The Korea Herald

New FDI in S. Korea hits new record high in first 9 months of 2016

New foreign direct investment pledged to South Korea hit a new record high in the first nine months of the year despite rising business uncertainties at home and abroad, the government said Tuesday.Fresh FDI committed to the country in the January-September period came to $15.05 billion, up 13.4 percent from $13.27 billion a year earlier, according to the Ministry of Trade, Industry and Energy.It marked the largest amount of FDI pledged in history for a nine-month period, surpassing the earlier

Oct. 4, 2016

New FDI in S. Korea hits new record high in first 9 months of 2016

Savings banks see surge in large deposits

South Korean savings banks have seen their "large-sum" deposits nearly double over the past two years, data showed Tuesday, as people become more risk-prone amid ultra-low interest rates.According to the data by the Korea Deposit Insurance Corp., deposits of more than 50 million won ($45,300) per account at local savings banks totaled 5.08 trillion won as of end-June, up 87.3 percent from two years ago and 14.5 percent from the previous quarter.The portion of large-sum deposits to the total also

Oct. 4, 2016

AP Systems to benefit from increasing investments in flexible OLED

This is the 25th in a series of articles analyzing major companies by market capitalization traded on the tech-heavy Kosdaq market. -- Ed While pharmaceutical shares remained bearish last week, semiconductor and panel-related firms had a bullish week as foreign investors snatched up their shares on expectations about a growing OLED market. AP Systems, a Dongtan-based equipment provider for Samsung Display, was one of them, who raised about 700 million won thanks to foreign buyers on Friday. Fle

Oct. 3, 2016

AP Systems to benefit from increasing investments in flexible OLED

Probes on Hanmi Pharma likely to focus on alleged insider trading

South Korea’s financial authorities will investigate into Hanmi Pharmaceutical as to whether the company’s announcement of breaking up with a German partner on a lung cancer treatment last week was delayed intentionally for insider trading, officials said Monday. 　“Since it is a significant case causing immense losses to investors, we will look into possible insider trading,” Nam Chan-woo, an official at Korea Exchange, told The Korea Herald. “The investigation might take days, but we will come

Oct. 3, 2016

Probes on Hanmi Pharma likely to focus on alleged insider trading

Korea's bad corporate loans rise to new high

Soured loans to South Korea's conglomerates held by major banks rose to the highest level yet seen, as major shipyards and shipping companies undergo restructuring amid falling demand, data showed Monday.Nonperforming loans by major enterprises reached 19.72 trillion won ($17.87 billion) in the January-June period, growing 1.37 trillion won from the end of 2015, the Financial Supervisory Service said. It is the first time that bad corporate loans surpassed 19 trillion won since the data were fi

Oct. 3, 2016

Seoul stocks slide on Deutsche Bank concerns

South Korean stocks fell Friday as investors were spooked by the financial stability of German banking giant Deutsche Bank. The Korean won fell against the US dollar.The benchmark Korea Composite Stock Price Index declined 25.09 points, or 1.21 percent, to close at 2,043.63. Trade volume was moderate at 317 million shares worth 5.6 trillion won ($5.1 billion), with losers outnumbering gainers 654 to 169.The local stock market opened lower following a sharp decline on Wall Street. Worries mounted

Sept. 30, 2016

Internet-only bank seeks gov't approval for service

South Korea's financial regulatory body said Friday it will soon decide whether to issue a permit for the nation's first online-only bank.Two consortiums, one led by KT Corp. and the other by Kakao Corp., are preparing to enter the banking sector with their technical expertise.KT's consortium submitted an application earlier in the day for the government's approval for the establishment of K-Bank, the Financial Services Commission said.The envisioned Internet bank will be capitalized at 250 bill

Sept. 30, 2016

Internet-only bank seeks gov't approval for service

Will BOK consider negative interest rates?

The possibility of the Bank of Korea introducing negative interest rates has been raised by a lawmaker during the compilation of reports for a parliamentary audit on the central bank. Song Young-gil, a lawmaker of The Minjoo Party of Korea, revealed to the local press that the BOK signed a contract with some groups of economists in August and September to conduct research on cases in which sub-zero rates were adopted and its correlations with the fiscal soundness of financial institutions. (123

Sept. 29, 2016

Will BOK consider negative interest rates?

Bank lending rates on household loans decline in August

Bank lending rates on new household loans slightly fell from a month earlier in August and interest paid by banks on new deposits also dropped, central bank data showed Thursday.The average interest rate on fresh household loans extended by local banks came to 2.95 percent last month, down 0.01 percentage point from the previous month, according to the Bank of Korea.The August reading marked the fifth consecutive month of drop.Lower rates could prompt households to borrow more money for investme

Sept. 29, 2016

[Graphic News] 7 in 10 small businesses fail to survive past 5 years

Seven in 10 small businesses in Korea failed to survive past five years, government data showed Wednesday.Among small-scale enterprises that opened in 2008, only 29 percent remained in business in 2012, according to a report that the Small and Medium Business Administration submitted to lawmaker Lee Che-ik. It also showed that the finance and insurance sectors were the toughest for small businesses, with only 45.7 percent of them remaining open after a year.“The figure indicates how difficult co

