South Korea's home transactions soared nearly 30 percent in April from a year earlier, the government said Sunday, pointing to a possible recovery of the housing market.The number of home transactions came to 120,488 in April, up 29.3 percent from a year earlier and 7.7 percent from the previous month, according to the Ministry of Land, Infrastructure and Transport.It marks the highest growth rate ever for April since the country began compiling related data in 2006, the ministry said.April's su

May 10, 2015

South Korea's savings banks posted net profit for three straight quarters in fiscal 2014 on the back of decreased loan-loss reserves, the financial watchdog said Sunday.The combined net income of 79 savings banks operating in the country came in at 344.3 billion won ($316 million) in the period from July last year to March this year, a turnaround from a deficit of 476.8 billion won a year ago, according to the Financial Supervisory Service (FSS).Since they turned to black in the July-September p

May 10, 2015

A chief regulatory official on Friday hinted at a drastic easing of regulations on financial firms’ advancements overseas in an effort to help businesses overcome low profitability in the saturated domestic market.During his meeting with executives from major financial firms in Seoul, Financial Services Commission chairman Yim Jong-yong said that the authority “would review all regulations (on their overseas business) from square one to help them tap into foreign countries.”Yim said it was diffi

May 8, 2015

Cash management accounts have drawn a large amount of funds as investors prefer parking their money in short-term investment vehicles rather than bank deposits amid record-low interest rates, data showed Friday. A cash management account refers to a type of account offered by brokerage houses and other financial institutions that allows an account holder to trade equities while earning interest on cash balances. The net asset value of CMAs reached 49.98 billion won ($45.69 million) as of the end

May 8, 2015

Finance Minister Choi Kyung-hwan called for swift parliamentary passage of the controversial year-end tax bill so that millions of taxpayers would be able to receive redemption on time. The bill, having failed once to pass the April plenary session, addresses reduction of tax imposed on the taxpayers whose annual income is 55 million won or under. “If the bill misses the May 11 deadline (to pass the National Assembly) 6,880,000 taxpayers will be unable to get their year-end tax work processed,”

May 7, 2015

South Korea is closely monitoring the foreign exchange market and carefully assessing the impact of a weak Japanese yen, the country's top economic policymaker said Thursday.In a meeting of economy-related ministers, Choi Kyung-hwan said the weak yen is putting local carmakers, steel mills and other products that compete directly with goods made in Japan, at a disadvantage in overseas markets."One way to turn the weak yen to the country's advantage is to get companies to buy more capital goods f

May 7, 2015

The financial authority has decided to allow nonfinancial companies to establish Internet-based banks, which are currently allowed only for stock brokerages, insurance firms and second-tier financial firms, by easing regulations on bank ownership. Detailed guidelines will be announced in the coming weeks, the Financial Services Commission said Wednesday. The FSC also unveiled aggressive plans to foster the country’s financial technology industry, a move to create a lucrative melting pot of infor

May 6, 2015

The state-run Export-Import Bank of Korea has come under fire for failing to properly evaluate companies’ financial soundness when giving out loans or credit approvals.With over 100 of its loan-borrowers having gone out of business, the state-run policy bank is now at the risk of losing up to 1.3 trillion won ($1.2 billion).Among companies that have taken loans from the bank since 2011, a total of 102 have entered court receivership, according to data released Wednesday by Rep. Park Won-suk, a l

May 6, 2015

South Korea's top financial regulator said Wednesday that it will pave the way for local banks to invest in financial technology firms as part of its efforts to boost the integration of the two industries.According to current financial laws, financial institutions are allowed to buy stakes in or make contributions only to companies in the same business sector.In a report submitted to the presidential office, the Financial Services Commission said it will clarify the definition of "same business

May 6, 2015