S. Korean stocks Asia’s 2nd top for foreign investors in H1

[THE INVESTOR] South Korean stocks were the second top pick for foreign investors in Asia, after Taiwanese shares, in the first half of this year, according to the Korea Exchange on July 4. In the January-June period, foreigners bought a net US$6.25 billion worth of Taiwanese stocks, followed by the purchases of Korean stocks and Indian shares worth $3.42 billion and $2.74 billion, respectively. In 2015, foreign investors broke their net buying streak in Asia for the first time in three years. I

July 4, 2016

Korean stocks 2nd most bought by foreigners in H1

South Korean stocks were the second top pick for foreigners after Taiwanese shares in the first half in the Asian region despite major downward momentum factors such as Britain's EU exit vote last month, the country's main bourse said Monday. In the January-June period, foreigners bought a net $6.25 billion worth of Taiwanese stocks, followed by the purchases of Korean stocks and Indian shares worth $3.42 billion and $2.74 billion respectively, the Korea Exchange said in a statement."Foreigners

July 4, 2016

KDB to buy unsold SME bonds worth W500b

Korea Development Bank will spend as much as 500 billion won to buy corporate bonds rated “A” or lower, as part of measures to support smaller companies with cash needs to sell new bonds more easily. “Demand in Korea’s corporate debt market has been focused on large companies and their low-risk debt,” the Financial Services Commission said in a statement. “The announced measures are intended at supporting demand for lower-rate debt, so that more companies can raise funds through the market,” it

July 3, 2016

Koreans' overseas card spending slows down in Q1

Overseas card spending by South Koreans slowed down in the first three months of the year amid the weakening won against the U.S. dollar, industry data showed Sunday.The total amount of card purchases made outside of the country reached $3.3 billion over the January-March period, up 2.7 percent from a year earlier, according to the data compiled by the Credit Finance Association.The on-year gain slowed sharply from a 13.8 percent jump tallied in the same period last year.The association attribut

July 3, 2016

Major banks' home-back loans rise sharply in June

South Korea's major lenders saw their home-backed loans rise sharply last month amid the record-low borrowing costs and a boom in the local housing market, industry data showed Sunday.The outstanding amount of mortgage loans extended by five commercial banks -- Kookmin Bank, Shinhan Bank, Woori Bank, KEB Hana Bank and Nonghyup Bank -- reached 364.15 trillion won ($317.2 billion) as of end-June, up 4.84 trillion won from a month earlier, according to the data.The on-month gain marked the fastest

July 3, 2016

KDB, Eximbank executives to return bonuses

Top executives of Korea Development Bank and Export-Import Bank of Korea have agreed to return bonuses ahead of state recapitalization, the lenders said Saturday. At KDB, a policy bank under fire for lax oversight of the companies it bailed out, four will give back the entire bonus cash they received based on last year’s performance.  They include former CEO Hong Kyttack, who has earlier returned his 2015 salary.Korea Development Bank's headquarter building in Yeouido, Seoul (KDB)Hong, in Februa

July 2, 2016

Seoul shares likely to extend gains next week on eased Brexit woes

Korean shares are likely to trade in the positive terrain next week as shock over Britain‘s decision last week to exit the European Union has eased, analysts said Saturday.The benchmark Korea Composite Stock Price Index gained 3.19 percent for the whole of this week to end at 1,987.32 this Friday, fully recovering the loss of 3.09 percent last Friday when Britain’s EU exit vote wiped out nearly 2.5 trillion won from global equity values. Next week, analysts said the KOSPI will trade in the range

July 2, 2016

[ANALYST REPORT] Celltrion: Expect healthy 3Q16 share price momentum

Celltrion’s sales and profit should normalize from 2Q16. Looking at 2H16, we suggest that investors focus on: 1) the start of supply (from 3Q16) of Celltrion Healthcare’s Remsima to Pfizer; 2) expected approvals for Celtrion’s Rituxan and Herceptin biosimilars; 3) a planned IPO for Celltrion Healthcare; and 4) new disclosure rules for short-selling balances.2Q16 preview: Earnings normalizing; COGS-to-sales ratio and SG&A-to-sales ratio stabilizingCeltrion chairmanSeo Jung-jinWe expect Celltrion

July 1, 2016

Asia-Pacific central banks to invest in local currency bonds

[THE INVESTOR] Central banks of 11 Asia-Pacific nations will invest in bonds denominated in the currencies of concerned nations, Bank of Korea announced on July 1. According to SouthKorea’s central bank, the 11 central banks included in the Executives’ Meeting of East Asia-Pacific Central Banks (EMEAP) agreed to invest in local currency bonds. Members of EMEAP include the central banks of South Korea, Australia, China and Japan.Until now, the EMEAP’s Asia Bond Fund invested in dollar-denominated

July 1, 2016

Korea to revitalize SME debt financing

South Korea will seek to boost debt issues of small and medium-sized enterprises with credit ratings of below “A” through increased investor protection and opening up new channels for debt financing, the Financial Services Commission said Friday.This comes as investors are becoming more risk-averse, investing only in high-grade bonds issued by Korean conglomerates amid decreasing market confidence and a global slowdown.With its measures, the FSC seeks to reinvigorate debt financing of small busi

July 1, 2016

NPS to build defensive portfolio

[THE INVESTOR] Korea’s national pension fund said on July 1 it will adopt a defensive strategy for alternative investments into European markets to protect against potential shocks from the post-Brexit turmoil. The National Pension Service, the world’s third-largest pension fund with 520 trillion won (US$450 billion) in assets, said it will keep a close eye on market conditions after Britain’s decision to leave the EU in order to achieve the 5 percent goal of the annual rate of return this year.

