Seoul shares take breather after hitting yearly high

South Korean stocks took a breather Wednesday after hitting a yearly high the day before, closing flat from net selling by institutions and private investors, analysts said. The local currency rose against the U.S. dollar. Starting the day in negative territory, the benchmark Korea Composite Stock Price Index finished at 2,028.32, down a marginal 0.03 percent, or 0.61 point, from the previous trading session. Tuesday’s closing number of 2,028.93 was the highest for the country’s main bourse this

July 23, 2014

Average dividend yield for top business groups significantly low

The dividend yield ratio of South Korea’s top 10 business groups averaged 0.8 percent last year, delivering even less than interest on bank deposits, industry data showed Wednesday.The 92 affiliates of the country’s top 10 conglomerates paid 7.29 trillion won ($7.13 billion) in dividends in fiscal 2013, posting a 0.82 percent dividend yield ratio, according to Chaebul.com, which tracks the country’s conglomerates. The dividend yield ratio, a percentage of the share price a company returns to inv

July 23, 2014

Government, businesses differ on cash reserve tax

Finance Minister Choi Kyung-hwan and the nation’s business leaders met on Tuesday, agreeing to work together in boosting investment and alleviating government regulations.However, tension lingered as the two parties remained at odds on Choi’s plans to impose taxes on excessive corporate cash reserves. Local conglomerates, which have recently been stockpiling cash to prepare for future risks, are vehemently opposed. “In order to stabilize the economy, it is crucial that the business circles step

July 22, 2014

Seoul shares hit yearly high on policymakers’ growth pledge

South Korean stocks ended at a yearly high Tuesday, bolstered by market expectations that economic policymakers are focused on fueling economic growth. The local currency rose against the U.S. dollar. Starting the day in positive territory, the benchmark Korea Composite Stock Price Index finished at 2,028.93, up 0.52 percent, or 10.43 points, from Monday’s close, brushing off geopolitical concerns such as the downing of a passenger plane in the Ukraine and the armed conflict in the Middle East. 

July 22, 2014

Large-cap stocks tight-fisted in dividend payouts: data

South Korea’s large-cap stocks lag behind their smaller local rivals in terms of both dividend payout ratio and dividend yield ratio despite their huge cash reserves, data showed on Tuesday.SK Telecom Co. and KT&G Corp. were the only large-cap shares among the 41 local stocks whose dividend yield ratios topped 3 percent for the third consecutive year, according to data compiled by Korea Exchange.SK Telecom, the country’s top mobile operator, posted an average dividend yield ratio of 4.83 percent

July 22, 2014

Foreign direct investment to Korea jumps 30% in H1

New foreign direct investment pledged to South Korea surged significantly from a year earlier in the first half on a large increase in fresh investment pledges from China, the government said Tuesday.In the first six months of the year, the amount of new FDI pledged to the country came to $10.33 billion, up 29.2 percent from the same period last year, according to the Ministry of Trade, Industry and Energy. The figure marks the highest-ever amount for the first half.The amount of new FDI that ar

July 22, 2014

Korean households’ financial investments remain low: data

South Korean households’ financial investments lag far behind those of the United States as they focus more on property and bank deposits, data showed Monday.Cash and bank deposits accounted for a large 45.5 percent of South Korean households’ financial assets in 2013, compared to 12.5 percent for the U.S., according to the data compiled by the Korea Financial Investment Association.The portion of their financial investments such as stocks and bonds stood at 25 percent last year, with the compar

July 21, 2014

Seoul shares dip as institutions offload

South Korean stocks dipped for the second session in a row Monday as institutions offloaded shares amid worries over second-quarter earnings reports. The local currency rose against the U.S. dollar. The benchmark Korea Composite Stock Price Index started the day on a positive note and rose to as high as 2,030.61 during the trading session. It later lost ground on steadfast selling by institutions that caused the market to settle at 2,018.50, down a slight 0.05 percent, or 0.92 points, from Frida

July 21, 2014

Seoul, Beijing see progress in latest round of FTA talks

South Korea and China have made a meaningful breakthrough in their latest round of negotiations for a bilateral free trade agreement after agreeing on how to open their respective service and investment markets, the government said Friday.“Regarding the service and investment sectors, we reached an agreement on the principles of market liberalization,” the Ministry of Trade, Industry and Energy said in a press release.The 12th round of FTA talks between Seoul and Beijing was held in Daegu from M

July 18, 2014

Seoul shares down, won falls on increased geopolitical risks

South Korean stocks closed lower on Friday as investors, concerned over rising geopolitical risks following the crash of a Malaysia Airlines jet over Ukraine, flocked to safer assets, analysts said. The Korean won also fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index fell 1.48 points, or 0.07 percent, to 2,019.42, retreating from the highest closing of the year in the previous session. The index fell to as low as 2,006.01 at one point but pared losses in late trading.

