KEB union to protest regulator, Lone Star

About 5,000 unionized workers of Korea Exchange Bank are scheduled to hold a day-long rally in Yeouido, Seoul on Tuesday, demanding the financial regulator take punitive action against Lone Star Funds.Their planned gathering has been regarded as a strike amid the situation under which Lone Star, convicted of manipulating stocks of KEB’s credit affiliate, may leave the country with huge gains.The KEB union is also criticizing the Financial Services Commission for having been negligent in probing

Nov. 7, 2011

Top 10 conglomerates’ market cap dips 6.88%

The combined market capitalization of South Korea’s 10 largest conglomerates and their affiliates has shrunk 6.88 percent this year from the end of last year, data showed Monday.The market cap of the 10 conglomerates, including Samsung and Hyundai Motor, totaled 636.23 trillion won ($571.12 billion) as of Nov. 3, down from 683.22 trillion won as of end-2010, according to the data by the Korea Exchange.Nine of the 10 conglomerates saw their market cap fall amid economic uncertainties in the euroz

Nov. 7, 2011

Oil may trade above $100 for long period: BOK

South Korea’s central bank forecast Monday that oil prices are likely to stay above $100 per barrel for a considerable period of time due to tight supply and a potential pick-up in speculative investment.The Bank of Korea said in a report that prices of Dubai and Brent crude are staying at a high level despite an end of political turmoil in Libya and market jitters stemming from the eurozone debt crisis.Prices of Dubai crude, South Korea’s benchmark, have been largely trading at more than $100 p

Nov. 7, 2011

Korea still faces high level of inflation: minister

South Korea is still facing a high level of inflation despite easing price hikes in recent months, the top economic policymaker said Monday, calling for more efforts to tackle structural problems to guarantee longer-term price stability.“The overall inflation level remains high and the real burden that ordinary people are feeling in their life has yet to be reduced significantly,” Finance Minister Bahk Jae-wan told an anti-inflation meeting.South Korea’s consumer prices rose 3.9 percent last mon

Nov. 7, 2011

Shares drop 0.48% on Europe woes

South Korean stocks finished 0.48 percent lower on Monday as investor sentiment was hurt by lingering uncertainty about the European debt situation, analysts said. The local currency fell against the U.S. dollar.After opening 4.54 points higher, the benchmark KOSPI lost 9.31 points to 1,919.1. Trading volume was moderate at 342.9 million shares worth 1.09 trillion won ($957.8 million) with losers slightly leading gainers 415 to 400.“Europe’s sovereign debt issue still exerts great influence on t

Nov. 7, 2011

Fitch raises Korea’s outlook to ‘positive’

Fitch Ratings on Monday raised Korea’s sovereign credit outlook to “positive” from “stable” and kept it’s A+ rating amid signs of improving economic fundamentals, sources said. The country’s sovereign credit fundamentals regained ground in terms of fiscal prudence, a strong sovereign balance sheet and foreign exchange liquidity, the sources close to the matter said.“Korea’s economic fundamentals are stronger than it was during the global financial crisis three years ago and the country has an ex

Nov. 7, 2011

KEB union to protest regulator, Lone Star

About 5,000 unionized workers of Korea Exchange Bank are scheduled to hold a day-long rally in Yeouido, Seoul on Tuesday, demanding financial regulators take punitive action against Lone Star Funds.Their planned gathering has been regarded as a strike amid the situation under which Lone Star, convicted of manipulating stocks of KEB’s credit affiliate, may leave the country with huge gains.The KEB union is also criticizing the Financial Services Commission for having been negligent in probing sha

Nov. 7, 2011

Uncertainty boosts short-term capital

Despite low rates, time deposits at banks rise sharply in OctoberThe growing uncertainties in the global financial market has resulted in a sharp rise in Korea’s short-term capital seeking new investment channels, data showed on Monday. The increased liquidity, which is yet to be invested in appropriate vehicles, comes together with a ballooning of time deposits at major banks despite low interest rates. The twin growth of short-terms funds and outstanding term deposits underscores the dearth of

Nov. 7, 2011

Seoul shares expected to gain ground this week

South Korean stocks are forecast to move upward next week, analysts said Saturday, with the Greek prime minister’s latest victory in a confidence vote and an upcoming meeting among European financial ministers likely to embolden investor sentiment. The benchmark KOSPI closed at 1,928.41 on Friday, down 1.07 points, or 0.06 percent, from one week ago. Reports about MF Global Holdings’ filing for bankruptcy protection and an announcement from Greek Prime Minister George Papandreou that the trouble

Nov. 6, 2011

Korea’s per capita income to reach new high in 2011

South Korea’s per capita income is expected to reach a record high this year, surpassing $20,000 for the second consecutive year, a government official said Sunday.The official from the Ministry of Strategy and Finance said the country’s per capita gross national income will likely reach between $23,500-$24,000.The amount marks over 13 percent growth from last year’s $20,759.The International Monetary Fund predicted a similar level of growth for South Korea’s economy in an earlier report.In its

