Job data reflects manufacturing, youth frustration

South Korea’s jobless rate inched up in January, as job conditions in the manufacturing sector continued to deteriorate and more young people stopped looking for work, government data showed Wednesday. The jobless rate in January stood at 3.8 percent, up 0.1 percentage point from a year earlier, data from the Ministry of Strategy and Finance showed. It marks the highest since April 2016, when the tally was 3.9 percent.  The number of jobless people exceeded the 1 million mark in Ja

Feb. 15, 2017

Stock market left unperturbed by the assassination of Kim Jong-nam

The assassination of North Korean leader Kim Jong-un’s half-brother, Kim Jong-nam, is likely to have a minimal impact on the South Korean stock market.Lee Kyung-min, a researcher working for Daishin Securities, said to local media, “Kim Jong-un’s aggressive action may shrink the investor’s confidence, but the effect will be limited, since Kim Jong-nam did not have a specific role in the relationship among the two Koreas and China.” (Yonhap)Although investor confidence may drop due to potential d

Feb. 15, 2017

Household debt up 12% last year

South Korea's household loans jumped 12 percent last year from a year earlier as people borrowed more from financial institutions to buy homes and invest in businesses, the central bank said Wednesday.The outstanding loans extended to households came to 1,154.6 trillion won ($1.01 trillion) as of the end of December last year, compared with 1,030.6 trillion won from a year earlier, the Bank of Korea said in a report submitted to the parliament. (Yonhap)South Korean officials view an increase in

Feb. 15, 2017

1 out of 4 employees in financial sector earn more than W100m

One out of four employees in South Korea's financial sector earned more than 100 million won ($87,000) last year, a report showed Wednesday.The report submitted to the Financial Services Commission by the Korea Institute of Finance said 24.8 percent of employees at 1,389 financial firms earned more than 100 million won last year. (Yonhap)In comparison, the ratio came to 9.9 percent in 2012 before jumping to 16.5 percent in 2013 and 19.2 percent in 2014.The report said 32.9 percent of those who w

Feb. 15, 2017

IBK’s net profit inches up on SME loans

The Industrial Bank of Korea, which focuses on corporate lending for small and medium sized companies, said its net profit slightly rose 1.2 percent on-year to 1.16 trillion won in 2016, mainly due to growth of SME loans.If its subsidiaries IBK Capital and IBK Investment & Securities are excluded, the bank’s net profit increased 0.3 percent last year from 2015, the bank said in a public filing.The state-run bank’s net interest margin was 1.91 percent in 2016, unchanged from the previous year.The

Feb. 14, 2017

Watchdog says dormant financial assets reach W4.38tr

South Korea's financial watchdog said Tuesday that the total amount of dormant financial assets reached 4.38 trillion won ($3.8 billion) last year as customers forgot to withdraw their deposits or redeem rewards points.Among them, credit card rewards points accounted for half with 2.19 trillion won as of the end of September, according to the Financial Supervisory Service. (Yonhap)Credit card rewards points usually expire after a certain period unless customers redeem them.Unclaimed assets from

Feb. 14, 2017

State-backed firm to help improve Hyundai Merchant's financial status

A state-backed ship financing firm will buy stocks and debts to be sold by Hyundai Merchant Co., a major shipping firm here, as part of efforts to help jack up its financial status, a senior financial regulator said Tuesday.Korea Shipping Co. was established this month with an initial capital of 1 trillion won ($878 million) to help local shipping lines buy new vessels. (Yonhap)The measures aim to support local shipping firms, as well as shipbuilders, struggling with falling new orders and mount

Feb. 14, 2017

SC Bank launches new mobile app

Standard Chartered Bank Korea said Tuesday it has launched a new smartphone app, Self Bank, to allow customers to open new SC Bank accounts without visiting its branches. The app’s services also encompass deposits, credit and check card subscriptions as well as internet banking. Consumers can also use it to check their personal lending limits and interest rates for various loans, the British bank’s Korean unit said.To open an account, a user must first download the app, take a picture of his or

Feb. 14, 2017

[Herald Interview] ‘Trump, rising oil will boost MLP funds’

The Donald Trump administration’s massive support to build energy infrastructure in the US and a recovery of global oil prices will boost the performance of MLP funds for the next several years, a chief investment officer of a US asset management firm has said.MLP funds are those investing in US companies called master limited partnerships, which operate energy pipe lines and transportation and storage firms for shale gas and oil. In Korea, there are two MLP funds operated by Korea Investment Ma

Feb. 14, 2017

State pension fund to receive over W1tr in stock dividends from conglomerates

South Korea's state pension fund is expected to receive over 1 trillion won ($869 million) in stock dividends from the country's top 30 conglomerates, sharply up 20 percent from last year's tally, industry data showed Tuesday.Industry tracker CEO Score analyzed dividend payments planned by the conglomerates-affiliated 97 companies in which the National Pension Service has stakes of over 5 percent. (Yonhap)Of the surveyed firms, 65 firms announced their stock dividend payment plans, with the stat

Feb. 14, 2017

Shareholder meetings to kick off in March, but corporate watchers expect mundane results

