Insurance firms probed over premium hikes

FSS investigating risk calculation in medical insurance premiumsThe Financial Supervisory Service is set to conduct a investigation into the non-life insurance sector amid allegations that some companies improperly calculated risk for medical insurance premiums.Several insurers have recently raised fees by more than 50 percent, arguing that risk factors increased, according to regulatory officials. The regulator’s probe will target eight insurance firms selling medical insurance products. They a

July 8, 2012

Korea to sell 2tr won in Treasury bills in July

Korea plans to sell 2 trillion won ($1.76 billion) worth of Treasury bills in July to shore up government coffers, the Finance Ministry said Friday. Treasury bills are intended to raise money so the government can cope with short-term financial shortfalls. Such bonds generally mature in less than one year, with those to be sold this month to come due in 63 days.South Korea resumed issuing Treasury bills for the first time in five years in 2011 when it sold a total of 11.7 trillion won worth of s

July 6, 2012

Korean Air voted for best passenger service

Korean Air has ranked at the top in the best passenger service of the Global Customer Satisfaction Competency Index for eight consecutive years, the nation’s flag-carrier said on Friday.Company officials said it won the prize thanks to its efforts to innovate in-flight services and focus on customer satisfaction.The annual index is done by Japan Management Association Consultants Inc. JMAC is a multinational consultant group which evaluates customer’s satisfaction on services and products throug

July 6, 2012

‘Full-fledged economic recovery being delayed’

Korea’s economy is rebounding at a slower-than-expected pace amid deepening uncertainties from the eurozone debt problems and possible worldwide slowdowns, the country’s top economic policymaker said Friday.“It is tough to predict how economic situations will play out in the second half but one thing seems to be certain and that is full-fledged economic recovery is being delayed,” Finance Minister Bahk Jae-wan told a press conference with foreign journalists in central Seoul.His remarks come a w

July 6, 2012

Shares down despite stimulus salvo

Korean stocks closed 0.92 percent lower on Friday as investors showed muted response to a set of stimulus measures by central banks, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index lost 17.29 points to 1,858.2. Trading volume was moderate at 335.7 million shares worth 3.6 trillion won ($3.2 billion), with decliners outnumbering gainers 496 to 309.“The rate cuts by the European Central Bank and China’s central bank did little to boost

July 6, 2012

36 large firms put under debt workout

Thirty-six large companies including 17 builders will have to either undergo a debt workout program or be forced out of the market, the Financial Supervisory Service said Friday, citing the results of an annual evaluation by creditors.Creditor banks assessed the credit risks of 1,806 companies that borrowed 50 billion won or more from financial institutions, and blacklisted 36 of them into grades C and D. Fifteen of them, including five construction companies, a shipbuilder, two semiconductor ma

July 6, 2012

Concern looming over household debt defaults

Nearly 100 trillion won ($87.9 billion) in household debt owed to banks will come due this year, sparking jitters over a surge in defaults amid a worsening housing market and a global economic downturn, sources said Thursday.Local households will be required to pay back 98 trillion won in bank loans this year, with home-backed loans taking up the bulk of the total, or 79.5 trillion won, according to the Financial Services Commission. Of the total mortgage loans, about 60 trillion won should be r

July 5, 2012

Banks’ FX deposits hit record high in June

Foreign currency deposits at South Korean banks rose to their highest level in June as companies put more money into them amid a wider trade surplus, the central bank said Thursday.Foreign currency-denominated deposits held by residents reached an outstanding a record high of $33.48 billion as of the end of June, up $1.42 billion from the previous month, according to the Bank of Korea. The term residents includes individual citizens, firms and foreign nationals who have lived in the country for

July 5, 2012

Eurozone debt woes weighing down Korea’s economic growth: report

Korea’s economic conditions continue to improve modestly, but eurozone debt problems and slowdowns in major countries are still fueling uncertainties for its export-driven growth, the finance ministry said Thursday.In its monthly “green book” report, the ministry said that the government has to brace for a persistent and prolonged crisis down the road, underlining the need to closely monitor market conditions at home and abroad.“External market situations remain cloudy as worries over the eurozo

