FSS urges card firms to adopt IC cards

The Financial Supervisory Service has ordered credit card firms to raise money to adopt integrated circuit (IC) cards to prevent a repeat of personal information breaches, according to market sources on Sunday.Up to eight credit card firms in the country will be obligated to raise a combined fund worth 100 billion won ($94.8 million) to bolster oversight of personal data management, the sources said.Most of the funds will be used in adopting card readers that can accept IC cards, which are consi

April 6, 2014

NPS cuts portion of top conglomerates in stock investment

 South Korea's national pension operator reduced the portion of top business groups in its stock holdings in 2013, market data showed Sunday, in an apparent move to hedge against the market's volatility by diversifying its portfolio.   The National Pension Service (NPS) said shares in the affiliates of South Korea's top four conglomerates -- Samsung, Hyundai Motor, LG and SK -- took up 52.5 percent of its stock investment portfolio at end-December 2013, down 6.5 percentage points from a year ear

April 6, 2014

Seoul shares likely to move up on steady foreign buying

The South Korean stock market is likely to rise next week as foreign investors will be encouraged by solid economic data from home and abroad, analysts said Saturday.The benchmark Korea Composite Stock Price Index finished at 1,988.09 this week, up 0.64 percent from Monday despite North Korea's live-fire drill near the western sea border earlier. KOSPI surpassed the 2,000-point level at one point on Wednesday for the first time in three months.A series of upbeat economic data in South Korea and

April 5, 2014

Korea’s growth lags behind Asian peers: ADB

The Korean economy is likely to maintain steady growth this year, but at a slower pace than other Asian countries, according to the Asian Development Bank. Korea’s gross domestic product is forecast to grow at 3.7 percent on-year in 2014, up from 2.8 percent in 2013.That is slower than Singapore and India with 3.9 percent and 5.5 percent, respectively, the ADB said in its annual Asian Development Outlook report. China’s growth rate remains high in the region at 7.5 percent in 2014, followed by t

April 4, 2014

Dongbu pressured to sell subsidiaries

As the liquidity of Dongbu Group, a South Korean conglomerate providing steel, insurance and electronics goods, is worsening, creditors have put an ultimatum on the debt-saddled conglomerate to swiftly sell some business units amid a liquidity crisis.Despite a series of warnings in the market, Dongbu chairman Kim Jun-ki has continued to argue since last year that its financial status was not as critical as those of the embattled STX and Tong Yang groups, most of whose units are in the debt-resch

April 4, 2014

Funds’ net asset value dips W5.4tr in March

Investment funds in South Korea saw their net asset value decrease by more than 5 trillion won ($4.7 billion) in March from a month ago as investors scurried to withdraw from bond funds and other short-term funds, data showed Thursday.According to the Korea Financial Investment Association, net asset value of stocks, bonds and real estate-related funds reached a combined 337 trillion won at the end of March, down 5.4 trillion won from the end of February.The net asset value refers to the amount

April 3, 2014

Banks see high credit risks for households in Q2

South Korean banks forecast the credit risks of households to stay high in the second quarter on concerns over excessive household debt, the central bank said Thursday.An index gauging larger firms’ credit risks came in at 25 for the April-June period, unchanged from the previous quarter, according to a survey of 16 local banks conducted by the Bank of Korea. The number marked the highest level since 28 tallied for the first quarter of last year.Credit risks refer to the likelihood of borrowers

April 3, 2014

HSBC projects R&D spending to lead Korea’s trade growth

Korea’s export growth will accelerate over the next 15 years due to its strong research and development investment, according to research by HSBC.The country’s R&D spending accounted for 3.7 percent of its gross domestic product in 2011, the highest among 25 global economies. Thanks largely to its effort to strengthen R&D, the country plays a “significant role” in the production of high-tech goods, HSBC said in its latest global trade report.The bank predicted that would be high-tech more than 2