The season of shareholder meetings begins in mid-March, again clustered on the same set of days which consequently prevents investors from attending or making meaningful contributions, officials in the financial community said Tuesday.As in previous years, companies have picked Fridays of mid- and late March for the meetings. Of the 131 listed firms who close their books in December, more than half of them, 68, chose March 24. (Yonhap)Others like POSCO will hold the meeting on March 10, LG Displ

Feb. 14, 2017

North Korea’s missile launch limited on financial markets

North Korea’s missile launch Sunday had little impact on South Korea’s financial markets Monday. North Korea on Sunday morning launched the Pukguksong-2 missile, which North Korea’s state news agency described as a “surface-to-surface medium- to-long-range ballistic missile.”  Despite the heightened tension, South Korea’s bourses remained stable Monday. The benchmark Korea Composite Stock Price Index opened 0.01 percent lower but closed up 0.17 perce

Feb. 13, 2017

Korea contributes $41.7m to World Bank in 2016

South Korea provided a combined $41.7 million to three trust funds created by the World Bank last year, with 73 projects to support developing countries, the finance ministry here said Monday.Some $28 million was invested into the Korea-World Bank fund in 2016, while $11 million and $2.7 million went to the Korea Green Growth Trust Fund and the Poverty Reduction Fund, respectively, according to the Ministry of Strategy and Finance. (Yonhap)The total amount dropped slightly from $61.5 million tal

Feb. 13, 2017

[Herald Interview] K bank will offer best rates among first-tier lenders: CEO

South Korea’s first internet-only banking firm K bank will seek to offer the best interest rates for both deposits and loans among first-tier commercial lenders in the country, leveraging its cost savings from not running brick-and-mortar branches, its CEO said.At its headquarters in Gwanghwamun in central Seoul, K bank’s some 200 employees are busy making sure all its financial transaction systems and the user interface of K bank’s smartphone app does not have any glitches, prior to the officia

Feb. 13, 2017

BOK likely to cut key rate to 0.5% in 2017

South Korea's central bank will likely cut the key rate to a record low of 0.5 percent this year as a way to boost the economy amid the US Federal Reserve's tightening stance, global financial service firm Morgan Stanley said Monday.It expected that the Bank of Korea will slash the rate three times throughout 2017 from the current 1.25 percent to 0.5 percent by the end of the third quarter. (Yonhap)Other investment banks, including Goldman Sachs and JP Morgan, also anticipate that the BOK will l

Feb. 13, 2017

Corporate deposits at banks rose by W35tr in 2016

Corporate deposits held by South Korean banks increased 10.2 percent on-year in 2016, marking the fastest growth in six years as businesses shunned major investments amid an economic downturn, data by the Bank of Korea showed Monday. Business deposits at banks rose to 383.4 trillion won ($332.4 billion) at the end of 2016, up 35.4 trillion won from the end of 2015, according to the BOK data.  (Yonhap)It was the fastest growth since 2010, when corporate deposits went up 52.5 trillion won. Househo

Feb. 13, 2017

[KOSDAQ STAR] Semiconductor, display boom boost SFA Engineering

In January, foreign investors held a record high of over 500 trillion won ($435 billion) in shares of listed companies in South Korea, according to the Finance Supervisory Service. Among the top five stocks foreigners have been collecting in the tech-heavy Kosdaq in January was SFA Engineering Corp., a display equipment and logistics equipment maker, which has been enjoying a recent boom in the semiconductor and display sectors. Foreign investors continued their buying spree for the company.

Feb. 12, 2017

Seoul bourse promotes KOSDAQ for foreign investors

South Korea's stock exchange made a pitch Friday for its tech-heavy market in a meeting with foreign investors.The Korea Exchange discussed ways to promote the secondary KOSDAQ with the representatives from around 10 foreign firms including JP Morgan and BNP Paribas. Kim Jae-joon (4th from right in the front row), chief executive officer of the Korea Exchange (KRX)'s KOSDAQ market, poses in Seoul on Feb. 10, 2017, for a photo in a meeting with representatives from foreign firms in this picture p

Feb. 10, 2017

Finance minister dismisses speculation over Korea's financial crisis

South Korea's finance minister on Thursday dismissed speculations that Asia's fourth-largest economy could suffer another financial crisis similar to one that hit the country two decades ago, citing its solid fiscal fundamentals.The talk of another crisis has recently emerged as the country has been grappling with weak exports, flagging domestic consumption and a leadership crisis triggered by the impeachment of President Park Geun-hye over a corruption scandal. Yoo Il-ho, South Korea's finance

Feb. 9, 2017

KB Financial net soars 26.2% in 2016

KB Financial Group said Thursday its net profit jumped 26.2 percent last year to exceed 2 trillion won ($1.7 billion) largely on improved profitability.The South Korean banking giant posted 2.14 trillion won in full-year net profit, up 26.2 percent from a year earlier. It marks the first time in five years for the group's net profit to top 2 trillion won. A man passes by a Seoul building of KB Financial Group and KB Kookmin Bank in this photo provided by Yonhap News TV. (Yonhap)KB cited increase

Feb. 9, 2017