Shinhan launches new rewards system

Shinhan Financial Group, the nation’s largest banking group by assets and profits, launched a combined rewards system called the “Shinhan Fan Club” on Thursday. “The new rewards system was introduced so that customers would conveniently collect and spend points,” said a Shinhan Financial Group official. A model promotes “Shinhan Fan Club.” Shinhan Financial GroupThe new rewards system replaces the previous “My Shinhan Point” rewards system that only allowed Shinhan members to collect points when

June 29, 2016

Korea ranks 11th among G20 nations in stock performance

Korea's stock market suffered a slight decline in the first half of the year largely due to investors taking a risk-averse stance, data showed on Wednesday.The benchmark Korea Composite Stock Price Index fell 1.76 percent to 1,926.85 points on Monday from 1,961.31 points on December 30. The fall is better than the average decline of 3.08 percent for the world's 20 major economies during the same period, according to data from the Korea Exchange.  (Yonhap)Among the G20 countries, Argentina was th

June 29, 2016

NACF chief to be grilled over alleged illegal campaigning

[THE INVESTOR] National Agricultural Cooperative Federation chairman Kim Byeong-won is to be questioned by the prosecution for alleged wrongdoing in the election process on June 30. The NACF is Korea’s largest agroindustry body that counts NongHyup Financial Group among its affiliates. Its chairman is elected among chiefs of regional branches who run for office. Kim was elected as the chairman of NACF in January, and it has since emerged that he may have been involved in illegal campaign activit

June 29, 2016

Finance minister pledges to implement aggressive fiscal expansion

Korea's chief economic policymaker on Wednesday said he will use all fiscal means to get over the lingering downside risks at home and abroad and revive the growth momentum in Asia's fourth-largest economy."As we are in severe economic conditions inside and outside the country, we have to take an aggressive (fiscal) stance to deal with mounting risks," Finance Minister Yoo Il-ho said in a parliamentary session in Seoul."The government will carry out corporate restructuring, job creation programs

June 29, 2016

NongHyup Bank enters Indian market

[THE INVESTOR] NongHyup Bank’s overseas expansion has gained momentum with the launch of its representative office in India on June 29, a spokesperson of the agricultural bank said.The office is located in the nation’s capital, New Delhi. It marks the lender’s fourth overseas office, following New York, Beijing and Hanoi. NongHyup has been eyeing the growing Indian market since 2011 when it sent an employee to India to study the market. The spokesperson revealed that the bank plans expand its bu

June 29, 2016

Chief regulator vows preemptive steps to ease post-Brexit volatility

Korea's financial authorities said Wednesday they will act preemptively to minimize any market fallout in the wake of Britain's unprecedented vote to leave the European Union. As Britain's upcoming exit from the EU may have a lingering and lasting impact on global markets in the long term, the government will take quick and bold steps to ease any post-Brexit market turmoil while thoroughly preparing to ride out the changes ahead, Financial Services Commission Chairman Yim Jong-yong said before l

June 29, 2016

[ANALYST REPORT] Refining/Chemicals: Review of share valuations

Korean refineries and chemicals are trading sharply lower on unexpected events such as the Brexit issue and the resulting increase in global macroeconomic uncertainties. However, we believe risks of a possible down-adjustment of earnings consensus are fully priced in at current share valuations. Relative valuation attractiveness could dip on a global view, but further downsides in share prices remain limited with key factors determining earnings, such as the spreads and refining margins of major

June 29, 2016

Jeju Air’s earnings to improve from Q3

[THE INVESTOR] Jeju Air, Korea’s largest low-cost carrier, will see faster growth in earnings from the third quarter of the year, Korea Investment & Securities said. In the second quarter, Jeju Air is expected to post 162.4 billion won (US$138.7 million) in revenue, up 14.1 percent from a year earlier and 44.6 percent drop in operating income to log 5 billion won, said Yoon Hee-do, an analyst at Korea Investment & Securities said. The parliamentary election, which was held in April, slowed air t

June 29, 2016

Only 17% of KOSDAQ firms held IR events in 2015

[THE INVESTOR] More than 80 percent of companies listed on the tech-heavy KOSDAQ did not hold a single investor relations event last year, Korea Exchange said on June 29. According to Korea Exchange’s analysis, 948 of the 1,151 KOSDAQ companies did not hold any investor relations events in 2015. The figures are based on regulatory filings posted on the Financial Supervisory Service’s Data Analysis, Retrieval and Transfer System.Such neglect of communication with investors was displayed regardles

June 29, 2016

Seoul stocks open higher on Wall Street gains

Korean shares opened higher Wednesday, tracking gains on Wall Street, on expectations that policymakers around the globe will make concerted efforts to tame market volatility following Britain's decision to leave the European Union last week. The benchmark Korea Composite Stock Price Index rose 11.13 points, or 0.57 percent, to 1,947.05 in the first 15 minutes of trading. The main index brushed off a 3.38 percent loss on Thursday and Friday to rebound and gain 0.57 percent on Monday and Tuesday.

