Conglomerates increase cashable assets amid economic slump

South Korea’s top conglomerates have expanded their holdings of cashable assets over the past five years, data showed Sunday, due mainly to their reluctance to increase investment amid a prolonged economic slump.The combined amount of cashable assets held by 76 listed companies owned by the country’s top 10 conglomerates came to 148.52 trillion won ($144.61 billion) as of end-March, up 56.1 percent from the 95.1 trillion won five years earlier, the data compiled by conglomerate researcher CEO Sc

July 27, 2014

Seoul shares hit yearly high on bold stimulus package

South Korean stocks on Friday reached a new high for 2014, bolstered by expectations that government stimulus measures may boost the local economy, analysts said.Starting the day in positive territory, the benchmark Korea Composite Stock Price Index rose to 2,036.20 at one point during the trading session before finishing at 2,033.85, up 0.36 percent, or 7.23 points, from Thursday’s close.Trading volume was modest at 264.51 million shares worth 3.85 trillion won ($3.73 billion), with advancers o

July 25, 2014

KB Financial net doubles in Q2

South Korean financial group KB Financial Group said Friday its second-quarter earnings more than doubled from a year ago after last year’s one-off profit-loss factor was removed.The financial group’s net profit in the April-June period came in at 398.4 billion won ($388.2 million), soaring from 165.3 billion won in the previous year, the group said in a regulatory filing.Shares of KB Financial rose about 1 percent to 36,750 won, lifted by the second quarter performance. The on-year jump came as

July 25, 2014

BOK to issue coins honoring pope's visit

South Korea's central bank said Thursday it will release a set of commemorative coins to celebrate Pope Francis' upcoming visit to the country next month.The pope is scheduled to visit South Korea on Aug. 14-18, during which he will conduct four Masses, including one for the beatification of 124 Korean Catholic martyrs and another for a gathering of Catholic youths in Asia.He is also expected to console families of those who died in the mid-April Sewol ferry disaster. It is his first visit to As

July 24, 2014

Govt's major economic measures unveiled in economy management plan

The following are key measures from the government's economy management plan to be carried out by newly inaugurated Finance Minister Choi Kyung-hwan. The plan mostly focuses on boosting domestic demand, stabilizing people's livelihoods and reforming the country's economic structure. Expansionary macroeconomic policy   - Injects 40.7 trillion won in fiscal and financial support to boost economic recovery    - Strengthens fiscal support by 11.7 trillion won during the second half    - Expands poli

July 24, 2014

S. Korea to inject 40.7 tln won for economic recovery

South Korea plans to implement a macroeconomic policy package worth about 40.7 trillion won (US$39.7 billion) to kick-start an economic recovery beset by anemic domestic demand, slowing exports growth and deepening uncertainties at home and abroad, the finance ministry said Thursday.The government will also execute its macroeconomic policy in an "expansionary" manner until its intended impact materializes, the ministry added. The stance will be maintained when drawing up a budget for next year a

July 24, 2014

Korea faces growth challenges: SC Bank

The Korean economy is facing increasing long-term growth challenges, including high household debt and an aging population, according to a report by Standard Chartered Bank.Strong exports and record-high foreign exchange reserves may bring about short- and mid-term growth, but slow domestic consumption, rising household debt and falling employment quality pose a risk to the economy’s future, the bank said in the report.“South Korea’s economy is like a glass that’s half empty or half full,” it sa

July 23, 2014

Pension service holds over 5% stake in 83 chaebol affiliates

The National Pension Service holds more than a 5 percent share in firms affiliated with the nation’s top 30 conglomerates, data showed Wednesday. South Korea’s state-run pension fund held such stakes in more than 83 conglomerate affiliates as of Monday that together were worth 55.15 trillion won ($53.88 billion), according to information compiled by local research firm CEO Score.It holds stakes worth 20.63 trillion won in 13 Samsung Group affiliates. The NPS holds over 10 percent in stakes in Sa

July 23, 2014

S. Korea's domestic credit card spending falls in May

South Korea's domestic credit card spending by individuals dropped in May for the second consecutive month due to April's deadly ferry sinking that hurt consumer sentiment, central bank data showed Tuesday. Credit card spending by individuals fell 1.6 percent to 30.5 trillion won (US$29.7 billion) in May, from 31 trillion won a year earlier, according to the Bank of Korea. The data does not include cash services and overseas spending. It is the first time that the amount contracted year-on-year

July 22, 2014

FSC struggles with prolonged personnel vacuum

South Korea’s financial industry is more than ready to see some new blood at the Financial Services Commission ― the decision-making body at the nation’s financial watchdog ― but it seems like the personnel vacuum won’t be filled for some time. The biggest reason is the sheer lack of candidates, industry watchers say. The government is pressed to select professionals with ample expertise, but there are actually few left to choose from when excluding officials who have served at key ministries, n

July 21, 2014

Investors betting on dividend funds on policy hopes

South Korean investors are pouring money into funds that invest in dividend-paying stocks on hopes that a series of measures under review by the country‘s new finance minister will push local companies to increase dividend payouts, data showed Monday.Dividend funds have received a net 302 billion won ($293 million) this year as of Wednesday, while other stock funds suffered cash outflows during the cited period, according to data compiled by fund evaluator KG Zeroin.Local stock funds suffered an

July 21, 2014

Seoul shares face correction this week

The South Korean stock market is expected to come under selling pressure this week as uncertainties stemming from the crash of a Malaysian passenger jet weigh on investor sentiment, but hopes for market-friendly policies and economic recovery may curtail a sharp fall, analysts said Saturday.The benchmark Korea Composite Stock Price Index finished at 2,019.42 points on Friday, up 1.2 percent from a week earlier.Fueled by growing expectations of a rate cut and economic stimulus measures, the main

July 20, 2014

34 local companies subject to corporate restructuring

The Financial Supervisory Service said Sunday it has given credit risk ratings to 34 companies including 21 construction firms, subjecting them to restructuring programs. The country's top financial regulator and creditors regularly inspect companies with debts of 50 billion won ($48.54 million) or more to assess their risk levels. This year, 34 companies were given the bottom two ratings of "C" and "D," they said.Eleven companies, including four construction companies, a shipbuilder and a steel

July 20, 2014

KRX to induce companies to pay out more dividend

South Korea's stock exchange operator will adopt incentives within this year to encourage companies to increase their dividend payout ratio, its chief said, one of the main demands of the incoming top economic policymaker.Finance Minister Choi Kyung-hwan, who took office last week, berated the country's conglomerates for stocking up on cash and thereby disrupting money flow into households that need to spend more to prop up domestic consumption. "South Korea's dividend payout ratio and dividend

July 20, 2014

Seoul to open rice market

The South Korean government will officially open up the domestic rice market, but with heavy tariffs in order to protect the local rice industry.The Ministry of Agriculture, Food and Rural Affairs on Friday announced that it will be liberalizing the rice market, starting from January next year. The related procedures will kick off in September.“We have reached the conclusion that tariffs are not only an inevitable, but also the optimal way to protect the future of the South Korean rice industry,

July 18, 2014