The Korea Herald

Korean banks' capital ratio inches down in Q3

South Korean banks saw their financial health worsen slightly in the third quarter of this year from three months earlier due to a rise in risky assets, the financial watchdog said Wednesday. The average capital adequacy ratio of 18 commercial and state-run banks stood at 13.96 percent as of end-September, down 0.13 percentage points from the previous quarter, according to the Financial Supervisory Service. The ratio, a key barometer of financial soundness, measures the proportion of a bank's

Nov. 25, 2015

POSCO unit to ink Saudi auto biz deal early next year

Daewoo International, a trading unit of South Korea's steelmaking giant POSCO Co., will likely finalize a deal for its automotive business in Saudi Arabia early next year "at the latest," an industry source said Wednesday. It also plans to start building an assembly line for vehicles in the Middle East country within the next year as all necessary preparations have been made, according to the source close to the matter. "A deal for the automotive business in Saudi Arabia could be reached early

Nov. 25, 2015

Seoul shares open flat amid lack of events

South Korean stocks opened nearly flat Wednesday as investors sat on the sidelines waiting for market-moving events. The benchmark Korea Composite Stock Price Index edged up 0.12 point, or 0.01 percent, to 2,016.17 in the first 15 minutes of trading. No. 1 carmaker Hyundai Motor remained unchanged from the previous session, while Kia Motors shed 1.44 percent. Top auto-parts maker Hyundai Mobis added 0.4 percent. Top mobile carrier SK Telecom lost 0.21 percent, and KT moved down 0.5 percent. L

Nov. 25, 2015

Government to remove account settlement screening for foreign firms

The Financial Supervisory Service said on Tuesday that it will abolish the screening process on the account settlement of foreign financial firms as part of its efforts to ease financial regulations.The financial watchdog revealed the plan during a breakfast meeting between FSS Gov. Zhin Woong-seob and 21 chiefs of foreign financial companies operating in Korea. Zhin Woong-seob, governor of the Financial Supervisory Service. FSS“Over the past year, the FSS has been implementing a series of finan

Nov. 24, 2015

Government to remove account settlement screening for foreign firms

Seoul shares up 4th day on eased U.S. rate concerns

South Korea's stock markets gained 0.63 percent on Tuesday extending its winning-streak to a fourth day as uncertainty over the U.S. Fed's interest rate policy eased.The local currency rose against the greenback.The benchmark Korea Composite Stock Price Index advanced 12.59 points to 2,016.29. Trading volume was moderate at 406.9 million shares worth 4.27 trillion won ($3.7 billion), with gainers outpacing losers 434 to 368. Analysts said the eased uncertainties surrounding the U.S. rate policy

Nov. 24, 2015

Household credit hits all-time high in Q3

(123RF)South Korean household credit, or credit purchases and loans extended by financial institutions, reached an all-time high of 1,166.4 trillion won ($1.01 trillion) as of September, fueling concerns the country’s household indebtedness is outpacing the economy. 　According to the Bank of Korea’s latest quarterly report released Tuesday, household credit in the July-September period grew 3.0 percent, the same as in the previous quarter, when the growth rate hit its highest in 4 1/2 years.　Hou

Nov. 24, 2015

Household credit hits all-time high in Q3

Seoul shares up 0.44% in late morning trade

South Korean stocks traded 0.44 percent higher late Tuesday morning on the back of gains in techs and financial shares. The benchmark Korea Composite Stock Price Index rose 8.79 points to 2,012.49 as of 11:20 a.m. Top-cap Samsung Electronics added 1.01 percent, and major panel maker LG Display gained 5.24 percent. Samsung Electro-Mechanics climbed 1.42 percent. Brokerage houses also traded bullish, with Daewoo Securities rising 2.38 percent and Samsung Securities moving up 1.33 percent. NH In

Nov. 24, 2015

Dollar-deposits surge on Fed’s rate signal

U.S. dollar-denominated assets are gaining more popularity in the local market amid signs that the Washington-based Federal Reserve will raise the base rate at its Dec. 15-16 meeting.In contrast, investors’ interest in Korean won-denominated assets appears to be waning as shown by the recent trading of local stocks by foreigners. Both local and foreign investors are betting on the dollar’s sharp gains against the won.On a collective basis, four commercial banks saw individuals’ dollar-denominate

Nov. 23, 2015

[Graphic News] Cardholders shun cash advance service

Credit card holders are reluctant to use the cash advance service due to the high interest rates and alternative loan services, central bank data revealed on Monday.In the January-August period this year, the number of cash advance transactions by noncorporate credit card users stood at 66.5 million, down 8.5 percent from last year. Cash advance service, a type of card loan that allows cardholders to withdraw quick-and-easy cash from an ATM and pay back later, is now losing steam due to its high

Nov. 23, 2015

[Graphic News] Cardholders shun cash advance service

U.S. dollar deposits rise ahead of apparent rate hike

U.S. dollar-denominated savings by local residents increased at a record rate last month as people apparently expect the greenback to strengthen following what many see as an imminent U.S. rate hike, market observers said Monday. As of the end of October, U.S. dollar deposits held by local residents came to $49.45 billion, according to data released earlier by the Bank of Korea. The October tally marks a 13.8 percent increase from the previous month, the fastest on-month rise in the country's