April 3, 2014

Seoul shares close lower amid mixed ECB outlook

South Korean stocks closed almost flat Thursday amid a mixed outlook for the upcoming European Central Bank’s meeting, with investors divided over whether it will opt for monetary easing, analysts said. The South Korean won traded lower against the U.S. dollar.The benchmark Korea Composite Stock Price Index moved up 3.55 points, or 0.18 percent, to 1,933.70. Trading volume was low at 220.6 million shares worth 4.13 trillion won ($3.91 billion), with losers outpacing gainers 487 to 290.The index

April 3, 2014

Retirement payments to financial execs to be curbed

Financial authorities said Thursday they will intervene to prevent top financial company executives from walking away with excessive retirement payments, a measure that follows public outrage against astronomical wages and compensation packages that went to corporate leaders last year.Records showed that Park Jong-won, former president of Korean Reinsurance Co., received 15.9 billion won ($15 million) in retirement benefits, which is 245.5 times the average annual salary of a company employee.Pa

April 3, 2014

Public sector spending nearly half of GDP

Spending by South Korea’s public sector jumped 46 percent in 2012 compared with five years earlier, with its total accounting for nearly half of the country’s nominal gross domestic product, the central bank said Thursday.The public sector, which includes the central and provincial governments, and state-run companies, spent a combined 671.9 trillion won ($635.2 billion) in 2012, compared with 460.1 trillion won in 2007, according to the Bank of Korea.The amount accounted for 48.8 percent of the

April 3, 2014

Banks see high credit risks for households in Q2

South Korean banks forecast the credit risks of households to stay high in the second quarter on concerns over excessive household debt, the central bank said Thursday.An index gauging larger firms' credit risks came in at 25 for the April-June period, unchanged from the previous quarter, according to a survey of 16 local banks conducted by the Bank of Korea. The number marked the highest level since 28 tallied for the first quarter of last year.Credit risks refer to the likelihood of borrowers

April 3, 2014

Regulator to restrict retirement payments to financial executives

Financial authorities said Thursday they will intervene to prevent top financial company executives from walking away with retirement payments way out of proportion, a measure that follows public outrage against astronomical wages and compensation packages that went to corporate leaders last year.Records showed that Park Jong-won, former president of Korean Reinsurance Co., received 15.9 billion won ($15 million) in retirement benefits, which is 245.5 times an average annual salary of company em

April 3, 2014

Korea's FX reserves hit record high in March

South Korea's foreign-exchange reserves set a record high in March on the rise in the value of non-dollar assets and investment profit, the central bank said Thursday. The country's foreign reserves totaled a record US$354.34 billion as of end-March, up $2.55 billion from the previous month, according to the Bank of Korea (BOK).This is the ninth straight month of increase after declining by the most in 13 months in June.Foreign reserves consist of securities and deposits denominated in overseas

April 3, 2014

KOSPI tops 2,000 for first time in 2014

South Korean stocks finished 0.26 percent higher Wednesday as investor sentiment was buoyed by solid economic data from abroad and assurances about the pace of economic recovery, analysts said. The South Korean won gained ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index gained 5.27 points to 1,997.25, the highest in three months. It had surpassed the 2,000-point level at one point in the morning for the first time since the stock market closed at 2002.28 on the fina

April 2, 2014

Hana Bank chief disciplined for illegal lending

In another blow to the local financial sector that is still reeling from a series of scandals including data breaches, the president of Hana Bank was disciplined for illegally providing loans, financial sources said on Tuesday. Kim Jong-jun allegedly invested 14.5 billion won ($13.7 million) in a savings bank in 2011 using fabricated documents and skipping an approval process by the board of directors. Kim was at the time head of Hana Capital. Hana Capital failed to recollect 6 billion won of th

April 2, 2014

Shares up on exports data

South Korean stocks finished 0.32 percent higher Tuesday as investor sentiment was boosted by better-than-expected economic data both at home and abroad, analysts said. The South Korean won rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index gained 6.37 points to 1,991.98. Trading volume was slim at 207.4 million shares worth 3.7 trillion won ($3.4 billion), with gainers outnumbering losers 461 to 308.“Investors are positive about economic recovery on the back of an upti

April 1, 2014