Financial markets continue to fall

The Korean financial markets continued to take a beating from the “Bernanke shock” that foretold the near conclusion of U.S. monetary stimulus, spurring worldwide asset selloffs.Eroded confidence caused the benchmark stock index to approach the 1,800 threshold as soon as the market opened, while interest rates on three-year state bonds surpassed 3 percent. The won also further weakened against the U.S. dollar.The KOSPI fell about 1.5 percent finishing at 1,822.83 on Friday, following an overnigh

June 21, 2013

Top financial regulator to have more control

The top financial regulator is expected to wield more power over taking punitive actions against any unlawful activities by local financial companies, as part of an effort to reorganize the financial regulatory system, its officials said Friday.The Financial Services Commission, the country’s policymaking watchdog, will likely be given the authority to impose restrictions or sanctions on financial players for illegal acts, according to its officials.The authority to take punitive measures has so

June 21, 2013

Seoul shares plunge 1.49 pct on U.S. policy woes

South Korean stocks declined 1.49 percent Friday as the U.S. Federal Reserve chief's remark on its stimulus actions continued to weigh on investors' sentiment, analysts said. The local currency continued its slide against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) shed 27.66 points to close at 1,822.83. Trading volume was low at 281.8 million shares worth 4.89 trillion won (US$4.24 billion) with losers far outpacing gainers 640 to 199. It marked the lowest level sinc

June 21, 2013

Fed shock batters Seoul's stock, forex markets for 2nd straight day

South Korean stocks opened lower Friday as the United States Federal Reserve's remark on a possible cut in monetary easing continued to weigh down on investors' sentiment, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) nosedived 36.16 points, or 1.95 percent, to 1,814.33 in the first 15 minutes of trading.Blue-chip shares lost ground across the board, with tech giant Samsung Electronics falling 2.26 percent and chipmaker SK hynix moving down 1.93 percent. Top steelmaker PO

June 21, 2013

Ex-Hanjin Shipping executive on tax haven blacklist

A former executive of Hanjin Shipping Co. has been accused of having set up paper companies in overseas tax havens.The Korea Center for Investigative Journalism, locally known as Newstapa, on Thursday released the eighth batch of names of Koreans engaged in founding and operating ghost companies.According to the press organization, former managing director Kim Young-so became one of two owners of a ghost company called Rhodes International Ltd. on Sept. 6, 2001, in the Independent State of Samoa

June 20, 2013

Seoul shares tumble 2 pct on Fed shock

South Korean stocks dropped 2 percent Thursday as investors' sentiment was dented by the U.S. Federal Reserve chief's remark on a possible reduction of its stimulus moves, analysts said. The local currency plunged againstthe U.S. dollar.   The benchmark Korea Composite Stock Price Index (KOSPI) shed 37.82 points to close at 1,850.49. Trading volume was moderate at 350.6 million shares worth 4.3 trillion won (US$3.76 billion) with losers far outpacing gainers 692 to 130. It marked the lowest leve

June 20, 2013

Korean won hits 11-month low vs dollar on Bernanke's remarks

The South Korean currency fell to the lowest level in almost 11 months against the U.S. dollar Thursday as the Federal Reserve's head said it would begin to taper its stimulus bond purchases later this year, dealers said.The local currency closed at 1,145.70 won to the greenback, down 14.9 won or 1.3 percent from Wednesday's close. It marked the lowest level since July 27, 2012 and the local currency hit an intra-day low of 1,146.60 won at one point during the afternoon trading."Emerging countri

June 20, 2013

S. Korea's rating won't be affected by QE tapering: Moody's

South Korea's credit rating won't be affected by the impact from the unwinding of the U.S. monetary easing, as Washington's indication of an exit strategy means the world's No. 1 economy is improving, which will serve as a positive factor for Korea, a global credit appraiser said Thursday. "Withdrawing the quantitative easing (QE) can mean the United States is shifting to growth, which can lead to more fresh orders for some ailing industries like shipbuilding and shipping in Korea.It won't likel

