The Korea Herald

S. Korean firms' cash reserves hit record high

Major South Korean companies are sitting on more cash than ever as they remain reluctant to boost investment and dividends amid the stagnant economy at home and abroad, data showed Monday. The cashable assets held by the nation's top 500 companies hit a record 158 trillion won (US$143.6 billion) as of end-September, adding 8 trillion won from the end of 2013, according to data compiled by the Bank of Korea. Cash piles at major companies jumped from 94.6 trillion in 2007 to 130 trillion won in 20

Feb. 16, 2015

Korea considers ban on Canadian beef imports

South Korean quarantine authorities are examining Canadian beef imports, following a recent notification from the Canadian government of an outbreak of bovine spongiform encephalopathy, or mad cow disease.The Ministry of Agriculture, Food and Rural Affairs said Sunday that Canadian beef imports here could be categorically banned if found to pose a substantial threat to public health.“We were notified by the Canadian Embassy to Korea on Feb. 11, Canada time, that a full-grown cow at a ranch in Al

Feb. 15, 2015

Korea Exchange Bank in emergency mode

Korea Exchange Bank is to initiate an emergency management system amid pressure by its sluggish business performance and deadlocked merger with Hana Bank.In addition to their pledge to focus on sales activities, the bank president and executive members decided to return part of their wages as a show of determination.During an executive workshop held on Saturday in Yongin, Gyeonggi Province, KEB president Kim Han-jo declared the launch of the emergency management system, officials said Sunday.“(T

Feb. 15, 2015

Korean economy faces numerous risks: IMF

The International Monetary Fund said Friday that the South Korean economy faces numerous downside risks to growth, forecasting a weaker-than-anticipated outlook for this year.Korea’s aging population, unsustainable reliance on manufacturing for growth, vulnerable household debt levels especially among low-income earners and weak consumer expectations are some of its domestic challenges.A prolonged weak Japanese yen, rising global deflation on the back of falling oil prices and weak growth outloo

Feb. 13, 2015

Hyundai Heavy workers win ordinary wage suit

A court ruled Thursday in favor of unionized workers at Hyundai Heavy Industries, the world’s largest shipbuilder, in an “ordinary wage” lawsuit. In its ruling, the Ulsan District Court said that the company should calculate regular bonuses it paid to workers as base pay.In 2010, 10 union members of the company filed a lawsuit, demanding bonuses and other benefits be considered “ordinary pay,” which is used to calculate a range of benefits, from overtime payments to annual raises.The shipbuilder

Feb. 13, 2015

Eximbank to support ASEAN development

The Export-Import Bank of Korea has agreed to loan the Cambodian government $56 million for the renovation of key highways in southern Cambodia. Eximbank chairman and president Lee Duk-hoon met with Cambodian Finance Minister Aun Porn Moniroth on Thursday to ink the loan contract in the government complex in Phnom Penh. The loan will be used to renovate Cambodia’s highways Nos. 2 and 22, which connect Phnom Penh and the southern border with Vietnam. “The Cambodian state project aims at enhancin

Feb. 12, 2015

Korea’s monetary policy put to test

South Korea’s consumer inflation rate fell below that of the average of the G7 economies last year for the first time in eight years, according to data by the Organization for Economic Cooperation and Development.Korea’s annual inflation rate stood at 1.3 percent last year, compared to the G7 average of 1.6 percent. The G7 economies are the U.S., Japan, the U.K., France, Germany, Italy and Canada.Korea’s inflation rate also fell below the G7 average in 1999 and 2006.Falling global oil prices and

Feb. 12, 2015

KEB woes faze Hana Financial

Hana Financial Group chairman Kim Jung-tae has been doggedly pursuing the long-awaited merger of Hana Bank and Korea Exchange bank, but it may prove to be very costly.The nation’s No. 2 banking group recently experienced a severe setback in the stock market after being handed down a court injunction to suspend the Hana-KEB merger process until June.But even if the merger were to make progress as planned, the group is likely to suffer the financial consequences of embracing KEB given its recently

Feb. 12, 2015

Carbon market flops in first month

Korea’s emissions rights exchange has remained dormant since its launch last month, as companies refrained from trading, data showed on Wednesday. Since its opening on Jan. 12, total trading volume stood at just 11.5 million won ($10,500), or 1,380 tons of carbon credits, Korea Exchange reported.Actual trading occurred on only four days, the main bourse operator said. The trading volume was the largest on the first day at 9.74 million won, or 1,190 tons. For the next two days, however, the volum

Feb. 11, 2015

Korea Investment Partners invests in tech startup ZOYI

Korea Investment Partners, South Korea’s largest venture capital firm, said Wednesday that together with AJU IB Investment, it had invested 2 billion won ($1.8 million) in ZOYI Corporation.ZOYI is a Korean tech start-up that offers a service called “Walk Insights” enabling it to analyze customer data in real time for offline retail stores via sensors, and smartphone Wi-Fi and Bluetooth telecommunications technologies.The company analyzes data such as the number of customer visits and revisits to

