Foreign securities firms cut S. Korean operations

[THE INVESTOR] Foreign securities companies are reducing their South Korean operations as potential profitability falls. According to local financial industry sources, the number of executives at foreign securities firms’ local operations fell from 42 in 2011 to 22 by March this year. The number of employees also fell from 904 to 735 over the same period. The workforce cut, which had been focused on nonessential departments, has now spread to sales and others linked directly to business operatio

July 25, 2016

Foreigners net-buy 3 tln won of Korean stocks in July

Foreign traders have favored South Korean tech shares recently, while turning their backs on the automobile sector, data showed Monday.Foreigners scooped up a net 2.96 trillion won ($2.6 billion) worth of local stocks in the first three weeks of July alone, buttressing the benchmark Korea Composite Stock Price Index, according to the Korea Exchange.Ditching the traditional pattern of a "balanced" portfolio, they focused buying on tech, steel and materials shares.They net-purchased 631.6 billion

July 25, 2016

Korea's terms of trade improve in June

South Korea's terms of trade improved from a year earlier in June due to bigger declines in import prices compared to drops in export prices, central bank data showed Monday.The terms of trade index for products came to 100.86 last month, up 0.8 percent from a year earlier, according to preliminary data from the Bank of Korea.The index measures the amount of imports a country can purchase for each unit of its exports, showing how the country's exports are doing in comparison with those of others

July 25, 2016

Chinese investor may win bid for ING's Korea unit

A Chinese buyer is expected to win the bid to acquire South Korea's fifth-largest life insurer by assets, industry sources said Monday.MBK Partners, a South Korean private equity fund, plans to begin the formal bidding process early next month to sell off ING Life Korea. A deal that could fetch around $3 billion."Preliminary due diligence that started in June has almost finished," a source said. "A preferred bidder is scheduled to be selected through the bidding to open in early August."It's sha

July 25, 2016

Korea's ranking in stock market cap rises to 14th

South Korean stock market capitalization has grown 2.3 percent this year to rank as the world's 14th despite a host of challenges at home and abroad, data showed Monday.The combined market cap of local firms listed on the main and secondary bourse came to $1.259 trillion at the end of June, up from $1.231 trillion recorded half a year earlier, according to the Korea Exchange. (Yonhap)The increase pushed up South Korea's ranking by one notch to 14th in stock market value.The global stock market c

July 25, 2016

[EQUITIES] Shinhan Investment forecasts Hotel Shilla’s Q3 profit to jump 1312% to W39.5b

[THE INVESTOR] Shinhan Investment forecast Hotel Shilla’s second-half profit to rise on improving profit margins in both the hotel and duty-free business in the second half of the year. Third quarter operating profit was forecast to rise 1312 percent on-year to 39.5 billion won (US$347.16 million) on a consolidated basis, to further increase by 173 percent to 30.8 billion won. Rising tourist volume will contribute to the increase, Shinhan said. As a further catalyst, the license of rivals in the

July 25, 2016

[EQUITIES] NH Investment & Securities sees SK Innovation’s Q3 profit declining 42%

[THE INVESTOR] NH Investment said on July 25 that SK Innovation’s third-quarter operating profit will fall 42.1 percent on-quarter to 647.9 billion won (US$569.43 million). The figure, however, will reflect a 78 percent increase from the same period in 2015.The forecast was based on speculation that the average refinery margins will fall, NH said. In the second quarter, the South Korean energy firm posted 1.11 trillion won of operating profit, exceeding 1 trillion won in quarterly profit for the

July 25, 2016

Longer trading hours to start Aug. 1

South Korea will extend its trading hours for its equities, derivatives, gold futures and foreign exchange markets from Aug. 1 to boost its financial market status in line with the Morgan Stanley Capital International standards.The Korea Exchange, the country’s quasi-independent stock market operator, said Sunday that the stock and bullion markets’ trading hours will be extended by 30 minutes, enabling investors to buy and sell them between 9 a.m. and 3:30 p.m. Foreign exchange brokers will also

