Foreign bank branches’ 2011 net slips 16.2%

Foreign bank branches in South Korea saw their net fall 16.2 percent in 2011 from a year earlier due mainly to a decline in profit from stock investment and interest earnings, the financial regulator said Sunday.The combined net income of 38 foreign lenders’ local branches reached 1.23 trillion won ($1.1 billion) in 2011, compared with 1.47 trillion won in the previous year, according to preliminary data by the Financial Supervisory Service.Of the total, 33 foreign bank branches reaped profits,

Feb. 5, 2012

Hana Financial seeking to buy Korean American bank in U.S.

Los Angeles (Yonhap News) ― Hana Financial Group Inc., Korea’s No. 4 banking group, said that it is pushing to acquire a Korean American commercial bank in the United States as part of its bid to accelerate expansion abroad. The move comes as Hana Financial Group seeks to boost overseas revenue by taking over the Korea Exchange Bank, Korea’s No. 5 lender, in one of the biggest banking deals in South Korean history. “We are eying (targets) on the East and West coasts where a large number of overs

Feb. 5, 2012

Shares likely to move in narrow range

Korean stocks are expected to move in a narrow range in this week, as foreign buying may turn lackluster and pressure from the latest gains is likely to slow down a further gain by the key index, analysts said Saturday. The benchmark KOSPI closed on Friday at 1,972.34, up 0.38 percent, or 7.51 points, from one week ago. Although foreign investors propped up the KOSPI earlier this week, the key index failed to surpass the 2,000 level likely to have cheered investors. The last time the KOSPI trade

Feb. 5, 2012

Hana Financial seeking to buy Korean American bank in U.S.

   Los Angeles (Yonhap) -- Hana Financial Group Inc.,South Korea's No. 4 banking group, said Saturday that it is pushingto acquire a Korean American commercial bank in the United Statesas part of its bid to accelerate expansion abroad.   The move comes as Hana Financial Group see

Feb. 4, 2012

Analysts rule out key rate move in Q1

Korea’s central bank is expected to stand pat on its key interest rate in the first quarter as murky economic situations and a membership transition in the rate-setting committee is likely to spur a wait-and-see stance, analysts said Friday.The benchmark seven-day repo rate currently stands at 3.25 percent after the Bank of Korea froze the rate for the seventh consecutive month in January, citing increasing downside growth risks stemming from the eurozone debt crisis.The forecast contrasts with

Feb. 3, 2012

Debates growing over KDB Financial privatization

Ministry’s excluding KDB from list of public agencies ignites pros and consThe government’s recent decision to exclude KDB Financial Group from the list of public corporations has paved the way for the lender to speed up its privatization project, financial sources said.In late January, the Finance Ministry took the state-run financial group off the yearly list of public agencies.But the government’s policy, which has paved the way for KDB Financial to push for a stake sale, is inviting contradi

Feb. 3, 2012

KOSPI holds steady on mixed data

Seoul shares barely budged before the 2,000 mark level Friday as mixed economic data and weaker-than-expected earnings undermined investor sentiment. Analysts projected the benchmark KOSPI to stay above the 2,000 level next week under the scenario that the U.S. jobs indicator continues to improve. The KOSPI lost 0.6 percent to close at 1,972.34, ending a relatively stable week after a three day winning streak. The junior KOSDAQ gained 0.1 percent to 522.59. The local currency traded flat, gainin

Feb. 3, 2012

Korea’s industrial output to remain weak for some time: IBs

Major foreign investment banks predicted that South Korea’s industrial output will likely remain weak for some time, citing less demand for its products caused by the toughening external market conditions, a report showed Thursday.Korea’s industrial output grew 2.8 percent in December from a year earlier, slowing from a 5.8 percent gain in November.It shrank 0.9 percent on-month in December, marking the third straight month that production declined.Foreign IBs said that the sluggish global shipy

Feb. 2, 2012

Foreign stock buying hits record

Foreign investors snapped up a record amount of South Korean stocks on a monthly basis in January amid signs of recovery in the U.S. economy and easing global uncertainties, the financial watchdog said Thursday.Overseas investors bought a net 6.2 trillion won ($5.5 billion) of local stocks last month, compared with a net purchase of 113.4 billion won in December, according to the Financial Supervisory Service.The figure marks a new record high for monthly purchases.Overseas investors offloaded 9

Feb. 2, 2012

Foreign reserves hit 5-month high in Jan.

Korea’s foreign exchange reserves rose to a five-month high in January as the stronger euro and other non-dollar currencies increased the conversion value of those assets, the central bank said Thursday.The country’s foreign reserves reached $311.34 billion last month, up $4.94 billion from the previous month, according to the Bank of Korea. The January foreign reserves stood at the second highest level in history since the foreign reserves hit a record high $312.19 billion in August of 2011. It

Feb. 2, 2012

Shares up 1.28% on eased Europe woes

Korean stocks rose 1.28 percent Thursday as investor sentiment was buoyed by eased eurozone debt concerns, analysts said. The local currency climbed against the U.S. dollar.The benchmark Korea Composite Stock Price Index gained 25.06 points to close at 1,984.3. Trading volume was heavy at 625.8 million shares worth 8.6 trillion won ($7.7 billion) with gainers outnumbering losers 536 to 284.“Good news from Europe removed some of the biggest worries for investors,” said market analyst Kwak Jung-bo

Feb. 2, 2012

Correction of the article ‘FSC staff opposed chief on Lone Star ruling’

On the first page in its Nov. 30, 2011 edition, The Korea Herald, citing financial sources, reported that Financial Services Commission (FSC) chief Kim Seok-dong pushed ahead with the decision to impose a “mild sanction” on Lone Star Funds despite some working-level officials’ resistance.But it was not confirmed that FSC chief Kim pushed ahead with the decision and that there was resistance from working-level officials. We hereby correct the article. This correction was mediated by The Press Arb

Feb. 2, 2012

[Concerns raised over card firms’ asset jump]

Korean credit card companies’ assets have grown to alarming levels due to their proliferating competition, industry data showed Wednesday, raising the specter of a bubble.The total assets of credit card firms stood at 79.3 trillion won ($70.4 billion) as of the end of 2011, surpassing the 78.9 trillion won tallied in 2003, a year after the country’s economy was hard-hit by a credit card bubble, according to the data. Their assets dropped as low as 65 trillion won in 2008, but soon rebounded by n

Feb. 1, 2012

[Savings banks’ household loans top W10tr]

Sharp rise in credit loans in non-banking sector raises alarm bellsThe amount of loans extended by Korea’s savings banks to households topped 10 trillion won ($8.9 billion) in 2011. Preliminary data from the Financial Supervisory Service indicates that savings banks, hurt by a string of scandals last year, are moving back toward risky lending. It is the first time that the outstanding loans by savings banks to local households surpassed 10 trillion won ― a sharp increase from 7 trillion won in O

Feb. 1, 2012