High Q2 performance projected for refiners

[THE INVESTOR] South Korean refineries are expected to post healthy results for the second quarter of the year, buoyed by improving market conditions. Local refiners and securities firms are in agreement that good second quarter results are likely for the industry. Analysts’ consensus on SK Innovation, the industry leader, stands at 10.41 trillion won ($9 billion) for second quarter sales, and operating profit of 829.7 billion won. The figures fall short of those posted for the same period last

June 30, 2016

[ANALYST REPORT] Tire: Earnings momentum to slow down in 2H16

We find that demand for replacement equipment (RE) tires in Europe and the US has been slowing down from 2Q16, due mainly to the rise in inventory levels in sales channels. Global demand growth is continuing at a sluggish pace, estimated around 2% YTD-2016, making it difficult to raise tire prices. Meanwhile, domestic tire companies are likely to post solid operating profit for 2Q16 as a whole, but may see earnings momentum turn sluggish from 2H16 due to the rise in raw material input prices and

June 30, 2016

Seoul stocks up for 4th day on eased Brexit unrest

Korean shares advanced for the fourth straight session Thursday as investors went for bargain hunting following pledges by authorities to support the markets reeling from the post-Brexit turmoil. The local currency rose against the U.S. dollar. The benchmark Korea Composite Stock Price Index rose 13.99 points, or 0.72 percent, to 1,970.35. In moderate trade, 343.67 million shares worth 4.99 trillion won ($4.3 billion) traded hands on the main bourse, with 495 stocks advancing against 297 declini

June 30, 2016

KOSDAQ marks 20 years

[THE INVESTOR] The total market capitalization of firms on the KOSDAQ, South Korea’s tech-heavy secondary bourse, has increased 27-fold and daily transactions by nearly 1,500 times since its launch on July 1, 1996, data showed on June 30.According to Korea Exchange, the market capitalization of firms on the KOSDAQ stood at 206 trillion won ($179 billion) on June 30. In comparison, the figure stood at 7.6 trillion won in its early days. The value of daily trading has also soared over the years, g

June 30, 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.Shipbuilding employees in region

June 30, 2016

Short sellers required to make disclosures from July

[THE INVESTOR] Investors in South Korea will be required to disclose major short selling via the homepage of the local bourse operator Korea Exchange from Friday. The Financial Services Commission will impose a new regulation obligating investors to reveal their short positions and information about their identities once the amount comes to 0.5 percent of a company’s outstanding capital. Investors will have three trade days to file their reports on the name of the short-sold stock and other pers

June 30, 2016

Korean households' excess funds grow in Q1

Excess funds held by Korean households continued to rise in the first quarter despite a dip in their borrowing, while local companies saw their shortage of funds dwindle, central bank data showed Thursday.Excess funds held by local households, including nonprofit organizations, came to 24.3 trillion won ($21.07 billion) as of end-March, up 3.2 trillion won from three months earlier, according to preliminary data from the Bank of Korea.Nonprofit organizations include institutions that serve house

June 30, 2016

Multi Asset rolls outs hedge funds

Multi Asset Global Investments, part of Korea’s Mirae Asset Financial Group, has rolled out its first offering of hedge funds since redirecting its business focus to the alternative investment field, the company said Thursday. The launch came after the Seoul-based Multi Asset beefed up investment professionals to build a more specified, alternative-investment portfolio, catering to investors seeking mid-risk, mid-return investments. Formerly KDB Asset, Multi Asset was acquired by Mirae Asset ear

June 30, 2016

Korea to join Paris club this week

Korea will join the so-called Paris Club as the 21st member country this week, the finance ministry here said Thursday, a step that acknowledges the country's transition into a creditor country.The membership will be endorsed at the Club's meeting to celebrate its 60th anniversary on Friday in Paris, according to the Ministry of Strategy and Finance.Korea's Vice Finance Minister Choi Sang-mok will attend the ceremony, it added.The Paris Club is an association of creditor countries with the major

June 30, 2016

[ANALYST REPORT] Korea Development Bank: Capital buffers sufficient to absorb losses from exposures to shipbuilders and shippers

We expect Korea Development Bank (KDB, Aa2, stable) to report continued asset pressure from its exposures to the shipbuilding and shipping industries. However, its capital buffers are sufficient to absorb related credit costs, even under our stressed scenario.The Korean government‘s (Aa2 stable) announcements on 8 June of its Restructuring Plan for the Shipping and Shipbuilding Industries and Measures for the Recapitalization of Policy Banks do not change the fundamental credit issue facing the

June 30, 2016

[ANALYST REPORT] Construction: Government moves to stabilize presales market

WHAT’S THE STORY?2H policy includes plan to stabilize presales market: Korea’s Ministry of Strategy and Finance yesterday released its 2H economic policy, with a KRW20t financial improvement plan (including a KRW10t supplementary budget), while policies related to housing and construction comprise measures to: 1) stabilize the nation’s overheated presales market; 2) stimulate rentals via REITs; 3) expand the infrastructure for publicprivate partnerships [PPPs]; and 4) support overseas orders. We

