Hana, KEB shareholders agree on share swap move

Shareholders of Hana Financial Group Inc. and its affiliate Korea Exchange Bank approved Friday the group's move to take full control of KEB through swapping shares, bank officials said. At an annual meeting, shareholders of Hana Financial voted for the share swap plan with 98.34 percent approval, the group said. It will raise its stake in KEB to 100 percent from the current 60 percent by swapping each of its shares for 5.28 KEB shares. KEB shareholders, in contrast, passed the plan after three

March 15, 2013

Most lottery ticket buyers above breadline

The majority of households that frequently purchase lottery tickets do not belong to the low-income bracket, the Finance Ministry said Thursday.Citing a survey, the ministry claimed that 72.6 percent of steady lottery buyers were from households whose average monthly income surpassed 3 million won ($2,750).It also said the households with an average monthly income of more than 4 million won took up 35.3 percent of the total buyers.“The poll result counters the social bias that mostly destitute p

March 14, 2013

Shares close flat on key rate freeze

South Korean stocks closed almost flat on Thursday following the central bank’s decision to freeze the key interest rates, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index rose 2.40 points, or 0.12 percent, to 2,002.13. Trading volume was low at 320.7 million shares worth 4.01 trillion won ($3.64 billion), with gainers outnumbering decliners 489 to 324.“Local shares traded flat as investor sentiment was dented by the central bank’s de

March 14, 2013

Yongsan project unlikely to hurt financial firms

The brokerage industry has downplayed some market observers’ prediction that some major financial firms will be severely damaged from the possible collapse of the 31 trillion won ($28.4 billion) urban development project in Yongsan, Seoul.As the nation’s largest-ever project faced bankruptcy involving worries over capital erosion and liquidation of the state-controlled rail operator KORAIL, some critics commented on the feasibility that the financial services industry will go through heavy losse

March 14, 2013

Seoul shares close flat on key rate freeze

South Korean stocks closed almost flat on Thursday following the central bank's decision to freeze the key interest rates, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) rose 2.40 points, or 0.12 percent, to 2,002.13. Trading volume was low at 320.7 million shares worth 4.01 trillion won (US$3.64 billion), with gainers outnumbering decliners 489 to 324."Local shares traded flat as investor sentiment was dented by the central

March 14, 2013

Seoul shares down 0.82 pct in late-morning trade

South Korean stocks traded 0.82 percent lower late Thursday morning as foreigners and institutions scaled back their holdings, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) dropped16.45 points to 1,983.28 as of 11:20 a.m.Large caps were mixed. Market bellwether Samsung Electronics lost 1.31 percent, but chip giant SK hynix added 1.59 percent.The local currency ended at 1,101.65 won against the greenback as of 11:20 a.m., down 4.25 won from the previous close. (Yonhap News

March 14, 2013

Finance Ministry leans toward increase of cigarette prices

The Ministry of Strategy and Finance has been saddled with two contradictory tasks: boosting sagging private consumption and raising tobacco prices.Last year, financial policymakers were skeptical about a cigarette price hike pushed by the Health and Welfare Ministry. They cited possible negative effects on consumer prices and household consumption.Further, the Finance Ministry denied the rumors in January that policymakers are poised to raise cigarette prices or create a new tax on the products

March 13, 2013

Minister nominee stresses need for stimulus

President Park Geun-hye’s nominee for the Finance Ministry chief said Wednesday that the government needs to review diverse measures including fiscal and financial steps to stimulate the economy which remains in a “serious” condition.During a parliamentary confirmation hearing held in Seoul, Hyun Oh-seok also opposed raising tax rates in order to secure the necessary money for an expected increase in welfare spending during the five-year term of President Park.“I agree that the economy is facing

March 13, 2013

Shares up on tech gains

South Korean stocks ended 0.32 percent higher on Wednesday, buoyed by firm gains in major technology companies, analysts said. The local currency fell against the U.S. dollar. The benchmark Korea Composite Stock Price Index rose 6.39 points to 1,999.73. Trading volume was moderate at 347.4 million shares worth 3.42 trillion won ($2.12 billion), with gainers outnumbering decliners 444 to 350.“There’s optimism out there on global liquidity and economic data have also been supporting this,” said Wo

March 13, 2013

Lotte Mart to launch car rental service

Lotte Mart Co., South Korea’s third-largest discount store chain, said Wednesday that it will start a car rental service this week in strategic partnership with CXC Motors, a local dealer of foreign cars.Lotte Mart will provide its car rental service at five stores including its Jamsil location in the southwestern part of Seoul and its online Lotte Mart Mall starting Thursday, the company said in a statement. The discount store chain will expand the number of stores that will provide the car ren

