Watchdog to force insurers to pay suicide benefits

The South Korean financial watchdog will reprimand a local insurance firm for not giving insurance money in cases of suicide, officials said Wednesday, prompting concerns that the move will promote suicide across the nation.The Financial Supervisory Service discovered in an inspection last year that ING Life Insurance had sold a special disaster insurance policy that covers disaster-caused deaths as well as suicide between 2003 and 2010 when it changed the term to omit the suicide condition.Howe

May 14, 2014

Korean currency breaches 1,000 won level per yen

The South Korean currency continued to strengthen on Tuesday, surpassing the psychologically important level of 1,000 won per 100 yen. The won hit 998.25 per 100 yen as of 5:34 p.m., up 4.92 won  from the previous close. The won had previously rose to a yearly high of 995.63 per yen on Jan. 2. The Tuesday gain comes as the bullish global stock market is rekindling investor appetite for risky assets."The won has been strengthening against the U.S. dollar as investors are again turning to risky as

May 13, 2014

Life insurance firms push for payroll cut

Fears of massive layoffs are looming high over the nation’s life insurance industry in the wake of worsening profitability due mainly to the protracted era of low interest rates and lackluster performance in attracting new policyholders.While the nation’s top three insurance firms are initiating the full-fledged manpower restructuring, small and mid-sized players are expected to follow suit, industry watchers said Tuesday. The big three insurers are Samsung Life, Hanwha Life and Kyobo Life.Kyobo

May 13, 2014

Cheap dollar may fall below 1,000 won

Some global investment banks have forecast that the Korean currency will increase in value to triple digits against the U.S. dollar, as the won sits in its strongest position in five years.U.S.-based Wells Fargo said in its report that the dollar, currently traded at between 1,020 won and 1,030 won, is projected to reach 990 won in the second half of the year. Bank of Tokyo-Mitsubishi UFJ predicted that the won could appreciate to 975 won by the end of 2014.Many other IBs also share the view tha

May 12, 2014

Banks’ foreign currency deposits hit new high

Foreign currency deposits in South Korean banks jumped to a record high in April as exporters put their dollars into deposits, the central bank said Monday.Outstanding foreign currency-denominated deposits held by residents reached $58.42 billion as of end-April, up $7.32 billion from the previous month, according to the Bank of Korea.The April figure marked the highest level since $52.68 billion in February.Residents include local citizens, foreigners staying here for more than six months and f

May 12, 2014

Suspended card firms lose 3 million customers

Financial regulators will lift an operating ban on the three credit card firms that leaked the private information of a total of more than 100 million customers in January, on May 17.The three card issuers ― KB Kookmin, NongHyup and Lotte ― have been under the supervisory sanction of a partial business suspension for three months.While the firms will be allowed to resume full operations in a week, the three-month-long suspension has dealt a blow in terms of earnings and credibility, according to

May 11, 2014

Korea’s credit card use highest in the world in 2012

Credit card usage in South Korea was the highest in the world in 2012, according to data released on Sunday. With annual credit card usage at 147 transactions per capita in 2012, the country ranked first among 18 advanced economies, according to the Korea Financial Telecommunications and Clearings Institute. Canada and the U.S. came in second and third, respectively, with 89.8 and 83.5 uses per person in the year, the data compiled by the agency showed.The data compared 18 member countries of th

May 11, 2014

Seoul stocks expected to gain this week

South Korean stocks are expected to rise marginally this week as investors will be heartened by eased uncertainties at home and abroad, analysts said Saturday. The benchmark Korea Composite Stock Price Index finished at 1,956.55 on Friday, down 0.14 percent, or 2.89 points, from a week earlier. The KOSPI bounced back from eight days of losses as retail and institutional investors hunted for bargains on Thursday. The market is expected to extend its two-session winning streak next week as uncerta

May 11, 2014

Companies see 1,052.3 won to dollar for profitability: poll

South Korean manufacturers think 1,052.3 won to the U.S. dollar is the break-even exchange range and that the present strengthening of the local currency is eating into their profitability, a poll carried by a local business group showed Sunday. The survey conducted on 120 large manufacturers by the Federation of Korean Industries showed many are struggling with current conditions and warned if this trend continues, they may have to reassess their corporate goals. The appreciation of the Korean

May 11, 2014

Seoul to increase aid to businesses affected by ferry disaster

The government decided Sunday to increase financial assistance to travel and lodging businesses, one of the industries hit hardest by the deadly ferry sinking last month. The tourism promotion and development fund, initially set at 15 billion won ($14.6 million), will be increased to 50 billion won, and interest rate on loans from the fund will be lowered to 2 percent from 2.25 percent, finance ministry officials said. The measures were set at an inter-ministerial meeting that followed Friday’s

May 11, 2014

Park calls for preemptive measures to fight Sewol’s economic fallout

President Park Geun-hye called on the government and corporations to take preemptive measures to prevent an economic slowdown in the wake of the deadly ferry disaster that has been keeping consumption and investment at low levels. “To ensure that the economy’s recovery trend is not shaken, there must be no carelessness in efforts to preemptively supplement the economy,” she said on Friday during an emergency meeting with economic ministers and business representatives at the presidential office

May 9, 2014

BOK freezes key rate for 12th straight month

Korea’s central bank left the key interest rate unchanged at 2.5 percent for the 12th straight month Friday on concerns of dwindling consumer spending in the aftermath of the sinking of the ferry Sewol, which has left almost 300 people dead. Regarding the move, the Bank of Korea cited uncertainties in domestic demand triggered by the lack of spending among Koreans who are still mourning over the ferry incident. At the same time, the bank said it expected the economy to maintain its upward trend.

May 9, 2014

Department store sales inch down in April

Sales at local department stores inched down in April from a year earlier amid worries that last month’s deadly ferry incident might put a damper on consumption, preliminary government data showed Friday.Department store sales shrank 0.1 percent on-year in April, following a 1.1 percent decline a month earlier, according to the data by the finance ministry. This represented the third consecutive month of decline.Sales at discount chains also dropped 3.7 percent on-year in April. This also marked

May 9, 2014