KB Financial to study possible takeover of Woori

KB Financial Group Inc. plans to study whether to seek to buy South Korea’s top banking group Woori Finance Holdings Co. as part of efforts to boost the group’s competitiveness, its head nominee said Tuesday.The Financial Services Commission, the financial regulator, plans to unveil detailed plans to privatize the state-invested Woori Finance on Wednesday, including a possible separate sale of the group’s smaller bank units.Lim Young-rok, the chairman nominee of the KB Financial Group, said it i

June 25, 2013

Seoul shares hit yearly-low on China woes

South Korean stocks declined to the lowest point in the year on Tuesday, as increasing fears on China's step to squeeze money added to fresh worries about the local economy on top of a possible end of the U.S. monetary easing, analysts said. The local currency inched up against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) fell 18.38 points, or 1.02 percent, to close at 1,780.63. Trading volume was moderate at 326.3 million shares worth 4.40 trillion won ($3.78 billion

June 25, 2013

Seoul shares up 0.4 pct in late-morning trade

South Korean stocks traded 0.4 percent higher late Tuesday morning, as large-cap exporters reverted to gains from earlier losses, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) rose 7.19 points to 1,806.20 as of 11:20 a.m.No. 1 steelmaker POSCO shot up 1.5 percent, with auto-parts maker Hyundai Mobis jumping more than 4 percent. But shares of financial companies moved downward. KB Financial Group, the second-largest banking firm, edged down 0.2 percent, with Samsung Fire

June 25, 2013

Seoul shares open lower on China woes

South Korean stocks got off to a weak start Tuesday on worries that the Chinese economy is rapidly slowing down, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) slipped 6.12 points, or 0.34 percent, to 1,792.89 in the first 15 minutes of trading. Large-cap exporters led the decline, with tech heavyweight Samsung Electronics falling 0.7 percent and leading automaker Hyundai Motor dropping 0.5 percent. China's main Shanghai Index plunged more than 5 percent on Monday amid gr

June 25, 2013

Regulator looks at pay packets of financial CEOs

The Financial Supervisory Service has launched a full-fledged investigation into the so-called “propriety” of the income level for chief executives in the financial industry.The investigation comes as criticism is mounting that CEOs of financial companies were paid “excessively” high amounts despite their companies’ falling profitability.Regulatory officials said that “despite an overall drop in earnings of financial firms last year, some CEOs and other board members were found to have enjoyed h

June 24, 2013

Foreigners’ stock selling continues on QE woes

Deputy Prime Minister and Finance Minister Hyun Oh-seok said Monday that the government was ready to implement countermeasures against increased capital-flow volatility stemming from the so-called Bernanke Shock.In a meeting with the ruling Saenuri Party, Hyun added that Korea’s economic fundamentals were still intact with a continued current account surplus and few short-term foreign borrowings that limited its exposure to an exit from quantitative easing.Shin Je-yoon, chairman of the Financial

June 24, 2013

Korea, Japan agree on fishing quota in exclusive waters

South Korea and Japan have agreed to maintain the amount of fish they can each catch in each other’s exclusive waters over the next 12 months despite Japan’s earlier demand to cut the amount of South Korea’s catch of the popular cutlass fish, the Seoul government said Monday.Under the agreement reached Friday, both countries will be allowed to send 860 ships each into one another’s exclusive economic zones (EEZs) and catch up to 60,000 tons of fish, according to the Ministry of Oceans and Fisher

June 24, 2013

Korea, Japan agree to end won-yen currency swap deal

The Bank of Korea said Monday that Korea and Japan have decided against extending their bilateral currency swap agreement.“Authorities of Korea and Japan have concluded to end the bilateral won-yen currency swap arrangement equivalent to $3 billion between the two central banks, which is due to expire on July 3, 2013,” said the BOK in a statement.This would end their financial cooperation in which Korea sought to further globalize its currency and use the yen, one of the G3 or top three global c