Nov. 23, 2015

Stock-lending ban on NPS likely to face bumpy road

Some lawmakers are striving to bar the nation’s largest state pension fund from being exploited as a tool for local institutional investors’ routine massive short-selling of stocks of a large portion of firms listed on the Korea Exchange and KOSDAQ.The motion to prohibit the National Pension Service from lending some of its stake in listed companies was brought to the National Assembly’s Health & Welfare Committee on Nov. 9. It was proposed by Rep. Hong Moon-pyo from the ruling Saenuri Party in

Nov. 22, 2015

Stock-lending ban on NPS likely to face bumpy road

KDB suggests hardline restructuring measures

Korea Development Bank, the largest state-run bank in assets, is in a fix. Not only is it suffering the financial consequences of the high level of nonperforming loans caused by insolvent debtors, but it is also facing growing government pressure to improve financial soundness.Determined to mark a rebound within his term of office, chairman Hong Ky-ttack is set on an extensive restructuring, selling off the bank’s bad loans and cutting down on the pay of senior employees, including himself. KDB'

Nov. 20, 2015

KDB suggests hardline restructuring measures

Customs office nabs cigarette smugglers

The Korea Customs Service said Thursday that it detected and handed over to prosecutors a group of smugglers who illegally reimported some 3 billion won ($2.6 million) of Korean cigarettes from China.A 54-year-old Korean national surnamed Kim, along with 10 accomplices, smuggled in October-December last year 16,000 packs of Korean cigarettes that had earlier been exported to China and Hong Kong, according to the customs office.The gang also manufactured some 50,000 packs of counterfeit Korean ci

Nov. 19, 2015

Seoul shares vault 1.3% on FOMC minutes

South Korean stocks jumped more than 1.3 percent Thursday as uncertainties surrounding the U.S. Federal Reserve's policy direction eased following the release of its minutes that hinted at a potential rate hike. The local currency closed higher against the greenback.The benchmark Korea Composite Stock Price Index advanced 26.03 points to 1,988.91. Trading volume was moderate at 414.7 million shares worth 5.06 trillion won ($4.32 billion), with gainers outpacing losers 587 to 231.The Federal Open

Nov. 19, 2015

Korea's foreign exchange trading dips 9.7% in Q3

Spot trading of foreign currencies by banks in South Korea fell nearly 10 percent on-quarter in the third quarter largely due to a cut in won-yuan transactions prompted by the country's dwindling exports to China, central bank data showed Thursday.Daily spot trading volume came to $19.69 billion in the three months ended Sept. 30, according to the Bank of Korea.The Q3 tally marks a 9.7 percent drop from a record $21.8 billion in the second quarter.The drop was mostly attributed to a 29.3 percent

Nov. 19, 2015

Seoul shares up 1% in late morning trade

South Korean stocks traded 1 percent higher late Thursday morning on the back of strong gains in technology firms and mobile carriers.The benchmark Korea Composite Stock Price Index added 19.64 points to 1,982.52 as of 11:20 a.m.Market behemoth Samsung Electronics rose 0.23 percent, and top chipmaker SK hynix added 1.96 percent. LG Electronics climbed 3.87 percent.Top mobile carrier SK Telecom moved up 1.3 percent, and No. 2 KT advanced 1.03 percent. LG Uplus, the smallest player, shot up 4.88 p

Nov. 19, 2015

Foreign ownership of Samsung Electronics hits 19-month low

Foreign holdings of Samsung Electronics Co. have dropped to the lowest level in 19 months, data showed Thursday, amid the tech giant's stock buyback and unfavorable external conditions.Offshore investors owned 50.5 percent of Samsung Electronics shares as of Tuesday, marking the lowest since April 22 last year when the figure came to 50.48 percent, according to data by the Korea Exchange. Foreign stock ownership of the top-cap company on the main stock market here has been on the decline since J

Nov. 19, 2015

Seoul shares open higher on tech, steel

South Korean stocks started higher Thursday on the back of technology companies and steelmakers, shrugging off concerns of additional terrorist attacks in Paris.The benchmark Korea Composite Stock Price Index added 11.58 points, or 0.59 percent, to 1,974.46 in the first 15 minutes of trading.Samsung Electronics increased 0.47 percent, and its smaller rival LG Electronics climbed 1.11 percent. Chip giant SK hynix rose 0.65 percent.No. 1 steelmaker POSCO advanced 1.19 percent, and Korea Zinc moved

Nov. 19, 2015

FSC to limit ‘high’ insurance payments for high-end cars

(123RF)South Korean financial authorities are pushing to reduce the “excessive” insurance payments to owners of high-end cars involved in an accident, officials said Wednesday.　For this, the Financial Services Commission plans to change relevant regulations on the insurance-covered repairing and compensation of damaged vehicles.　“The rising number of luxury cars, especially the foreign-brand vehicles, has triggered a number of unfair practices in car insurance coverage,” said FSC director Lee Do

Nov. 18, 2015

FSC to limit ‘high’ insurance payments for high-end cars

Weak exports could hinder Korea’s long-term growth: Moody’s

Global rating agency Moody’s said Wednesday that slowing export momentum and consumer confidence could hinder South Korea’s long-term economic growth.The agency, however, kept the country’s sovereign credit rating at Aa3, citing strong fiscal conditions especially for private nonfinancial companies.“The robust earnings that many Korean private companies have shown in 2015 will continue into 2016,” said Moody’s Investors Service associate managing director Chris Park in an economic forecast brief

Nov. 18, 2015

Weak exports could hinder Korea’s long-term growth: Moody’s