This is the first in a monthly series contributed by executive members of the Financial Supervisory Service to address key ongoing financial issues. ― Ed.Early in April, the cherry blossoms were blooming in Yeouido, Seoul, where winters are long and cold. The falling petals of cherry blossoms in the spring breeze were beautiful. However, the chill of the wind could still be felt in the streets around the financial district. The financial services industry represented 5.4 percent of Korea’s gross

April 23, 2015

KT&G Corp., South Korea's state-run tobacco producer, said Thursday its first-quarter net profit jumped 64.1 percent, due mainly to increased margin from price hikes and currency gains from dollar-denominated debts.Its net profit came to 308.77 billion won ($284.72 million) on a consolidated basis in the January-March period, compared with 188.19 billion won a year earlier, the company said in a regulatory filing. Operating income gained 64.7 percent on-year to 428.53 billion won in the first qu

April 23, 2015

South Korean companies suffered a record drop in sales in 2014 as unfavorable exchange rates and weakening oil prices pummeled major exporters, central bank data showed Thursday.Sales at 1,536 listed firms and 195 non-listed key companies sank 1.5 percent on-year in 2014, falling the most since the Bank of Korea began compiling the data in 2003.The figure, which covers most of the country's large corporations and 45 percent of all companies, has contracted twice in the past: 0.4 percent in 2003

April 23, 2015

Stock transactions via mobile gadgets in South Korea reached a record high in March as a rising number of retail investors turned to smartphones and tablets for trading, the bourse operator said Thursday. Mobile devices accounted for 13.4 percent of total transactions in the main KOSPI market last month, unchanged from February but up from 12.9 percent in January, the Korea Exchange said.The figure had been steadily rising since first surpassing 10 percent in July 2013.The ratio of mobile tradin

April 23, 2015

Apro Service Group, which incorporates the nation’s largest private lender Rush and Cash, opened a subsidiary in Poland, hoping to later expand into the European market.“By launching Apro Financial Poland, we shall secure a bridgehead to pioneer into the European market,” Choi Yoon, group chairman and president of OK Savings Bank, was quoted as saying.The group held an opening ceremony in Warsaw on Monday.“Being a member state of the European Union, Poland has a relatively well-established finan

April 22, 2015

The government is pushing for stricter legal restrictions on the sale of electronic cigarettes, which is officially classified as a cigarette product, the Finance Ministry said Wednesday. Finance Minister Choi Kyung-hwan, who concurrently serves as deputy prime minister, told lawmakers in the National Assembly that he would “shortly come up with a comprehensive proposal” on electronic cigarettes, which would ban the products’ explicit advertisement and random blend of nicotine. Choi stressed tha

April 22, 2015

Shinhan Financial Group reported robust quarterly earnings despite low interest rates, boosted by of a recovery in earnings in its nonbanking units including brokerage, credit card and life insurance.The financial group said Wednesday that it reaped 592.1 billion won ($548.2 million) in net profit during the first quarter, up 6 percent from 558.4 billion won during the same period last year. The figure was an 89.1 percent surge compared to the previous quarter.A group spokesperson cited the “div

April 22, 2015

South Korean stocks ended nearly flat on Wednesday as investors sat on the sidelines following the stock split of No. 1 cosmetics maker AmorePacific, analysts said.The South Korean won gained ground against the U.S dollar.The benchmark Korea Composite Stock Price Index slipped 0.9 point to 2,143.89 after hitting an intra-day high of 2,161.23, the highest mark in nearly four years. Trading volume was high at760.64 million shares worth 8.44 trillion won ($7.81 billion), with decliners beating gain

April 22, 2015

The amount of loans extended by South Korean banks to small and medium enterprises (SMEs) increased at the fastest clip in seven years in the first quarter on a government push to expand policy loans to spur growth, data showed Wednesday.Outstanding loans extended to smaller firms reached 522.2 trillion won ($482 billion) as of the end of March, rising 15.4 trillion won from the end of last year, according to the data by the Bank of Korea. The on-quarter gain marks the biggest increase since a 1

