FTAs drive up wine imports from U.S., Europe

Korea’s imports of wines from the United States and Europe surged on free trade deals with the two major economies despite an economic slump here, industry data showed Monday.According to the data by the Korea Wines & Spirits Importers Association, imports of American wines during the January-July period rose 19.4 percent from a year earlier to $8.63 million.Wine imports from Spain and Germany jumped 19.7 percent and 19.9 percent, respectively, on-year over the same period, while the amount of i

Sept. 10, 2012

Korea’s producer prices rebound in Aug.

Korea’s producer prices rebounded in August from the previous month as oil costs and agricultural product prices increased, the central bank said Monday.The producer price index, a barometer of future consumer inflation, rose 0.3 percent last month from a year earlier, compared with a 0.1 percent on-year fall in July, according to the Bank of Korea. July marked the first month in nearly three years that producer prices dropped on-year.Compared with the previous month, the index climbed 0.7 perce

Sept. 10, 2012

Shares slip 0.25% ahead of U.S. stimulus package

Korean stocks edged down 0.25 percent Monday as investors sat on the sidelines before the envisioned U.S. central bank’s stimulus packages, analysts said.The local currency climbed against the U.S. dollar.The benchmark Korea Composite Stock Price Index lost 4.88 points to 1,924.7, ending a two-session rally sparked by the European Central Bank’s bond-purchasing plan last week. Trading volume was heavy at 608.9 million shares worth 4.28 trillion won ($3.79 billion), with losers outnumbering winne

Sept. 10, 2012

Foreign IBs downgrade 2012 outlook for Korea

Major foreign investment banks cut their forecast of Korean economic growth to the mid-2 percent range for this year on faltering exports, a report showed Monday.Ten foreign investment banks forecast the Korean economy to grow an average 2.6 percent this year, lower than their previous estimate of 2.9 percent made in July, according to a report by the Korea Center for International Finance.Their forecast stood in contrast with the central Bank of Korea’s 3 percent growth estimate and the governm

Sept. 10, 2012

S. Korea unveils 5.9 tln won worth of stimulus measures

South Korea unveiled an additional 5.9 trillion won (US$5.23 billion) worth of fiscal support Monday as part of its efforts to boost domestic demand amid worries tough overseas market conditions are casting a pall over the country's export-driven economic growth.According to the finance ministry, the government will push for additional fiscal support worth 4.6 trillion won this year and 1.3 trilli

Sept. 10, 2012

Shares likely to further rise this week

Korean stocks are expected to move higher this week on growing expectations that the U.S. Federal Reserve will roll out additional credit easing measures, analysts said Saturday.The country’s key stock index, the KOSPI, gained 0.7 percent this week to close at 1,929.58 on Friday. On Friday alone, the index rallied 2.57 percent as investors cheered the bond-buying program of the European Central Bank amid a recent lack of upward momentum.“This week is packed with a series of events, including the

Sept. 9, 2012

Consumer spending enters deeper slump

Government to announce new plan to invest additional W2tr to revitalize domestic consumptionThe nation’s domestic consumption is showing signs of further contraction as major retailers including department stores and giant marts recorded declining sales last month. Sales at local department stores dropped for three consecutive months since June, decreasing by 6.1 percent in August from the previous month, the Ministry of Strategy and Finance said on Sunday. It is the first time the figure droppe

Sept. 9, 2012

Seoul shares likely to further rise next week

South Korean stocks are expected to move higher next week on growing expectations that the U.S. Federal Reserve will roll out additional credit easing measures, analysts said Saturday.The country's key stock index, the KOSPI, gained 0.7 percent this week to close at 1,929.58 on Friday. On Friday alone, the index rallied 2.57 percent as investors cheered the bond-buying program of the European Cent

Sept. 8, 2012

KB set to take over ING Life Korea

Two sides reach ‘virtual’ settlement over terms of price: sourceKB Financial Group will soon take over the Korean insurance unit of ING Group, with the two sides having almost settled pending issues, financial sources in Seoul said on Friday.Negotiations between KB Financial, the nation’s second largest financial group and the sole contender in the bid for the Netherlands-based insurance group’s Korean arm, are in the final phase and they will soon conclude the deal, according to the sources inv

Sept. 7, 2012

Q2 growth revised down to 0.3%, rate cut expected

Korea’s economy grew at a slower pace than earlier estimated in the second quarter of this year due to weaker demand and sluggish exports, data showed on Thursday.The Bank of Korea said Korea’s gross domestic product grew by a revised 0.3 percent in the second quarter compared to the previous three months, down from an earlier estimate of 0.4 percent.The slower growth is expected to mount pressure on the central bank to cut interests rate again to spur growth. The central bank froze the key rate

