Samsung Electronics to set up software R&D center

Samsung Electronics plans to build a research and development center in Umyeon-dong, Seocho-gu, Seoul.The tech giant has recently been given a greenlight from the district office to construct the 1 trillion won center, which will focus on R&D of software and tech design.The company has begun the construction of the center last week, a Samsung official said in media reports.The R&D center will be 10 stories high on a 330,000 square meter plot, housing some 10,000 research employees.It is expected

Aug. 16, 2012

Iran, Korea's banks spar over won-based settlement accounts

Iran's central bank has threatened to close its Korean currency-based transaction settlement accounts opened at two South Korean banks following economic sanctions on the Islamic country, calling for higher deposit rates on the accounts, sources said Thursday.Iran has notified two local state-owned banks -- Woori Bank and the Industrial Bank of Korea (IBK) -- of not using the Korean-currency accou

Aug. 16, 2012

Foreign IBs split on export outlook

Foreign investment banks forecast different outlooks on Korea’s export growth in the second half of the year. According to Korea Center for International Finance, Bank of America, Merril Lynch and Standard Chartered Bank expected that there was little possibility that Korea’s exports will drop again as the world economy was gradually recovering. According to the Bank of Korea, the nation’s exports in July marked $44.6 billion, the biggest drop in the past 33 months. The trade surplus was $2.7 bi

Aug. 15, 2012

Citibank builds homes for the poor

Citibank Korea said Tuesday that its CEO Ha Yung-ku and employees have participated in the lender’s voluntary work to built houses for the low-income families.According to the bank, Ha and 100 or so employees constructed two buildings in a town of Sinbuk, Chuncheon, Gangwon Province, from Aug. 6 to 11.Along with the project, called “2012 Citibank Habitat for Humanity,” the bank also delivered 300 million won ($266,000) worth of donation to Habitat for Humanity Korea CEO Lyu Tae-hwan, a bank offi

Aug. 15, 2012

Listed firms fare worse in Q2 on economic woes

Korean listed firms saw their net profits plunge in the second quarter despite increased sales, due to the protracted global economic slowdown, data showed Sunday.According to the Korea Listed Companies Association, the combined net profit of 80 major listed firms was estimated at 16.03 trillion won ($14.20 billion) in the second quarter, down 23.9 percent from a year earlier.Their total sales rose 6.1 percent on-year to 297.94 trillion won in the April-June period, with their operating profit f

Aug. 12, 2012

Foreign investors rush to buy Korean shares

Foreign investors poured the largest amount of money into Korean shares among emerging markets in Asia over the past month as easing concerns over Europe’s debt crisis prompted them to take greater risks, a report showed Sunday.Foreigners purchased a net $3.11 billion worth of Korean stocks between July 10 and Thursday, the largest foreign net buying among six emerging markets in Asia, according to the report by Woori Investment & Securities Co.Korea was followed by India with $1.15 billion, Ind

Aug. 12, 2012

FSS to look into non-banking sector borrowing

Korea’s financial watchdog said Sunday that it will look into the state of home-backed lending offered by non-banking financial institutions as part of its efforts to keep tabs on the overall surging household debts.Savings banks, insurers, credit finance firms and other non-banking financial agencies are the destination for many people seeking to borrow money after being rejected by banks due to their poor credit backgrounds.Their lending is focused on home-backed loans, which are estimated at

Aug. 12, 2012

More than 400 financial industry workers punished

Over 400 officials working in South Korea’s financial industry were submitted to disciplinary action so far this year for corruption and insincerity, according to the Financial Supervisory Service. The FSS announced on Sunday that 447 workers at local banks, brokerages, insurers and credit card firms faced penalties this year as of Friday for moral hazard and basic faults such as not properly checking the customers’ real names, embezzlement of customers’ deposits, leaking information and abettin

Aug. 12, 2012

Major insurers cut loan rates

Major insurers are cutting interest rates following public criticism that they are too high compared to banks. According to industry sources, Kyobo Life Insurance will reduce the ceiling on its policy loan rate of vested interest-based-insurance products from the current 13.5 percent to 10.5 percent in October. Policy loan rates will be managed at between 6.1 percent and 10.5 percent. Customers in urgent need of money often use policy loans as they enable policyholders to borrow 70 to 80 percent

Aug. 12, 2012

Producer prices fall for 1st time in 32 months

Korea’s producer prices declined for the first time in nearly three years in July on falling oil costs, the central bank said Friday, pointing to easing pressure on consumer inflation in Asia’s fourth-largest economy.The producer price index, a barometer of future consumer inflation, fell 0.1 percent in July from a year earlier, a turnaround from a 0.8 percent on-year gain in June, according to the Bank of Korea.The July figure marks the first decline since November 2009 when such prices decline

