Hana Bank chief resigns prior to KEB merger

Hana Bank president Kim Jong-jun said on Thursday that he would resign next month as the bank’s merger with the Korea Exchange Bank is imminent. Kim had vowed to step down when Hana’s plan to merge with KEB was finalized, adding that he would fulfill his commitments as the bank president regardless of the decision.“I’ve decided to step down for the company’s development in a timely manner for Hana and KEB’s joint board meeting for the merger,” Kim said in a statement. “I hope executives from bot

Oct. 31, 2014

Mortgage lending growth accelerates in October

Mortgage loans extended by South Korean banks grew at a faster pace in October from the previous month, industry data showed Thursday, stoking concerns that the country’s household debts could be further exacerbated down the road on the back of low borrowing costs and eased property market rules. The outstanding home-backed loans extended by Kookmin Bank, the country’s biggest mortgage lender, came to 84.63 trillion won ($80.32 billion) as of Oct. 28, up nearly 1 percent, or 836.5 billion won, f

Oct. 30, 2014

S. Korea's financial system stable but faces potential risks: BOK

South Korea's financial system is mostly stable but faces potential risks stemming from the U.S. and the Chinese economies as well as household debt and weakening corporate profit at home, a central bank report said Thursday.The U.S. Federal Reserve's rate hike and China's weakening growth are short- and long-term issues that may "considerably"affect the Korean economy, the Bank of Korea (BOK) said in a semiannual financial stability report.The central bank forecast the impact to be stronger if

Oct. 30, 2014

Card spending growth highest in almost 2 years

South Korea’s credit card spending grew in the third quarter at the sharpest pace in almost two years, data showed Wednesday, pointing to a recovery in domestic demand from the deep trough that followed April’s deadly ferry disaster.Purchases made with credit cards reached 147.17 trillion won ($141 billion) in the July-September period, growing 6.3 percent from a year earlier, according to the data compiled by the Credit Finance Association. The third quarter gain marks the highest since the 10

Oct. 29, 2014

New KB Financial chief to hold dual posts of chairman, bank president

The new head of KB Financial, South Korea's second-largest banking group, said Wednesday that he will hold the dual posts of chairman and bank president for the time being so as to strive for stability in the conglomerate that has been rocked by internal conflict.   In a meeting with reporters right after holding talks with members of the board, Yoon Jong-kyoo stressed that it's necessary for him to keep the two posts, so the banking group can overcome its past troubles and concentrate on moving

Oct. 29, 2014

Bullish equity markets do not mean recovery: WFE chair

The rather bullish global equity markets today do not signify a recovery from the protracted economic slump but are instead driven by worldwide monetary policies that have increased liquidity, the chairman of the World Federation of Exchanges said Tuesday. “We continue to see bull markets in many equity markets of the world,” said Andreas Preuss at the WFE 54th General Assembly held in Seoul. “However, this is largely driven by a very generous monetary policy aimed at stimulating growth in the w

Oct. 28, 2014

Seoul shares edge down ahead of U.S. meeting

South Korean stocks closed slightly down Tuesday as investors took a wait-and-see stance before the U.S. Federal Reserve's scheduled monetary policy meeting, analysts said. The local currency gained ground against the U.S. greenback.The benchmark Korea Composite Stock Price Index (KOSPI) shed 6.29 points, or 0.33 percent, to 1,925.68. Trading volume was heavy at 405.3 million shares worth 3.75 trillion won (US$3.57 billion), with decliners outnumbering advancers 506 to 303.Analysts said investor

Oct. 28, 2014

KRX to host world exchanges’ forum this week

Stock exchange operators from around the world are to gather in Seoul this week to discuss the future of the capital market and new business opportunities, according to the local bourse operator Korea Exchange. The World Federation of Exchanges will hold its general assembly and annual meeting on Tuesday and Wednesday at the Grand Hyatt Seoul, with Korea Exchange serving as host. This is the second time for South Korea’s state-run stock operator to host the event since it joined the organization

