Korea seeks to host global conferences on development financing

South Korea’s Deputy Prime Minister and Finance Minister Yoo Il-ho said that the government will seek to host annual conferences for the Asian Infrastructure Investment Bank in 2017 and the African Development Bank in 2018.In a meeting with economic-related ministers in Seoul on Thursday, Finance Minister Yoo said this comes as Asia’s fourth-largest economy seeks to expand its presence in international aid and development financing. Finance Minister Yoo Il-ho (Yonhap)“Korea needs to further expa

May 12, 2016

KIC to team with local firms for overseas investments: chief

Korea’s sovereign wealth fund is willing to team up with local brokerages and asset management firms to invest in overseas infrastructure projects, its chief said Wednesday.The Korea Investment Corp., which manages about $90-billion assets, has rarely cooperated with local investment firms before.“As overseas construction projects are evolving to become large investment projects, customized financial support is all the more necessary now,” Eun Sung-soo, CEO of KIC, said in a meeting with heads o

May 12, 2016

Hyundai Cement sale expected this year

Hyundai Cement, which has been under a debt workout program, could be put up for sale by creditors as early as next month, sources said Thursday.Creditors of the Korean maker of cement and ready-mixed concrete, led by the state-run Korea Development Bank, plan to seal the deal after the lock-up period on their shares in the company expires at the end of this year.“Although Hyundai Cement is under a debt workout scheme, its business is almost back on track,” an official at one of the creditors sa

May 12, 2016

[Market Now] Keystone Private Equity selected as preferred bidder for Dongbu Corp.

U.S.-based Keystone Private Equity has been selected as the preferred bidder for Dongbu Corp., news reports said Thusrday.The Korean midsized builder has been looking for a new owner since it started a debt workout program in July last year. Dongbu Group headquarters in Seoul (Yonhap)At the final bidding, Keystone Private Equity offered a bidding price that was 10 billion won higher than United Asset Management Corp.’s, which specializes in managing nonperforming loans, local reports said. The s

May 12, 2016

Korea's M2 money supply continues to grow in March

Korea's M2 money supply grew from a month earlier in March on a rise in cash flows and short-term deposits, central bank data showed Thursday.The M2 came to 2,296.8 trillion won ($1.97 trillion) as of end-March, up 0.8 percent from 2,279.1 trillion won tallied a month earlier, according to preliminary data from the Bank of Korea (BOK).M2 refers to currency in circulation, including bank debentures and deposits with a maturity of less than two years, along with stock investments. It, however, doe

May 12, 2016

3.8m people drawing national pension

The National Pension Fund, on its 29th year of operation this year, is providing benefits to nearly 4 million people in South Korea, its records showed Thursday.The pension program was adopted in January 1988 to guarantee income for the elderly after retirement and to provide coverage for disabilities and surviving family members. The number of recipients totaled 3.77 million in October 2015. As of the end of last year, a 65-year-old resident of Gwangju, southwest of Seoul, was getting the large

May 12, 2016

Green Cross to issue bonds for U.S. expansion

Green Cross Corp., a listed Korean pharmaceutical company, said Thursday that it plans issue three and five-year bonds worth some 100 billion won ($86 million) to finance its expansion overseas.The company’s bond underwriter NH Investment & Securities will evaluate the value of the bonds graded AA minus through a book building process next week. Its bond issues mark the first time for the company to raise funds in the local capital market.“The proceeds will be used for its expansion in the advan

May 12, 2016

National pension covering 3.77 million people

The National Pension Fund, on its 29th year of operation this year, is providing benefits to nearly 4 million people in South Korea, its records showed Thursday.The pension program was adopted in January 1988 to guarantee income for the elderly after retirement and to provide coverage for disabilities and surviving family members. The number of recipients totaled 3.77 million in October 2015. As of the end of last year, a 65-year-old resident of Gwangju, southwest of Seoul, was getting the large

May 12, 2016

Seoul shares open lower on Wall Street losses

South Korean share prices opened lower on Thursday following losses on Wall Street. The benchmark Korea Composite Stock Price Index fell 6.16 points, or 0.31 percent, to 1,973.94 in the first 15 minutes of trading. Traders monitor Seoul share prices at a local bank. (Yonhap)Overnight, the Dow Jones industrial average slipped 1.21 percent, weighed down by lackluster earnings results for some high-profile companies including department store chain Macy’s.Samsung Electronics remained bearish, while

May 12, 2016

Doosan’s restructuring on track with asset sales

Market expectations of Doosan Group‘s profit turnaround are growing, with the completion of the conglomerate’s planned asset sales Tuesday. The Korean power equipment and construction giant successfully sold the heat recovery steam business unit of its construction arm Doosan Engineering & Construction for 300 billion won ($256 million) to General Electric. “This is the final deal that the group has pushed under its self-restructuring plan for the past two years,’’ a company spokesperson said.Fa