Nov. 6, 2011

Private loan interest rate soars: BOK

The personal loan interest rate has risen by more than twice as much as the rates paid on savings and bank bonds, data showed Sunday.According to industry and Bank of Korea data, interest rates paid on funds gained by banks through savings, installment deposits and bank bonds came in at 3.1 percent at the end of September, up 0.25 percentage point from the end of last year.While changes in interest rates on loans are customarily linked to changes in rates on interest given by banks, the pattern

Nov. 6, 2011

Hana-KEB merger in doubt despite ruling

Regulator’s action against Lone Star Funds raises legal issuesHana Financial Group continues to face a hurdle in its plan to acquire Korea Exchange Bank from Lone Star Funds despite a court’s ruling that the U.S.-based equity fund engaged in stock manipulation.Over the past month, the Financial Services Commission has been in the preliminary stages of ordering Lone Star to sell a large portion of its stake in KEB following the court’s verdict on Oct. 6, which may pave the way for Hana Financial

Nov. 6, 2011

Seoul shares soar 3.13% on eased Greek woes

South Korean stocks surged 3.13 percent on Friday, boosted by hopes Greece will abandon a controversial national vote on terms of a eurozone bailout package, analysts said. The local currency shot up against the U.S. dollar.The benchmark Korea Composite Stock Price Index jumped 58.45 points to 1,928.41. Trading volume was heavy at 461.5 million shares worth 7.1 trillion won ($6.4 billion), with gainers far outnumbering losers 706 to 147. “The referendum called by Greek Prime Minister George Papa

Nov. 4, 2011

IBK Q3 net rises 12%

South Korea’s state-run Industrial Bank of Korea said Friday that its third-quarter earnings rose 12.5 percent from a year earlier due to an increase in interest income. Net income amounted to 410.3 billion won ($369.3 million) in the July-September period, compared with 366.3 billion won the previous year, the state-run bank, which mostly caters to small and medium enterprises, said in a regulatory filing.Compared with three months earlier, net profit declined 14.7 percent as the bank recorded

Nov. 4, 2011

New agency to protect financial comsumers

Korea’s two financial regulatory bodies agreed to set up an agency aimed at protecting consumers after ironing out many of their differences. The new agency will be established early next year.The Financial Services Commission, whose primary role is to set financial policies, and the Financial Supervisory Service, an agency authorized to inspect and punish financial firms that fail to protect consumers, were locked in a battle for influence over the new organization.FSC officials said on Friday

Nov. 4, 2011

Korea should focus on economic stability: report

South Korea needs to frame its macroeconomic policy in order to stabilize overall economic situations as the country still faces high global uncertainties that could impede its recovery and growth, the Finance Ministry said Thursday.A slowing private-sector recovery, deepening fiscal debt problems in advanced nations and belt-tightening by emerging countries will also likely combine to further slow global economic growth, the ministry said.“The global economy is expected to stay on a low-growth

Nov. 3, 2011

N.K. economy shrinks for 2nd year: BOK

The North Korean economy contracted for the second straight year in 2010 due to tougher international sanctions and sluggish agricultural production, the South Korean central bank estimated Thursday.The Bank of Korea estimated that the communist country’s economy shrank 0.5 percent on-year last year, compared with a 0.9 percent contraction in 2009. The data stood in sharp contrast to the 6.2 percent expansion of the South Korean economy in 2010.The North Korean economy grew 3.1 percent in 2008 o

Nov. 3, 2011

SC First Bank mulls 24-hour service branches

CEO Hill promotes reform to compete with local commercial banksStandard Chartered First Bank is pushing for operational reforms to enhance its competitiveness in the banking sector after suffering from months of striking by its unionized staff. Bank CEO Richard Hill disclosed its intention to open several branches which offer offline and online services 24 hours a day and seven days a week. These would be the first of their kind in the local financial sector.Meeting reporters in New York on Wedn

Nov. 3, 2011

SC First Bank mulls offering 24-hour service

CEO Hill promotes reform to compete with local commercial banksStandard Chartered First Bank Korea is considering opening several branches which offer offline and online services 24 hours a day and seven days a week, the first of their kind in the local financial sector.For the plan, the bank is reportedly benchmarking the case of a Singapore unit of the U.K.-based Standard Chartered Group.“In a shopping mall in Singapore, there is an SC bank branch providing customers with services till late at

Nov. 3, 2011

5 credit card firms face security audit

The Financial Supervisory Service is set to conduct inquiries into five credit card companies to monitor their cyber security measures against possible leaks of customer information.The firms are BC Card, Shinhan Card, Hyundai Card, KB Kookmin Card, Lotte Card.BC Card has been scheduled to be under yearly regulatory probe and the remaining four issuers will be subject to extraordinary scrutiny in the wake of the frequent financial accidents in the credit card sector.The FSS has already completed

Nov. 3, 2011