Daum Kakao faces tax investigation

Tax authorities launched an audit into Daum Kakao Corp. as they dispatched inspectors to the Internet portal giant’s Pangyo office in Gyeonggi Province on Tuesday.While the background of the probe from the National Tax Service has not been confirmed, some market insiders alleged that the move was to verify possible allegations such as irregular intragroup trading and tax evasion.Further, the NTS reportedly carried out the raid without making prior notifications to Daum Kakao, whose headquarters

June 16, 2015

S. Korean finance chief to join signing for China's AIIB

South Korean Finance Minister Choi Kyung-hwan will visit China later this month to attend the signing ceremony for the charter of the Asian Infrastructure Investment Bank, a diplomatic source said Monday. With Chinese President Xi Jinping scheduled to oversee it, the signing ceremony will be held on June 29 at the Great Hall of the People in Beijing, the source said on the condition of anonymity. South Korea is among 57 founding members of the AIIB, which is seen as a potential counterbalance to

June 15, 2015

KOSDAQ spinoff plan faces backlash

Financial authorities’ reported policy to spin off the tech-laden Korea Securities Dealers Automated Quotations market from the main bourse Korea Exchange has triggered a fiery feud among interested parties. The regulator Financial Services Commission is slated to reveal the restructuring plan for the KRX by the end of this month. But whether the restructuring plan will include details on the separation of secondary KOSDAQ from the KRX is yet unclear. “(The FSC) have sought stronger market-based

June 15, 2015

Woori Bank sale to resume in 3rd quarter

Financial authorities are considering putting Woori Bank up for sale again during the third quarter after strategic meetings of the Public Fund Oversight Committee in the coming weeks, government officials said Monday.The Financial Services Commission, the state’s regulator for the industry, has failed to attract a preferred bidder though the taxpayers’ money-injected bank has been put up at auction four times since 2010. A finance-related government agency holds a 51.03 percent stake in Woori.A

June 15, 2015

Diageo to hike whiskey prices

Diageo Korea, the local branch of the world’s largest distiller, is to raise the price of its whiskey products starting next month.The price hike is expected to give a boost to its rivals, such as Pernod Ricard Korea and Lotte Chilsung Beverage.Prices of Johnnie Walker, J&B Reserve and The Singleton will rise by an average of 5 percent from July 1, according to officials.For Johnnie Walker Red, the diffusion label of the signature blended Scotch Whisky, factory prices of the 375 ml and 700 ml bo

June 15, 2015

U.S. rate rise to leave Korea vulnerable

Local economists are raising concerns over the negative effects an expected interest rate hike by the United States later this year might have on the Korean economy.The possibility of massive capital outflow is likely to grow further, as the Bank of Korea lowered its benchmark interest rate once more last Thursday. Market attention has since converged upon the next meeting of the U.S. Federal Open Market Committee, slated for June 16-17 in Washington.Any statement hinting at a hawkish monetary p

June 15, 2015

S. Korean stocks to remain dull next week ahead of FOMC

The South Korean stock market is expected to trade in a tight range next week as investors take a wait-and-see approach ahead of the U.S. Federal Reserve's rate-setting meeting, analysts said Saturday. The local bourse traded lower this week, with the benchmark Korea Composite Stock Price Index (KOSPI) closing at 2,052.17 on Friday, down 0.77 percent from a week earlier. Seoul shares managed to trade higher only on Thursday as the Bank of Korea slashed its policy rate to a record low of 1.5 perc

June 13, 2015

Banks brace for decrease in net interest margins

Perplexed by the Bank of Korea’s drastic decision to lower the key policy rate to a record low 1.5 percent, major banks are rushing to lower the rate of their deposit and installment savings accounts accordingly.The impact of the key rate cut hit hard on the market, as the central bank had recently hinted at a status quo, projecting an optimistic forecast on the nation’s economy ― until the recent breakout of the Middle East respiratory syndrome.NH NongHyup Bank, affiliated with the nation’s agr

June 12, 2015

Finance minister assures foreigners of MERS control

Deputy Prime Minister and Finance Minister Choi Kyung-hwan asked foreign leaders in Korea to refrain themselves from being swayed by the outbreak of the Middle East respiratory syndrome, confident in the government’s ability to gain control over the virus. Choi, as the nation’s acting prime minister, Friday convened a luncheon meeting with representatives of the World Health Organization and ambassadors of the United States, China, Japan and Russia to Korea, to assure them that South Korea will

