Korean gov’t to ease regulations on insurers

[THE INVESTOR] Limitations on insurance companies’ investments will be lifted in a bid to help insurers improve finances. The Financial Services Commission said on June 27 that a number of revisions to related laws will be made, and submitted to the National Assembly around September. As part of the measures, the ceiling on overseas real estate and foreign currency insurance companies can hold will be removed. In addition, the limit on bonds, shares and derivatives issued by a single entity will

June 27, 2016

Korea on alert for market shocks on Brexit

[THE INVESTOR] The Korean financial market remained volatile on June 27 following the UK’s vote to leave the European Union last week, with the equity market opening with a loss on weakened sentiment.Brexit is expected to have a long-lasting impact on the global economy with Korean exports to the EU forecast to slow in the coming years, further weighing down investor confidence, hence, Korean President Park Geun-hye has called on her senior secretaries and financial authorities to increase monit

June 27, 2016

Gold rises on Brexit worries

[THE INVESTOR] The price of gold on Korea Exchange’s gold market broke the 50,000 won (US$42.4) per gram mark for the first time on June 27, fueled by uncertainties arising from UK’s departure from the European Union.On June 27, gold closed at 50,200 won per gram, up 780 won or 1.58 percent from June 24. This is the first time the price has broken the 50,000-won mark since the KRX gold market was launched in March 2014. On June 27, gold began 1.1 percent up buoyed by private investors seeking mo

June 27, 2016

[Photo News] Brainstorming against Brexit fallout

Hwang Young-key (center), chairman of the Korea Financial Investment Association, speaks during a meeting with heads of brokerage houses convened to discuss the fallout in the nation‘s financial markets from Brexit on Monday. (Yonhap)

June 27, 2016

[News Focus] Lawmakers renew aim at Samsung Life

A group of opposition lawmakers have revived legislation that would force Samsung Life to drastically reduce its equity holdings in affiliates, including Samsung Electronics, potentially threatening Samsung Group’s de facto chief Lee Jae-yong’s control over the top conglomerate. The original legislation, frequently referred to as “the Samsung Life” or “anti-Samsung bill,” died at the previous, conservative Saenuri Party-controlled parliament amid heavy lobbying from Samsung. The revival came aft

June 27, 2016

Investors head toward short-term, safe assets amid Brexit crisis

Local investors are increasingly beginning to lean toward the U.S. dollar and other safer assets, such as short-term deposits, market data showed Monday, following Britain's unprecedented vote to quit the European Union that has apparently left long-term commitments riskier, as well as unattractive, amid record low interest rates.According to the Bank of Korea, outstanding bank deposits with a maturity of less than one year came to a record high of 199.48 trillion won ($168.12 billion) as of end

June 27, 2016

KOSPI to trade between 1,870-2,000 level: Korea Investment & Securities

[THE INVESTOR] Korea Investment & Securities predicted that the benchmark KOSPI would trade within a range of 1,870 points to 2,000 points in the aftermath of the Brexit crisis.“There are two scenarios here, one is that the uncertainties surrounding Britain and Europe will spill over into emerging markets, meaning the local stock markets will continue to fluctuate,” said Noh Geun-hwan, an analyst with the brokerage.“Only 1.4 percent of the South Korean bond market is composed of British funds, b

June 27, 2016

Seoul vows active, lasting steps to counter Brexit fallout

Korea's financial authorities on Monday vowed to take all necessary measures to minimize the fallout from Britain's vote to leave the European Union, emphasizing that Asia's fourth-largest economy is well-positioned to tide over the unprecedented shock. The head of the country's top financial regulator noted volatility in the local financial market may continue to increase over an extended period of time but insisted Britain's exit from the EU, called Brexit, will have limited impact on the glob

June 27, 2016

Seoul stocks ended flat amid Brexit turmoil

Korean shares trimmed earlier losses to close almost flat Monday as investors expect major economies to inject liquidity into the markets to avoid a global financial crisis following Britain's decision to quit the European Union last week. But the Korean won continued to lose ground against the U.S.dollar amid investors' lingering appetite for safer assets.The benchmark Korea Composite Stock Price Index closed flat at 1,926.85, up 1.61 points, or 0.08 percent, after dropping to an intraday low o

June 27, 2016

KOSPI to bottom out at 1,880 level: Hyundai Securities

[THE INVESTOR] South Korean brokerages are busy issuing forecasts on the local stock markets. Among them, Hyundai Securities says the benchmark KOSPI would bottom out at the 1,880 level following Britain’s latest decision to leave the European Union. Considering that some of the responses we are seeing may be excessive, and intertwined with political uncertainties, it would be reasonable to see the bottom at 1,880 points, which is about 0.98 times KOSPI’s PBR, according to a report compiled by K

June 27, 2016

[News Focus] Won expected to further tumble on Brexit

The British pound has fallen, along with the euro, Chinese yuan and, not to mention, the Korean won, while the dollar and Japanese yen strengthened following the U.K.’s vote to leave the European Union.The won-dollar exchange opened with a decrease of 0.2 won at 1,150 won last Friday, but weakened almost 30 won, closing at 1,179.9 won as the British voted in favor of exiting the EU, while the KOSPI lost more than 3 percent.Analysts forecast the won-dollar exchange to touch as high as 1,200 to 1,

