Brokerages’ net nearly doubled in 2015

Korean brokerage firms’ net profit nearly doubled in 2015 from a year earlier due to an increase in commission income, the financial watchdog said Monday.The combined net income of 56 brokerage firms stood at 3.23 trillion won ($2.6 billion) in 2015, up 91.7 percent from the previous year, according to the Financial Supervisory Service.  (Yonhap)The robust performance is attributable to a rise in commission income, which surged 32.6 percent on-year to 7.93 trillion won last year, according to th

Feb. 29, 2016

Profitability of savings banks improves in 2015

Korean savings banks saw their earnings surge from a year earlier in the second half of 2015 on increased interest earnings while their fiscal soundness also improved, data showed Monday.According to data from the Financial Supervisory Service, the combined net profit of 79 mutual savings banks here more than doubled to 378.1 billion won ($305.8 million) in the second half of last year from 180.5 billion won the same period in 2014. Financial Supervisory Service in Seoul (Yonhap)The increase was

Feb. 29, 2016

Seoul shares flat in late morning trade

Korean share prices remained nearly flat late Monday morning as investors mulled the possibility of another rate hike in the United States.The benchmark Korea Composite Stock Price Index was trading 0.1 percent lower at 1918.32 points as of 11:45 a.m.  Korean share prices are displayed on an electronic board at the Korea Exchange in Seoul. (Yonhap)Among the market heavyweights, No. 1 Hyundai Motor remained unchanged and Kia Motors was trading 2.44 percent lower. Top auto parts maker Hyundai Mobi

Feb. 29, 2016

Woori Bank sale on hold; KDB unit privatization starts

The sale of Woori Bank faces another delay as global financial market volatility has increased risk aversion among potential buyers, a key official overseeing the sale process said Sunday. “Market conditions have greatly changed. We need to alter our sale strategy regarding Woori Bank,” Yoon Chang-hyun, cochairman of the Public Fund Oversight Committee, said in an interview with Yonhap News Agency. “Middle East countries are hit by low oil prices, while a sense of crisis is fast spreading across

Feb. 28, 2016

Six-way race for Hyundai Securities

The race to acquire Hyundai Securities, the smallest of Korea’s five main brokerage houses, is turning out hotter than initially expected, after parent Hyundai Group cleared one key uncertainty -- the right, held by another Hyundai unit, to preempt any deal to sell the securities unit to a third party. According to sources, six groups have submitted letters of intent to acquire a combined 22.56 percent stake in Hyundai Securities, valued at 340 billion won ($273.4 million) based on the stock pri

Feb. 28, 2016

Korean household spending dips to record low in 2015

Korea's household spending fell to an all-time low in 2015 despite a slight increase in income, as households repaid debts and spent less amid an economic slump, a government report showed Friday.The average consumption propensity, or the ratio of total consumption spending to disposable income, came to 71.9 percent, down 1 percentage point from a year earlier, according to a report from Statistics Korea. Shoppers at a department store in Seoul (Yonhap)It is the lowest reading ever since the sta

Feb. 26, 2016

Korea's card spending jumps 16% in January

Korea's card spending rose sharply in January, data showed Friday, on the back of increased consumption for the Lunar New Year holiday and a gradual recovery in domestic demand.Purchases made with plastic cards reached 56.1 trillion won ($45.4 billion) last month, up 15.9 percent from a year earlier, according to data compiled by the Credit Finance Association (CREFIA).  (Bloomberg)The data includes transactions on credit, debit and prepaid cards. Cash advances, overseas spending and card loans

Feb. 26, 2016

Lending rates on new household loans rise in January

Bank lending rates on new household loans ticked up in January from a month earlier, central bank data showed Friday, possibly indicating local lenders' anticipation of rate hikes down the road.The average interest rate on new household loans gained 0.05 percentage points from a month earlier to 3.28 percent last month, according to the data from the Bank of Korea (BOK).January marked the third consecutive month of a rise in the average rates on new household loans.Such an increase apparently ca

Feb. 26, 2016

Korean shares up in morning trade

Korean shares traded bullish on Friday morning as investors eyed a meeting of the world’s top finance officials in China. The benchmark Korea Composite Stock Price Index wrapped up the morning session in the positive, rising 0.21 percent to trade at 1922.51 points.  Traders monitor share prices at a local bank. (Yonhap)Finance ministers and central bankers from the Group of 20 economies gathered in Shanghai today for a two-day discussion on ways to stabilize the global market and spur growth. To

