The Korea Herald

KDB chief emphasizes role of finance in Korea reunification

The state-run Korea Development Bank chairman and president Hong Ky-ttack spoke about the outlook for Korea’s reunification and the role of finance at an international meeting of development bank chiefs.“One of the key agendas that lays ahead for Korea is a peaceful reunification and shared prosperity,” Hong said at the D20 Club Roundtable, which was held in Rome on July 4.“This goal may be achieved through an organic combination of South Korea’s capital and technology with North Korea’s natural

July 6, 2014

KDB chief emphasizes role of finance in Korea reunification

BOK likely to cut economic growth forecast

The nation’s central bank is expected to lower its economic growth forecast this week as tepid domestic consumption and a strong local currency fuel fears over the economic turnaround.Market watchers said the Bank of Korea may trim down its gross domestic product growth outlook by 0.2 to 0.4 percentage point from its early projection of 4 percent at a scheduled policy meeting on Thursday.“The Korean economy exhibited a delayed economic recovery with ongoing impacts of the Sewol ferry tragedy,” t

July 6, 2014

Outlook for rate cut looms ahead of hearing, July meeting

An upcoming confirmation hearing for a pro-growth finance minister nominee, scheduled ahead of the monthly rate-setting meeting, is adding to speculation that the central bank may take action to boost growth in Asia's fourth-largest economy.On Tuesday, the National Assembly is scheduled to hear from three-term ruling party lawmaker Choi Kyung-hwan. Two days later, the Bank of Korea (BOK) is set to vote on the key rate and release its revised economic growth outlook.Choi's nomination lent a hand

July 6, 2014

Hana chief may push on with bank merger

When Hana Financial Group incorporated Korea Exchange Bank under its umbrella back in 2012, it gave its word to the KEB’s labor union that it would guarantee the bank’s managerial independence for the ensuing five years.But it looks like the promise may be broken as Hana Financial chairman Kim Jung-tae ― pressed by a combination of the ongoing market slump and rising competitors ― may attempt to merge KEB with Hana Bank ahead of schedule.“It may now be time to start discussing the integration (o

July 4, 2014

Financial chiefs face turbulent second half

The most pressing task for many financial chiefs in the remaining half of the year may be to stay out of the public eye and this is all the more true for those who are facing heavy sanctions.Even those who have been off the authorities’ radar are now becoming anxious as they face the end of their given term, not knowing for sure whether they will be reappointed.Ever since the massive customer information leak scandal broke out in January this year, there have been warning signs for KB Financial

July 3, 2014

Financial chiefs face turbulent second half

Chief of Standard Chartered optimistic on Korean business

Standard Chartered Group head Peter Sands emphasized the importance of South Korea in the British banking group’s global strategy, brushing off speculation that it will downsize its business here as the local banking sector struggles with low profitability and heightening competition.“We are absolutely committed to Korea, to use the phrase, our brand promise, ‘We are here for good.’ What we are doing is reshaping the business to play more to our strength as an international bank,” Sands said in

July 3, 2014

Chief of Standard Chartered optimistic on Korean business

Hana, Western Union in money transfer tie-up

Hana Bank is offering a more convenient overseas remittance system for outbound users such as members of the foreign community or parents with children studying abroad, bank spokespeople said on Friday.Earlier this year, the bank kicked off the Hana-Western Union Automatic Remittance system together with the global money transfer service company in a move to facilitate easier money transfers. “We will continue to develop financial services especially focusing on those that assist customers who a

July 3, 2014

Hana, Western Union in money transfer tie-up

China invites Korea to join Asian Infrastructure Investment Bank

China has invited South Korea to join a project that involves setting up a new multilateral investment bank to fund infrastructure projects in Asia.The Chinese government recently requested for the Seoul government to consider taking part in the new institution, tentatively named the Asian Infrastructure Investment Bank, sources close to the matter said. Beijing is hoping Seoul will accept the invitation and agree to participate during the first official visit by Chinese President Xi Jinping to

July 3, 2014

FSS sanctions lose steam on FSC intervention

When the Financial Supervisory Service’s disciplinary committee session ended flat with no conclusion on the scope and degree of sanctions on key financial company executives last Friday, the financial watchdog cited caution as the reason behind its slower-than-expected progress.But it is widely accepted that the FSS, which earlier had eagerly pounced on the firms, has lost its resolve. Due to its change in attitude, the watchdog is now facing a fierce backlash not only from the industry but als

July 2, 2014

Banks forecast higher corporate credit risks in Q3

South Korean banks projected the credit risks of South Korean companies to rise in the third quarter due to sluggish domestic demand and the strengthening of the South Korean won, central bank data showed Wednesday.An index measuring larger companies’ credit risks came in at 19 for the July-September period, the highest level since the first quarter of 2009, when it reached 19 in the aftermath of the global financial crisis, according to the quarterly survey of 16 local banks conducted by the Ba