Oct. 27, 2014

Derivatives trading volume plunges on bearish stock market

The trading volume of financial derivatives on the local bourse fell in September as demand for such instruments declined amid a bearish run on the local stock market, data showed Monday.The daily average trading volume of the derivatives, including futures and options, reached 20.44 trillion won ($19.43 billion) last month, a sharp drop from the record high of 57.2 trillion won tallied in August 2011, according to the data compiled by the Korea Exchange.The daily turnover of such financial deri

Oct. 27, 2014

Regulator to sell minor stake in Woori Bank

The South Korean top financial regulator said Monday that it will dispose of a minor stake in Woori Bank held by the government as part of a process to privatize the local major lender. The Public Fund Oversight Committee under the Financial Services Commission will sell an estimated 18 percent of the 26.97 percent stake in the bank, which is held by the state-run Korea Deposit Insurance Corp., the FSC said. The stake will be sold to multiple investors through open bidding and the buyers will be

Oct. 27, 2014

Korean investors flocking to Hong Kong-listed stocks

South Korean investors have increased their exposure to stocks traded on the Hong Kong stock market this year ahead of a scheduled stock trading link between Hong Kong and mainland China, data showed Monday.According to the Korea Securities Depositary Corp., local investors bought a net $152 million worth of shares listed on the Hong Kong stock market during the July-September period, slightly surpassing the net purchase of $151 million worth of all other overseas stocks.Comparative figures for

Oct. 27, 2014

Hyundai-Kia’s world market share hits 9% in Q3

South Korea’s carmakers Hyundai Motor and Kia Motors held onto their shares of the world automotive market in the third quarter of this year despite the strengthening local currency and a global economic slowdown, industry data showed Sunday.According to the data, Hyundai and Kia, the flagships of Hyundai Motor Group, sold a combined 1.89 million cars in the July-September period, up 2.7 percent from a year ago.The figure accounted for 9 percent of the global automotive demand of 20.9 million es

Oct. 26, 2014

Hyundai-Kia’s world market share hits 9% in Q3

South Korea’s carmakers Hyundai Motor and Kia Motors held onto their shares of the world automotive market in the third quarter of this year despite the strengthening local currency and a global economic slowdown, industry data showed Sunday.According to the data, Hyundai and Kia, the flagships of Hyundai Motor Group, sold a combined 1.89 million cars in the July-September period, up 2.7 percent from a year ago.The figure accounted for 9 percent of the global automotive demand of 20.9 million es

Oct. 26, 2014

S. Koreans flock to high-risk, high-profit financial instruments

South Korean investors have been raising their bets this year by putting their money into higher-profit, higher-risk financial instruments, trying to do better than the country's deposit rate of around 2 percent, industry data showed Sunday.According to the data, seven local banks including Kookmin Bank and Shinhan Bank sold 5.3 trillion won (US$5 billion) worth of equity-linked trusts (ELTs) and equity-linked funds (ELFs) during the first nine months of the year.The outstanding amount of the tw

Oct. 26, 2014

Standard Chartered aims to foster S. Korea as renminbi hub

British banking group Standard Chartered aims to foster South Korea as the hub for renminbi internationalization amid the Chinese currency's increasing clout in the global market, its board chairman said in an interview."If the global economy is to grow successfully in the future, currency is going to be an important part of that. That is why we believe the internationalization of the renminbi is going to be part of the economic story," John Peace told Yonhap News Agency in an Oct. 23 interview

Oct. 26, 2014

S. Korea, Australia, Indonesia absent as China launches regional bank

South Korea, Australia and Indonesia on Friday did not join the launch of a regional bank led by China to fund infrastructure projects in Asia, amid Washington's concerns over the new regional lender as it competes with established multilateral lenders such as the Asian Development Bank (ADB). China is pushing to set up the Asia Infrastructure Investment Bank (AIIB) as a counterbalance to the ADB and the World Bank, dominated by the United States, Japan and Western economic powers, as it seeks t

Oct. 24, 2014