Korean credit card firms seek partnerships abroad

Korean credit card firms are working to build their own international networks hoping to reduce dependence on Visa and MasterCard. Local credit cardholders and issuers pay tens of billions of won every year as royalties and commission to the multinational credit card giants. Visa and MasterCard have a combined market share of about 92 percent in Korea.Visa or MasterCard-branded credit cardholders pay 1 percent of the amount they spend abroad as commission to the duopoly. Koreans spent some $8.62

June 21, 2012

Korea’s economic growth to slip to 3.5% this year: Hyundai Institute

South Korea’s economic growth is expected to slow to 3.5 percent in 2012 from a 3.6 percent expansion last year as global uncertainties hurt exports, a private think tank said Thursday. In its growth outlook, Hyundai Research Institute said first half growth has been affected by protracted eurozone woes and sluggish economic conditions in the United States and China. It said such developments have hurt outbound shipments that play an important role in the country’s growth.The HRI’s forecast for

June 21, 2012

Korea household debt growing alarmingly: Moody’s

Korea’s household loans have grown “at an alarming rate” to $553 billion in April and are vulnerable to financial shocks arising from a global economic downturn, a report said Tuesday.More people are borrowing just to meet living expenses and there is an increase in borrowers from the older age group and lower income group, said the report from Moody’s Investors Service.The credit ratings agency said outstanding household loans at the country’s banks and non-banks totalled 639.6 trillion won ($5

June 20, 2012

Asset managers’ earnings drop 14 percent in 2011

Earnings of asset management firms in South Korea fell 14 percent on-year in the 2011 fiscal year as weak stock prices and a drop in the net value of holdings cut into profits, the financial regulator said Wednesday.The combined net earnings of 82 asset managers came to 305.2 billion won ($264.7 million) when fiscal 2011 ended in March, down 49.8 billion won from a year earlier, according to the Financial Supervisory Service.“The total value of assets under management declined mainly because of

June 20, 2012

Cardif in Korea appoints new CEO

By Kim Min-ju Cardif in Korea, a subsidiary insurance arm of the BNP Paribas Cardif, announced Wednesday that it has named current deputy CEO Jean Christophe Darbes as its new incoming chief executive officer.Darbes was named to the post following a meeting of the board of directors on June 19. He will succeed current head Herve Giraudon on July 1. The company expressed its confidence in the new appointment, explaining that Darbes’ experience and relationships with both banks and financial gro

June 20, 2012

Asset managers' earnings drop 14 pct in 2011

Earnings of asset management firms in South Korea fell 14 percent on-year in the 2011 fiscal year as weak stock prices and a drop in the net value of holdings cut into profits, the financial regulator said Wednesday.The combined net earnings of 82 asset managers came to 305.2 billion won (US$264.7 million) when fiscal 2011 ended in March, down 49.8 billion won from a year earlier, according to the

June 20, 2012

Stocks end flat on Spain jitters

South Korean stocks closed effectively unchanged Tuesday as troubles in Spain’s bonds market offset Greece’s upbeat election results, analysts said. The local currency gained against the U.S. dollar.The benchmark Korea Composite Stock Price Index edged up 0.06 points to close at 1,891.77. Trading volume was light at 362 million shares worth 3.44 trillion won ($2.97 billion), with losers outpacing gainers 440 to 371.“Spain’s surging borrowing costs clearly showed that relief over Greece’s electio

June 19, 2012

KEB sells five-year bonds worth $700m

Korea Exchange Bank said on Tuesday it successfully issued bonds worth $700 million to foreign investors in its biggest dollar-denominated offering despite growing uncertainties stemming from the European fiscal crisis.In its first attempt to issue global bonds since it was acquired by Hana Financial Group in February, KEB sold 3.125 percent, five-year notes at a relative yield of 255 basis points more than similar-maturity U.S. Treasuries.KEB initially offered a yield of 275 basis points higher

June 19, 2012

Industrial electricity sales rise 4.2% in May

The growth of electricity consumption by South Korea’s industrial sector rose 4.2 percent on-year in May due mainly to export gains in energy intensive industries, the government said Tuesday.Sales of industrial electricity moved up to 21.53 billion kilowatt-hours last month from 20.67 billion kilowatt-hours reached a year earlier, according to the Ministry of Knowledge Economy. The gain marks a slowdown from an 8.5 percent on-year increase tallied in May 2011, although numbers accelerated from

June 19, 2012

Korea to accelerate spending to boost growth: ministry

The government plans to make certain that the state budget earmarked for use in the second half will be spent in a timely manner to bolster economic growth, the Finance Ministry said Monday.In a budget review meeting chaired by Vice Finance Minister Kim Dong-yeon, Seoul said it will do its best to inject money into projects in the coming months without delay.“The goal is to reduce the size of funds that are carried over into next year or not used at all because of various obstacles,” the senior

June 18, 2012

Self-employed tradesmen threaten Lotte Card boycott

Self-employed tradesmen across the country have threatened to boycott Lotte Card starting next month in protest of the low commission rate Lotte Mart applied to its credit card affiliate. A group of about 1 million self-employed businesspeople and some 60 organizations representing massage parlors, motels, restaurants and bars said Monday they will start boycotting Lotte Card and Lotte Mart from July 1. Lotte VIC Market, a warehouse store chain established by Lotte Mart to launch late this month

June 18, 2012

Greek election results to impact Seoul stocks

South Korean stocks will be influence by Greece’s parliamentary elections that are expected to shape the future of the eurozone and the global economy, local analysts said Saturday.The country’s key stock index, the KOSPI, closed at 1,854.16 points after a choppy session on Friday, a drop of 13.32 points from Thursday but a gain of 22.52 points from a week earlier.The solid weekly gains were helped by a surge in stock prices in chemical, steel and machinery and construction after they had not do

June 17, 2012

BOK head warns against bank loan defaults

Korean lenders need to better manage their loans and guard against a rise in loan defaults, the top central banker said Friday.In a meeting with presidents of commercial banks, Bank of Korea Governor Kim Choong-soo said loan delinquency rates have accelerated this year.“Such trends are raising concerns,” he stressed, pointing out that inability to pay back loans can pose serious challenges for local lenders and the economy as a whole. The remarks came as household loan delinquency rates reached

June 15, 2012

Korea’s household debt problem as serious as Spain’s: KCCI report

Korea’s ratio of household debt to gross domestic product has exceeded the average figure held by members of the Organization for Economic Cooperation and Development.According to the Korea Chamber of Commerce and Industry, Korea’s household debt-to-GDP ratio reached 81 percent, surpassing 73 percent of the OECD average.The level is quite serious as it is similar to the ratio (85 percent) of Spain which is suffering from a financial crisis and far exceeding that (61 percent) of Greece, one of th

June 14, 2012