Half of conglomerates suffer from high debt

Nearly half of South Korea's large industrial groups are suffering from chronic financial trouble due to high levels of debt, industry data showed Sunday.  Out of 48 non-financial business groups on an antitrust watchlist, 23 posted a debt ratio of more than 200 percent on a consolidated basis as of end-2014, according to the data. Twenty one of them saw the ratio hit 200 percent for three straight years.  The debt ratios of nine conglomerates, including Dongbu Group, Hanjin Group and Daewoo Shi

July 19, 2015

Local banks reduce loans to large companies

South Korea's major banks reduced loans to large companies over the past year as they became more reluctant to lend to them amid a series of massive bankruptcies, industry data showed Sunday.  Six lenders, including industry leaders Kookmin Bank and Shinhan Bank, extended a combined 95.7 trillion won ($83.5 billion) in loans to large business at the end of June, down 8.5 percent from 104.7 trillion won a year earlier, according to the data.  In South Korea, large companies are widely recognized

July 19, 2015

ABS issuance nearly triples in H1

The issuance of asset-backed securities in South Korea nearly tripled in the first half of this year from a year ago due to a sharp rise in sales of government-led mortgage funds, the financial watchdog said Sunday.  A combined 48.2 trillion won ($42 billion) worth of ABS were issued in the January-June period, compared with 17.4 trillion won a year earlier, according to the Financial Supervisory Service.  ABS is derived from underlying assets such as car loans, home equity loans, credit card re

July 19, 2015

Regulator likely to approve Hana-KEB merger later this week

South Korea's top financial regulator is planning to give preliminary approval for the merger of two flagship banks of Hana Financial Group Inc., the country's third-largest banking group by assets, later this week, officials said Sunday.  Hana Financial has tried to merge Hana Bank and the Korea Exchange Bank since it acquired the KEB from U.S. buyout fund Lone Star in 2012. Its efforts have dragged on for years as the KEB had strongly opposed the merger until recently, citing its earlier promi

July 19, 2015

Seoul shares to move in tight range next week

South Korean stocks are likely to trade in a narrow range next week as the second-quarter earnings season kicked off on a downbeat note, analysts said Saturday.    The benchmark Korea Composite Stock Price Index closed at 2,076.79 on Friday, spiking 2.24 percent from a week earlier.  The index climbed as the Greek debt deal and the rebounding Chinese market lifted investor sentiment, which was corroborated by a landmark deal on Iran's nuclear program on Wednesday.   With uncertainties in the glo

July 19, 2015

Hyundai Heavy, Ulsan open innovation center

Hyundai Heavy Industries and the Ulsan Metropolitan Government on Wednesday launched a Creative Economy Innovation Center to support the country’s marine, shipbuilding and medical services industries. “Through the cooperation of the world’s leading shipbuilder HHI and local scholars, researchers and businessmen, I am very confident that the center will lead Ulsan and Korea’s manufacturing industry. The government will also put all our efforts in opening that road,” said President Park Geun-hye a

July 15, 2015

Parliament asked to OK extra budget in original form

South Korea's top economic policymaker asked lawmakers to approve an extra budget plan in its original form to make funds available to reduce the fallout from the Middle East Respiratory Syndrome outbreak and revive the country's growth momentum.Last week, the government submitted the 11.8 trillion-won($10.3 billion) supplementary budget to the National Assembly for approval as part of efforts to revitalize the economy struggling with slumping exports and anemic domestic demand.Speaking at the N

July 15, 2015

S. Korea logs trade surplus for 41st month in June

South Korea posted a trade surplus for the 41st month in a row in June as imports dropped at a much faster pace than exports, customs data showed Wednesday.According to the data by the Korea Customs Service, the country's trade surplus reached US$9.97 billion last month, up significantly from $6.26 billion in May and higher than $5.35 billion a year earlier.Exports contracted 2.4 percent on-year to $46.67 billion in June, while imports nosedived 13.6 percent to $36.69 billion. In June 2014, expo

July 15, 2015

S. Korea's jobless rate edges up to 3.9 pct in June

South Korea's jobless rate edged up in June as the Middle East Respiratory Syndrome outbreak caused a sharp slowdown in growth of new hirings by the service sector, a government report showed Wednesday.According to the report by Statistics Korea, the jobless rate stood at 3.9 percent last month, up from 3.8 percent in May. The number also rose 0.4 percentage point from a year earlier.The seasonally adjusted jobless rate for June was 3.9 percent, unchanged from the previous month. The national em

July 15, 2015

S. Korea's exports to Europe may fall 5.8 pct on 'Grexit'

South Korea is expected to suffer a 5.8 percent drop in its exports to Europe from the economic impact of Greece's possible exit from the eurozone, or the "Grexit," a trade agency said Sunday, although the consequences will not be as serious as the eurozone crisis in 2010."If the Grexit happens, the eurozone's economy growth will fall 1 percentage point and the South Korean won will add 13.6 percent against the euro. This will lead to a 5.8 percent drop in exports," said Korea International Trad

July 12, 2015

Six S. Korean banks make global top 100: report

Six South Korean banks made the global top 100 banks list, a Britain-based financial industry tracker said Sunday, although none of them were included in the top 50 bracket.In Asia's fourth-largest economy, KDB Financial Group, KB Financial Group, Shinhan Financial Group, Hana Financial Group, Woori Financial Group and Nonghyup Financial Group placed in the top 100, the data compiled by The Banker showed.KDB Financial outpaced other South Korean rivals at 62nd, up 16 notches from a year earlier.