June 30, 2016

S. Korea to become 21st member of Paris Club

[THE INVESTOR] South Korea will become a member of the Paris Club, a group of creditor countries, the Finance Ministry said on June 29. Asia’s fourth largest economy will join the club as the 21st member this week at the club’s meeting to celebrate its 60th anniversary on July 1 in Paris, according to the ministry.South Korea’s Vice Finance Minister Choi Sang-mok will attend the ceremony, it added.The Paris Club is an association of creditor countries with the major aim of finding sustainable so

June 30, 2016

Seoul shares trim earlier gains in late morning trade

Korean stocks trimmed earlier gains late Thursday morning in the face of lingering uncertainties surrounding concerted global efforts to underpin markets reeling from the post-Brexit rout. The benchmark Korea Composite Stock Price Index traded 7.01 points, or 0.36 percent, higher at 1,963.37 as of 11:20 a.m. after hitting an intraday high of 1971.54.  (Yonhap)The local stock market rebounded this week from Friday's 3.09 percent loss following Britain's vote to quit the European Union. Trillions

June 30, 2016

JB Asset Management invests W46.5b in Hawaii hotel project

[THE INVESTOR] JB Asset Management said on June 30 that it invested 46.5 billion won (US$40 million) in a project involving the renovation of the Pacific Beach Hotel in Hawaii. Located on Waikiki beach in Honolulu, the hotel features 839 rooms with nearly 90 percent of occupancy rate over the past three years.JB Asset Management expects to gain an annual return of 7 percent from the 5-year investment. The South Korean management firm raised capital by forming a real estate fund in which a handfu

June 30, 2016

Household debt growing at concerning rate, posing possible threats: BOK

South Korean households are taking out loans at a faster clip than the increase in their income or ability to pay back, suggesting that household debt may cause serious problems down the road, the central bank said Thursday.In a report to the National Assembly, the Bank of Korea said the country's overall financial system remained stable based on improving profitability and financial soundness of local financial institutions.However, "in the case of households, their delinquency rate and debt st

June 30, 2016

Seoul stocks open higher on US gains, stimulus steps

South Korean shares opened higher Thursday, tracking gains in U.S. stocks amid expectations that a new stimulus package along with market stabilization steps will ease the impact of Britain's vote to exit from the European Union.  The benchmark Korea Composite Stock Price Index rose 9.68 points, or 0.49 percent, to 1,966.04 in the first 15 minutes of trading.The main index almost wiped out a sharp plunge sparked by the Brexit rebounding for three consecutive days on Wednesday.Investors will clos

June 30, 2016

[Newsmaker] Korea’s vice president of AIIB taking leave

Hong Kyttack, the Korean vice president of the Asian Infrastructure Investment Bank since February, has taken a six-month leave of absence from the Beijing-based institution amid a scandal back home surrounding his previous stint at Korea Development Bank. “Hong cited personal reasons for the leave,” Seoul’s Finance Ministry official said, confirming Hong’s absence at AIIB since last week. The Korean executive was absent at the regional bank’s maiden general meeting in Beijing on June 25, where

June 29, 2016

Seoul stocks up for 3rd day on post-Brexit measures

Korean shares advanced for a third straight session on Wednesday as investors scooped up oversold stocks following firm pledges by authorities to underpin the markets reeling from the post-Brexit turmoil. The benchmark Korea Composite Stock Price Index rose 20.14 points, or 1.04 percent, to 1,956.36. Some 446.7 million shares worth 4.76 trillion won ($4.1 billion) traded hands on the main bourse, with 696 stocks advancing against 140 declining.Investors had welcomed policy actions promised by ce

June 29, 2016

Korean markets regain calm amid global liquidity support

Seoul stocks ended higher Wednesday as foreign investors returned to their buying mode with concerns over Brexit easing amid expansionary measures worldwide.The benchmark KOSPI and the Korean currency gained along with the British pound after days of volatility since the U.K.’s vote to leave the European Union, as the market worldwide sees Brexit more as a political crisis than a financial crisis. (Yonhap)The benchmark equity index closed at 1956.36 up 1.04 percent on Wednesday, with the won-dol

June 29, 2016

KT, BC Card partner with UnionPay for mobile payment service

[THE INVESTOR] Telecom operator KT and its subsidiary BC Card have partnered with Chinese bank card firm UnionPay International to launch UnionPay HCE mobile QuickPass in Korea, which will enable local cardholders to pay by tapping their mobile phones, the companies said Wednesday. Mobile QuickPass is UnionPay’s new mobile payment solution. It supports both offline contactless payment and online payment. It encompasses many mobile payment products, including HCE, Apple Pay and Samsung Pay. Accor

June 29, 2016