SKT launches fraud compensation service

SK Telecom, Korea’s largest mobile carrier, has launched a service that will ensure consumers receive compensation when hit by financial fraud via mobile networks.The service, named “Safe and Joy,” will offer its customers compensatory damages of between 1 to 3 million won, which they can use to take legal action, should they fall victim to voice and messenger phishing, and credit card misuse. Parents of Safe and Joy’s customers who had been exposed to such fraud can also receive the same financ

June 14, 2012

Banks slapped on wrist for misconduct

FSS says most unlawful practices detected at large institutionsMajor banks have been caught for misconduct such as failing to confirm real names in financial transactions or making borrowers purchase financial products to have their loan applications approved, the Financial Supervisory Service said Thursday. The nation’s top financial regulator said it reprimanded numerous banks 53 times and punished 348 bank employees over the past two years.The FSS issued institutional warnings to KB Kookmin B

June 14, 2012

Seoul shares gain 0.25% on U.S. stimulus hopes

South Korean stocks gained 0.25 percent Wednesday on expectations the U.S. Federal Reserve may announce new stimulus measures to bolster growth, analysts said.The local currency rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index moved up 4.58 points to 1,859.32. Trading volume was moderate at 5.38 million shares worth 3.73 trillion won ($3.19 billion), with losers outpacing gainers 423 to 381.“Forecasts that the U.S. will push forward additional quantitative easing to s

June 13, 2012

Group caught for largest-ever illegal foreign exchange trading

A ring of companies and individuals were caught for illegal trading of some 1.4 trillion won in foreign exchange over the past five years, the Korea Customs Service said Tuesday. About 130 clothing and trading firms were involved in the largest ever case of illegal foreign exchange trading to be exposed by the KCS. The Seoul Main Customs Office of the KCS said eight people including 45-year-old ringleader surnamed Lee have been booked without detention on charges of violating the foreign exchang

June 12, 2012

Foreign IBs expect BOK to cut key rate

Some foreign investment banks have forecast South Korea’s central bank will lower its key interest rate in the near future to help stimulate growth, a report showed Tuesday.The report by the Korea Center for International Finance said a number of leading IBs have predicted the Bank of Korea will move to lower rates to offset economic slowdown concerns brought on by persistent eurozone woes and sluggish growth in the United States and China.The predictions come after the BOK froze the seven-day r

June 12, 2012

Shares fall on Spain bailout disappointment

South Korean stocks fell 0.66 percent Tuesday after investors expressed disappointment over Spain’s bailout plans and concerns mounted over upcoming Greek elections, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index lost 12.30 points to 1,854.74. Trading volume was light at 404 million shares worth 5.59 trillion won ($4.77 billion), with losers outpacing gainers 441 to 361.“The market backtracked as investors expressed concerns that th

June 12, 2012

Manufacturers’ debt repayment ability deteriorates in 2011

South Korean manufacturers’ capacity to repay debt deteriorated in 2011 due to sluggish economic growth and increases in borrowing costs, the central bank said Tuesday.The ratio of a manufacturer’s operating cash flow to short-term borrowing and interest reached 53.8 percent last year, down sharply from 66.1 percent reached in the previous year, according to a survey of 7,404 manufacturers conducted by the Bank of Korea .The ratio measures a company’s ability to service short-term debt with cash

June 12, 2012

Shares jump 1.71% on Spain bailout

South Korean stocks shot up 1.71 percent Monday after Europe’s finance ministers agreed on a bailout program for Spain over the weekend, analysts said. The local currency rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index spiked 31.40 points to 1,867.04. Trading volume was light at 356 million shares worth 4.21 trillion won ($3.61 billion), with gainers outpacing losers 647 to 199.“The eurozone’s decision to help Spain’s banking sector alleviated global stock market unc

June 11, 2012

FSS to delay ATM cash withdrawals to curb voice phishing scams

The nation’s top financial regulator said Monday it would introduce a new cash withdrawal system later this month as part of efforts to reduce the harm caused by voice phishing.Starting June 26, cash withdrawals of 3 million won or more from ATM machines will not be possible until at least 10 minutes after the money has been wired to the account, the Financial Supervisory Service said.“The new system is aimed at buying time for financial authorities to suspend the accounts of voice phishing scam

June 11, 2012

Hanwha Finance Network eyes retirement market

Hanwha Finance Network plans to enter the retirement market by providing customized one-stop services for financial customers, said Hwang Seung-jun, vice president of Hanwha Group’s Management and Planning headquarters. “The retirement market is expected to grow exponentially as baby-boomers have begun to retire in 2010,” Hwang told The Korea Herald in an email interview. “The right financial solutions are much needed for retirees in order to minimize uninvited social, economic shock as well as

June 11, 2012

Korea’s economy improves amid uncertainties: think tank

South Korea’s economy has pulled off modest gains in recent months but eurozone woes and other overseas developments are fueling uncertainties that can hurt future growth, a state-run think tank said Monday.In its monthly economic assessment report, the Korea Development Institute said that industrial and service sector outputs, private consumption, business investment and labor market conditions all improved in April compared to the previous month. The trade surplus of Asia’s fourth-largest eco

June 11, 2012

Eurozone crisis pummels Korean brokerages

South Korea’s securities brokerage industry has been a big underperformer for the past year, buffeted by the resurfacing of the European debt crisis and other negative factors, data showed Sunday.The return on the brokerage sector’s subindex stood at minus 30.6 percent during the past year, the third-worst record after minus 32.6 percent for medical and precision machines and minus 31.9 percent for chemicals, according to the data by the Korea Exchange, the local bourse operator.In addition, the

June 10, 2012

Seoul stocks may be exposed to volatility ahead of Greek bailout

South Korean stocks will likely be exposed to volatility ahead of crucial Greek parliamentary elections that will determine the future of the eurozone, local analysts said Saturday.The country’s key stock index, the KOSPI, closed at 1,835.64 points on Friday, up just 0.06 percent or 1.13 points from a week earlier.The weak gains came as the local bourse lost ground in the face of persistent debt and financial sector problems in the European Union and disappointments caused by the U.S. Federal Re

June 10, 2012