The Korea Herald

FSC chief calls for Korea's MSCI index inclusion

South Korea's top financial regulator called on the chief of global index provider MSCI Inc. on Friday to include the nation in its advanced market index, officials said.Financial Services Commission Chairman Yim Jong-yong made the appeal to include the country's benchmark index in the MSCI's developed market index during a meeting with visiting MSCI Chairman Henry Fernandez, according to the FSC officials. While the MSCI categorizes 78 countries into three benchmark indices -- developed, emergi

Jan. 15, 2016

Seoul shares almost flat in late morning trade

South Korean shares traded almost unchanged late Friday morning as gains in tech stocks were offset by losses in automakers.The Korea Composite Stock Price Index gained 0.55 point, or 0.03 percent, to 1,900.56 as of 11:20 a.m.Large caps traded mixed with tech giant Samsung Electronics advancing 0.44 percent.Top portal operator Naver surged 2.76 percent, with leading steelmaker POSCO gaining 0.93 percent.In contrast, automakers and chemical shares were in negative terrain.No. 1 automaker Hyundai

Jan. 15, 2016

Finance minister to participate in AIIB opening ceremony

South Korea's new finance minister will participate in the inauguration ceremony of the China-backed Asian Infrastructure Investment Bank, the ministry said Friday.The AIIB, formally established in December last year, will hold its first meeting at an opening ceremony on Saturday, with many international heavyweights including Chinese President Xi Jinping to attend.South Korea is one of the 57 founding members of the international organization, with 3.81 percent of the voting rights, the fifth-l

Jan. 15, 2016

Seoul shares open higher on Wall Street gains

South Korean shares opened higher Friday, tracking overnight gains on Wall Street.The benchmark Korea Composite Stock Price Index added 13.66 points, or 0.72 percent, to 1,913.67 in the first 15 minutes of trading.The Dow Jones industrial average added 227.64 points, or 1.41 percent, to 16,379.05 on Thursday.Most market heavyweights opened in positive terrain.Tech giant Samsung Electronics advanced 0.7 percent, with top cosmetics maker Amore Pacific gaining 1.02 percent.No. 1 automaker Hyundai M

Jan. 15, 2016

Ex-Goldman banker fined for unauthorized note sale

A former employee of at the Seoul branch of U.S. investment bank Goldman Sachs was slapped with a fine Thursday for selling structured notes without the government's approval. In South Korea, only registered brokerage houses can create structured notes by packaging debt with derivatives to offer customized bets, but the New York-based lender was not authorized to make such deals. The former chief of Goldman Sachs' Seoul branch was indicted in October on charges of selling six structured notes li

Jan. 14, 2016

FSS probes property deals by SK Group chairman’s mistress

Korean financial authorities have launched an investigation into an overseas affiliate of SK Group and property deals linked to a woman who was recently found to be in a relationship with the group’s chairman over alleged violations of the foreign exchange law, sources said Wednesday. The Financial Supervisory Service summoned the woman, a U.S. citizen identified by her surname Kim, and officials at Singapore-based consulting firm Bergaya International to question whether they breached the forex

Jan. 14, 2016

Won-dollar volatility hits 4-year high in 2015

Volatility in the won-dollar exchange rate hit a four-year high last year as the foreign exchange market seesawed over a potential U.S. rate hike and lingering global market uncertainties, central bank data showed Thursday.The daily foreign exchange variation of the won-dollar rate averaged 0.58 percent in 2015, marking the highest level since 2011, when the figure hit 0.64 percent, according to the data compiled by the Bank of Korea.The figure refers to how much the rate changes compared with t

Jan. 14, 2016

AIA appoints new CEO

AIA Korea tapped Cha Tae-jin, who has spent over 20 years in the life insurance industry, as its new CEO, the firm said Thursday. Cha Tae-jin, the new CEO of AIA KoreaCha started his career as an insurance sales agent at Prudential Life Insurance Company of Korea in 1995. He continued to solidify his position in the sector while working at MetLife and ING Life from 2001 to 2015. His appointment comes just five months after Cha Joined AIA as its vice president of sales in August. “Cha is an insur

Jan. 14, 2016

BOK cuts growth outook, keeps key rate at record-low of 1.5%

The Bank of Korea’s monetary policy board Thursday froze the base interest rate at a record-low 1.5 percent, citing soaring household debt, volatility in the China market and low crude prices. The central bank also announced that it slashed its growth outlook for 2016 to 3 percent from 3.2 percent. In its previous quarterly revision, released in October, the central bank lowered the forecast to 3.2 percent from 3.3 percent.Caption: Bank of Korea Gov. Le Ju-yeol opens a policy meeting at the bank

Jan. 14, 2016

BOK cuts growth outook, keeps key rate at record-low of 1.5%

Seoul stocks open lower on China‘s retreat

South Korean share prices opened lower Thursday to track the previous day’s losses in China’s stock markets.The benchmark Korea Composite Stock Price Index lost 18.52 points, or 0.97 percent, to 1,897.76 in the first 15 minutes of trading. A trader holds his head in his hands at one of China’s stock exchanges. YonhapThe index was trading 1.38 percent lower at 1889.93 points as of 9:55 a.m. The Shanghai Composite, a key Chinese stock index, lost more than 2 percent on Wednesday to close at 2949.6