July 1, 2016

Jangwon Tech to float IPO in July

[THE INVESTOR] Jangwon Tech, a Korean die casting company, will go public on the tech-heavy KOSDAQ in July, the firm’s chief executive said on June 30. The company plans to use the funds from the initial public offering to “expand its production facilities and diversify product portfolio,” said Park Sae-hyuk, CEO of the firm in a press conference held in Seoul. The company is expected to offer 1.5 million shares to the public against the total issue size of 6,045,000 shares at a tentative price

July 1, 2016

State pension fund reports 4.57% in 2015 rate of return

South Korea's national pension fund said Friday it will closely monitor the markets to avoid any big losses from the post-Brexit turmoil, while releasing a lower-than-average rate of return for last year. The National Pension Service, the world's third largest with 520 trillion won ($450 billion) in assets, reported 4.57 percent in the annual rate of return in 2015, lower than the average return of 4.7 percent for the 2011-2015 period, the NPS said in a statement. This year, the NPS aims to boos

July 1, 2016

BOK chief to hold special briefing on low inflation rise

The head of South Korea's central bank will hold a special press conference this month to explain the reasons for the low consumer price inflation that has remained far below the central bank's annual target, the Bank of Korea said Friday.The special conference comes as the country's consumer prices gained only 0.9 percent in the first six months of the year, far short of the BOK's 2-percent target for the 2016-2018 period.While switching to a single-digit target from a target range for consumer

July 1, 2016

Korea to provide support amid job losses in shipbuilding

The South Korean government will designate shipbuilding as a sector that needs “special state assistance” with the Finance Ministry and Labor Ministry providing aid to employees facing job losses due to debt restructuring.Finance Minister Yoo Il-ho said Thursday that the government will seek to provide financial relief to those who lose their jobs in the wake of corporate restructuring, and help them receive proper training and education so they can find new jobs. Finance Minister Yoo Il-ho (Yon

June 30, 2016

Korean PEF to buy Outback Steakhouse Korea

[THE INVESTOR] South Korean private equity firm SkyLake Investment plans to acquire Outback Steakhouse Korea, the Australian-themed US restaurant chain. The Nasdaq-listed Bloomin’ Brands, which owns the chain, selected the PEF as a preferred bidder for its 100 percent stake in the restaurant, according to sources in the investment banks industry on June 30.Outback Steakhouse KoreaBloomin’ Brands and SkyLake Investment are expected to ink a stock purchase agreement as early as July 1 in a deal wo

June 30, 2016

Korea to sell 7 tln won worth of state bonds in July

Korea plans to sell 7 trillion won ($6.07 billion) worth of state bonds next month, the finance ministry said Friday.The government will issue 1.7 trillion won worth of bonds with a maturity of three years and 1.5 trillion won worth of five-year bonds.It also plans to sell 1.9 trillion won worth of 10-year bonds and a combined 1.9 trillion won with a maturity of between 20 and 30 years.The ministry said it sold 10.7 trillion won worth of state debt in June. (Yonhap) 

June 30, 2016

Banks’ nonperforming loans reach 5-year high

[THE INVESTOR] South Korean banks’ nonperforming loan ratio has risen to the highest in five years, Bank of Korea data showed on June 30.The data showed that nonperforming loan ratio stood at 2.6 percent at the end of March, which is the highest level since March 2011, when the figure stood at 2.8 percent. The ratio for commercial banks was 1.8 percent, while special banks -- state-run banks set up according to specific laws -- had a ratio of 3.5 percent. Local banks have extended total of 1.061

June 30, 2016

Hyundai Motor share prices slip after HHI block deal

[THE INVESTOR] Hyundai Motor shares fell on June 30 following the news of a block deal by Hyundai Heavy Industries and Hyundai Samho Heavy Industries on the previous day.On June 30, Hyundai Motor closed 2.52 percent lower at 135,500 won (US$ 117.5).Hyundai Motor’s automotive affiliates Kia Motors and Hyundai Mobis also closed lower. Kia shares closed at 43,200 won, down 1.37 percent, while Hyundai Mobis closed at 252,000 won, down 2.51 percent. Hyundai Heavy and Hyundai Samho sold 1.24 million a

June 30, 2016

National Pension Service hires four PEFs to run its funds

[THE INVESTOR] South Korea’s National Pension Service has named four private equity firms to run 700 billion won (US$607 million) of its funds, the pension giant said on June 30. The NPS, which oversees $430 billion in assets, hired VIG Partners and Skylake Investment to manage investment in large-cap companies with 250 billion won of entrusted funds for each. Some 200 billion won will be allocated to Lindeman Asia Investment and SG Private Equity -- 100 billion won each -- to make investments i

June 30, 2016