Seoul to tighten rules on home loans amid rising household debts

South Korea will tighten its rules on loans for home purchases amid growing concerns that rising household debts could emerge as a drag on the nation's economic recovery, the government said Tuesday.The plan, announced jointly by the finance, public administration and land and construction ministries, however, calls for the government to lower acquisition tax rates for home purchases in a bid to b

March 22, 2011

Vice president of Woori Bank tapped as new head

Woori Finance Holdings Co., South Korea's No. 2 banking group, said Tuesday it picked the vice president of Woori Bank as the new chief executive officer of the group's flagship banking unit.   The state-run financial services company said its seven-member special president selection committee selected Lee Soon-woo, 61, to lead South Korea's second-largest lender for three years.   Woori Bank is c

March 22, 2011

Korean financial sector awaits 2nd ‘big bang’

With President Lee Myung-bak’s appointment of a new government financial regulator earlier this year, reform is once again a serious topic in Korea’s one-step-forward, two-steps-back financial services industry.“The most revolutionary area (of reform) will be the introduction of hedge funds,” said Ernst J. Lee, spokesperson for the Financial Services Commission, echoing recent pronouncements by hi

March 21, 2011

Seoul shares face downward pressure

South Korean stocks will trade in negative territory this week as uncertainties in Japan and the Middle East are likely to dampen investors’ appetite for risks, analysts said.After moving with great volatility, the benchmark Korea Composite Stock Price Index closed at 1,981.13 on Friday, up 25.59 points, or 1.31 percent, from one week ago.The Seoul bourse was the sole stock market in Asia that fin

March 20, 2011

Business failures hit record low

The number of South Korean corporate bankruptcies fell to a record-low level in February on the back of the country’s continued economic recovery, the central bank said Sunday.The number of companies that went bankrupt totaled 99 last month, down from 102 in the previous month, according to the Bank of Korea. The latest figure marked the smallest monthly number of business failures since the centr

March 20, 2011

Hana Daetoo Securities, Wise Asset face sanctions

The Financial Supervisory Service is set to reprimand a local asset management firm and a brokerage house for incurring huge losses by conducting allegedly reckless investments in stocks last November.The companies which faced regulatory punishment are Wise Asset and Hana Daetoo Securities. They were reportedly negligent in internal controlling, according to the FSS.Though the FSS had planned to f

March 20, 2011

G20 to discuss Japan impact on economy

Finance ministers from the Group of 20 member nations will hold a meeting in Washington, D.C. next month to discuss the economic impacts of the Japanese crisis and measures to curb volatility in global financial and commodity markets, government officials said Sunday. The meeting, slated for April 14-15, is mainly aimed at gauging the aftereffects on the energy sector amid the nuclear crisis follo

March 20, 2011

Seoul stocks open 1.19 pct lower on Japan nuke woes

South Korean stocks started 1.19 percent lower on Thursday as Japan's nuclear power plant problem rekindled investor jitters, analysts said.   The benchmark Korea Composite Stock Price Index (KOSPI) plunged 23.27 points to trade at 1,934.7 in the first 15 minutes of trading.    The deteriorating situation in Fukushima's crippled nuclear power plant, hit by last week's massive earthquake and tsunam

March 17, 2011

FSC No.2 man tapped to head top watchdog

Kwon Hyuk-se, 55, vice chairman of the Financial Services Commission, has been nominated as the new chief of the Financial Supervisory Service, the country’s top financial watchdog.  President Lee Myung-bak will be formally appointing Kwon as governor of the organization following a vote today by the members of the Financial Services Commission.Kwon would afterward be inaugurated on March 28, a co

March 15, 2011

Uncertainty over KEB deal hits Hana stocks

Hana Financial Group’s shares were weighed down by a growing uncertainty surrounding its planned acquisition of Korea Exchange Bank from U.S. Lone Star Funds.As the possibility that financial regulators will delay the finalization of whether to approve the takeover emerges, the financial group saw its stock price fall for the fourth consecutive trading session.According to the Korea Exchange, Hana

March 14, 2011

Quake clouds Seoul market with uncertainty

Financial authorities foresee limited impact on stocks and foreign exchangesThe worst earthquake in Japanese history has increased fears of a dip in the South Korean market, which is already fragile because of Middle Eastern unrest and price volatility.A 9.0-magnitude quake slammed the country’s northeast coast on Friday, killing more than 10,000 people, sending tsunami fears across the Pacific, a

March 13, 2011

FSC pressured to veto Hana-KEB deal

The nation’s financial authority has been under mounting pressure to reject the takeover deal between Hana Financial Group and U.S. Lone Star Funds on the latter’s planned sale of Korea Exchange Bank.Amid several unfavorable factors for Lone Star, including the Supreme Court’s recent ruling, the possibility that the Financial Services Commission will scrap its alleged decision to endorse the deal

March 13, 2011

4 financial groups vie for ailing savings banks

Major financial groups have been in keen competition to take over debt-saddled savings banks whose operations were suspended by regulators for liquidity woes.The Financial Services Commission has halted operations of seven savings banks since January. Among the potential buyers targeting them are KB Financial, Woori Financial, Shinhan Financial and Hana Financial.Woori Financial has become the pre

March 13, 2011

Takeover moves may flare up in S. Korea's banking sector: analysts

The comeback of former Finance Minister Kang Man-soo as the new chief of a state bank is likely to rekindle debate over creating so-called mega financial firms and swirl the banking sector in a wave of takeovers, market watchers said Sunday.South Korea's financial watchdog last week recommended Kang Man-soo, a close confidant of President Lee Myung-bak, as new chairman of the state-run KDB Financi

March 13, 2011