Shareholders approve Hana Bank-KEB merger

Looking at an imminent merger, the two flagship banks of Hana Financial Group respectively held extraordinary shareholders’ meetings Friday to approve the merger agreement and the consequent revisions of their articles of association.The name of the incoming bank will be KEB-Hana Bank, as KEB will be the embracing body, while Hana Bank will be folded in and cease to exist.Hana Financial Group chairman Kim Jung-tae and Hana Bank president Kim Byoung-ho were added to KEB’s board of directors, wher

Aug. 7, 2015

Banks race to expand nonbanking business

Banking groups are racing to expand their nonbanking business portfolio to prepare for the likelihood that their interest margins may no longer sustain growth.The results for the first half of this year once again showed that those with a wider spread of businesses turned out victorious in the market.Late last month, Shinhan Financial Group said that it recorded a net profit of 1.3 trillion won ($1.1 billion) in the January-June period this year, up 13 percent from the same period last year.It n

Aug. 6, 2015

Korea Eximbank takes hit for DSME loss

As a major lender to the nation’s shipbuilding industry, Export-Import Bank of Korea has been hugely affected by the huge operating loss recorded by Daewoo Shipbuilding and Marine Engineering.Not only is the state-run bank taking the blame for overlooking the shipbuilder’s faulty management, but it is also reeling from a worsening financial soundness, and likely to face a special audit in the worst case.Financial authorities are currently considering making additional investments in Korea Eximba

Aug. 5, 2015

Lotte group shares seesaw on succession feud concerns

Shares of Lotte Group units have been fluctuating amid a succession feud between brothers as investors fidget over the family-run conglomerate's murky governance structure and management risks, market watchers said Tuesday. While core affiliates briefly enjoyed a rally on speculation that the founder's two sons would increase their stakes to take control of the retail giant, the unfolding drama rather has highlighted risks related to investing in the companies largely shrouded in secrecy. Seoul-

Aug. 4, 2015

Nonghyup Financial eyes Indonesian, Myanmar bank

Nonghyup Financial Group Inc., South Korea's fourth-largest banking group by assets, is considering buying banks in Indonesia and Myanmar in a bid to expand its overseas business and diversify its portfolio, the group's chairman said Monday.Nonghyup Financial is the biggest state-run agricultural cooperative whose stakeholders include farms and other agricultural businesses. It is expanding its business from commercial banking to brokerages, insurance and asset managing. Its flagship Nonghyup Ba

Aug. 3, 2015

Financial workers’ union resists wage peak system

The labor union of bank employees has demanded that banks extend the retirement age with no strings attached, lashing back at mass restructuring and the incoming wage peak system.As most banks are pledging to slim down by all means and introducing voluntary retirement schemes, the request is likely to be turned down but it may possibly affect the few banks that have not yet adopted the wage peak system.Under this system pushed by the government, the retirement age has been extended to 60 from th

Aug. 2, 2015

Seoul shares to move in narrow range next week

South Korean stocks are likely to trade in a tight range next week, affected by lackluster corporate earnings and continuous selling by foreign investors, analysts said Saturday.   The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,030.16 on Friday, falling 15.80 points, or 0.77 percent, from a week earlier.    The index was mostly driven by corporate earnings announced for large-cap shares throughout this week, while the local currency's descent against the U.S. dollar helped b

Aug. 1, 2015

Cautions issued on KOSDAQ investors

Many analysts are cautioning against investing in stocks on the secondary KOSDAQ, which has been continuously bullish since early this year.Describing the rally of the market -- which mostly trades stocks of small and medium-sized companies -- as an extraordinary bubble, they warn it could pop later this year and bring about heavy losses to small investors.A research analyst on TV stressed Friday that some individuals are forced to dispose their stocks at low prices after investing in the market

July 31, 2015

Insurers seek to expand to banking services

Amid low interest rate margins, banks are increasingly moving toward a complex financial store system, incorporating additional functions such as securities and insurance, starting from August.To consumers, this means a convenient one-stop channel to arrange their financial issues. But to nonbanking operators, it may result in an infringement on their conventional business fields by large-sized banking groups. To counter the handicap, insurers are now seeking to provide banking services.Insurers

July 29, 2015

More banks adopting ‘peak wage’ system

Distressed by their aging manpower and stagnant personnel structure, banks are increasingly adopting the “peak wage” system, but its range and effects remain limited.Under this system, companies pay senior employees reduced salaries after they peak at a certain age, generally between 55 and 60, in return for extending their retirement age by a few years.NH Financial Group, the nation’s agricultural cooperative-affiliated banking group, decided last week to adopt the peak wage system starting fro

July 28, 2015

Eased mortgage rules extended to July 2016

Regulators have decided to extend a set of deregulations on mortgages or housing-collateralized loans -- introduced on Aug.1, 2014 -- by a year from the scheduled expiry date of end-July.The Financial Supervisory Service on Tuesday said in a statement that it would extend the eased home loan-application rules by another year until the end of July 2016.But the extension of eased rules is raising questions about the consistency in policies as only weeks ago authorities pledged to curb the record h

July 28, 2015

Tighter lending rules may stunt Korea's 2016 growth: Moody's

South Korea's move to tighten lending rules to curb ballooning household debt will likely improve its long-term financial stability, but it may drag down next year's growth by denting private consumption, Moody's Investors Service said Tuesday. The government last week announced a set of measures to manage the nation's rapidly rising household debt, prodding banks to extend fixed-rate, amortized loans and adopt tougher screening rules on borrowers starting from the latter half of 2016. The lates

July 28, 2015

Financial regulators to hold investigative power

Starting from August, financial officials will be able to directly investigate cases of unfair stock trading.So far, they have referred such cases to police or the prosecution as they have no investigative authority.This incoming change reflects investigators’ recognition that complicated financial transactions are better suited for specialists with actual field expertise.Last week, the National Assembly passed the revised judicial police law, which grants special investigation power to official

July 27, 2015

Korea’s per capita GDP may shrink in 2015

By Chung Joo-won South Korea’s per capita gross domestic product this year may fall for the first time in six years on the weak won and lackluster growth, a private think tank said Monday. The LG Economic Research Institute, the research arm of LG Group, estimated Korea’s per capital GDP in 2015 at $27,600, down 1.8 percent from 2014. The think tank attributed the fall to the appreciation of the U.S. dollar against Korean won. The per capita GDP, a dollar-denominated index, decreases when the Ko

July 27, 2015

Seoul shares down 0.35 pct on brokerage, pharma losses

South Korean stocks closed down 0.35 percent on Monday as brokerages and pharmaceuticals dropped amid deteriorating investor sentiment over their business conditions, analysts said. The won gained ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index lost 7.15 points to 2,038.81 after moving in and out of positive terrain. Trading volume was heavy at 534.1 million shares worth 6.24 trillion won ($5.35 billion), with decliners outnumbering gainers 638 to 193."Brokerage sh

July 27, 2015

Conglomerates’ stock value plunges W40tr

The nation’s 10 biggest business groups saw their market capitalization on the main bourse drop sharply over the past few weeks or months in the wake of lackluster exports and foreigners’ net-selling streak.According to Chaebol.com, a conglomerate data tracker, listed units of the 10 conglomerates lost about 40 trillion won ($34.4 billion) in their collective market capitalization this year to date.It fell by 5.5 percent from 719.6 trillion won on Jan. 2 to 679.6 trillion won as of July 23.The m

July 26, 2015