Seoul shares dip to 5-month low on growth worries

South Korean stocks dropped to a five-month low on Friday as investors remained concerned over a protracted slump in the global economy, analysts said. The local currency rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index shed 24.33 points, or 1.24 percent, to 1,940.92. Trading volume was moderate at 338 million shares worth 4.35 trillion won ($4.06 billion), with losers far outnumbering gainers, 620 to 214. Friday’s closing marks the lowest since 1,939.88 on May 7. The

Oct. 10, 2014

Bond funds attract investors amid dull market, low rates

The money drawn into bond funds has nearly caught up with that for securities funds as investors chose safer assets amid a tepid stock market and rising bond yields following a recent key interest rate cut, data showed Friday. Bond-type funds amounted to a combined 58.96 trillion won ($55 billion) as of Oct. 6, while securities funds recorded 59.66 trillion won, posting the smallest gap between them since August 2007, according to the data by the Korea Exchange. Analysts say that with the stock

Oct. 10, 2014

BOK chief: monetary policy alone not enough to stimulate economy

South Korea's central bank chief said Thursday that monetary policy alone cannot stimulate Asia's fourth-largest economy, stressing that the weak investment sentiment stems mainly from structural problems.Bank of Korea (BOK) Governor Lee Ju-yeol made the remark to reporters in Washington as the BOK is set to decide its key interest rate for October next week. Lee was in Washington to attend annual meetings of the International Monetary Fund (IMF) and the World Bank Group."I believe there definit

Oct. 10, 2014

Banks forecast high corporate credit risks in Q4

South Korean banks projected the credit risks of South Korean companies to remain high in the fourth quarter of this year amid economic uncertainties, central bank data showed Thursday.An index measuring small and medium companies’ credit risks came in at 28 for the October-December period, remaining unchanged from the previous quarter, according to the survey of 16 local banks conducted by the Bank of Korea.Credit risks refer to the likelihood of borrowers being unable to repay debt. A reading

Oct. 9, 2014

Korea’s monetary stabilization bonds break W180tr

The monetary stabilization bonds issued by the nation’s central bank soared to 180.6 trillion won ($168.1 billion) during the first nine months of this year, the Bank of Korea said Thursday.The figures are up 9.5 percent from a year earlier, the bank added. The bonds grew at the fastest pace since October 2010 when MSBs surged 10.1 percent compared to the same period in 2013. This year’s increase was double the growth rate of the country’s nominal gross domestic product over the same period, the

Oct. 9, 2014

Chinese investors top S. Korean equity market

Chinese investors bought Korean shares and bonds worth 3.22 trillion won (US$3.11 billion) in the first nine months of the year to outdo investors from the United States and Japan, data showed Wednesday.China's net buying of South Korean shares amounted to 2.51 trillion won as of end-September, trailing behind the U.S. and Japan, but its purchase of 1.18 trillion won in Korean bonds far surpassed other countries to make it the No. 1 source of foreign investment in South Korea, according to the F

Oct. 8, 2014

Korean, Japanese finance ministers to discuss bilateral ties

The finance ministers of South Korea and Japan are to hold a meeting this week to discuss the latest global economic conditions and ways to expand bilateral financial cooperation, Korea’s Finance Ministry said Tuesday.The meeting will be held between Korean Finance Minister Choi Kyung-hwan and his Japanese counterpart, Taro Aso, on Friday in Washington on the sidelines of the annual gathering of the International Monetary Fund and the World Bank, according to the ministry.The meeting marks the f

Oct. 7, 2014

Foreign investors’ stock buying tops W8tr this year

Foreign investors’ buying of local stocks so far this year has topped the 8 trillion won mark, sharply rising from last year’s 3.4 trillion won, data showed Monday.Overseas investors bought local stocks worth a combined net 8.3 trillion won ($7.76 billion) on the Seoul bourse in the January-September period, according to the data by the Korea Exchange. They bought 5.2 trillion won worth of local stocks in the third quarter, following a net buying of 5.88 trillion won the previous quarter.Foreign

