S. Korean banks' loan delinquency rate edges up in Oct.

The delinquency rate on loans extended by South Korean banks edged up in October from a month earlier as new debts were added, the financial watchdog said Thursday.  The average delinquency rate for bank loans stood at 0.90 percent at the end of October, up 0.04 percentage point from a month earlier, according to the Financial Supervisory Service (FSS).   The amount of fresh bad loans worth 1.8 trillion won (US$1.62 billion) outweighed the 1.3 trillion won worth of cleared bad debts in October. 

Nov. 27, 2014

Bank lending rates sink to new low in Oct.

Bank lending rates for new loans in South Korea tumbled to a new low last month, with the pace of the decline quickening from September, central bank data showed Thursday.   The average rate for new loans to households, companies and other organizations reached 4 percent in October, down 0.14 percentage point from the previous month, according to the Bank of Korea (BOK). It is the lowest level since the central bank began compiling the data in 1996.  The monthly fall marks the steepest decline s

Nov. 27, 2014

S. Korea logs current account surplus for 32nd month

South Korea posted a current account surplus for the 32nd straight month in October on a rise in exports and a fall in dividend payments overseas, data showed Thursday.  The current account surplus reached US$9.01 billion last month, compared with a revised $7.41 billion in September, according to the preliminary data by the Bank of Korea (BOK). The current account is the broadest measure of cross-border trade.   With the October data, the country's accumulated current account surplus during the

Nov. 27, 2014

Korean won in 4-day advance

The South Korean won rose against the U.S. dollar on Wednesday, extending its winning streak to a fourth day as it tracked peers’ moves against the greenback.The won closed at 1,106.50, up 2.60 won from the previous session’s close, after rising to as high as 1,106.20 won at one point.Analysts said the dollar’s recent rally was taking a breather, given mixed data from the U.S. economy.The U.S. economy grew at a faster-than-expected clip in the third quarter while separate data on U.S. consumer c

Nov. 26, 2014

Korea to ease investment regulations to boost stock market

South Korea will ease the stock investment limit for the state postal service agency as part of a comprehensive strategy to help invigorate the slumped local stock market and strengthen the market’s role in providing corporate capital, the financial regulator said Wednesday.Korea Post, one of the country’s biggest public funds, will be able to invest in securities with up to 20 percent of its deposited funds, up from the current limit of 10 percent, the Financial Services Commission said.The age

Nov. 26, 2014

Stocks up 0.08% on foreign buying

South Korean stocks ended 0.08 percent higher Tuesday on an inflow of foreign capital, analysts said. The South Korean won gained ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) inched up 1.67 points to 1,980.21 near the end of the session after trading flat for most of the day. Trading volume was low at 273.79 million shares worth 6.04 trillion won ($5.45 billion), with gainers beating decliners 422 to 365. Analysts said the rise came on the back of net bu

Nov. 25, 2014

Korea’s household credit hits new high in Q3

Household credit in South Korea extended its record-breaking streak to the third quarter, with its quarterly growth picking up from three months earlier on increased mortgage lending, data showed Tuesday.Household credit totaled 1,060.3 trillion won ($952.5 billion) as of end-September, up 22 trillion won from a revised 1,038.3 trillion won in the second quarter, according to the Bank of Korea. The third-quarter gain is nearly double the 13.4 trillion won increase in the previous quarter. It als

Nov. 25, 2014

Korea tightens real-name financial system

All types of ill-intended monetary transactions under borrowed names will be banned from later this week in South Korea as the government fills up loopholes in the law to tighten the real-name financial system, the financial regulator said Tuesday.The revisions to the Act on Real Name Financial Transaction and Confidentiality, approved by the Cabinet earlier in the day, enable punishment of all parties involved in transactions using the names of others. Until now, only financial institutions wer

