Top 4 financial groups expected to see Q3 earnings rise

The country’s four major financial groups ― Woori, KB, Shinhan and Hana ― are predicted to post an increase in on-quarter net profit, financial researchers and analysts said Thursday.FnGuide, an online stock information provider, said it projected that KB Financial Group reaped about 422.3 billion won ($397 million) during the July-September period, marking a steep 155.6 percent growth on a quarterly basis.KB’s previous quarterly earnings had fallen largely due to temporary financial woes, such

Oct. 17, 2013

Major builders’ Q3 profits forecast to have dropped

The country’s major construction companies are expected to have suffered a drop in their earnings in the third quarter of the year, data showed Thursday, in the latest sign of trouble for local builders amid a protracted slump.The combined net profits of Hyundai Engineering & Construction Co., Daewoo Engineering & Construction Co. and four other builders are projected to reach 430 billion won ($404 million) in the July-September period, down 43 percent from the same period last year, according t

Oct. 17, 2013

Samsung begins work on R&D center in Silicon Valley

Samsung Electronics Co., the world’s largest smartphone maker, said Thursday that it has started construction on a new R&D center in California.The new R&D center in Mountain View, California, is expected to open in December next year, it said in a U.S. press release, adding that the state-of-the-art campus will provide the infrastructure necessary to support Samsung’s open innovation and university collaboration activities. The new state-of-the-art R&D center will provide an “outstanding enviro

Oct. 17, 2013

Seoul shares open higher on U.S. breakthrough

South Korean stocks got off to a strong start Thursday, cheered by the last-minute progress in talks among U.S. lawmakers to avoid a default, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) jumped 13.07 points, or 0.64 percent, to 2,047.68 in the first 15 minutes of trading. Shares gathered ground across the board, with Samsung Electronics moving up 0.9 percent and Hyundai Mobis, a blue-chip auto parts maker, rising 1.2 percent. U.S. markets closed more than 1 percent high

Oct. 17, 2013

Earnings gap widens between big and small firms

South Korean conglomerates saw their earnings gain at a faster pace last year than smaller firms, data showed Wednesday, reigniting concerns over the prolonged inequality among industries. According to the compiled data by the parliament’s Trade, Industry and Energy Committee, the productivity index for South Korean conglomerates came to 164.9 points in 2012, while small and medium firms held a comparable figure of 125.8 points.The number tracks how a firm’s productivity has improved over previo

Oct. 16, 2013

Goldman probed for illicit bond sales

The local operation of Goldman Sachs Group, a U.S. multinational investment bank, is likely to face a prosecutors’ investigation over its allegedly unlicensed overseas bond sales, according to market insiders on Wednesday. “We have conducted an investigation over three foreign-invested securities companies (including Goldman Sachs) in September, and are currently analyzing the results,” the Financial Supervisory Service said in a press release. The state regulator noted that it has completed a t

Oct. 16, 2013

Listed firms’ debt ratios improve since 1997 Asian crisis

South Korea’s listed firms saw their debt ratios plunge last year from 15 years earlier, data showed Wednesday, indicating their significantly improved financial health since the Asian financial crisis.According to the data compiled by the Korea CXO Institute, a private research organization, local listed firms saw their average debt ratio reach 145 percent in 2012 on average, falling significantly from 451.2 percent tallied in 1997.Debt ratio refers to the portion of debts in comparison to a fi

Oct. 16, 2013

Finance minister sees his 2014 growth outlook as ‘neutral’

The government’s growth outlook for next year is “neutral,” the finance minister said Wednesday, shrugging off criticism that the projection is too optimistic considering current economic conditions. “It is a neutral position to predict that the economy will grow 3.9 percent next year,” Finance Minister Hyun Oh-seok told lawmakers during a parliamentary audit session held here.The remarks came amid worries that the government’s growth forecast for next year might be too optimistic, compared with

Oct. 16, 2013

Only 1 in 3 CEOs in S. Korea survives term in office

Only one in every three chief executives in South Korea has extended his or her term in office, with their average term period turning out to be shorter at large enterprises, data showed Wednesday.The number of senior management-level officials at top 500 local firms who have been reappointed at least once came to 188, or 36.4 percent, out of 516 respondents, according to the data compiled by local corporate information provider CEO Score.Chances for executives at larger firms to renew their thr

Oct. 16, 2013

Seoul shares down 0.31 pct on U.S. default woes

South Korean stocks closed 0.31 percent lower Wednesday, weighed down by concerns that the U.S.might see its sovereign rating get downgraded on the partial government shutdown and a possible default, analysts said. The local currency rose slightly against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) fell 6.35 points to finish at 2,034.61. Trading volume was light at 258 million shares worth 4.24 trillion won ($3.97 billion) with decliners outstripping gainers 483 to 3

