Chinese firms line up for Korean insurer ING Life

[THE INVESTOR] The sale of South Korean insurance firm ING Life Korea, which may be worth up to 3 trillion won ($2.62 million), has drawn attention from Chinese buyers, sources said on June 20. Hong Kong-based private equity firm JD Capital, leading investment group Fosun and Taiping Life are in negotiations or conducting due diligence on the Korea’s fifth-largest insurance company by assets. Asian buyout firm MBK Partners plans to sell its stake in ING Life Korea by the end of this year by comm

July 20, 2016

Seoul stocks down for 2nd day on IMF outlook cut

Korean stocks edged down on Wednesday, sliding for a second consecutive session, as investor sentiment was hurt by the International Monetary Fund's downward revision of its economic outlook. The Korean won fell 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 309 million shares worth 3.44 trillion won ($3.01 billion), with losers outnumbering gainers 425 to 357. (Yonhap)The local stock mark

July 20, 2016

Finance union to stage nationwide strike in September

[THE INVESTOR] The Korean Financial Industry Union announced on July 20 that it will stage a nationwide strike in September.The union put the strike plans to the vote on July 19, and 95.7 percent of the voting members approved the plans. The industry union said that of the 95,168 members, 82,633 participated in the vote. If the financial union goes ahead with the plans, it will be the first time since September 2014 that the union will go on a nationwide strike. The Korean Financial Industry Uni

July 20, 2016

Seoul will improve conditions for foreign financial instutions

[THE INVESTOR] Seoul will review the country’s financial industry environment for any shortcomings vis-a-vis global standards, Financial Services Commission Vice Chairman Jeong Eun-bo said on July 20.“(The financial authorities) will review whether there are elements in (South Korea’s) financial environment that fall short of global standards,” Jeong said at a meeting the chiefs of foreign financial institutions’ South Korean operations, saying that concerns are growing over their decision to re

July 20, 2016

Kiwoon Securities to acquire TS Bank

[THE INVESTOR] Kiwoom Securities will acquire a Seoul-based savings lender TS Bank to expand its revenue sources, the Korean brokerage firm said on July 20. Kiwoom plans to buy the entire stake -- 2 million shares -- in TS Bank for 88.5 billion won (US$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

July 20, 2016

[Graphic News] Short-term floating capital hits record high

The volume of short-term “floating” capital in Korea is set to surpass 1,000 trillion won ($870 billion) due to record-low interest rates and increased uncertainties, data indicated Monday.According to the Bank of Korea and the Korea Financial Investment Association, the idle cash and other short-term capital hit an all-time high of 958.9 trillion won as of end-May, up 15.1 trillion won from a month earlier. It stood at 866.3 trillion won in May last year.By asset type, cash came to 80.1 trillio

July 19, 2016

Woori Bank Q2 net income jumps 35%

[THE INVESTOR] Woori Bank, South Korea’s largest bank in terms of consolidated assets, posted a 35 percent on-year surge in its second-quarter net profits as its exposure to debt-ridden companies abates.The lender’s second-quarter net income surged to 307 billion won (US$269.81 million), up 35.8 percent on-year. “Given that Woori spent some 92 billion won to carry out an early retirement program during the second quarter, it posted net profit of over 400 billion won for two consecutive quarters,

July 19, 2016

Woori Bank Q2 net jumps 36% on less loan-loss reserves

Woori Bank, Korea's second largest bank by assets, said Tuesday its second-quarter net profit soared 35.8 percent on-year to 307 billion won ($300 million) thanks to a decrease in loan-loss provisions.It means the bank's net profit in the first six months of 2016 totaled 750.3 billion won, up 45.2 percent from a year earlier.(Yonhap)The bank said it spent 92 billion won in one-time cost for the voluntary retirement of some employees as part of its restructuring efforts in the second quarter."Tak

July 19, 2016

Optopac gets approval for KOSDAQ listing

[THE INVESTOR] Optopac, a South Korean electronic part manufacturer, was approved for listing on the secondary bourse KOSDAQ, the Korea Exchange said on July 19.The company will be listed on July 20, and the indicative share price has been set at 5,900 won (US$5.19). Established in 2003, the company supplies image sensors for cameras in smartphones and laptop computers. It posted 31.66 billion won in sales and a net loss of 356 million won last year. By Park Han-na (hnpark@heraldcorp.com)