Feb. 26, 2016

Rayence to go public in April

Rayence, a manufacturer of detectors for digital X-rays, plans to get listed in April on Korea’s tech-heavy secondary bourse KOSDAQ, the company said Thursday. The company said it filed a registration statement for an initial public offering to sell 4 million shares in an expected price range of 22,000 won ($17.8) to 25,000 won per share.  (Rayence)The subsidiary of a Korean X-ray manufacturer Vatech, it provides imaging solutions for medical, dental, veterinary, and industrial X-ray application

Feb. 26, 2016

Korean stocks climb 0.32% on foreign buying

Korean shares ended 0.32 percent higher in thin trade Thursday as foreign investors hunted for bargains. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) gained 6.04 points to finish at 1,918.57. Trading volume was thin at 297.76 million shares worth 3.88 trillion won ($3.14 billion), with gainers beating losers 426 to 382.Local shares started off strong, but they skidded in afternoon trading as Chinese stock markets tumbled nearly 4 percent

Feb. 25, 2016

Loans to self-employed spike at record pace in 2015

Korea's bank loans to the self-employed rose at the fastest clip ever in 2015 as they relied more on debt amid a protracted slump in domestic demand, data showed Thursday.Outstanding loans to the self-employed by five major local lenders, including Shinhan Bank and Kookmin Bank, came to 164.17 trillion won ($133.1 billion) in 2015, up 16.1 percent, or 22.7 trillion won, from a year ago, according to the data compiled by Statistics Korea and the banks.  The annual gain compares with the previous

Feb. 25, 2016

BOK to extend support fund for smaller firms

Korea's central bank said Thursday it will expand low-interest loans to small and medium enterprises in a bid to help them overcome an economic funk and boost the economy's recovery.A total of 9 trillion won ($7.28 billion) will be raised for the so-called "bank intermediate lending support facility," with 4 trillion won to be newly earmarked and the rest to come from part of the existing 20 trillion won fund reserved for the same purpose, according to the Bank of Korea (BOK). Bank of Korea (Yon

Feb. 25, 2016

Korea's finance minister to attend G20 meeting

Korea's finance minister will attend the Group of 20 meeting for top economic policymakers in China later this week to discuss a variety of global issues such as increased market volatility and toughened economic conditions, the finance ministry said Thursday.The Ministry of Strategy and Finance said Finance Minister Yoo Il-ho, who doubles as the deputy prime minister for economic affairs, will attend the G20 Finance Ministers and Central Bank Governors meeting to be held in Shanghai, China, on

Feb. 25, 2016

Korea’s short-term foreign debt slips in 2015

Korea’s short-term foreign debt slipped in 2015 from the previous year as banks cut back on overseas borrowing, the central bank said Thursday.External debt with a maturity of one year or shorter totaled $108.7 billion as of the end of 2015, down $7.7 billion from a year earlier, according to the Bank of Korea. Bank of Korea headquarters in downtown Seoul.(Yonhap)Total external debt consequently stood at $396.6 billion as of the end of last year, also dropping $27.8 billion from the previous yea

Feb. 25, 2016

Korean shares open higher on oil rebound

Share prices in Seoul opened bullish Thursday, tracking overnight Wall Street gains triggered by a rebound in international oil prices. Hopes for more stimulus measures in China amid financial turmoil there also boosted sentiment, analysts said.  Traders monitor Seoul share prices at a local bank.(Yonhap)The benchmark Korea Composite Stock Price Index rose 9.3 points, or 0.49 percent, to 1,921.83 in the first 15 minutes of trading. As of 9:58 a.m., the index was trading 0.68 percent higher at 19

Feb. 25, 2016

Household debt tops W1,200tr

South Korea’s household debt in the fourth quarter last year surged at its fastest pace in nearly nine years due to cheap borrowing costs and recovery in the property market, official data showed Wednesday.During the September-December period, household debt rose by 41.1 trillion won ($33 billion) -- the biggest quarterly gain on record -- to reach a total of 1,207 trillion won, according to provisional data by the Bank of Korea.This is the first time that household debt -- which includes loans

Feb. 24, 2016

Aekyung Industrial eyes IPO next year

Aekyung Industrial, Korean household and personal care product maker, is preparing for its debut on the Seoul bourse early next year, the company’s official said Wednesday.This is the latest move by Aekyung Group, a conglomerate whose businesses range from daily necessities and chemicals to department stores, to list its affiliates following the initial public offering of the country’s No. 1 budget airliner Jeju Air last year. “We plan to go public in the first half of the next year but nothing

Feb. 24, 2016