Korea’s competitiveness in the financial sector lags behind global leaders such as the United States and Britain, a poll indicated Thursday.The survey carried out on 158 chief executive officers from the country’s financial firms, assessed the local industry’s competitive rating at 67.6 of a possible 100 points, the Korea Chamber of Commerce and Industry said.The possible 100 points is a benchmark set by the KCCI to reflect the perceived competitive level of leading U.S. and British financial in

March 1, 2012

Business sentiment among Korean builders made modest gains in February after plunging to a 17-month low the previous month, a report showed Thursday.The monthly construction business sentiment index gained 4.4 points from a month before to reach 66.7, according to the report by the Construction and Economy Research Institute of Korea.An index reading below 100 indicates pessimists outnumber optimists.“The figure represents an improvement compared to January’s tally, but still highlights the seri

March 1, 2012

Korean banking groups are pumping up efforts to boost their overseas profiles amid a rapidly saturating domestic market, but going global remains an elusive dream for them due to a litany of hurdles, market watchers say. Although there is an urgent need to nurture local banking groups into global players and further promote the competitive edge of the local financial sector, the task is riddled with challenges, both internal and external.The challenges include the fragile recovery of the global

March 1, 2012

Korean department stores did brisk business during a two-month-long Korea Grand Sale event designed to attract foreign shoppers, retail industry sources said Thursday.Sources said purchases made by foreigners at Shinsegae Department Store, one of the country’s leading luxury retailers, jumped 69 percent from Jan. 9 through Feb. 29 from a year earlier.Of those gains, 70 percent of Shinsegae’s sales at its main downtown outlet were to Chinese nationals who visited the country during the period.“Th

March 1, 2012

Koreans’ overseas credit card spending climbed to a record high in 2011 as solid economic growth and the local currency’s ascent increased the number of outbound travelers, the central bank said Wednesday. Overseas credit card bills totaled $8.62 billion last year, up 18.5 percent from $7.27 billion the previous year, according to the Bank of Korea.Last year, the South Korean economy grew 3.6 percent on-year, but its growth slowed from the 6.1 percent gain the previous year.The Korean currency t

Feb. 29, 2012

South Korea will open more “bargain” gas stations in 2012 as part of efforts to ease the pain of ordinary citizens from heavy energy costs, the Finance Ministry said Wednesday.The bargain gas stations, which were launched in December, usually receive their fuel from state-run agencies at cheaper prices than other existing gas stations. The government plans to increase the number from 369 to 430 by the end of March.In a related move, the government will also unveil a comprehensive package of meas

Feb. 29, 2012

Korea’s industrial output shrank on-year for the first time in 31 months in January as its export-driven economy is under growing pressure from persistent global market uncertainties, a government report showed Wednesday.According to the report by Statistics Korea, production in the mining and manufacturing industries contracted 2 percent last month from a year earlier, compared with a 2.8 percent gain in December.This marked the first contraction since June 2009 when the output inched down 0.6

Feb. 29, 2012

Korean stocks surged 1.33 percent Wednesday, boosted by a rally in chipmakers and shipbuilders as well as broad gains in large caps, analysts said.The local currency rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index advanced 26.56 points to end at 2,030.25. Trading volume was moderate at 555 million shares worth 6.71 trillion won ($5.99 billion) with gainers leading losers 542 to 289.The market rally was fueled by hopes that the global economy is on a recovery track. U

Feb. 29, 2012

Bank and union agree on pay raise, creation of task force on other issuesStandard Chartered Bank Korea has reached a compromise with its union on a wage hike, though there are still unsettled aspects to their talks.The two sides agreed to pay raises of 2 percent and 4.1 percent for 2010 and 2011 salaries, respectively, late Tuesday.Their talks on the salary hike have continued over the past two years amid the possibility of a general strike of unionized workers.They also tentatively compromised

Feb. 29, 2012

Korea’s banking industry is dominated by the country’s top five banking groups as they fiercely vie to inflate their assets through a series of mergers and acquisitions, industry data showed Tuesday.According to the data compiled by the Financial Supervisory Service, the country’s top five players ― Woori Finance Holdings Co., KB Financial Group Inc., Hana Financial Group, Shinhan Financial Group, and National Agricultural Cooperative Federation (Nonghyup) ― accounted for 71.4 percent of the ban

Feb. 28, 2012

Korean stocks rose 0.63 percent Tuesday, boosted by a rally in chipmakers and shipbuilders, analysts said. The local currency rose against the U.S. dollar.The benchmark KOSPI advanced 12.53 points to end at 2,003.69. Trading volume was moderate at 599 million shares worth 6.26 trillion won ($5.57 billion) with decliners leading gainers 383 to 450.“Concerns over rising oil prices eased ... and chipmakers rallied on hopes that they will benefit down the road with increased market shares,” said Kim

Feb. 28, 2012

The National Tax Service said Tuesday that it has created a team of 219 officials to tackle wealthy individuals evading taxes. The team, divided into 17 lots across the country, is tasked with tracking down those suspected of illegal wealth transfers and dodging taxes by hiding funds in tax haven countries. The formation of the new team is a follow up measure after NTS last year proclaimed that 2011 will be a year of investigating tax evasion.“However they try to conceal their wealth we will tra

Feb. 28, 2012

Controversial law may pass National Assembly ahead of April electionsCredit card firms are considering filing a petition with the Constitutional Court to ban lawmakers from providing the government with the right to lower the services fees on card payments.A revision of the Credit Finance Business Act allows the government to set the rates of credit card service fees charged on retailers.Ahead of the April 11 general elections, the bill has been pushed by a dominant number of ruling and oppositi

Feb. 28, 2012

Several big-cap Brazilian petrochemical makers, resource developers and food companies are seeking to list their shares on the Korean bourse in a bid to tap a new funding source, market watchers said Tuesday.Brazilian companies setting sights on the South Korean stock market include Braskem, the largest petrochemical company in the Americas, and Brasilfoods, the world‘s third-largest meat processor.The Brazilian companies have been sounding out the possibility of share listings on the Korea Exch

Feb. 28, 2012

Korea’s national pension fund saw its investment yield tumble last year as the eurozone debt crisis and the global economic downturn increased market instability, it operator said Monday.The National Pension Service, the country’s largest stock investor, said it earned around 7.67 trillion won ($6.8 billion) last year, or a 2.31 percent investment return. That compares with a 10.39 percent return in 2010 and a 10.41 yield in 2009.The NPS said the detailed figures on its portfolio investment will

Feb. 27, 2012

HSBC Holdings, Europe's biggest bank, made a $21.9 billion profit last year, the largest among western banks, as its strength in Asia helped it cope with a euro zone debt crisis that has plunged many rivals into huge losses.HSBC, which makes more than three quarters of its pretax profit outside Euro

Feb. 27, 2012