KB Asset wins nod for investment in China

HONG KONG (Yonhap News) ― Korea’s KB Asset Management Co. said Monday it has obtained approval from Chinese authorities to invest up to $100 million in local securities, gaining greater access to one of the world’s most rapidly growing stock markets.The approval, granted by China’s State Administration of Foreign Exchange (SAFE) last week, will allow KB Asset Management to launch a collective inve

IndustryJan. 24, 2011

Korea confirms additional FMD case

Korea reported an additional case of foot-and-mouth disease (FMD) in the central part of the country Monday, in the midst of nationwide vaccination and quarantine efforts.The farm ministry said some cattle at a farm in Mungyeong, North Gyeongsang Province, about 220 kilometers southeast of Seoul, tested positive for the highly contagious animal disease after animals started showing symptoms over t

Jan. 24, 2011

Seoul shares up on institutional buying

Korean stocks closed 0.59 percent higher on Monday as institutional investors hunted for bargains, analysts said. The local currency rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) gained 12.24 points to 2,082.16. Trading volume was moderate at 335.1 million shares worth 6.01 trillion won ($5.37 billion), but losers outnumbered gainers 412 to 396.“Institutional

Jan. 24, 2011

Only half of Korean firms succeed in China: poll

HONG KONG (Yonhap News) ― Only about half of Korean companies operating in China have turned out to be successful, despite their rush into the world’s second-largest economy, a poll showed Sunday.According to the survey on 212 Korean firms, taken by the Korea International Trade Association’s (KITA) Shanghai office, 55.7 percent of the firms assessed their business in China as “successful.” Among

Jan. 24, 2011

Banks’ fund raising jumps due to deposit growth

Korean banks raised more funds last year than 2009 as risk-averse investors piled into lenders’ savings deposits, the financial regulator said Monday.Eighteen local banks’ fund raising through deposits and debt issuance expanded by a net 35.5 trillion won ($31.7 billion) last year, bringing their outstanding funds to 1,161.4 trillion won as of the end of December, the Financial Supervisory Service

Jan. 24, 2011

Watchdog launches sweeping probe on firms

40 large firms and suppliers face investigation over price collusion, unfair trade, abuse of market powerThe Fair Trade Commission is conducting an extensive investigation into about 40 large firms and its suppliers to root out business malpractices including price collusion and abuse of market power, officials said Monday. The antitrust regulator launched the largest-ever probe into their pricing

Jan. 24, 2011

Citi picks Korea, Taiwan stocks amid inflation

Citigroup Inc. recommended stocks in Korea, Taiwan and Hong Kong as manufacturing companies gain in an inflationary environment amid global economic growth.“Higher inflation and higher rates benefit growth- sensitive markets, such as Korea and Taiwan and general asset plays like Hong Kong,” according to a report by Citigroup analysts led by Markus Rosgen. “Inflation shifts profits from consumption

IndustryJan. 24, 2011

Apollo-led group bidding for Sara Lee

Sara Lee Corp. received a takeover bid from Apollo Global Management LLC, Bain Capital LLC and TPG Capital that is higher than the food company’s current share price of $18.70, said three people with knowledge of the matter. The offer gets close to the $20 a share that Sara Lee’s board is seeking, said one of the people, who declined to be identified because the process is private. JBS SA, the Bra

IndustryJan. 24, 2011

Australia producer prices rise in Q4

Prices paid to Australian producers rose less than forecast in the fourth quarter, recording the smallest increase in a year as a stronger currency lowered the cost of imports. The producer prices index advanced 0.1 percent in the October-December period from the prior quarter, when it gained 1.3 percent, the Bureau of Statistics said in Sydney Monday. The median estimate of 19 economists surveyed

IndustryJan. 24, 2011

Online retailers wary of tax on discount sales

Gmarket face 16.9 billion won in back taxes on underreported revenueOnline retailers are concerned about possible taxation on their discount sales after state auditors last week ordered Gmarket to pay 16.9 billion won ($15.12 million) in back taxes on underreported revenue. The Board of Audit and Inspection judged on Thursday that the top online marketplace operator evaded value added taxes by exc

Jan. 24, 2011

BOK may upgrade its 2011 growth outlook

 South Korea's central bank said Monday that the local economy is likely to surpass its long-term growth trend this year, raising speculation that the bank may upgrade its growth outlook.   The Bank of Korea (BOK) earlier forecast Asia's fourth-largest economy to grow 4.5 percent this year while the government is seeking to target a 5 percent expansion.   "The economic expansion will likely hover

Jan. 24, 2011

Seoul's corporate watchdog expands probe into business malpractice

 South Korea's anti-trust watchdog is investigating dozens of local companies for their possible involvement in business malpractice that could result in unusual price hikes in the market, government officials said Monday.   The investigation comes on the heels of a separate probe launched by the Fair Trade Commission (FTC) on Jan. 10 into price rigging and other inflation-causing activities in th

Jan. 24, 2011

Bank loan default rate hits 12-month low in Dec.

South Korean banks saw their loan default rates fall to the lowest level in 12 months in December following their enhanced efforts to clear soured loans ahead of year-end book closings, the financial regulator said Monday.   Loans overdue by one day or more reached 0.91 percent, or 9 trillion won ($8 billion), of the total lending held by 18 local banks as of the end of December, sharply down from

Jan. 24, 2011