[Market Now] Korean won gains fastest among Asian currencies

The Korean won gained the fastest among Asian currencies last month on the back of the U.S. Federal Reserve’s dovish stance on raising interest rates and slower depreciation of the Chinese yuan, according to data by Yonhap Infomax and Capital Economics.The Korean strengthened against the U.S. dollar by 8.15 percent in March, the highest gain followed by the Malaysian ringgit’s 7.97 percent appreciation; Singaporean dollar’s 4.32 percent; Taiwanese dollar’s 3.44 percent; Philippine peso’s 3.16 pe

April 3, 2016

[Eye] Korean finance in transition

On the wall of Korea Finance Investment Association chairman Hwang Young-key’s office in Yeouido, Seoul, is a work of calligraphy that reads, “Finance flowing through four oceans.” It is a gift from a descendant of Yue Fei, a Han Chinese military general, to the Korea Financial Investment Association, apparently giving a clear invitation for the Korean financial services industry to expand their international presence.Established in 2009 through a merger of the three associations of securities,

April 1, 2016

Hyundai Merchant Marine expects better finances in second half

Hyundai Merchant Marine expects its liquidity crunch to ease in the second half of the year, after selling its stake in Hyundai Securities at possibly triple the price of the brokerage’s current equity value.“We expect some breathing room in the second half once the sale is completed,” said Choi Young-man, a spokesman for the cash-strapped shipping company. KB Financial Group, the preferred bidder for Hyundai Merchant Marine’s stake in the brokerage unit, has reportedly offered more than 1 trill

April 1, 2016

Five to vie for PHC maker Sambu

Five bidders have been taken through to the final round in the auction of Sambu Construction Industrial, a local building materials-maker with annual revenue of around 50 billion won ($43,400), the deal’s manager Samjung KPMG said Friday.  Sambu Construction Industrial’s headquarters in downtown Seoul. (Yonhap)They include ready-mix concrete-maker Tong Yang, Daewon Construction and Keystone PE, a Seoul-based buyout firm set up by former Woori Bank CEO Lee Duk-hoon. Sambu Construction Industrial

April 1, 2016

Mobile giant Kakao named large biz group

Kakao Corp., the operator of South Korea‘s top mobile messenger KakaoTalk, has been included in a government list of large business groups whose mutual investments and loan guarantees will face restrictions, the Fair Trade Commission said Friday.The FTC said Kakao’s total assets surpassed the 5-trillion-won level following its takeover of music streaming and download service provider Melon in January.Every year, the antitrust agency announces an updated list of large business groups with assets

April 1, 2016

[Newsmaker] KB Financial aims to be top universal bank

KB Financial Group chief Yoon Jong-kyoo said Friday that its planned takeover of Hyundai Securities will bring the group one step closer to his vision of turning it into Korea’s top universal bank. Yoon Jong-kyoo (Yonhap)“We will grow Hyundai Securities into a model for universal banking in Korea based on KB Kookmin Bank’s strength in customer base, reputation and assets,” Yoon told reporters. Universal banking puts retail, wholesale and investment banking services under one roof, providing cust

April 1, 2016

Seoul stocks open lower on foreign selling

South Korean share prices opened lower on Friday as large cap shares started bearish on foreign selling. Seoul share prices are displayed on an electronic board at the Korea Exchange. (Yonhap)The benchmark Korea Composite Stock Price Index slipped 5.37 points, or 0.27 percent, to 1,990.48 in the first 15 minutes of trading. As of 10:02 a.m., the index was trading 0.6 percent lower at 1983.81.Analysts said sentiment was down on foreign net selling, which stood at over 60 billion won ($52.4 millio

April 1, 2016

KB Financial wins bid to acquire Hyundai Securities

 KB Financial Group has emerged winner of the hotly contested takeover battle for Hyundai Securities, the sale’s manager announced Thursday. “KB Financial has been chosen as the preferred bidder,” accounting firm EY Han Young said in a statement. KB may have offered close to 1 trillion won for a combined 22.56 percent stake in the brokerage house, valued at around 340 billion won ($273.4 million) based on Thursday’s stock price of 6,875 won apiece. Hyundai Group is selling its stake -- owned by

March 31, 2016

Seoul stocks close lower on foreign selling

South Korean stocks closed 0.3 percent lower on Thursday after foreign investors sold large cap shares, analysts said. The local currency rose to a four-month high against the U.S. dollar.The benchmark Korea Composite Stock Price Index fell 6.29 points to close at 1,995.85. Trade volume was moderate at 322.88 million shares worth 4.84 trillion won ($4.23 billion), with losers outnumbering gainers 411 to 402. Samsung share prices are shown on an electronic board in front of the company’s headquar

March 31, 2016

Net profit of listed firms rose in 2015

Corporate profitability improved in 2015 as more Korean companies implemented cost-cutting measures. They also benefited from lower commodity prices, according to data from the Korea Exchange. The combined net profit of 516 firms listed on the benchmark Korea Composite Stock Price Index -- excluding financial firms and those that underwent mergers or divisions -- rose 3 percent from 2014 to 635 trillion won ($556 billion) last year. “After bottoming out in 2014, listed companies are showing bett

