Korea among six promising nations for investors

South Korea will be attractive to global investors over at least the next five years, a U.S. magazine said, citing its size, recent performance and economic potential.In its latest edition, Foreign Affairs magazine picked South Korea and five other countries ― Mexico, Poland, Turkey, Indonesia and the Philippines ― as well as the Mekong region.They are “well positioned to thrive” as China’s economic growth slows and many of other once-hot emerging markets have cooled, it said.“The BRICs are crum

Jan. 5, 2014

Government debt rising at worrisome pace

South Korea’s level of national debt is lower than other major economies, but its pace of increase over the past 10 years is a source of concern, finance and budget officials said Sunday.An estimate based on the 2014 budget puts the year’s government debt at 514.8 trillion won ($487.96 billion), up 50.1 trillion won from 2013. The projected ratio of debt to gross domestic product is 36.4 percent, well below the 108.8 percent average of member states of the Organization for Economic Cooperation a

Jan. 5, 2014

Central bank to keep tabs on currency market

South Korea’s central bank will stay vigilant to closely monitor the cross-border movement of foreign capital and take steps to stabilize the financial markets if needed, its chief said Friday. Bank of Korea Gov. Kim Choong-soo said that changes in the U.S. monetary policy direction and market reactions could increase volatility in cross-border capital flows and price movements.“We should wisely cope with changes in global economic conditions related to the Federal Reserve’s reduction of the mon

Jan. 3, 2014

Samsung Electronics takes hit on weak outlook

Samsung Electronics continued to take a beating Thursday following broader equity market losses as the tech giant’s weaker-than-expected earnings in the fourth quarter and the rapid pace of the won’s appreciation has affected investor confidence, analysts said.Samsung Electronics has slid since Dec. 24 as foreign and institutional investors turned pessimistic toward Korea’s biggest blue chip stock on expectations that the company would post disappointing earnings in the fourth quarter of 2013.Th

Jan. 3, 2014

Seoul shares hit 4-month low on foreign selloff

South Korean stocks declined to a four-month low Friday, extending the fall for a second day since the new year started as uncertainties about local equity market prompted foreigners to unload their holdings, analysts said. The local currency lost ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index retreated 21.05 points, or 1.07 percent, to close at 1,946.14, the lowest level since Sept. 3, 2013. Trading volume was light at 186.1 million shares worth 3.94 trillion won

Jan. 3, 2014

Seoul shares end 2.2 pct lower on first day of trading in 2014

South Korea has slashed the budget for an ambitious plan to build a peace park inside the heavily fortified border with North Korea, the unification ministry said Thursday.The National Assembly has earmarked 30.2 billion won ($28.7 million) for the pet project of President Park Geun-hye, 10 billion won less than requested by the ministry in charge of inter-Korean affairs. The Assembly cited a lack of feasibility as the reason for the reduction. Last year, Park proposed that the two Koreas build

Jan. 2, 2014

Gov't reserved about raising tax rates: minister

The government remains reserved about hiking tax rates, the finance minister said Thursday, adding that he prefers expanding the overall revenue base by reducing existing tax breaks and exemptions.The remarks by Hyun Oh-seok came a day after the National Assembly passed laws that will lower the taxable annual income threshold subject to the highest tax rate.This change would eventually result in more people paying more taxes, which critics say would run counter to the President Park Geun-hye gov

Jan. 2, 2014

Derivatives trading volume plunges 12.3 pct in 2013

The trading volume of financial derivatives on the local bourse fell last year as demand for such tools declined amid a bearish run on the local stock market, data showed Thursday.The daily average trading volume of the derivatives, including futures and options, dropped 12.3 percent on-year in 2013 to 47.9 trillion won ($45.6 billion), compared with 54.6 trillion won tallied a year earlier, according to the data compiled by the Korea Exchange.The daily amount of contracts also sank to 3.32 mill

