Bank loan ratio for smaller firms at record low

The ratio of bank loans to smaller firms slumped to a historic low while that for large-cap companies continued to rise, data showed Wednesday, showing a widening gap between funding circumstances for smaller firms and large businesses.The portion of bank loans to smaller firms reached 78.7 percent as of the end of November, down from 88.8 percent in January 2007, according to data by the Bank of Korea. In contrast, the ratio of loans extended to large-cap firms nearly doubled to 21.3 percent fr

Feb. 8, 2012

Consumption slowdown clouds economic outlook

Department store sales drop 4.2 percent in January, the lowest in 37 monthsKorea’s private consumption is declining rapidly, data showed Wednesday, amid sluggish sentiment sparked by the eurozone fiscal debt crisis. Local consumers are tightening their belts to grapple with a slowing economy, which in turn deals a blow to manufacturers and big-ticket item sales. Sales at department stores slowed and imports of goods also dropped. Private consumption fell 0.4 percent in the October-December perio

Feb. 8, 2012

Woori eyes 2012 launch of card unit

Woori Financial pinning hopes on lawmakers’ push while government takes wait-and-see stanceWoori Financial Group, which aims to launch a stand-alone credit card operation, is pinning hopes on an early law revision so that its goal can be attained this year.Though the financial group has sought to spin off a credit card unit from Woori Bank for about a year, financial regulators are taking a wait-and-see or skeptical position over the move amid heated competition in the card industry.But a revisi

Feb. 8, 2012

Nonlife insurers mull cuts in car insurance premiums

Buoyed by stellar performances last year, Korean nonlife insurers are considering cutting their car insurance premiums amid worries over high inflation, industry sources said Wednesday.Industry leader Samsung Fire & Marine Insurance Co. recently sounded the Financial Supervisory Service, the local financial regulator, on its intention to slash insurance premiums by around 2 percent, according to the sources.The FSS has begun looking into the possibility, examining other non-life insurers’ loss r

Feb. 8, 2012

Korea prioritizes inflation amid growth slowdown

The Finance Ministry on Tuesday reiterated that the inflation fight is its top priority for the coming months, even as it sees growth slowing further from external risks and weak consumer sentiment.Its report to the National Assembly said it aims to keep inflation in the low 3-percent range, a challenging task given the worries about higher oil prices that are driving price expectations higher.“Price stability is our policy priority for this year also. Measures will target making the low-income

Feb. 7, 2012

BOK could resolve household debt: Goldman Sachs

Moody’s says Korean banks vulnerable to eurozone debt crisisA global investment bank cited the central bank’s monetary policy as a key solution to resolving the growing worries over the record-high household debt.Goldman Sachs predicted that a soft landing of Korea’s household debt will be possible according to the Bank of Korea’s interest rate-setting.Its optimistic view could be contradictory to the prevailing anxiety in the market that household debt is a ticking time-bomb as outstanding cons

Feb. 7, 2012

Finance chief cautious on new tax proposal on stock profit

Finance Minister Bahk Jae-wan said Tuesday that the government is cautious about the ruling party’s proposal to impose a new capital gains tax on profits from stock transactions, out of concern over potential negative impact on foreign investments in the local bourse. The minister made the remark at a parliamentary meeting as the ruling party is pushing to revise the current taxation system to impose taxes on stock gains and increase taxes on the wealthy as part of efforts to woo voters unhappy

Feb. 7, 2012

Shares gain on eased Greece woes

Korean stocks closed 0.43 percent higher Tuesday on eased concerns over Greek debt problems, analysts said. The local currency gained against the U.S. dollar.Moving in a tight range, the benchmark Korea Composite Stock Price Index gained 8.46 points to 1,981.59. Trading volume was heavy at 532.5 million shares worth 6.50 trillion won ($5.81 billion) with gainers outstripping losers 447 to 393. “Investors are taking a wait-and-see approach. Investor angst was offset by anticipation that the debt