May 11, 2016

Seoul shares down 0.12% on institutional sell-offs

Korean stocks closed down 0.12 percent on Wednesday, driven mostly by massive sell-offs by institutions, analysts said. The local currency rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) fell 2.4 points to end at 1,980.10. Trade volume totaled 393.5 million shares worth 4.36 trillion won ($3.7 billion), with gainers outpacing decliners 443 to 350. "Throughout the session, institutions weighed on the market by selling on a relatively massive scale, but the dow

May 11, 2016

Youth unemployment, aging demographics weigh down Korea

The Korean economy is facing pressure from all sides that will make it harder to sustain growth amid high youth unemployment, rapidly changing demographics and slow manufacturing growth.With cash-strapped companies in conventional industries expected to go through restructuring soon, more people of all ages will be out of jobs and face difficulties in finding work in a slow market.This will increase Korea’s unemployment rate, while growing costs for restructuring and welfare will add burden to f

May 11, 2016

KB Kookmin Bank organizes job fair in Busan

KB Kookmin Bank is organizing a job fair in the southern port city of Busan as part of its efforts to give back to society in an era of record-high youth unemployment rate.The two-day fair opened at BEXCO on Wednesday with job opportunities at over 200 companies recommended by various respected groups, including Korea Industrial Technology Association and Korean Commission for Corporate Partnership.   KB Kookmin Bank CEO Yoon Jong-kyoo (right), along with Busan Mayor Suh Byung-soo (center), enco

May 11, 2016

Lotte to buy Hyundai Logistics to bolster delivery business

South Korea’s conglomerate Lotte Group plans to buy a controlling stake in Hyundai Logistics, as it seeks to strengthen its delivery service to compete with other rival retailers.By the end of next week, eight affiliate companies of Lotte are set to hold board of directors meetings to get approval to buy an 88.8 percent stake in Hyundai Logistics in separate deals with an estimated value about 410 billion won ($351 million), according to Lotte officials. They expect to complete transactions with

May 11, 2016

Debt-to-equity swap mulled for Hyundai Merchant

Creditors led by the state-run Korea Development Bank are soon to come up with a detailed plan to inject new capital for Hyundai Merchant Marine, as the ailing shipping firm is near completing negotiations with shipowners over ship leasing fees.Creditors next week will start discussing a debt-to-equity swap plan, KDB spokesman Cho Seong-wook said Wednesday. A debt-to-equity swap refers to swapping loans into stocks of the company to alleviate liquidity crunch. Korea Development Bank headquarters

May 11, 2016

Korean shares open tad higher on retail buying

Korean stocks opened slightly higher on Wednesday as retail investors picked up shares. The benchmark Korea Composite Stock Price Index (KOSPI) added 1.33 points, or 0.07 percent, to 1,983.83 in the first 15 minutes of trading. (Yonhap)Retail investors picked up over 50 billion won ($42.7 million) worth of shares, but institutions and foreigners weighed on the market by selling more than they bought. The local currency was trading at 1,167.2 won against the U.S. dollar, up 5.4 won from the previ

May 11, 2016

[Graphic News] Temporary holiday causes surge in spending

The government’s decision to designate May 6 as a temporary holiday, which allowed people four days off in a row last week, led to boosts in spending on shopping, traveling and leisure. Sales in department stores increased 16 percent during May 5-8 this year compared to last year’s holiday from May 2-5. Meanwhile, the number of visitors to baseball parks also surged 43.9 percent over the same period.As part of efforts to spur domestic consumption, the government had waived highway tolls across t

May 10, 2016

Samsung Heavy may unveil overhaul plan next week

Samsung Heavy Industries may submit next week a self-restructuring plan to its creditor banks, as Korean dockyards ramp up their fight for survival amid a protracted slump in global shipbuilding. Samsung, the smallest of the country’s Big Three shipyards, is currently drawing up steps to improve finances, while pressured by creditors to cut debt. Industry sources said its plans may include a 170 billion won ($145 million) sale of real estate assets, disposals of equity holdings worth 50 billion

May 10, 2016

Seoul shares up 0.75% on massive buying of beaten-down issues

Korean stocks closed 0.75 percent higher on Tuesday as investors picked up auto, pharmaceutical and other recently beaten-down shares, analysts said. The local currency dropped against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) gained 14.69 points to end at 1,982.5. Trade volume totaled 364.98 million shares worth 4.77 trillion won ($4.1 billion), with gainers outpacing decliners 576 to 217. The local stock market got off to a subdued start apparently taking a cue fr

May 10, 2016

KDB to inject capital into Eximbank through KAI shares

The state-run Korea Development Bank said Tuesday that it will hand over its shares of Korea Aerospace Industries to the Export-Import Bank of Korea as part of an emergency financial relief.“We have decided to give our KAI shares to Eximbank,” KDB chief executive Lee Dong-geol told reporters ahead of a meeting with the Financial Services Commission on Tuesday.Korea Development Bank (Yonhap)KDB will hand over its 7.86 percent stake in KAI worth about 500 billion won ($426 million) to boost the ca

May 10, 2016