‘Economy facing risks of low growth, low inflation’

South Korea’s economy is facing numerous risks, including protracted low growth and low inflation, which requires the government to keep up its efforts to reinvigorate the economy by stimulating consumption and corporate investment, the finance minister said Thursday. “Our economy is confronting the risks of low growth and low inflation as domestic demand recovery is being delayed,” Finance Minister Choi Kyung-hwan said in a parliamentary audit session, adding that external conditions are not fa

Oct. 16, 2014

Citigroup Korea to exit consumer lending

Citigroup Korea is dropping its consumer lending unit ― Citigroup Capital Korea ― in a bid to streamline operations, the banking giant said in its third-quarter earnings report on Tuesday.The announcement, however, will not affect Citigroup’s core businesses that include retail banking, credit cards and corporate banking, the company spokesman said in an emailed statement. It also does not indicate that Citibank Korea is pulling out, he added. “Korea will always be one of Citi’s most important m

Oct. 15, 2014

FSS chief shifts responsibility for KB Financial strife

South Korea’s chief financial regulator on Wednesday denied any shortcomings on his part in dealing with the internal feud at KB Financial Group, the country’s second-biggest banking group by market value, and rejected speculation that there was external pressure.Former KB Financial Chairman Lim Young-rok and Kookmin Bank President Lee Kun-ho both stepped down after ugly bickering over changing the company’s computer system since May led to a reprimand.The case was first handled by the Financial

Oct. 15, 2014

Korean bond yields dip to yearly lows on rate cut

South Korea's government bonds advanced Wednesday, pushing the yield of three-year Treasury bonds near a yearly low as the Bank of Korea (BOK) cut its base rate twice in three months to support growth in Asia's fourth-largest economy.   The yield on the benchmark three-year Treasurys stood at 2.236 percent in the morning session, down 4.2 basis points from the previous session's close. The yield on five-year Treasurys also fell 4.5 basis points to 2.451 percent.  The comparable figure for 10-yea

Oct. 15, 2014

S. Korean shares edge down on net selling by foreign investors

South Korean stocks traded lower late Wednesday morning as foreign investors offloaded for the ninth straight trading session, despite the central bank announcing it will lower base rate to record low levels to help stimulate the economy.The benchmark Korea Composite Stock Price Index (KOSPI), which started in positive territory, lost momentum to stand at 1,928.84 as of 11:20 a.m., a dip of 0.42 point, or 0.02 percent, from Tuesday' close.Market observers said bargain hunting that caused the KOS

Oct. 15, 2014

Shares rebound on net buying by institutions, private investors

South Korean stocks made a comeback Tuesday, helped by net buying by institutions and private investors ahead of the central bank’s Monetary Policy Committee meeting scheduled for this week. The local currency rose against the U.S. dollar. Starting the day in positive territory, the benchmark Korea Composite Stock Price Index, which lost ground in the past three trading sessions, ended the day at 1,929.26, up 0.11 percent, or 2.04 points, from Monday’s close. Trading volume was moderate at 331.6

Oct. 14, 2014

Seoul shares down 0.71% on global economic woes

South Korean stocks ended 0.71 percent lower Monday as concerns over weak global economic growth weighed down on investor sentiment, analysts said. The South Korean won rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index fell 13.71 points to 1,927.21. Trading volume was moderate at 304.1 million shares worth 3.95 trillion won ($3.7 billion), with decliners beating gainers 698 to 142. Analysts said the decline came amid a poor outlook for the world economy. “With the burd

Oct. 13, 2014

Household loan growth hits 14-month high in August

Household loans extended by South Korean financial institutions grew at the fastest rate in 14 months in August, as mortgage loans sharply rose following eased rules on home-backed lending, the central bank said Monday.Outstanding household lending by local banks and nonbanking institutions increased 6.3 trillion won ($5.89 billion) in August from a month earlier to 717.2 trillion won as of end-August, according to the Bank of Korea.The end-August figure represents a rise of 6.9 percent, or 46.4

Oct. 13, 2014

National pension fund to invest more in local shares next year

South Korea’s national pension fund plans to increase its investment in local shares by nearly 30 percent next year from this year to top the 100 trillion won ($93.2 billion) mark, its asset management report said Monday. The National Pension Service, which is among the world’s four biggest pension operators, will increase its investment in shares in 2015, instead of reducing its investment in bonds and property, according to its pension management plan submitted to the National Assembly. Under

Oct. 13, 2014

Seoul shares down 0.71 pct on global economic woes

South Korean stocks ended 0.71 percent lower Monday as woes over weak global economy growth weighed down on investor sentiment, analysts said. The South Korean won rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) fell13.71 points to 1,927.21. Trading volume was moderate at 304.1 million shares worth 3.95 trillion won (US$3.7 billion), with decliners beating gainers 698 to 142. Analysts said the decline came as the world economy is currently facing stunted grow

Oct. 13, 2014

Shinhan Card vows ‘smart’ reform

Card issuers need new DNA to do business in an era of mobile payments, Shinhan Card president Wi Sung-ho said Saturday. “A sea change that could rattle the whole card industry is underway,” Wi said during a debate session with Shinhan employees. “Card firms should no longer limit themselves to issuing plastic but should pursue going smart.”Underlining the need for the new attempts to change the paradigm, he urged high-ranking officials to gain hands-on experience in mobile payments via global e-

Oct. 12, 2014

Watchdog set to launch probes into life insurers over suicide coverage

South Korea's financial watchdog is planning to inspect local life insurers this month over their denial of insurance payments related to suicides, putting further pressure on them to pay contracted money to the families of policyholders who kill themselves, industry sources said Sunday.   More than 10 life insurers had sold policies for accidents that cover disaster-caused deaths as well as suicides between 2003 and 2010 before it changed the terms of the policies to exclude suicide.Under the p

Oct. 12, 2014

Manufacturers' sentiment still shaky: S. Korean chief central banker

South Korean consumers' sentiment seems to have recovered slightly following a series of boosting measures from the government, but manufacturers are still cautious in expanding their capital spending on lingering uncertainties, the country's chief central banker has said, raising chances for a further monetary easing in Asia's fourth-largest economy.South Korea's central bank, the Bank of Korea (BOK), cut its policy rate by a quarter percentage point in August to 2.25 percent in a bid to shore

Oct. 12, 2014