KEPCO looks to Jordan for further overseas expansion

[THE INVESTOR] Korea Electric Power Corp. is reviewing plans for launching solar power projects in Jordan, local news outlets reported on June 16.A team from KEPCO had been dispatched to the United Arab Emirates and Jordan last month to seek out potential new projects in the region. The overseas expansion drive is thought to be fueled by uncertainties the company faces as an electricity supplier. With the government announcing plans for opening up the market to private sector, KEPCO is expected

June 16, 2016

Seoul shares open slightly higher following Fed meeting

[THE INVESTOR] Korean shares opened slightly higher Thursday following the U.S. Federal Reserve’s decision to freeze the key interest rate. The benchmark Korea Composite Stock Price Index added 0.41 point, or 0.02 percent, to 1,969.24 during the first 15 minutes of trading. The U.S Federal Reserve decided to maintain interest rates at its former level on Wednesday considering Britain’s possible exit from the European Union, said Fed Chair Janet Yellen. Samsung Electronics dropped 0.78 percent, a

June 16, 2016

KOSPI ranks world’s 13th performer

[THE INVESTOR] The benchmark Korea Composite Stock Price Index ranked 13th among major global stock market indices in terms of performance for a month ending June 14, a local securities firm said Thursday. The KOSPI produced a negative return of 0.57 percent during the period to take a slightly higher position among 40 major market indices worldwide examined by Daishin Securities. During the period, the KOSPI skidded from 1,983.40 points to 1,972.03 points. The KOSPI touched this year’s high of

June 16, 2016

[ANALYST REPORT] Jump in Korea‘s tax revenues is credit positive

Below is an article from “Moody‘s Credit Outlook”, 16 Jun 2016 issue.Last Friday, Korea’s (Aa2 stable) Ministry of Strategy and Finance (MOSF) announced that it had collected KRW96.9 trillion in taxes in the first four months of the year, a 23% increase from the same period a year earlier and already 43% of the government’s targeted tax revenues for 2016.The increased revenue is credit positive for the sovereign because it supports government finances. Moreover, the increased tax revenue reflect

June 16, 2016

Seoul looks to reduce banks’ forex uncertainties

[THE INVESTOR] Seoul is looking to strengthen the ability of local banks to deal with sudden changes in the international market, the financial authorities announced after a meeting Thursday. As part of the plans -- finalized at a meeting between the financial regulators, central bank and Finance Ministry -- local banks will be required to raise their foreign exchange liquidity coverage ratio to 80 percent by 2019.   pixabay.comThe FX LCR is maintained at a level between the net forex outflow ex

June 16, 2016

Investigators close in on ex-DSME chief

[THE INVESTOR] The probe into bribery allegations against Daewoo Shipbuilding and Marine Engineering has expanded with authorities looking at the role of former CEO Nam Sang-tae. According to reports, the investigators have found evidence that Nam received bribes in return for awarding contracts to HUMEX Shipping & Air Freight Corp.On June 15, the prosecution applied for an arrest warrant on HUMEX chairman, who is said to be a close acquaintance of Nam. The chairman, identified by his surname Ch

June 16, 2016

Seoul seeks Interpol aid to track key suspect in DSME case

[THE INVESTOR] Seoul has requested Interpol to put out a red notice alert on a key suspect in Daewoo Shipbuilding and Marine Engineering corruption case. A red notice alert is placed on suspects wanted in Interpol member nations. According to the investigators, Seoul’s Ministry of Justice requested the alert on a suspect identified by his surname Lee, who is the elder brother of architect Lee Chang-ha.Lee Chang-ha, who held an executive level position at DSME from 2006 to 2009, was indicted in 2

June 16, 2016

Seoul to introduce tighter FX liquidity guidelines in 2017

South Korea said Thursday that it will apply tighter liquidity regulations on foreign exchange reserves to its banking operations starting next year to strengthen the liquidity positions of local financial institutions.The Ministry of Strategy and Finance said that it will introduce the foreign exchange liquidity coverage ratio to the South Korean banking industry from 2017, with other minor liquidity regulations abolished. Ministry of Strategy and Finance in Sejong City (Yonhap)The LCR is one o

June 16, 2016

Mando bond issuance projected to earn W510b.

