The Korea Herald

[Herald Interview] ‘Investors will turn to logistics property for higher profits in 2017’

The office market in Seoul saw a boom this year with foreign investment behemoths buying up two landmark office buildings in Seoul -- the International Financial Center in Yeouido and Capital Tower in Gangnam. But in 2017, expected interest rate hikes and more fierce competition will drive foreign investors to look for riskier, but possibly more profitable, real estate assets such as logistics centers rather than offices, the head of Savills Korea said.Jeon Kyoung-don, president and CEO of the K

Dec. 25, 2016

[Herald Interview] ‘Investors will turn to logistics property for higher profits in 2017’

S. Korea keeps close eye on won's weakness against US dollar

The South Korean government is keeping a close eye on the won's weakness against the US dollar amid fears of capital flight in the face of a gradual rise in US interest rates. The won closed at 1,203 won against the US dollar Friday, down 3.9 won from a day earlier. It marked the Korean currency's weakest closing since March 10 this year. The won's value against the US dollar declined by 3.1 percent since Dec. 14, a day before the US Federal Reserve raised interest rates and hinted at a faster p

Dec. 25, 2016

S. Korea keeps close eye on won's weakness against US dollar

Seoul shares to remain range-bound next week

South Korean stocks will likely remain in a tight range next week as investors are forecast to take the sidelines ahead of events such as the announcement of next year's economy policy plan, analysts said Saturday.The benchmark Korea Composite Stock Price Index lost 0.31 percent this week to end at 2,035.90 points on Friday."The KOSPI is expected to stay between 2,020 and 2,060 points next week," said Kim Yong-koo, a Hana Financial Investment analyst. Next Friday marks this year's last session o

Dec. 24, 2016

FSC recommends new IBK CEO

The Financial Services Commission said Friday it has recommended Kim Do-jin, vice president of management strategy division at the Industrial Bank of Korea as the new CEO for the state-run bank supportive of small and mid-sized enterprises.However, when Kim will take over the leadership is unclear because the FSC’s recommendation needs an approval from Cheong Wa Dae. Kim Do-jin, vice president of management strategy division at the Industrial Bank of Korea (IBK)Prime Minister Hwang Kyo-ahn has

Dec. 23, 2016

Kookmin Bank carries out voluntary retirement program

South Korea’s major commercial lender Kookmin Bank said Friday a total of 2,800 employees applied for the company’s voluntary retirement program. Those who worked for the bank for more than 10 years were eligible for the program and the company received applications from Monday to Thursday.The number is the largest since 2010 when 3,244 employees left the bank under a similar voluntary retirement program. If applications are all received, the total workforce at Kookmin Bank will be reduced to ab

Dec. 23, 2016

Kookmin Bank carries out voluntary retirement program

Debt in public sector exceeds W1,000tr in 2015

South Korea’s debt in the public sector, including borrowing by the government and state-run enterprises, exceeded 1,000 trillion won ($832 billion) as of the end of 2015, a government report showed Friday.However, its rate to gross domestic product slightly fell by 0.1 percentage point to 64.4 percent in 2015 from a year earlier, the report by the Ministry of Strategy and Finance.According to the government tally, the public sector debt, called D3 and which takes into account both general gover

Dec. 23, 2016

Debt in public sector exceeds W1,000tr in 2015

Kookmin Bank to carry out voluntary retirement program

Kookmin Bank, one of South Korea's biggest retail banks, said Friday it plans to cut about 13 percent of its workforce in a voluntary retirement program next month as part of its efforts to improve productivity.The bank has offered to pay the equivalent of up to three years' salary to those who are eligible for the retirement program.So far, about 2,800 employees -- who have worked for the company for more than 10 years -- applied for the program.The retirement program is set to take effect Jan.

Dec. 23, 2016

Financial watchdog to closely monitor accounting of derivative products

South Korea's financial watchdog said Friday it will pay special heed to malpractices by companies here in their accounting of derivative products and others.It's one of four "key issues" to be closely monitored by the Financial Supervisory Service (FSS) in the accounting and audit sector next year. The FSS plans to place an emphasis on the four fields, instead of conducting a "full-scope" inspection of corporate financial statements.The other ones include the evaluation of unlisted shares and o

Dec. 23, 2016

Main bourse volatility lowest in world in 2016

The volatility of South Korea's main stock index has ranked the lowest among major economies this year, data showed Friday, as the market remains range-bound due to a cavalcade of negatives at home and abroad.The volatility of the benchmark KOSPI's monthly rate of return came to 1.87 this year, the lowest level among the stock indexes of 17 major countries, according to the data by the Korea Exchange and Shinhan Investment Corp.South Korea lagged far behind other emerging markets, with the numbe

Dec. 23, 2016

S. Korea to sell 7.3 tln won worth of state bonds in Jan.

South Korea plans to sell 7.3 trillion won ($6.1 billion) worth of state bonds next month, the finance ministry said Thursday. The government will issue 1.75 trillion won worth of bonds with a maturity of three years and 1.65 trillion won worth of five-year bonds.It also plans to sell 1.95 trillion won worth 10-year Treasurys and a combined 1.95 trillion won of bonds with a maturity of between 20 and 30 years.The ministry added that it sold 4.64 trillion won worth of Treasurys in December.Earlie

