Seoul shares open lower as foreigners sell

South Korean shares opened slightly down on Friday as foreign investors sold tech shares on downbeat earnings prospects.  An investor watches share prices on an electronic board at the Korea Exchange. (Yonhap)The benchmark Korea Composite Stock Price Index lost 13 points to 1,893.94 in the first 15 minutes of trading.The index was trading 0.62 percent lower at 1895.08 points as of 9:37 a.m. Most blue chip stocks were in negative terrain. Market bellwether Samsung Electronics fell 1.48 percent fo

Jan. 29, 2016

Fintech to pose threat to Korean banks: Moody’s

The growth of financial technology is a credit negative for Korean banks, global credit rating agency Moody said Thursday, claiming that it will undermine the already-dwindling profitability of brick-and-mortar lenders. The New York-based crediting agency said Korea's push for fintech, envisioned partly by soon-to-launch internet-only banks and recently-launched crowdfunding operations, will trigger fiercer market competition in the Korean financial industry scene.“These initiatives, which are p

Jan. 29, 2016

Korean shares close flat as Fed nods to heightened risks

Korean stocks swung between gains and losses Thursday, after the U.S. Federal Reserve flagged risks to the U.S. economy from turmoil in global markets and indicated it would raise interest rates gradually. The benchmark KOSPI index settled at 1,906.94 points, 0.48 percent higher than the previous day, after dropping to 1,877.78 in early trading. The Korean won lost ground to 1,208.5 won per dollar, after the Fed kept its key interest rate untouched in a two-day meeting in Washington. “That the F

Jan. 29, 2016

Samsung Life to buy shares in Samsung Card

Samsung Life Insurance will take over a 37.45 percent stake in Samsung Card from Samsung Electronics in a deal worth 1.54 trillion won ($1.27 billion), the companies said Thursday. “Samsung Life’s board of directors approved the purchase of the entire 37.45 percent stake in Samsung Card, or 43.39 million shares, held by Samsung Electronics,” the insurance firm said in a regulatory filing in Seoul. In a separate filing, Samsung Electronics also notified the approval of the same deal by its own di

Jan. 28, 2016

UAMCO caps first debt takeover deal

The United Asset Management Co., a specialized firm in taking over bad loans held by financial companies, Thursday said it capped the first batch of its investment targets, with the sort-out process for the second batch also in the pipeline. UAMCO said it had sealed an agreement with first two main creditor banks -- the state-run Korea Development Bank and KEB-Hana Bank, for the takeover of bad debts extended by two firms in workout deals. The names and details on investments and mergers will be

Jan. 28, 2016

Tax agency opens probe into 30 offshore tax evaders

Korea’s tax authorities said Wednesday they have launched a full-fledged investigation into 30 corporations and individuals on suspicions of offshore tax evasion.The National Tax Service said the probe would target companies and individuals who are suspected of having concealed their wealth using offshore paper companies in the British Virgin Islands and other tax havens. “We will conduct unprecedented intense tax investigations into companies and members of conglomerate families,” said Han Sung

Jan. 27, 2016

Bank federation chief calls for fee hikes

Korea Federation of Banks chairman Ha Yung-ku said Wednesday that dwindling margins are forcing local banks to raise service and transaction fees for account holders. “The profit outlook for Korean commercial banks is grim. It is almost inevitable that they take steps to improve margins,” said Ha, a former longtime CEO of Citibank Korea, in a press conference in Seoul.“Fees need to rise to realistic levels,” he said, adding that the current levels are too low. Ha Yung-ku (Yonhap)Local banks have

Jan. 27, 2016

Korea Eximbank sets aside W75tr for loans, guarantees　

The Export-Import Bank of Korea said Wednesday it has allocated loans and guarantees worth 75 trillion won ($62.5 billion) in 2016 amid the sluggish global economy, vowing strong support for the nation’s future growth engines.　The official export credit agency increased its allocation for corporate loans and investment by 1 trillion won from the previous year to boost liquidity among promising exporters, bank officials said. 　Of the total, the agency plans to inject 3.5 trillion won for promisin

Jan. 27, 2016

Korea aims for MSCI upgrade

Korea will introduce an omnibus account system for foreign investors and explore ways to improve the local currency’s convertibility in order to help get its stock market upgraded by MSCI global equity indexes, the Financial Services Commission said Wednesday. MSCI indexes are some of the world’s most widely tracked benchmarks and serve as the basis for over 500 exchange-traded funds. Financial Services Commission chief Yim Jong-yong attends a meeting in Seoul on Wednesday. (Yonhap)“Given the re

