Central bank calls for bank soundness

Bank of Korea Gov. Lee Ju-yeol urged Korean banks to pay attention to asset quality in their balance sheets and manage them well amid a gloomy market outlook.In a meeting with bank executives on Thursday, the country’s top monetary policymaker said the ongoing restructuring of debt-laden shipping and shipbuilding companies as well as low interest rates are expected to weigh on banks’ profitability.This calls for commercial banks to push efforts to maintain financial soundness.“Concerns are growi

July 21, 2016

Hanwha Life targets Indonesian market for growth

[THE INVESTOR] Hanwha Life Insurance will invest 150 billion won ($131.77 million) into its Indonesian unit to strengthen its foothold in the fast-growing market, the firm said on July 21. To expand its life insurance business in Indonesia, the firm will commit 80 billion won into the sales channel to boost the number of branches to 44 by 2025 from the current 10. “The future of Korea’s insurance industry, which has reached a saturation point, depends on readiness to dominate the promising overs

July 21, 2016

Shinhan aims to transform into major investment bank

[THE INVESTOR] Shinhan Financial Group, a major South Korean banking group, has decided to increase capital by 500 billion won (US$439.63 million) through rights issue in a bid to morph into an investment bank, the group said on July 21. With the proposed capital increase the firm’s equity capital will reach over 3 trillion won, the minimum threshold level to meet the government’s requirement to receive official permits to conduct a full-range of investment banking activities. From 2013, the nat

July 21, 2016

[Contribution] Improvement in practices of insurance products

With the aim of tackling practices that inconvenience people in financial transactions, the Financial Supervisory Service has since May last year consistently promoted the 232 reform tasks it pledged in its first financial reform package. While financial reforms were implemented sporadically, the FSS and the financial industry are working together to carry out financial reforms intensively and systematically. This concerted effort has been highly credited for raising the level of consumer protec

July 21, 2016

Sampyo Group’s 3 affiliates to go public

[THE INVESTOR] Three affiliates of Sampyo Group are planning initial public offerings on Seoul’s main bourse before the group floats its own shares, sources said on July 21. The key affiliates -- Sampyo P&C, Sampyo E&C and Sampyo Industry -- are looking at listing as a way to boost the group’s market value by raising funds. According to investment bank officials, Sampyo Group, a holding firm, sent out a request for proposals to seven brokerage houses to hire underwriters for the three IPOs.Sampy

July 21, 2016

Seoul stocks drop for 3rd consecutive day ahead of ECB meeting

[THE INVESTOR] South Korean stocks edged down on July 21, sliding for a third consecutive session as investors took to the sidelines ahead of the European Central Bank’s policy meeting later in the day. The Korean won rose against the US dollar.The benchmark Korea Composite Stock Price Index fell 1.43 points, or 0.07 percent, to close at 2,015.46. Trade volume was light at 388 million shares worth 3.84 trillion won (US$3.38 billion), with losers outnumbering gainers 422 to 371. The European Cent

July 21, 2016

Seoul stocks down for 3rd day ahead of ECB meeting

Korean stocks edged down on Thursday, sliding for a third consecutive session as investors took to the sidelines ahead of the European Central Bank's policy meeting later in the day. The Korean won rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index fell 1.43 points, or 0.07 percent, to close at 2,015.46. Trade volume was light at 388 million shares worth 3.84 trillion won ($3.38 billion), with losers outnumbering gainers 422 to 371. (Yonhap)Following last week's surge o

July 21, 2016

BOK chief calls for banks to maintain financial health

The head of Korea's central bank said Thursday that local banks should keep their financial status healthy to weather any possible external impact."It is important for banks to maintain a clean bill of health in terms of assets and a proper level of debt-to-equity ratio to cope with financial volatility," Bank of Korea Governor Lee Ju-yeol said in a meeting with chiefs of major banks in Korea.The chiefs of the major banks shared the view that they need to strengthen efforts to cut costs, citing

July 21, 2016

Foreigner investors keep buying Korean stocks, but analysts say the streak may be temporary

Offshore investors have been on a buying streak for Korean stocks, sending their market cap ratio in the main local bourse to a 14-month high, the Korea Exchange said Thursday, but analysts were divided on whether the rally will continue.Shares held by foreign investors as of Tuesday accounted for 33.61 percent of the total market cap for KOSPI, the highest since 33.62 percent reached on May 18 last year. The buying streak has continued since June 29 except for a single day on July 6, with a tot

July 21, 2016

Tax revision to focus on job creation: finance minister

Korea's finance ministry on Thursday said revisions to taxes set to take effect in 2017 will focus on revitalizing the national economy and creating more jobs."The decision by Britain to exit the European Union has sparked uncertainties at home and abroad," Finance Minister Yoo Il-ho said during a meeting with the ruling Saenuri Party. "Accordingly, future tax-related changes will aim to beef up the economy and stabilize the lives of the people."The country's top economic policymaker added he wi

July 21, 2016

Amid widening probe into founder, Nexon affiliate sees 31% plunge in stock price

[THE INVESTOR] Nexon GT, an affiliate of game developer Nexon, saw its stock price plunge to a record low in 16 weeks amid the snow-balling investigation into founder Kim Jung-ju’s alleged involvement in insider trading.The company’s stock price dropped 31.3 percent from 13,200 won (US$11.60) on April 7 to 10,050 won on July 20 -- the lowest since Feb. 15 when the share price plummeted to 9,920 won.Kim Jung-ju, Nexon founder and the chairman of the game firm’s holding firm NXC. The Investor Kim,

July 20, 2016

Busan Bank raising $250m through CoCo bonds

Busan Bank, a subsidiary of BNK Financial Group, has sold contingent convertible bonds, or CoCos, worth $250 million, the lender said on Wednesday. The 10-year additional tier 1 bond, which drew orders of almost $2.4 billion, is priced with a coupon of 3.675 percent. “It is the lowest rate among US dollar-denominated CoCos ever issued in Asia since Basel III came into effect,” an official at Busan Bank said. The Basel III is a global regulatory framework on bank capital requirements, stress test

July 20, 2016

Kiwoom Securities to acquire TS Bank

Kiwoom Securities will acquire a Seoul-based savings lender TS Bank to expand its revenue sources, the Korean brokerage firm said on Wednesday. Kiwoom plans to buy the entire stake -- 2 million shares -- in TS Bank for 88.5 billion won ($77.52 million), according to the firm’s regulatory filing. Currently, TS Bank runs two branches in Yeoksam and Yeouido, Seoul. Kiwoom said the acquisition plan aims at “increasing revenue by entering the savings banking business.” The deal is the latest move by

July 20, 2016

Workers in 60s more likely to have jobs than 20-something

The number of those in their 60s who got hired in the second quarter of this year exceeded those in their 20s for the first time in two years, according to Statistics Korea on Wednesday.As life expectancy increases and employees seek to push back retirement as companies adopt a wage peak system, a growing number of elders are looking to either remain in the workforce as long as they can or try to reenter the labor market to further prepare for their postretirement.The number of those employed in

July 20, 2016

FSC seeks to address foreign financial firms' concerns

Jeong Eun-bo, the vice chairman of the Financial Services Commission, said Wednesday that a task force will be set up to foster constant communication with foreign financial companies operating in the country and address their needs.This comes as the state financial regulator is concerned over an increasing number of foreign financial companies folding their businesses and exiting the Korean market amid a gloomy outlook and decreasing profitability.In a meeting with executives of foreign financi

July 20, 2016