Korean M&As reach W11.2tr in H1

The value of mergers and acquisitions in South Korea amounted to 11.2 trillion won ($10.5 billion) in the first six months of this year on the back of mega deals like Daum Kakao Corp., the financial watchdog said Thursday.There were 82 mergers, spinoffs and business sales in the January-June period, compared with 133 cases worth 11.11 trillion won in the second half of 2013, according to the Financial Supervisory Service.Over the cited period, M&As in the global market soared 72.8 percent on-yea

Nov. 13, 2014

BOK holds rate at 2%

In a widely expected move, South Korea’s central bank stood pat on its 2 percent base rate Thursday as it gauges the policy impact of two rate cuts earlier this year.The rate freeze came after the Bank of Korea lowered the policy rate by a quarter percentage point in August and October as part of efforts to bolster growth in Asia’s fourth-largest economy.Slowing growth momentum has been a major headache for policymakers as domestic demand has lagged and property transactions have failed to reviv

Nov. 13, 2014

KB Financial Group in emergency mode until normalization

KB Financial Group, under the leadership of new chairman nominee Yoon Jong-kyoo, will maintain its emergency management system until it recovers completely from the aftermath of several months-long feuds.“My top priority is to stabilize our organization,” said Yoon, upon being named the sole candidate for the group’s chairmanship on Oct. 22.He launched a special task force to restructure the management and pledged to act as KB Kookmin Bank president during the interim period.The former chief fin

Nov. 13, 2014

Full text of BOK's statement on monetary policy decision for Nov.

Following is a translation of the full text of the Bank of Korea's statement Thursday on its monetary policy decision for November. The central bank's monetary policy committee voted to keep the base rate on hold, a month after it cut the base rate to a record-low of 2 percent.The Monetary Policy Committee of the Bank of Korea decided today to leave the Base Rate unchanged at 2.00% for the intermeeting period.Based on currently available information the Committee considers that, although the tre

Nov. 13, 2014

BOK holds rate at 2 pct for Nov.

In a widely expected move, South Korea's central bank stood pat on its 2 percent base rate Thursday as it gauges the policy impact of two rate cuts earlier this year."Given that the committee should monitor the impact of two rate cuts and take heed of financial risks stemming from a rise in household debt, (the committee) judged it is desirable to keep the base rate at the current level," BOK Gov. Lee Ju-yeol told reporters in a news conference.All policy board members voted for a rate freeze, h

Nov. 13, 2014

Korean Treasury yields forecast to hit record lows next year

South Korean Treasury yields are likely to continue to fall and hit rock-bottom levels during the second quarter of next year on expectations of additional rate cuts by the country's central bank, a report said on Thursday.The Bank of Korea (BOK) will cut its base rate to a fresh record low of 1.75 percent in the April-June period of 2015, as China is likely to trim reserve-ratio requirements during the first quarter of next year, according to the report by Hana Daetoo Securities Co., one of lea

Nov. 13, 2014

Woori Bank offers mobile loan service

Woori Bank said Wednesday that its customers would be able to access housing mortgage loans via its Smart Apartment Loan smartphone application, scheduled for launch early next year.With the app, customers will be able to attain loans by entering their personal information on their smartphone, officials said. Once customers agree with the finalized amount of loans, interest rate and payback conditions, they receive a mobile version of the loan and mortgage contracts.To promote the new service, t

Nov. 12, 2014

Banks’ household lending growth hits 6-year high in October

Household loans extended by South Korean lenders expanded at the fastest pace last month in six years as the local housing market gained traction amid eased mortgage rules and low interest rates, data showed Wednesday.Outstanding household loans by local lenders reached 547.4 trillion won ($497.4 billion) as of end-October, up 6.9 trillion won from the previous month, according to the Bank of Korea. The on-month gain marks the sharpest monthly growth since the BOK began compiling the data in 200

Nov. 12, 2014

Seoul shares up 0.24%

South Korean stocks ended slightly higher Tuesday after trading flat earlier as investors were mixed over the impact of the free trade agreement to be signed by Seoul and Beijing, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index added 4.77 points, or 0.24 percent, to 1,963.00. Trading volume was moderate at 293.74 million shares worth 4.38 trillion won ($4.04 billion), with gainers outnumbering losers, 508 to 307.Analysts said Seoul s

Nov. 11, 2014

Showbiz shares rally on FTA pact with China

Shares of South Korean entertainment agencies soared on Tuesday buoyed by expectations that the free trade agreement with China could bring an economic bonanza to Asia’s fourth-largest economy. Shares of SM Entertainment ― one of Korea’s three largest show business companies ― jumped by 7.82 percent and was traded at 29,650 won ($27.25) in the morning. The stock closed at 29,200 won per share. YG and JYP Entertainment also saw big gains, being traded at 42,100 won and 4,280 won, an increase of 4

