Stimulus plan weak: brokerages

The government’s 21 trillion won ($17.4 billion) fiscal stimulus for the first quarter of the year will be insufficient to offset the growing downside pressure on the economy, analysts said Thursday.  Finance Minister Yoo Il-ho speaks at a meeting with economy-related ministers in Seoul on Wednesday. (Yonhap)Following a spate of disappointing economic data, the government unveiled Wednesday a new stimulus package which includes an extra 6 trillion won in public spending on top of the original 13

Feb. 4, 2016

FSS to set up task force to fight accounting fraud

The financial regulator plans to set up a task force to handle the investigation of accounting fraud cases amid calls for tougher measures against such practices, officials said Thursday.The task force to be composed of around six experts will be established under the accounting investigation bureau of the Financial Supervisory Service, the FSS said. The move is in line with the government’s pledge to strengthen monitoring and punishment in the wake of a series of fraudulent cases at several loc

Feb. 4, 2016

Seoul equities open higher on oil price rebound

Korean share prices opened in the positive on Thursday, edging up 0.58 percent despite a sharp rebound in crude oil prices.The benchmark Korea Composite Stock Price Index rose 10.98 points to 1,901.65 in the first 15 minutes of trading. Traders monitor Korea share prices at a local branch on Thursday. (Yonhap)The index was trading 0.73 percent higher at 1904.39 points as of 9:38 a.m. Refiners, however, were bullish after oil prices jumped 8 percent on Wednesday when Russia’s foreign minister rev

Feb. 4, 2016

Won-dollar volatility at five-month high in Jan.

The daily volatility of the won-dollar exchange rate hit a five-month high in January as concerns rise about the stability of the Korean economy, central bank data showed Thursday.The average gap between the intraday high and low of the won-dollar exchange rate came to 7.9 won in January, the highest since 8.6 won in August, the Bank of Korea said. The January reading is also higher than the annual average for 2015.And the average daily variation, indicating fluctuations from the previous sessio

Feb. 4, 2016

[Graphic News] Korea’s credit ratings at highest levels

Despite the dark clouds gathering over Korea’s economy, its sovereign ratings are at the highest levels on record, data shows. Standard & Poor’s, one of the world’s big three credit ratings agencies, on Wednesday decided to maintain Korea’s rating at AA-, the fourth highest level in its evaluation scheme, with an outlook of “stable.” A stable outlook means the rating is most likely to stay at the same level for the time being. An AA-, the highest rating given to Korea, is where the country was b

Feb. 3, 2016

Half of listed firms suffer earnings shock in Q4

More than half of South Korea’s major listed firms have suffered earnings shocks as they missed profit forecasts for the fourth quarter of 2015, stoking concerns that the country’s sluggish economy may further deteriorate amid the protracted global slowdown.  (Yonhap)According to FnGuide, a financial information provider, out of 75 major companies listed on the KOSPI and KOSDAQ indexes, 38 firms logged earnings shocks. An earnings shock occurs when a company reports quarterly or annual profits b

Feb. 3, 2016

Korea mulls allowing Iranian fund to invest in Korean stocks

Iran is considering investing some 3 trillion won ($2.49 billion) in its current won-based bank accounts in the Korean capital market, according to Seoul officials Wednesday. The Korean government is examining possible measures to enable Iran to use the money in the accounts, owned by Iran’s central bank, for capital transactions, such as purchases of Korean stocks, bonds and derivative products, they said.“We are considering other options to use the won-based banks accounts which have been only

Feb. 3, 2016

KDB chief tapped as AIIB vice president

The head of a South Korean policy lender has been appointed a vice president of the China-led Asian Infrastructure Investment Bank (AIIB), the finance ministry here said Wednesday.Hong Ky-ttack, the president of state-run Korea Development Bank, will serve as the chief risk officer of the AIIB. The new bank has five vice presidents. Hong Ky-ttackHe will start his three-year tenure after the AIIB sets the exact inauguration schedule, according to the ministry.It is the first time in 13 years for

Feb. 3, 2016

Mortgage rates rise despite record-low key rate

Local banks’ lending rates on home-backed loans have regained the 3 percent level despite record low key interest rates, data showed Wednesday.The lending rates at 14 out of 16 local lenders were over 3 percent for home-backed loans with a maturity of 10 years or longer, according to data from the Korea Federation of Banks as of the end of 2015. Customers consult for loans at a bank in Seoul.(Yonhap)Banks’ lending rates had dropped steadily since the Bank of Korea put its key policy rate to a re

Feb. 3, 2016

Seoul shares track New York losses

South Korean shares opened 0.68 percent lower on Wednesday following a decline in New York triggered by sliding oil prices. The benchmark Korea Composite Stock Price Index shed 12.91 points to 1,893.69 in the first 15 minutes of trading. Traders monitor South Korean share prices at a local bank. (Yonhap)The index was trading 1.22 percent lower at 1883.37 points as of 9:45 a.m.Overnight, the Dow Jones industrial average fell 1.8 percent and the NASDAQ lost 2.24 percent after oil prices fell sharp

