Korean stocks finished almost unchanged on Thursday as the absence of new momentum and upcoming events such as the nuclear summit put investors on the sidelines, analysts said. The local currency rose against the U.S. dollar. After moving in a narrow range, the benchmark Korea Composite Stock Price Index ended at 2,026.12, down 0.05 percent, or 1.11 points. Trading volume was moderate at 534 million shares worth 5.22 trillion won ($4.62 billion) with losers leading gainers 569 to 265. “The big p

March 22, 2012

Foreign investment banks projected the South Korean economy would expand 3.3 percent in 2012, slowing from last year’s 3.6 percent gain, as growth momentum weakens amid uncertainties stemming from the eurozone debt crisis and slowing global economic expansion, a report showed Thursday.But the average growth projection by a total of 10 overseas investment banks is 0.1 percentage point lower than the 3.4-percent expansion estimate for Asia’s fourth-largest economy made in January by nine global in

March 22, 2012

Analysts predict improved sentiment, foreign investment to push market upEquity analysts projected Seoul shares to continue their rally for the next few months with improving business sentiment and earnings expectations, especially as capital injections continue from advanced countries.Oh Tae-dong, a strategist at Taurus Investment & Securities, forecast the benchmark KOSPI to reach up to 2,300 by the end of June, before it fluctuates more heavily in the second half due to policy risks and possi

March 22, 2012

The number of single-parent homes and single-person households grew to almost half of the country’s total family units, reflecting demographic changes that came with more people living alone and divorces, Statistics Korea said Wednesday. More than 48 percent were households with one or two occupants in 2010, up from 29.6 percent in 1995. The average number of occupants per household dropped to 2.69 for 2010, from 3.4 in 1995.“The sharp increase can be attributed to the rise in single adults and

March 21, 2012

Royal Bank of Scotland Group Plc, Britain’s biggest state-owned lender, will wind down some operations in South Korea, Indonesia and Singapore, retreating from an earlier plan to sell them.The U.K. lender is to close the cash equities, equity capital markets and corporate finance units in Korea, as well as the cash equities operations in Indonesia and Singapore, Yuk Min-hui, a spokeswoman for RBS in Hong Kong, said in an e- mailed response to queries. About 70 people will be affected, she said.R

March 21, 2012

Korean stocks finished 0.73 percent lower Wednesday as worries about China’s growth prospects and North Korea dampened investor appetite for risks, analysts said. The local currency fell against the U.S. dollar.The benchmark KOSPI declined 14.92 points to 2,027.23. Trading volume was moderate at511 million shares worth 5.1 trillion won ($4.53 billion) with losers leading gainers 542 to 273. “The local bourse underperformed against other stock markets in Asia,” said Lee Young-won, an analyst at H

March 21, 2012

Financial regulator under fire for approving only KB Kookmin, Hana-SKThe Financial Services Commission is being seen as inconsistent in its policy to approve businesses of new credit card firms.After KB Financial Group launched a stand-alone credit card firm, named KB Kookmin Card, in March 2011, other financial groups and banks have been striving to follow suit.Among them are Woori Financial, Nonghyup Financial, Korea Development Bank and Standard Chartered Bank Korea.In January, FSC chairman K

March 21, 2012

Korea’s jobless rate is expected to decline down the road, helped by a decrease in the number of job seekers, a report showed Tuesday.According to the report by the Korea Center for International Finance, Citigroup and Morgan Stanley said the country’s jobless rate surged in February as soon-to-be graduates started to search for work.The jobless rate in Asia’s fourth-largest economy stood at 4.2 percent last month, the highest level since March of 2011 when the rate reached 4.3 percent, as more

March 20, 2012

Seoul shares finished 0.24 percent lower on Tuesday as institutional investors locked in profits amid the absence of fresh upward momentum, analysts said. The local currency fell against the U.S. dollar. After briefly trading in positive territory, the benchmark KOSPI lost 4.85 points to 2,042.15. Trading volume was moderate at 533 million shares worth 5.33 trillion won ($4.75 billion) with losers leading gainers 521 to 302. “The market lacked new upward momentum ahead of the first-quarter earni

March 20, 2012

Citibank Korea has decided to shift its asset management business focus to the middle-income bracket, from its earlier target of wealthy customers.While the bank had mainly focused on private banking for customers with deposits of at least 100 million won ($87,700), its target will be expanded to those with financial assets of at least 20 million won.“Among total Korean adults, the proportion of them whose financial assets come to 20 million won is 35 percent,” Citibank Korea CEO Ha Yung-ku told

March 20, 2012

But earnings from charging service fees remain robust: FSS dataThe yearly earnings of credit card firms dropped in 2011 for the first time in three years amid financial regulators’ stricter policy on blocking reckless business expansion.According to the Financial Supervisory Service, six major credit card issuers saw their combined net profit stay at about 1.3 trillion won ($1.15 billion) in 2011, down 51 percent from 2.7 trillion won a year earlier.This was the first fall since their net profit

March 20, 2012

Korea’s financial watchdog said Monday that it will conduct stress tests on the country’s financial holding firms in a bid to shield the country from a potential financial crisis.The Financial Supervisory Service has been conducting stress tests on players in each financial sector on a quarterly basis, and pressing banks, insurers and securities firms to beef up their foreign currency liquidity and other financial health.Stress tests are usually conducted to measure how well lenders and other pl

March 19, 2012

Korean stocks closed 0.62 percent higher to a six-month high on Monday as encouraging signs in the U.S. economy and global economic optimism boosted large-cap exporters, analysts said. The local currency rose against the U.S. dollar. The benchmark KOSPI rose 2.56 points to 2,047, the highest close since Aug. 3, 2011. Trading volume was moderate at 541 million shares worth 4.74 trillion won ($4.22 billion) with losers leading gainers 434 to 385.“Foreign investors bought more local stocks in the l

March 19, 2012

Korean banks’ short-term foreign borrowing costs hit an over 3-year low in February amid eased concerns over the eurozone crisis, the financial watchdog said Monday.According to the Financial Supervisory Service, the spread on short-term foreign borrowing by 16 local lenders stood at 8.8 basis points, a drop of 23.9 basis points from January. A basis point is 0.01 percentage points.The February figure is the lowest since the watchdog began to compile related data in 2009.The spread on mid and lo

March 19, 2012

The correlation between the KOSPI and the global financial markets has been strengthening in a way that undermines overall market stability, a report has said. According to a report issued by the Korea Institute of Finance, a state-run think tank, the country’s main bourse moved increasingly in tandem with other major markets such as S&P500 and MSCI indexes. Based on an analysis of the daily and weekly changes at major indexes, the report said what is called “market synchronization” increased af

March 19, 2012

Consultation with foreign regulators emerges as key task for successKorean banks have been in competition to win eased regulations from overseas financial regulators as they tap emerging markets.Their main targets include East, Southeast and South Asian countries.“We are developing financial products which will come under deregulation from regulatory authorities in China, Vietnam and Brazil,” a senior executive at Korea Exchange Bank said.He said KEB is mapping out strategies to regain competiti

March 19, 2012