Jan. 14, 2016

Seoul stocks open lower on China‘s retreat

BOK keeps key rate at record-low of 1.50%

The Bank of Korea’s monetary policy board on Thursday froze the base interest rate at a record-low of 1.5 percent, citing soaring household debt, volatility in China market and low crude prices. The central bank said it decided to keep the key rate unchanged largely due to the nation’s skyrocketing household debt. 　As of Sept. 30, South Korea’s total household debt soared to 1,166 trillion won ($962.8 billion), growing at an accelerated pace of 10.4 percent in 2015 from 8.7 percent in 2011. Ban

Jan. 14, 2016

BOK keeps key rate at record-low of 1.50%

Oil money exit from Korean stocks likely to continue: brokerage

South Korea is facing an increasing level of oil money exit risks in its stock markets, with the crude-producing economies bracing against falling global oil prices and struggling Chinese economy, a Korean brokerage house said on Wednesday. According to a recent report compiled by Shinhan Investment Corp., the oil producing economies’ total investment in Korean stocks on Nov. 30, 2015, slipped to 30.7 trillion won, down 10.6 trillion won or 25.7 percent from July 31, 2014. “The biggest exit came

Jan. 13, 2016

Oil money exit from Korean stocks likely to continue: brokerage

New finance minister stresses sweeping structural reforms

South Korea's new finance minister said Wednesday that the country should mobilize all resources to carry out structural reforms in order to put the economy back on a growth path and make it stronger."It's urgent to complete reforms in the education, labor, public and financial sectors in order to make a breakthrough in the low-growth trap," Finance Minister Yoo Il-ho said in his inauguration ceremony. "All resources should be funneled into the task.""There is no tomorrow unless we revamp the ri

Jan. 13, 2016

India’s largest bank kicks off Seoul branch

India’s largest lender started operations of its first branch in Korea on Wednesday, as trade between the two Asian economies flourishes.B. Sriram, managing director of State Bank of India, speaks during a press conference in Seoul on Wednesday.“SBI Seoul branch will supplement existing channels of financial intermediation between India and Korea, partnering growth in bilateral trade between the two countries and also the flow of investments from one to the other,” B. Sriram, managing director o

Jan. 13, 2016

India’s largest bank kicks off Seoul branch

India‘s top bank SBI opens branch in Seoul

The State Bank of India, the southern Asian country's No. 1 commercial bank, said Wednesday it opened a branch in Seoul in line with growing exchanges between the two nations.The branch, located in downtown Seoul, is the Indian bank's first in South Korea, though the institution set up a representative office in Seoul in 2013.The Seoul branch is to provide a wide range of services, with the focus on corporate financing for Indian companies planning to come here and for Korean firms operating in

Jan. 13, 2016

New finance minister, BOK chief to discuss pending issues

South Korea's new finance minister and the central bank chief will have their first meeting later this week to share their views on the economy in the face of falling oil prices and a Chinese rout, the Bank of Korea said Wednesday.Finance Minister Yoo Il-ho, who took office Wednesday, will meet with BOK Gov. Lee Ju-yeol on Friday in Seoul to discuss ways to tide over issues facing the Korean economy through fiscal and monetary policies.In the recent few years, the meeting of the two economic lea

Jan. 13, 2016

IRIS-SCANNING ATM

Woori Bank CEO Lee Kwang-goo tests an iris-scanning automated teller machine at its headquarters building in Seoul on Wednesday. Woori rolled out the biometric ATMs using iris scanning to identify customers at five branches in Seoul, the first among local banks. Woori Bank

Jan. 13, 2016

Seoul stocks open on bullish note

South Korean share prices opened in the positive on Wednesday to make a rebound from the four-month low they fell to in the previous session. The benchmark Korea Composite Stock Price Index gained 11.74 points, or 0.62 percent, to 1,902.60 in the first 15 minutes of trading.The index was up more than 1 percent as of 11 a.m., trading at around 1913 points. On Tuesday, the index sank 0.21 percent to 1,890.86, the lowest since Sept. 8, 2015.Most large caps were trading higher in the morning session

Jan. 13, 2016

Korea's M2 money supply grows at fast rate in Nov.

South Korea's M2 money supply grew at a faster rate from a month earlier in November, central bank data showed Wednesday.The M2 gained 0.4 percent from a month earlier to reach 2,244.3 trillion won in November, quickening from a 0.1 percent on-month growth in the previous month, according to preliminary data from the Bank of Korea.From a year earlier, the November figure marks a 7.7 percent increase.The M2 refers to currency in circulation including bank debentures and deposits with a maturity o

Jan. 13, 2016

More credit card firms adopting wage peak system

More credit card companies in South Korea are adopting the so-called wage peak system this year to keep in line with related government policies, industry sources said on Wednesday.Samsung Card, Hyundai Card and Lotte Card have begun implementing the wage peak system this year after KB Kookmin Card became the first credit card firm in the country to adopt it. KEB Hana Card is also planning to adopt the system within this year. The law calls for public companies and big businesses with 300 or mor

Jan. 13, 2016