June 12, 2015

S. Koreans cut cash gifts, donations amid slump

South Koreans are cutting back on their cash gifts and donations as the economy remains sluggish, government data showed Friday.  According to the data by Statistics Korea, transfer spending that includes cash given as wedding and condolence gifts fell in the first quarter after backtracking in the October-December period.  In the first three months of 2015, outlays dipped 0.3 percent on-year, with spending falling 5.8 percent in the previous quarter.  Transfer spending dropped the steepest amon

June 12, 2015

Experts warn investors of volatility risk

Just five days remain until Korea’s two main stock exchanges double the daily stock price limits, a state-driven move to boost liquidity and reduce speculative investment.Starting June 15, the benchmark KOSPI and the tech-laden KOSDAQ will expand the price limits to 30 percent, double the current 15 percent. This is the first revision of its kind in 17 years since the authorities raised the figure from 12 percent to 15 percent in 1998.While the Korea Exchange, South Korea’s main bourse operator,

June 10, 2015

Hyundai Card avoids industry’s mobile rush

Pressed to find new sources of revenue amid persisting slow growth, the credit card industry now is in a dilemma whether to launch mobile card systems.While most of the market’s top-ranking operators have launched or are planning to launch a mobile-only card, No. 3 player Hyundai Card said it would not jump on the bandwagon, raising questions.“Other companies are busy launching mobile-only cards, but Hyundai Card has decided not to,” Chung Tae-young or Ted Chung, CEO of Hyundai Card and vice cha

June 10, 2015

Seoul shares down 0.62 pct on MERS woes

South Korean stocks ended 0.62 percent lower on Wednesday as investor worries deepened over the fallout of Middle East Respiratory Syndrome on the country's economy, analysts said. The local currency gained ground against the U.S. dollar.  The benchmark Korea Composite Stock Price Index fell 12.71 points to 2,051.32. Trading volume was moderate at 422.26 million shares worth 6.15 trillion won ($5.5 billion), with decliners beating gainers 437 to 368.  "The market got a boost earlier from the MSC

June 10, 2015

Agricultural exports plunge on weak yen

Exports in the agricultural sector fell significantly last month as the record-cheaper Japanese yen undermined the price competitiveness of the South Korean farmed goods, government data showed Tuesday. According to the South Korean Ministry of Agriculture, Food and Rural Affairs, the outbound shipments of fresh and processed food products in May was $480.4 million, down 8.1 percent from a year earlier. The January-May exports stood at 2.5 billion won, down 1.3 percent on-year, accounting for on

June 9, 2015

Foreigners’ bond investment hits 27-month high

Foreign investors were found to have actively bought bonds in the South Korean market last month, the Financial Supervisory Service said Tuesday.The foreigners’ investment in Korean bonds was estimated at 3.19 trillion won ($2.9 billion) in May, marking the highest in 27 months since they bought bonds worth 3.5 trillion won in February 2013.Their net buying of local bonds came to 4.4 trillion won, up 700 billion won from a month earlier.By investor nationality, Switzerland topped the list with n

June 9, 2015

POSCO named world's most competitive steelmaker for 6th year

South Korea's top steelmaker POSCO said Tuesday it was named the world's most competitive steelmaker in a global industry report for the sixth consecutive year.  In an annual assessment of 36 steelmakers worldwide, global steel information service provider World Steel Dynamics gave POSCO the top mark of 7.91 points out of 10, according to the South Korean company.  The WSD report, which ranks the steelmakers based on 23 categories, gave top scores for POSCO in four segments, including technologi

June 9, 2015

Household loan growth hits new high in April

Household loans extended by South Korean financial institutions rose at the fastest clip in April in the wake of a surprise rate cut a month earlier, central bank data showed Tuesday.  Outstanding household lending by local lenders and non-banking institutions totaled 765.2 trillion won ($684.3 billion) as of the end of April, surging by 10.1 trillion won from a month earlier, according to the data by the Bank of Korea.  The monthly gain marks the sharpest growth since the central bank began com

June 9, 2015