Financial groups pressed to cut ‘fat cat’ salaries

Heads of the nation’s top four financial groups will see their annual salaries slashed by at least 30 percent this year, according to regulatory officials on Tuesday.They are Woori Financial chairman Lee Soon-woo, KB Financial chairman Lim Young-rok, Hana Financial chairman Kim Jung-tai and Shinhan Financial chairman Han Dong-woo.The four groups have notified the Financial Supervisory Service of their decision to cut their chiefs’ yearly wages by 30-40 percent from the levels of a year earlier,

Jan. 14, 2014

Seoul shares close higher on abated QE woes

South Korean stocks closed higher Monday as the weaker-than-expected U.S. jobs data curbed concerns that its central bank may speed up the tapering of its quantitative easing, analysts said. The Korean won closed higher against the U.S. dollar.The benchmark Korea Composite Stock Price Index gained 10.38 points, or 0.54 percent, to 1,948.92. Trading volume was low at 263.9 million shares worth 3.31 trillion won ($3.14 billion) with gainers outpacing losers 450 to 360.Analysts said Seoul shares ga

Jan. 13, 2014

Watchdogs urge financial firms against data breaches

The authorities on Monday urged financial companies to tighten their data security systems against leaks following a massive release of confidential information at some credit card firms last week.The Financial Supervisory Service called into office more than 80 executives in charge of data and security management for an emergency meeting and asked for vigilance in protecting customers’ data from unauthorized access.“Information leakage does not only violate privacy but also undermines growth of

Jan. 13, 2014

S. Korea needs to revise definition of 'close relations' in tax

South Korea needs to redefine what constitutes close family relations in its basic tax code law to reflect realistic social and economic conditions, a think tank belonging to an association of conglomerates insisted Monday.According to the Korea Economic Research Institute, the research arm of the Federation of Korean Industries, South Korea maintains outdated taxation rules that define close blood and in-law relatives based on revisions made in 1974. It said such rules do not reflect the way pe

Jan. 13, 2014

Banks' foreign currency deposits dip in December

Foreign currency deposits in South Korean banks declined for the first time in seven months in December as companies withdrew money to cover import bills, the central bank said Monday.Outstanding foreign currency-denominated deposits held by residents reached $48.44 billion as of end-December, down $170 million from a record high of $48.61 billion in November, according to the Bank of Korea.It marked the first decline since May when such deposits fell by $1.66 billion.Residents include local cit

Jan. 13, 2014

Lotte joins race for LIG acquisition

Lotte Group, a conglomerate whose businesses range from fast food to retail and construction, has joined the race to take over LIG Insurance Co., a local non-life insurer, industry sources said Monday.According to the sources, Lotte picked Swiss banking giant Credit Suisse as its financial advisor for the acquisition, Ernst & Young Han Young as its accounting advisor and Milliman Korea as its actuarial advisor."It is true that we have an interest in buying LIG Insuarnce," a Lotte official said,

Jan. 13, 2014

Samsung Electronics falls in market cap ranking amid weak earnings outlook

Samsung Electronics Co. fell in market cap rankings in the global IT industry, dogged by dull fourth-quarter earnings estimate and the weakening Japanese yen, data from the Korea Exchange showed Monday.The market cap for the world's No. 1 maker of smartphones was 187.3 trillion won ($176.6 billion) as of Friday, down 16.7 percent from 224.9 trillion won posted end-March 2013, according to the data.The ranking is two below where the company was in March last year when it had nudged out Microsoft

Jan. 13, 2014

Most foreign firms unhappy with local investment climate

More than half of foreign companies operating in South Korea are dissatisfied with the country's investment environment due to a volatile economy and lack of policy consistency, a poll showed Monday.The same poll showed that there were more firms that anticipated a decrease in foreign investment this year than those that expected an increase.According to the recent poll of 201 foreign companies by the Korea Chamber of Commerce and Industry, 55 percent of the respondents said that the local inves

Jan. 13, 2014

Seoul shares open higher on techs, autos

South Korean stocks opened higher Monday led by gains in technology firms and carmakers, analysts said.The benchmark Korea Composite Stock Price Index added 8.98 points, or 0.46 percent, to 1,947.52 in the first 15 minutes of trading.Tech shares led the market gain, with Samsung Electronics rising 0.71 percent and its smaller rival LG Electronics climbing 0.61 percent. Flat panel maker LG Display added 1.15 percent.Carmakers also gathered ground, with No. 1 Hyundai Motor moving up 2.26 percent a

