The Korea Herald

Foreigners turn to selling local equities in 5 months

Foreigners turned net sellers of local equities for the first time in five months, mainly on profit-taking after consecutive net stock purchases in the Seoul market, the financial regulator said Sunday.Overseas investors dumped a net 323 billion won (US$305.3 million) worth of local equities last month, turning from a net buying of 5.2 trillion won the previous month, according to the Financial Supervisory Service (FSS).The value of their shares reached 442.6 trillion won at the end of November,

Dec. 8, 2013

Financially shaky firms further going downhill: data

South Korean companies with weak financial footing saw their balance sheets worsen further this year amid a protracted economic slowdown, with their debt ratio sharply rising and their ability to pay back interest declining, industry data showed on Sunday.According to the data, the top 300 in terms of debt ratio, out of 1,501 listed non-financial firms, had the average debt ratio of 279.2 percent as of end-June this year, rising 35.7 percentage points from a year earlier.The June figure also com

Dec. 8, 2013

Jeonse prices up for record 66th consecutive week

The jeonse prices of apartments across the nation increased for the 66th consecutive week, the longest streak in the nation’s history, according to a newly released report.Online real estate information provider R114.com said the prices of apartment jeonse inched up 0.06 percent this week from a week earlier. Jeonse is a Korean-style rental system in which a tenant deposits a lump sum of money instead of paying monthly rent.The price increase breaks the earlier record of 65 consecutive weeks, st

Dec. 6, 2013

NPS seeks to safeguard overseas investments

The National Pension Service, Korea’s state-run pension fund manager, will aim to fully protect its investments in overseas bonds by hedging against foreign exchange risks through efficient management, the NPS’ National Fund Management Committee said Friday.The committee said that the NPS will seek to safeguard its bond investments abroad by targeting a hedge ratio of 100 percent next year. It has set the ratio at zero percent for its 2014 overseas equity investment portfolio.The NPS will seek t

Dec. 6, 2013

FSC chief urges SME financial support

Financial Services Commission chairman Shin Je-yoon said Friday that Korea would need to reshape its financial environment to allow small and medium-size enterprises to expand overseas, even though earlier attempts have failed.In a seminar for members of the Korea Chamber of Commerce and Industry, the FSC chief stressed that a convergence between finance and manufacturing in the economy is necessary for sustainable growth.Shin said that the financial industry has not been doing its part, and wil

Dec. 6, 2013

Banks’ foreign currency deposits hit record high

Foreign currency deposits at South Korean banks rose to another record high in November following those of the previous month, due to a hike in yuan-denominated deposits, the central bank said Friday. Outstanding foreign currency-denominated deposits held by residents reached $48.61 billion as of the end of November, up $2.49 billion from a month earlier, according to the Bank of Korea. The groups classified as residents include local citizens, foreigners staying here for more than six months an

Dec. 6, 2013

Seoul shares close 0.22 pct lower ahead of U.S. data release

South Korean stocks closed 0.22 percent lower Friday as investors awaited job data from the United States to be released later in the day, analysts said. The local currency gained against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) shed 4.36 points to 1,980.41. Trading volume was low at 198.5 million shares worth 3.25 trillion won ($3.07 billion) with losers outpacing gainers 435 to 374.Analysts said investors maintained a wait-and-see approach toward November's U.S.

Dec. 6, 2013

Seoul shares trade flat in late-morning trade

South Korean stocks traded almost flat late Friday morning as investors took to the sidelines ahead of the release of U.S. jobs data, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) shed 2.55 points, or 0.13 percent, to 1,987.32 as of 11:20 a.m.Blue-chip shares traded mixed, with tech giant Samsung Electronics falling 0.14 percent while top chipmaker SK hynix added 3.07 percent. Flat panel maker LG Display advanced 4.7 percent.Mobile carriers also traded mixed, with No. 1 S

Dec. 6, 2013

Seoul shares open flat amid U.S. jobs data

South Korean stocks opened almost flat Friday as investors took a wait-and-see approach on the U.S.jobs data for November, scheduled to be announced after the trading session, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) shed 1.08 points, or 0.05 percent, to 1,983.69 in the first 15 minutes of trading.Tech shares moved up, with market behemoth Samsung Electronics adding 0.07 percent and flat panel maker LG Display rising 2.99 percent. Top chipmaker SK hynix moved up 0.73

Dec. 6, 2013

IMF urges Korea to focus on female workforce, services

Christine Lagarde, managing director of the International Monetary Fund said Thursday that Korea needs to implement a package of economic reform measures to sustain growth.The Korean economy is “more resilient than it was five years ago,” she told the press.But Asia’s fourth-largest economy needs to do more in the face of low female labor participation and low productivity in the services market.She suggested that Korea should make its labor market “more inclusive” to temporary or nonregular wor