July 12, 2015

Cigarette tax revenue jumps on new price policy

South Korea's cigarette tax revenue jumped in the first six months of 2015 from a year earlier on the back of the country's new tax policy that began as of January, data showed Sunday.The Ministry of Strategy and Finance said it has raked in 4.3 trillion won ($3.8 billion) from cigarette sales, up 36 percent from the 3.16 trillion won posted a year earlier.The increase is significant as the sales of cigarettes in contrast fell 28.3 percent over the cited period to 1.46 billion packets. The gover

July 12, 2015

Seoul shares up on eased Greek, Chinese woes

South Korean stocks closed 0.17 percent up as eased Greek and Chinese fears encouraged investors to buy oversold shares, analysts said. The local currency gained ground against the U.S. dollar.   The benchmark Korea Composite Stock Price Index (KOSPI) added 3.36 points to close at 2,031.17. Trading volume was moderate at 369.5 million shares worth 6.52 trillion won (US$5.77 billion), with winners beating decliners 484 to 318.   "The (South Korean) market has experienced wide fluctuations in pric

July 10, 2015

Seoul shares open higher on Greek, Chinese hopes

South Korean shares started slightly higher as Greece offered a new bailout proposal and China's stock market rebounded, analysts said.   The benchmark Korea Composite Stock Price Index (KOSPI) gained1.19 points, or 0.06 percent, to 2,029 in the first 15 minutes of trading.   The Greece government has submitted a plan for pension reform and tax hikes in return for additional bailout programs, while Chinese financial authorities have released a set of market-stabilizing measures to end the rout o

July 10, 2015

Korea's import prices continue to fall in June

Import prices in South Korea declined in June, extending their on-year fall to 34 straight months, due mainly to weaker global oil prices, data showed Friday.   In local currency terms, import prices dropped 14 percent in June from the previous year, slightly slowing from a 14.6 percent on-year drop in May, according to the preliminary data from the Bank of Korea.   The data showed that import prices of coal and oil products plunged 33.4 percent on-year in June, compared with a 31.7 percent fall

July 10, 2015

IMF cuts 2015 global growth forecast to 3.3%

The International Monetary Fund lowered its global growth forecast for 2015 to 3.3 percentThursday, citing weaker than expected economic gains in the United States and North America.The latest estimate is down from 3.5 percent growth predicted by the Washington-based fund in April. It is also below the 3.4 percent growth reached last year, a sign of challenges weighingdown the worldwide economy.The World Economic Outlook Update report showed consumer prices among advanced economies standing at z

July 9, 2015

State, firms offer W110tr stimulus

The government plans to inject about 110 trillion won ($97 billion) into export-oriented sectors in cooperation with conglomerates in a joint bid to boost the economy by revitalizing the troubled exports sector.The state-led support scheme was unveiled during the Ministry of Trade, Industry and Energy’s policy briefing on how to bolster exporters’ competitiveness to President Park Geun-hye at Cheong Wa Dae on Thursday.While the funding plan reflected the undermined corporate sentiment in the wak

July 9, 2015

Park calls for all policy tools to spur investment

President Park Geun-hye told officials on Thursday to mobilize all policy tools available to try to encourage South Korean business leaders to boost investment.She said policy tools include an 11.8 trillion won ($10.49 billion) extra budget bill, which is part of a 22 trillion won stimulus package designed to revive the faltering economy.The National Assembly has yet to approve the bill.She said increased investment and restoration of consumer confidence is the key to getting out of the tough ec

July 9, 2015

BOK cuts 2015 growth outlook to 2.8 pct

South Korea's central bank on Thursday lowered its growth forecast for this year, the second downgrade in three months, citing the fallout from the Middle East Respiratory Syndrome outbreak and sagging exports.The Bank of Korea cut its 2015 growth estimate to 2.8 percent from 3.1 percent in its latest economic update released every three months. In April, the BOK lowered the outlook to 3.1 percent from 3.4 percent.The central bank estimated the first-half growth at 2.4 percent, with private spen

July 9, 2015

Gov't unveils steps to spur investment

The government announced a package of measures Thursday to boost investment amid concerns domestic demand could slip into the doldrums due to slumping exports and the Middle East Respiratory Syndrome outbreak.The measures, which aim to spur more than 5 trillion won ($4.4 billion) of investments in tourism, venture and construction sectors, come after the government recently cut this year's growth target to 3.1 percent from 3.8 percent in the face of tough domestic and external challenges. "The g

July 9, 2015