Jan. 27, 2016

Seoul shares soar 1.4% on oil, Fed hopes

South Korean stocks rallied 1.4 percent Wednesday as investors hunted for bargains on a recovery in oil prices and hopes for a relief message from the U.S. central bank. The local currency closed higher against the U.S. dollar.The benchmark Korea Composite Stock Price Index  added 26.18 points to end at 1,897.87. Trade volume was moderate at 345.5 million shares worth 4.99 trillion won ($4.15 billion), with winners beating losers 478 to 346.The local market joined the wave of the global bull run

Jan. 27, 2016

State tax agency launches probe on 30 offshore tax evasion cases

South Korea's tax authorities said Wednesday that it has launched probes into 30 offshore tax evasion cases as part of its efforts to clamp down on tax dodging.The National Tax Service (NTS) said the investigation is targeting companies and individuals who have allegedly concealed their wealth using offshore paper companies in various tax havens around the world.A total of 1.3 trillion won (US$1.08 billion) in taxes were slapped on evaders as a result of its offshore probes last year, up 5 perce

Jan. 27, 2016

Korea to release online price index

South Korea plans to unveil a new index tracing online retail prices this year by using big data from private sector to reflect actual economic sentiment, according to Statistics Korea on Tuesday. The state-run agency plans to release an online price index that will complement the consumer price index by the end of this year, the agency reported in its 2016 plan to President Park Geun-hye.To develop the new indicator, Statistics Korea is currently collecting price data from six major online shop

Jan. 27, 2016

BOK chief calls for careful watch over Chinese economy

South Korea’s central bank chief called for a careful monitoring of the Chinese economy Wednesday.  BOK Gov. Lee Ju-yeol (front row, second from right) speaks at a meeting with economists on Wednesday. (Yonhap)“Considering its impact on the global economy, we cannot but be sensitive to changes in the Chinese economy,” Bank of Korea Gov. Lee Ju-yeol said in a monthly meeting with economists.Lee said the difficulties South Korea currently faces may have also been caused by uncertainties concerning

Jan. 27, 2016

Seoul shares open higher on New York gains

South Korean shares opened higher on Wednesday following overnight gains on Wall Street.  A dealer looks into a monitor at the New York Stock Exchange. (Yonhap)The benchmark Korea Composite Stock Price Index rose 20.40 points, or 1.09 percent, to 1,882.09 in the first 15 minutes of trading.The index was trading 24.9 percent higher at 1896.59 points as of 9:50 a.m. The Dow Jones industrial average jumped 1.78 percent and the Nasdaq composite index rose 1.09 percent on a recovery in oil prices tri

Jan. 27, 2016

[Photo News] Visit to traditional market

KB Financial Group chairman Yoon Jong-kyoo (center) and Financial Supervisory Service Gov. Zhin Woong-seob (right, front row) at a visit to a traditional market in Seoul on Tuesday. The visit was part of efforts to revive business in conventional markets ahead of the Lunar New Year holidays.  KB Financial Group

Jan. 26, 2016

Earnings season kicks off amid gloomy outlook

The fourth-quarter reporting season kicked off Tuesday amid low expectations as Korea’s listed firms continue to suffer from sluggish exports and a global slowdown.This week, some 32 companies listed on the main KOSPI bourse are planning to report their results for the October-December period in 2015.Analysts have been constantly revising down their outlook amid a series of weak quarterly performance reports by major Korean companies despite their efforts to restructure operations throughout las

Jan. 26, 2016

[Newsmaker] Deutsche Bank trader sentenced to jail

On Nov. 11, 2010, with just 10 minutes for the stock market to close in Seoul, three traders in Hong Kong dumped 2.4 trillion won ($2 billion) worth of Korean shares, triggering a 2.7 percent drop on the country’s main KOSPI index. The massive and coordinated sell-off by Deutsche Bank employees wiped out 28 trillion won in value from Korea’s equity market, but those involved in the transaction made a combined profit of 44.9 billion won through derivative positions they had arranged in advance. M

Jan. 26, 2016

Korean firms' stock repurchase spikes 72% in 2015

Share buybacks by South Korea's listed firms surged over 72 percent from a year earlier in 2015, data showed Tuesday, amid a government call for the companies to return more of their profits to shareholders.According to data from the Korea Exchange (KRX), operator of the Seoul bourse, 209 listed firms bought back some 10.59 trillion won ($8.81 billion) worth of their own shares last year.The amount marks a 72.3 percent jump from a year earlier.Stock repurchases are considered a way of returning

Jan. 26, 2016

Fed to mull weak inflation but no policy move

WASHINGTON (AFP) - Weak inflation is expected to be the key topic when the Federal Reserve opens a two-day monetary policy meeting Tuesday, its first since its historic interest rate rise in December.Coming less than a week after the European Central Bank signaled it could expand stimulus measures in March if inflation slows further, the Fed is not expected to take any policy action.  (AP-Yonhap)With its first interest rate increase in over nine years in place for just six weeks, the Federal Ope

Jan. 26, 2016