Jan. 13, 2014

NongHyup denies its role over Lee's suspected money laundering

NongHyup Bank denied a media report on Sunday that it served as a conduit for former President Lee Myung-bak to launder money while he was in office.The Weekly Hankook, the weekly magazine under Hankook Ilbo, reported in its online edition that former President Lee Myung-bak, who took office from February 2008 for five years, was suspected of laundering money via NongHyup Bank.The report said that after receiving an award from the United Arab Emirates with a monetary prize worth US$500,000 in Ma

Jan. 12, 2014

Savings banks, small-cap lenders involved in customer data leak

Amid growing anxiety over a nationwide information breach committed by foreign banks and credit card companies, it was discovered that several nonbank financial organizations, too, leaked personal information of their customers.In a belated move to prevent further damages, financial authorities launched an urgent security inspection, focusing on non-bank organizations, which tend to be more vulnerable to information leaks.According to financial sources on Sunday, up to hundreds of thousands of p

Jan. 12, 2014

ETF turnover jumps 46 percent in 2013

The daily turnover in South Korea's exchange-traded funds market jumped 46 percent last year as investors moved to safer and profitable destinations amid low interest rates, data showed Sunday.The average daily trading volume of ETFs came to 793 billion won ($747 million) last year, compared with 544 billion won a year earlier, according to the data compiled by bourse operator Korea Exchange.An ETF refers to an investment fund traded on stock exchanges and represents a basket of stocks that refl

Jan. 12, 2014

S. Korea's tea imports spike in 2013

South Korea's tea imports spiked last year as demand increased for healthy and diet foods, customs data showed Sunday.According to the data by Korea Customs Service, South Korea imported 8,234 tons of tea last year, up 97 percent from 4,171 tons imported in 2009.The imports were valued at $48.38 million, which represented a 187 percent rise from the $16.86 million tallied four years earlier, the data showed.Imports of yerba mate tea surged from 47 tons in 2009 to 446 tons in 2013, while those of

Jan. 12, 2014

State bonds issuance hits record high in 2013

South Korea issued a record amount of government bonds last year as part of efforts to kick-start the economy and finance its welfare projects, data showed Sunday.According to the data by the Korea Financial Investment Association and Dongbu Securities Co., state bonds worth an all-time high of 135.7 trillion won ($128 billion) were floated last year, up 21.4 percent from the previous year.The amount of state bonds issued per year has been growing sharply since 2011, when it breached the 100 tri

Jan. 12, 2014

Yen's fall to hit machinery, steel, automobile sectors: report

South Korea's machinery, steel and automobile industries could bear the brunt of the yen's prolonged weakness as it undercuts their price competitiveness in overseas markets, a central bank report showed Sunday.The yen has been losing ground sharply against the U.S. dollar, helping enhance price competitiveness of Japanese products. This raises concerns that South Korea's exports could be negatively affected as many of its products compete with their Japanese rivals in the global market."The slu

Jan. 12, 2014

State auditor to probe financial watchdog over Tong Yang oversight

The state auditor plans to launch a special inspection of the nation's financial watchdog next week in connection with its oversight of a family-controlled conglomerate accused of fraud and malpractice in issuing bonds, a source said Sunday.Tong Yang Group, the 38th-largest conglomerate in South Korea, is suspected of selling debts worth around 2 trillion won ($1.89 billion) to investors without fully informing them of its repayment conditions and default risks."The Board of Audit and Inspection

Jan. 12, 2014

On-site inspection into Kookmin Bank's Tokyo branch to resume: sources

South Korea's financial authorities will resume their on-site inspection this week into the Tokyo branch of Kookmin Bank suspected of extending illegal loans and creating slush funds, industry sources said Sunday.The Tokyo branch of South Korea's leading bank has been investigated over suspicions that it extended about 400 billion won ($376.9 million) worth of illegal loans to Japan-based firms to secure returns, some of which were later used to amass slush funds here in Korea.The Financial Supe

Jan. 12, 2014