The Korea Herald

KEPCO inks deal to buy US solar power plant

The state-run Korea Electric Power Corp. on Sunday said it has signed a deal to buy a US solar power plant, making inroads into the US electricity market.Under the deal with Cogentrix Energy Power Management, part of the Carlyle Group LP, KEPCO will buy a 30 megawatt solar power plant in Alamosa, Colorado.The deal is estimated at $34 million.KEPCO said it will be able to generate $230 million in sales over a 26-year period by selling electricity there. The Alamosa plant started its operations in

Aug. 28, 2016

Financial sector sheds 1% of jobs this year

The number of employees in South Korea's financial industry has declined nearly 1 percent in the first six months of the year amid a protracted industrywide slump and subsequent restructuring moves, data showed Sunday.As of end-June, the number of employees at 117 major local financial companies -- including banks, and insurance, securities and card firms -- stood at 194,106, down 1,919, or 1 percent, from the end of last year, according to the data compiled by corporate researcher CEO Score.The

Aug. 28, 2016

Korea, Japan agree to resume currency swap deal

South Korea and Japan on Saturday agreed to resume a currency swap deal, which expired last year, as part of their efforts to strengthen bilateral economic cooperation amid a global slowdown and a possible US rate hike."The two countries agreed to start negotiations to reopen the currency swap deal," South Korea's Finance Minister Yoo Il-ho said after a finance ministers' meeting with his counterpart Taro Aso in Seoul."It represents the strong economic cooperation between Seoul and Tokyo amid ri

Aug. 28, 2016

Consumer sentiment reaches 8-month high

South Korea’s overall consumer sentiment reached an eight-month high in August on the back of growing expectations of an economic recovery.The Bank of Korea said Friday that the composite consumer sentiment index reached 102 last month, up from 101 in July.This marked that highest since December last year, and a second consecutive increase, the central bank data showed. A reading above 100 indicates that more households are positive about their economic future.Analysts say that Korea’s sovereign

Aug. 26, 2016

Korean stocks close lower on U.S. woes

South Korean shares closed lower Friday as investors took to the sidelines amid growing concerns over a U.S. rate hike. The local currency further gained ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index lost 5.42 points, or 0.27 percent, to 2,037.50. Trading volume was slim at 268.85 million shares worth 3.69 trillion won ($3.31 billion), with losers outnumbering gainers 431 to 367.The index opened sharply lower, tracking overnight losses on Wall Street, partly caus

Aug. 26, 2016

Fitch warns South Korea of NK, structural risks

Fitch Ratings continued to warn South Korea of geopolitical risks associated with North Korea in the light of the North’s recent submarine missile test, in addition to structural risks on changing demographics and low productivity, according to the Finance Ministry on Friday.The Fitch delegation visited Korea for its annual consultation meetings with the Finance Ministry from Wednesday-Friday this week.Although the global ratings agency gave a positive review on Korea maintaining fiscal soundnes

Aug. 26, 2016

Fitch warns South Korea of NK, structural risks

Korean shares down 0.24% in late morning trade

South Korean shares were down 0.24 percent late Friday morning as foreign investors extended their selling streak to a third consecutive session.The benchmark Korea Composite Stock Price Index lost 4.95 points to 2,037.97 as of 11:20 a.m.The index opened sharply lower following overnight losses on Wall Street. The Dow Jones Industrial Average closed 0.18 percent lower at 18,448.41 on Thursday, with the tech-laden Nasdaq also slipping 0.11 percent to 5,212.20.Foreigners offloaded a net 73.4 billi

Aug. 26, 2016

Stock loans close to 8 tln won on bullish outlook

South Korea's stock purchase on credit has hit a fresh high of nearly 8 trillion won ($ 7.2 billion) with more investors borrowing money from brokerage firms to bet on a bullish market, data showed Friday.Outstanding margin loans jumped to 7.78 trillion won as of Wednesday, the highest level of this year, according to the data compiled by the Korea Financial Investment Association and financial information provider FnGuide.The finding has added to concerns over possible damages should there be s

Aug. 26, 2016

Park visits creative economy festival

President Park Geun-hye on Friday visited a festival, designed to showcase the outcome of her "creative economy" drive, urging the public and business sectors to step up cooperation in creating jobs and fresh momentum for economic growth.The "Creative Economy Innovation Center Festival" at Seoul's Hanyang University brought together some 1,900 people, including the chiefs of the 17 creative economy innovation centers, aspiring entrepreneurs and top government officials, such as the ministers of

Aug. 26, 2016

Korean stocks open lower on Wall Street losses

South Korean shares opened sharply lower on Friday, tracking overnight losses on Wall Street.The benchmark Korea Composite Stock Price Index lost 11.57 points, or 0.57 percent, to 2,031.35 in the first 15 minutes of trading.The drop followed overnight losses on Wall Street. The Dow Jones Industrial Average closed 0.18 percent lower at 18,448.41 on Thursday, with the tech-laden Nasdaq also slipping 0.11 percent to 5,212.20.Most large caps were in negative terrain.Market behemoth Samsung Electroni

