Market cap of China-related firms shrink 11% due to THAAD risks

The market values of Korean firms eyeing the Chinese market has shrank significantly, as their stock prices have been falling for the past two months since the South Korean government announced the deployment of a US missile defense system on the Korean Peninsula. According to the Korea Exchange on Wednesday, the market values of 10 major businesses exporting products to China or operating in the market have shed nearly 7 trillion won ($6.42 billion) in total for the past two months. The aggrega

Sept. 7, 2016

KDB issues $1b global bonds at lowest borrowing rates

Korea Development Bank said Wednesday the state-run financier issued $1 billion worth of global bonds at all-time low borrowing rates, thanks to a recent upgrade in Korea’s sovereign credit rating. The country’s largest public financier issued three-year and 10-year bonds at rates 0.06 to 0.09 percent lower than the interest rates of similar bonds issued by the KDB and the Industrial bank of Korea. The rates are 0.04 to 0.17 percent lower than those of Canadian and Australian bonds, the bank sai

Sept. 7, 2016

Hanjin’s other companies have debt problems, too

Hanjin Group, the parent company of the near-bankrupt container line Hanjin Shipping, has some serious debt problems at its other companies, data showed Monday. According to chaebul.com, an online corporate research firm, one-third of the group’s 38 units, or 12 companies, are “zombies,” which means they have paid-in capital already impaired by losses or are unable to cover interest costs with what they earn. The group as a whole had debt at 450 percent of its total equity on average for the pas

Sept. 6, 2016

Financial authorities under fire for belated measures on Hanjin

South Korean financial authorities are drawing criticism from the market for their inability to pre-emptively deal and manage repercussions in the logistics sector following the fallout of Hanjin Shipping.As of early this week, about 70 percent of more than 120 ships run by Hanjin have been blocked, stranded and denied entry at major ports around the world, according to the Korea Shipowners’ Association. Yim Jong-yong (left), chairman of the Financial Services Commission, and Maritime Affairs Mi

Sept. 6, 2016

South Korean households see healthcare burden growing faster than income growth

South Korean households’ expenditure on healthcare rose faster than the income growth in the last 10 years, a trend that is very likely to accelerate as the country’s population is rapidly aging. According to a survey by Statistics Korea on Sunday, the average monthly income of a household was 4,306,412 won ($3,857) in the second quarter in 2016, increasing by 45.2 percent from 2,965,551 won in the same period in 2006. Meanwhile, healthcare expenditure rose greater than the income growth, with e

Sept. 6, 2016

Insurance scam figures at record high: FSS

Fraudulent insurance claims caught by South Korea's authorities hit a record high in the first half of this year amid a tougher crackdown, data showed Tuesday.The related authorities caught insurance fraud cases worth 348 billion won ($314 million) during the period, up 12.1 percent from a year earlier, according to the data compiled by the Financial Supervisory Service.The figure marks an all-time high in the biannual statistics.But the number of scammers caught declined 2.2 percent to 40,054.T

Sept. 6, 2016

[Kosdaq Star] Naturalendo Tech scrambles to rebuild global reputation

After being hit by a fake herb scandal last year, Naturalendo Tech aims to rebuild its reputation from scratch. The Kosdaq-listed firm lost more than 1 trillion won ($904 million) in market capitalization last year, when the Korea Consumer Agency claimed it had detected fake ingredients in the firm’s best-selling product, EstroG-100. The product was selling in countries including the United States, Canada and Australia. The agency claimed nearly 90 percent of similar products in the domestic mar

Sept. 5, 2016

Hanjin Shipping files for US bankruptcy protection

Korea’s largest shipping company Hanjin Shipping has filed for bankruptcy protection in the US, with more than 70 of the firm’s ships blocked, stranded and denied entry at major ports around the world and its creditors taking control of some of its assets, Under the chapter 15 bankruptcy code, Hanjin creditors will not be able to seize the company’s overseas assets including in the US. However, the jurisdiction of the US court protection does not extend to South Korea, where a Seoul court has be

