Counterfeit $100 bills rise in Korea

South Korean lenders have seen a rise in counterfeit $100 bills in the first seven months of the year following the release of the redesigned denomination with bolstered security features, data showed Tuesday.The worth of fake U.S. notes found at seven local banks reached $73,143 in the January-July period, compared with $47,576 the previous year, according to industry data. Most of the counterfeit bills in circulation were $100 bills, which are the highest denomination in the U.S. currency syst

Aug. 5, 2014

Korea's FX reserves hit new high in July

South Korea's foreign exchange reserves climbed to a new high last month, extending its record-breaking streak to a 13th straight month, central bank data showed Tuesday.The country's foreign reserves came in at $368.03 billion as of end-July, increasing by $1.48 billion from the previous month, according to the data by the Bank of Korea.Foreign reserves consist of securities and deposits denominated in overseas currencies, International Monetary Fund reserve positions, special drawing rights an

Aug. 5, 2014

Korea to see limited effects from Argentina, Russia woes: FSS

South Korea will see limited effects from Argentina’s debt crisis, and the U.S. and Europe’s additional sanctions against Russia as Korean companies have relatively low financial exposure to the emerging markets, the Financial Supervisory Service said.“Domestic banks have been stably renewing their short-term debt, and market interest rates have been facing low volatility,” an FSS official said.The global financial markets have been in panic after the International Swaps and Derivatives Associat

Aug. 4, 2014

Hana Bank launches microfinance unit in Myanmar

South Korean lender Hana Bank said Monday it has established a microfinance institution in Myanmar, joining in the global competition to tap into the impoverished country that has launched dramatic reforms to open up its economy.The Hana Financial Group affiliate held the opening ceremony of “Hana Microfinance” in Hlegu Township, a rural community northeast of Yangon, over the weekend with around 300 government officials and local residents attending, according to a press release.Hana Microfinan

Aug. 4, 2014

Korea to spend exchange rate profits on stabilization

The government plans to spend the money that public organizations gained from foreign exchange rates to better stabilize the livelihood of the people and strengthen public safety, the finance minister said Thursday.The won’s ascent against the U.S. dollar has helped public organizations such as Korea Electric Power Corp. and Korea National Oil Corp. reduce their debt and save import costs of raw materials.The government estimated such savings and debt reduction at about 6 trillion won ($5.8 bill

July 31, 2014

BOK expects stronger inflation pressure in H2

South Korea’s consumer prices are expected to face stronger upside pressure in the latter half of this year, although the rise will be limited by the pace of economic recovery over the long term, the Bank of Korea said Thursday.Consumer price growth in Asia’s fourth-largest economy remained in the 1 percent range for the eighth straight month in June, hitting a 1.7 percent rise last month from a year earlier, amid weak demand and few signs of rising raw material prices.The six-month inflation st

July 31, 2014

Banks’ net more than doubles in Q2

South Korean banks’ combined earnings more than doubled in the second quarter of this year from a year earlier on reduced bad debt losses, the financial watchdog said Thursday.The combined net income of 18 local banks registered at 2.4 trillion won ($2.33 billion) in the April-June period, compared with 1 trillion won the previous year, according to the Financial Supervisory Service.The second-quarter net profit marked the highest quarterly figure since the first quarter of 2012, when it hit 3.3

July 31, 2014

Woori Bank to introduce digital bankbooks

Woori Bank said Wednesday it would introduce a digital bankbook application next month to phase out conventional bankbooks. The digital bankbook smart application will be available for Android-based devices as of Aug. 1, while iOS users can download it from Aug. 11, according to Woori officials.Under the current banking system here, users must use either bankbooks or debit cards to withdraw and deposit cash at ATMs. But the new application will make the process easier by requiring only smartphon

July 30, 2014

Seoul considers easing limit on stock price movement

The government is considering easing or lifting the current daily limit imposed on the movement of stock prices in a bid to help stimulate the country’s stock market, according to news reports on Wednesday.According to the daily JoongAng Ilbo, Seoul is pushing to phase out the 15 percent daily limit in stock price fluctuations, and an announcement may come as early as this week in a meeting chaired by President Park Geun-hye.The government “has always been considering” the option to phase out th

July 30, 2014

Choi to sell record debt to fund stimulus

South Korea is forecast to sell an unprecedented amount of debt to fund stimulus as policymakers liken the economy’s current situation to that faced by neighboring Japan at the start of a two-decade slump.Finance Minister Choi Kyung-hwan unveiled a plan last week to boost spending by 11.7 trillion won ($11 billion) in the second half by freeing up cash from state-run programs and said the 2015 budget will be “as expansionary as possible.” That means next year’s government borrowing, proposals fo

July 29, 2014

BOK report warns of ‘Japan-like aged society’

South Korea’s aging population will become a significant financial burden to the country’s younger generation, a study showed on Monday.People in their 20s and 30s will pay an average 100 million won ($97,400) more than the actual public benefits they will receive as a result of the government’s growing fiscal deficit resulting from the rising costs of supporting the country’s growing elderly population. That is compared with those currently in their 60s, who in 2011 received an average 40 milli

July 28, 2014

Government, central bank on same page on economy: Choi

The government and the Bank of Korea have “no difference” in their assessment of the latest economic situation, the finance minister said Monday, adding that he expects both to seek “expansionary” measures aimed at bolstering the economic recovery.The remarks by Choi Kyung-hwan came in response to a question over whether the BOK needs to lower its interest rate to help prop up the economic recovery. Choi was speaking at a TV event with journalists.“It’s up to the (BOK’s) monetary policy committe

July 28, 2014

Lax supervision behind massive leak of data of cardholders

The financial watchdog's lax supervision led to a massive leak of customer information from the nation's three major financial institutions that came to light early this year, the state auditor said Monday. In January, an employee of the Korea Credit Bureau (KCB), a credit reference agency, was found to have stolen sensitive personal information, including resident registration numbers, bank account numbers and credit scores from Kookmin Card Co., Lotte Card Co. and Nonghyup Bank.The three compa

July 28, 2014