June 24, 2013

Seoul shares fall 1.31 pct on lingering Fed woes

South Korean stocks closed 1.31 percent lower Monday, as lingering angst over a gradual end of the U.S. easy-money policy continued to sap investor sentiment, analysts said. The local currency lost ground against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) sank 23.82 points to finish at 1,799.01. Trading volume was light at 216.6 million shares worth 3.11 trillion won ($2.69 billion) with decliners far outstripping gainers 613 to 203. "Foreigners again opted to offlo

June 24, 2013

Seoul shares down 0.61 pct in late-morning trade

South Korean stocks traded 0.61 percent lower late Monday morning, led by large-cap auto and tech losses, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) fell 11.19 points to 1,811.64 as of 11:20 a.m.Kia Motors, the smaller affiliate of Hyundai Motor, shed 0.7 percent, with auto-parts maker Hyundai Mobis losing nearly 2 percent. SK hynix, a leading chipmaker, also dipped more than 2 percent. But shares of Samsung Electronics, the top-listed firm, continued to trade in posi

June 24, 2013

Seoul shares open lower on lingering policy woes

South Korean stocks began lower Monday as lingering policy woes from a possible end of the U.S. monetary easing dampened investor sentiment, analyst said. The benchmark Korea Composite Stock Price Index (KOSPI) fell 8.32 points, or 0.46 percent to 1,814.51 in the first 15 minutes of trading. Domestic-driven shares lost ground, with top mobile carrier SK Telecom slumping more than 3 percent and state-run gas provider Korea Gas dipping nearly 3.5 percent. Top-cap Samsung Electronics bucked up gain

June 24, 2013

Seoul to strengthen coordination with G20 to curb risks

Korea’s financial authorities plan to strengthen coordination and communication with the Group of 20 countries in an effort to minimize market volatility from the U.S. policy to retrieve its state funds.“We are set to seek closer interchanges with major countries’ governments and central banks via chances like the G20 finance ministers’ gathering, slated for July,” Vice Finance Minister Choo Kyung-ho said in an extraordinary meeting of monetary policymakers and regulators on Sunday.Choo, however

June 23, 2013

Revised tax pact to boost hunt for Chun’s ‘hidden’ wealth

The National Tax Service’s stalled probe into the penalty default by former President Chun Doo-hwan is expected to gain momentum as the revised tax pact between Korea and Singapore is set to take effect this week.The revision calls for lifting a ban of free exchange of financial data between two tax authorities. Tax experts said the new pact may enable the NTS and the Financial Supervisory Service to track down former President Chun’s “mysteriously evaporated” properties. Chun’s wealth has been

June 23, 2013

Fed policy shakes up Korean growth forecasts

Though some state and private think tanks had painted a rosy picture for Korea’s GDP growth in the second half, recent remarks by U.S. Federal Reserve Chairman Ben Bernanke have emerged as a fresh factor for uncertainty.Deputy Prime Minister and Finance Minister Hyun Oh-seok said last Monday that economic growth is projected to reach 3 percent or more in the latter half of 2013 and 4 percent in 2014.Some private research institutes also predicted higher growth rates, compared to the estimated 2

June 23, 2013

S. Korea's financial markets remain relatively resilient against Bernanke shock

South Korea's financial markets have remained relatively resilient compared with other major emerging countries in the face of heightened volatility sparked by worries that the U.S. might scale back its economy stimulus efforts, the finance ministry said Sunday.   The financial markets here, including stocks and foreign exchange rates, were rattled on Thursday and Friday after U.S. Fed Chairman Ben Bernanke made remarks that Washington could taper its bond-buying program that has kept its intere

June 23, 2013

Seoul shares expected to trade lower on U.S. policy woe

South Korean stocks are expected to continue trade bearish next week as the United States Federal Reserve's remark to cut quantitative easing will dent investors' sentiment, analysts said Saturday.The benchmark Korea Composite Stock Price Index (KOSPI) closed down 66.41 points, or 3.52 percent, to 1,822.83 on Friday from the previous week.The KOSPI lost ground due mainly to the U.S. Federal Open Market Committee (FOMC) meeting held this week which had an adverse impact on investors' sentiment as

June 22, 2013