Oct. 16, 2013

Seoul shares down 0.04 pct in late-morning trade

South Korean stocks traded 0.04 percent lower late Wednesday morning, dented by tech and IT blue-chips, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) slid 0.83 points to 2,040.13 as of 11:20 a.m.Samsung Electronics lost 0.48 percent, with NAVER Corp, the top Internet portal service provider, dipping nearly 3.5 percent. However, autos and financial stocks trended higher. Hyundai Motor rose 0.8 percent and KB Financial Group gained 4 percent. The local currency was changin

Oct. 16, 2013

Seoul shares open higher amid U.S. debt ceiling talks

South Korean stocks opened higher Wednesday led by gains in large-cap financial shares amid the continuing U.S. debt ceiling negotiations, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) rose 4.6 points, or 0.23 percent to 2,045.56 in the first 15 minutes of trading. KB Financial Group, the No. 2 lender, shot up 2.5 percent and Hana Financial Group, the third largest banking firm, soared 2.8 percent. The local currency was trading at 1,068.25 won against the U.S. dollar as

Oct. 16, 2013

FSS accepts request for Tong Yang probe

The Financial Supervisory Service said on Tuesday that it accepted a petition by 600 retail investors requesting the financial authority to investigate the cash-strapped Tong Yang Group and its financial units.This marks the first time the FSS has taken a collective request by individuals for a probe into a conglomerate.FSS chief Choi Soo-hyun suggested such a system benchmarking that of Korea’s Board of Audit and Inspection upon his inauguration last March.“A significant number of investors hav

Oct. 15, 2013

Seoul shares hit yearly high on U.S. debt limit talk hopes

South Korean stocks hit a yearly high Tuesday, as investors pinned hopes on a deal among U.S. lawmakers to raise the debt ceiling, analysts said. The local currency rose against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) soared 20.69 points, or 1.02 percent, to finish at 2,040.96, the highest level since March last year. Trading volume was light at 222.3 million shares worth 3.96 trillion won ($3.72 billion) with gainers outpacing decliners 436 to 369. Analysts rema

Oct. 15, 2013

Seoul shares open higher on hopes for U.S. debt limit talks

South Korean stocks got off to a strong start Tuesday, buoyed by hopes that the United States could soon reach a deal to solve the political impasse over its debt ceiling, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) advanced 17.23 points, or 0.85 percent, to 2,037.50 in the first 15 minutes of trading. Shares gathered ground across the board, with machineries and service companies leading the climb. Doosan Heavy Industries, a major heavy equipment maker, soared nearly

Oct. 15, 2013

Liquidity crisis at big firms hampers corporate fund-raising

More companies are likely to have difficulty in raising funds by issuing commercial paper or bonds, as a huge portion of investors pull their investment out of the corporate bond market in the wake of a liquidity crisis among some conglomerates.Over the past year, business groups such as Tong Yang, STX and Woongjin undermined retail investors for an insolvent financial status.Investors for CPs and bonds issued by the three conglomerates are estimated to have faced collective losses of some trill

Oct. 14, 2013

U.S. debt, shutdown woes threaten economy

Failure to reach a bipartisan agreement over the federal debt ceiling of the world’s largest economy would be “catastrophic” and trigger a “worldwide crisis,” global financial leaders warned.Korea would not be an exception to this emerging scenario as the deadline to the debt limit negotiations looms large this week with no clear signs of the two parties securing a deal in sight, analysts said.Although the U.S. has never defaulted on its debt over the last 224 years of its history, failing to ra

Oct. 14, 2013

Seoul shares slip 0.23 pct amid U.S. debt ceiling woes

South Korean stocks closed 0.23 percent lower Monday, as investor sentiment was dented by concerns stemming from the political impasse in the U.S. over its debt limit with its deadline only three days away, analysts said. The local currency inched down against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) slid 4.63 points, or 0.23 percent, to finish at 2,020.27. Trading volume was light at 217.5 million shares worth 3.57 trillion won ($3.33billion) with decliners outpa

Oct. 14, 2013

Seoul shares revert to gains in late-morning trade

South Korean stocks reverted to positive territory late Monday morning after trading lower in the earlier session, as some large-cap financial and defensive shares turned to gains, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) added 0.39 points, or 0.02 percent to 2,025.29 as of 11:20 a.m.State-run Korea Electric Power Corp. shot up more than 2 percent, with Shinhan Financial Group advancing 1.2 percent. The local currency was changing hands at 1,072.55 won against the g

Oct. 14, 2013