[Ferry Disaster] FSS expands Semo inquiry to all affiliates

The nation’s financial watchdog is widening its probe into all financial subsidiaries of the now-defunct Semo Group, a suspected source of funds for Yoo Byung-un, the owner of Chonghaejin Marine Co. and the sunken ferry Sewol.The Financial Supervisory Service is preparing an extensive audit on Semo Credit Union and other affiliated financial companies, FSS officials said Friday.The FSS will also further investigate the allegations that several of the local banks granted loans to the financially

April 25, 2014

Seoul shares end 1.34% lower on weak earnings

South Korean stocks closed 1.34 percent lower Friday as investor sentiment was dented by weaker-than-expected corporate earnings results, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index declined 26.68 points to 1,971.66. Trading volume was light at 201.7 million shares worth 3.6 trillion won ($3.46 billion), with losers outnumbering gainers 569 to 230.“The earnings results were not a shock, but corporate bottom lines were mostly weak

April 25, 2014

S&P downgrades Russia as Ukraine jitters grow

(AFP) - Standard and Poor's on Friday downgraded its rating of Russia's ability to repay debt as alarm grew over the effects of the Ukraine crisis on the economy amid increased capital flight and slumping growth.Russia's central bank also hiked interest rates by half a percentage point in a move aimed at curbing inflation which could also help limit capital flight and pressures on the ruble.Russia saw capital outflows in the first quarter of 2014 double from the level a year earlier to $50.6 bil

April 25, 2014

Hyundai Mobis earnings rise 5.3% in Q1

Hyundai Mobis, the nation's largest auto parts maker, said Friday its net earnings for the first quarter rose 5.3 percent on-year to 817.7 billion won ($787.5 million) on increased in demand for key automotive modules. Operating profit jumped more than 13 percent to 721 billion won in the same period, with sales rising a solid 10 percent from the year before to 8.92 trillion won, the company said in a regulatory filing.Net profit in the first quarter of 2013 stood at 776.7 billion won, with oper

April 25, 2014

KB Financial's earnings fall more than 9%

The nation's No. 2 banking group, KB Financial Group, said Friday its first-quarter earnings slipped more than 9 percent from a year earlier on a slipping profit margin amid falling commission income.Net income reached 373.5 billion won ($358.8 million) in the January-March period, compared with the 411.5 billion won from the previous year, the group said in a regulatory filing. Net profit jumped 44 percent from three months earlier.The group said its interest income declined on a long streak of

April 25, 2014

Hana Financial's Q1 net falls over 30%

Hana Financial Group, the country's third-largest financial group, said Friday its first quarter net income fell more than 30 percent  on-year due mainly to losses from a state-led micro loan and its implication in an illegal lending scheme. Net profit stood at 207.8 billion won ($200 million) in the January-March period, compared with 311.8 billion won a year earlier, the group said in a regulatory filing. From three months earlier, profit jumped almost 200 percent. The bottom line, however, wa

April 25, 2014

ABS issuance sinks 39.2 % in Q1

The issuance of asset-backed securities in South Korea sank 39.2 percent in the first quarter of this year from a year earlier as the state-run mortgage loan agency saw a drop in its financial instrument sale, the financial watchdog said Thursday.A combined 8.1 trillion won ($7.8 billion) worth of ABSs were issued in the January-March period, compared with 13.4 trillion won a year earlier, according to the Financial Supervisory Service.ABSs are derived from underlying assets such as car loans, h

April 24, 2014

‘Chonghaejin Marine dodged taxes for 5 years’

Financial investigators revealed Thursday that Chonghaejin Marine Co. had not paid anything in corporate taxes in the past five years, due to exemptions given to the operator of the Sewol ferry because of previous losses.While a company operating in the red is entitled to some tax exemptions, the Financial Supervisory Service is looking into its financial statements to examine the possibility that the company had manipulated its books to evade taxes. The National Tax Service is also reviewing th