Feb. 7, 2012

Card firms to cut rates on overdue payments

Companies’ decision reflects government move to cope with delinquent loansCredit card companies decided to lower the interest rates on customers’ overdue payments by a maximum of 1 percentage point.Their move comes after the Financial Supervisory Service issued a warning against reckless credit card loans with high interest rates.Major firms ― Shinhan Card, KB Kookmin Card, Samsung Card, Lotte Card and Hana SK Card ― will slash the extra rates on delinquent loans.Shinhan Card, the nation’s No. 1

Feb. 7, 2012

BOK to freeze key interest rate in Feb.: poll

Korea’s central bank is expected to keep its key interest rate steady for the eighth straight month in February due to persistent inflation concerns and downside risks to the domestic economy, a poll showed Tuesday. All 14 analysts forecast that the Bank of Korea will freeze the benchmark 7-day repo rate at 3.25 percent on Thursday, according to the survey by Yonhap Infomax, the financial news arm of Yonhap News Agency. Still-elevated inflationary pressure and looming external uncertainties will

Feb. 7, 2012

Eximbank to support W70tr for local exporters

The state-run Export-Import Bank of Korea plans to support a record 70 trillion won ($63 billion) for local exporters via loans and assurances this year as part of its drive to boost trade, its chief said Monday.“Eximbank aims to provide financing and assurances worth 70 trillion won this year in a bid to help the nation’s annual trade volume exceed the $2-trillion mark,” Eximbank President and Chief Executive Officer Kim Yong-hwan told reporters.Kim’s remarks come after South Korea’s trade volu

Feb. 6, 2012

Savings-type insurance market grows sharply

The size of Korea’s savings-type insurance market expanded more than 30 percent over the last two years, data showed Monday, as local insurers vied to sell such products that guarantee high commissions.Savings-type insurance, which includes annuity insurance and variable annuity insurance, refers to a policy designed to safeguard retirement income or help boost financial assets for senior citizens rather than cover health care expenditures and other costs.The savings-type insurance market in Asi

Feb. 6, 2012

Koreans’ mobile banking use doubles in 2011

The use of mobile banking in South Korea more than doubled in 2011 from a year ago on the back of the ballooning local smartphone user population, the central bank said Monday.Mobile banking transactions reached an average of 7.67 million per day in 2011, growing more than two fold from 3.74 million in the previous year, according to the Bank of Korea.The daily transaction amount surged 57 percent on-year to 652.6 billion won ($587.6 million), while the number of mobile banking users jumped 50.6

Feb. 6, 2012

Shares inch up on better U.S. data

Korean stocks closed a tad higher Monday, lifted by improved U.S. economic data, but the gains were limited on renewed concern over Greece’s default, analysts said. The local currency fell against the U.S. dollar. The benchmark Korea Composite Stock Price Index gained 0.79 points, or 0.04 percent, to finish at 1,973.13. Trading volume was heavy at 515.3 million shares worth 7.21 trillion won ($6.43 billion) with decliners outpacing gainers 433 to 400. The KOSPI opened 1.10 percent higher but los

Feb. 6, 2012

Retailers move to boycott Shinhan Card

About 1 million stores participate in protest to demand reduction of service chargesA million retailers nationwide are set to boycott payment via Shinhan Card from Feb. 20.Their protest against the nation’s largest credit card firm is due to the card industry’s lukewarm attitude toward cutting settlement service charges on retailers.Members of the retailer association notified consumers on Monday that they will not accept Shinhan Card for payment of goods.The retailers reportedly demanded cuttin

Feb. 6, 2012

Former tax official indicted on charges of helping SK Group evade

A convicted former senior tax official has been additionally indicted on charges of receiving a massive amount of money in return for helping South Korea's third-largest industrial conglomerate SK Group evade tax audits, prosecutors said Monday. Lee Hee-wan, a former director at the Seoul Regional T

Feb. 6, 2012