BOK holds key rate for 13th month as expected

South Korea's central bank froze the key interest rate for the 13th consecutive month on Thursday as the local economy is slowly recovering amid tame inflation. The monetary policy committee, led by Bank of Korea (BOK) Gov. Lee Ju-yeol, kept the benchmark seven-day repo rate at 2.5 percent as widely expected.The policy decision is in line with an earlier poll conducted by Yonhap Infomax, the financial news arm of Yonhap News Agency. Eighteen analysts unanimously forecast the BOK to hold the base

June 12, 2014

Hana chief faces double whammy of sanctions

Financial regulators are expected to soon announce additional penalties for Hana Bank CEO Kim Jong-jun in a move that is expected to apply further pressure on Kim to step down from his post.“We are not yet permitted to discuss the result (of an ongoing probe into Hana Bank) but given the seriousness of the Hana Bank case, the CEO is most likely to be subject to penalties,” an FSS official said Tuesday.In July, the Financial Supervisory Service will hold a disciplinary committee to decide on the

June 11, 2014

MSCI removes Korea from upgrade review

Global index provider MSCI has dropped South Korea from the list of candidates for developed market status in its reclassification review released on Wednesday, saying the nation has not made enough effort to improve market openness to graduate from being an emerging market. MSCI, the research arm of U.S. banking group Morgan Stanley, said South Korea meets most of the criteria to be included in the developed markets in terms of economic development, market size and liquidity, but Korean authori

June 11, 2014

Seoul shares advance on foreign buying

South Korean stocks finished higher Wednesday as foreign investors snapped up shares like Samsung Life Insurance, while market leader Samsung Electronics lost ground on mixed views on Samsung Group’s plan to set up a holding firm. The South Korean won rose against the U.S. dollar. The benchmark Korea Composite Stock Price Index finished at 2,014.67, up 2.87 points, or 0.14 percent, from Tuesday’s close. The trading volume was moderate at 234.72 million shares worth 3.81 trillion won ($3.8 billio

June 11, 2014

Earnings by Korean banks’ overseas branches rise in Q1

Earnings at South Korean banks’ overseas branches surged in the first three months of this year from a year earlier as they increased business loans in big markets, industry data showed Wednesday.Woori Bank’s 64 foreign branches recorded $69.54 million in operating profit for the January-March period, soaring 116.6 percent from $32.1 million on year.The operating profit of Shinhan Bank’s 68 overseas offices vaulted 40.5 percent on-year to $39.01 million over the cited period, while Korea Exchang

June 11, 2014

S. Korea to reveal names of public firms involved in unfair

South Korea will reveal names of public companies found to have been involved in illegal and unfair business practices later this year, the finance minister said Wednesday.The move is aimed at eradicating deeply rooted practices in the public sector, such as giving business favors to companies that have hired former executives or employees of public firms, and big firms abusing their market dominating power over smaller businesses. "The government will make a thorough review of such cases until

June 11, 2014

KB Financial singled out for punishment

Financial authorities decided to impose a severe penalty on the top-ranking officials of KB Financial Group and KB Kookmin Bank in what appears to be a warning to other financial companies.Late on Monday, the Financial Supervisory Service informed key officials of KB Financial Group, including group chairman Lim Young-ho and bank president Lee Kun-ho, that they have been subject to severe punishment for the group’s recent internal feud.The final decision will be made at an FSS disciplinary commi

June 10, 2014

‘Korea to sustain export-led recovery despite strong won’

South Korea can sustain export-led growth despite mounting concerns that the strong local currency could hurt the price competitiveness of Korean products, according to HSBC.The Korean won has strengthened rapidly in recent months on the back of a strong current account surplus. This prompted worries among Bank of Korea and Finance Ministry officials as the stronger won poses “downside risks” to the country’s export outlook, according to HSBC.But the bank added that the Korean economy can sustai

June 10, 2014

Shares end higher on Samsung gains

South Korean stocks closed higher Tuesday as affiliates of Samsung Group, which make up nearly 28 percent of the main bourse’s market capitalization, gained ground amid rising hopes over its restructuring plan. The South Korean won fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index edged up 21.76 points, or 1.09 percent, to 2,011.80. Trading volume was low at 230 million shares worth 3.8 trillion won ($3.78 billion), with gainers outpacing losers 545 to 263.Analysts sai

