Shinhan Card carries out reshuffle to focus on growth

Shinhan Card, South Korea’s largest credit card company, said Monday that it has implemented a management shake-up to expand its new leading businesses and add momentum to its big data system.This was the second reshuffle since CEO Wi Sung-ho took office in 2013.“The goal was to groom the company for possible paradigm changes in the credit card market,” a spokesperson said.“The most significant change was to subdivide the new growth business department so that each corresponding sector may respo

Dec. 15, 2014

Samsung’s cross-shareholding investments decline

The number of cross-shareholding investments among affiliates of Samsung Group has decreased thanks to a recent series of shifts in its governance including the listings of key affiliates such as Cheil Industries Co. on the Seoul bourse, a market researcher said Sunday. According to a report from Chaebol.com, Samsung’s cross shareholding investment rings that connect its affiliates fell to 10 this year from 30 a year ago. Cross shareholding is a type of investment structure among affiliates of a

Dec. 14, 2014

Shares likely to fall this week

South Korean stocks are expected to extend their bearish mode this week as investors will likely take a cautious approach, weighed by policy uncertainties in the U.S. and Japan, analysts said. The benchmark Korea Composite Stock Price Index declined 3.27 percent to close at 1,921.71 last Friday, the lowest since Oct. 16.The yen’s steep descent against the U.S. dollar has put downward pressure on the main index, with shares of major automakers losing ground as they are most affected by currency v

Dec. 14, 2014

Korea to control loans by nonbank institutions

South Korea’s financial authorities are moving to rein in rising loans extended by nonbank institutions in their efforts to control household debts mounting from low borrowing costs and eased mortgage lending, industry sources said Thursday.Measures would include stricter guidelines on lending backed by commercial buildings and lands, they said.Nonbank institutions, cooperative financial entities in particular, have accelerated their lending backed by property as customers were taking advantage

Dec. 11, 2014

Financial watchdog chief stresses principle-based supervision

South Korea's financial watchdog will conduct its supervisions based on principle and also cut the number of routine examinations, its chief said Thursday, in a bid to restore confidence in the country's financial sector.Speaking at a breakfast meeting with heads of foreign financial firms operating here, Jin Woong-sub, governor of the Financial Supervisory Service, said supervision would be principle-based rather than tied to a rigid system of regulations.The number of routine examinations will

Dec. 11, 2014

BOK keeps base rate unchanged at 2 pct

In a widely expected move, South Korea's central bank left the base rate unchanged at a record low of 2 percent on Thursday as it juggles a mix of economic factors ranging from growing household debt to falling global oil prices."The monetary policy committee thought it was desirable to keep the base rate at the current level to monitor recent changes in external circumstances, especially the movement of global oil prices and the foreign exchange rate, as well as the impact of two earlier rate c

Dec. 11, 2014

Seoul shares plunge 1.3 pct on China woes

South Korean stocks closed 1.3 percent lower Wednesday, as investors were unnerved by China's change of regulations in short-term borrowing to curb excessive leveraging, analysts said. The local currency gained ground against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) slid 25.39 points, or 1.29 percent to finish at 1,945.56. Trading volume was moderate at 358.9 million shares worth 3.81 trillion won (US$3.45 billion) with decliners outstripping gainers, 568 to 236. 

Dec. 10, 2014

Banks' household lending grows 6.9 tln won in Nov.

Household loans extended by South Korean lenders continued to rise quickly, growing 6.9 trillion won(US$6.2 billion) from the previous month in November, data showed Wednesday.Outstanding household loans by local lenders reached 554.3 trillion won as of end-November following a six-year high gain of 6.9 trillion won in October, according to the preliminary data by the Bank of Korea (BOK).Of the total, mortgage loans accounted for 400.7 trillion won, increasing 5.9 trillion won from the previous

Dec. 10, 2014

Yen likely to slide faster than won

The Japanese yen has fallen twice as fast against the greenback as the Korean won, and the trend is likely to spill over into next year, analysts said Tuesday.Compared to the start of the year, the won sank 6.1 percent against the U.S. dollar whereas the yen plunged twice as fast at 13.4 percent, according to foreign exchange data. Although the South Korean government said last month that it will let the won move in tandem with the Japanese currency, addressing concerns by local exporters fearin

Dec. 9, 2014

Lenders brace for massive losses on tech firm's financial scam, bankruptcy

Five major South Korean banks are expected to suffer considerable losses as they have to write off or set aside reserves against more than 600 billion won ($541 million) in loans extended to a local home appliance maker, industry sources said Tuesday.Monueal filed for court receivership last month after admitting it was unable to pay off some 677 billion won it had borrowed from several local banks. Earlier in the day, the home appliance maker was declared insolvent. The firm's total debt reache

Dec. 9, 2014

Household loan growth hits record high in Oct.

Household loans extended by South Korean financial institutions grew at a record pace in October as mortgage loans sharply rose, data showed Tuesday, following government measures to jolt the ailing property market.Outstanding household lending by local lenders and non-banking institutions increased 7.8 trillion won (US$7 billion) in October from a month earlier to 730.6 trillion won, according to the Bank of Korea (BOK).The October growth, compared with a 5.6 trillion won gain in the previous m

Dec. 9, 2014

Korean won hits 15-month low vs dollar

The South Korean won dropped to the lowest level in 15 months on Monday, following other currencies’ moves against the greenback as upbeat job data in the U.S. fueled speculation of a hike in borrowing costs in the world’s largest economy.The local currency closed at 1,117.7 per dollar, down 3.6 won from Friday’s close, after falling to as low as 1,121.70 at one point.The closing price marks the lowest since Aug. 22, when the comparable figure was 1,123.00 won.Data released Friday showed that th

Dec. 8, 2014