S. Korea's move to sell IBK stake falls apart: sources

South Korea's planned sale of part of its stakes in the Industrial Bank of Korea (IBK) fell apart recently, sources said Friday.The government planned to sell about 23 million shares of its stake in the IBK through a block deal on Thursday in after-hours trading, according to the sources. The deal was estimated at around 300 billion won (US$290.3 million).The government confirmed that the deal fell apart but did not elaborate on reasons. A finance ministry official told Yonhap that it was natura

July 18, 2014

Hana Bank set for merger with KEB

South Korea's third-largest banking group Hana Financial Group Inc. said Thursday it will merge Hana Bank with previously purchased Korea Exchange Bank (KEB) in the near future, saying the move will boost competitiveness."In order to cope with worsening conditions in the financial market, and to continue growth, we decided to merge (Hana Bank) with KEB," Hana Financial said in a regulatory filing, adding that it will continue talks with Hana Bank's labor union on conditions including employment

July 17, 2014

Korean won’s volatility eases in second quarter

The intraday volatility of the South Korean currency declined in the second quarter compared with three months earlier as the won’s appreciation stoked caution among investors, central bank data showed Thursday.The average intraday change in the Korean won came in at 3.7 won in the April-June period, compared with 4.9 won in the previous quarter, according to the Bank of KoreaThe day-on-day change also fell to 2.5 won in the second quarter from 3.8 won three months earlier, with the average day-

July 17, 2014

Foreign IBs split on next rate direction: report

Foreign investment banks showed mixed views on the future direction of South Korea’s key interest rate, a report said Thursday, with the country’s central bank facing growing pressure on a rate cut. Earlier this month, the monetary policy committee of the Bank of Korea decided to keep the base rate unchanged at 2.5 percent for a 14th straight month. The report released by the Korea Center for International Finance showed that BNP Paribas projected the BOK is unlikely to cut the rate as Asia’s fo

July 17, 2014

Finance minister voices veiled support for rate cut

Finance Minister Choi Kyung-hwan made remarks Thursday at the parliament that could be interpreted as signs of support for a rate cut by the country’s central bank.“I can’t say exactly what should be done about interest rates, but I believe that my message about the current economy has been sufficiently communicated,” Choi said at a Strategy and Finance Committee of the National Assembly. “Nothing could be more explicitly mentioned (about interest rates) than this.”The remarks were in response t

July 17, 2014

Foreign IBs split on next rate direction: report

Foreign investment banks showed mixed views on the future direction of South Korea's key interest rate, a report said Thursday, with the country's central bank facing growing pressure on a rate cut. Earlier this month, the monetary policy committee of the Bank of Korea decided to keep the base rate unchanged at 2.5 percent for a 14th straight month. The report released by the Korea Center for International Finance showed that BNP Paribas projected the BOK is unlikely to cut the rate as Asia's fo

July 17, 2014

BOK chief says downside risks are greater for Korean economy

The South Korean economy is expected to return to an above-par growth level during the second half of the year, but downside risks have been pronounced recently for Asia’s fourth-largest economy, the central bank chief said Wednesday.“The economic growth would recover after the third quarter of the year, but given a protracted contraction in domestic demand and investment, an increased volatility of the Korean won, downside risks are slightly greater (for the economy than upside ones),” Bank of

July 16, 2014

BOK chief says downside risks are greater for Korean economy

The South Korean economy is expected to return to an above-par growth level during the second half of the year, but downside risks have been pronounced recently for Asia's fourth-largest economy, the central bank chief said Wednesday."The economic growth would recover after the third quarter of the year, but given a protracted contraction in domestic demand and investment, an increased volatility of the Korean won, downside risks are slightly greater (for the economy than upside ones)," Bank of

July 16, 2014

GS Homeshopping likely to submit bid for KT Rental

GS Homeshopping, the country’s leading home shopping company, is preparing to make an offer to acquire a majority stake in the car rental firm KT Rental, a local daily said on Tuesday.Reports of GS’ intentions came about a month after KT Corp. publicly announced the sales of two nonmajor affiliates ― KT Rental and KT Capital ― as part of its efforts to regain financial soundness and focus on the ICT business. GS Homeshopping CEO Huh Tae-soo has reportedly been in talks with global investment ban

July 15, 2014

Watchdog to intensify monitoring of asset managers

The financial watchdog said Tuesday that it will tighten its monitoring of wrongdoings and illegal practices by local asset management firms to protect retail investors. The Financial Supervisory Service said it has carried out in-depth on-site inspections of 86 asset management companies in June to check their compliance with regulations in selling funds and other financial instruments.The inspection results showed that fund managers at most asset management companies engaged in illegal practic

July 15, 2014

Seoul shares rebound on eased eurozone banking jitters

South Korean shares rose 0.26 percent on Monday, rebounding from last week’s 1 percent dip as concerns over a eurozone banking crisis eased, analysts said. The local currency closed at 1,018.20 against the dollar, up 0.8 won from the previous session. The benchmark Korea Composite Stock Price Index gained 5.14 points to 1,993.88. The index suffered a loss last week on escalating jitters over Europe’s financial stability. Trading volume was moderate at 267 million shares worth 3.07 trillion won (

July 14, 2014

Regulators to reprimand main creditor of troubled conglomerates

The financial watchdog will reprimand the main creditor bank of cash-strained STX Group and Dongbu Group for negligence in monitoring the financial conditions of the conglomerates, officials said Monday, pressuring the bank to take stronger measures to normalize the ailing firms.STX Group, the 13th-biggest conglomerate with 10 affiliates under its wing, has been struggling with a liquidity shortage and mounting debts due to the downturn in the shipbuilding and shipping sectors.The Financial Supe

July 14, 2014

Korean firms' dividend payouts forecast to stay low this year: data

Dividend payouts by South Korean listed firms are expected to remain low this year compared with their foreign rivals, although their average dividend yield ratio may creep up from last year, industry data showed Monday.The average dividend yield ratio of listed firms that trade on the country's main bourse is estimated at 1.25 percent for the year, compared with last year's 1.18 percent, according to the data.The dividend yield ratio refers to a company's annual dividend payments per share divi

July 14, 2014

Foreign banks obligated to release financial info: watchdog

South Korea’s financial watchdog said Sunday it will order foreign banks operating here to disclose their financial data, including balance sheets and income statements, starting in the fourth quarter of 2014.The Financial Supervisory Service said all financial firms will be ordered to make public their financial status on the Financial Statistics Information System, a financial data website operated by the watchdog since 2004.“We will continue our efforts to provide people with more data for mo

July 13, 2014