June 20, 2013

Seoul shares open lower on Bernanke's remarks

South Korean stocks got off to a weak start Thursday as the U.S Federal Reserve Chairman Ben Bernanke hinted at a possible tapering of its monetary easing, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) nosedived 24.68 points, or 1.31 percent to 1,863.63 in the first 15 minutes of trading. Shares lost ground across the board, with tech giant Samsung Electronics falling 1.97 percent and No. 1 carmaker Hyundai Motor declining 0.24 percent. Top steelmaker POSCO moved down 1.4

June 20, 2013

Public sector debt skyrockets

The country’s state sector saw its outstanding debt snowball to 915.6 trillion won ($808.8 billion) in first quarter of this year.That figure was about 91 percent higher than the 480.4 trillion won recorded in the first quarter of 2008 when former President Lee Myung-bak took office, according to data by the Bank of Korea on Wednesday.The general government sector consisting of the central government, regional governments and the national and social pension services saw its debt increase by almo

June 19, 2013

Low profitability prompts banks to downsize

Commercial banks are scaling back their operating networks and hiring amid a retreat in earnings.First-tier lenders’ lower profitability is mainly attributable to soured loans from growing corporate insolvency and the reduced margin between their deposits and loans, according to research analysts.As an emergency remedy, major banks have slashed the number of branches through mergers or closures. Manpower restructuring due to branch integration is also expected in the industry.Shinhan Bank saw it

June 19, 2013

Seoul shares shed 0.65 pct on Fed woes

South Korean stocks closed 0.65 percent lower Wednesday, as investors took to the sidelines on anxiety that the U.S. Federal Reserve may do little to reassure them about maintaining the monetary easing, analysts said. Thelocal currency inched up against the U.S. dollar.   The benchmark Korea Composite Stock Price Index (KOSPI) retreated 12.31 points to finish at 1,888.31. Trading volume was light at 276.2 million shares worth 3.26 trillion won (US$2.87 billion) with decliners outnumbering gainer

June 19, 2013

Public sector’s debt skyrocketed for past 5 years

The country’s general government sector and state-run nonfinancial enterprises led by the former administration of Lee Myung-bak saw their outstanding debt snowball to 915.6 trillion won ($808.8 billion) in first quarter of this year.It increased about 91 percent, or 435.2 trillion won, from 480.4 trillion won in the first quarter of 2008 when former President Lee took office, according to data by the Bank of Korea on Wednesday.The general government sector consisting of the central government,

June 19, 2013

Seoul shares down 0.83 pct in late-morning trade

South Korean stocks traded 0.83 percent lower late Wednesday morning, led by losses in builders and shipbuilders, analysts said.   The benchmark Korea Composite Stock Price index (KOSPI) fell 15.23 points to 1,885.39 as of 11:20 a.m.    Top builder Hyundai Engineering & Construction dropped nearly 3 percent and heavy equipment maker Doosan Heavy Industries slid 1.4 percent.   Top-cap Samsung Electronics kept its losing binge, sinking 1.3 percent.   The local currency was changing hands at 1,133.

June 19, 2013

Seoul shares open lower on Japanese trade data

South Korean stocks got off to a weak start Wednesday, dampened by the improved Japanese trade balance, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) lost 7.96 points, or 0.42 percent to 1,892.66 in the first 15 minutes of trading. Top-listed exporters dropped, with market bellwether Samsung Electronics falling 0.6 percent and steelmaker POSCO sliding 0.8 percent. Tokyo posted a trade deficit of 993.9 billion yen ($10.4 illion) in May, narrower than the market consensus

June 19, 2013

Chief economic policymaker cautions against regulations

Deputy Prime Minister and Finance Minister Hyun Oh-seok said Tuesday that excessive regulatory enforcement against the private sector would hamper business growth and thus the economy.In a meeting with the chiefs of the Fair Trade Commission, the National Tax Service and the Korea Customs Service on Tuesday, Hyun cautioned that too much regulation could send a wrong message to the market as if the administration is out to get every company.FTC chairman Noh Dae-lae, NTS chief Kim Duk-joong and KC

June 18, 2013