July 18, 2014

Seoul shares hit yearly high, won pares gains

South Korean stocks advanced to their highest level this year on Thursday, fueled by growing speculation over a rate cut in Asia’s fourth-largest economy and sound economic data from the U.S., analysts said Thursday. The Korean won also rose against the U.S. dollar, snapping its two-day loss.The benchmark Korea Composite Stock Price Index rose 7.42 points, or 0.37 percent, to 2,020.90, the highest closing of the year. The index rose to as high as 2,025.41 points at one point, but pared gains in

July 17, 2014

Government will announce opening of rice market Friday

The South Korean government will officially announce Friday its plan to liberalize the rice market, officials said on Thursday. Lee Dong-phil, minister of the Ministry of Agriculture, Food and Rural Affairs, will make the announcement following an economic ministers’ meeting. But the minister reportedly will not propose detailed tariff rates on rice imports, as it require the approval of other members of the World Trade Organization, according to officials. The government has long been expected

July 17, 2014

Korea's biz community opposes gov't move to tax cash reserves

South Korea's business community on Thursday protested proposals by the government to tax corporate cash reserves, stressing that such actions will only hurt investment and not benefit the economy.The Federation of Korean Industries (FKI), which represents the interests of the country's large family-run conglomerates known as chaebol, said companies need cash reserves to deal with potential uncertainties in the future and that most of the money set aside have already been earmarked for use to bu

July 17, 2014

Lawmaker proposes M&A incentives to restructure securities industry

South Korea should encourage local brokerage houses to seek more mergers and acquisitions (M&A) by offering incentives and foster investment banks with diversified asset businesses in a bid to reorganize the faltering financial market, a ruling party lawmaker said Thursday.South Korean brokerage houses have been in a prolonged slump due to decreasing brokerage fees stemming from slow trading on the stock market. Out of 62 brokerage houses, about 10 have been put up for sale in the local M&A mark

July 17, 2014

Seoul shares end flat

South Korean shares finished almost flat on Wednesday as Federal Reserve Chair Janet Yellen expressed worries over overvalued stocks and hinted at an earlier-than-expected rate hike while concerns over corporate earnings continued at home, analysts said. The local currency fell to its lowest in over two months against the U.S. dollar.The benchmark Korea Composite Stock Price Index rose 0.76 point to 2,013.48 after swerving in and out of negative terrain. Trading volume was moderate at 311 millio

July 16, 2014

Korea’s jobless rate stands at 3.5% in June

South Korea’s jobless rate inched down in June from a month earlier, but job creation slowed for the fourth straight month, raising concerns that employment conditions are getting tough for many job seekers, a government report showed Wednesday.According to the report by Statistics Korea, the jobless rate stood at 3.5 percent last month, down from 3.6 percent tallied in May. The seasonally adjusted jobless rate also fell to 3.6 percent from the previous month’s 3.7 percent. The number of employe

July 16, 2014

Korea not to push for extra budget this year: minister

South Korea will not seek an extra budget this year, the new finance minister said Wednesday, adding that it will instead push for other fiscal alternatives to bolster economic recovery, including expanding its budget spending assigned for next year.Speaking to reporters after his inauguration, Choi Kyung-hwan also said he will downgrade the country's growth outlook for this year and draw up a policy management plan based on the revised assessment of the latest economic situations.Criticizing lo

July 16, 2014

S. Korea's jobless rate stands at 3.5 percent in June

South Korea's jobless rate inched down in June from a month earlier, but job creation slowed for the fourth straight month, raising concerns that employment conditions are getting tough for many job seekers, a government report showed Wednesday.According to the report by Statistics Korea, the jobless rate stood at 3.5 percent last month, down from 3.6 percent tallied in May. The seasonally adjusted jobless rate also fell to 3.6 percent from the previous month's 3.7 percent. The number of employe

July 16, 2014