June 26, 2016

Brexit overshadows Korean economy

The “Leave” outcome in the U.K. is expected to further overshadow the prospects of the Korean economy, which is already facing a slew of negative outlooks on employment, inflation and exports, analysts say.An exit from the European Union is likely to slow Korean exports to its free trading partner, as Korea and the U.K., as well as the EU, will have to renegotiate the terms of their trade pacts and tariffs separately, now that the world’s fifth-largest economy will have to start talks with the U

June 26, 2016

[Graphic News] Ships, cars are top export items to Britain

As Great Britain voted to leave the European Union, domestic attention is being paid to how it might affect Korea’s trade with the Western European country. According to a report from the Industry Ministry, two-way trade volume reached $13.8 billion in 2015, with Korea‘s exports amounting to $7.7 billion. Particularly, the nation’s 13 major items of exports to Britain accounted for $7.39 billion. Among the export items, ships topped the list at $2.5 billion, followed by cars with $1.5 billion an

June 26, 2016

W47tr wiped out from Korean stock market on Brexit vote

[THE INVESTOR] Over 47 trillion won (US$40 billion) has been erased from the Korean stock market as Britain voted to leave the European Union on June 24. The combined market capitalization on the main KOSPI and tech-heavy KOSDAQ markets fell by 47.44 trillion won to 1,420.32 trillion won from a session earlier. It is the biggest drop since Nov. 10, 2011, when the market cap plunged by 57.22 trillion won. Market heavyweight Samsung Electronics plunged 2.1 percent. Hyundai Mobis fell 2.27 percent

June 24, 2016

Korea Asset In Trust to go public in July

[THE INVESTOR] Real estate trust company Korea Asset In Trust is set to go public on Korea’s benchmark KOSPI on July 13. “Through the initial public offering, the company will go beyond real estate trust business and become the No.1 real estate and finance company,” Kim Kyu-chul head of KAIT said at a press conference in Yeouido, Seoul, on June 24. Established in 2001, KAIT is the market leader in real estate trust companies in Korea. In the first quarter this year, the company recorded operatin

June 24, 2016

Won-yuan direct trading market in China to be launched next week

[THE INVESTOR] The Chinese market for direct trading of the South Korean won and Chinese yuan will be launched next week, the South Korean Finance Minister said on June 24.The won-yuan direct trading market will begin operations in Shanghai on June 27. The state-run Chinese Foreign Exchange Trading System will take charge of the management. “South Korea and China are important trade partners,” Finance Minister Yoo Il-ho said in an official opening ceremony held in Beijing. “The newly launched cu

June 24, 2016

KOSPI to plunge below 1800 points on Brexit: analysts

[THE INVESTOR] Analysts warned Britain’s vote to leave the European Union may further dampen Korean stock financial markets as panic gripped investors. On June 24, the country’s benchmark KOSPI shed 61.47 points, or 3.09 percent, to 1,925.24. Sidecar kicked in following the secondary KOSDAQ’s 6-percent plunge. Shocked investors dumped pounds, leading the value of sterling to slump to a 31-year low on currency markets. Other Asian markets including Japan’s Nikkei finished the day with big losses.

June 24, 2016

[ANALYST REPORT] SK Hynix: Easing supply glut

2Q estimates: sales of W3.76tr (+2.1% QoQ), OP of W445bn (-21.6% QoQ) Rebounding indicators, earnings to improve QoQ in 3Q ¨ Retain BUY for target price of W38,0002Q estimates: sales W3.76tr (+2.1% QoQ), operating profit W445bn (-21.6% QoQ)SK Hynix is forecast to post 2Q sales of W3.76tr (+2.1% QoQ, -18.9% YoY) and operating profit of W445bn (-21.6% QoQ, -67.7% YoY). We expect bit growth of 13% and ASP drop of 10%. Earnings should bottom out in 2Q. We expect operating profit of W549bn (+23.5% Qo

June 24, 2016

Brexit batters Seoul financial markets

Like elsewhere in the world, Seoul’s financial markets took a heavy beating from Britain’s decision to leave the European Union on Friday, as panicky investors dumped emerging-market assets in a global flight to safety. KOSPI stocks fell 3 percent, while the local currency shed nearly 2.6 percent against the dollar. Government officials swiftly went into emergency mode, vowing to use “all means possible” to help stabilize markets. Despite the panic on the financial markets, some private economis

June 24, 2016

Korea vows swift, firm response over Brexit if necessary

Korean Finance Minister Yoo Il-ho on Friday said Seoul will "swiftly and firmly" take measures to deal with volatility in financial markets if necessary as Britain voted to leave the European Union. Korea "has faithfully reviewed contingency plans and the government will swiftly and firmly deal with the development if necessary," the policymaker said in a statement, saying that the Brexit is expected to pose "long-term uncertainty" to the world economy and Korea. "In the short term, volatility i

June 24, 2016