Bank loan delinquency ratio rises at fastest pace

South Korean banks’ loan delinquency rate rose at the fastest clip in 15 months in October due mainly to increased defaults by construction firms and shipbuilders, the financial watchdog said Monday.The overall delinquency rate of bank loans to companies and households reached 1.28 percent as of the end of October, up 0.24 percentage points from the previous month, according to the Financial Supervisory Service. The rate is measured based on loans that are overdue for more than one day.The rise

Dec. 5, 2011

Listed firms’ interest coverage ability retreats with earnings slipped

South Korean listed firms’ ability to cover their interest costs with earnings slipped in the third quarter of this year from a year ago due to lackluster performances, a report showed Monday. The average interest coverage ratio of 612 firms listed on the local main bourse came to 5.11 times in the July-September period, compared with 6.01 times posted a year earlier, according to the report by the Korea Exchange and the Korea Listed Companies Association. The ratio measures a firm’s operating p

Dec. 5, 2011

Cardif Korea offers life insurance with lower cancellation penalty

Cardif Korea, a local insurance unit of French banking giant BNP Paribas, on Monday launched a variable life insurance product with higher returns than industry norms after cancellation, even within a year of contract.“We’re launching i plus VUL through nationwide branches of Shinhan Bank today. The strong point of the product is that it guarantees more flexibility and value to customers by increasing the cash surrender value even if policyholders cancel at an early stage of contract,” the compa

Dec. 5, 2011

Foreigners lead high frequency trading

Concerns rise over greater volatility generated by high frequency trading in KoreaForeign investors dominate high frequency trading in the Korean stock market, data showed on Monday, a practice regulators say fuels volatility. According to the report by the Korea Capital Market Institute, which tracked trading patterns of KOSPI 200 futures and options products that matured in December 2010, foreign investors made up 75.6 percent of high frequency traders in the local options market and 98 percen

Dec. 5, 2011

8.39 million Koreans pay no income tax: report

Four out of every 10 Korean workers and self-employed residents did not pay taxes on their income last year as a result of increased tax credits and reductions, data showed on Monday.Of the 20.39 million people subject to taxation on their earnings in 2010, 8.39 million, or 41.1 percent, paid no income tax to the government, the National Tax Service said in a report.The figure marked an increase of 270,000 people who are exempt from income taxes from 2009, raising the issue of whether the Korean

Dec. 5, 2011

Web economy overtakes automotive sector: report

Korea’s Internet industry has surpassed automotives and electric and electronic manufacturing in size, an industry report found Monday. According to the Korea Internet Corporations Association, the Internet economy amounted to 63 trillion won ($55 billion), or 5.94 percent of the gross domestic product, in 2009.The GDP figure puts the industry ahead of electric and electronic equipment manufacturing and automobiles at 5.71 percent and 4.23 percent, respectively, according to the industry lobby r

IndustryDec. 5, 2011

Shares edge up on eurozone optimism

South Korean stocks inched up 0.36 percent on Monday as investors were optimistic about Europe’s efforts to control eurozone budgets, analysts said. The local currency climbed against the U.S. dollar.The benchmark Korea Composite Stock Price Index gained 6.86 points, to 1,922.9. Trading volume was moderate at 324.9 million shares worth 4.1 trillion won ($3.6 billion) with gainers leading losers 485 to 338.“The index got off to a strong start but the gain was limited as investors remained cautiou

Dec. 5, 2011

Card firms urged to curb issuance

Customers’ card payment ceilings likely to be slashed to reduce soaring household debtTough screenings are expected for applications for new credit cards, starting later this month, as financial authorities strengthen supervision of card firms. Customers will also likely see monthly payment ceilings on new credit cards slashed sharply compared to the average ceiling on current cards, according to financial regulators.As part of policymakers’ efforts to curb snowballing household debt, the Financ

Dec. 5, 2011

8.39 million Koreans pay no income tax: report

Four out of every 10 Korean workers and self-employed residents did not pay taxes on their income last year as a result of increased tax credits and reductions, data showed on Monday.Of the 20.39 million people subject to taxation on their earnings in 2010, 8.39 million, or 41.1 percent, paid no inc

Dec. 5, 2011

Refiners’ earnings surge on exports

Korea’s four major refiners saw more than 40 percent growth in earnings on average this year as petrochemicals exports spike despite a dim outlook for the global economy.SK Innovation, GS Caltex, S-Oil and Hyundai Oilbank were among few local corporations that enjoyed brisk third-quarter results as persistent global economic uncertainties slacken exports. Large firms’ revenue fell almost 40 percent during the three month period.The four refiners control more than 90 percent of total domestic pet

IndustryDec. 4, 2011

Seoul shares likely to gain ground this week

South Korean stocks are expected to move upward this week, as an upcoming central bank meeting and a summit in Europe drive investor expectations for more actions to tackle the eurozone crisis, analysts said. The benchmark KOSPI jumped 7.86 percent, or 139.64 points, to 1,916.04 on Friday from a week earlier, as investors scooped up risky assets after global central banks said they will lower dollar-funding costs. A bank reserve ratio cut by China and strong employment reports from U.S. private

Dec. 4, 2011

Hana Financial chief pledges job security of KEB employees

Hana Financial Group chairman Kim Seung-yu has pledged to ensure the job security of about 8,000 Korea Exchange Bank employees if the group successfully acquires the lender.During a news conference on Sunday, Kim downplayed the possibility that Hana will conduct a massive manpower restructuring after a merger.He also said the financial group will file a bank merger application with the Financial Services Commission on Monday.The application will seek the regulatory approval of Hana Financial’s r

Dec. 4, 2011

Luxembourg seeks Korean’ investment in IT sector

Luxembourg is looking for investment from Korean tech companies interested in the European online game market. “In the past, Luxembourg was known as a financial center, but now it’s turning more and more into an ICT (information, communication and technology) center,” said Romain Fouarge, information communications and technology director for Korea and Japan at the Luxembourg Ministry of Economy and Foreign Trade.Online gaming has become big business due to the combined growth of console, PC and

TechnologyDec. 4, 2011