Korea focuses on expanding tax revenue without rate hikes

Government plans to raise 1.7 trillion won in additional tax revenue by 2021The government turned its focus for its tax revision bill on expanding the overall tax revenue base by finding hidden income sources and streamlining related laws rather than hiking tax rates, the finance minister said Wednesday.“Our tax bill this time is focused on legalizing (hidden) tax sources, expanding the overall revenue base, which is deemed to be less transparent than other advanced countries, and reducing the s

Aug. 8, 2012

Korea’s corporate debt jumps in Q1

Korea’s corporate debt rose sharply in the first quarter of this year, data showed Tuesday, spawning concerns that the high indebtedness is feared to weigh on the already weakening economic growth.Local companies’ debt reached 107 percent of the country’s gross domestic product as of end-March, well hovering above a tipping point of 90 percent, according to the Korea Insurance Research Institute. In 2010, the ratio came in at 104 percent.The corporate debt ratio fell to 78 percent in 2004 after

Aug. 7, 2012

Shares edge up on eased eurozone woes

Korean stocks closed marginally higher on Tuesday as investors took a pause after recent rallies amid eased concern over the eurozone debt crisis, analysts said.The local currency inched up against the U.S. dollar. The benchmark Korea Composite Stock Price Index added 0.92 points, or 0.05 percent, to finish at 1,886.80. Trading volume was moderate at 320.6 million shares worth 3.47 trillion won ($3.07 billion), with gainers outstripping losers 502 to 317. “Investors took a breather as signals fr

Aug. 7, 2012

Monthly stock trading dips below W100tr

Korea’s monthly stock trading volume has remained below the 100 trillion won ($88.6 billion) mark for four straight months this year as global uncertainties arising from the debt-ridden eurozone are sapping investor appetites, data showed Tuesday. The monthly trading turnover of stocks listed on the main bourse stood at 90.5 trillion won as of the end of July, according to the data by the Korea Exchange and the Korea Financial Investment Association. Trading turnover figures had stood above the

Aug. 7, 2012

Seoul shares rally 2.01% on eurozone hopes

Korean stocks jumped 2.01 percent on Monday as unexpected improvement in U.S. employment data and renewed hopes over the troubled eurozone boosted investor confidence, analysts said. The local currency rose against the U.S. dollar. The benchmark Korea Composite Stock Price Index climbed 37.20 points to finish at 1,885.88. Trading volume was moderate at 242.6 million shares worth 4.13 trillion won ($3.66 billion) with advancers outpacing decliners 562 to 242. “Good news from the U.S. and Europe a

Aug. 6, 2012

Brokerages cut staff numbers as financial market stagnates

Local brokerages are reducing their staff amid continued stagnation in the stock market, according to reports. Staff sizes at 63 brokerages in Korea dropped by 0.6 percent from 42,682 at the end of last year to 42,388 in the first quarter, the Financial Supervisory Service and Korea Financial Investment Association said Monday. It is the first time brokerages have reduced employees since 2009, in the wake of the collapse of Lehman Brothers Holdings. “The continued market stagnation resulted in a

Aug. 6, 2012

Nine savings banks unlawfully controlled by major shareholders

Major shareholders of nine mutual savings banks with assets of more than 500 billion won ($444 million) were found to have interfered with management in an unlawful manner, the nation’s top financial regulator said Monday.The nine savings banks are Hyundai Swiss, Hyundai Swiss 2, Shilla, Gongpyung, Seram, Pureun, Shinana, Moa and W, the Financial Supervisory Service said.While wielding control over the secondary lenders, the major stockholders or their family members did not give any business ap

Aug. 6, 2012

1 in 4 listed firms in earnings shock: report

Korean companies suffer deficit or drop in Q2 earnings amid eurozone crisisHalf of the listed companies in South Korea that have reported second quarter earnings marked a deficit or decrease, according to a report released Sunday. About a quarter of firms seriously underperformed expectations. Among 69 companies that announced second-quarter earnings as of Friday, five marked a deficit and 29 reported a drop in operating profit, said Fn Guide, online stock information provider. Most of those who

Aug. 5, 2012

Shares to follow eurozone developments in tight range

South Korean stocks will likely move within a tight range next week as they will continue to be influenced by the eurozone economic woes, local analysts said Saturday.The country’s key stock index, the Korea Composite Stock Price Index, closed at 1,848.68, up 1.06 percent or 19.52 points higher from a week earlier.Foreign and institutional investors scooped up a net 1.53 trillion won ($1.35 billion) worth of shares with individuals offloading a net 1.95 trillion won worth of shares.The KOSPI onc

