Korea’s foreign reserves rebound in June

Korea’s foreign reserves rebounded in June from the previous month as investment profit gained and a weaker dollar raised the conversion value of non-dollar assets, the central bank said Tuesday.The country’s foreign reserves reached $312.38 billion as of the end of June, up $1.51 billion from the previous month, according to the Bank of Korea.The foreign reserves in May retreated after they hit a fresh record high of $316.84 billion in April. The country’s FX reserves have been widely on the ri

July 3, 2012

Bank earnings probably slipped almost 15 percent in first half

Korean major banks’ earnings may have dropped nearly 15 percent on-year in the first half of the year amid economic uncertainties and increased bad loans, data showed Tuesday.The combined net income of the country’s four major banking groups, including Woori Finance Holdings Co. and KB Financial Group Inc., and Industrial Bank of Korea and Korea Exchange Bank is estimated to have fallen 14.6 percent on-year to 7.95 trillion won ($6.96 billion) in the first half, according to financial informatio

July 3, 2012

Foreign IBs give Korean stocks overweight ratings

Major foreign investment banks have advised investors to purchase more South Korean stocks, citing the market’s upward potential down the road, a report showed Tuesday. Six out of seven foreign IBs including Credit Suisse and Deutsche Bank have offered overweight ratings for South Korean shares, according to the report by the Korea Center for International Finance. Credit Suisse predicted the benchmark KOSPI will likely trend upward, considering its current level has been undervalued about 16 pe

July 3, 2012

Biggest-ever class suit filed over fixed collateral fee

A total of 42,000 borrowers have filed a collective suit against banks and other financial institutions to retrieve fees for registering collateral, becoming the largest-ever number of people to take such joint legal action.The Korea Consumer Agency said on Tuesday that it filed a complaint on behalf of 42,000 people who requested a class-suit to retrieve collateral-fixing fees paid to a judicial scrivener for mortgage loans from banks. About 1,500 financial institutions including banks, insurer

July 3, 2012

NTS rejects Lone Star’s refund request

Tax dispute likely to become Korea’s first ISD for arbitrationThe National Tax Service has decided to reject Lone Star’s request for a refund of 391.5 billion won ($348 million) in tax on capital gains from its sale of Korea Exchange Bank, officials said Tuesday.The U.S. buyout fund sold its 51.02 percent stake in KEB for about 3.9 trillion won ($3.5 billion) to Hana Financial Group in January. The NTS imposed a 10 percent withholding tax on the proceeds from the sale, which Hana Financial paid

July 3, 2012

Seoul shares slide 0.13%

South Korean stocks slipped 0.13 percent on Monday as renewed optimism over the eurozone debt crisis faded amid concerns over downbeat economic data and second-quarter earnings, analysts said. The local currency fell against the U.S. dollar.After opening higher, the benchmark Korea Composite Stock Price Index fell 2.36 points to close at 1,851.65, stemming a two-session winning streak. Trading volume was moderate at 265.1 million shares worth 3.41 trillion won ($2.98 billion), with gainers outnu

July 2, 2012

Korea, Vietnam to announce start of FTA talks next week

Korea and Vietnam are expected to announce start of the negotiations for a bilateral free trade agreement next week in Hanoi, according to government sources.Trade Minister Bark Tae-ho plans to visit Hanoi to announce the beginning of FTA talks with his Vietnamese counterpart on July 13, the sources said. The Southeast Asian country’s rice, tropical fruits and fisheries are likely to be the most contentious issues in the FTA talks.Vietnam, which is the world’s largest exporter of rice along with

July 2, 2012

Seoul bourse’s turnover hits all-time low in June

Korea’s main stock market saw its trading volume hit an all-time low in June on the worsening of the eurozone fiscal crisis and escalating concern over a global economic slump, market watchers said Monday.The daily turnover of the main board averaged 4.53 trillion won ($3.98 billion) last month, a mere 0.38 percent of the market capitalization, according to the bourse operator Korea Exchange and industry sources.June’s average daily turnover dropped to the lowest monthly level since the bourse o

