Korea sells $1b currency stabilization bonds

South Korea has successfully sold dollar-denominated currency stabilization bonds worth $1 billion, the finance ministry said Thursday.This comes a day after the ministry said that it launched the official process for the bond sale with the selection of its lead managers.“We successfully sold $1 billion worth of dollar-denominated currency stabilization bonds with a 10-year maturity at 1:15 a.m. with a great amount of interest from investors in the U.S., Europe, Asia and across the world,” the m

Sept. 5, 2013

Korea’s economy ‘subdued,’ but outlooks improve: KDI

South Korea continues to see its recovery momentum remain “subdued” but the latest indicators are pointing to a “moderate” improvement down the road, a state-run think tank said Thursday.“Korea’s economy remained subdued, but indicators are increasing turning positive, signaling a moderate improvement,” the Korea Development Institute said in its monthly report analyzing the latest economic trend. The report is based on major indicators recently unveiled by the government including corporate inv

Sept. 5, 2013

Asiana Airlines to cut number of flights to Japan

Asiana Airlines Inc., South Korea’s No. 2 flag carrier, said Thursday that it will begin to cut the number of flights to two Japanese cities next month as a weaker yen takes its toll on the airline business.The carrier said it will cut its number of weekly flights to four from the current seven on the Incheon-Sendai route, beginning early next month. Sendai is one of the places hit hardest by the devastating earthquake and tsunami in 2011. Asiana, however, said the planned cut has nothing do wit

Sept. 5, 2013

Kia enjoys brisk sales of Cadenza sedan in U.S.

LOS ANGELES (Yonhap News) ― Kia Motors America, the U.S. sales arm of South Korea’s Kia Motors Corp., said Wednesday that it has been enjoying brisk sales of its Cadenza full-size luxury sedan in the United States, selling nearly 5,000 units so far this year. Kia introduced the Cadenza in the United States in April to try to gain a foothold in the country’s premium car market.Kia sold 1,677 Cadenzas in the U.S. in August, bringing the total number of Cadenzas sold this year to 4,832, according t

Sept. 5, 2013

Insurers to slash employees’ paychecks

South Korea’s insurance companies plan to slash their employees’ salaries, industry sources said Thursday, amid the rising criticism that insurers are giving excessive paychecks despite their weak performances.The move also comes in line with the government’s move to impose stricter rules on local insurers by providing a guideline on the firms’ wage system, in an apparent bid to protect policyholders and shareholders’ rights.“As insurers are operated with policyholders’ premiums, their manner of

Sept. 5, 2013

Real GNI growth fastest in four years

Korea’s gross national income rose 2.9 percent in the second quarter of this year compared with the previous quarter, the highest increase in four years, the Bank of Korea said Thursday.The central bank attributed the rise in real GNI per capita to brisk trade and increased income from Koreans working abroad. The country’s GNI growth has been falling since the second quarter of last year when the rate was 1.5 percent, then slid to 0.7 percent in the third quarter of 2012 and 0.3 percent in the f

Sept. 5, 2013

Seoul shares close 0.96 pct higher on eased Syria woes

South Korean stocks closed 0.96 percent higher Thursday as investor sentiment was boosted on abated woes over the Syrian crisis, analysts said. The local currency closed higher against the greenback.The benchmark Korea Composite Stock Price Index (KOSPI) gained 18.62 points to finish at 1,933.03. Trading volume was low at 281.9 million shares worth 4.41 trillion won (US$4.04 billion) with gainers outpacing losers 500 to 309.Analysts said Seoul shares closed higher as U.S.-led military action on

Sept. 5, 2013

Seoul shares up 0.72 pct in late-morning trade

South Korean stocks traded 0.72 percent higher on gains in carmakers and insurers, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) gained 13.83 points to 1,946.86 as of 11:20 a.m.Carmakers gathered ground, with Hyundai Motor adding 0.41 percent and its smaller affiliate Kia Motors climbing 0.92 percent. Top auto parts maker Hyundai Mobis added 1.98 percent.Insurers also gathered ground, with Samsung Life adding 0.5 percent and Hanwha Life increasing 2.13 percent. Dongbu Ins