[THE INVESTOR] The demand projection for corporate bonds to be issued by Halla Group’s Mando Corp. reached 510 billion won ($433.2 million). The amount was five times more than the estimated issuance target, according to financial sources on June 15. The projection was made to review the demand for 100 billion won worth of 3-year corporate bonds.The Korean parts-maker Mando made headlines after it was reported it would partner with Tesla Motors to jointly develop key technologies for the automak

June 15, 2016

Banks cut maturity on loans to Samsung Heavy

[THE INVESTOR] KB Kookmin Bank shortened the maturity on short term loans to Samsung Heavy Industries on June 15. In giving the shipbuilder an extension on 1-year maturity loans, the bank cut the payback period to three months. Samsung Heavy’s loan from KB Kookmin is 100 billion won ($85.2 million).The move is thought to reflect the difficulties the shipbuilder has been facing as orders dry up for some of Korea’s largest shipyards.  Samsung Heavy Industries.Shinhan Bank is also reported to be co

June 15, 2016

Facebook, Microsoft to help local start-ups’ global expansion

[THE INVESTOR] Major American companies such as Facebook, Microsoft and IBM as well as the South Korean government have joined in efforts to help local start-ups gain a foothold in the U.S.  　Members of the American Chamber of Commerce in Korea held a ceremony on June 14 to mark the launch of the “Global Leading Companies Mentoring Startups” campaign, in partnership with the Ministry of Science, ICT and Future Planning. 　A total of 33 companies participated in the event, including 19 AMCHAM memb

June 15, 2016

Pyongyang’s overseas trade drops for first time in 6 years

[THE INVESTOR] North Korea’s trade volume came in at $6.25 billion in 2015, dropping 18 percent compared to the previous year, South Korean data showed on June 15. According to the data released by the Korea Trade-Investment Promotion Agency, both exports and imports recorded a year-on-year drop to bring down Pyongyang’s overall trade volume.The data showed that exports dropped 15 percent to come in at $2.7 billion, imports fell 20 percent to come in at $3.55 billion. With the changes, Pyongyang

June 15, 2016

Hanjin chairman asks Seaspan’s Wang for price cut

 [THE INVESTOR] Hanjin Group chairman Cho Yang-ho sat down with Gerry Wang, the owner of the world’s largest container firm Seaspan Corp., to persuade him to cut chartering prices. Wang reportedly responded “positively” to Cho’s overtures, according to Hanjin Shipping executives. This is the first time that Cho stepped up to directly intervene in ship charter cost issues. Cho met with Wang on June 14 at the Korean Air headquarters in downtown Seoul.  Cho Yang-ho(left) and Gerry Wang.In May, Wang

June 15, 2016

[DECODED] Park Hyeon-joo’s men

Park Hyeon-joo is recognized as the brains behind the launch of Mirae Asset, one of Korea’s first asset managers to launch mutual and real estate trust funds in the country. As the founder and chairman of the firm, Park -- a graduate of Korea University in business administration -- worked his way up the corporate ladder at brokerages, and gained a keen trading sensibility. But like any great entrepreneur who has changed the world, Park was not alone in his quest to found Mirae Asset. The firm i

June 15, 2016

[DECODED] Next in line at Mirae Asset?

Attention is now being drawn to who chairman Park Hyeon-joo, although just 58 and in the prime of his life, will groom as his successor at Mirae Asset Financial Group. The founder, openly critical of the father-to-son transfers of control common in Korea’s large family-owned conglomerates, has said on multiple occasions that he will not pass down control of the group to his children. Local media paid keen attention, however, when Park Ha-min, Park’s eldest daughter, joined Mirae Asset Global Inv

June 15, 2016

Tax agency to crack down on 36 tax evaders

[THE INVESTOR] South Korea will start an intensive investigation targeting dozens of individual and corporate offshore tax evaders who did not voluntarily pay taxes, the National Tax Services said on June 15. The NTS, the country’s tax authority, said that some 36 people are subject to the probe, including three or four suspects who hid assets in tax havens and were listed in the leaked files known as the Panama Papers. The crackdown comes as a six-month grace period offered by the tax agency en

June 15, 2016

[DECODED] A reality check on ‘Korean IB’ dream

Global investment banking giants lament that their glory days are over. But for many Koreans, investment banking is still finance’s final frontier, all the more fascinating because it seems far beyond their reach. Park Hyeon-joo, arguably the most successful financier born in Korea, eyes Korea’s presence in the world of investment bankers, from which existing players have been retreating. He aims to grow his Mirae Asset Financial Group into Asia’s leading investment bank. “I have been dying to d

June 15, 2016

Seoul stocks decline on 5th straight day

[THE INVESTOR] South Korean stocks fell for five straight sessions on June 15 as sentiment was down on the possibility over Britain leaving the European Union. Investors were also sitting on the sidelines ahead of the Federal Reserve‘s rate decision. The Korean won fell slightly against the U.S. dollar.The benchmark Korea Composite Stock Price Index lost 3.2 points, or 0.16 percent, to close at 1,968.83. Trade volume was at 371.5 million shares worth 4.49 trillion won ($3.82 billion), with loser

June 15, 2016

Teachers’ Pension eyes hedge fund foray

[THE INVESTOR] Korea’s Teachers’ Pension, the nation’s second-largest retirement pension, is preparing for its first foray into hedge fund investment this year, its chief investment officer told The Korea Herald. In an exclusive interview, Park Min-ho said the 13.1 trillion won fund was biding time for the move, as conventional stock and bond investments generate lackluster returns. “Many institutional investors turn to alternative investments now and the market has become more competitive. The

June 15, 2016