Stock-rich tycoons suffer huge valuation losses

South Korea's major stock-rich billionaires have suffered a sharp loss in the value of their share holdings in August amid a downturn in stock prices, data showed Sunday. The combined value of stocks held by the 30 wealthiest South Koreans reached 76.97 trillion won ($65.53 billion) as of Thursday, down 2.84 trillion won, or 2.6 percent, from end-July, according to the data compiled by market researcher Chaebol.com.  Over the two-week period, the Korea Composite Stock Price Index, the country's

Aug. 16, 2015

Watchdog head gets 2 yr prison sentence for taking bribe from Lone Star

SEOUL (Yonhap) – A local court sentenced the head of a private watchdog to two years in prison for taking bribes from Lone Star Funds in return for dropping protests over the U.S. firm's local deal and trying to help it settle a stock manipulation trial.The Seoul Central District Court ordered Jang Hwa-sik, the head of Spec Watch Korea, also to forfeit 800 million won (US$681,000), he received in 2011 from Yoo Hoe-won, former head of Lone Star's local unit."Despite fairness and integrity expecte

Aug. 13, 2015

S. Korea must complete labor market reform by year's end: finance minister

South Korea must complete labor market reform by the end of the year to help young people find jobs and raise the country's overall competitiveness, the top economic policymaker said Thursday.  In a meeting with lawmakers from the ruling Saenuri Party in Seoul, Finance Minister Choi Kyung-hwan claimed that reforming the country's rigid labor rules and allowing for more flexibility can give hope to the younger generation who are facing tough challenges.  The slowdown in growth and the move to rai

Aug. 13, 2015

BOK holds rate steady at 1.5 pct in Aug.

South Korea's central bank on Thursday left its benchmark policy rate steady at 1.5 percent as widely expected, amid growing concerns over the country's bulky household debt.  The Bank of Korea has been keeping the rate unchanged for two straight months following a surprise rate cut in June that was aimed at fending off the economic fallout from the Middle East Respiratory Syndrome.  The decision is in line with a poll by Yonhap Infomax, the financial news arm of Yonhap News Agency. All 11 analy

Aug. 13, 2015

Banks turn to SME loans for interest profits

Amid a record-low key interest rate, banks are increasingly expanding loans to small businesses and self-employed businesspeople, offering a relatively higher interest rate than private loans.During the first half of the year, the nation’s major banks saw a steep increase in the ratio of their small business loans as opposed to the total loan amount.Korea Exchange Bank had disbursed small and mid-sized enterprise loans worth 21.4 trillion won ($18.1 billion) from the beginning of the year throug

Aug. 12, 2015

Korea pushes harder for wage peak system

The government is increasing its pressure on the public sector to adopt the wage peak system within the year, hoping it would help create thousands of new jobs for young people.State-run organizations and public companies that take up the compromising wage system may receive extra credits in their performance evaluation and incentives when negotiating annual wage hikes, officials said Wednesday. They also warned that organizations that do not abide could face a near-zero salary increase, as well

Aug. 12, 2015

S. Korea to bask in China devaluation: finance minister

China's devaluation of its currency is expected to have a positive impact on the South Korean economy if it leads to increased exports for Beijing, Seoul's finance minister said Wednesday.  In an apparent bid to boost its exports, China's central bank devalued the yuan for the second day in a row, causing ripples of repercussion around the world.   Speaking to reporters following a meeting of economy-related ministers in Seoul, Finance Minister Choi Kyung-hwan said a weak yuan can actually help

Aug. 12, 2015

China devalues yuan for 2nd day, ignites fears of currency war

China's central bank devalued the country's yuan for a second day Wednesday to cushion the slowdown in the world's second-largest economy, while igniting fears of a currency war in Asia.  The daily reference rate for the Chinese currency was reduced to 6.3306 yuan against $1 on Wednesday from 6.2298 yuan on Tuesday, the People's Bank of China said in a statement.   The yuan's value against the U.S. dollar was lowered by 1.6 percent, following the devaluation of nearly 2 percent a day before.   C

Aug. 12, 2015

Finance minister stresses efforts to rev up growth

The government will put the top priority of its fiscal policy on revitalizing the slackening economy and make every effort to achieve an economic growth rate of 3 percent this year, the finance minister said Wednesday.  Chairing the fiscal policy strategy meeting in Seoul, Choi Kyung-hwan said that what is important at present is growth, making clear this goal takes precedence over the need to maintain a fiscal balance and calls to raise tax rates.  While the Middle East Respiratory Syndrome sca

Aug. 12, 2015

KOSPI dips below 1,990

South Korea’s benchmark stock index fell below the 2,000 mark for the first time in about five months Tuesday, in the wake of China’s artificial currency depreciation as well as a selling streak led by foreign and institutional investors. The KOSPI lost 16.52 points, or 0.82 percent, from the previous trading session to close at 1,986.65.This marked the first time the index stayed below the 2,000 mark since it posted 1,987.33 on March 16. The closing price Tuesday was the lowest since it touched

Aug. 11, 2015

Reforms critical for next economic leap: finance minister

South Korea should successfully push ahead with sweeping structural reforms if it wants to make the next leap forward, the top economic policymaker said Monday.  Speaking at the construction site of a railway line here, Finance Minister Choi Kyung-hwan said Asia's fourth-largest economy will be able to strive for growth only by making headway in changing the labor, finance, public and education sectors.   "If the country implements changes, per capita income could reach the US$30,000-40,000 rang

Aug. 10, 2015

BOK expected to freeze key rate amid household debt woes

South Korea's central bank is forecast to keep its benchmark interest rate unchanged at a record-low this month as it continues to keep its eyes on household debt risks and the impact of previous rate cuts that have so far proved to be ineffective in spurring growth, a poll showed Monday.  All 11 analysts and economists surveyed by Yonhap Infomax, the financial news arm of Yonhap News Agency, projected the Bank of Korea (BOK) to hold its policy rate steady at 1.5 percent at its monthly rate-sett

Aug. 10, 2015