Savings banks increase net profit

Local savings banks earned the highest net revenue in four years in 2015 from the wide spread between deposit and loan interest rates, the financial regulator’s data showed on Wednesday.The combined net profit of 79 savings banks came to 2.499 trillion won ($2.16 billion) last year, up 24 percent on-year, according to the Financial Supervisory Service. This marks a notable comeback in four years for the industry that had boomed to a near 3 trillion-won revenue in 2011 but went downhill following

March 30, 2016

Seoul stocks open higher on Yellen‘s comments

South Korean share prices opened higher Wednesday as investors were calmed by comments from the U.S. Federal Reserve chief Janet Yellen that ruled out an immediate rate hike.The benchmark Korea Composite Stock Price Index rose 9.78 points, or 0.49 percent, to 2,004.69 in the first 15 minutes of trading.The index was trading 0.55 percent higher at 2005.97 as of 9:55 a.m. On Tuesday, Yellen said at an economic club meeting in New York that she considers it “appropriate” for the Fed’s rate setting

March 30, 2016

[Market Now] Hanwha Techwin selected preferred bidder for Doosan DST

Hanwha Techwin, a listed defense manufacturer, has been chosen as the preferred bidder for Doosan DST, according to local news reports.Hanwha Techwin was said to have offered around 700 billion won ($600 million) for a 100 percent stake in Doosan DST owned by Doosan Group’s special purpose company DIP Holdings and private equity partners -- IMM and Mirae Asset.Hanwha had closely competed with LIG Nex1 over DST, which was put on sale by Doosan last year as the group was facing a liquidity shortag

March 30, 2016

[Graphic News] Korean card issuers’ 2015 net profit fell

Korean credit card firms saw their combined net profits shrink last year from a year earlier, marking the first fall in three years, as they spent more on services to attract customers amid tougher competition, data showed Wednesday.Eight credit card issuers posted combined profits of 2.158 trillion won ($1.86 billion) in 2015, down 7.5 percent from 2.178 trillion won the previous year, according to data from the Financial Supervisory Service.Despite an increase in revenue from interest rate cha

March 29, 2016

Creditors roll over debts for cash-strapped Hyundai Merchant Marine

Creditors, led by the state-run Korea Development Bank, decided Tuesday to give some breathing room for cash-strapped shipping company Hyundai Merchant Marine, by rolling over debts.A week ago, Korea’s No. 2 shipping operator sought the approval of its creditors for self-rescue measures to tide over its liquidity crunch.“Creditors decided to give a three-month maturity extension of principal and interest starting from March 29 and to select an outside institution to normalize management,” the KD

March 29, 2016

Samsung Life Insurance to move headquarters to Seocho

Samsung Life Insurance will relocate its headquarters in July to a corporate building in Seocho-gu, southern Seoul, following Samsung Electronics’ move to Suwon, Gyeonggi Province. The decision made by the country’s top life insurer will put an end to its 32-year stay in the firm’s signature structure on Taepyeong-ro in the center of the city.The move comes amid a broader effort by Samsung Electronics to cut corporate costs and boost efficiency as major divisions of the tech giant moved from the

March 29, 2016

Korean shares up 0.62% ahead of Yellen's speech

Korean stocks closed 0.62 percent higher Tuesday as downbeat U.S. economic data raised questions over a near-term rate increase by the Federal Reserve, boosting appetite for riskier assets, analysts said. The local currency rose against the greenback.The benchmark Korea Composite Stock Price Index (KOSPI) gained 12.37 points to close at 1,994.91. Trade volume was slim at 377.9 million shares worth 4 trillion won ($3.43 billion), with gainers beating decliners 531 to 261.Foreigners turned to net

March 29, 2016

LH to sell Niblo Barracks

Korea Land & Housing Corp plans to sell apartment buildings and land in Hanam-dong, Seoul. The state-run LH housing developer will put out a notice on March 30 for the auction of Niblo Barracks, which consists of more than 500 apartments, and 60,677 square-meters of land in the area owned by Korea’s Ministry of National Defense. Potential bidders will need to submit their bids from May 3-4. A preferred bidder will then have to pay in full for the real estate in five months or by installments wit

March 29, 2016

NH-CA Asset Management to enhance overseas fund sales

NH-CA Asset Management, a joint venture between NH Financial Group of Korea and Amundi of France, will strengthen its sales and marketing of overseas funds this year, with more weightage given to overseas stocks and alternative investments, its chief executive said Tuesday.CEO Han Dong-joo said the company hopes to raise its assets under management to 36 trillion won ($30.9 billion) this year from 29 trillion won in 2015, and hopefully to 60 trillion won by 2020.NH-CA Asset Management CEO Han Do

March 29, 2016

7 public funds to come under simultaneous long-term survey in 2018

 South Korea will conduct an integrated survey of its seven public funds' long-term fiscal estimation in 2018 in a bid to map out proper fund management plans based on an accurate assessment, the Ministry of Strategy and Finance said Tuesday.The survey by the National Pension Service and six others -- the Government Employees Pension Service, the Korea Teachers Pension, the Military Pension Service, the National Health Insurance Service, Workers' Compensation Insurance and Employment Insurance -