Feb. 3, 2016

Korea, Iran agree to maintain won-based settlement system

From news reportsSouth Korea and Iran reached an agreement to maintain the won-based settlement system used for years for bilateral trade while seeking an alternative payment method that can expand economic ties between the two countries, Seoul officials said Tuesday.“We agreed that the current won-based settlement system has no problem in continuing to operate. The existing accounts will remain,” a Finance Ministry official said.The agreement came after a Korean delegation comprised of finance

Feb. 2, 2016

[Herald Interview] Hard landing unlikely for China: SC Bank economist

It would be an understatement to say China is off to a rocky start this year. The stock market in the world’s second-largest economy has been suffering weeks of volatility and downbeat sentiment as fears continue to grow over its overall stability. China’s economic growth rate slowed to a 25-year low of 6.9 percent in 2015. Many economists believe the actual growth rate -- something the Chinese authorities may be shielding from the international community -- was probably even lower.In the words

Feb. 1, 2016

Builders gain on stong earnings, overseas opportunities

The Korea Herald is publishing a series of articles looking at the performance of various sectors on Korea’s main bourse KOSPI. The following is the second installment. -- Ed.Visitors look at a small-scale model of Xi Apartment built by GS E&C, during a promotion event held in Seoul. (Yonhap)Shares in South Korean builders are on an upward trajectory on the back of improved 2015 earnings and market expectations for more overseas projects with the reopening of the Iranian market and the launch of

Feb. 1, 2016

Expectation of rate cut grows as economic mood darkens

Expectations that the Bank of Korea may soon lower the country’ key interest rate from the current record-low level are growing after Japan last week surprised global markets by adopting negative interest rates and weaker-than-expected export data strengthened the case for new stimulus. “Foreigners are buying futures on Korean government bonds, betting on a rate cut,” said Seo Hyang-mi, fixed-income analyst at Hi Investment & Securities.  Bank of Korea Gov. Lee Ju-yeol (Yonhap)On Monday, yields

Feb. 1, 2016

Online-only banks eye credit card industry

Embattled credit card companies may face stiff competition from online-only banks that are fast seeking ways to infiltrate the market, according to industry sources. 　One such entity is Kakao Bank, a consortium of three firms Kakao, Korea Investment & Securities and Kookmin Bank.  　“Our plan is to launch credit cards linked to our services and win the approval (from the government) within this year,” a Kakao Bank official told a local paper, although it has not revealed the details. 　If Kakao Ba

Feb. 1, 2016

Korean shares open flat

Korean shares started flat, up just 0.42 percent Monday.Telecommunication shares rose slightly after the government failed to approve a new mobile carrier last week, giving the benchmark index a boost. An investor watches an electronic board displaying South Korean share prices at the Korea Exchange in Yeouido, Seoul. (Yonhap)The benchmark Korea Composite Stock Price Index added 7.95 points to 1,920.01 in the first 15 minutes of trading.The index was trading 0.63 percent higher at 1924.03 points

Feb. 1, 2016

Foreign investors to get omnibus accounts

South Korea will introduce an omnibus account system for foreign investors in the local stock market starting May to improve convenience and access, officials said Sunday.　The Financial Services Commission said the new system would simplify the current registration system that exclusively applies to foreign stock investors, institutional or retail. 　Under the new system, a global asset management firm or a brokerage house can open a single account to process orders from their clients. 　Currently

Jan. 31, 2016

Korea to introduce 'omnibus account' for foreigners

South Korea plans to introduce an omnibus account system for foreign traders to help boost their convenience in trading stocks on the Korean bourse, the financial regulator said Sunday.The envisioned program is also expected to help get its stock market included on the Morgan Stanley Capital International advanced market index.According to the Financial Services Commission, a global asset management firm or brokerage house can open a single account to receive trading orders from their clients an

Jan. 31, 2016

Stricter bank credit control causes mortgage loan growth to sink

Stricter credit control guidelines by local banks that officially go into effect in February caused a sharp drop in home-backed mortgaged loan growth coming into this year, financial sector sources said Sunday.Data provided by KB Kookmin, Shinhan, Woori, KEB Hana, Nonghyup and the Industrial Bank of Korea showed the amount of outstanding mortgaged loans provided to customers as of last Thursday standing at 349.49 trillion won ($290.15 billion), up around 446 billion won from late December when i

Jan. 31, 2016

Korea's national debt to top 600tr won mark soon

South Korea's national debt is expected to surpass the 600 trillion won ($498.1 billion) mark for the first time ever this week after growing steadily over the years, official data showed Sunday.The total will mark a 4.9 trillion won increase from the estimated 595.1 trillion won in debt accumulated by Asia's fourth-largest economy as of late 2015, the National Assembly Budget Office said.(Yonhap)Based on this year's budget spending plan, the national debt could reach 644.9 trillion won by the e

Jan. 31, 2016