Dec. 22, 2016

S. Korea's fintech firms seek to tap into China

South Korea made a pitch Thursday for its financial technology, or fintech, in China under the government's campaign to support related startups here seeking to do business abroad.The state-funded Fintech Center held the "Fintech Demo Day in Beijing" event, joined by five South Korean firms and potential business partners in China, said the Financial Services Commission.The companies showcased robo-adviser, mobile wallet, biometric identification and other advanced services, followed by one-on-o

Dec. 22, 2016

S. Korea has room for additional monetary easing policy: BOK chief

South Korea has room for additional monetary easing policy next year, despite the latest US rate hike, according to the head of the central bank.Bank of Korea Governor Lee Ju-yeol has said that the US rate increase does not necessarily mean the central bank will immediately raise its interest rates, and on Wednesday, he reiterated the policy bank's earlier position."I don't think that our room for monetary policy has been exhausted," Lee said in a meeting with reporters Wednesday.In the July-Sep

Dec. 22, 2016

S. Korea's stock trade volume dips amid recent tumult

The trade volume of South Korean shares has markedly dropped on-year in 2016 amid a barrage of setbacks including political turmoil at home and uncertainty over the US interest rate hike, data showed Thursday.A total of 90.4 billion stocks were traded in the main KOSPI market as of Tuesday, according to the Korea Exchange and the Korea Financial Investment Association.It marks a 20-percent decline from a year earlier. Trade value also decreased 18 percent to 1,091 trillion won ($912 billion).The

Dec. 22, 2016

About 20 firms to go public on Kospi in 2017

About 20 businesses are planning to go public on South Korea’s main stock trading board Kospi next year, for the combined value of about 7 trillion won ($5.86 billion), the index operator said Wednesday. Netmarble Games, Korea South-East Power, Korea East-West Power and ING Life Insurance are among the expected Kospi entrants which will lead the initial public offering market next year, according to a survey by the Korea Exchange. The total value of IPOs will reach 7 trillion won in 2017, outstr

Dec. 21, 2016

KDB, Mirae Asset to raise W500b fund for shippers

Korea Development Bank said Wednesday it has signed a contract with private financial institutions to establish a fund worth 500 billion won ($418.8 million) for Korean shipping companies. From left: Nam Ki-cheon, CEO of Multi Asset Global Investments, Lim Hae-jin, vice president of KDB, and Cho Ung-kee, CEO of Mirae Asset Securities, hold hands after signing the KDB-Mirae Asset Ocean Value Up Program at the Mirae Asset Group headquarters in central Seoul on Wednesday. (KDB)The country’s larges

Dec. 21, 2016

KDB, Mirae Asset to raise W500b fund for shippers

Seoul shares up in late morning trading on Samsung's rally

South Korean shares traded higher late Wednesday morning, led by gains in top market cap Samsung Electronics and other market heavyweights, set to extend their winning streak to two second consecutive days.The benchmark Korea Composite Stock Price Index (KOSPI) added 4.29 points, or 0.21 percent, to 2,046.23 as of 11:20 a.m.Market bellwether Samsung Electronics rose 0.29 percent. A day earlier, the tech giant gained 0.95 percent to 1,812,000, closing at a new record high. Samsung C&T, Samsung's

Dec. 21, 2016

Utility bill payment linked to personal credit rating

More than 5,500 South Koreans have their credit ratings lifted this year by paying utility bills and communication service fees on time, government data showed Wednesday.Starting in 2016, the financial authorities introduced a system to tie personal credit ratings with such nonfinancial transaction information as the payment of phone and Internet service fees, as well as utility and state health care bills.A total of 65,396 people offered related payment records to credit bureaus as of end-Novem

Dec. 21, 2016

[Photo News] KNOWLEDGE SHARING

KNOWLEDGE SHARING -- Hwang Rok (right), chairman & CEO of Korea Credit Guarantee Fund, poses with Mohammed Al-Ja’fari, director general of the Jordan Loan Guarantee Corp., after signing a memorandum of understanding in Daegu, Tuesday, to share the Korean company’s knowledge in operating a credit guarantee system with its Jordanian counterpart. (KODIT)

Dec. 20, 2016

Household debt grows faster than income

South Korea’s household debt grew faster than disposable income in 2015, a government report showed Tuesday, amid concerns over record-high household debt.As of March this year, an average Korean household had 361 million won ($303,000) in total assets, 66.5 million won in debt and annual disposable income of 40 million won. All three rose at a moderate pace, but debt grew the fastest, with 6.4 percent yearly gain, and income lowest with 2.4 percent growth. The key findings came in a report join

Dec. 20, 2016

Korea releases cheaper, smaller-coverage health insurance scheme

South Korea’s financial and medical authorities announced Tuesday guidelines for more affordable but smaller-coverage fee-for-service health insurance in order to curb moral hazards called “medical shopping” sought by some consumers and doctors. The Financial Services Commission unveiled the plans, which include the launch of insurance schemes with premiums that are about 25 percent lower than existing ones from April next year, in a joint announcement with the Ministry of Health and Welfare and

Dec. 20, 2016