Korea to beef up FX liquidity conditions

Korea plans to set up a second line of defense for its foreign currency liquidity by prompting local state-run lenders to further secure such liquidity to brace for the eurozone debt crisis, an official said Sunday.The move came as the deepening eurozone debt crisis may squeeze local banks’ foreign currency liquidity situations.“Since late last year, the country’s four state-run lenders have scurried to secure FX liquidity,” said an official at the Financial Services Commission. The four banks m

Jan. 29, 2012

Korea’s public debt nears W800tr

Analysts attribute fast rise to undertaking of numerous public infrastructure projectsKorea’s public sector debt stood at 789.4 trillion won ($702.3 billion) as of September as the government struggled to curb household borrowing, data showed on Sunday. The combined debt owed by the government and state-run enterprises marks a 9.2 percent increase from a year earlier, the Finance Ministry said. The total debt is 2.4 times the government’s 325.4 trillion won budget for this year. The figure place

Jan. 29, 2012

FSC says Hana Financial allowed to acquire KEB

Financial regulators endorsed the deal between Hana Financial Group and Lone Star Funds to trade shares of Korea Exchange Bank.Hana Financial has been allowed to take over KEB, which has been owned by the U.S.-based fund since 2003, the Financial Services Commission said Friday.The FSC ultimately has not accepted the opinion among a group of lawmakers and the KEB union that Lone Star has been ineligible to own the bank and the merger deal is invalid.In a statement, the regulator reaffirmed its e

Jan. 27, 2012

Samsung Life sanctioned for irregular practices

Regulators took disciplinary action against Samsung Life Insurance for its irregular business practices.The Financial Supervisory Service said Friday that it has decided to impose on Samsung Life 335 million won ($293,000) in fines and issue a "caution" against the company.The life insurance firm was negligent in controlling the outsourcing business for the information technology sector, the FSS said in a statement."Samsung Life also opened several cash management accounts without the consent of

Jan. 27, 2012

Gov‘t, central bank concerned about slowing export growth

South Korea’s exports will likely grow at a much slower pace in 2012 than last year as the eurozone debt problems and the global economic slowdown could weaken demand, the finance ministry and the central bank said Friday.The government needs to push for export-boosting measures tailored to each country and beef up efforts to diversify its export markets, according to a statement unveiled after the ministry and the Bank of Korea held a consultation meeting.The meeting was attended by Vice Financ

Jan. 27, 2012

Seoul shares end up 0.39% on increased foreign buying

South Korean stocks finished 0.39 percent higher on Friday, as overseas investors extended their buying spree despite the country’s weak growth data, analysts said.The local currency fell against the U.S. dollar. Extending a winning streak for a fifth consecutive session, the benchmark KOSPI rose 7.65 points to 1,964.83. Trading volume was moderate at 442 million shares worth 6.03 trillion won ($5.37 billion) with gainers leading losers 492 to 331. Even though the KOSPI has posted gains for five

Jan. 27, 2012

Hana Financial allowed to acquire KEB

Financial regulators endorsed the deal between Hana Financial Group and Lone Star Funds to trade shares of Korea Exchange Bank.Hana Financial has been allowed to take over KEB, which was owned by the U.S.-based fund since 2003, the Financial Services Commission said Friday.The FSC ultimately has not accepted the opinion among a group of lawmakers and the KEB union that Lone Star has been ineligible to own the bank and the merger deal is invalid.There have been continuous speculations that Lone S

Jan. 27, 2012

Bank loan delinquency ratio eases to two-year low in Dec.

