Korea adds 8.5 trillion won to fiscal spending

The Finance Ministry said Thursday that it has revised its projection for the nation’s economic growth for this year down to 3.3 percent, from its earlier forecast of 3.7 percent.In its unveiling of the second-half economic policy direction, the Finance Ministry cited external factors including the eurozone fiscal crisis for the revision.Earlier, the International Monetary Fund and the Organization for Economic Development and Cooperation also lowered their respective forecasts for Korea’s GDP g

June 28, 2012

Current account surplus hits 6-month high in May

South Korea’s current account surplus hit a six-month high in May due mainly to a fall in dividend payouts to foreign investors, the central bank said Thursday.The current account surplus reached $3.61 billion in May, up from a revised $1.73 billion the previous month, according to the Bank of Korea. The current account is the broadest measure of cross-border trade.The May data marked the largest surplus since the $4.56 billion in November 2011 and the current account remained in the black for t

June 28, 2012

Seoul to offer incentives to banks to raise foreign currency savings

The government will provide incentives to banks that expand foreign currency deposits in a bid to reduce damage from possible capital flights in case of financial market instability, the Bank of Korea said Thursday.Korean banks and local branches of foreign banks held $37.3 billion in foreign currency savings, or about three percent of total deposits, as of April. The proportion is much lower compared to Taiwan (10 percent) which has a similar economic structure.For companies and individuals in

June 28, 2012

Banks to run pre-debt workouts for potential credit delinquents

The nation’s financial watchdog plans to have banks run pre-workout programs to help out potential credit delinquents. The Financial Supervisory Service announced on Thursday it recently discussed with local bankers in charge of loans running a joint pre-workout program with local banks. The key is to lower loan rates depending on the debtor’s ability to repay and enable them to pay back the principal through divided payments during a long-term period, FSS officials said. The plan will focus on

June 28, 2012

Shares end almost flat despite upbeat U.S. data

Korean stocks closed almost unchanged Thursday as nagging eurozone concerns offset improved U.S. economic data, analysts said. The local currency rose against the U.S. dollar.The Korea Composite Stock Price Index gained 1.53 points, or 0.08 percent, to finish at 1,819.18. Trading volume was light at 305 million shares worth 3.10 trillion won ($2.68 billion) with losers just outpacing gainers 398 to 383.“Investors sat on the sidelines amid a lack of upward momentum,” said Kim Joo-young, an analys

June 28, 2012

Shares flat on lingering eurozone woes

South Korean stocks closed marginally lower Wednesday as lingering concerns over the eurozone debt crisis kept investors reluctant to make risky bets, analysts said. The local currency rose against the U.S. dollar.The Korea Composite Stock Price Index edged down 0.15 points, or 0.01 percent, to finish at 1,817.66. Trading volume was moderate at 315.3 million shares worth 4.26 trillion won ($3.68 billion), with losers outpacing gainers 465 to 338.“There’s nothing from the ‘outside’ to invite inve

June 27, 2012

LG Display union launches scholarship program

Union members of LG Display, Korea’s display-making giant, will reach out and support children of firefighters and police officers who died in the line of duty.LG Display’s union said Wednesday that it forged ties with the Korea National Council on Social Welfare to provide scholarship funds to those children living in Gyeonggi Province and North Gyeongsang Province.The union plans to give scholarships of 1 million won each annually to children in elementary, junior and high schools, and 2 milli

June 27, 2012

Shares inch down on EU summit skepticism

South Korean stocks closed 0.23 percent lower on Tuesday as investor sentiment remained cautious over a deal to rescue the debt-mired eurozone, analysts said. The local currency rose against the U.S. dollar.The Korea Composite Stock Price Index dropped 4.16 points to finish at 1,821.22. Trading volume was light at 208 million shares worth 2.36 trillion won ($2.03 billion) with decliners outstripping gainers 485 to 305.“There’s a perspective that the summit will again stop short at a mere declara

June 26, 2012

Investment advisers see earnings slump 57% in 2011

Investment advisory firms in South Korea saw their earnings slump 56.8 percent in fiscal 2011 from a year earlier due to increased losses from investments in securities and derivatives, the financial regulator said Tuesday.The combined net income of 144 local and foreign investment advisers operating here reached 37.9 billion won ($32.6 million) in the fiscal year ended in March, compared with 87.7 billion won a year ago, according to the Financial Supervisory Service .The fall marked the first

June 26, 2012

Korea to face tough challenges as population hits 50m mark: official

South Korea is expected to face tough challenges now that its population has surpassed the 50 million mark, a senior economic policymaker said Monday.Vice Finance Minister Shin Je-yoon told an economic strategy coordination committee meeting that the population increase comes amid very low birthrates and rising concerns of reduced growth potential.“The population will grow for the time being to help create a domestic market for goods, but rapid population aging will trigger various social proble

June 25, 2012

Seoul stocks fall 1.19% ahead of EU summit

South Korean stocks fell 1.19 percent Monday ahead of a European Union summit and amid weak U.S. and Chinese economic data, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index plunged 22.01 points to 1,825.38, marking the third straight session of decline. Trading volume was very light at 277 million shares worth 4.08 trillion won ($3.51 billion), with losers outpacing gainers 501 to 316.“There is persistent uncertainty surrounding the E

June 25, 2012

Insurer loan default rate edges up in April

The default rate on loans extended by South Korean insurers inched up as of end-April from a month earlier, mainly due to a slight rise in overdue household and corporate loans, the financial regulator said Monday.The average ratio of overdue loans came to 0.80 percent of total lending by local life and non-life insurers, up 0.04 percentage points from the end of March, the Financial Supervisory Service said in a report.The April figure, however, marks a 0.29 percentage point dip from a year ear

June 25, 2012

Eurozone crisis forces foreign insurers to exit Korea

Ergo sells Korean online insurer, Aviva and ING put units up for saleA string of foreign insurers are withdrawing from Korea. Britain’s second-largest insurer Aviva Group is putting its Korean and Sri Lankan businesses on the auction block, according to Reuters last month. It plans to sell underperforming businesses globally to raise money to protect against its eurozone exposure, the media reported. Aviva set up a consortium with Woori Financial Holdings in 2008 to buy LIG Insurance and establi

June 25, 2012

Korea joining ‘20-50 club’ marks new chapter: Finance Ministry

South Korea joining the ranks of the exclusive “20-50 club” marks a new chapter in the development history of the country, the government said Saturday.The finance ministry said as the country’s population has passed the 50 million mark and it has been able to maintain a per capita income of over $20,000, South Korea has achieved an unprecedented feat for a newly industrialized economy.The 20-50 club is a coined termed by the local media to highlight countries who possess sizable populations and

June 24, 2012

Results of EU summit to affect Seoul stocks

South Korean stocks will be influenced by the results coming out of the European Union’s summit meeting scheduled for late next week that could help determine the future of the euro monetary union, local analysts said Saturday.The country’s key stock index, the KOSPI, closed at 1,847.39 on Friday, a drop of 0.57 percent or 10.77 points from the week before. The decrease marks the first time in five weeks that the bourse lost ground on a weekly basis, and was brought on by disappointment over the

June 24, 2012