March 29, 2016

Korea to cut discretionary spending by 10% in 2017

South Korea has decided to cut the discretionary spending of government agencies by 10 percent next year in a bid to focus its fiscal policy on job creation, the finance ministry said Tuesday.The 2017 budget guidelines, which passed the Cabinet on Tuesday, call for a thorough examination of spending earmarked for public works projects and welfare outlays.Out of the nearly 380 trillion won (US$326.2 billion) of the state budget last year, some 53 percent, or 200 trillion won, is discretionary spe

March 29, 2016

[Market Now] Hanjin Shipping sells London office building to repay debt

Facing a liquidity shortage and high debt ratio, Hanjin Shipping, a listed subsidiary of Korean Air, has sold its London office building to an undisclosed real estate investment company, according to a regulatory filing.Hanjin Shipping Seoul office (Hanjin Shipping)The shipping company said that it would use the proceeds from the sale worth about 66.7 billion won ($57.4 million) to improve finances. Industry sources say this means that Hanjin Shipping would use the cash it secured from the sale

March 29, 2016

Seoul recoups less than 70% of public funds

Korea has recovered less than 70 percent of the public funds spent since the 1997 Asian financial crisis to bail out ailing firms, government data showed Tuesday.From November 1997 to December 2015, the government extended a total of 168.7 trillion won ($145 billion) in public funds to financially troubled companies hit by the 1997 and the 2008 financial crises, the Financial Services Commission said in a statement.   Financial Supervisory Service headquarters in Seoul (Yonhap)As of Dec. 31, the

March 29, 2016

Korean stocks open higher on foreign buying

Korean shares opened higher Tuesday after lackluster U.S. economic data lowered expectations of a near-term interest rate raise by the Federal Reserve.The benchmark Korea Composite Stock Price Index (KOSPI) added 6.07 points, or 0.31 percent, to 1,988.61 in the first 15 minutes of trading. Foreigners turned to net buyers following weaker-than-expected March jobs report from the U.S., while keeping an eye on a speech from Fed Chair Janet Yellen scheduled later in the day Securities and banks led

March 29, 2016

Eugene, Pine Tree form coalition for Tong Yang control

The takeover battle for Tong Yang Inc. took a dramatic turn Monday with its two largest stakeholders and former rivals for control of the building materials maker deciding to form a coalition against the current management ahead of a crucial shareholders meeting.Eugene Corp., the country’s top ready-mix concrete-maker, and Pine Tree Investment & Management, an asset management company specializing in nonperforming loans, agreed to wield their voting power though a combined 20.04 percent stake in

March 29, 2016

Korean shares edge down amid uncertainty over Fed policy

Korean stocks closed slightly lower Monday as investors took to the sidelines ahead of the Fed chair's speech that could provide clues to the U.S. central bank's monetary policy, analysts said. The local currency gained ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) shed 1.27 points, or 0.06 percent, to close at 1,982.54. Trade volume was moderate at 405.98 million shares, with losers beating winners 479 to 330.The market opened higher, but the gains were

March 28, 2016

Eximbank, Innovation Center to support start-ups

The Export-Import Bank of Korea and the Center for Creative Economy and Innovation in Seoul have joined forces to support start-ups to become global exporters in the fields of cosmetics, biotechnology, fashion and food.The state-run export financing bank said in a press statement Monday that it would provide financial consulting to Korean start-ups developing their businesses in those fields. The innovation center will do its part, and help and recommend start-ups to the Korea Eximbank for finan

March 28, 2016

[Market Now] Will Franklin Templeton exit monetary stabilization bonds?

To hold or not to hold Korea’s monetary stabilization bonds? -- this will be the question the local capital market will be asking foreign asset manager Franklin Templeton Investments this week.Korea’s MSBs worth 1 trillion won ($860 million) held by Franklin Templeton will mature on April 2, and it remains to be seen whether the asset manager will roll over, or redeem and exit its investment. The Bank of Korea issues MSBs to control market liquidity as part of its open market operations.Citing p

March 28, 2016

[KOSDAQ Star] Valuation worries weigh on Medy-Tox

This is the fifth in a series of articles analyzing the top 10 companies by market capitalization traded on the tech-heavy KOSDAQ market. --Ed.With a growing population seeking noninvasive cosmetic procedures, dermal filler and Botulinum toxin-maker Medytox has been bolstering its presence in Korea and abroad. The biopharmaceutical company, which manufactures and distributes an injectable neurotoxin for cosmetic use, posted a whopping 60.9 percent surge in annual operating profits last year, out

March 28, 2016

Outback Steakhouse back on auction block

Outback Steakhouse, the Australian-themed U.S. restaurant chain that led the American-style dining boom in Korea in the mid-1990s, is seeking an exit from Korea after 19 years of business here, local reports said. The U.S. Nasdaq-listed Bloomin‘ Brands, which owns the chain, will open preliminary bids for Outback Steakhouse Korea, with HSBC as its deal advisor. Outback Steakhouse Korea in 2014 ran nearly 110 restaurants across Korea, but the store count has now reduced to less than 70, suffering

March 28, 2016