Sept. 28, 2016

[Graphic News] 7 in 10 small businesses fail to survive past 5 years

Park stresses role of female financiers in strengthening financial sector, boosting growth

President Park Geun-hye stressed the role of female financiers in strengthening South Korea's financial sector and boosting growth Wednesday, saying their efforts are crucial to address an array of economic and social challenges facing the nation.In her video message to a gathering of women financiers in Seoul, Park also called on the participants to make the best use of their abilities to enhance the competitiveness of the high value-added service industry."I hope you will put yourselves at the

Sept. 28, 2016

Publicly placed stock funds suffer massive outflows

Publicly placed stock funds have suffered a massive capital outflow, totaling 24 trillion won ($21.9 billion) over almost four years, as investors' appetites for risky assets declined amid a tepid local stock market and increased uncertainties, industry data showed on Wednesday.According to the data compiled by the Korea Financial Investment Association (KOFIA), the outstanding deposit for publicly placed stock funds stood at 63.6 trillion won as of end-August, compared to 87.5 trillion won at t

Sept. 28, 2016

‘Growing debt at marginal households poses threat to economy’

The rapid growth in liabilities of so-called “marginal households” is posing threats to the South Korean economy and the government should come up with more measures to support them, said an opposition lawmaker on Tuesday. In a report for a parliamentary audit of the Ministry of Strategy and Finance, Lee Un-joo, a lawmaker of the main opposition The Minjoo Party of Korea, highlighted the seriousness of the rising number of heavily indebted households and possibly defaulting households, urging th

Sept. 27, 2016

‘Growing debt at marginal households poses threat to economy’

Capital firms' net jumps 25% on lower costs

Seventy three credit-specialized finance firms in South Korea, excluding credit card companies, saw their net profits jump more than 25 percent on-year in the first half of this year thanks to less loan loss costs and lower interest rates, official data showed Tuesday.Their aggregate net profits amounted to 959.7 billion won ($866 million) during the six months, up 25.8 percent from a year earlier, according to the Financial Supervisory Service.It's mainly attributable to a reduction in delinque

Sept. 27, 2016

[Kosdaq Star] InBody to benefit from aging, fare well globally

“Let’s InBody!” Names of some companies or products become verbs, if they become popular. InBody has become a new verb in the beauty and health care community, especially among young women who want to be in shape. InBody 770 research grade analysis (InBody)InBody is a Kosdaq-listed company producing a range of health care equipment and devices both for professional and home use. It is the 61st largest firm on the tech-heavy stock index with a market capitalization of 519.3 billion won ($468.2 m

Sept. 26, 2016

[Kosdaq Star] InBody to benefit from aging, fare well globally

Nomination of new KRX CEO stirs ‘parachute appointment’ controversy

The trade union of Korea Exchange, the operator of the country’s stock trading boards, is protesting the government’s nomination of a former senior official as the next CEO of their company, criticizing the outdated “revolving door” or “parachute appointment” customs of the government. On Monday, the KRX labor union held a press conference in opposition to the nomination of Jeong Chan-woo, former vice chairman of the Financial Services Commission, in front of the National Assembly in Yeouido tog

Sept. 26, 2016

Nomination of new KRX CEO stirs ‘parachute appointment’ controversy

Import volume index sharply rises in August: BOK

South Korea's imports increased sharply in August in both quantity and value, led by the machinery and chemical sectors, the central bank data showed Monday.The import volume index jumped 7.5 percent to 124.58 in the month from a year earlier, marking the largest growth since late 2014, according to the Bank of Korea. It's a 5.6 percent rise from 117.94 recorded in July.By item, the imports of machinery and chemical products rose 22.7 percent and 18.9 percent on-year, respectively.Metal, coal, p

Sept. 26, 2016

Bank holding firms' net plummets 16% on bad loans

South Korea's seven bank holding companies saw their net profits plunge more than 16 percent on-year in the first half of 2016 on increased expenses from bad loans, government data showed Monday.They reaped a total of 3.44 trillion won ($3.11 billion) on consolidated financial statements, down 16.2 percent from the first six months of 2015, according to the Financial Supervisory Service.It's largely attributable to growth in loan loss reserves with the restructuring of the shipping and shipbuild

Sept. 26, 2016

Nearly 2 trillion won of illegal transactions found through financial intelligence: report

The customs agency was able to discover 1.99 trillion won ($1.8 billion) in illegal transactions in 2015 based on tips from the Financial Intelligence Unit, a report submitted Monday to a parliamentary committee said.The FIU, established in November 2001 under the Financial Services Commission watchdog, gives what is known as suspicious transaction reports to the Korea Customs Service on cases that may be linked to money laundering, illegal foreign exchange activities and asset smuggling.Accordi

Sept. 26, 2016

Prosecutors to reapply for warrant to arrest ex-KDB chief over bribery

Prosecutors said Sunday they plan to reapply for a warrant to arrest a former head of the state-run Korea Development Bank (KDB) facing bribery charges, a day after a Seoul court rejected the initial request.Prosecutors said they will seek to formally arrest Kang Man-soo on charges of bribery and breach of trust. The 71-year-old is accused of receiving large kickbacks from Hansung Enterprise Co., a local seafood maker, since 2008. He was the country's finance minister from 2008 to 2009 under the

Sept. 25, 2016