Issuance of corporate bonds declines 7% in 2016

The total amount of corporate bonds issued in South Korea declined 7 percent in 2016 from a year earlier, amid rising volatility in global bond yields and political uncertainties, the Korea Securities Depository said Wednesday.The volume of corporate bonds issued last year reached 310.8 trillion won, down from 334.6 trillion won in 2015, the state-run custodian and settlement services provider said.It is the first decline since 2013 when the issuance of corporate bonds fell 0.5 percent on-year.

Jan. 11, 2017

Major Korean banks beef up mobile capabilities

Major South Korean banks have been strengthening their mobile capabilities to dominate markets ahead of the planned launch of the country's first Internet-only bank, industry sources said Wednesday.Shinhan Bank set up its mobile banking platform 'Sunny' bank as part of efforts to lure new customers. It said customers can open bank accounts by verifying their identities through mobile phones and ID cards without visiting bank outlets. Woori Bank has also introduced its mobile bank called 'Wibee'

Jan. 11, 2017

Creditors to receive final bids to sell stake in Kumho Tire

Creditor banks will receive the final bids to sell Kumho Tire Co., South Korea's second-biggest tire company by sales, this week, the main creditor bank Korea Development Bank said Wednesday.The tiremaker's creditors led by KDB are set to receive the final bids from interested companies Thursday. One Indian and four Chinese firms have submitted preliminary bids, according to a person with direct knowledge of the deal.Nine creditors hold a combined 42.01 percent stake in Kumho Tire, with Woori Ba

Jan. 11, 2017

State pension fund expands buy of petrochemicals stocks on oil price rise

South Korea's state pension fund increased its investment into petrochemical and bank stocks, while trimming its exposure to bio and pharmaceutical stocks, a market tracker said Wednesday.The National Pension Service, the country's leading institutional investor, held stakes of 5 percent or more in a total of 285 listed firms here at the end of last year. Of the tallied firms, the NPS increased its stakes in 96 firms, 10 of which were petrochemical stocks such as Kumho Petrochemical Co., accordi

Jan. 11, 2017

Korea's finance minister meets with Wall Street heavyweights

South Korea's finance minister met with leaders of global investment banks in Wall Street to brief them on the country's recent economic situations and its fiscal policy road map, his office here said Wednesday.In a meeting with Goldman Sachs CEO Lloyd Blankfein in New York on Tuesday (US time), Finance Minister Yoo Il-ho stressed Asia's fourth-largest economy has been running steadily and smoothly despite the impeachment of President Park Geun-hye in December, according to the finance ministry.

Jan. 11, 2017

Over 12,000 jobs lost in 3 yrs in financial industry

South Korea's financial industry cut more than 12,000 jobs in the past three years, hit by a drawn-out economic slump, data showed Wednesday.The number of financial sector workers fell 5.6 percent to 207,000 at the end of the third quarter of 2016 from 220,303 three years earlier, according to CEO Score, a corporate management evaluation agency.It analyzed the employment situations at a total of 102 financial services firms nationwide.The number of rank and file workers fell to 205,662 from 217,

Jan. 11, 2017

Foreign investors on buying spree for 10 straight days

Foreign investors continued their buying spree for 10 consecutive trading days on Tuesday for South Korea’s main bourse, despite strong US dollars amid US interest rate hikes. 　 Foreigners bought a net of 99.7 billion won ($83 million) in shares Tuesday, marking the 10th day of net buying, although the benchmark Korea Composite Stock Price Index closed down 0.18 percent, or 3.66 points, to 2,045.12 points as institutional investors dumped a net 248 billion won. 　 As of Tuesday, foreigner

Jan. 10, 2017

Korea to foster blockchain financial services

South Korea's financial authorities on Tuesday announced a plan to launch a full-scale pilot project this year on blockchain-powered financial services.South Korea, known for its ICT prowess, has accelerated its drive for capitalizing on the new platform. An international conference on bitcoin is held in South Korea in 2015 in this file photo. (Yonhap)Blockchain is a key technology for the digital currency bitcoin enabling data sharing across a network of individual computers. As a kind of distr

Jan. 10, 2017

Shinhan Bank launches mobile app for expats

Shinhan Bank has launched a multilingual mobile banking application for foreign customers in South Korea, the bank said Tuesday.Shinhan Global S Bank offers banking services in 10 languages -- English, Chinese, Japanese, Vietnamese, Thai, Cambodian, Russian, Tagalog, Mongolian and Indonesian.  Shinhan Global S Bank (Shinhan Bank)The services include allowing users to check their account balance and exchange rates, make local and international transfers, as well as link up with a foreign-language

Jan. 10, 2017

Tax breaks eyed for marriage, jobs, investment

South Korea’s Finance Ministry said Tuesday it will seek changes in tax incentives early this year in a bid to promote marriage as well as increase jobs and corporate investment.To promote marriage, the ministry plans to offer up to 1 million won ($835) of tax deduction for a couple who ties the knot, until 2019.(123rf)Following the 10-day preannouncement of the bill containing such changes in tax incentive rules, the government will submit it to the National Assembly by early February for revie