Oct. 6, 2014

Korean card firms paid W200b in fees to Visa, MasterCard

South Korea’s credit card firms paid more than 200 billion won ($186.7 million) in fees to the world’s two largest payment-services providers Visa Inc. and MasterCard Inc. last year, financial data showed Monday. According to the data, local card firms gave a commission of 124.6 billion won to the two foreign card companies for the use of their card names in 2013. They also paid them 29.5 billion won in fees in return for using their global networks and 50.1 billion won in card issuance and main

Oct. 6, 2014

Financial watchdog on lookout for yuan market problems

Investors are increasingly converting their deposits to Chinese renmibi, seeking yields in a cheap money market. This is good news for global banks here, but for financial authorities, it is a budding concern.The Financial Supervisory Service recently started an overall assessment on the renmibi deposit market, expressing concerns on the overvaluation of the Chinese currency.“So far, we have detected no apparent problems in the soundness of renmibi deposits or trade,” said an FSS official.“But t

Oct. 6, 2014

Seoul shares close lower on currency woes

South Korean stocks extended their loss to the seventh consecutive day on Monday as the won’s sharp decline to the U.S. dollar stoked concerns of an outflow of foreign capital from the local stock market, analysts said. The local currency dropped against the U.S. dollar.The benchmark Korea Composite Stock Price Index shed 7.86 points, or 0.4 percent, to 1,968.30. Trading volume was moderate at 315 million shares worth 4.2 trillion won ($3.93 billion), with losers outnumbering gainers, 483 to 357

Oct. 6, 2014

Financial regulator to ease regulation of e-commerce

South Korea's chief financial regulator said Monday he will give more autonomy to financial companies in choosing security programs for their online payment systems in an effort to simplify Internet purchases."I will let financial firms choose their security programs for online payment systems," Financial Services Commission (FSC) Chairman Shin Je-yoon said in a meeting with officials from IT ventures and electronics firms including Daum Kakao, LG Uplus Corp., Samsung Electronics Co. and eBay Ko

Oct. 6, 2014

Seoul shares to remain bearish on earnings, currency woes

The South Korean stock market is likely to continue its downward march this week as investors remain cautious over the volatile currency, downbeat corporate earnings, and foreign investors’ massive sell-offs, analysts said Saturday.The benchmark Korea Composite Stock Price Index lost some 2.5 percent to close at 1,976.16 last Thursday over the previous week, the lowest since June 23 when it closed at 1,974.92 points, as foreign investors dumped market heavyweights amid increased currency risks a

Oct. 5, 2014

Investors’ appetite growing for corporate bonds

Demand for South Korean corporate bonds is on a sharp rise as cash-rich investors, searching for alternatives in a low-rate environment and dull stock market, snatch up such debts ahead of another expected rate cut by the country’s central bank, industry data showed Wednesday.According to the data, investors proposed buying 1.06 trillion won ($1.01 billion) worth of corporate debt in the past week, up from 590 billion won a week earlier.Analysts said a growing appetite for corporate debt came as

Oct. 1, 2014

Economic recovery to continue modestly: BOK official

The South Korean economy is forecast to continue its modest recovery pace, a central bank official said Tuesday, amid growing concerns that Asia’s fourth-largest economy may be slowing down as domestic demand lags.“While we have to judge whether the ups and downs in economic indicators are temporary or stem from fundamental changes, as of now, we believe that the modest recovery trend will continue,” Bank of Korea Deputy Governor Kim Jun-il told reporters in a news conference. Kim, however, adde

Sept. 30, 2014

Finance minister urges business leaders to make active investment

South Korea’s finance minister on Tuesday called on business leaders to step up investment in order to help the government revitalize the sluggish economic recovery. “At a time when the situations are not favorable at home and abroad, what we need the most is entrepreneurship,” Finance Minister Choi Kyung-hwan said during a meeting with dozens of senior businessmen in Seoul. “Our economy is facing a golden time that will determine whether it makes a leap forward or falls into a recession.”Choi u

Sept. 30, 2014