South Korean shares open lower

South Korean stocks started lower on Wednesday as investor sentiment turned downbeat on a drop in oil prices and weak Chinese economic data. The benchmark Korea Composite Stock Price Index shed 5.51 points, or 0.28 percent, to 1,940.61 in the first 15 minutes of trading. An investor monitors South Korean share prices displayed on an electronic board at the Korea Exchange in Seoul. (Yonhap)The index soon picked up, trading almost flat at 1946.85 points as of 10:23 a.m. Market heavyweights across

March 9, 2016

[Graphic News] Korea tops emerging market household debt list

 Korea has one of the highest levels of household debt relative to gross domestic product among advanced and newly emerging economies, a report showed Tuesday. According to a quarterly report by the Bank for International Settlements, Korea had the eighth-highest household debt-to-GDP ratio among 41 rich and emerging countries.Out of the 17 emerging countries in the list, Korea came top for the 13th consecutive year, with 87.2 percent, followed by Thailand with 70.8 percent and Malaysia with 70.

March 8, 2016

Corporate Korea ups dividends

This is the first installment of a three-part series looking into Korean companies’ dividend payout policies, the reasons behind them and future prospects. -- Ed.Corporate Korea, infamous for being stingy in returning profits to shareholders, is warming to investors with a sizable dividend boost this year, as its obsession with growth fades and a new law discouraging cash hoardings is being enforced. Year-end cash dividends are up 28 percent so far this year, pushing the total to a new record of

March 8, 2016

Korean stocks down 0.6% on China woes

Korean shares fell 0.6 percent on Tuesday as China's export slump accelerated in February, sparking concerns over deepening woes in the world's No. 2 economy, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) shed 11.75 points to finish at 1,946.12. Trading volume was moderate at 354 million shares worth 4.84 trillion won ($4.01 billion), with losers beating gainers 401 to 391.China's overseas shipments dipped more than 25 perc

March 8, 2016

Logen Logistics to open bids for sale this month

Logen Logistics, a privately held package delivery company, is expected to open preemptive bids from potential buyers on March 17, according to news reports. Corporate logo of Logen Logistics (Logen)Shuttle Korea Holdings, a wholly owned investment firm of Hong Kong-based Baring Private Equity Asia, has a 100 percent stake in Logen, according to an audit filing. J.P. Morgan is Baring Private Equity’s adviser for the sale of Logen.Shuttle Korea did not respond for comments, and J.P. Morgan could

March 8, 2016

Young households suffer income decrease in 2015

Households headed by those in their 20s and 30s in South Korea saw their income decline for the first time last year amid a toughened job market, government data showed Tuesday.Households led by those under 39 years of age with family members of two or more earned a monthly average of 4.32 million won ($3,600) in 2015, down 0.6 percent from a year earlier, according to the data compiled by Statistics Korea.It is the first time that the monthly average income for households led by those in their

March 8, 2016

Foreign bank branches' net rises 3.5% on derivatives

Foreign bank branches in Korea posted a 3.5-percent on-year gain in their combined net profit last year aided by an increase in derivative investment gains amid a strong dollar, the financial regulator said Tuesday.For the whole of 2015, 39 foreign banks operating here reported a preliminary net income of 1.130 trillion won ($939 million) from 1.091 trillion won a year earlier, the Financial Supervisory Service (FSS) said in a statement. Financial Supervisory Service in Seoul (Yonhap)Banks headq

March 8, 2016

Lotte chairman cements grip after lengthy succession feud

The prolonged family feud at Korean retail giant Lotte Group has virtually come to an end as the founder's second son and incumbent chief won shareholder support to tighten his grip on the sprawling business empire, according to company officials and observers Tuesday. Lotte chairman Shin Dong-bin has been mired in a succession battle with his elder brother, Dong-joo, who has waged a series of legal battles and negative media campaigns after being stripped of his senior posts at Tokyo-based Lott

March 8, 2016

Chinese firms eye Korean insurers in M&A spree

Chinese insurers are seeking to tap into the Korean market by pursuing outright mergers and acquisitions as a flurry of deals are expected here amid deteriorating market conditions, sources said Monday.Faced with worsening profits in a saturated domestic market, a handful of Korean life insurance companies and Korean units of foreign firms -- including ING Life, Allianz Life and PCA Life -- have been put up for sale.Since Beijing-based Anbang Insurance Group bought a controlling stake in Korea’s

March 7, 2016

Key bidder may pass up sale of Hyundai Securities

Hyundai Group on Monday set March 24 as the deadline for binding bids for a controlling stake in its brokerage arm Hyundai Securities, but a key potential buyer said it may not participate due to pricing difficulties. Korea Investment Holdings, one of the six groups currently conducting due diligence for the combined 22.56 percent stake being sold, said it is having difficulty looking into Hyundai Securities’ financial health, as it was denied access to information on its project financing deals

March 7, 2016

Korean stocks edge up on U.S. jobs data

Korean shares inched up on Monday as upbeat jobs data from the United States and a rebound in global oil prices improved investor sentiment here, analysts said.The local currency rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) added 2.24 points, or 0.11 percent, to finish at 1,957.87. Trading volume was moderate at 340 million shares worth 4.6 trillion won ($3.83 billion), with gainers beating losers 462 to 358.U.S. non-farm payrolls increased 242,000 jobs la

March 7, 2016

Korean shares up 0.3 percent in late morning

Korean share prices rose 0.3 percent late Monday morning on gains in chemicals, oil refiners and finance firms.The benchmark Korea Composite Stock Price Index was trading 0.31 percent higher at 1961.61 points as of 11:40 a.m. South Korean share prices are displayed on an electronic board at the Korea Exchange in Seoul. (Yonhap)Top market cap Samsung Electronics edged up 0.41 percent. LG Chem, the country’s leading chemicals firm, rose 0.34 percent and top oil refiner SK Innovation added 3.34 per

March 7, 2016

BOK likely to hold key rate steady in March: poll

Korea's central bank will likely hold its policy rate steady for another month in March amid growing concerns over mounting household debts, a poll showed Monday.In a poll conducted by Yonhap Infomax, the financial news arm of Yonhap News Agency, 11 out of 19 economists surveyed projected the Bank of Korea (BOK) to keep its key rate frozen at 1.5 percent at its monthly rate-setting meeting scheduled for Thursday. Bank of Korea (Yonhap)The BOK has stood pat on its key rate since June after slashi

March 7, 2016

KRX probes suspicious trading of Doosan shares

The nation’s stock exchange operator said Friday it has launched a probe into suspicions that shares of Doosan Group and its affiliates were unfairly traded on the day the conglomerate announced a leadership succession plan.Doosan Group chairman Park Yong-maan said he would hand over his top position to his nephew Park Jeong-won at around 2:40 p.m. on Wednesday. But the share prices of the group and its affiliates started to surge earlier in the day -- even hours before the announcement was made

March 4, 2016

Banks, brokerages to battle it out over new savings accounts

Banks and securities companies will face head-on when Korea introduces later this month individual savings accounts -- a new, tax-effective tool for saving and investing in an era of abysmal interest rates and volatile capital markets. According to the regulator Financial Services Commission on Friday, a total of 35 institutions – 14 banks and 21 brokerages – are preparing to launch ISA products. Thirty-three will start sale immediately upon the scheme’s official introduction on March 14.  (Yonh

March 4, 2016