Korean manufacturers’ business sentiment improves for May

South Korean manufacturers’ business confidence for May moved up for the fourth straight month as overall economic conditions showed signs of steady improvement, the central bank said Monday.The business survey index of manufacturers’ expectations rose to 90 for May from 85 tallied in April, according to the Bank of Korea.The reading follows recent improvements in the BSI that started from February onwards after dropping to 79 in the first month of this year.The index measures manufacturers’ out

April 30, 2012

Public sector debt jumps

Debt owed by South Korea’s public sector soared more than 15 percent in 2011 from a year earlier due to increased spending on welfare and infrastructure projects, a government report showed Monday.According to the report by the finance ministry, 286 public corporation and agencies had a combined debt of 463.5 trillion won ($409.4 billion) as of end-2011, up 15.4 percent from the previous year.They include state-run enterprises such as Korea Electric Power Corp., Korea Deposit Insurance Corp. and

April 30, 2012

Industrial output growth drops sharply in March

South Korea’s industrial output growth dropped sharply in March from the previous month mainly due to weak exports and domestic demand, a government report showed Monday.Production in the mining and manufacturing industries edged up 0.3 percent last month from a year earlier, compared with a 14.3 percent on-year increase in February, according to the report by Statistics KoreaThe monthly output number represents a 3.1 percent contraction from February.In the manufacturing sector, which makes up

April 30, 2012

Stocks to track eurozone developments

South Korean stocks are expected to track developments in eurozone countries and global and domestic economic data this week, local analysts said.The country’s key stock index, the KOSPI, closed at 1,975.35 on Friday, a dip of 0.1 percent from a week earlier, mainly due to North Korea’s geopolitical risk, and persistent eurozone woes fueled by the downgrading of Spain’s long-term credit rating by two notches. Concerns fiscal instability may spread to the Netherlands and France further affected t

April 29, 2012

Korean bank earnings drop in first quarter

South Korean banks saw their net income decline sharply in the first quarter from a year earlier, but gross income rose slightly, the country’s financial watchdog said Sunday.The combined net profit of local banks was an estimated 3.5 trillion won ($3.09 billion) for the January-March period, down 1 trillion won from a year earlier but up 4.1 trillion won from the previous quarter, according to the Financial Supervisory Service.Their gross income, however, increased by around 100 billion won to

April 29, 2012

Woori sale to resume Monday

Chief regulator shows confidence in attracting competitive bidderThe Public Fund Oversight Committee will put up the state-controlled Woori Financial Group for auction again on Monday.In a statement on Sunday, the PFOC said it would attract preliminary bidders for the nation’s largest financial group by July 27 after making official notification of the sale on April 30.The new sale project comes after financial authorities failed to attract a preferred bidder for Woori Financial several times be

April 29, 2012

Seoul stocks to track eurozone developments

South Korean stocks are expected to track developments in eurozone countries and global and domestic economic data next week, local analysts said Saturday.The country's key stock index, the KOSPI, closed at 1,975.35 on Friday, a dip of 0.1 percent from a week earlier, mainly due to North Korea's geopolitical risk, and persistent eurozone woes fueled by the downgrading of Spain's long-term credit r

April 28, 2012

Shares end higher on corporate earnings

South Korean stocks closed 0.58 percent higher on Friday as positive earnings reports and overnight gains on Wall Street helped alleviate persistent eurozone concerns, analysts said. The local currency rose against the U.S. dollar.The benchmark KOSPI added 11.31 points to close at 1,975.35. Trading volume was moderate at 470 million shares worth 5.27 trillion won ($4.62 billion), with gainers outpacing losers 434 to 394.“The downgrading of Spain’s long-term credit rating by two notches, which ra

April 27, 2012

Current account surplus tops $3b

South Korea’s current account surplus widened sharply in March from the previous month, backed by strong auto and petrochemical exports, the central bank said Friday.The current account surplus reached $3.04 billion last month, up from $560 million in the black tallied in the previous month, according to the Bank of Korea. The figure is larger than the $1.33 billion surplus tallied a year earlier. Asia’s fourth-largest economy logged a surplus of $3 billion in goods trade, fueled by strong overs

April 27, 2012

Suhyup to market biggest dollar bond since 2009

National Federation of Fisheries Cooperatives, a Korean lender known as Suhyup, is marketing a five-year dollar-denominated bond of at least $300 million, according to a person familiar with the matter.Suhyup is marketing the notes to yield between 275 basis points and 285 basis points more than similar-maturity Treasuries, the person said, asking not to be identified because the details are private.Han Jae-kwon, the head of international financing of Suhyup, was not available to comment on the

April 26, 2012

Seoul shares end flat on lingering eurozone woes

South Korean stocks closed effectively unchanged Thursday as lingering eurozone concerns canceled out overnight U.S. gains, analysts said. The local currency rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index edged up just 0.10 percent, or 2.06 points, to close at 1,964.04. Trading volume was moderately heavy at 597 million shares worth 5.26 trillion won ($4.62 billion), with losers outpacing gainers 534 to 301.“Investor sentiment was hurt by lingering concerns about th

April 26, 2012

Bank lending rates rise in March: BOK

South Korean banks’ average lending rate moved up in March from the previous month mainly due to the slight rise in rates offered to businesses, the central bank said Thursday.The average interest rate on new household, corporate and public sector loans stood at 5.74 percent last month, up 0.03 percentage point from a month earlier, according to the Bank of Korea. The bank lending rate on new household loans fell 0.05 percentage point to 5.62 percent, with the interest on fresh corporate loans m

April 26, 2012

SK Hynix swings to loss in Q1

SK hynix Inc. the world's second-largest memory chipmaker, said Thursday it swung to a net loss in the first quarter due to an industry-wide slump that hurt sales and prices.   Net loss amounted to 271.2 billion won ($238.3 million) in the January-March period, a turnaround from a profit of 273.5 billion won a year earlier, the company said in a regulatory filing.   Sales dropped 14.5 percent on-y

April 26, 2012

Shares end flat on lingering eurozone woes

South Korean stocks closed nearly unchanged Wednesday on lingering eurozone concerns that offset positive U.S. corporate earnings reports, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index edged down 0.07 percent, or 1.44 points, to close at 1,961.98. Trading volume was heavy at 674 million shares worth 4.95 trillion won ($4.33 billion), with losers outpacing gainers 537 to 312.“Investor sentiment was hurt by persistent concerns surrou

April 25, 2012

Construction, job creation key to growth: BOK head

South Korea should pay closer attention to the construction sector and job creation to ensure sustainable economic growth in the face of weak exports, the country’s top central banker said Wednesday.In an economic review meeting with private economists and experts, Bank of Korea Gov. Kim Choong-soo said the domestic market’s overall contribution to national growth is on the rise. “Because construction and jobs are key to bolstering the domestic economy, the country needs to do more to revive the

April 25, 2012