Financial policymakers on alert over capital inflows

Financial policymakers and regulators are raising their alert level and increasing their monitoring of the markets as the country faces a growing inflow of capital pulled out of emerging markets following the U.S. Federal Open Market Committee’s decision to maintain its monetary stimulus.Korean policymakers are reportedly looking closely at incoming capital to see whether it is being invested in the financial markets for speculative purposes.The sudden capital inflow, as well as outflow, could i

Sept. 24, 2013

Interest payments for government debt to exceed W20tr: FSC

Financial authorities said Tuesday that the government would have to pay about 20.3 trillion won ($18.9 billion) in debt interest this year. Financial analysts said the government’s high interest payments may elevate concerns about the nation’s fiscal soundness.The interest payment for the government debt this year rose to 20.3 trillion won ($18.9 billion), or about 7.7 percent of this year’s total state revenue, the Financial Services Commission said in a report to ruling Saenuri Party lawmaker

Sept. 24, 2013

S&P affirms Korea’s ‘A plus’ rating

Global credit ratings agency Standard & Poor’s said Tuesday that it has affirmed its sovereign credit rating for South Korea at “A plus,” citing the country’s “favorable” policy environment and “sound” fiscal position.The rating is the agency’s fifth-highest level. The agency also retained its long-term rating for South Korea at “stable,” according to its emailed statement.“The rating on Korea reflects its favorable policy environment, sound fiscal position and broadly balanced external liabilit

Sept. 24, 2013

Shares down on U.S. policy woes

South Korean stocks closed 0.11 percent lower Tuesday as investor sentiment was dented by uncertainties stemming from the United States over raising its debt ceiling, analysts said. The local currency gained against the U.S. dollar.The benchmark Korea Composite Stock Price Index lost 2.31 points to finish at 2007.10. Trading volume was moderate at 297.5 million shares worth 4.16 trillion won ($3.87 billion) with losers outpacing gainers 461 to 341.Analysts said Seoul shares closed lower due main

Sept. 24, 2013

Seoul shares down 0.11 pct on U.S. policy woes

South Korean stocks closed 0.11 percent lower Tuesday as investor sentiment was dented by uncertainties stemming from the United States over raising its debt ceiling, analysts said. The local currency gained against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) lost 2.31 points to finish at 2007.10. Trading volume was moderate at 297.5 million shares worth 4.16 trillion won (US$3.87 billion) with losers outpacing gainers 461 to 341.Analysts said Seoul shares closed lowe

Sept. 24, 2013

Dispute looms over state-run banks’ move to buy Woori units

Controversy is expected to flare up as some state-run banks are set to participate in the upcoming bidding for the government-led sale of Woori Financial Group units.The state-funded Industrial Bank of Korea on Monday tendered the letter of intent to acquire Kyongnam Bank to financial authorities, one of the two provincial lenders of the public funds-injected Woori Financial.IBK will vie for Kyongnam Bank with other potential bidders including Busan-based BS Financial Group, Daegu-based DGB Fina

Sept. 23, 2013

Four manufacturers fined for survey refusal

Statistics Korea has slapped fines on four companies that refused to participate in one of its surveys for the first time since its foundation.The country’s statistics bureau said Monday that it imposed combined fines of some 1.9 million won on four unidentified manufacturers late last year as they ignored requests to respond to its survey for statistics on industrial production.The bureau, by law, has the right to levy penalties against any companies that refuse to answer its surveys, which are

Sept. 23, 2013

Woori to close preliminary bidding for regional bank sales

Woori Finance Holdings Co. is set to end Monday the preliminary bidding for its regional bank units, its officials said, as part of the privatization process to sell the No. 1 state-funded banking group. The Korea Deposit Insurance Corp. (KDIC), the state-run debt clearer that holds the controlling stake in Woori Finance, will close the preliminary bidding for Kyongnam Bank and Kwangju Bank later Monday as planned, according to KDIC officials. The bidding is the first part of the government's th

Sept. 23, 2013

Seoul shares up 0.19 pct on Fed's move to hold QE

South Korean stocks closed 0.19 percent higher Monday as investors' sentiment was boosted by the U.S. Federal Reserve's decision to keep its current bond-purchasing program in place, analysts said. The local currency gained against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) gained 3.83 points to finish at 2,009.41. Trading volume was moderate at 243.1 million shares worth 4.89 trillion won ($4.55 billion) with gainers outpacing losers 437 to 379.Analysts said Seoul s

