Fee war rages among Korean brokers after wrap account stampede

Korean investors were crushed by the market crash that swept the world three years ago. The Seoul stock exchange’s KOSPI Index lost 41 percent during 2008, while the most popular mutual fund fell 39 percent.High-net-worth stock pickers looking for better performance have found Seo Jae-hyeong.Seo’s Korea Creative Investment advisory firm works with brokerages to sell Koreans “wrap accounts” ― packa

April 7, 2011

Shinhan CEO targets Asian top 10

Shinhan CEO targets Asian top 10By Kim Yon-seShinhan Bank president & CEO Suh Jin-won pledged Wednesday to achieve the goal of making the lender one of the top 10 commercial banks in Asia and No. 1 in Korea within four years.Suh, who took office 100 days ago, unveiled the bank’s mid- and long-term targets during his meeting with reporters in downtown Seoul.“I will take the role of initiating chang

April 7, 2011

Inflation picture worsens as food prices rise

Leading processed food companies and franchises have upped their prices in the past week, adding to the already-high inflationary pressure.The industry-wide increase arrived following an almost 10 percent price hike by sugar manufacturers in December. The industry’s No. 4 DongA One said it will raise wholesale prices of flour by 8.6 percent starting Tuesday.Haiti Confectionary & Foods increased wh

April 5, 2011

FSS faces hurdles in Lone Star ruling

Some lawyers claim the U.S. fund should not have been allowed to buy KEBFinancial regulators face a bumpy road in their scheduled ruling on whether Lone Star Funds was eligible to acquire Korea Exchange Bank in 2003.Over the past few weeks, the Financial Supervisory Service asked 10 major law firms to make legal reviews on the U.S. buyout fund’s eligibility as KEB’s biggest shareholder.At least on

April 5, 2011

Kookmin won’t sell parent shares to market

The head of KB Financial Group Inc. said Monday that its flagship banking unit plans not to unload shares in the parent group in the local market in a bid to minimize its market impact.Korea’s top lender, Kookmin Bank, bought about 21 percent stake in its parent, KB Financial Group, in September 2008 when the group was created. By banking law, the bank is required to unload around 9 percent stake

April 4, 2011

Won climbs to 30-month high

Korea’s won climbed to a 30-month high and bonds declined after the U.S. jobless rate unexpectedly dropped to a two-year low in March, spurring optimism that a global recovery is gaining momentum.Overseas investors increased their holdings of Korean shares for a 13th day, the longest streak of net purchases this year. The nation’s foreign-exchange reserves rose to $298.62 billion at the end of Mar

April 4, 2011

Banks’ overseas earnings rise 29%

Korean banks saw total earnings from their overseas operations jump 28.8 percent last year from a year earlier thanks to an increase in interest income, the financial regulator said Monday. Net income by 92 overseas units and branches operated by 11 local banks stood at $369.1 million in 2010, compared with $286.4 million in the previous year, according to the Financial Supervisory Service (FSS).T

April 4, 2011

Foreigners cut local shareholdings in March

Foreign investors cut holdings of local shares for the second straight month in March amid worries over political unrest in the Middle East region, the financial regulator said Monday.Foreigners sold a net 772 billion won ($709.4 million) of Korea’s listed shares last month, further reducing local share holdings following their net selling of 3.72 trillion won in February, the Financial Supervisor

April 4, 2011

KDIC to sell suspended savings banks: chief

Korea’s deposit insurance agency said Monday it plans to put most of the seven suspended savings banks up for sale from as early as this month as part of the country’s widening efforts to revamp the ailing financial segment.In February, the country’s financial regulator Financial Services Commission (FSC) suspended the savings banks, including top player Busan Savings Bank and its four affiliates,

April 4, 2011

Regulator to control credit card spending

Package of measures against surging household debts to be unveiled SundayFinancial authorities plan to induce the public to control their use of credit cards to address rising household debts.Instead, the usage of check cards ― which refer to cards containing functions of both credit and debit cards ― will likely be promoted.The policy, aimed at easing the financial burden of debt-saddled low- and

April 4, 2011

Taekwang fined for irregular support for affiliate

The Fair Trade Commission said Sunday it fined nine Taekwang Group companies 4.6 billion won ($4.23 million) for illegally supporting one of its affiliates. The watchdog referred three of them to the prosecution for investigation. It is the first punishment of conglomerates since the FTC pledged last week to toughen its crackdown on irregular inter-affiliate transactions which conglomerates have o

April 3, 2011

BOK challenges FSS over probe right

Dispute resurfaces over the central bank’s supervisory authority A fresh dispute is brewing over the mandate of financial supervision as the Bank of Korea is stepping up its demand for the right to inquire into financial institutions independently.The primary authority to investigate banks, securities, insurance and other financial companies currently belongs to the Financial Supervisory Service.

April 3, 2011

Listed firms’ net jumps 73 percent in 2010

Korea’s listed companies saw their earnings surge 73 percent on-year in 2010 thanks to a recovery in domestic demand and robust exports, a report showed Sunday.The combined net profit of 573 firms listed on the main bourse came to 55.8 trillion won ($51 billion) last year, up from 32.2 trillion won the previous year, according to the report jointly compiled by the Korea Exchange and the Korea List

April 3, 2011

Regulator sets April date for decision on Lone Star

Korea’s top financial regulator has said the watchdog will push to make a final decision this month over whether Lone Star Funds has the legal right to be the top shareholder of Korea Exchange Bank.Financial Services Commission Chairman Kim Seok-dong said in a meeting with reporters, “We are working to make a final decision on Lone Star’s eligibility in April.” The regulator is expected to deliber

April 3, 2011

Debts owed by gov't, individuals, companies hit record high in 2010

   Debts owed by the government, individuals and companies in South Korea reached a record high last year, data showed on Sunday, raising concerns that the high level of debts could derail the economy off the recovery track.   According to data compiled by the Bank of Korea, their interest-bearing debts reached 2,586 trillion won ($2.37 trillion) at the end of last year, up 7.4 percent from 2,408

April 3, 2011

S. Korean inflation expected to hover above 4 percent

   South Korea's inflation is expected to remain above the 4 percent range in April due to higher oil prices and other external shocks such as the fallout from Japan's nuclear crisis, experts said Sunday.   The country's consumer prices rose to a 29-month high last month and were far above the central bank's target, stoking expectation that the nation's central bank may raise its key rate soon.  

April 3, 2011