South Korean shares open higher after ECB measures

Seoul share prices started higher on Friday after investors took comfort from European Central Bank‘s stronger-than-expected monetary easing measures. The benchmark Korea Composite Stock Price Index added 0.84 point, or 0.04 percent, to 1,970.17 in the first 15 minutes of trading. As of 9:40 a.m., the index was trading nearly flat, up 0.08 percent at 1970.84 points.  European Central Bank chief Mario Draghi. (Yonhap)On Thursday, the ECB unveiled measures for cutting all its interest rates and ex

March 11, 2016

BOK freezes rate, cautious on more cuts

Korea’s key interest rate is low enough to help spur economic growth, Bank of Korea Gov. Lee Ju-yeol said Thursday, dampening market expectations of an imminent cut. “The base rate at 1.5 percent is already accommodative,” Lee told reporters in a presser that followed the central bank’s decision to freeze the rate. “It does not restrain economic growth,” he said in response to a question as to whether the key rate, currently at a record low, is higher than the optimal level for the economy to ma

March 10, 2016

Dividend-paying stocks appeal amid low interest

This is the third installment of a three-part series looking into Korean companies’ dividend payout policies, the reasons behind them and future prospects. -- Ed.Motivated by low interest rates and volatile markets, many more investors are flocking to dividend-paying stocks and funds as they look for stability in their portfolios. Income-oriented investors, who have been reluctant to move into dividend-paying stocks due to stingy returns, are now paying more attention as analysts expect the divi

March 10, 2016

Korean stocks up 0.84% on ECB hopes

Korean shares advanced 0.84 percent on Thursday, led by gains in techs, energy stocks and financials, as investors bet that the European Central Bank (ECB) may roll out additional easing steps, analysts said. The local currency sharply rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) rose 16.38 points to finish at 1,969.33. Trading volume was moderate at 346 million shares worth 5.1 trillion won ($4.24 billion), with gainers beating losers 484 to 311.The ECB i

March 10, 2016

Korea's foreign currency deposits fall to 23-month low in Feb.

Foreign currency deposits at banks continued to shrink in February due to a large cut in deposits held by local firms, central bank data showed Thursday.Outstanding foreign currency deposits held by local residents came to $53.47 billion at the end of last month, down $2.13 billion from the previous month, according to the data from the Bank of Korea (BOK).The February reading marks the lowest level since $51.1 billion tallied in March 2014, as well as the fourth consecutive month of on-month de

March 10, 2016

Antitrust watchdog fines 172 firms for disclosure violations

South Korea's antitrust watchdog said Thursday that it has slapped a combined 815 million won ($672,720) in fines on 172 affiliates of large business groups for regulatory filing violations last year.Sixteen affiliates of Lotte Group were fined a combined 135.5 million won and 12 companies under the arm of SK Group were booked92.6 million won in penalties for not properly reporting to authorities about their intra-affiliate business deals, according to the Fair Trade Commission (FTC).The deals i

March 10, 2016

South Korean financial firms on alert for N.K. cyberattacks

South Korea’s financial authorities were on heightened alert for a possible cyberattack from North Korea’s military hackers, calling an emergency meeting Thursday of representatives from the public and private sectors. At the meeting, Jung Eun-bo, vice chief of the watchdog Financial Services Commission called on institutions to guard against hacking attempts, warning that holes in the their fence could invite hackers and result in massive losses to financial consumers. “If a financial instituti

March 10, 2016

BOK holds key rate steady at record low of 1.5 percent

Bank of Korea left its key rate unchanged Thursday in a widely expected decision.The central bank’s monetary policy board kept the base rate frozen at a record low of 1.5 percent for March. Bank of Korea Gov. Lee Ju-yeol at a rate policy setting meeting today. (Yonhap)The BOK has stood pat on the key interest rate since July after delivering four rate cuts in less than a year to help bolster growth in South Korea.The decision comes amid growing signs of a slowdown in Asia’s fourth-largest econom

March 10, 2016

South Korean shares open higher on techs

South Korean stocks opened higher Thursday on gains in tech and energy stocks.The benchmark Korea Composite Stock Price Index rose 7 points, or 0.36 percent, to 1,959.95 in the first 15 minutes of trading. The benchmark index rose 0.58 percent to trade at 1964.32 points at 10:58 a.m. Tech shares traded higher, with top player Samsung Electronics adding 1.01 percent. Top refiner SK Innovation advanced 2.99 percent and LG Chem, the country’s leading chemicals firm, remained flat.Hyundai Motor, the