July 5, 2012

Seoul shares end flat ahead of ECB meeting

South Korean stocks closed nearly flat on Thursday as investors refrained from trading ahead of the European Central Bank policy rate meeting and Samsung Electronics’ guidance release, analysts said. The local currency gained against the greenback.The benchmark Korea Composite Stock Price Index rose 1.04 points, or 0.06 percent, to 1,875.49. Trading volume was moderate at 318.4 million shares worth 3.59 trillion won ($3.16 billion), with gainers outnumbering decliners 401 to 385.“Investors have

July 5, 2012

Hana’s ‘good housing’ loans rise in popularity

A “good housing” loan package offered by Hana Bank has been gaining popularity among consumers.Called the “Hana Good Housing Lease Loan,” the package offers benefits for loan seekers such as a six-month waived-interest period for the recently unemployed. Those looking to rent an officetel, or studio apartment, as well as those who are looking for a half-loan are eligible for the program. The loan package also offers bank-backed insurance claims, and compared to other loan packages, is relatively

July 5, 2012

Samsung Life execs paid highest in sector

Insurer paid W4.85b in average annual wage to three most senior executivesSamsung Life Insurance paid its top management an average annual salary of some 4.85 billion won ($4.26 million) in the fiscal year of 2011, the highest in the financial sector.Top brass of Samsung Group’s other subsidiaries were also the best-paid among credit card companies and non-life insurers, according to the regulatory filings made to the Financial Supervisory Service. Samsung Electronics made headlines in May for b

July 5, 2012

FSS calls for measures to curb household debt

Korea needs to take pre-emptive actions against mounting household debt as the sluggish local property market and global economic downturn are contributing to a steady rise in loan delinquency rates, the head of the country’s financial watchdog said Wednesday.“It’s imperative that we take pre-emptive countermeasures against the household debt problem to assure a soft landing as it poses a great risk to our growth,” Financial Supervisory Service Gov. Kwon Hyouk-se said during a seminar held in ce

July 4, 2012

FDI in Korea surges to record high in H1

Foreign direct investment in South Korea rose to a new high in the first half of the year as the amount from Japan nearly tripled despite a large drop in investment from European Union countries, the government said Wednesday.The amount of new FDI pledged or reported in the January-June period came to $7.11 billion, up 32.5 percent from $5.37 billion for the same period last year, according to the Ministry of Knowledge Economy.The amount is the highest ever for the first half in the country’s hi

July 4, 2012

Banks to tighten grip on loans

Korean banks are likely to tighten their grip on loans in the third quarter as the eurozone debt crisis is upping economic uncertainty, the central bank said Wednesday.An index gauging lending attitudes reached three for the July-September period, compared with seven tallied in the second quarter, according to a survey of 16 local banks conducted by the Bank of Korea.The third-quarter data marked the lowest level since the index came in at minus four in the fourth quarter of 2009, it added.The l

July 4, 2012

IMF says Korea has little room to cut rate

Korea’s central bank has limited leeway to cut its key interest rate as Asia’s fourth-largest economy remains dogged by high inflation expectations, the International Monetary Fund said Wednesday.The IMF said in a report that given sluggish growth, high unemployment and downside risks, more monetary easing should be considered for some advanced economies, with the possible exception of Canada and Korea.The international organization said that for South Korea, “still-elevated inflation expectatio

July 4, 2012

Regulator to cut credit card fees for merchants

Korea’s financial regulator said Wednesday it will move to reduce commission rates that credit card firms charge merchants in an effort to help ease smaller stores’ financial burdens.The average commission rate will be lowered to 1.9 percent from the current 2.1 percent within this year, benefiting 2.14 million merchants, or 96 percent of the 2.24 million card-accepting stores, according to the Financial Supervisory Service.The watchdog said the measure will likely enable merchants to save 900 b

July 4, 2012

Seoul shares up 0.87 percent on hopes of stimulus measures

South Korean stocks closed 0.87 percent higher Tuesday as weak economic data from major economies spurred expectations that policymakers may move toward stimulus measures, analysts said. The local currency rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index jumped 16.17 points to 1,867.82. Trading volume was moderate at 340.8 million shares worth 4.67 trillion won ($4.1 billion), with gainers outnumbering decliners 523 to 280.“A series of weak economic data from China an

July 3, 2012