Jan. 10, 2017

Korean finance minister holds IR session in US

South Korea's finance minister met with U.S. investors to introduce the country's fiscal policy and reform measures in a bid to boost foreign investment, his office here said Tuesday.In a meeting with officials from global asset management firms including Fidelity and MFS at a hotel in Boston on Monday (US time), Finance Minister Yoo Il-ho explained the current political and economic situation in the South Korean economy and shared views on the global economic outlook, according to the finance m

Jan. 10, 2017

Shinhan, Woori to pick new CEOs soon

Two of South Korea's major lenders -- Shinhan and Woori -- are in a full-fledged search for new leaders ahead of their general shareholders' meetings in March.Shinhan Financial Group has gained speed in the process by drawing up a shortlist of candidates to replace its chairman Han Dong-woo, whose term ends in March. The corporate logo of Shinhan Bank in a photo provided by Yonhap News TV (Yonhap)They are Shinhan Bank CEO Cho Yong-byoung, Shinhan Card CEO Wi Sung-ho, Shihan Investment Corp. CEO

Jan. 10, 2017

Stock brokers hit for being biased against selling

South Korea's securities firms have usually advised their customers to buy stocks and appear to be biased against selling in their analysis reports, data showed Tuesday.Mirae Asset Daewoo Co. and 17 other brokerage companies here have not suggested selling at all over the past three years, only nudging people to buy shares. The building of Mirae Asset Daewoo Co., South Korea's largest brokerage firm by capital base (Yonhap)The practice raises doubts about any substantial help to investors seekin

Jan. 10, 2017

Asset managers say Samsung Elec shares still undervalued

Samsung Electronics shares are still undervalued despite days of record-breaking price climbs, given the tech firm's operating profit and product marketability, leading asset managers said in their outlook Tuesday.Samsung Electronics released its 2016 fourth-quarter performance estimate Friday that forecast 9.2 trillion won ($7.64 billion) in operational profit, up 76.92 percent from the prior quarter and 49.84 percent up on-year. The estimate, if confirmed, would be an earnings surprise that ex

Jan. 10, 2017

Mirae to finance W1tr for Yeosu resort development

A consortium led by Mirae Asset Financial Group and UK-based investment firm Castlepines clinched a deal to finance more than 1 trillion won ($830 million) to build an oceans tourism resort complex at Gyeongdo in Yeosu, South Jeolla Province, Mirae Asset Global Investments said Monday.Park Hyeon-joo, chairman of Mirae Asset, signed an investment contract with South Jeolla Province Gov. Lee Nak-yon and Yeosu Mayor Ju Cheol-hyeon at the southwestern province’s office, the asset management company

Jan. 9, 2017

Savills Korea’s subsidiary obtains asset management license

South Korea’s financial regulator recently allowed a subsidiary of real estate services provider Savills Korea to enter the asset management market and operate real estate private equity funds, a government official said Monday.Savills Investment Korea, a wholly owned subsidiary of Savills Korea, was established in 2014 to provide investment advice to individual investors.“The tentatively named Savills Investment Korea was registered as of Jan. 2 at the Financial Supervisory Service to run priva

Jan. 9, 2017

Brokerage firms shifting to large, upscale branches

South Korea's major securities companies are rushing to launch larger branches in Seoul in a bid to reduce costs and offer one-stop broader services.NH Investment & Securities Co., the No. 2 brokerage firm here by capital base, will open the NH Finance Plus finance center this week in Samsung-dong, located in the affluent Gangnam area, south of the Han River. This composite file photo shows buildings and corporate logos of South Korea's brokerage firms. (Yonhap)NH has consolidated three smaller

Jan. 9, 2017

Idle money grows around stock market amid risk-averse sentiment

Idle money has grown sharply in South Korea, parked for proper investments in the stock market as investors remain cautious about risk-on assets, data showed Monday.The volume of money sitting idle around the local equity market exceeded 107 trillion won ($88.8 billion) as of the end of 2016 according to the Bank of Korea and the Korea Financial Investment Association.  This composite photo from Yonhap News TV refers to floating capital. (Yonhap)It includes 21.8 trillion won of investors' deposi

Jan. 9, 2017

Finance minister to stress Korea’s solid fundamentals in US

South Korea’s finance chief will assure overseas investors about the country’s solid economic fundamentals when he visits the United States this week ahead of the inauguration of President-elect Donald Trump in mid-January, the Finance Ministry said Sunday.Finance Minister Yoo Il-ho will hold a road show for some 120 overseas investors in New York on Wednesday to explain South Korea's solid fundamentals represented by current account surpluses, stable foreign exchange reserves and further room f

Jan. 9, 2017

Impact of Korea-Japan swap deal halt limited

Japan’s decision to suspend talks on a currency swap last Friday will have limited impact while caution is still advised, according to economists and experts. Song In-chang, deputy finance minister, played down a possible repercussion of the suspension of the bilateral currency swap deal, saying that “It wouldn’t have much impact as it is not like an existing program ended.” Sung Tae-yun, economics professor at Yonsei University said, “It is very unlikely that th

Jan. 8, 2017