[Market Now] Dongbu Steel not for sale anymore

Dongbu Steel, the ailing steelmaking affiliate of South Korea’s Dongbu Group, said that its creditors have stopped their attempt to sell the steelmaker.“With creditors’ debt-to-equity swap plan and improved earnings of the company amid business conditions in the steel industry, M&A attempts have been stopped,” the company said in a regulatory filing. Dongbu Group headquarters in Seoul (Yonhap)Its main creditor Korea Development Bank has been struggling to find a suitor for the steelmaker due to

May 18, 2016

Shipbuilding sector restructuring gains speed

Samsung Heavy Industries submitted a self-rescue plan to its main creditor bank on late Tuesday, joining other Korean top shipyards undergoing industrywide restructuring to reduce debt and weather the global slump. It has been 17 years since an affiliate of the Samsung Group handed in reform plans to creditors. Samsung Motors had applied for a court-administered debt restructuring program in June 1999. “We submitted a self-rescue plan consisting of measures to secure liquidity and improve financ

May 18, 2016

Korean stocks close lower on institutional selling

Korean shares closed 0.57 percent lower Wednesday as institutions went on a selling binge ahead of what many believed an imminent U.S. rate hike. The local currency lost ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) lost 11.33 points to close at 1,956.73. Trading volume came to 688.6 million shares worth 6.5 trillion won ($5.5 billion), with losers outpacing gainers 583 to 235.Investor sentiment froze following better-than-anticipated indicators in the U.

May 18, 2016

Korea to take a hard hit by China decline

With Korea’s economy facing the internal risk of an aging population, the country faces another serious issue at hand that could potentially further weigh down its growth potential -- a slowdown in China.In a report, Standard & Poor’s warned that Korea will be the third-hardest-hit country by China should the world’s second-largest economy see its annual growth fall to around 3.4 percent from 2017-20.In this worst case scenario, the aggregate growth rate of Asia’s fourth-largest economy, whose b

May 18, 2016

KB Kookmin Card launches lottery event to spur spending

KB Kookmin Card has launched its “Spot the Star Shop” event, in which card members are eligible to win various prizes when spending a set accumulated amount with a KB card at Star Shops or KB-affiliated stores through June 19, the company announced Wednesday. The event will give away through a lottery five Hyundai Avante vehicles, 30 KB Kookmin Present Cards each worth 3 million won ($2,500) and 65 KB Kookmin Preset Cards each worth 500,000 won to customers who spend 100,000 won. Furthermore, th

May 18, 2016

Net profits of top 500 companies up 10.8% last year

The net profits of South Korea's top 500 companies increased 10.8 percent last year, data showed Wednesday, a sign of their belt-tightening and more efficient management amid economic difficulties.The combined net profits of the 500 companies stood at 96.6 trillion won ($81 billion) last year, up 10.8 percent from a year earlier, according to CEOScore, a website that tracks conglomerates, financial firms and state-run companies.The operating profits of those companies jumped 13.6 percent to 142.

May 18, 2016

Losses from overseas equity funds total 4.9 tln won over past 12 months

Valuation losses over the past year derived from overseas equity funds sold locally total 4.9 trillion won ($4.1 billion), due mainly to the meltdown in Chinese stocks this year, a private fund ratings company said Wednesday.Domestic and foreign investors injected a combined 2.550 trillion won into 2,872 overseas equity-linked fund products offered by local banks, brokerages and other financial institutions in the past 12 months through May 16, a spokeswoman from the Korea Fund Ratings Co. (KFR)

May 18, 2016

NH-Amundi celebrates name change

Korean asset management company NH-CA Asset Management has changed its name, and celebrated it by holding a forum on global economy in Seoul on Wednesday.Now called NH-Amundi Asset Management, the nation’s seventh-largest asset management firm changed its name on May 1 in a bid to enhance its French parent company Amundi’s brand name and tap into its extensive global network.NH-Amundi was established as a joint venture in 2003 between NH Financial Group of Korea with a 70 percent stake and Amund

May 18, 2016

Korea posts record-breaking marine transport deficit

Korea posted its first quarterly deficit in marine transportation in a decade this year, central bank data showed Wednesday. In the first quarter this year, the country’s deficit in marine transport came to $67.6 million, according to the data from the Bank of Korea. Bank of Korea (Yonhap)The Q1 reading marks the first quarterly deficit since 2006 when the central bank began compiling the data. In January alone, the deficit reached $135.4 million to mark the largest-ever monthly amount.Marine tr

May 18, 2016

Hyundai Merchant, shipowners to renegotiate charter rates

Financially embattled Hyundai Merchant Marine and the owners of ships that it leases are set to hold final talks here for cutting charter rates, industry sources said Wednesday. The talks come as creditors of the country’s No. 2 shipper is putting pressure on Hyundai Merchant to place it under court receivership should they fail to get “meaningful” results from the negotiations. Hyundai Merchant and high-ranking officials from five major shipowners will discuss the charter rate cut in downtown S