July 24, 2016

Korea’s Supreme Court dismisses suit filed by ex-KEB shareholders against Lone Star

[THE INVESTOR] A lawsuit filed by minority shareholders of KEB Hana Bank against Lone Star Funds was dismissed by South Korea’s highest court. A group of shareholders including a former lawmaker and bank union leader had filed a suit to cancel dividend payouts worth 280 billion won (US$244.97 million) made out to the US private equity fund. In 2011, Lone Star pocketed the dividends from its 51 percent stake in Korea Exchange Bank. The amount was decided at a shareholders meeting in March that ye

July 22, 2016

State-run banks to receive W1.4tr injection

[THE INVESTOR] The government will inject 1.4 trillion won (US$1.23 billion) into state-run banks closely involved in shipbuilding and shipping industries’ restructuring. According to the supplementary budget plans approved by the Cabinet on July 22, the Korea Development Bank will see injection of 400 billion won, and the Export-Import Bank of Korea will get 1 trillion won. The government estimates that state-run banks, including KEXIM and KDB, need to secure as much as 8 trillion won for the o

July 22, 2016

Hana Financial's net jumps 5.5% in H1

Hana Financial Group Inc., a top South Korean banking group, said Friday its net profit soared 5.5 percent on-year to 790 billion won ($700 million) in the first half of this year, beating market forecasts.The group's second-quarter net profit also jumped 6.5 percent to 352.1 billion won from the first three months in an earnings surprise.The upswing is due to fundamental factors such as strong sales and a cut in costs from the successful merger of internal computer systems, group officials said

July 22, 2016

Korean finance minister to attend G-20 meeting in China

South Korea's finance minister will attend the Group of 20 meeting for top economic policymakers in China later this week to discuss global policy coordination amid increased market volatility and toughened economic conditions sparked by the British vote to exit the European Union, the finance ministry said Friday.Finance Minister Yoo Il-ho, who doubles as the deputy prime minister for economic affairs, will attend the G-20 Finance Ministers and Central Bank Governors meeting to be held in Cheng

July 22, 2016

Seoul stocks down for 4th day on profit-taking

 South Korean stocks fell slightly on Friday, sliding for a fourth consecutive session as investors sought to cash in on last week's surge and the European Central Bank did not roll out much-awaited boosting measures. The Korean won rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index fell 1.88 points, or 0.09 percent, to close at 2,010.34. Trade volume was light at 316 million shares worth 3.69 trillion won ($3.25 billion), with gainers outnumbering losers 413 to 366.Fol

July 22, 2016

Hyundai Steel Q2 earnings spike 26.5%

South Korea's second-largest steelmaker Hyundai Steel Co. said Friday that its net profit jumped over 26 percent from a year earlier in the second quarter on increased sales.Net income came to 254.6 billion won ($224.26 million) in the three months ending June 30, the company said in a regulatory filing.From the previous quarter, the second-quarter figure marks a 60.5 percent surge.Sales gained 5.8 percent on-year to some 4.22 trillion won.The company attributed the sales increase to a rise in t

July 22, 2016

Samsung Electro-Mechanics reports 84% plunge in Q2 profit

Samsung Electro-Mechanics Co., a maker of electronic components, on Friday said its operating profit for the second quarter of this year plunged 84 percent from a year earlier because of a weaker Japanese currency. Samsung Electro-Mechanics posted 15.2 billion won ($13.3 million) in operating profit for the April-June period and sales slightly rose to 1.6 trillion won, the company said in a regulatory filing. A weaker Japanese currency helped Samsung's Japanese rivals boost sales overseas, and S

July 22, 2016

SK Innovation Q2 net jumps 6.5% on petrochemical biz

SK Innovation Co., South Korea's top oil refiner, on Friday said its second quarter profit rose 6.5 percent from a year earlier, aided by better-than-expected results from its petrochemical business.Net profit reached 626 billion won ($551 million) on a consolidated basis in the April-June period, compared with a profit of 588 billion won a year earlier, the company said in a regulatory filing.Operating income surged 12 percent on-year to reach 1.12 trillion won over the cited period, while sale

July 22, 2016