The Korea Herald

Banks rush to expand global footing

In stark contrast to restructuring their workforce and branch operations at home, major South Korean banks plan to expand their business across Asia as they seek to bolster foreign presence to drive growth amid a slowing economy and record low interest rates, industry data showed Sunday.The country’s top five lenders ― Woori Bank, KEB Hana Bank, Shinhan Bank, KB Kookmin Bank and NH Nonghyup Bank ― are stepping up efforts to increase their global operations by adding 120 locations, including bran

Jan. 10, 2016

[Graphic News] Korea ranks 31st in trustworthy GDP data

Korea ranked 31st in the world in terms of quality on gross domestic product data, according to a report released by World Economics, a U.K.-based economic information provider.The Data Quality Index developed by the consulting firm to show which countries data can be trusted covered five factors, including national accounting standards used and the size of the informal economy.Korea gained 75 points in the 100 possible score. Switzerland topped the list with 97.2 points, followed by the United

Jan. 10, 2016

[Graphic News] Korea ranks 31st in trustworthy GDP data

Seoul shares bounce back from 4-month low, China risks still persist

South Korean stocks pared early losses to close 0.7 percent higher on Friday, rebounding from their 4-month low, as China tried to attempt to ease concerns over the devaluation of its currency. The Korean won gathered ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) added13.29 points to end at 1,917.62. Trade volume was moderate at 401 million shares worth 4.99 trillion won ($4.17 billion), with losers beating winners 454 to 360.The index opened sharply lowe

Jan. 8, 2016

KOSPI bounces back on China gains

The benchmark Korea Composite Stock Price Index managed to close in gain on strong institutional buying Friday, after moving either side of the 1900-point mark in the wake of a stock crash in China.　Korean traders gave a sigh of relief after the KOSPI rose 13.29 points to 1,917.62, despite pessimistic expectations throughout morning trading. Trading volume was at 400.6 million shares worth 5.00 trillion won ($4.2 billion), with 454 firms falling and 360 gaining. (123RF)　The KOSPI opened at a fou

Jan. 8, 2016

S. Korea's mortgage growth likely to slow down

Growth of mortgage loans in South Korea will likely slow down sharply in 2016 from last year as the government tightens its grip on fast-rising home-back lending, a report showed Friday.Local banks' mortgage loans are expected to grow at a rate of 5 to 6 percent in 2016, according to the report by the Korea Center for International Finance, citing a global investment bank, JP Morgan.The growth pace has been accelerating in recent years, hitting11 percent in 2014 and 10 percent for the first 10 m

Jan. 8, 2016

Mortgages grow most since 2011

South Korean home-backed loans extended by major local banks saw the sharpest increase in 2015 in five years, surging by over 60 trillion won ($50 billion) on-year due to a rise in housing transactions and a spike in home rental fees, industry data showed Thursday.According to data by six major banks, including KB Kookmin Bank and Shinhan Bank, outstanding home-backed loans from the banks grew by 60.4 trillion won last year from a year earlier, the biggest net increase since 2011.The amount incl

Jan. 7, 2016

Markets take another hit from China

Another rout on the Chinese stock market sent Korean shares and currency tumbling Thursday, even as they were reeling from the repercussions of a purported hydrogen bomb test by North Korea the previous day. The country’s main stock index KOSPI slipped 1.1 percent to close at 1,904.33 points, as a second market crash in China in a week rattled already shaky investor sentiment. The won-dollar exchange rate crashed through the psychologically important 1,200 won-per-dollar mark. Extending its loss

Jan. 7, 2016

Korea's central bank chief to attend BIS meeting

South Korea's central bank head will attend a bimonthly meeting of central bank governors from around the world, where they will exchange views on the latest financial market conditions, the Bank of Korea said Thursday.BOK Gov. Lee Ju-yeol will head to Basel, Switzerland, on Friday for the two-day meeting of the Bank for International Settlements over the weekend.BIS currently has 60 member countries, including Japan, China and the United States.The upcoming meeting will be the first of its kind

Jan. 7, 2016

Gov't tobacco tax revenue jumps 51.4% on price hike

South Korea's tobacco tax revenue shot up more than 50 percent in 2015 from a year earlier on a spike in cigarette prices, despite weaker sales, the finance ministry said Thursday.The cigarette tax revenue reached 10.5 trillion won ($8.7 billion) last year, up 51.4 percent from 7 trillion won tallied a year ago, according to the Ministry of Strategy and Finance.Seoul marked up taxes levied on cigarettes by 2,000 won, starting in January last year, to raise the price to 4,500 won per pack, citing

Jan. 7, 2016

Seoul shares, currency shrink

South Korean stocks traded 0.88 percent lower late Thursday morning due to a Chinese stock market crash coupled with new North Korean risks.The local currency was trading at 1,201.70 won against the U.S. dollar as of 11:20 a.m., down 3.80 won from the previous session's close.The benchmark Korea Composite Stock Price Index (KOSPI) lost 16.92 points to 1,908.51 as of 11:20 a.m.Shares lost ground across the board, with Samsung Electronics plunging 1.02 percent and No. 1 carmaker Hyundai Motor losi