May 18, 2016

Seoul shares open lower on Wall Street losses

Korean share prices opened lower Wednesday following losses in New York. The benchmark Korea Composite Stock Price Index fell 9.90 points to 1,958.16 in the first 15 minutes of trading. Traders monitor South Korean share prices at a local bank. (Yonhap)The drop came after stocks on Wall Street suffered a steep decline. The Dow Jones industrial average lost 1.02 percent to close at 17,529.98.Analysts said investor sentiment was also dented following reports from the U.S. showing its consumer pric

May 18, 2016

Pension, tax increase to stir debate over Korea’s social welfare

Korean politicians, economists and government officials are expected to engage in debates on whether to further increase workers’ monetary contribution to the country’s national pension, and increase taxes for sustainability.This comes as the Organization for Economic Cooperation and Development recommended Asia’s fourth-largest economy to increase taxes and the social safety net pension system on expectations of growing social spending due to the aging population.However, observers say issues c

May 17, 2016

Korean shares almost flat amid lack of leads

Korean stocks edged up Tuesday as losses by shipbuilders and automakers offset a rise in tech companies. The local currency rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) shed 0.01 percent, or 0.15 point, to close at 1,968.06. Trade volume was moderate at 590 million shares worth 5.41 trillion won ($4.61 billion), with losers outpacing gainers 467 to 342. The local stock market got off to a strong start following overnight gains on Wall Street, but earlier a

May 17, 2016

Buyout giant KKR not eyeing ailing sectors in Korea: CEO

U.S. private equity giant KKR & Co. is not keen on investing in ailing sectors in Korea including shipbuilding and steel, its CEO said Tuesday.“We’ve avoided, not just in Korea but around the world, investing in steel or shipbuilding or auto companies mainly because of cyclical nature of those businesses,” said George Roberts, cochairman and co-CEO of KKR, at a press conference in Seoul.George Roberts, cochairman and co-CEO of U.S. private equity firm KKR, speaks during a press conference in Seo

May 17, 2016

[Photo News] Woori Wedding Day

Woori Bank plans to select 10 financially troubled international couples to hold group weddings for them on July 3 at the bank’s head office in Seoul. Applicants can submit their convincing stories to the bank by May 25. Go to www.woorifoundation.or.kr for more details. This wedding photo was taken in July last year with Woori Bank CEO Lee Kwang-goo (center) officiating the ceremony. (Woori Bank)

May 17, 2016

Korean shares open higher on U.S. gains

Korean shares opened a tad higher Tuesday, taking cue from overnight gains in Wall Street.The benchmark Korea Composite Stock Price Index (KOSPI) advanced 0.74 point or 0.04 percent to 1,968.65 in the first 15 minutes of trading.Investor sentiment got a boost from overnight advance in Wall Street. (Yonhap)The Dow Jones industrial average rose 175.39 points, or 1 percent, to 17,710.71, and the Nasdaq composite index gained 57.78 points, or 1.2 percent, to 4,775.46.Most large caps were in positive

May 17, 2016

Seoul shares end 0.05 percent higher

Korean stocks edged up Monday as investors appeared to become cautious following improved U.S. indicators that might signal a U.S. rate hike. The local currency lost ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index added 0.05 percent or 0.92 point to close at 1,967.91. Trade volume was 510 million shares worth some 4.64 trillion won ($3.94 billion), with losers outpacing gainers 452 to 352.  Traders monitor share prices at a local bank. (Yonhap)Investors apparently

May 16, 2016

Hitting the sweet spot in the confectionery market

A bag of immensely popular potato snacks has become an unexpected game changer for local confectionery shares. Due to the success of the Honey Butter Chip, its manufacturer Haitai Confectionery and Foods has recovered the No. 2 spot in sales in the Korean confectionery market for the first time in five years. The firm’s share prices have also soared. Honey Butter chip (Yonhap)Haitai share prices closed at 53,800 won ($45.6) on Monday, a whopping 250 percent above its May 11 initial public offeri

May 16, 2016

Reforms urgent to spur growth, small businesses: OECD

The Organization for Economic Cooperation and Development has urged Korea to pursue reform and innovation through policies aimed at sustaining growth and boosting small and medium-size enterprises and start-ups amid a slowdown. In its economic outlook report, the OECD said Monday that Korea will need to further implement fiscal and monetary stimulus to “sustain expansion,” while trying to maintain fiscal soundness by increasing tax rates on expectations of rising social spending due to the aging

May 16, 2016

FSS issues ‘warning’ to Shinsegae chief for borrowed-name stocks

The Financial Supervisory Service, the nation’s top financial watchdog, said Monday it has issued a “warning” to Shinsegae Group chairwoman Lee Myung-hee who was accused of having held illegal ownership of company stocks under borrowed names last year.　In November 2015, Shinsegae declared that Lee possessed some 380,000 company shares worth around 80 billion won ($68 million) under the names of three group executives, including former group chairman Koo Hak-seo, and that she would convert them t

May 16, 2016