Korean banks cut nearly 3,000 jobs in 2016

South Korean banks cut almost 3,000 jobs last year, many through lay-offs, data showed Monday, with the job-reduction trend expected to continue this year amid an economic slowdown and growing risk management pressure from U.S. rate hikes and massive household debt at home.The number of employees at banks here totaled 115,516 at the end of September, down 1,507 from nine months earlier, according to the Financial Supervisory Service's financial data information system.That of KB Kookmin Bank fel

Jan. 2, 2017

Korea's hedge fund market swells to nearly 7 trillion won

The size of South Korea's hedge fund market grew to nearly 7 trillion won ($5.81 billion) this year as deep-pocketed investors rushed into the market amid the stagnant stock market performance and low interest rates, data showed Saturday.The total assets under management by local hedge fund operators stood at 6.69 trillion won as of Dec. 23, a rapid increase from 2011 when hedge funds were first introduced here, according to data provided by local financial investment firms.In 2012, the market r

Dec. 31, 2016

S. Korea's 3rd bourse grows sharply in 2016

South Korea's stock market for venture firms and startups marked sharp growth this year on the back of the government's push to foster small entities, the bourse operator said Friday.The daily turnover on the Korea New Exchange market in 2016 came to 2.47 billion ($2.06 million) this year, rising from 1.82 billion won the previous year, according to data by the Korea Exchange.In terms of market cap, the bourse had 4.3 trillion won as of Dec. 29, soaring from 3.9 trillion won posted at end-2015,

Dec. 30, 2016

Loans by moneylenders increase 9% in six months

Outstanding loans extended by South Korea's private moneylenders increased nearly 9 percent in the first half of this year from six months earlier despite a decrease in the number of customers, government data showed Thursday.The outstanding loans by private loan service providers came to 14.4 trillion won ($12 billion) as of end-June, up 8.9 percent, or 1.2 trillion won, from the end of 2015, the authorities said.But the number of customers fell 1.8 percent to 2.63 million, apparently affected

Dec. 29, 2016

Gov't to nurture mega-sized IBs with incentives

South Korea said Thursday it will revise regulations on the capital market in a bid to foster mega-sized investment banks here modeled after Goldman Sachs.The Financial Services Commission notified the public of the revision plan in which local brokerages with a huge capital base will be allowed to broaden their businesses beyond brokerage services.IBs with 4 trillion won ($3.3 billion) or more in equity capital will be eligible for short-term corporate lending, such as the issuance of commercia

Dec. 29, 2016

Banks aim to cut household credit growth to 6% next year

The head of South Korea's state financial watchdog said Thursday local banks aim to cut the household credit growth rate to around 6 percent next year."The year 2017 is a very important time for our economy (in efforts) toward the soft landing of household debt (problem)," Zhin Woong-seob, governor of the Financial Supervisory Service, told reporters. "The authorities are making special efforts for an improvement in the quality of household debt and a gradual adjustment to its size." Zhin Woong-

Dec. 29, 2016

Mobile stock trade jumps amid incentives

Mobile stock trading in South Korea has soared more than 30 percent in 2016 from a year ago, helped mainly by brokerages' stepped-up marketing for smartphone users, data showed Thursday.According to the data by the Korea Exchange, a daily average of 250.5 million shares were traded via the mobile trading system in the nation's secondary KOSDAQ market as of Wednesday, up 37.6 percent from the previous year. This undated file photo shows an investor monitoring share prices on a smartphone. (Yonhap

Dec. 29, 2016

‘Court receivership was right decision for Hanjin’: FSC chief

The government strictly maintains that principles regarding industrial restructuring and its decision on Hanjin Shipping’s court receivership were reasonable, according to South Korea’s top financial regulator on Tuesday. At a year-end luncheon with press, Yim Jong-yong, the chairman of the Financial Services Commission, reiterated that his commission complied with the restructuring principles and asked for patience to see how the country’s shipping industry will transform in the near future. “S

Dec. 28, 2016

[Photo News] KRX awards scholarship to local students

KRX SCHOLARSHIP -- Jeong Chan-woo (eighth from left, back row), CEO of Korea Exchange, and Lee Young (seventh from left, back row), vice education minister, pose with 30 students after awarding them scholarship certificates at the KRX Seoul office in Yeouido, western Seoul on Dec. 21. KRX Happy Foundation and the Education Ministry have supported about 11,500 students of around 80 specialized vocational high schools across the nation in finance and careers. (KRX)

Dec. 28, 2016

New IBK CEO pledges to ramp up bank profits

Kim Do-jin, the new CEO of the state-run Industrial Bank of Korea, pledged to ramp up profits to better support small and medium-sized enterprises Wednesday. At an inaugural ceremony held at the bank’s headquarters in central Seoul, Kim emphasized IBK’s role as a public financier for SMEs amid harsh economic conditions. “SMEs are the foundation of the country’s economy and the reason why IBK exists,” Kim said. “SME finance should be enhanced further, supporting young entrepreneurs with brilliant

Dec. 28, 2016

State pension fund to log high return on stock investment

South Korea's state pension fund is expected to post a return of over 7 percent from stock investment this year thanks largely to a jump in top-cap Samsung Electronics Co., a market tracker said Wednesday.The value of 281 stocks, of which the National Pension Service owns 5 percent or more, was estimated at 91.3 trillion won ($75.5 billion) as of Monday, up 7.5 percent from 84.6 trillion won at the end of last year, according to FnGuide.Last year, the NPS registered a stock valuation gain of 1.3

Dec. 28, 2016

Korea's financial market stable yet burden grows: BOK

South Korea's financial market has maintained stability in general this year, but it's coming under growing pressure from massive household debt and troubles in the corporate sector, the nation's central bank said Tuesday.The Bank of Korea raised the possibility going forward that "financial system stability could decline," citing the household debt problem.  A scene of household loan services at a South Korean bank in this file photo. (Yonhap)Household credit here jumped 11.2 percent on-year to

Dec. 27, 2016

[Graphic News] Mobile payment on the rise

The use of mobile payment is on the rise with 25.2 percent of South Koreans having used the service within the past six months, the Bank of Korea said.The survey on 2,500 adults conducted between June and July showed that the number of mobile payment users surged by 9.4 percentage points from the same period last year.Mobile payment refers to paying for merchandise at stores or online using one’s mobile phone or other mobile devices.By age, 41.8 percent of those in their 30s said they used mobil

Dec. 26, 2016

With eased listing rules, Kosdaq aims to attract 10 new foreign firms in 2017

South Korea’s tech-laden stock trading board will curtail regulatory barriers for overseas businesses next year, with the goal of listing at least 10 foreign firms deemed to have growth potential.  (Yonhap)By opening its door to fledgling foreign firms that are still unprofitable but have promising technologies, staring January, the Kosdaq market will try to attract a variety of overseas businesses, with the aim of becoming a global capital market for tech firms. “We are seeking a handful of mea

Dec. 25, 2016