Sept. 6, 2012

Fitch upgrades Korea

Fitch Ratings upgraded South Korea’s sovereign credit rating by one notch on Thursday.This is is the first time in 15 years that Korea has regained the “AA-” rating, which is on par with Saudi Arabia and a step higher than China and Japan.The global rating firm cited its continued economic and financial stability as well as the government’s fiscal discipline.Fitch raised Korea’s government bond rating to “AA-” from “A+”, roughly 10 months after changing the outlook to “positive” from “stable.”It

Sept. 6, 2012

Shares up ahead of ECB meeting

Korean stocks closed 0.38 percent higher on Thursday as investors pinned hopes on the upcoming European Central Bank meeting, analysts said. The local currency gained against the U.S. dollar.The benchmark Korea Composite Stock Price Index climbed 7.21 points to 1,881.24, snapping a two-session losing streak.Trading volume was heavy at 733.7 million shares worth 4.2 trillion won ($3.7 billion), with gainers outnumbering decliners 448 to 345.“There were concerns that Germany would be opposed to EC

Sept. 6, 2012

New policies buckle down on buckling up

All passengers in taxis and inter-city and express buses must wear seatbelts from Nov. 24, the Ministry of Land, Transport and Maritime Affairs announced Wednesday.Under the newly revised regulation, the driver must inform the passengers to put seatbelts on and check if they have done so before departure. Passengers including pregnant women, patients and those who cannot wear seatbelts for other physical reasons, such as obesity, will be excluded from the regulation. Local buses will not be affe

Sept. 5, 2012

Shares dip 1.74% on stimulus disappointment

Korean stocks closed 1.74 percent lower on Wednesday, as no signs of policy actions in the eurozone prompted investors to scurry to unload shares, analysts said. The local currency lost ground against the U.S. dollar. The benchmark Korea Composite Stock Price Index retreated 33.10 points to finish at 1,874.03. Trading volume was heavy at 602.3 million shares worth 4.62 trillion won ($4.07 billion) with decliners far outstripping advancers 580 to 240. “The KOSPI has fared well since its upward tr

Sept. 5, 2012

Korea ranks 19th in global competitiveness

Korea this year moved up five notches in terms of its global competitiveness from a year earlier, helped by improvements in the country’s welfare and education systems, as well as its market efficiency, a report showed Wednesday.According to the annual report by the World Economic Forum, the country’s competitiveness index moved up to 19th place of the 144 countries studied this year. The WEF, a Geneva-based independent organization, releases the report every year based on surveys of business le

Sept. 5, 2012

Foreigners’ net stock purchases hit record high

Foreign investors’ purchase of local stocks hit a record monthly high in August, as fears over the debt-mired eurozone waned and expectations for economic stimulus ran high, the financial regulator said Wednesday. Overseas investors bought a net 6.6 trillion won ($5.82 billion) worth of local equities last month, surpassing the previous record of 6.2 trillion won posted in January this year, according to the Financial Supervisory Service. Their shareholdings reached 383.9 trillion won as of the

Sept. 5, 2012

Korea’s FX reserves hit new high in Aug.

Korea’s foreign reserves rose to a fresh high in August as investment profit gained and a weaker dollar boosted the conversion value of non-dollar assets, the central bank said Wednesday.The country’s foreign reserves reached $316.88 billion as of the end of August, up $2.53 billion from the previous month, according to the Bank of Korea.The foreign reserves’ previous record high came in April when they hit $316.84 billion. In July, the BOK increased its gold holdings to 70.4 tons, its first pur

Sept. 5, 2012

FSS in talks with SC Bank over high dividends

The nation’s financial watchdog is currently in talks with Standard Chartered Bank Korea over the reduction of the bank’s planned payments of a high dividend of about 200 billion won to Standard Chartered Korea, officials said on Wednesday. Of the dividend, Standard Chartered Korea is expected to remit about 150 billion won to the headquarters in the U.K, according to industry sources. The payout ratio would reach almost 80 percent for SC Bank considering that its net profit in the first half th

Sept. 5, 2012

Shares slip 0.29% on auto earnings

Korean stocks closed 0.29 percent lower on Tuesday as investors scaled back holdings in automakers on concerns over their third-quarter earnings, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index fell 5.58 points to 1,907.13. Trading volume was heavy at 868.2 million shares worth 4.5 trillion won ($4 billion), with decliners outnumbering gainers 423 to 395.The loss was largely attributed to falls in auto shares.Industry data showed tha

Sept. 4, 2012

Foreign IBs forecast BOK’s key rate cut for September

Major foreign investment banks expect South Korea’s central bank to make another rate cut in September due to slumping exports hurt by the eurozone debt crisis and slowing inflationary pressure, a report showed Tuesday.The Bank of Korea is forecast to lower the benchmark 7-day repo rate next Thursday by a quarter percentage point to 2.75 percent in what would be the second rate cut this year, according to the report by the Korea Center for International Finance.The BOK froze the rate at 3 percen

Sept. 4, 2012