July 2, 2012

Korea’s consumer inflation slows in June

Korea’s consumer prices grew at a slower pace in June amid the government’s push to tame inflationary pressure, a report showed Monday.According to the report by Statistics Korea, the country’s consumer price index rose 2.2 percent in June from a year earlier, slowing from a 2.5 percent gain in May. June’s reading marks the fourth month in a row that inflation stood in the 2 percent range and the lowest gain in 32 months after prices rose 2.0 percent on-year in October 2009.The so-called core in

July 2, 2012

Insurers probed for accounting fraud

Four insurers suspected of having illegally increased dividends to their major shareholdersThe nation’s top financial regulator said on Monday it was looking into whether life insurance companies illegally increased dividends to their major shareholders by cooking the books.The Financial Supervisory Service said it launched month-long inspections on eight life insurers including Samsung, Korea, Mirae Asset, Tongyang, Kyobo, Shinhan, ING and IBK. “The purpose of the probe is to find out if the in

July 2, 2012

Top 100 firms’ assets total nearly W1,500tr: report

The top 100 companies in South Korea have collective assets of nearly 1,500 trillion won ($1.36 trillion), equaling 95 percent of the nation’s public assets, according to a report released on Sunday. Chaebul.com, an online corporate information provider, said that the 100 groups excluding state-owned or public enterprises had assets of 1,446.76 trillion won as of last year. The financial power of private companies stands shoulder-to-shoulder with that of the nation, said the report, and is expec

July 1, 2012

Public institutions’ debt ratio soars in 2011

Korean public institutions’ debt surged in 2011 from the previous year due mainly to increased spending on large-scale investment projects, government data showed Sunday.According to the data from the Finance Ministry, the debt-to-equity ratio of 286 state-invested companies and other public institutions averaged 197 percent last year, up from 165 percent a year earlier.As of the end of last year, their liabilities totaled 463.5 trillion won ($404 billion), while their equity capital came to 235

July 1, 2012

Stocks to continue upward

Korean stocks will likely rally again this week, local analysts said Saturday, following an agreement at a European summit to ease bailout rules for debt-ridden countries in Europe.The country’s key stock index, the Korea Composite Stock Price Index, closed at 1,847.39, up 0.35 percent from a week earlier. The tech-heavy KOSDAQ climbed 0.82 percent from a week before to close at 489.16.Local investors, individuals and institutions alike helped keep the stock market afloat, purchasing a net 1.36

July 1, 2012

Samsung barred from U.S. Nexus phone sales in suit

Samsung Electronics the world’s biggest maker of mobile phones, was barred from selling its Galaxy Nexus smartphone in the U.S. by a second court ruling this week in its global patent dispute with Apple Inc. The ruling by U.S. District Judge Lucy Koh in San Jose, California, follows her June 26 order blocking U.S. sales of Samsung’s Galaxy Tab 10.1 computer in the patent and trademark- infringement lawsuit over smartphones and tablets. On June 7, Koh expedited evidence sharing for Apple’s bid to

July 1, 2012

Seoul shares rally 1.91% on EU summit progress

South Korean stocks rallied 1.91 percent on Friday as European leaders reportedly decided to ease bailout rules for debt-ridden governments, analysts said. The local currency gathered ground against the U.S. dollar.The Korea Composite Stock Price Index climbed 34.83 points to finish at 1,854.01. Trading volume was moderate at 309.8 million shares worth 4.29 trillion won ($3.73 billion) with gainers far outpacing losers 578 to 248.“Extreme fears over the eurozone seem to have been lifted. Germany

June 29, 2012

Insurance firms told to cut auto premiums

Financial Supervisory Service Gov. Kwon Hyouk-se on Friday expressed his regulatory policy direction toward inducing a further slash in automobile insurance premiums. “The insurance loss ratio could go up in July and August as accidents tend to increase during vacations and rainy seasons,” Kwon said during a breakfast meeting with the chief executives of 16 insurance companies and heads of their trade associations in Seoul.“The industry should come up with measures to reduce the loss ratio.”The

June 29, 2012