Aug. 26, 2016

OTC market turnover soars on growing investor interest

Turnover of South Korea's over-the-counter stock market has been surging this year thanks to growing investor attention amid ultra-low interest rates, a market tracker said Friday.The value of transactions on the K-OTC nearly doubled in six months, soaring to 15.7 billion won ($14.1 million) in July from 7.6 billion won in January, according to financial information provider FnGuide. The turnover reached 15.2 billion won in the first 24 days of this month.The Korea Financial Investment Associati

Aug. 26, 2016

Consumer sentiment rises to 8-month high in August

The overall sentiment of South Korean consumers hit an eight-month high this month on expectations of economic recovery, central bank data showed Friday.The composite consumer sentiment index for August came to 102, compared with 101 the previous month, according to the data from the Bank of Korea. The figure marks the highest since December.A reading above 100 means optimists outnumber pessimists.A separate index gauging the people's sentiments toward the current economic conditions came to 74

Aug. 26, 2016

Korean investment in overseas securities rises in Q2

The amount of foreign securities held by major South Korean institutions grew from a year earlier in the second quarter due mainly to a surge in South Korean investment in foreign bonds, central bank data showed Friday.As of the end of June, the value of foreign securities held by South Korea's institutional investors came to $148.6 billion, compared with $111.94 billion from the same period last year, according to data compiled by the Bank of Korea.Quarter-on-quarter, the value of foreign secur

Aug. 26, 2016

Fierce competition for Gangnam presale homes

Residential towns south of the Han River in Seoul are proving to be a magnet for investment, with planned apartment complexes coming up for presale soon. A complex in Gaepo in the Gangnam area, to be built by Hyundai Engineering and Construction, is over 100 times oversubscribed, with the first round of presales closed Wednesday, according to the Korea Financial Telecommunications & Clearings Institute and the developer. Some 6,339 people subscribed for 63 available units in “The H Honor Hills”

Aug. 25, 2016

Fierce competition for Gangnam presale homes

Korea to restrict housing supply to curb household debt

The South Korean government said Thursday that it will control the number of houses and apartments supplied in the market, and strengthen regulations on mortgages as part of efforts to contain its household debt.With the country’s household debt increasing at a fast pace on low interest rates this year, the Finance Ministry said that it will restrict the supply side of the housing market rather than the demand side to ease the debt problem, as well as housing oversupply.Financial policymakers an

Aug. 25, 2016

Korea to restrict housing supply to curb household debt

Household debt jumps 11% in Q2

South Korea's household debt jumped 11 percent from a year earlier in the second quarter despite stricter lending rules, its central bank said Thursday.The country's overall household debt climbed to 1,257.3 trillion won ($1.122 billion) in the April-June period from 1,131.5 trillion won from the same period last year, according to preliminary data from the Bank of Korea.Quarter-on-quarter, household debt, which includes credit-card spending, rose 2.7 percent, it said.Lower rates have pushed up

Aug. 25, 2016

Equity crowdfunding market gains ground in Korea

The South Korean market for so-called equity crowdfunding has been gaining momentum recently on growing investor interest amid ultra-low interest rates, industry sources said Thursday.Also referred to as crowdinvesting, equity crowdfunding is the online offer of unlisted shares and corporate bonds to a group of investors. In January, South Korea adopted the new model of raising money from the public through the Internet and social media.According to the sources, IBK Investment & Securities Co. r

Aug. 25, 2016

Equity crowdfunding market gains ground in Korea

PM renews calls for prompt passage of extra budget

Prime Minister Hwang Kyo-ahn on Thursday renewed his calls for a prompt passage of the government's extra budget plan, stressing that a further delay would complicate efforts to create jobs and reinvigorate the regional economy.Earlier this month, ruling and opposition parties agreed to put an 11 trillion-won ($9.82 billion) extra budget bill to a vote on Monday. But they failed to meet the timeline amid differences over the selection of witnesses for parliamentary hearings on the restructuring

Aug. 25, 2016

PM renews calls for prompt passage of extra budget

Decreasing propensity to consume drags down Korean economy

Data released last week showed South Korea’s households are spending less and saving more, reflecting a growing anxiety over future uncertainties which is amplified by a protracted economic downturn.According to a report by Statistics Korea, the average household consumption propensity, which refers to the ratio of consumption spending to disposable income, stood at 70.9 percent in the second quarter of this year, down 0.7 percent from the same period of last year. This figure marked the lowest

Aug. 24, 2016

Decreasing propensity to consume drags down Korean economy

Concern grows over extra budget deadlock

With political parties growing further apart over their inability to compromise on the South Korean government’s extra budget bill, the Finance Ministry is making a last-ditch effort to appeal to lawmakers before time slips away.Once again urging the conservatives and progressives to sign on its supplementary budget, Finance Minister Yoo Il-ho said Wednesday that if the country misses the “golden time” to carry out its 11 trillion won ($10 billion) extra spending plan over the next four months,

Aug. 24, 2016

Concern grows over extra budget deadlock