July 19, 2016

CJ HelloVision’s share price falls after failed merger with SKT

[THE INVESTOR] Mirae Asset Daewoo on July 19 lowered the target price of CJ HelloVision to 11,000 won (US$9.67) per share in the next 12 months after its failed merger with SK Broadband, the IPTV unit of SK Telecom. In the day, its share closed at 9,550 won, down 3.14 percent from the previous day. The brokerage said the Fair Trade Commission’s disapproval of the merger would affect negatively the overall attractiveness of the nation’s paid TV market that is crowded with smaller

July 19, 2016

[Monitor] Producer prices drop in June

Korea’s producer prices dropped slightly from a year earlier in June on a large cut in prices of coal and petroleum products, central bank data showed Tuesday. The June index marked a slight increase from a revised 98.79 in the previous month.

July 19, 2016

Ex-Lotte Chemical chief summoned over accounting fraud allegations

[THE INVESTOR] Ki Joon, a former chief of Lotte Chemical was summoned by prosecutors Tuesday to be questioned on accounting fraud allegations.Ki Joon appeared before the Seoul Central District Prosecutors’ Office as a suspect. Former chief of Lotte Chemical Ki Joon (Park Hyun-koo/The Korea Herald)“I will tell all the facts,” he told reporters before entering the prosecutors’ office. KP Chemical, the precursor of Lotte Chemical, is suspected of using doctored accounting records when filing a suit

July 19, 2016

Medytox Q2 earnings to beat expectations

[THE INVESTOR] Korean biopharmaceutical firm Medytox is likely to post stronger-than-expected earnings in the second quarter on robust growth of its hyaluronic acid dermal filler brand Neuramis, a local brokerage NH Investment & Securities said on July 19. “Medytox’s Q2 sales and operating profit were estimated at 31.2 billion won (US$27.43 million) and 18.4 billion won, respectively, up 42.8 percent and 31.4 percent on-year,” said Lee Seung-ho, an analyst at the securities firm. NH Investment &

July 19, 2016

Daewoo E&C Q2 results to be in line with expectations

[THE INVESTOR] South Korean builder Daewoo E&C’s second-quarter earnings will meet market expectations, LIG Investment & Securities said on July 19. The securities firm expected that Daewoo E&C would post 2.73 trillion won (US$2.42 billion) in sales in the April-June period, up 5.8 percent from a year earlier. Its operating profit is likely to fall 5.6 percent to 98.4 billion won. “The Q2 earnings will be on a par with market consensus because of improved revenue from domestic housing and constr

July 19, 2016

[Photo News] Monetary policy

Bank of Korea Gov. Lee Ju-yeol speaks about Korea‘s monetary policy during an international forum co-hosted by the central bank, the Korea Institute for International Economic Policy and the U.S.-based Peterson Institute for International Economics in Seoul on Tuesday. (Yonhap)

July 19, 2016

BOK calls for fiscal response to rising economic challenges

Bank of Korea Gov. Lee Ju-yeol said Tuesday that the central bank will maintain its monetary easing to support the economy, but its policy alone is not enough to counter possible instability on growing economic uncertainties.In a conference on the monetary policies of small open economies, the country’s top monetary policymaker said that an effective mix of macroeconomic policies are needed to manage financial risks and carry out structural reform.“There are limits to facing multiple economic ch

July 19, 2016

Samsung Biologics, Sillajen likely to be listed by year-end: analysts

[THE INVESTOR] Samsung Biologics and Sillajen are likely to be listed by the end of this year, according to analysts on July 19. Samsung Biologics is preparing to apply for preliminary assessment by the Korea Exchange by August this year. Once listed, the stock value is expected to reach around 10 trillion won (US$8.77 billion). The company posted a second straight year of loss in 2015, with the amount widening to 203.6 billion won from 119.5 billion won in 2014. Samsung Biologics headqartersAna

July 19, 2016