Central bank not surprised by ECB’s QE

The government forecast that the additional quantitative easing by the European Central Bank would have a limited impact on the nation’s economy, saying the measure was within market expectations.“The ECB’s expansive monetary policies are part of (the BOK’s) forecasts,” Bank of Korea chief Lee Ju-yeol said in a breakfast meeting with commercial bank chiefs in Seoul on Friday. “If the measure had diverted from market forecasts, there would have been a shock,” the central bank chief added. There i

Jan. 23, 2015

Hana-KEB merger faces deadlock

The merger of Hana Financial Group’s two flagship banks, Hana Bank and Korea Exchange Bank, is expected to face further delays as the management and labor failed to reach a last-minute agreement.The financial group recently decided to go ahead with the merger, with or without the KEB labor union’s consent, a move that deepened the latter’s resistance.The Financial Services Commission was scheduled to discuss the issue at its regular meeting next Wednesday but decided to postpone action due to th

Jan. 23, 2015

Seoul shares up 0.79 pct on ECB step

South Korean stocks closed higher Friday as investors cheered the stimulus plan by the European Central Bank released overnight to revitalize the moribund eurozone economy, analysts said. The local currency rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index gained 15.27 points, or 0.79 percent, to close at 1,936.09. Trading volume was moderate at 359.36 million shares worth 4.57 trillion won ($4.22 billion), with gainers outpacing losers 460 to 330.The ECB said it would

Jan. 23, 2015

Seoul shares up 0.7 pct in late morning

South Korean stocks traded 0.7 percent higher late Friday morning as investor sentiment was boosted by the European Central Bank's stimulus plan released overnight, analysts said.The Korea Composite Stock Price Index rose 13.46 points to 1,934.28 as of 11:20 a.m.Blue-chip shares rose across the board, with Samsung Electronics rising 0.44 percent and top automaker Hyundai Motor climbing 1.19 percent. SK hynix also added 1.28 percent.Shipbuilders were also winners, with Hyundai Heavy Industries mo

Jan. 23, 2015

KB Financial's takeover of local insurer hits snag over price

A move by KB Financial Group to acquire a local insurer has reached an impasse despite a recent long-awaited approval from the financial regulator, industry sources said Friday.In June, South Korea's second-largest banking group preliminarily agreed to buy a 19.47 percent stake in LIG Insurance Co., the country's fourth-largest insurer, for 685 billion won ($632 million). Last month, the Financial Services Commission, the country's financial regulator, gave its nod to the deal, paving the way fo

Jan. 23, 2015

Korean investors flock to Chinese stocks after Shanghai-Hong Kong

Korean investors have been increasingly setting their eyes on Chinese stocks after the launch of a Shanghai-Hong Kong stock connect program in search of higher returns amid the tepid local stock market, the nation's financial watchdog said Friday.The combined transaction volume in the cross-border trading program by local investors via 13 Korean brokerage houses reached 1.16 trillion won ($1.07 billion) during 39 trading sessions between Nov. 17 and Jan. 15, according to data compiled by the Fin

Jan. 23, 2015

ETFs' net asset value hits record high

South Korea's exchange-traded funds have sucked in money from investors who are looking for safe investment vehicles that come with decent returns amid increased volatility, data showed on Friday.According to the Korea Financial Investment Association, the net asset value of local ETFs reached 20.41 trillion won ($18.78 billion) on Wednesday, the highest on record. The figure topped the 20-trillion won mark on Dec. 23 for the first time, the data showed.An ETF refers to an investment fund traded

Jan. 23, 2015

Choi calls for globalization of Korea’s service sector

South Korea’s service industry needs to turn outward and become globalized so it can play a greater role in spurring economic growth and contribute to job creation, the country’s top economic policymaker said Thursday.Holding talks with business leaders in the Incheon free economic zone west of Seoul, Finance Minister Choi Kyung-hwan claimed that the long-held perception of the service sector having nothing to do with trade is outdated, especially as countries around the world are reaching free

Jan. 22, 2015

Asia to benefit from low oil prices: Barings

Falling oil prices will continue to benefit most oil importing countries, especially in Asia, said Baring Asset Management in a report on Thursday.The downtrend is likely to continue during the first half of this year, though at a slower pace than before, according to the London-based company.“All countries of the Asian emerging market, except Malaysia, are oil importing countries and thus beneficiaries of the low oil prices,” the report said.“If only the oil prices remain in the lower level for

Jan. 22, 2015

KT&G’s net jumps 45.5% in 2014 on strong sales

KT&G Corp., South Korea’s state-run tobacco producer, said Thursday its net profit jumped 45.5 percent in 2014 from a year earlier, driven by an increase in domestic sales ahead of a sharp price hike. Net income came to 813.8 billion won ($751.9 million) last year, compared with 559.3 billion won in 2013, the company said in a regulatory filing. Operating profit went up 15.6 percent on-year to 1.17 trillion won last year, and sales gained 7.6 percent to 4.11 trillion won, it said.The numbers ref

Jan. 22, 2015

Choi stresses reforms to boost growth momentum

South Korea’s top economic policymaker on Wednesday stressed the need for timely and sweeping reforms in order to boost the country’s growth momentum that has struggled to meet expectations. Speaking at a ministerial meeting in Seoul that assessed the latest economic developments, Finance Minister Choi Kyung-hwan pointed out that despite some positive signs like the drop in crude oil prices and more free trade agreements reached between South Korea and trading partners last year, more must be do

Jan. 21, 2015

Samsung Electronics says considering stock split

The world’s largest smartphone maker, Samsung Electronics, said Tuesday it was considering a stock split that would placate existing investors and attract new ones with a more affordable share price.Head of investor relations Robert Yi said the South Korean tech giant had been looking into a possible split “for a while” but was still debating the benefits of such a move.“We know it would have a psychological impact, but need to look further at how that might affect the company’s long-term value,

Jan. 20, 2015

FSC eases insurance collectors’ requirement

The government will lower the bar for tie-in sales with insurance for certain products, financial authorities said on Tuesday. At present, all insurance consultants are required to take an examination to obtain their license. However, starting July next year, insurance consultants within a select group of industries will be exempt from taking the examination, and will be able to sign up customers. These industries include the retailers of electronic appliances, real estate agencies and travel ag

Jan. 20, 2015

FX forward net buying by Korean firms soars in 2014

South Korean companies saw their forward exchange net purchases increase in 2014 from a year earlier as the won strengthened against the U.S. dollar in the first half of the year, central bank data showed Tuesday.The net purchases reached $10 billion last year, sharply increasing from $1.6 billion in 2013, according to the data from the Bank of Korea. The amount is smaller than the $24.1 billion posted in 2012.The on-year rise was attributed to a fall in forward selling in the first half as ship

Jan. 20, 2015