March 10, 2016

Woori Bank to invest W2b in national crowdfunding program

Woori Bank said Tuesday it will spend 2 billion won ($1.66 million) in the first national crowdfunding program to support small and medium-sized start-ups and facilitate crowdfunding sentiment in the local market.“K-Crowd Fund” is the first national fund to support the Growth Ladder Fund, a government-funded program linking new start-ups with venture capital and other financial firms. Woori Bank will invest in Magellan Technology Investment, one of the three operators of the 20 billion won K-Cro

March 10, 2016

Tycoons, foreigners to bask in dividend windfalls

This is the second installment of a three-part series looking into Korean companies’ dividend payout policies, the reasons behind them and future prospects. – EdLocal business tycoons and foreign investors are basking in cash windfalls as Korean companies, traditionally stingy in returning profits to shareholders, increase dividend payouts this year, data showed Wednesday. 　　The number of “superrich” shareholders who have earned or will earn more than 10 billion won ($8.2 million) in year-end ca

March 9, 2016

Domestic deals dominated M&A market in 2015

South Korea has become the third-largest mergers and acquisitions market in Asia, as big-ticket deals by large conglomerates pushed the total volume to an all-time high in 2015, data showed Wednesday.A total of 362 deals worth $87.5 billion were signed last year, nearly a threefold increase in deal size from the figure in 2012, according to data by Mergermarket. Korea accounted for 9.4 percent of the total deal amount in Asia. China was the region’s top M&A market with $486.9 billion worth of de

March 9, 2016

Korean stocks up 0.35% on techs and autos

Korean shares increased 0.35 percent on Wednesday, led by gains in automakers and technology firms, shrugging off concerns over a slowdown in the global economy, analysts said. The local currency sharply fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) rose 6.83 points to finish at 1,952.95. Trading volume was moderate at 346 million shares worth 4.12 trillion won ($3.39 billion), with gainers beating losers 459 to 335."The local stock market has fared well in

March 9, 2016

Financial regulators issue warning to Lotte, Hana on poor customer management

Korea’s financial regulator has issued a warning to two local credit card companies -- Hana Card and Lotte Card -- ordering them to improve their customer management system, particularly with regard to money laundering.Corporate logo of Hana Card (Hana Card)This comes after the Financial Supervisory Service reviewed their operations last year and uncovered some “defects.”“We did not enforce disciplinary measures against the two card companies, but issued a warning about their systems, ordering t

March 9, 2016

Finance Ministry enforces measures against Eximbank on Moneual losses

The Ministry of Finance and Strategy has enforced a disciplinary measure against 57 employees of the Export-Import Bank of Korea for extending bad loans to Moneual and causing losses for the state-run bank, according to Korea Eximbank on Wednesday.“The bank’s internal auditors have been notified of the measure by the Finance Ministry against those employees, and the bank is following necessary procedures,” a spokesperson for Korea Eximbank said.“We, however, cannot yet reveal on the level of the

March 9, 2016

Korea Eximbank to raise $4b through dollar bonds

The Export-Import Bank of Korea plans to issue dollar-denominated bonds to raise $3 billion to $4 billion to help finance Korean companies seeking to expand overseas through exports, a person familiar with the situation said.The scale of debt financing through global bonds this year, the person said, will be similar to that of last year when the bank raised about $5 billion.It will likely select about five to six U.S. and Europe-based advisors such as investment banks for dollar-denominated bond

March 9, 2016

Korea's M2 money supply grows at fast rate in January

Korea's M2 money supply grew at a fast clip in January, with the rise in liquidity of households and financial institutes picking up pace, central bank data showed Wednesday.The M2 came to 2,266.9 trillion won as of end-January, up 1.1 percent from revised 2,241.6 trillion won the previous month, according to preliminary data from the Bank of Korea (BOK). Bank of Korea (Yonhap)From a year earlier, the January tally marks an 8.1 percent increase, quickening from a 7.5 percent on-year gain in Dece

March 9, 2016

Household debt rises at fast pace in Febuary

Household loans extended by local banks rose at a fast clip in February, quickening from a month earlier amid continued demand for home-backed loans, central bank data showed Wednesday.Outstanding household loans extended by local banks came to 644.2 trillion won ($530.77 billion) as of end-February, up 3 trillion won from the previous month, according to the data from the Bank of Korea (BOK). Apartment complex in Seoul (Yonhap)The 3 trillion-won gain far outpaces an average 0.9 trillion won on-

March 9, 2016

South Korea to name companies with credit risk

South Korea’s financial regulator said Wednesday it will announce a list of companies with high credit risk in July after conducting a nationwide analysis on businesses who owe over 50 billion won ($41 million) to banks.Last year, the Financial Services Commission found 54 companies out of 1,900 subjected to the credit analysis that failed to meet the requirements in business performance, cash flow and other conditions. Those firms were ordered to go under a debt-rescheduling program or court re

March 9, 2016