S. Korean stocks to remain dull on Greek uncertainties

    The South Korean stock market is anticipated to remain sluggish next week due to prolonged uncertainties over the Greek debt issue, analysts said Saturday.    The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,090.26 points on Friday, up 2.1 percent from a week earlier.    This week, Seoul shares have started higher as investors highly anticipated that Greece would make a compromise with its international creditors over its debt rollover issue which has been weighing down on

June 27, 2015

Private lenders, savings banks lash back at state-led overhaul

The government’s recent financial reform plan which focuses on reinforcing the competitiveness of banking groups triggered a backlash from the secondary market, including private lenders and mutual savings banks.Loan companies reacted against lowering the interest rate ceiling, while small-sized savings banks claimed to be discriminated against bigger units affiliated with a holding company.The Financial Services Commission said earlier this week that it will lower the maximum interest rate for

June 26, 2015

Seoul shares end slightly higher on gov't stimulus

South Korean stocks closed slightly higher Friday as investors' sentiment was boosted by the government's announcement of a stimulus plan, but the gain was limited by Greek debt woes, analysts said. The local currency lost ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) added 5.20 points, or 0.25 percent, to 2,090.26. Trading volume was moderate at 485 million shares worth 6.24 trillion won ($5.59 billion), with losers outpacing gainers 516 to 290.Seoul sha

June 26, 2015

Government picks 12 banks to boost expand won-yuan trading

A total of 12 banks have been picked to expand South Korea's won-yuan direct transaction market that is critical for the country becoming an overseas trading hub for the Chinese currency, the government said Friday.The finance ministry said seven local banks and five foreign lenders operating in the country have been authorized to conduct direct currency transaction in the second half.The local banks are KB Kookmin Bank, Shinhan Bank, Woori Bank, Korea Development Bank, Industrial Bank of Korea,

June 26, 2015

Shinhan Financial issues CoCo Bond worth W200b

Shinhan Financial Group, the nation’s largest banking group by assets and profits, said Thursday it began issuing a contingent convertible bond, or CoCo Bond, which combines debt and equity.Despite its relatively long maturity of 30 years, the bond attracted a number of institutional investors, pushing the group to up the issue limit from 200 billion won ($180 million) to 282 billion won, according to officials.It offers an interest rate of 4.38 percent (at 190 basis points over a 10-year Treasu

June 25, 2015

Seoul shares edge down amid Greek debt woes

South Korean stocks closed a tad lower Thursday as investor sentiment was dented by the stalled talks on a Greek bailout, analysts said. The local currency lost ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index shed 0.47 points, or 0.02 percent to 2,085.06. Trading volume was moderate at 565.3 million shares worth 5.83 trillion won ($5.25 billion), with losers outpacing gainers 406 to 402.The KOSPI had gained ground for the sixth consecutive trading session through W

June 25, 2015

Government to pour more than W15tr to secure 3% growth

The Finance Ministry on Thursday announced a fiscal stimulus of 15 trillion won ($13.6 billion) through a supplementary budget and state funds this year to boost the economy hit by the Middle East respiratory syndrome outbreak.In addition, the government revised its 2015 GDP growth outlook down to 3.1 percent from its earlier forecast of 3.8 percent, citing sagging exports and weaker-than-expected recovery in domestic demand.At a news briefing, Deputy Prime Minister and Finance Minister Choi Kyu

June 25, 2015

Finance minister vows supplementary spending to fight MERS fallout

Finance Minister Choi Kyung-hwan vowed Thursday to increase the supplementary budget to help overcome the economic fallout from the spread of the MERS virus and drought."Through sufficient reinforcement of finance, (the government) will overcome current issues like the Middle East Respiratory Syndrome and drought," Choi said in a policy coordination meeting with the ruling Saenuri Party. The remarks came as the spread of MERS continues to cripple the economy.South Korea reported two more deaths

June 25, 2015

MERS impact on consumption weakening: BOK chief

The nation’s central bank head said Wednesday that the negative impact of the outbreak of Middle East respiratory syndrome on private consumption is weakening.“(Like the first and second week), data showed that private consumption during the third week also fell on an on-year basis. But the reduction extent was found to have tapered compared to the first and second week,” said Bank of Korea Gov. Lee Ju-yeol.Lee’s remarks, under which he predicts a bounce-back in the domestic demand in the near f

June 24, 2015

China-H.K. stock connect may lure foreign capital from Korea

The imminent kick-off of the Shenzhen-Hong Kong stock connect is seen as a favorable outbound investment opportunity, but is also raising concerns of capital outflow into the more profitable Chinese market, analysts said Wednesday.South Korea’s current strategy is to move in step with China and seek shared growth, instead of competing directly with the giant market.The nation’s stock operator Korea Exchange initiated an exclusive task force to respond preemptively to China’s stock market growth.

June 24, 2015

Seoul shares up 0.2 pct on eased Greek woes, extra budget hopes

South Korean stocks closed 0.2 percent higher Wednesday as abated concerns such as the Greece debt issue, together with rising expectations about an extra budget, continued to boost investors' sentiment here, analysts said. The South Korean won lost ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index added 4.33 points to 2,085.33. Trading volume was moderate at 393.6 million shares worth 5.26 trillion won ($4.76 billion), with gainers outpacing losers 530 to 290.Analys

June 24, 2015

Banks eye foreign investors amid low rates

South Korean banks are turning their eyes to new business targeting foreign investors as they are struggling from falling interest income amid a low rate trend at home, industry sources said Wednesday.Kookmin Bank, the country's No. 1 commercial bank by assets, will open a foreign direct investment center in downtown Seoul next month to give comprehensive investment consulting services and payment settlement services to foreign investors."So far, we have been passive in engaging in the foreign i

June 24, 2015

Korea sees savings rate surge amid lackluster consumption

Weak consumer sentiment has pulled up Korea’s savings rate to the highest in more than 16 years, official data showed Tuesday.According to the Statistics Korea and the Bank of Korea, the nation’s savings rate came to 36.5 percent in the first quarter, compared with 35 percent and 34.7 percent, in the corresponding period in 2014 and 2013, respectively.On a quarterly basis, this is the highest since the rate peaked at 37.2 percent in the third quarter of 1998.The savings rate is calculated by sub

June 23, 2015

Seoul shares spike 1.27 pct on eased woes over MERS, Greek debts

South Korean stocks rallied 1.27 percent Tuesday as investors' sentiment was boosted by eased uncertainties from home and abroad, analysts said. The South Korean won lost ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index added 26.04 points to 2,081.20. Trading volume was moderate at 324.1 million shares worth 5.21 trillion won ($4.74 billion), with gainers outpacing losers 532 to 264.Analysts said Seoul shares closed higher amid eased concerns over the outbreak of Mi

June 23, 2015