Nov. 11, 2014

Economy losing momentum: ministry

The South Korean government voiced concerns about the economy Tuesday, saying that growth was losing momentum due to mounting uncertainties in the domestic and global markets.“Despite the rise in employment, low prices continue and the economic recovery has failed to gather momentum due to factors such as strikes in the auto industry,” the Finance Ministry said in its economic trend report. “Amid the uncertainties rising from the quantitative easing in the U.S. and the weak yen, Korea’s economic

Nov. 11, 2014

Woori Bank opens office in Vladivostok

Woori Bank, the country’s third-largest commercial lender by assets, said Tuesday it had opened an office in the Russian port city of Vladivostok as a growing number of companies are expected to enter the market in line with Moscow’s regional development plan.The office, the first in the area to be operated by a Korean bank, will mostly focus on providing corporate finance to South Korean companies, Woori Bank said in a press release.The Vladivostok office is Woori Bank’s third local unit in Rus

Nov. 11, 2014

Securities funds attract investment despite equity market slump

Investors brought money into South Korean stock funds last month despite the equity market slump, data showed Monday, posting the longest daily buying streak since 2007.Local stock funds, excluding index funds, saw a net inflow of 2.01 trillion won ($1.84 billion) for 31 consecutive days from Sept. 23, according to the Korea Financial Investment Association.The longest unbroken run of net buying lasted for 66 days between May and August in 2007 when stock funds in Asia’s fourth-largest economy w

Nov. 10, 2014

Banks to cut rates on overdue loans: FSS

Domestic banks are expected to lower their overdue loan interest rates as early as this year in a belated move to keep in step with the record-low key interest rate set by the nation’s central bank. The Financial Supervisory Service sent out an official letter to all commercial banks on Monday, recommending that they slash their rates further on pending overdue loans.“The nation’s key interest rate has fallen by almost 2 percent since 2011, but loan interests have remained mostly unchanged,” sai

Nov. 10, 2014

BOK forecast to hold key rate in November: poll

South Korea's central bank is expected to stand pat on the base rate in November while chances of a rate cut linger in the coming months to bolster growth and cope with shifts in monetary policies at major economies, analysts said Monday.All 12 analysts surveyed by Yonhap Infomax, the financial news arm of Yonhap News Agency, forecast the Bank of Korea (BOK) to keep the base rate on hold at an upcoming policy board meeting Thursday.South Korea's seven-day repo rate currently stands at a record l

Nov. 10, 2014

Banks’ net profit rises 13.7% in Q3

South Korean banks saw their net profit rise 13.7 percent in the third quarter from a year earlier on reduced bad debt losses and increased interest income, the financial watchdog said Sunday.The combined net income of 18 local banks stood at 1.7 trillion won ($1.55 billion) in the July-September period, compared with 1.5 trillion won during the same period last year, according to the Financial Supervisory Service.For the first nine months of the year, the banks’ net profit reached a cumulative

Nov. 9, 2014

BOK ups push for stalled Korea-China FTA talks

The Korea-China Free Trade Agreement will open a new chapter in the economic cooperation of the two countries, Bank of Korea Gov. Lee Ju-yeol said Friday in an effort to inject momentum into the negotiations.He also demanded the two sides place more focus on bolstering their financial ties, in addition to the already-strong trade partnership.“Should the Korea-China FTA be concluded, (the economies of both countries) will be able to leap further,” Lee said at the 2014 China Forum hosted by local

Nov. 7, 2014

Foreign bond ownership climbs back above 100tr won

Bond ownership by foreign investors in the South Korean equity market surpassed 100 trillion won ($91.5 billion) again after more than a year despite concerns about a possible rate hike in the United States, financial data showed Friday.According to the data compiled by the Financial Supervisory Service, offshore investors held 100.42 trillion won worth of local bonds as of Tuesday, piercing the 100 trillion won level for the first time since it hit 100.25 trillion won on Sept. 9, 2013.After pea

Nov. 7, 2014

Korea’ major financial groups at turning point

Some of South Korea’s big-name financial groups will have disappeared by the end of this year through breakups and mergers, but behind such moves ostensibly aimed at improving efficiency, industry watchers say the very system of operating financial groups needs to be rethought.Former No. 1 Woori Finance Holdings Co. was absorbed into Woori Bank on Nov. 1, and KDB Financial Group Inc. will be merged with Korea Development Bank on Jan. 1. The breakup of the two state-owned banking groups is part o

Nov. 7, 2014