Feb. 11, 2015

Seoul shares end higher on eased Greece worries

South Korean stocks closed higher Wednesday as foreign investors turned net buyers on growing hopes for a breakthrough in meetings between Greece and its European creditors over a revision of its bailout package, analysts said. The local currency weakened against the U.S. dollar. The benchmark Korea Composite Stock Price Index scored 9.84 points, or 0.51 percent, to finish at 1,945.70. Trading volume was light at 296.67 million shares worth 4.13 trillion won ($3.76 billion), with gainers surpa

Feb. 11, 2015

S. Korean banks' bad loan ratio falls in 2014

The ratio of bad loans at South Korean banks fell last year from a year earlier, including in corporate and household sectors, the financial watchdog said Wednesday.The ratio of non-performing loans held by 18 local banks stood at 1.53 percent at the end of 2014, down 0.26 percentage point from the previous year, according to the Financial Supervisory Service (FSS).Compared with the previous quarter, the ratio fell 0.19 percentage point, the FSS said.The bad loan ratio refers to the proportion o

Feb. 11, 2015

FSS to phase out routine inspections

South Korea’s financial watchdog will phase out routine inspections of local financial companies by 2017 but ratchet up punishment for rule breakers in order to establish fair and due order in the industry, its chief said Tuesday.“I will order routine comprehensive inspections only in case of financial accidents and limit on-site inspections,” Financial Supervisory Service Gov. Zhin Woong-seob said in a press conference.“Instead, I will strictly punish those who heavily, repeatedly violate finan

Feb. 10, 2015

Tax shortfall hits record high

South Korea’s Ministry of Strategy and Finance said Tuesday that the national tax revenue fell about 11 trillion won ($10 billion) short of the government’s target last year due to decreased corporate tax and value-added tax earnings.Although Korea’s tax revenue increased 3.6 trillion won to 205.5 trillion won last year, it was still 10.9 trillion won less than its target of some 216 trillion won, noted the Finance Ministry, which closed its books on gross earnings and spending for fiscal 2014.T

Feb. 10, 2015

Finance minister calls for lasting G20 commitment to growth

Korean Finance Minister Choi Kyung-hwan urged the G20 countries to carry out the reform plans that were mutually agreed on last year in order to reap real growth in coming years. “The G20 countries collaborated on more than 1,000 reform plans in 2014, and it is crucial that these agreements are actually met to yield real growth,” Choi said in a meeting with his Turkish counterpart Ali Babacan in Istanbul.Choi arrived in Turkey to attend a series of bilateral meetings, and the G20 Finance Ministe

Feb. 10, 2015

Finance minister calls for lasting G20 commitment to growth

Hana Financial picks deputy president as new bank chief

Hana Financial Group has appointed Hana Bank’s deputy president Kim Byoung-ho as the new chief of its flagship bank. Kim Byoung-hoThe group’s executive candidate selection committee, after shortlisting three candidates and interviewing two, recommended Kim for the vacant president post, officials said Monday. The appointment was confirmed at the board of directors and shareholders’ meeting.Kim has been serving as deputy president and acting president, since former chief Kim Jong-jun stepped down

Feb. 9, 2015

Hana Financial picks deputy president as new bank chief

Korea to plow W84b into farming fund

The Ministry of Agriculture, Food and Rural Affairs plans to invest 84 billion won ($76.6 million) in a “MAFRA Fund of Funds” this year to foster the nation’s food and farm industries, officials said Monday.The ministry said that it would use 50 billion won from state funds and collect the remainder from the private sector. It plans to invest the money in investors’ cooperatives or private equity funds. Ministry officials said the corpus would be invested in six funds, yet to be created within t

Feb. 9, 2015

Rapid transformation of KB Financial

KB Financial Group, Korea’s leading financial institution with the largest customer base, is undergoing rapid transformation since its new management changes last year.In less than a month after Yoon Jong-kyoo was elected chairman and CEO of the group, decision-making has been quick, such as in buying LIG Insurance Co., restructuring its organization, moving its holding company into the KB Bank building in Yeouido ― the financial district in Seoul ― and supporting fintech.There are also moves to

Feb. 9, 2015

[Herald Interview] Olympus Capital seeks diversification

For an investor to distinguish itself in the highly competitive Asian market, the key task is to select an area of business that is neither too narrow, nor too vague.Based on this principle, Olympus Capital Holdings Asia, a private equity firm with a focus on investing in Asia, has decided to target three sectors: agribusiness, environment and clean energy, and financial and business services.“There is little doubt that Asia is one of the few places where one may expect sustainable growth,” Dani

Feb. 9, 2015

[Herald Interview] Olympus Capital seeks diversification

Household tax burden doubles income gains

The tax burden on average Korean households increased twice as fast as their income did in the first three quarters of last year, Statistics Korea said Monday.The statistics bureau said two-person households each earned an average of 4.3 million won a month between January and September 2014, up 3.6 percent from the same period a year ago.Meanwhile, those households each paid monthly taxes of about 154,276 won, up 5.9 percent from a year ago.Taxes included regular direct taxes such as income and

Feb. 9, 2015