Sept. 23, 2013

Seoul shares up 0.37 pct in late-morning trade

South Korean stocks traded 0.37 percent higher late Monday morning following the U.S. Federal Reserve's decision to keep its current bond-purchasing program in place, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) gained 7.45 points to 2,013.03 as of 11:20 a.m.Shipbuilders traded higher, with Hyundai Heavy Industries rising 2.5 percent and Samsung Heavy Industries moving up 2.47 percent. Top auto parts maker Hyundai Mobis gained 1.71 percent.Builders also traded bullish, w

Sept. 23, 2013

Seoul shares open lower on profit-taking

South Korean stocks opened lower Monday as investors continued to seek after profit-taking following the market's recent steep gain, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) fell 2.97 points, or 0.15 percent, to 2,002.61 in the first 15 minutes of trading.Shares lost ground across the board, with tech giant Samsung Electronics falling 1.37 percent and No. 1 carmaker Hyundai Motor losing 2.34 percent. Top steelmaker POSCO shed 0.46 percent.Logistics also traded lower,

Sept. 23, 2013

Woori to close preliminary bidding for regional bank sales

Woori Finance Holdings Co. is set to end Monday the preliminary bidding for its regional bank units, its officials said, as part of the privatization process to sell the No. 1 state-funded banking group. The Korea Deposit Insurance Corp. (KDIC), the state-run debt clearer that holds the controlling stake in Woori Finance, will close the preliminary bidding for Kyongnam Bank and Kwangju Bank later Monday as planned, according to KDIC officials. The bidding is the first part of the government's th

Sept. 23, 2013

Accounting sector taps overseas market

Korea’s major accounting firms are seeking to reinforce their overseas businesses, as the nation’s accounting transparency and auditing skills have approached international standards after years of efforts by financial regulators and businesses.Samil PricewaterhouseCoopers has initiated the movement to make inroads into overseas markets while its competitors such as Deloitte Anjin, Samjong KPMG and Ernst & Young Korea are poised to follow suit.Samil, the Korean member firm of London-based PwC, s

Sept. 22, 2013

Shares likely to move upward this week

South Korean stocks will likely move in positive terrain this week, backed by a solid foreign inflow, although momentum will be capped by uncertainties stemming from the U.S. monetary policy, analysts said Sunday. The benchmark Korea Composite Stock Price Index closed at 2,005.58 on Tuesday, up 2.57 percent from the previous week. The main bourse was closed for the rest of the week for the three-day Chuseok holiday. Chuseok is the Korean version of American Thanksgiving.The KOSPI had rallied in

Sept. 22, 2013

Banks set target for bad loan ratio at 1.49%

South Korea banks are targeting to keep the portion of bad loans against their total lending at 1.49 percent at the end of this year, the financial regulator said Sunday.The target bad loan ratio is up from 1.33 percent a year earlier and 1.36 percent at the end of 2011, according to the Financial Supervisory Service. A bad loan refers to a loan with a default potential due to the borrower‘s failure to pay interest or make principal repayments for 90 days.The higher target ratio is due to a chan

Sept. 22, 2013

Counterfeiting of banknotes more than double in 4 years

Counterfeiting of banknotes more than doubled in South Korea between 2008 and last year as electronics devices have become more sophisticated amid an economic slump, a lawmaker said Saturday.Counterfeit bills reported to police totaled 8,202 cases last year, a 225 percent rise from 3,644 cases in 2008, said Rep. Kim Hyun of the main opposition Democratic Party, citing data submitted by the National Police Agency.Suspects were apprehended in 265 counterfeit cases last year, a 145 percent rise fro

Sept. 22, 2013

Won dips most among emerging-nation currencies

South Korea has seen the biggest drop in its real effective exchange rate among emerging countries when compared with the value before the start of the 2008 global financial crisis, data showed Sunday.As of the end of last year, the won’s real effective exchange rate was 20.6 percent lower than its pre-crisis level, according to the data by the Institute of International Finance.The decline was far higher than 9.7 percent for Mexico, 6.1 percent for India, 3.3 percent for Turkey and 1.7 percent

Sept. 22, 2013