Aug. 10, 2012

New tax bill perturbs financial firms

Wealthy people and financial firms, especially credit card companies and life insurers, will suffer a blow from a revised tax bill announced Wednesday that imposes higher taxes on financial incomes and reduces the number of tax-free financial products.Immediate annuities, a major cash cow for life insurers, will no longer be tax-free under the revised bill starting next year amid criticism that they were being used by the rich as a means of tax avoidance. Those who keep the immediate annuity con

Aug. 10, 2012

Shares rises on stimulus hopes

Korean stocks closed marginally higher on Friday, as investors held onto an anticipation that major central banks will roll out a set of stimulus measures to boost economic growth, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index rose 5.81 points to finish at 1,946.40. Trading volume was moderate at 320.8 million shares worth 4.0 trillion won ($3.54 billion) with gainers outpacing losers 410 to 373. “The gains were capped as the KOSPI

Aug. 10, 2012

Shares jump on foreign buying

Korean stocks closed 1.96 percent higher Thursday on strong foreign buying fed by optimism over a global economic recovery, analysts said. The local currency rose against the U.S. dollar. The benchmark Korea Composite Stock Price Index shot up 37.33 points to 1,907.13. Trading volume was moderate at 483.1 million shares worth 6.32 trillion won ($5.60 billion) with advancers outstripping decliners 592 to 234. “Foreigners snapped up blue chips. China’s steady consumer prices and hopes for further

Aug. 9, 2012

HSBC, SC Bank face inspection for money laundering

Korea’s Financial Supervisory Service said Thursday it will examine HSBC and Standard Chartered Bank’s Seoul branches over money laundering cases allegedly involving the British banks. HSBC’s U.S. office is currently under investigation, accused of offering money laundering channels to hide transactions for terrorists and weapons dealers. The British bank’s Mexico office paid a fine of $27.5 million last month for not reporting on a suspicious transaction considered to have been involved in drug

Aug. 9, 2012

Financial firms tighten belts in economic slump

Korean financial firms, hit by the economic slowdown, are tightening their belts through job cuts and asset sales to shore up their falling profitability and put their balance sheets in better shape, market watchers said Thursday.Local brokerage houses are leading the way in reducing workforces and streamlining businesses.The total number of employees at 63 local brokerage firms reached 42,388 at end-March this year, down 0.7 percent from three months earlier, the first decrease since the second

Aug. 9, 2012

Revolving credit plagues 1m cardholders

Financial authorities seek to curb card debt rolled over past due dateAbout 1 million credit cardholders with low credit are facing further credit downgrades due to potential defaults on their revolving credit, prompting financial authorities to revise related rules.The revolving credit system allows cardholders to pay only between 5 and 10 percent of their monthly credit card bills and have the rest rolled over to the following month until it is fully paid off. Credit card firms charge consumer

Aug. 9, 2012

Banks’ household loan growth hits 4-month low in July

Korean banks’ household loans grew at the slowest pace in four months in July as the growth of mortgage lending eased amid a tepid property market, the central bank said Wednesday.Local banks’ household loans, including home-backed and credit loans, amounted to 457.8 trillion won ($405.9 billion) as of the end of July, up 695.3 billion won from the previous month, according to the Bank of Korea.The July growth contrasted with a 1.3 trillion won expansion in June and marked the slowest expansion

Aug. 8, 2012

Financial sector braces for blackouts

Most banks ready emergency backup system and staffMajor banks and brokerage houses are preparing against possible power blackouts as electricity consumption soars due to high temperatures.Unexpected power outages struck Seoul and many other parts of the country in September last year, raising concerns that similar accidents may recur at times of high electricity demand. The Korea Power Exchange issued a power shortage alert Tuesday after the nation’s electricity reserve dropped to below 4,000 me

Aug. 8, 2012

Shares rise on stimulus hopes

Korean stocks closed up 0.87 percent Wednesday as investor sentiment got a boost from heightened optimism over stimulus efforts in the United States and Europe, analysts said. The local currency inched up against the U.S. dollar. The benchmark Korea Composite Stock Price Index rose 16.43 points to finish at 1,903.23, extending its winning streak to a third consecutive session and restoring the 1,900 mark in seven weeks. Trading volume was moderate at 477.2 million shares worth 5.34 trillion won

Aug. 8, 2012