The Korea Herald

Yuan’s SDR status may fuel won’s volatility

Local analysts forecast Wednesday that the Chinese yuan’s inclusion in the IMF’s reserve-currency basket could significantly affect Korea’s capital market.They said if the special drawing rights reserve-currency status is bestowed on the yuan it could increase the level of volatility in the domestic financial market. “Ahead of the U.S. rate-setting in December, the local market should look at whether or not the yuan is included in the SDR currency basket later this month,” said Yuanta Securitie

Nov. 18, 2015

Yuan’s SDR status may fuel won’s volatility

Seoul shares close flat on U.S. rate woes

South Korean stocks closed nearly flat Wednesday as the market's recovery from the Paris terrorist attacks was limited by concerns over a rate hike in the United States. The local currency closed lower against the greenback.The benchmark Korea Composite Stock Price Index edged down 0.7 point, or 0.04 percent, to 1,962.88. Trading volume was moderate at 531 billion shares worth 4.43 trillion won ($3.79 billion) with losers outpacing gainers 487 to 311.The local stock market recovered from a brief

Nov. 18, 2015

Seoul shares flat in late morning trade

South Korean stocks traded nearly flat late Wednesday morning as investors sat on the sidelines over uncertainties surrounding the U.S. Fed's rate policy.The benchmark Korea Composite Stock Price Index added 1.22 points, or 0.06 percent, to 1,964.80 as of 11:20 a.m.Tech shares traded mixed, with Samsung Electronics rising 0.31 percent. Top chipmaker SK hynix slid 1.14 percent, and LG Electronics shed 1.81 percent to 54,200 won.Mobile carriers were also mixed, with SK Telecom losing 0.86 percent

Nov. 18, 2015

Seoul shares open higher on tech, autos

South Korean stocks started higher Wednesday on the back of gains in tech and autos, continuing to recover from a brief dip earlier this week from the Paris terrorist attacks.The benchmark Korea Composite Stock Price Index added 4.84 points, or 0.25 percent, to 1,968.42 in the first 15 minutes of trading.Market behemoth Samsung Electronics climbed 1.02 percent, and LG Electronics advanced 0.36 percent. Samsung SDI climbed 1.75 percent.No. 1 carmaker Hyundai Motor added 1.59 percent, and its sist

Nov. 18, 2015

Korean insurers net jumps 17.3% through Sept.

South Korean insurance companies saw their net income jump 17.3 percent in the first nine months of the year from a year earlier on gains from investment, the financial watchdog said Wednesday.The combined net income of local life and non-life insurers reached 6 trillion won ($5.1 billion) in the January-September period, compared with 5.1 trillion won the previous year, according to the Financial Supervisory Service.Life insurance firms posted a 19.6 percent on-year rise in profit to 3.7 trilli

Nov. 18, 2015

Shadow regulation and financial reforms

This is the seventh in a monthly series contributed by executive members of the Financial Supervisory Service to address key ongoing financial issues. ― Ed.By Kim Young-kiWe have often heard of “shadow banking,” which is considered to trigger financial crises. Now “shadow regulation,” the regulatory version of shadow banking, has become a familiar term. The word “shadow” is mostly taken in a negative context that symbolizes darkness and unconsciousness, much in contrast with “light.”Due to its f

Nov. 17, 2015

KB holds SME job fair

KB Kookmin Bank opened its biannual job fair Tuesday in an effort to help resolve the manpower shortage of small and medium-sized enterprises and to lower unemployment.The two-day 10th KB Good Job Fair was held at Songdo Convensia in Incheon, inviting some 200 blue chip companies and over 20,000 job-seeking youths, according to officials. KB Kookmin Bank holds KB Good Job Fair at Songdo Convensia, Incheon, on Tuesday. KB Financial GroupThe participating companies are top-ranking SMEs selected by

Nov. 17, 2015

Rising household debt weighs down sputtering economy

The Bank of Korea’s decision last week to freeze its benchmark interest rate at a record low of 1.5 percent for five consecutive months has been seen by many economists here as signaling a possible turnaround from its policy tuned to help boost the growth momentum of the country’s economy. Since August 2014, the central bank has cut the rate on four occasions by a total of 1 percentage point.After the latest rate-freeze decision was announced Thursday, a BOK official said it was clear that its n

Nov. 17, 2015

Rising household debt weighs down sputtering economy

Internet banks given grace period for financial soundness requirements

(123RF)Financial authorities have decided to give a three-year grace period to the nation‘s first Internet-only banks to meet financial soundness requirements in a move to nurture the new financial industry. 　The Financial Services Commission said Tuesday that the Internet-only banks will face lower financial soundness requirements compared to their brick-and-mortar peers. 　The grace period, which will end in 2019, aims at giving the new banks time to lodge themselves in the financial market tha

Nov. 17, 2015

Internet banks given grace period for financial soundness requirements

[Photo News] Combat female cancer

COMBAT FEMALE CANCER -- AIA Life Korea CEO Daniel L. Costello (fifth from left) poses with Ewha Womans University Cancer Center for Women chief Paik Nam-sun (sixth from left), officials and a female patient after delivering a 180 million won ($154,000) donation fund for female cancer patients. (AIA Life Korea)