Aug. 5, 2012

Market uncertainties prompt flight to safer assets

A growing number of South Korean investors are fleeing to safer assets as a safe haven from the uncertainties of the global economic slowdown, industry sources said Sunday. The outstanding value of term deposits at five local lenders reached 418 trillion won ($368.7 billion) as of the end of July, up 15 trillion won from 403 trillion won tallied in December 2011, according to financial sources. The corresponding figure for household debts, however, grew a mere 0.78 percent to 2.4 trillion won in

Aug. 5, 2012

NPS’ direct investment profits 3.48%

National Pension Service outperforms assets managers on profitsDirect investments made by the National Pension Service are marking steady profits in the fluctuating stock market, according to NPS officials. The accumulative profit rate of the service’s direct investment in local stocks marked 3.48 percent for the five first months of the year, they said. The figure is far higher than the profit rate of the KOSPI, which marked 0.97 percent. Direct investment in the KOSPI made by the NPS was more

Aug. 5, 2012

Low-income households face higher default risks on debts: report

The ratio of "debt-risk" households among low-income brackets are significantly higher than the national average, a report showed Sunday, confirming that poor families are more vulnerable to worsening economic and financial conditions.According to the report by the state-run Korea Development Institute, the ratio of households deemed to have insufficient ability to pay back their debt among the na

Aug. 5, 2012

Foreigners dump local stocks for 4th month

Foreign investors offloaded local stocks for a fourth consecutive month in July mainly due to continuing external uncertainties stemming from the debt-mired eurozone, the financial regulator said Friday.Overseas investors sold off a net 710 billion won ($627.2 million) worth of local equities last month, with their shareholdings reaching 379.9 trillion won as of the end of July, the Financial Supervisory Service said.Foreign stock ownership inched up to 31.6 percent of the market cap last month

Aug. 3, 2012

Bill cuts capital gains tax for multiple homeowners

The Finance Ministry on Friday unveiled a revised tax bill which removes the additional capital gains tax burden on multiple homeowners as part of efforts to stimulate the property market. Multiple homeowners, with the exception of those possessing three or more homes in speculative regions, will be applied the same capital gains tax rates as those who own a single home when selling their houses. The bill also includes raising the minimum tax rate for large companies that receive various tax ben

Aug. 3, 2012

FSS strives to retain supervision power

Regulator poised to intervene in KDIC’s probe of savings banksFinancial regulators are sticking their noses into the Korea Deposit Insurance Corp.’s independent investigative authority over mutual savings banks, many of which it failed to supervise.The situation comes after the Financial Services Commission and the Financial Supervisory Service hindered the National Assembly from allowing the Bank of Korea to independently conduct a probe of financial firms last year.The FSS is in talks with the

Aug. 3, 2012

Home prices drop for 1st time in 2 years

The average price of houses in South Korea dropped for the first time in two years, related data showed Thursday, offering another clear indication of the country’s struggling housing market.The average price of homes across the country dropped 0.1 percent from a month earlier in July, according to the data released by Kookmin Bank, the largest bank in South Korea. July marks the first time since July 2010 the average price of houses dropped from the previous month.The drop was partly led by a d

Aug. 2, 2012

Seoul shares down 0.56% on Fed disappointment

South Korean stocks fell 0.56 percent Thursday following the U.S. Federal Reserve’s announcement of no fresh action to boost the slowing economy, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index lost 10.53 points to 1,869.4. Trading volume was light at 267.4 million shares worth 3.35 trillion won ($2.96 billion), with losers outnumbering gainers 446 to 342.“The meeting of the Federal Open Market Committee’s was somewhat disappointing

Aug. 2, 2012

Credit card spending up

Growth of South Koreans’ credit card spending decelerated in the first half from a year earlier mainly due to the local economy’s slowdown, a trade association said Thursday.Purchases made with credit cards totaled 253.2 trillion won ($224.8 billion) in the January-June period, up 6.9 percent from a year earlier, according to the Credit Finance Association.When adjusted for inflation, the increase rate was less than 6 percent, the association added. The figure lags behind 17.7 percent on-year gr

Aug. 2, 2012

Korea to cushion grain prices: minister

The government will play a role in cushioning risks from a possible failure to purchase sufficient grain products in the face of concerns that rising international crop prices could increase food costs and overall inflationary pressure here, the finance minister said Thursday.“As international crop prices are recently spiking in the wake of droughts that hit the United States and South America, fears are rising over agflation,” Finance Minister Bahk Jae-wan told a price stabilization meeting.“We

Aug. 2, 2012