The government logged a cumulative fiscal surplus of 3 trillion won ($2.6 billion) in the January-October period in 2011, but predicted the account will post a deficit in the year-end fiscal settlement, the Finance Ministry said Friday.The cumulative surplus for the first 10 months in 2011 is up 12 trillion won from same time last year. The government logged a 9.9 trillion won deficit during the same time in 2010. “The surplus increase in October was largely because of the temporary increase in

Dec. 30, 2011

South Korea‘s industrial output growth slowed in November, stoking worries that the nation’s economy is losing steam due to rising global uncertainties, a government report showed Thursday.According to the report by Statistics Korea, production in the mining and manufacturing industries expanded 5.6 percent last month from a year earlier, slowing from a 6.3 percent advance in October.Industrial output also fell 0.4 percent on-month in November, marking the second straight month of contraction. I

Dec. 29, 2011

Korean stocks finished nearly unchanged on Thursday, the last trading day of the year, as gains among tech and retail shares countered bank losses, analysts said.The local currency climbed against the U.S. currency.After declining as much as 1 percent in earlier trading, the KOSPI edged up 0.03 percent, or 0.62 points, to 1,825.74. Trading volume was moderate at 335 million shares worth 3.39 trillion won ($2.94 billion) with gainers leading losers 476 to 337. “The KOSPI fell in the early morning

Dec. 29, 2011

Korea’s inflation-adjusted average wage declined this year as income grew at a slower pace than in 2010, while inflation rose sharply, data showed Wednesday.Korean worker’s real wage averaged 2.72 million won ($2,350) in the January-September period, down 3.49 percent from a year earlier, according to calculations based on data from the central bank, the labor ministry and the state-run statistics agency. Last year, the real wage grew 3.8 percent as the economy expanded 6.2 percent.The real wage

Dec. 28, 2011

South Korean stocks finished 0.92 percent lower Wednesday as investors cut high-dividend shares on the expiry of their dividends, analysts said. The local currency climbed against the U.S. dollar.The benchmark KOSPI dropped 16.9 points to 1,825.12, extending a losing streak to a third session. Trading volume was moderate at 374 million shares worth 3.26 trillion won ($2.81 billion) with losers leading gainers 499 to 317.“Institutional investors were net sellers and high-dividend shares, such as

Dec. 28, 2011

Korean brokerages said Wednesday the local stock market is likely to gain in January helped by renewed optimism over the U.S. and Chinese economy. “Expectations are building upon the possibility that the U.S. economy would manage to pull off sustainable growth next year,” said Hong Soon-pyo, analyst Daishin Securities. Despite the gloomy factors that plagued investors this year, the U.S. market is poised to benefit from improved manufacturing indicators, better outlooks for jobs and the housing

Dec. 28, 2011

KDB Financial Group has reportedly made a preliminary contract with HSBC to take over the U.K.-based bank’s retail operations in Seoul.Group chairman Kang Man-soo told reporters Tuesday that the two parties have already concluded a memorandum of understanding.Over the past few months, the state-run group’s flagship unit, Korea Development Bank, has been striving to acquire 11 retail branches of HSBC Korea.Kang had vowed to buy a local bank as part of efforts to privatize the group and beef up it

Dec. 27, 2011

South Korean stocks finished 0.79 percent lower Tuesday due to steep falls among telecom companies and brokerages and short-lived rumors on North Korea that triggered a brief plunge, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index dropped 14.68 points to 1,842.02. Trading volume was heavy at 520 million shares worth 4.18 trillion won ($3.61 billion) with losers leading gainers 573 to 257. The KOSPI tumbled 2.33 percent at 10:40 a.m.

Dec. 27, 2011

Spending by foreign travelers here went up at a brisk pace in the third quarter, helping power Korea’s gross domestic product growth, data showed Tuesday.According to the Bank of Korea, foreign nationals spent 3.4 trillion won ($2.9 billion) in the third quarter of this year, up 37.4 percent from the second quarter. Thanks to the increase in expenditure by foreign travelers, their GDP contribution ratio rose to 0.3 percent in the July-September period, up from almost zero in the previous quarter

Dec. 27, 2011

Loan delinquency rate of small, medium-sized firms reaches dangerous levelCommercial banks plan to lower interest rates on loans to small- and mid-sized enterprises as the delinquency rate in the industry has continued to rise.The ratio of overdue loans in the SME sector has grown to a critical level, even surpassing the figure from the 2008 global financial crisis.State-funded banks ― Woori Bank, Export-Import Bank of Korea and Industrial Bank of Korea ― have taken the initiative and other majo

Dec. 27, 2011

South Korean consumers’ confidence fell to a three-month low in December as nagging concerns about the eurozone debt crisis increased economic uncertainty, the central bank said Tuesday.The consumer sentiment index ― a gauge of consumers’ overall economic outlook, living conditions and future spending ― came in at 99 for December, down from 103 tallied in the previous month, according to a survey by the Bank of Korea.The December data marked the lowest level since the index reached an identical

Dec. 27, 2011

The cost of insuring South Korean lenders against default increased at a slower clip than global peers thanks to positive sovereign ratings, a report showed Tuesday.Local banks saw their credit default swap premium rise by 80-90 basis points this year from the end of last year, compared with the 130-255 basis points of U.S. lenders and 120-210 basis points of French banks, according to a report by the Korea Center for International Finance.The spread on CDS reflects the cost of hedging credit ri

Dec. 27, 2011

Korea will set up a new trading system for bonds issued by smaller firms in May next year in a bid to help them raise funds, a trade association said Monday.The envisioned electronic over-the-counter trading system will deal with debts sold by unlisted local small and medium enterprises with total assets below 500 billion won ($436 million), according to the Korea Financial Investment Association.Their debts will only be sold to “qualified institutional buyers,” or those deemed capable of suffic

Dec. 26, 2011

Korea’s major banks are expected to see their net profits slip next year amid external uncertainties and tightened regulations, data showed Monday.The combined net income of the country’s four major banking groups, including Woori Finance Holdings Co. and KB Financial Group Inc., are forecast to fall 6.62 percent on-year to 8.89 trillion won ($7.74 billion), according to 20 analysts consulted by Seoul-based financial information provider FnGuide.Top player Woori Finance is likely to post the ste

Dec. 26, 2011

Banks, brokerages, insurance firms carry out early retirement plans to cut costsKorea’s financial sector is headed for a fresh round of restructuring, with major banks pushing employees to opt for early retirement plans amid growing worries over the lackluster earnings outlook.Domestic banks, brokerages and insurance firms are taking steps to reduce their workforces as they brace for lower earnings due to the stronger regulatory supervision including a cut in commission fees and the uncertaintie

Dec. 26, 2011