Dec. 5, 2013

IMF urges Korea to focus on female workforce, services

GNI growth falls to lowest in six quarters

Bank of Korea data showed Thursday that growth of gross national income, which indicates purchasing power, stood at its lowest level in the past six quarters.The GNI for the third quarter inched up 0.2 percent from the previous quarter, which marks the lowest rate since it posted 0.1 percent in the first quarter of 2012.It is a noteworthy slowdown, compared to the 2.9 percent growth in the second quarter of 2013 and 0.8 percent in the first quarter.According to BOK officials, the stalled growth

Dec. 5, 2013

Goldman Sachs faces sanction for unauthorized sales: FSS

Regulators are set to punish the Korean operation of Goldman Sachs for breaching the law on sales of overseas financial products including government bonds issued in Malaysia.The Financial Supervisory Service said Thursday that it has completed an investigation into Goldman Sachs on allegations that the Wall Street giant sold the products directly to domestic consumers “without going through its Korean unit.”The nation’s laws and regulations require the sales of international bonds to the local

Dec. 5, 2013

Seoul shares down 0.1 percent amid improving U.S. data

South Korean stocks edged down 0.1 percent Thursday as investors were concerned that the improved U.S. economic data may induce its central bank to cut stimulus moves earlier than expected, analysts said. The local currency gained against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) shed 2.03 points to 1,984.77. Trading volume was low at 213.1 million shares worth 3.26 trillion won ($3.07 billion) with losers outpacing gainers 416 to 364.Analysts said Seoul shares clos

Dec. 5, 2013

Seoul shares trade lower in late-morning trade

South Korean stocks traded 0.26 percent lower late Thursday morning on losses in shipbuilders and construction firms, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) shed 5.22 points to 1,981.58 as of 11:20 a.m.Shipbuilders traded bearish, with Hyundai Heavy Industries moving down 1.56 percent and Samsung Heavy Industries losing 1.05 percent. Daewoo Shipbuilding & Marine Engineering declined 2.49 percent.Builders also continued to lose ground, with Hyundai Engineering & Con

Dec. 5, 2013

Seoul shares open flat amid U.S. woes

South Korean stocks opened almost flat Thursday as investors remained cautious over a possible tapering of U.S. quantitative easing, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) gained 0.35 points, or 0.02 percent, to 1,987.15 in the first 15 minutes of trading.Blue-chip shares edged up, with market behemoth Samsung Electronics adding 0.28 percent and No. 1 carmaker Hyundai Motor rising 0.64 percent. Leading steelmaker POSCO gained 0.45 percent.Builders traded bearish, w

Dec. 5, 2013

GCF, World Bank offices open in Songdo

President Park Geun-hye said Wednesday that Korea would fully support developing and underdeveloped economies in tackling climate change through the Green Climate Fund.At the ceremony for the opening of the GCF’s permanent headquarters in Songdo, Incheon, the president said that Korea would continue to invest in technologies such as renewable energy, carbon capture and storage and energy management systems as part of efforts to make the world more environmentally friendly.She urged not only the

Dec. 4, 2013

FSS chief promises global standard in financial regulations

Financial Supervisory Service Governor Choi Soo-hyun said Wednesday that Korea will meet global standards in regulating domestic and foreign financial firms’ local operations.He delivered the pledge at a luncheon meeting with members of the American Chamber of Commerce in Korea in downtown Seoul to mark the 60th anniversary of the institution’s establishment.While Choi reiterated that the authorities would foster a level playing field between domestic and foreign capital on the basis of global s

Dec. 4, 2013

FSS chief promises global standard in financial regulations

Ex-Hana Financial chief quits adviser post

Former Hana Financial Group chairman Kim Seung-yu expressed his willingness to step down from his post as adviser to the financial firm.His departure comes after the Financial Supervisory Service said it was investigating allegations that Kim had engaged in irregular business practices during his tenure as the group’s chief.Hana Bank owns about 4,000 pieces of artwork. Kim is known to be an art lover but the FSS suspects there is more to the bank’s unusually large art collection.On Tuesday, the

Dec. 4, 2013

Seoul shares drop 1.12 percent on Fed tapering woes

South Korean stocks sank 1.12 percent Wednesday as better-than-expected economic data from the United States revived woes that its central bank may scale back a massive stimulus measure in the near future, analysts said. The local currency gained against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) shed 22.56 points to 1,986.80. Trading volume was low at 226 million shares worth 3.57 trillion won ($3.36 billion) with losers outpacing gainers 521 to 283.Analysts said Se

Dec. 4, 2013

Seoul shares trade lower in late-morning trade

South Korean stocks traded 0.85 percent lower late Wednesday morning on losses in technology firms and mobile carriers, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) shed 17.15 points to 1,992.21 as of 11:20 a.m.Tech shares continued to trade mostly lower, with market behemoth Samsung Electronics falling 1.3 percent and flat panel maker LG Display losing 2.1 percent. Top chipmaker SK hynix, in contrast, gained 0.43 percent.Mobile carriers traded bearish, with SK Telecom m

Dec. 4, 2013