March 31, 2016

BOK expands dollar share of foreign exchange reserves in 2015

BOK expands dollar share of foreign exchange reserves in 2015Korea's central bank increased the portion of U.S. dollar-denominated assets in its foreign exchange reserves from a year earlier in 2015 amid the strengthening of the U.S. greenback, the Bank of Korea (BOK) said Thursday. Bank of Korea (Yonhap)In its annual policy report, the BOK said its dollar-denominated holdings accounted for 66.6 percent of its overall foreign reserves at the end of 2015, up 4.1 percentage points from 62.5 percen

March 31, 2016

Korean households' excess funds grow in 2015

Excess funds held by Korean households and non-profit institutions rose from a year earlier in 2015 backed by a rise in their income, central bank data showed Thursday.Excess funds held by households and non-profit institutions came to 99.2 trillion won ($86.5 billion) at the end of last year, up 5.7 trillion won from the previous year, according to preliminary data from the Bank of Korea (BOK). Apartment complex in Seoul (Yonhap)"Excess funds of households and non-profit institutions expanded f

March 31, 2016

Seoul stocks trading lower in late morning

South Korean share prices were trading lower in the late morning session on Thursday after opening higher on overnight gains in the U.S.The benchmark Korea Composite Stock Price Index was trading half a percent lower at 1991.85 as of 11:20 a.m.  Traders monitor Seoul stocks at a local bank. (Yonhap)The market got off to a strong start but the upward trend was weakened much by expanded net foreign selling, which came to over 50 billion won ($43.6 million).Overnight, the Dow Jones industrial avera

March 31, 2016

Rumors fly as winner still unknown in Hyundai Securities takeover race

Rumors are swirling over the auction of Hyundai Securities, with its seller, Hyundai Group, again delaying the announcement of a preferred bidder. The group said Wednesday it will unveil its choice on Friday, at the earliest, delaying the announcement initially scheduled for Tuesday for the second time. It needs more time to study offers, the group said. Three groups submitted their final offers by the March 25 deadline. They are KB Financial Group, Korea Investment Holdings and Hong Kong-based

March 30, 2016

KOSPI surpasses 2,000 on dovish Yellen

U.S. Federal Reserve Chair Janet Yellen’s dovish remarks that it will go slow with interest rate increases lifted stocks and bonds in Seoul on Wednesday, strengthening the case for a domestic rate cut. Bank of Korea Gov. Lee Ju-yeol said the country‘s monetary policy was supportive of economic recovery, but the economy may miss its growth target this year. The Korean benchmark stock index KOSPI rose to 2002.14 points, surpassing the 2,000-mark for the first time this year. Tech-loaded KOSDAQ was

March 30, 2016

[Newsmaker] Hanwha hits Doosan DST target

Hanwha Techwin has been chosen as a preferred bidder for Doosan DST by Doosan Group and DST’s sales manager Credit Suisse was perhaps fate, destiny or meant to be. Hanwha Techwin's K9 self-propelled howitzer (Hanwha Techwin)With most analysts, investment bankers and the defense industry having forecast Hanwha Techwin to win armored vehicle and missile launcher system developer DST, Techwin’s announcement Wednesday morning did not come as a surprise. This was because, as industry sources argued,

March 30, 2016

NH NongHyup offers checking account with no ATM charges

NH NongHyup Bank, which has the largest number of ATMs in Korea, said its recently-launched checking account would offer limitless ATM charge exemptions.The bank’s NH Main Transaction Preferential Account offers up to 2 percent annual interest with a minimum annual deposit of 1 million won ($866), the nation’s fourth-largest lender said. NH NongHyup Bank runs an event until March for customers who opened a new account in the bank or set an automatic transfer to the bank to give out 3,000 gifts.

March 30, 2016

NongHyup eyes global expansion

NongHyup Financial Group said Wednesday it is actively striving for global expansion focusing on Southeast Asia and China under the leadership of chairman Kim Yong-hwan.Since taking office last year April, chairman Kim has stressed global expansion especially during the sluggish financial domestic market and recognized NongHyup’s specialization in agricultural finance, according to the officials.  NongHyup Financial Group signs an MOU with Korea Rural Community Corp. in December last year. (Nong

March 30, 2016

Korean finance minister vows to contribute to anti-tax avoidance movement

Korea's finance minister said Wednesday that his country will increase participation in the global movement to cope with base erosion and profit shift (BEPS) issues in a bid to keep pace with global efforts to build a fair taxation system.BEPS refers to tax avoidance strategies employed by multinational companies that weaken a country's tax base. Finance Minister Yoo Il-ho (Yonhap)Last year, leaders of the Group of 20 agreed to give countries the tools they need to ensure that the so-called Goog

March 30, 2016