off in long term: analyst

Amid concerns building over risks of individual investors seeking short-term profits, a local expert said Monday that the latest buying trend will likely result in great success in the long run. “Retail investors tend to have invested in blue chips during the recent buying binge, like Samsung Electronics, SK hynix, Hyundai Motor Company as well as relatively safer products like index funds,” said Yoo Ik-sun, head of the investment strategy unit at local asset manager Hanwha Asset M

MarketApril 21, 2020

[Newsmaker] Devastating oil glut sends prices into negative

NEW YORK (AFP) -- US oil prices crashed to unprecedented lows Monday as futures in New York ended in negative territory for the first time amid a devastating supply glut that has forced traders to pay others to take the crude off their hands. With space to store oil scarce, US benchmark West Texas Intermediate for May delivery closed at -$37.63 a barrel. The futures contract for May closes Tuesday, meaning traders who buy and sell the commodity for profit needed to find someone to take physi

EconomyApril 21, 2020

S. Korean shares open lower on Wall Street losses

South Korean stocks opened lower Tuesday, tracking overnight losses on Wall Street. The benchmark Korea Composite Stock Price Index lost 16.07 points, or 0.85 percent, to 1,882.29 in the first 15 minutes of trading. The decline followed losses in the US market. The Dow Jones Industrial Average lost 2.44 percent, with the tech-heavy Nasdaq composite index declining 1.03 percent. Huh Jae-hwan, a strategist at Eugene Investment Co., said a sharp plunge in oil prices and potential poor corporate

MarketApril 21, 2020

Korea's exports sink 27% in first 20 days of April over virus pandemic

South Korea's exports sank 27 percent on year in the first 20 days of April amid the shock from the coronavirus pandemic, customs data showed Tuesday. The nation's outbound shipments dropped 26.9 percent in the April 1-20 period to $21.7 billion, according to the data from the Korea Customs Service. The daily average exports during the 20-day period also slipped 16.8 percent on-year. The data came amid growing concerns that the coronavirus pandemic is denting exports by Asia's fourth-largest

EconomyApril 21, 2020

LS Cable wins W134.3b Netherlands submarine cable project order

South Korea's top wire and cable maker, LS Cable & System, said Monday that it won a 134.3 billion won ($110 million) submarine cable project order from the Netherlands. In a regulatory filing, the company said the deal was reached with state-run TenneT on Friday (local time) to supply materials for an offshore wind power plant in the Western European country. The contract runs through the end of September 2023.    LS Cable had formed a consortium with Jan De Nul, a Belgium con

IndustryApril 20, 2020

Ssangyong Motor, union sign wage deal

SsangYong Motor and its union on Monday signed a wage deal for the year amid the rising impact of the coronavirus outbreak on the automobile industry. SsangYong workers agreed on a wage freeze as they see stable labor-management relations as key to putting the company back on track amid virus worries, the company said in a statement.    The maker of the Korando and G4 Rexton sport utility vehicles sealed a wage deal with the union for the 11th consecutive year without strikes since

MobilityApril 20, 2020

[Economy in pandemic] Is S. Korea’s stock market on recovery track?

With the COVID-19 infection curve in South Korea having slowed down in recent weeks, the local bourse is gradually recovering its momentum on the back of an influx of foreign capital. But investors still find themselves confused as the virus continues to spread in other parts of the world and authorities voice warnings against “excessive optimism.” After hitting a 52-week high at 2,255.49 points Feb. 13, the main bourse Kospi plunged to its lowest point in 11 years -- 1,439.43 --

MarketApril 20, 2020

Fashion for handicapped, Heartist collaborates with Beanpole

Samsung C&T’s fashion unit said Monday its business casual brand for the handicapped, Heartist will roll out a new line of clothes in collaboration with its other brand Beanpole, to celebrate the first anniversary of Heartist. Heartist, which was launched in April 2019, is the first fashion brand for the handicapped, introduced by a conglomerate here. Under the concept of “Fashion for All Abilities,” the brand presents business casual products specially designed for thos

ConsumerApril 20, 2020

Samsung Biologics turns profit in Q1

Samsung Biologics posted a 65.27 percent on-year increase in revenue and posted an operating profit in the first quarter of 2020, the company notified shareholders Monday.  Samsung Biologics tentatively estimates 207.2 billion won ($169 million) in revenue and 62.6 billion won in operating profit. Net profit marked 39.1 billion won. Samsung Biologics explained that the shifted composition of the biologics drug products being manufactured in its first plant, and the increased sales of th

IndustryApril 20, 2020

Medytox requests suspension to halt of Meditoxin sales

　Medytox, Korea’s largest botulinum toxin maker by market share, said Monday that it has submitted a request for suspension of execution on the Drug Ministry’s order to halt manufacturing and sales of its cash cow Meditoxin. While apologizing to customers and investors for causing concern, Medytox argued that the ministry’s order was based on dated findings, and there were no reports of Meditoxin products causing severe adverse effects in the 20 years it has been on the marke

IndustryApril 20, 2020