Finance minister urges quick approval of extra budget

Lawmakers should lose no time in passing a supplementary budget aimed at kick-starting the economy struggling with the fallout from the Middle East Respiratory Syndrome outbreak and slowing exports, the finance minister said Tuesday.The government on Monday submitted an 11.8 trillion won ($10.4 billion) extra budget bill to the National Assembly for approval, which is part of a larger 22 trillion won stimulus program designed to cope with the impact of MERS and breathe new life into anemic consu

July 7, 2015

Seoul shares fall 0.66 pct on losses in pharmaceuticals, cosmetics

South Korean stocks sank 0.66 percent Tuesday as investors dumped pharmaceutical and cosmetics shares on gloomy earnings outlooks, analysts said. The local currency lost ground against the U.S. greenback.The benchmark Korea Composite Stock Price Indexlost 13.64 points to close at 2,040.29. Trading volume was moderate at 494.2 million shares worth 8.2 trillion won ($7.3 billion) with decliners outnumbering gainers 453 to 368."Pharmaceutical and cosmetics firms had been on a roll to lead the recen

July 7, 2015

Won-dollar rate draws near yearly high

The U.S. dollar approached the strongest level of the year versus the Korean won Tuesday over aggravated uncertainty due to Greek woes.Following its gain Monday, the greenback further climbed Tuesday to close at 1,130.2 won, up 3.7 won from a trading session before. This marked its highest since it peaked at 1,131.5 won on March 16. Should the rate break through the year-high of 1,131.5 won, it -- as a second phase -- could come close to 1,135.5 won, which was last posted two years ago.After tak

July 7, 2015

KOSPI gains rank 10th among G20 nations in first half

Korea’s benchmark stock price index recorded the 10th biggest gain among the Group of 20 economies in the first half, up nine notches in six months, the Korea Exchange revealed Monday. The Korea Composite Stock Price Index grew 8.3 percent to 1,293 trillion won ($1.15 trillion) in the January-June period this year, slightly below the G20’s average 8.7 percent. At the end of 2014, the KOSPI had marked negative growth of 4.8 percent, ranking 19th among the G20 economies in gains. With Korea elevat

July 6, 2015

Gov't tables extra budget bill in parliament

The government on Monday submitted a supplementary budget bill to the National Assembly for approval as part of efforts to revitalize the economy struggling with slumping exports and anemic domestic demand.The 11.8 trillion-won ($10.49 billion) extra budget is part of a 22 trillion-won stimulus package the government says will help revitalize the economy while also providing much needed financial resources to battle the Middle East Respiratory Syndrome outbreak.It comes in addition to the govern

July 6, 2015

S. Korea drawing up contingency plan against potential Grexit

South Korea is working on contingency measures against possible increased volatility in financial markets as Greek people have turned down international creditors' austerity measures in a high-profile referendum, a high-ranking official said Monday.On Sunday, more than 60 percent of Greek voters rejected tough bailout terms, triggering concerns over a "Grexit" from the eurozone."We are working on a contingency plan as the likelihood of a Grexit has been bolstered, which would have a considerable

July 6, 2015

Mortgage growth hits 5-year high

The monthly increase of outstanding mortgages rose to its fastest pace in five years last month amid record-low interest rates, after the Bank of Korea cut its key rate to 1.75 percent on June 11.Korea’s seven largest commercial banks’ collective housing-collateralized loans swelled by 9.27 trillion won ($8.27 billion) in June, compared to the previous month. The figure included loans that borrowers converted into state-led, lower-rate contracts.The May-June 2015 period saw the highest monthly g

July 5, 2015

Major banks in full-fledged restructuring

Major commercial banks are scaling back payrolls and closing down uncompetitive branches in the wake of weakening profits brought by low interest rates. While the industry’s full-scale restructuring is considered an inevitable measure to improve its manpower structure, concerns have also been raised over the possibility that it may reduce the quality of the nation’s financial services.KB Kookmin Bank led spearheaded the move by accepting the voluntary redundancies of 1,121 employees in June.“Vol

July 5, 2015

Housing loan growth hits 5-year high

The monthly increase of outstanding mortgages rose to its highest point in five years last month amid record low interest rates.The Bank of Korea cut its key rate to a new record low of 1.75 percent on June 11.According to Korea’s seven largest banks, their collective housing-collateralized loans swelled by 9.27 trillion won ($8.27 billion) in June, compared to the previous month. The figure included borrowers’ conversion of their lending into state-led lower rate contracts.Based on month-on-mon

July 5, 2015

U.S. hedge fund appeals court's refusal to stop Samsung merger

A U.S. hedge fund, opposing a proposed merger of two Samsung Group units, has filed an appeal against a Seoul court's dismissal of its request to block the deal, the latest in a series of legal rows unfolding against South Korea's top conglomerate over the high-profile merger. Elliott Associates L.P. has been seeking to stop Samsung C&T Corp., the construction arm of Samsung Group, from being merged with Cheil Industries Inc., the de facto holding firm of the conglomerate, in an all-stock deal w

July 3, 2015

AmorePacific chief becomes richest man in stock value in S. Korea

Suh Kyung-bae, chief of South Korea's top cosmetics maker AmorePacific Group, has become the country's richest man in stock value, overtaking former No. 1 Samsung Group Chairman Lee Kun-hee, market data showed Thursday.Stocks owned by Suh were valued at 12.8 trillion won (US$11.4 billion) as of Thursday, while Samsung's Lee held stakes worth 11.8 trillion won, according to the data compiled by corporate tracker Chaebul.com.Suh's stock assets nearly doubled from 6.7 trillion won in the beginning

July 2, 2015

KRX to adopt holding company system

The Korea Exchange confirmed a restructuring plan to adopt a holding company system and go public, hoping to boost market competitiveness and expand overseas. Though the stock operator’s labor union immediately hit back at the announcement, the top regulator was determined to see the plan through.“The KRX will break away from its image as a market monopolist and henceforth place more focus on customer demands,” said KRX president Choi Kyung-soo in a press briefing on Thursday.“We intend to rise

July 2, 2015

Hana presses KEB union to accept merger schedule

Hana Financial Group on Thursday issued a de facto ultimatum to the labor union of Korea Exchange Bank, calling on its leaders to scrap their opposition to the planned merger between Hana Bank and KEB.The pressure from Hana came amid a reported situation that the group could face a heavier tax burden if the consolidation process is not completed in the third quarter.“If Hana and Korea Exchange fail to see the completion of their integration by the end of September, (the group) would be disqualif

July 2, 2015

Seoul shares up 0.45 pct on eased Greek risk

South Korean stocks edged up 0.45 percent Thursday, rising for the third straight day, as fresh optimism for an economic rebound offset worries about Greece's debt problem, analysts said. The local currency fell against the U.S. dollar.   The benchmark Korea Composite Stock Price Index climbed 9.44 points, or 0.45 percent, to finish at 2,107.33. Trading volume was heavy at 558.6 million shares worth 6.98 trillion won ($6.21 billion) with gainers outstripping decliners 427 to 370.   Analysts said

July 2, 2015

Seoul shares open higher on waning MERS scare

South Korean stocks began higher Thursday, on hopes that the economy will prop up as the spread of Middle East Respiratory Syndrome seems to be on track for containment, analysts said.   The benchmark Korea Composite Stock Price Index rose 7.42 points, or 0.35 percent, to 2,105.31 in the first 15 minutes of trading.   Food and hospitality stocks drove up the index, with confectionery maker Orion spiking more than 9 percent and Hotel Shilla, a major hotel chain here, jumping nearly 6 percent.   I

July 2, 2015