FSC to allow financial firms to invest in nonprofit affiliates

South Korea’s financial regulator said Thursday it will submit a bill that would allow financial firms to invest in their non-profit affiliates, a move to loosen rules following a controversy over the banning of a local bank from funding its affiliated high school. The Financial Services Commission unveiled the bill, which excludes financial firms’ non-profit entities from those banned from transferring assets within firms under the same ownership.The bill is set for a 40-day public comment peri

Jan. 31, 2013

Hyundai gears to take bigger slice of Euro car market

Hyundai Motor Group said Thursday it would step up efforts to take a bigger slice of the sales pie in Europe. The market is widely expected see a silver lining of recovery in car sales as early as 2014 after sluggish sales for more than a decade. “Carmakers have long waited to secure an earlier edge in Europe after the prolonged recession there. This year would be the year for them to specify their full-fledged efforts for next year,” said Park Hong-jae, executive vice president and chief of Hyu

IndustryJan. 31, 2013

Shares slip on losses by banks and insurers

South Korean stocks ended 0.13 percent lower on Thursday mainly due to losses in banks and insurers. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index fell 2.49 points to 1,961.94. Trading volume was moderate at 394.3 million shares worth 4.4 trillion won ($4 billion), with decliners outnumbering gainers 445 to 370.“Basically, we didn’t have much good news from abroad. There were concerns over U.S. growth as well as the Italian stock market’s sharp f

Jan. 31, 2013

Number of licensed money lenders halves in 5 years

The number of licensed money lenders in South Korea has halved in the last five years, largely due to worsening business conditions, industry data showed Thursday. The number of money lenders registered with municipalities reached 9,170 as of last Friday, down 49.6 percent from 18,500 tallied in 2007, according to the data by the Consumer Loan Finance Association. The sharp decline came as local money lenders have been facing difficulties in running their businesses as the financial authorities

Jan. 31, 2013

Korea Exchange still under state control

The nation’s main bourse has not been excluded from the yearly list of public agencies, the Ministry of Finance announced Thursday.In its unveiling of the 2013 list for public agencies, the Finance Ministry said the Korea Exchange will still be placed under state control this year. The government has “no stake” in the bourse.While the ministry under the Lee Myung-bak administration designated it as a public agency in 2009, there has been growing criticism as no such case exists in financial mark

Jan. 31, 2013

GS Homeshopping posts record-high profit

GS Homeshopping, the nation’s No. 2 homeshopping outlet, on Thursday said it achieved a record-high profit in the fourth quarter on the back of improved sales margins. The Seoul-based company’s quarterly operating profit in the October-December 2012 period rose by over 80 percent from the same period the previous year to reach 50.8 billion won ($46.6 million), while sales rose by more than 10 percent to 818.2 billion won. Most of the sales appeared to be coming from fashion items, according to E

IndustryJan. 31, 2013

SKT banned from receiving new customers

The 20-day business suspension for SK Telecom, the country’s top mobile carrier, began on Thursday. The company is banned from receiving new customers from Jan. 31 to Feb. 21. SKT is also prohibited from accepting subscribers of its competitors ― KT and LG Uplus ― during the period.The business suspension, as well as fines, was given to the nation’s three telecoms by the Korea Communications Commission in response to massive illegal subsidies in the latter half of last year.Without the option of

IndustryJan. 31, 2013

SK chairman’s sentence jars corporate sector

The four-year sentence handed down to the SK chairman on Thursday sent jitters through the local corporate sector, particularly among the conglomerates, as it signaled that Korea was ready to clamp down on irregularities at all costs. With the sentence, Chey Tae-won was immediately put behind bars, which added to the shock that SK along with the rest of the corporate sector was feeling, industry watchers said. The Seoul Central District Court jailed Chey for embezzlement of nearly 50 billion won