Nov. 25, 2014

New KB Financial head expresses strong will for LIG takeover

The chief of KB Financial Group Co. on Tuesday reaffirmed his strong will to acquire a non-life insurance company, a bid the top financial regulator has delayed approving until the banking group shapes up its sloppy governance structure.   "I still strongly desire to take over LIG Insurance," KB Financial Chairman Yoon Jong-kyoo told reporters in a press conference at the company's Seoul headquarters.  "The Financial Services Commission (FSC) has to give us the final nod for the takeover, so we

Nov. 25, 2014

S. Korea tightens real-name financial system

All types of ill-intended money transactions under borrowed names will be banned from later this week in South Korea as the government fills up loopholes in the law to tighten the real-name financial system, the financial regulator said Tuesday.   The revisions to the Act on Real Name Financial Transaction and Confidentiality, approved by the Cabinet earlier in the day, enable punishment of all parties involved in transactions using names of others. Until now, only financial institutions were he

Nov. 25, 2014

Regulator to delay approval of KB Financial's takeover

The South Korean top financial regulator will likely delay giving approval for KB Financial Group Co.'s takeover of LIG Insurance Co., the No. 4 non-life insurer, citing the banking group's sloppy reform for governance structures after its internal strife, officials said Tuesday.   The country's second-largest financial holding company by asset had been rocked by internal conflict as leaders of KB Financial and its flagship Kookmin Bank clashed over the bank's costly computation system change.  

Nov. 25, 2014

Largest Korean-American bank to come to S. Korea

BBCN Bank, the largest Korean-American bank that has mostly focused on ethnic Korean customers in the United States, said Monday it is set to start business here to support Korean companies entering the U.S.    "BBCN Bank plans to officially open its Seoul office in November and prepare to open a Seoul branch within 1-2 years," the lender said in a statement released ahead of a ceremony marking its Korea expansion.   "BBCN Bank, which is the first among Korean-American banks to expand into South

Nov. 24, 2014

Tax agency launches probe into medicine rebates

Major South Korean pharmaceutical companies may soon face a heavy penalty, with the Seoul Regional Tax Office investigating into charges of their tax evasion using illegal sales practices, according to industry sources. Seoul’s tax probe came after the National Tax Service found out irregular activities by some drug manufacturers during their regular tax audit that began last year. Jeil Pharmaceutical, Green Cross, Ahngook Pharm, Daewoong Pharmaceutical, Ildong Pharmaceutical and Dong-A ST are a

Nov. 23, 2014

Banks’ overseas earnings jump 32.1% in H1

South Korean banks saw their combined net profit from overseas operations jump 32.1 percent in the first six months of the year from a year earlier due mainly to a drop in bad debt expenses and a rise in interest income, the financial watchdog said Sunday.Earnings by 156 overseas units and branches of local lenders stood at $373.4 million in the January-June period, compared with $282.7 million the previous year, according to the Financial Supervisory Service.The overseas income accounted for 10

Nov. 23, 2014

Seoul stocks likely to creep up on signs of global economic recovery

South Korean stocks are predicted to pull off modest gains this week as the global economy, led by the United States, may grow steadily at least until early 2015, analysts said Saturday.The benchmark Korea Composite Stock Price Index finished at 1,964.84 last Friday, up 1.01 percent, or 19.7 points, from a week earlier.The increase came as data emerging from the world’s largest economy showed signs of improvement in key areas such as real estate, manufacturing and the job market.Predictions of m

Nov. 23, 2014

S. Korean banks' overseas earnings jump 32.1 pct in H1

South Korean banks saw their combined net profit from overseas operations jump 32.1 percent in the first six months of the year from a year earlier due mainly to a drop in bad debt expenses and a rise in interest income, the financial watchdog said Sunday.Earnings by 156 overseas units and branches of local lenders stood at US$373.4 million in the January-June period, compared with$282.7 million the previous year, according to the Financial Supervisory Service (FSS).The overseas income accounted

Nov. 23, 2014