July 2, 2014

Seoul shares end lower on tech, auto losses

South Korean stocks closed slightly lower Tuesday as institutions dumped shares after the quarter-end buying in the previous session, analysts said. The Korean won rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index shed 3.21 points, or 0.16 percent, to 1,999. Trading volume was low at 233.8 million shares worth 2.9 trillion won ($2.8 billion), with gainers outpacing decliners 490 to 303.Analysts saw the fall as a temporary downturn that comes after fund managers’ quarte

July 1, 2014

Average card transaction value drops to lowest level

The average amount of credit card spending per purchase plunged to the lowest level in history last month, indicating a change in patterns of credit card usage among South Korean consumers.South Koreans spent an average of 45,319 won ($44.80) per purchase last month, down 9.5 percent on-year, the Credit Finance Association of Korea said on Tuesday.The decreased credit card spending was driven by a change in the way consumers use their cards ― spending less per transaction with debit cards, the C

July 1, 2014

Stock transactions via mobile devices growing

The use of mobile devices for stock transactions has continued to rise sharply as more retail investors use their smartphones and tablet PCs for trading, the bourse operator said Monday.In terms of daily value, stock trading via mobile gadgets has made up some 9.73 percent of the total transactions on the country’s main bourse so far this year as of June 23, compared with 9.28 percent tallied in 2013, according to the Korea Exchange.Market watchers said such a rise matches the increase in the nu

June 30, 2014

Life insurers pushed to dole out unpaid benefits for suicides

The nation’s top financial watchdog is poised to censure a local insurance company for denying benefits to families of policyholders who committed suicide, according to officials from the Financial Supervisory Service on Monday. The move is expected to have deep repercussions on the South Korean life insurance sector, the officials said. ING Life Insurance Co. was found to have denied payouts of accidental benefits worth 20 billion won ($19.7 million) in some 90 suicide cases, citing erroneous p

June 30, 2014

IBK to make changes for advanced banking services

The Industrial Bank of Korea is set to replace its dated computer network with a new comprehensive framework said to be safer, more advanced and less expensive in a move to provide advanced banking services, the bank announced on Sunday.The state-run bank is currently scrapping and uninstalling outdated hardware and software as a part of its efforts to shift from the existing mainframe operating system to a Unix-based system.The IBK test ran its new computing system at 10 branches on Saturday, a

June 30, 2014

IBK to make changes for advanced banking services

Life insurers likely to dole out unpaid benefits for suicides

South Korea's financial watchdog will censure a local insurance company for denying benefits to families of policyholders who commit suicide, which will have a far-reaching impact on the country's life insurance sector, officials said Monday.According to the officials, ING Life Insurance Co. was found to have denied payouts of accidental benefits worth 20 billion won (US$19.7 million) in some 90 suicide cases, citing erroneous provisions in their contracts with policyholders.Before 2010, local l

June 30, 2014

KB signs stock buying deal with LIG Insurance

KB Financial Group said on Friday it had signed a contract with LIG Insurance to take over a controlling stake in the country’s fourth-largest nonlife insurer.The banking group reportedly paid about 640 billion won ($630 million) to buy a 19.83 percent stake in LIG Insurance.‘‘The company has sought the deal to diversify its banking-centric business portfolios into the nonbanking business,” KB Financial said in a press release. The stake acquisition still needs approval from the financial author

June 27, 2014

KB signs stock buying deal with LIG Insurance

Seoul shares end lower on foreign selling

South Korean stocks finished lower on Friday as weak U.S. data prompted foreign investors to sell, analysts said. The Korean won rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index fell 6.54 points, or 0.33 percent, to 1,988.51. Trading volume was low at 212.7 million shares worth 2.96 trillion won ($2.92 billion), with gainers outpacing decliners 424 to 359. “Institutions continued to buy. Foreigners, who have been shifting in and out of selling mode, turned to selling

June 27, 2014

Korean won hits fresh yearly high against dollar

The South Korean won advanced sharply to the U.S. dollar on Friday, hitting a fresh yearly high as the country’s current account surplus widened to a seven-month high in May.The local currency was quoted at 1,014.30 won as of 11 a.m., up 1.90 won from the previous session’s close. The country’s current account surplus reached $9.3 billion last month, compared with $7.12 billion in April, according to preliminary data by the Bank of Korea. The current account is the broadest measure of cross-bord

June 27, 2014

Fisheries co-op sanctioned for illegal lending to church

A state-funded local fisheries cooperative has been reprimanded for extending billions of won in loans to a church by inflating its financial status and the number of members, the watchdog agency said Friday. A branch of the National Federation of Fisheries Cooperatives in 2008 allegedly raised the church’s credit rating without carrying out due diligence on the debtor’s repayment ability, according to the Financial Supervisory Service. The NFFC extended an additional 15 billion won ($14.79 mill

June 27, 2014