IndustryJan. 31, 2013

Hyundai Mobis net profit jumps 17%

Hyundai Mobis Co., South Korea’s leading auto parts maker, said Thursday that its net profit jumped 17 percent last year from a year earlier on increased sales.Net profit reached 3.54 trillion won ($3.25 billion) last year, compared with a profit of 3.03 trillion won a year earlier, the company said in a regulatory filing.Sales also spiked 17 percent on-year to 30.79 trillion won over the cited period, and operating income also surged 10.2 percent to 2.91 trillion won, it said.The auto parts mak

IndustryJan. 31, 2013

Hyundai Steel’s sales and profits fall

Hyundai Steel, the nation’s second-largest steel manufacturer, saw a decrease in its sales and operating profits last year, while its net profit grew.In its annual regulatory filing on Thursday, the company said that it recorded 14.1 trillion won ($13 billion) in sales last year, 870.8 billion won in operating profit and 791.4 billion won in net profit.The sales and operating profits fell by 7.4 percent and 31.9 percent respectively on-year, but the net profit saw a 7.6 percent rise, officials s

IndustryJan. 31, 2013

Samsung Electro-Mechanics profit up 26% in 2012

Samsung Electro-Mechanics Co., a South Korean industrial parts maker, said Thursday its net profit jumped 26.1 percent last year on the back of growing demand for mobile components.The company’s annual net profit reached 441 billion won ($404.4 million) in 2012, compared with 349.5 billion won in the previous year, the company said in a regulatory filing.Revenue climbed 31.2 percent on-year to 7.9 trillion won last year, while operating profit more than doubled to 580.5 billion won in the cited

IndustryJan. 31, 2013

Samsung Heavy 2012 net slips 6.4%

Samsung Heavy Industries Co., a South Korean shipbuilder, said Wednesday that its earnings sank 6.4 percent in 2012 from a year earlier as it set aside reserves against compensation for damage caused by the country’s largest oil spill.Net profit reached 796 billion won ($734 million) last year, compared with 851 billion won reported a year earlier, the company said in a regulatory filing.Sales gained 8.2 percent on-year to reach 14.49 trillion won in 2012, and operating income surged 11.4 percen

IndustryJan. 31, 2013

Korea to expand renewable energy’s role in power supply

Korea’s dependency rate on renewable energy sources in total electricity supply is likely to rise to 12 percent by 2027, the Ministry of Knowledge Economy seid on Thursday. In the first National Energy Basic Plan for 2008 to 2030, the energy policy master plan, the portion of electricity from renewable energy sources to the total supply by 2027 was put at 7 percent.The new target for renewable energy sources came in a draft of the 6th Basic Plan for Long-Term Electricity Supply and Demand for 20

Jan. 31, 2013

Seoul shares slip 0.13 pct on financials

South Korean stocks ended 0.13 percent lower on Thursday mainly due to losses in banks and insurers. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) fell 2.49 points to 1,961.94. Trading volume was moderate at 394.3 million shares worth 4.4 trillion won (US$4 billion), with decliners outnumbering gainers 445 to 370."Basically, we didn't have much good news from abroad. There were concerns over U.S. growth as well as the Italian stock market

Jan. 31, 2013

Seoul share down 0.22 pct in late-morning trade

South Korean stocks traded 0.22 percent lower late Thursday morning due to losses in shares of major banking groups and technology firms, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) fell 4.36 points to 1,960.07 as of 11:20 a.m.Financials led the decline, with Shinhan Financial slumping 3.34 percent. Market bellwether Samsung Electronics also slipped 0.21 percent.Automakers limited losses, with No. 2 carmaker Kia Motors adding 2.77 percent.The local currency was changing

Jan. 31, 2013

Seoul shares open lower on U.S. losses

South Korean stocks started lower on Thursday, tracking overnight losses in the U.S. stock market, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) slipped 0.98 points, or 0.05 percent, to 1,963.45 in the first 15 minutes of trading.Financials led the loss with KB Financial and Shinhan Financial falling 2.89 percent and 2.98 percent, respectively.Samsung Electronics, the country's top market cap, also lost 0.14 percent.The local currency was trading at 1,087.25 won against t

Jan. 31, 2013