Jan. 7, 2016

FSC head urges thorough risk management for financial stability

South Korea's top financial regulator on Thursday stressed the need for careful risk management to maintain financial stability in the face of resurfacing geopolitical risks and external uncertainties.Financial Services Commission Chairman Yim Jong-yong made the remarks at a meeting held with officials from relevant government agencies and experts to check economic and financial risk factors and to explore ways to cope with them."Risk management for financial stability has become more important

Jan. 7, 2016

Interest rate hike may pose challenges for households: BOK

An interest rate hike of just 0.25 percentage points will likely cause the household debt service burden to rise by 1.9 trillion won ($1.6 billion) per year, hurting consumer spending and affecting overall growth, the central bank said Thursday.In a report submitted to Rep. Park Won-suk of the minor opposition Justice Party, the Bank of Korea said if a quarter percentage point hike takes place, the biggest impact will be felt by households that make up the top 20 percent of the country's income

Jan. 7, 2016

Home-backed bank loans rise at fast clip in 2015

Home-backed loans from major local banks increased at the fastest clip in five years in 2015 amid a surge in home transactions and home rental fees, market data showed Thursday.According to the data from local lenders, outstanding home-backed loans extended by six major banks here came to 349.5 trillion won ($291.3 billion) at the end of 2015, up 32.6 trillion won from a year earlier.In reality, however, the total grew by 60.4 trillion won on-year when considering 27.8 trillion won worth of bank

Jan. 7, 2016

Brokerage staff fear job losses

Hit by a sluggish stock market, securities companies here have cut nearly 8,000 jobs over the past four years and more layoffs are expected this year, industry sources said Wednesday. Falling earnings and upcoming takeover deals among local brokerage houses will push them to undertake restructuring measures this year, according to experts. The financial district of Yeouido in Seoul (Yonhap)Especially, sales staff at small branches are on the verge of losing jobs as a growing number of people op

Jan. 6, 2016

Shares, currency fall on N.K. bomb test

North Korea’s purported hydrogen bomb test rocked financial markets in South Korea on Wednesday, bringing down local stocks and currency and putting Seoul authorities on emergency footing again just two days after China’s stock market crash triggered a global market rout.The South’s benchmark stock index KOSPI dipped 0.26 percent to close at 1,925.43. In the morning, shortly after the news broke, the gauge slid to as low as 1,911.61, but recovered some of the losses in the afternoon. Foreigners

Jan. 6, 2016

After leaks, Korea opens center for credit data

Min Sung-ki, the inaugural chief of Korea Credit Information Services (KCIS)Korea Credit Information Services, a pan-industry body tasked with data preservation and protection, was launched in Seoul on Tuesday amid mounting calls for data security after a series of large-scale information leaks. The new entity will act as a centralized data center for personal credit information, taking over data collected and preserved by five different organizations across banking, credit card and insurance.

Jan. 6, 2016

After leaks, Korea opens center for credit data

Korea's foreign exchange reserves shrink in Dec.

South Korea's foreign exchange reserves dwindled for a second consecutive month in December largely due to a devaluation of non-U.S. dollar assets, the central bank said Wednesday.The country's foreign exchange reserves came to $367.96 billion at the end of last month, down $500 million from the previous month, according to the Bank of Korea.From a year earlier, the total gained $4.4 billion. Foreign exchange reserves consist of securities and deposits denominated in overseas currencies, as well

Jan. 6, 2016

China's stock rout may increase financial volatility: finance minister

China's sudden stock crash could increase financial volatility requiring tougher government monitoring though its impact on the local market would be limited, South Korea's top economic policymaker said Tuesday.In a meeting with leaders from the country's financial sector in Seoul, Finance Minister Choi Kyung-hwan pointed out Monday's crash and mounting geopolitical uncertainties in the Middle East are heightening concerns across the board."The market seems to be responding excessively even to r

Jan. 5, 2016

Stock rout puts nerves on edge over China risk

Korean stocks rebounded Tuesday after Monday’s rout in Chinese shares that sparked concerns among Seoul policymakers for financial volatility. An investor looks at screens showing stock market movements at a securities company in Beijing on Jan. 5. (AFP-Yonhap)A day after Chinese stocks plunged over 7 percent, Korean market erased early losses to trade positively, while the benchmark Korea Composite Stock Price Index closed 0.61 percent higher at 1,930.53, although the Shanghai Composite Index c

Jan. 5, 2016

Stock rout puts nerves on edge over China risk

Seven hedge fund firms to open in Korea

More than a dozen investment advisory firms have registered to set up hedge funds since the government eased local capital market regulations to foster the finance industry last year, according to authorities Monday. Thirteen investment advisers have registered or will register to establish a hedge fund in less than two months since the revision of the Financial Investment Services and Capital Markets Act took effect in November. With the amended law, the country eased the entry barrier of hedge

Jan. 5, 2016