Korean banks’ loan delinquency rate fell to its lowest level in two years in December, thanks to a massive settlement of sour loans last month, the country’s financial watchdog said Thursday.The overall delinquency rate of bank loans to companies and households reached 0.89 percent as of the end of December, down 0.54 percentage point from the previous month, according to the Financial Supervisory Service. The rate is measured based on loans that are overdue for more than one day.The December fi

Jan. 26, 2012

Ruling imminent on Lone Star’s eligibility to own bank: FSC

Financial regulators are close to ruling on Lone Star Funds’ eligibility as the biggest shareholder of Korea Exchange Bank.“Inspectors have been in the last-minute review on the issue as to whether Lone Star has been a non-financial investor (which is banned from owning a local bank),” Financial Services Commission chairman Kim Seok-dong told reporters Thursday.But Kim said the FSC has yet to decide whether to announce its stance on the U.S.-based equity fund at the panel discussion, slated for

Jan. 26, 2012

Korean investors shunned foreign equities last year: data

Korean investors cut back their holdings of foreign equities last year primarily due to the angst over global uncertainties stemming from the eurozone debt crisis, data showed Thursday. The value of foreign stocks traded by local investors totaled $2.92 billion in 2011, down 49.2 percent from the $5.75 billion tallied in the previous year, according to the data by the Korea Securities Depository. The 2011 figure is lower than the $3.3 billion and $3.1 billion tallied in 2008 and 2009, respective

Jan. 26, 2012

Workforce cuts sweep major banks

Shinhan conducts early retirement program for first time since 2009The nation’s banking sector has been striving to cut workforces amid growing worries over low cost-efficiency from the lackluster earnings outlook.Among the banks are Kookmin, Shinhan, Hana, Standard Chartered Korea and the National Agricultural Cooperative Federation. Others such as Woori and Citi will possibly follow suit.Shinhan Bank, which conducted a large-scale personnel reshuffle on Thursday, said about 250 employees will

Jan. 26, 2012

Shares up on foreign buying

Korean stocks finished 0.25 percent higher on Thursday as foreign investors continued buying local shares following the Federal Reserve’s pledge to keep interest rates low, analysts said. The local currency climbed against the U.S. dollar. The benchmark KOSPI added 4.95 points to reach 1,957.18, extending a winning streak to a fourth straight session. Trading volume was moderate at 403 million shares worth 5.46 trillion won ($4.86 billion) with gainers leading losers 511 to 286. “After the KOSPI

Jan. 26, 2012

FSC’s ruling on Lone Star imminent

Financial regulators are been in the last stage before their ruling on Lone Star Funds’ eligibility as the biggest shareholder of Korea Exchange Bank.“Inspectors are finally reviewing the issue as to whether Lone Star has been a non-financial investor (which is banned from owning a local bank),” Financial Services Commission chairman Kim Seok-dong told reporters Thursday.But Kim said the FSC has yet to decide whether to announce its stance on the U.S.-based equity fund at the panel discussion, s

Jan. 26, 2012

Credit card spending jumps to 540 trillion won in 2011

Korea’s credit card spending jumped nearly 10 percent last year despite regulators’ policy that attempted to keep the purchases through plastic at bay, data showed Wednesday. According to the Bank of Korea and the Credit Finance Association, the country’s credit card spending last year is estimated at upward of 540 trillion won ($478.5 billion) as of the end of 2011, up from 493.7 trillion won in the previous year. The 2011 figure ranked second-highest after 622 trillion won recorded in 2002, a

Jan. 25, 2012

Businesses expect hard times in H2: report

Korean businesses are bracing for difficult times in the second half of this year, showed a report on the world’s high income, leading market economies on Tuesday.The business confidence index by the Organization for Economic Cooperation and Development showed Korea’s numbers standing at 96.2, the fourth lowest among the 23 countries checked.An index reading below the benchmark 100 mark means pessimists outnumber optimists.The BSI tallied in December by the Paris-based organization also showed T

Jan. 25, 2012

Shares up on foreign buying

Korean stocks finished 0.12 percent higher Wednesday as foreign investors snapped up tech and auto exporters, but gains were trimmed by institutional selling, analysts said. The local currency rose against the U.S. dollar.After rising as much as 1.2 percent, the benchmark KOSPI gained 2.34 points to 1,952.23.Trading volume was moderate at 372 million shares worth 6.07 trillion won ($5.39 billion) with gainers leading losers 421 to 401. “Apple’s earnings surprise was a positive impact on the loca

Jan. 25, 2012