Nov. 17, 2015

Private investors suffer losses from liquidation sales

Amid a plunge in the domestic stock market, private investors who purchased stocks on loans are suffering losses due to liquidation sales.According to the Korea Financial Investment Association on Tuesday, the number of liquidation sales has soared this month, reflecting the growing concerns on the upcoming U.S. interest rate hike.Liquidation sales refer to the sell-off of stocks that a securities company executes in order to make up for the differences, should a credit-purchaser fail to make th

Nov. 17, 2015

Chaebol families profit from duty-free race

(123RF)The chaebol families of Shinsegae Group and Doosan Group earned fast fortunes on the stock market following the government approval of their bids to run duty-free shops in Seoul. Shinsegae chairwoman Lee Myung-hee and her chaebol family made a total of 100 billion won ($85.5 million) in just two days prior to the government announcement, with a 16 percent jump in the retail giant’s stocks. On the second day of those two days, Shinsegae stock prices jumped as high as 12.06 percent.Of the 1

Nov. 17, 2015

Chaebol families profit from duty-free race

Seoul shares up 1.27% in late morning trade

South Korean stocks traded 1.27 percent higher late Tuesday morning on the back of gains in techs and financial shares.The benchmark Korea Composite Stock Price Index added 24.66 points to 1,967.68 as of 11:20 a.m.Market behemoth Samsung Electronics advanced 1.03 percent, while its smaller rival LG Electronics increased 3.53 percent. LG Display added 2.43 percent. Shinhan Financial moved up 2.78 percent, and KB Financial increased 1.01 percent. Hana Financial rose 0.58 percent.The local currency

Nov. 17, 2015

Shinsegae to open new duty-free shop in April

South Korean retail giant Shinsegae said Tuesday it will open a new duty-free store in downtown Seoul in April after facility renovation, stepping up its efforts to lure customers away from its bigger rivals. After beating SK Networks to take over its Seoul license on Saturday, Shinsegae Duty Free has started preparations to open a new outlet at its flagship department store in Myeongdong, a major shopping district in the capital.It is the first time for Shinsegae to open a duty-free store in th

Nov. 17, 2015

Seoul shares open higher on Wall Street gains

South Korean stocks started higher Tuesday as investors scooped up undervalued shares on overnight gains on Wall Street, shrugging off potential fallout from the Paris terrorist attacks, analysts saidThe benchmark Korea Composite Stock Price Index added 21.06 points, or 1.08 percent, to 1,964.08 in the first 15 minutes of trading.Top steelmaker POSCO advanced 1.81 percent, and Korea Zinc added 0.11 percent. No. 2 steelmaker Hyundai Steel climbed 1.41 percent.Market behemoth Samsung Electronics i

Nov. 17, 2015

Park calls for careful adjustment of monetary policy

President Park Geun-hye called Monday for a careful adjustment of monetary policies of advanced countries amid lingering worries over a potential Fed rate hike.Last month, the U.S. Federal Reserve kept interest rates at near zero due to global headwinds but suggested that it could raise rates by the end of the year."The normalization of monetary policies of advanced countries should be adjusted in a careful and gradual manner by taking into account their impact on the world economy," Park said i

Nov. 17, 2015

Performance pay at local banks triggers resistance

(123RF)In an effort to boost the competitiveness of domestic banks, financial authorities have decided to introduce a performance-based evaluation and to gradually discontinue the conventional salary class system, starting with state-run banks within the year.　Labor unions, however, are arguing that the performance-related pay is incompatible with the banking industry.　The Financial Services Commission said Monday that it will announce within the year a set of plans to expand the performance-bas

Nov. 16, 2015

Performance pay at local banks triggers resistance

Smartphone banking subscribers top 60m

(123RF)The number of subscribers for South Korean mobile banking services reached 60 million in the third quarter, central bank data revealed on Monday.　According to the Bank of Korea’s July-September quarterly report on online banking, the number of smartphone banking subscriptions for 16 commercial banks operating here and the Korea Post reached a combined 60.08 million as of end-September, up 4.4 percent over the previous quarter. 　As of end-September, 62.3 percent of all 115.3 million Intern

Nov. 16, 2015

Samsung to face hurdles in keeping 20% smartphone share: S&P

Top smartphone maker Samsung Electronics Co. is expected to face challenges in keeping its 20-percent level market share around the globe due mainly to growing rivalry from Chinese firms, a credit appraiser said Monday.Standard & Poor's said Samsung is set to face challenges as the barriers in the smartphone industry against Chinese firms have weakened."These companies, and an increasing number of other smartphone makers, now offer good-quality smartphones at affordable prices, benefiting from c

Nov. 16, 2015

Seoul ready to fend off financial fallout of Paris terror

The South Korean government said Monday that it will heighten monitoring of the local economy and financial market and if necessary, it will take action to fend off any fallout from the terrorist attacks in Paris that killed more than 120 people.At least 129 people were reported dead on Friday (local time) following several separate terror attacks in and around the French capital, apparently committed by the Islamic State extremist group.In a hastily arranged meeting, the finance ministry said t

Nov. 16, 2015