April 24, 2014

Morgan Stanley warned over unauthorized lending

In the wake of a series of sanctions imposed on foreign banks, Morgan Stanley’s Seoul branch was given a warning for conducting a loan business here without establishing an operating system, financial authorities said Thursday.According to the Financial Supervisory Service, the Seoul banking office of Morgan Stanley in 2011 assigned the task of loan-screening to Morgan Stanley Income Securities in Seoul and Morgan Stanley’s banking office in Hong Kong.The Morgan Stanley Seoul office, however, wa

April 24, 2014

Seoul shares end 0.1% lower on institutional sales

South Korean stocks closed 0.1 percent lower Thursday as institutional investors unloaded local shares, tracking overnight falls in U.S. stock markets, analysts said. The local currency rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index declined 2.03 points to 1,998.34. Trading volume was light at 227.9 million shares worth 3.51 trillion won ($3.38 billion), with losers outnumbering gainers 512 to 289.“The KOSPI seemed to try to test the 2,000 level, but it did not look

April 24, 2014

Morgan Stanley's Seoul office reprimanded for unauthorized business

Morgan Stanley's Seoul branch and two of its officials have been reprimanded for engaging in financial business without the establishment of an adequate system to operate it, South Korea's financial watchdog said Thursday.  According to the Financial Supervisory Service (FSS), the Seoul office of the U.S. banking group examined the financial status and viability of purchasing bad loans in 2011 in cooperation with Morgan Stanley Income Securities Inc.'s Seoul branch and Morgan Stanley's Hong Kong

April 24, 2014

Korea considers up to W260m compensation for ferry victims

The government appears to be considering giving up to 260 million won ($250,000) in compensation separate from insurance payments to the families of the Sewol ferry accident. As part of efforts to support the families of the deceased and the missing, the Finance Ministry said it plans to provide up to 240 times the country’s monthly minimum salary in compensation.The 6,825-ton ferry sank in waters off Korea’s southwestern island of Jindo last week. More than 160 bodies were recovered, but as of

April 23, 2014

Gold bourse trading below expectations

The newly launched gold bourse is drawing weaker-than-expected attention from investors, with the turnover below what was anticipated by authorities as the nation slows purchases in light of the capsized ferry Sewol, data showed on Wednesday.The gold bourse was launched on March 24 to help bring the unregulated market into the open while broadening the government’s taxation base.The data compiled by the Korea Exchange, the gold bourse operator, shows the daily turnover averaged 3.6 kilograms, lo

April 23, 2014

Import settlements in yen sink to record low in Q1

South Korean importers reduced their use of the Japanese currency in settling deals in the first quarter as the yen continued to weaken, the central bank said Wednesday.The use of the yen accounted for a fresh record low of 4.9 percent of the total import settlements in the first quarter, down from 5.2 percent in the fourth quarter, according to the Bank of Korea.The weight of the yen declined as the currency’s sharp weakness reduced the dollar conversion value of settlements made with the yen,

April 23, 2014

Seoul shares end 0.19% lower on China slowdown woes

South Korean stocks closed 0.19 percent lower Wednesday as investor sentiment weakened over concerns about China’s economic slowdown, analysts said. The local currency fell against the U.S. dollar.After trading higher, the benchmark Korea Composite Stock Price Index declined 3.85 points to 2,000.37. Trading volume was light at 231.7 million shares worth 3.82 trillion won ($3.68 billion), with losers outnumbering gainers 536 to 261.“Data on China’s manufacturing activity pointed to lingering conc

April 23, 2014

Seoul shares end 0.25% higher on foreign buying

South Korean stocks closed 0.25 percent higher Tuesday on foreign buying, but the upward momentum was weak due to investors’ caution ahead of corporate earnings results, analysts said. The local currency rose against the U.S. dollar.After trading in a tight range, the benchmark Korea Composite Stock Price Index gained 5 points to 2,004.22. Trading volume was light at 202.5 million shares worth 3.02 trillion won ($2.91 billion), with gainers outnumbering losers 414 to 366.“Trading volume was smal

April 22, 2014