Sept. 5, 2016

Seoul to allow unprofitable firms to go public

South Korea’s financial regulator said Monday it will revise the stock market listing requirements to allow unprofitable but promising companies to go public. Calling it the “Tesla qualification,” Yim Jong-yong, chairman of the Financial Services Commission, said the regulator will add a new qualification gauging the growth potential of unlisted firms, besides looking at existing financial qualifications including sales and profits. “The global electric vehicle maker Tesla could finance funds th

Sept. 5, 2016

Korea's FX reserves up in August

South Korea's foreign exchange reserves rose slightly from a month earlier in August due to increased gains from investment in foreign assets and an increase in the dollar-converted value of non-dollar currencies, central bank data showed Monday.As of the end of August, the country's foreign exchange reserves came to $375.46 billion, up $4.08 billion from the previous month, the Bank of Korea said in a statement.Foreign exchange reserves consist of securities and deposits denominated in overseas

Sept. 5, 2016

[Monitor] Government aims to reduce public firms’ debt ratio to 150%

The government plans to reduce the debt ratio of public corporations to around 150 percent by 2020 as part of efforts to improve the balance sheets of state-funded agencies. Under a long-term financial management plan, 39 public firms, including the Korea Gas Corp., are required to maintain their debt-to-total asset ratio at an average 151 percent from the current 194 percent in the coming five years, according to the Finance Ministry.

Sept. 2, 2016

Hanjin to set tone for future corporate rescues

From Busan to Spain and the US, Hanjin Shipping’s vessels were arrested by debtors and denied access to ports for overdue operation fees Thursday, prompting frightened cargo owners to cancel contracts and request their freight back. Just a couple of months ago, few in Korea would have thought that Hanjin, Korea’s largest container carrier, would fall like this.  Freight containers carrying the logo of Hanjin Shipping are stacked at Busan Port on Thursday. (Yonhap)Moving a big chunk of Korea’s ex

Sept. 2, 2016

Banks dented by corporate restructuring

The ongoing restructuring activities in the Korean shipbuilding and shipping industries have impacted local banks, pushing them into the red in the second quarter of this year, the country’s financial watchdog said on Thursday. According to the data by the Financial Supervisory Service, the total net profit of 17 banks, including commercial banks, provincial banks and state-owned banks, posted a 400 billion won deficit in the April – June period, largely due to losses at the government-run banks

Sept. 1, 2016

[Photo News] Shinhan's anniversary

Shinhan Financial Group Chairman and CEO Han Dong-woo delivers a speech at a ceremony held at the firm’s headquarters in Seoul on Thursday to mark the 15th anniversary of the group’s foundation. He outlined five key strategies for a new era of growth, including transitioning to the digital era, globalization and proactive risk management. (Shinhan Financial Group)

Sept. 1, 2016

[Monitor] Current account surplus narrows in July

South Korea’s current account surplus hit its lowest point in three months in July, central bank data showed Thursday. The current account surplus reached $8.71 billion in July, compared to $12.06 billion in June, according to the preliminary data from the Bank of Korea.

Sept. 1, 2016

Korea appoints World Bank specialist as head of FATF training institute

Korea has appointed a World Bank specialist as the director of a new educational institute on anti-money laundering that will open later this month, announced the Financial Intelligence Unit under the Financial Services Commission on Thursday. Kevin Stephenson, a senior specialist on the financial sector at the World Bank, will head the Training and Research Institute called TREIN under the Financial Action Task Force. It is slated for an official launch at Busan International Finance Center on

Sept. 1, 2016

‘Korea to safeguard logistics from Hanjin fallout’

South Korea’s Finance Minister Yoo Il-ho said the government will deal with companies under creditor-led restructuring programs by the book and those that do not come up with reasonable self-rescue plans will not receive any state support.“The government will strictly and rapidly execute its restructuring policy on the principle that debt-laden companies share the burden and try to find solutions to stay afloat and regain competitiveness,” Yoo said in an industry-related ministerial meeting Wedn

Aug. 31, 2016