FSC to overhaul system of corporate restructuring

South Korea‘s financial regulator said Thursday it will step up moves to revamp the procedures for the corporate restructuring system in a bid to prevent moral hazard often incurred by company owners. Under the envisioned plan, the regulator will strengthen creditors’ rights by giving them more power to engage in the process of court receivership and debt workouts, according to the Financial Services Commission. “We will look into improving the overall process so to avert moral hazard by stakeho

Oct. 4, 2012

Foreign investors in politics-driven stocks may face probe

KRX looks into possible involvement of local cartels in election-themed stock riggingThe Korea Exchange said on Wednesday that it will look into a possible stock price rigging scheme, regarding recent mass purchases of stocks linked to key politicians by foreign investors.Foreigners made net purchases worth 37 billion won in eight trading days between Sept. 19 and 28 of so-called “politically-themed” stocks linked to presidential election frontrunners such as Ahn Cheol-soo and Park Geun-hye. Obs

Oct. 3, 2012

Rate cut might do little for growth: BOK policymaker

One policymaker at South Korea’s central bank told last month’s rate-setting meeting that a rate cut might do little to boost consumption and investment due to a prolonged global economic slowdown, the bank’s September minutes showed Tuesday.Trumping market players’ bet on a rate cut, Bank of Korea Gov. Kim Choong-soo and his six fellow policymakers left the benchmark 7-day repo rate unchanged in September. In July, the central bank made a surprise rate cut.“It would be difficult to make a turna

Oct. 3, 2012

Stock index stays flat

South Korean stocks remained nearly unchanged Tuesday as investors took to the sidelines with no clear signs of economic recovery in sight, analysts said. The local currency declined against the U.S. dollar. The benchmark Korea Composite Stock Price Index dipped 0.18 points, or 0.01 percent, to 1,996.03. Trading volume was moderate at 491.8 million shares worth 3.6 trillion won ($3.2 billion) with gainers closely outpacing decliners 412 to 399. “There were some good news from the United States o

Oct. 2, 2012

U.S. concerned about trade deficits after FTA with Korea

WASHINGTON (Yonhap News) ― A U.S. congressional committee voiced concerns Monday over growing deficits in trade with South Korea following the implementation of a free trade agreement.But the Joint Economic Committee, composed of 10 members each from the Senate and the House of Representatives, said it’s premature to conclude that the FTA was a mistake.In a report on U.S. trade with South Korea, the committee pointed out, “Since the free trade agreement was implemented in March 2012, imports fro

Oct. 2, 2012

Shares gain on Spain, China optimism

South Korean stocks advanced 0.38 percent Friday as investor sentiment got a boost from Spain’s pledge to cut spending and rising expectations for Chinese stimulus, analysts said. The local currency strengthened against the U.S. dollar. The benchmark Korea Composite Stock Price Index climbed 7.53 points to 1,996.23. Trading volume was moderate at 668.4 million shares worth 4.85 trillion won ($4.36 billion) with gainers outpacing decliners 492 to 302. “Spain’s budget plan implies it is moving tow

Sept. 28, 2012

Korea to adopt stricter capital rules for banks

South Korea’s financial regulator said Thursday it will introduce stricter capital rules next year for local banks in line with international efforts to buffer against any financial crisis. But the new regulations will be applied starting in 2015 as local banks are required to prepare for the strengthened rules, the Financial Services Commission said.Under the new regulations, also known as the Basel III, banks are required to secure an adequate level of capital ratios set by the Basel Committee

Sept. 27, 2012

Daewoo E&C wins $92m deal in Singapore

Daewoo Engineering & Construction Co. said Wednesday it has won a $92 million contract to build a condominium in Singapore.The deal calls for South Korea’s third-largest builder to construct the condominium that can be used for both residences and offices in downtown in the city state.Construction of the building will be completed 33 months after work begins next month, Daewoo E&C said.The latest order came a day after Daewoo E&C announced a US$180 million contract to build an exhibition center

Sept. 26, 2012

Mando’s Chinese holding firm eyes Hong Kong listing

HONG KONG (Yonhap News) ― South Korean auto parts manufacturer Mando Corp. plans to list its Chinese holding firm on the Hong Kong stock market, as part of its efforts to boost its presence in China, company officials said Wednesday.The date for an initial public offering of Mando China Holdings Ltd. has yet to be decided, the Mando officials said. Mando, an affiliate of South Korea’s Halla Group, is the second-largest auto parts maker in South Korea, following Hyundai Mobis Co., an affiliate of

Sept. 26, 2012

Foreign ownership of Korean land rises in Q2

The amount of land here owned by foreigners rose in the second quarter, largely on purchases of forestry and arable lands, the government said Wednesday.The amount of South Korean land owned by foreign entities, including foreign-invested companies, came to 224.71 square kilometers as of the end of June, up 0.9 percent from the previous quarter, according to the Ministry of Land, Transport and Maritime Affairs.The amount represents only 0.2 percent of the country’s total area.The number of real

Sept. 26, 2012

Shares dip on Spain woes

South Korean stocks fell 0.55 percent Wednesday as concern over the future of Spanish bailout negotiations sapped investor confidence, analysts said. The local currency lost ground against the U.S. dollar. The benchmark Korea Composite Stock Price Index retreated 10.97 points to close at 1,980.44. Trading volume was heavy at 1.19 billion shares worth 4.76 trillion won ($4.25 billion) with decliners outstripping gainers 547 to 277. The trading volume was the largest since Sept. 14, as a swarm of

Sept. 26, 2012

Public sector should improve transparency, debt control: minister

South Korea's public sector should double up its efforts to improve its business health by increasing management transparency and keeping debt under control, the finance minister said Wednesday."We hope that the public sector institutions will raise the trust of people by enhancing their transparency and push for systematic management, including debt analysis," Bahk Jae-wan told a crisis managemen

Sept. 26, 2012

Shares fall on foreign selloff

South Korean stocks closed 0.6 percent lower Tuesday as foreigners snapped a 12-day buying streak to opt for profit-taking, analysts said. The local currency rose against the U.S. dollar. The benchmark Korea Composite Stock Price Index slid 12.03 points to finish at 1,991.41. Trading volume was moderate at 523.9 million shares worth 4.55 trillion won ($4.06 billion) with decliners outpacing advancers 570 to 257. “Foreigners chose to take profits, but the amount is not big, meaning that they are

Sept. 25, 2012

2013 budget allocates more for welfare, small businesses

Government promises over 100,000 jobs for youth, greater budget to fight sex crimes and school violenceThe government’s 2013 budget plan appears to focus on support for more welfare programs to stabilize the livelihood of ordinary people, while maintaining a budget balance. The budget plan includes expanded support for small and mid-sized companies from 69.5 trillion won this year to 78 trillion won, and an additional 10 billion won for companies that open branches overseas. The government plans

Sept. 25, 2012