March 13, 2013

NTS opens tax probe into GM Korea

South Korea’s tax agency has launched an investigation into GM Korea Co., the local unit of U.S. General Motors Co., a company official said Wednesday.The GM Korea official claimed the probe by the National Tax Service is a regular one following a similar investigation in 2008.“We will cooperate with the tax probe in good faith,” the official, noting that there were no unfair business practices and the tax agency imposed no additional taxes on GM Korea after the 2008 investigation.The tax agency

March 13, 2013

LS C&S to enter S. American undersea cable market

LS Cable & System said Wednesday that it won a 200 billion won ($182 million) contract to supply 230kV extra- high-voltage undersea cables to Venezuela’s state-run power firm, Corpoelec, becoming the first Korean firm to enter the submarine cable market in South America.The company said the successful bid proved its capabilities as a general engineering company for submarine power cable systems. With the rising demand for electric power in South America boosting electric cable sales, LS C&S is e

March 13, 2013

Tariff revenue on U.S. imports falls: ministry

A free trade agreement with the U.S. has pushed down Korea’s tariff revenue on U.S. imports for the first time in seven years, despite an increase in trade with the world’s largest economy.The Ministry of Strategy and Finance said Tuesday that tariff revenue on U.S. imports sank to 9.8 trillion won ($8.9 billion) last year, down 10.7 percent from 10.9 trillion won a year ago.This is the first time Korea saw its customs revenue decline since 2005, the ministry noted, adding that its revenue fell

March 12, 2013

Effect of rate cut would be marginal: IBs

More and more market participants are betting that the Bank of Korea will lower the benchmark interest rate in March ― the first monthly rate-setting under the Park Geun-hye administration.According to a poll of 132 bond traders conducted by the Korea Financial Investment Association, 46 percent of respondents predicted a rate cut at the meeting of the BOK’s monetary policy committee, slated for Thursday.Some economists and analysts, however, claimed that a rate cut from the current 2.75 percent

March 12, 2013

Insurance firms scrap plans to raise fees

Local major insurance firms have decided to freeze premiums under regulatory instruction from the Financial Supervisory Service.Industry sources said Tuesday that life insurance firms, including Samsung Life, Kyobo Life and Hanwha Life, have dropped their stance to raise premiums on products sold to policyholders. These firms had abortively planned to raise the rates on insurance products in April, when the standard rate of interest is expected drop about 5 percent. Major nonlife insurance firms

March 12, 2013

Shares down on foreign selling

Korean stocks ended 0.5 percent lower on Tuesday as foreigners extended their selling mode amid a weakening Japanese yen and North Korea’s multiple nuclear threats, analysts said. The local currency slipped against the U.S. dollar.The benchmark Korea Composite Stock Price Index fell 10.01 points to 1,993.34. Trading volume was moderate at 385.8 million shares worth 3.29 trillion won ($3 billion), with gainers outnumbering decliners 433 to 364.“Bad market sentiment, along with high volatility, is

March 12, 2013

Seoul shares down 0.15 pct in late-morning trade

South Korean stocks traded 0.15 percent lower late Tuesday morning as foreigners extended their selling mode, analysts said.Reversing earlier gains, the benchmark Korea Composite Stock Price Index (KOSPI) slipped 2.99 points to 2,000.36. Large caps were mixed. Market bellwether Samsung Electronics fell 0.4 percent and steel giant POSCO lost 0.88 percent, but Hyundai Motor rose 0.96 percent. Hyundai Elevator surged 14.81 percent on talks over a potential management feud.The local currency was cha

March 12, 2013

Seoul shares open higher on autos

South Korean stocks got off to a strong start on Tuesday fueled by gains in automakers, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) added2.09 points, or 0.1 percent, to 2,005.44 in the first 15 minutes of trading.Hyundai Motor, the country's top automaker, gained 0.96 percent, and its smaller affiliate Kia Motors rose 1.15 percent.In contrast, market bellwether Samsung Electronics slipped 0.27 percent.The local currency was trading at 1,095.7 won to the U.S.dollar as o

March 12, 2013

Banks’ foreign-currency deposits gain in Feb.

Foreign currency deposits at South Korean banks rose in February from the previous month as the country’s trade surplus remained in the black and corporate sales of overseas bonds gained, the central bank said Monday. Outstanding foreign currency-denominated deposits held by local residents reached $34.65 billion as of the end of February, up $2.14 billion from a month earlier, according to the Bank of Korea. Residents include individual citizens and firms but does not cover foreign nationals wi

March 11, 2013