Jan. 2, 2014

FTC fines 21 builders for bidding collusion

South Korea's antitrust watchdog on Thursday fined 21 construction companies a combined 132.2 billion won ($125.9 million) for collusion in the bidding process for a large-scale subway construction project.Those subject to the fine include big name builders such as Hyundai E&C, Hyundai Development Company, POSCO E&C, GS E&C, SK E&C and Daewoo E&C, according to the Fair Trade Commission.The FTC said it will refer 15 of the companies to the prosecution for further investigation.The builders allege

Jan. 2, 2014

Foreign stock funds shine in 2013: data

Foreign stock funds that consist of stocks of companies outside South Korea basked in sunny gains last year that far surpassed returns by foreign bond funds and funds that invest in local equities, data showed on Thursday.Foreign stock funds yielded an average 3.41 percent last year, far higher than an average 0.76 percent return posted by funds that invest in local stocks, according to the data compiled by market researcher Zeroin. The comparable figures for foreign bond funds and domestic bond

Jan. 2, 2014

Stock market volatility index fell to record low in 2013

The South Korean stock market's volatility index dropped to an all-time low in 2013, data showed on Thursday, indicating that the local shares traded in a tight range last year amid protracted economic recovery.The so-called V-KOSPI 200 index came in at 15.29 last year, marking the lowest since 2003 when comparable figures were available, according to the data compiled by the Korea Exchange. The bourse operator started publishing the index in 2009.The index represents the volatility of the main

Jan. 2, 2014

Seoul shares open 0.1 pct lower on first day of trading in 2014

South Korean stocks inched down Thursday, the first day of trading in the new year, as tech shares and automakers lost ground, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) fell 2.08 point, or 0.1 percent to 2,009.26 in the first 15 minutes of trading. Market leader Samsung Electronics fell 2.48 percent to 1,338,000 won and top carmaker Hyundai Motor declined 0.63 percent to 235,000 won.Analysts said the yen's weakness and tepid corporate earnings may cap gains of the KOS

Jan. 2, 2014

Stocks may see ‘January effect’

The Korean stock market is expected to see the so-called “January effect” as the benchmark equity index has historically performed strongest in the first month of the year, analysts said.The rally would be mostly driven by festive holidays not only in Korea but also China and the U.S., which would lead to increased retail sales and, thus, to increased domestic consumption.These factors have had positive effects on the stock market by boosting both consumer and investor sentiment.The benchmark KO

Jan. 1, 2014

Assembly approves tax hikes for top earners, major conglomerates

The National Assembly on Wednesday passed a package of measures aimed at bolstering the country’s weak tax revenues and improving fiscal balance by imposing more taxes on high-income earners and major conglomerates.Facing a tight Wednesday deadline, the ruling and opposition lawmakers agreed to legislate the package that included levying a 38 percent tax on individuals who earn more than 150 million won ($142,000) a year. Korea previously applied the tax rate on the rich with an annual income of

Jan. 1, 2014

Woori picks preferred bidders for regional banks

  Two provincial banking firms won the bid Tuesday to each buy a regional bank unit of Woori Finance Holdings Co., giving a hand to the government's long-pending sale of South Korea's largest banking group, ank and regulatory sources said.   The state-run Korea Deposit Insurance Corp. (KDIC), the controlling shareholder of Woori Finance, picked Busan-based BS Financial Group Inc. as the preferred bidder for Kyongnam Bank, and JB Financial Group Co., based in the southern  city of Gwangju, for Kw

Dec. 31, 2013

Korea ranks 14th among G20 in stock growth

Korean stocks inched up 14.29 points in 2013 to close above the 2,000 mark after fluctuating between 1,750 and 2,060 throughout the year. The main index posted the 14th-highest growth among main bourses of the Group of 20 countries.The Korea Composite Stock Price Index closed at 2,011.34 on Monday, the last trading session of the year. It is only a 0.7 percent increase from 1,997.05 of the last session of 2012.While G20 countries’ average equity prices index expanded 14.2 percent in 2013, KOSPI

Dec. 30, 2013