Banks' household loans grow at slower pace in Oct. amid tight lending rules

South Korean banks' loans to households grew at a slower pace in October, central bank data showed Wednesday, amid the government's tightened regulations on lending amid worries about soaring household debt. Banks' household loans stood at 1,057.9 trillion won ($897.3 billion) as of end-October, up 5.2 trillion won from a month earlier, according to the data by the Bank of Korea. The on-month growth slowed from a 6.4 trillion won rise in September. It is also much smaller than an increase of 1

EconomyNov. 10, 2021

SK Telecom Q3 net profit up 88% on equity gain, 5G growth

SK Telecom Co., South Korea's top wireless carrier, said Wednesday its third-quarter net income rose 88 percent on-year thanks to growth in 5G users and equity gains. Net income stood at 736.5 billion won ($623.3 million) in the July-September period on a consolidated basis, compared with 391.8 billion won a year earlier, according to a regulatory filing. Operating income rose 11.71 percent to 400 billion won over the same period, while sales increased 4.99 percent to 4.96 trillion won.The tel

IndustryNov. 10, 2021

Bond issuance in S. Korea jumps in Oct.

Bond issuance in South Korea rose sharply in October from the previous month due to increased debt sales by financial firms and the government, data showed Wednesday. The value of bonds sold in Asia's fourth-largest economy stood at 65.4 trillion won ($55.4 billion) last month, up 8.4 trillion won from a month earlier, according to the data from the Korea Financial Investment Association. Last month's increase compares with a 9.6 trillion-won on-month plunge recorded in September. Sales of fi

EconomyNov. 10, 2021

BOK board members say inclusion of housing costs will heighten inflation

The members of the South Korean central bank's rate-setting board have voiced concerns inflation could be higher than current levels if housing costs are taken into consideration, minutes from the latest policy meeting showed Wednesday. The Bank of Korea issued the minutes of the Oct. 12 meeting when its seven-member board held its key policy rate unchanged at 0.75 percent. "In August, the consumer prices in the US grew 5.3 percent, much higher than a 2.6 percent rise in our country, whic

EconomyNov. 10, 2021

[Graphic News] S. Korea‘s seaport cargo up 8.1% in Q3 amid global rebound

　Cargo processed at South Korean seaports advanced 8.1 percent in the third quarter of this year as trade gained traction amid the global economic recovery from the pandemic, the Oceans Ministry said. 　Cargo handled at the country’s ports came to 393.03 million tons during the July-September period, up from 363.53 million tons a year earlier, according to the data by the Ministry of Oceans and Fisheries. 　Handling of export-import cargo surged 8.6 percent on-year to 338.85 million tons

BusinessNov. 10, 2021

S. Korean multiplexes still suffer from pandemic-inflicted losses in Q3

South Korean multiplex operators suffered huge losses in the third quarter amid the protracted COVID-19 pandemic, but their bottomline is expected to improve thanks to the nationwide move to return to normalcy, financial data showed Wednesday. CJ CGV, the No. 1 multiplex operator under the wing of entertainment giant CJ Group, said its operating loss reached 77.5 billion won ($65.7 million) over the July-September period, narrowing from an operating deficit of 96.8 billion won a year ago. Its

EconomyNov. 10, 2021

S. Korean exports to India drop 3.5% from pre-pandemic level

South Korea's exports to India shrank 3.5 percent in the first nine months of this year from 2019 due to import controls and a delay in the recovery of the emerging economy, a top business lobby said Wednesday. Overseas shipments to Asia's third-largest economy came to $11.41 billion in the January-September period, compared with $11.82 billion during the same period two years earlier, according to the Federation of Korean Industries (FKI). The decline contrasts with a 16.5 percent on-year sur

EconomyNov. 10, 2021

Job growth extended to 8th month in Oct. amid economic recovery

South Korea reported job additions for the eighth straight month in October in the latest sign the country's economic recovery has continued despite the fourth wave of the pandemic, data showed Wednesday. The number of employed people reached 27.74 million last month, 652,000 more than a year earlier, according to the data compiled by Statistics Korea. The reading was lower than an on-year increase of 671,000 in September when South Korea reported the largest job additions in more than seven y

EconomyNov. 10, 2021

Seoul stocks open lower amid inflation concerns

South Korean stocks opened lower Wednesday, tracking losses on Wall Street that stemmed from rising inflation pressure. The benchmark Korea Composite Stock Price Index (Kospi) decreased 11.3 points, or 0.38 percent, to 2,986.06 in the first 15 minutes of trading. Stocks came off to a lackluster start, as investors are worried the rising inflation pressure may advance the Federal Reserve's tapering timeline. Overnight, the tech-heavy Nasdaq composite lost 0.6 percent, and the Dow Jones Industr

MarketNov. 10, 2021

Foreigners turn net sellers of S. Korean stocks in October

Foreign investors turned net sellers of South Korean stocks in October and their net investment in local bonds also shrank, data showed Wednesday. Foreigners sold a net 3.34 trillion won ($2.84 billion) worth of local stocks last month, compared with their net purchase valued at 2.51 trillion won in September, according to the data from the Financial Supervisory Service (FSS). As of end-October, foreigners held 742.17 trillion won worth of local stocks, down 27 trillion won from a month earlie