June 10, 2014

Number of stock investors edges up despite market slump

The number of stock investors in the country rose slightly by 1.2 percent in 2013 despite a protracted slump in the South Korean stock market, data showed Tuesday. According to the Korea Exchange, the number of stock investors here stood at 5.07 million as of 2013, up from 5.01 million in 2012. Among the investors, individual investors accounted for slightly over 5 million, or almost 20 percent of the country’s economically active population, the data showed. In terms of market capitalization, r

June 10, 2014

Finance minister pledges to beef up risk management

South Korea will intensify its risk management during the second half of this year in the face of uncertainties lingering in overseas markets, the country’s top economic policymaker said Tuesday.The government will also place its policy focus on revitalizing the economy, which has a direct bearing on the livelihood of ordinary people and push for its signature three-year economic innovation plan, Finance Minister Hyun Oh-seok told a meeting with heads of research agencies in the economic and hum

June 10, 2014

KEB to open subsidiary in Russia in August

The Korea Exchange Bank said on Monday it would open a subsidiary in Moscow this year as more South Korean companies are seeking to expand business opportunities in Russia. The country’s fifth-largest lender will focus on localizing financial services that include plans for developing retail banking businesses and offering financial services to both Russian and South Korean firms doing business in the area, bank officials said. The new subsidiary is being launched six years after KEB opened a Mo

June 9, 2014

Sony takes on Oculus

Now it’s Sony versus Facebook.After being knocked around by Apple Inc. and Samsung Electronics Co. for more than a decade, Sony Corp. is up against yet another tech rival, attempting to build the PlayStation 4 into an entertainment powerhouse and develop a virtual-reality headset for the gaming market.And in this fight at least, the Tokyo-based conglomerate, which has lost money in five of the last six years, might have an edge. Sony’s commanding lead in sales of video-game consoles could give a

June 9, 2014

Seoul stocks to gain slightly on bluechips

South Korean stocks may move marginally upward this week, fueled by gains in bluechips from an inflow of foreign funds, analysts said Saturday.The benchmark Korea Composite Stock Price Index finished at 1,995.48 this week, edging up 0.03 percent from a week earlier.The small rise can be attributable to data that indicated the global economy is on the mend, albeit slowly, and net buying of bluechip stocks by foreign investors. Foreigners, who exert considerable influence on the market, remained n

June 8, 2014

Seoul stocks expected to gain slightly on bluechips next week

South Korean stocks may move marginally upward next week, fueled by gains in bluechips from an inflow of foreign funds, analysts said Saturday.The benchmark Korea Composite Stock Price Index (KOSPI) finished at 1,995.48 this week, edging up 0.03 percent from a week earlier.The small rise can be attributable to data that indicated the global economy is on the mend, albeit slowly, and net buying of bluechip stocks by foreign investors. Foreigners, who exert considerable influence on the market, re

June 7, 2014

Foreigners’ stake in Korean stocks hits this year’s high

Stock ownership by foreign investors on South Korea’s bourse rose sharply this month as they scooped up market heavyweights such as tech and auto shares, data showed Thursday. Overseas investors held a combined 33.24 percent of local shares worth 441.8 trillion won ($431 billion) as of Tuesday, this year’s high, according to the data compiled by the Korea Exchange.Foreign investors owned 35.65 percent of the total shares traded on the main bourse, worth 427.99 trillion won, the highest portion o

June 5, 2014

Funds’ net asset value surges more than 8tr won in May

Investment funds in South Korea saw their net asset value increase more than 8 trillion won ($7.83 billion) in May from a month earlier as investors parked more money in short-term funds and a bullish run on the local stock market helped offset an outflow from local stock funds, data showed Thursday.According to the Korea Financial Investment Association, the net asset value of stocks, bonds and real estate-related funds reached a combined 341.8 trillion won at the end of May, up 8.2 trillion wo

June 5, 2014