April 22, 2015

More South Korean firms, under growing pressure from investors and the bourse operator, are joining a move to split stocks, thus making their shares easier to buy and their share prices more attractive to investors, data showed on Wednesday.Fourteen companies have announced plans for stock splits or have been preparing for such a move in the first half of this year, sharply up from four in the same period one year ago, the Korea Exchange, main bourse operator, said.Leading the move is AmorePacif

April 22, 2015

Woori Bank has traded on the main bourse at above 10,000 won ($9.1) per share over the past six trading sessions after staying below 9,000 won in January.One reason could be that more and more market participants seem to be anticipating the financial authority-led auction process for the state-funded bank to kick off in the coming months.While Woori’s stock price will likely continue to gain as Financial Services Commission chairman Yim Jong-yong ― who took office a month ago ― pledged to accele

April 21, 2015

POSCO Co., South Korea's leading steelmaker, said Tuesday that it swung back to the black in the first quarter of this year on the back of gains from its asset sales and massive restructuring efforts, with its profitability also improving despite unfavorable business conditions such as low steel prices.Net income came to 369.76 billion won ($341.3 million) on a consolidated basis during the January-March period, a turnaround from a loss of 210.14 billion won a year earlier, the company said in a

April 21, 2015

South Korean stocks closed down Tuesday on massive institutional selling amid concerns over the future of the eurozone economy and a cautious approach by investors ahead of a full-swing earnings season, analysts said. The South Korean won fell against the U.S. greenback.Snapping a seven-day winning streak, the benchmark Korea Composite Stock Price Index fell 1.92 points, or 0.09 percent, to 2,144.79. Trading volume was heavy at 553.16 million shares worth 6.82 trillion won ($6.29 billion), with

April 21, 2015

Trade between South Korea and Japan fell nearly 14 percent on-year in the first quarter of the year as the relatively strong won reduced demand for South Korean goods in the neighboring country, a report showed on Tuesday. The bilateral trade between the neighboring countries came to $18.45 billion in the January-March period, down 13.9 percent from a year earlier, according to the report by the Korea International Trade Association. In the three-month period, South Korea's exports to Japan plun

April 21, 2015

South Korea’s financial market weathered the possibly negative effects from Greece’s woes, as China’s policy to boost its economy offset the worries and non-European investors maintained their “buy and hold” position on Monday.The benchmark KOSPI and the secondary KOSDAQ inched up 0.15 percent and 0.01 percent to close at 2,146.71 and 706.96 points, respectively. The U.S. dollar dipped below the 1,080-won mark.Foreign investors on the main Korean bourse seemingly downplayed the feasibility of a

April 20, 2015

Major banks and credit companies will introduce a mobile phone application that generates one-time passwords for personal authentication to facilitate transactions for customers.The smart OTP system will be cheaper and easier to use than the current OTP system, which requires separate equipment. But the move has triggered security concerns.KB Kookmin Bank said earlier this month it will establish a technology-based financial business platform which will guarantee both convenience and security to

April 20, 2015

The foreign ownership ratio of local stocks inched down this year, especially in the large-capital sector, data showed Monday.Foreigners held 466.2 trillion won ($430 billion) worth of shares in the benchmark KOSPI and over-the-counter KOSDAQ market as of last Thursday, according to the data from the nation’s stock operator Korea Exchange.This accounted for 30.89 percent of the total market, down 0.7 percentage points from the end of last year. But the actual amount increased by 44 trillion won

April 20, 2015

South Korean stocks ended higher Monday on gains in chemicals, auto and other large caps amid optimism that business outlooks could improve as China, the country's largest trading partner, is becoming aggressive in stimulating its economy. The South Korean won rose against the U.S. greenback.The benchmark Korea Composite Stock Price Index edged up 3.21 points, or 0.15 percent, to end at 2,146.71. Trading volume was heavy at 500.69 million shares worth 6.97 trillion won ($6.46 billion), with decl

April 20, 2015