Sept. 5, 2013

Seoul shares open higher on eased Syrian woes

South Korean stocks opened higher Thursday as investors' sentiment was boosted by reports that the U.S.-led military action against Syria will be limited to 60 days, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) moved up 7.63 points, or 0.39 percent, to 1,940.66 in the first 15 minutes of trading.Carmakers also traded higher, with Hyundai Motor rising 0.62 percent and its auto parts affiliate Hyundai Mobis gaining 1.26 percent. Shipbuilder Hyundai Heavy Industries added 0

Sept. 5, 2013

Three chaebol fined for violating disclosure rules

The Fair Trade Commission on Wednesday imposed fines of 665 million won ($578,000) in total on three conglomerates for breaching the disclosure rules on intra-group deals.Between April 2010 and March 2013, 17 out of the 38 business units of Lotte, POSCO and Hyundai Heavy Industries engaged in the irregular intra-group trading, said the antitrust regulator.The FTC revealed 25 violations by the 17 companies. As the cases involve “not publicizing” or “delaying disclosure,” allegations could be rais

Sept. 4, 2013

Logistics key bait for foreign investment

Strong logistics is the key advantage that differentiates Korea from neighboring emerging economies, chief executives of foreign-invested companies operating here said on Wednesday. The three classical incentives offered by host countries are tax reductions, site support and cash grants. Currently the Korean government charges no tax for the first 3-5 years, plus a 50 percent tax reduction for the following two years. It also provides land free of charge for 50 years and rent discounts, besides

Sept. 4, 2013

ING Life fined for over-purchasing bonds

The Financial Supervisory Service said on Wednesday that it has slapped the Korean life insurance unit of Netherlands-based ING Group with fines of 452 million won ($393,000) for breaching an insurance business law.ING Life was found to have over-purchased bonds issued by four companies including Korean Air between October 2010 and February 2012, thereby violating the law banning an insurer from owning too many bonds issued by a particular company.The FSS said the company formerly held bonds abo

Sept. 4, 2013

Fed likely to cut bond-buying stimulus: BOK head

South Korea’s top central banker said Wednesday that the U.S. Federal Reserve is expected to start tapering its bond-buying program amid growing market expectations that the bank would take such action this month.Bank of Korea Gov. Kim Choong-soo said that talk of a bond-buying stimulus program cut has shifted from whether the Fed would begin tapering to when, with only unforeseen circumstances standing in the way of its implementation.He made the remarks before holding a quarterly meeting with

Sept. 4, 2013

Seoul shares close almost flat on Syria woes

South Korean stocks closed almost flat Wednesday as investors took a wait-and-see approach amid rising concerns that the United States may conduct a military strike on Syria, analysts said. The local currency closed higher against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) shed 0.71 points, or 0.04 percent to finish at 1,933.03. Trading volume was low at 290.1 million shares worth 4.04 trillion won (US$3.68 billion) with gainers outpacing losers 384 to 381.Analysts s

Sept. 4, 2013

Seoul shares down 0.13 pct in late-morning trade

South Korean stocks traded 0.13 percent lower late Wednesday morning amid rising woes over possible military action by the United States in Syria, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) fell 2.42 points to 1,931.32 as of 11:20 a.m.Tech blue chips continued to trade lower, with Samsung Electronics falling 0.6 percent and flat panel maker LG Display losing 1.89 percent. Samsung Electro-Mechanics, a local industrial parts maker, shed 0.61 percent.Retailers also traded

Sept. 4, 2013

S. Korea's FX reserves hit record high in Aug.

South Korea's foreign-exchange reserves climbed to a fresh record high in August due to gains in investment profits, the central bank said Wednesday.The country's foreign reserves reached US$331.09 billion as of end-August, up $1.38 billion from the previous month, according to the Bank of Korea (BOK).The FX reserves rose for the second straight month in August after falling by the largest amount in 13 months in June.Foreign reserves consist of securities and deposits denominated in overseas cur

Sept. 4, 2013

NTS probing 28 individuals with paper companies

The National Tax Service said Tuesday that it launched an additional probe into 10 people who allegedly evaded taxes by setting up paper companies abroad.This brings the total to 28 people currently under scrutiny by the tax auditor that is tracking down tax evasion via ghost companies.The NTS has so far levied additional taxes worth 71.4 billion won ($65.2 million) against 11 people who were found to have not reported their tax-haven deposits to the authority since the beginning of the second h

Sept. 3, 2013