MarketNov. 10, 2021

1 in 10 SMEs seek buyers as heirs refuse to inherit: survey

One out of 10 small and midsize company owners are selling their firms because their children are refusing to take over the family business, preferring a cash inheritance by selling the companies their parents built, a survey showed Tuesday. According to Korea M&A Exchange, a platform that mediates buyers and sellers of small and medium-sized enterprises, of the 5,481 business owners looking for buyers, 515 said they were looking for new owners to take over their firms as their children di

MarketNov. 9, 2021

Samsung, SK withhold sensitive client info from US data submission

Samsung Electronics and SK hynix on Tuesday confirmed their submission of chip supply chain data to the US Commerce Department, but stressed no sensitive client data was included. “(Samsung) submitted its response today, in accordance with the guideline of the Department of Commerce,” the world’s largest producer of memory chips said in a statement. “Due to contractual obligations and after consultation with the department, no information on customers was disclosed. SK

TechnologyNov. 9, 2021

China says it is in talks with S. Korea over urea water solution

China has been proactively consulting with South Korea to help ease its supply shortage of urea water solution needed in diesel vehicles, Beijing's foreign ministry said Tuesday. South Korea has been grappling with a shortage of urea water solution in recent weeks as Beijing last month tightened exports of urea and other raw materials amid a coal supply shortage. Coal is the main feedstock for urea. "China highly appreciates South Korea's demand for (urea) and has been proactively negotia

IndustryNov. 9, 2021

[Newsmaker] [KH Explains] Korea’s urea crisis

The sense of crisis is deepening in South Korea, as an acute shortage of a chemical called urea threatens to disrupt businesses across a vast spectrum from construction to retail.  Government officials are mobilizing diplomacy to secure urea supplies from overseas, but no immediate solution is in sight.  The Korea Herald looks at what is causing this sudden urea crunch and why this is such a hard problem to solve. 1. What is urea, anyway? Urea is a type of nitrogen made mainly of

IndustryNov. 9, 2021

Seoul stocks inch up on institutional buying

South Korean stocks edged up Tuesday after a choppy session, led by institutional buying. The Korean won rose against the US dollar. The benchmark Korea Composite Stock Price Index (Kospi) added 2.26 points, or 0.08 percent, to 2,962.46 points. Trading volume was moderate at about 699 million shares worth some 9.6 trillion won ($8.1 billion), with gainers outnumbering losers 540 to 317. Institutions bought a net 274 billion won, while foreigners sold 138 billion won. Retail investors offloade

MarketNov. 9, 2021

[Hydrogen Korea] ‘Hydrogen steel’ is hailed as next big thing. Here’s what’s the hype is all about

Steel emits less carbon than diapers per ton of production. Due to its staggering size of production, however, steel is responsible for roughly 8 percent of the world’s carbon emissions and has been blamed as the main polluter driving up the planet’s temperature. Posco, the South Korean steelmaker, was the country’s greatest emitter of carbon last year. It discharged more carbon than it was allowed to by regulations, and even accrued debt worth 78.6 billion won ($66.4 mil

IndustryNov. 9, 2021

Korea-US business leaders call for trade secret protection amid supply chain jitters

Business leaders in South Korea and the US have called for the protection of confidential business information and urged to ensure the autonomy of the private sector as the post-COVID global supply chain is being realigned. During the 33rd Plenary Meeting of Korea-US & US-KOREA Business Councils on Tuesday, an event jointly held by the Federation of Korean Industries and the US Chamber of Commerce, issues such as bilateral relations, climate change and building a resilient global supply cha

IndustryNov. 9, 2021

Financial watchdog closely monitoring steeply rising loan rates

South Korea's financial watchdog is closely monitoring the recent fast-rising interest rates banks impose on loans, its head said Tuesday, amid the government's beefed-up efforts to tighten regulations on household borrowing. Jeong Eun-bo, chief of the Financial Supervisory Service (FSS), made the remarks amid complaints that some top-tier banks are imposing higher interest rates on loans than cooperative banks, an unusual reversal of borrowing costs. "Interest rates are determined by the

EconomyNov. 9, 2021

Citigroup’s retail closure in Korea to cost max W1.8tr: reports

The US-based global banking giant Citigroup will reportedly spend up to $1.5 billion, or 1.8 trillion won, on the withdrawal of its retail business in South Korea, according to news reports Tuesday. The group said in a regulatory filing that its expenditure on severance pay for employees at the Korean subsidiary’s retail banking operations will range between $1.2 billion and $1.5 billion. It will pay the envisioned personnel costs in phases by the end of next year, the Wall Street Jour

MarketNov. 9, 2021

Shinsegae Q3 net soars on department store biz growth

South Korea's No. 2 retailer Shinsegae Inc. said Tuesday that its third-quarter net income steeply increased as its department store business got a boost from pent-up demand amid the extended coronavirus pandemic. Net income came to 188.9 billion won ($160.3 million) on a consolidated basis in the July-September period, sharply up from a profit of 858 million won a year ago, according to a corporate regulatory filing. Operating income rose 307.1 percent on-year to 102.4 billion won, and sales

IndustryNov. 9, 2021