June 29, 2016

Korea plans 20 trillion won stimulus

Growth forecast drops to 2.8 percent this year, despite expansionary policiesInvestor confidence was restored Tuesday with the market responding positively to the South Korean government’s plan for extra spending in the second half of this year to cushion the economy from internal and external shocks.Economic policymakers attend a news conference to announce the government's policy direction for the seond half of this year in Seoul on Tuesday. (Yonhap)The benchmark KOSPI edged up 0.49 percent at

June 28, 2016

Seoul stocks rebound on eased Brexit woes

Korean shares advanced for a second straight session on Tuesday, rebounding from Friday's 3.09 percent plunge caused by Britain's decision to quit the European Union. The local currency also gained against the U.S. dollar.The benchmark Korea Composite Stock Price Index rose 9.37 points, or 0.49 percent, to 1,936.22. Some 368 million shares worth 4.36 trillion won ($3.72 billion) traded hands on the main bourse, with gainers outnumbering losers 614 to 206.  Investors appear to have breathed a sig

June 28, 2016

Hyundai Steel stock price target cut due to weak momentum

[THE INVESTOR] Hyundai Steel stock price target has been reduced to 62,000 won (US$52.41) from 67,000 won by Eugene Investment & Securities, citing the steelmaker’s limited earnings momentum in the second half of this year. “Hyundai Steel’s sales (excluding affiliates) for the second quarter are expected to grow 0.3 percent to 3.71 trillion won and its operating profit will fall 16.6 percent to 354.1 billion won which is in line with analysts’ estimates,” Bang Min-jin, an analyst at Eugene said.

June 28, 2016

Deutsche Seoul becomes preliminary primary dealer of gov’t bonds

[THE INVESTOR] German lender Deutsche Bank’s Seoul branch has been selected to join the list of preliminary primary dealers, giving the branch authority to underwrite government bonds starting July 1, said the Ministry of Strategy and Finance on June 27. The new addition will increase the number of second-tier bond dealers in South Korea to four. The other three include the Seoul branches of BNP Paribas and Yuanta Securities and Korean insurance company Meritz. There will continue to be 19 first

June 28, 2016

Korea cuts growth estimate, proposes 10 tln won extra budget

Korea's finance ministry on Tuesday said it has trimmed its growth estimate for the year, while seeking to draw up a 10 trillion won ($8.45 billion) extra budget to buttress Asia's fourth-largest economy against headwinds such as a slump in domestic and overseas demand and, more recently, Britain's unexpected vote to leave the European Union.The ministry lowered its 2016 economic growth outlook by 0.3 percentage point to 2.8 percent, joining other private institutions that have already made down

June 28, 2016

Seoul stocks open lower on Wall Street losses

Korean shares opened lower Tuesday, tracking losses on Wall Street, with investors awaiting policy action by central banks around the globe to inject liquidity into markets to ease the turmoil caused by Britain's decision to quit the European Union.  The benchmark Korea Composite Stock Price Index fell 16.59 points, or 0.86 percent, to 1,910.16 in the first 15 minutes of trading. Investors have sold risky assets since Britons voted to leave the EU last week. Instead, the investors bet on safe as

June 28, 2016

Corporate direct financing drops in May

(Yonhap)Sales of corporate bonds and stocks in Korea fell 29.3 percent last month from a month earlier due largely to a cut in corporate bond issuance, government data showed Tuesday. In May, Korean companies raised 10.26 trillion won ($8.7 billion) by selling bonds and stocks, compared with 14.52 trillion won the previous month, according to the data compiled by the Financial Supervisory Service. "As major industries (shipping and shipbuilding companies) have come under restructuring, the inves

June 28, 2016

[ANALYST REPORT] Amid age of uncertainty, value of government bonds to rise

With the UK voting to leave the EU, uncertainties are predicted to extend for the time being. As such, we believe that the global monetary easing trend will strengthen. Under the worst-case scenario, the Fed may even consider cutting the FF rate. Considering that the possibility of an additional domestic rate cut has heightened further, we suggest expanding duration of KTBs upon yield rises.▶Global bond market outlookDeveloped markets: As the UK has voted to leave the EU, we believe that it will

June 28, 2016

Coway seen on stable growth track: analyst

[THE INVESTOR] Samsung Securities maintained its buy rating and price target of 135,000 won (US$114.31) for Coway, a Korean water purifier maker, recommending the stock as an investment alternative with stable returns amid growing uncertainty in the market. “Coway has been enjoying stable growth based on its overwhelming market dominance and unique business model,” said Park Eun-kyung, an analyst at Samsung Securities. She expects Coway’s second-quarter sales to rise 15 percent on-year to 637.8

June 28, 2016