Korea, Australia sign currency swap deal

South Korea said Sunday it signed a currency swap agreement with Australia, a deal that it expects will boost bilateral trade and eventually help growth of their economies.The deal, signed by the central banks of the two countries in Sydney, will allow for the exchange of their local currencies up to 5 trillion won ($4.5 billion) or A$5 billion, according to a joint statement.This will be effective for three years and could be extended by "mutual consent of both sides," it said. The central bank

Feb. 23, 2014

Seoul shares fall on Chinese manufacturing data shock

South Korea’s main stock market surrendered ground for the second straight day Thursday as the market was jolted by disappointing manufacturing data from China and concerns that the U.S. Federal Reserve may move to hike up interest rates. The South Korean won declined against the U.S. dollar.The benchmark Korea Composite Stock Price Index started on shaky ground and ended the day at 1,930.57, a 0.64 percent, or 12.36 points, loss from Wednesday’s close.Trading volume was relatively light at 228.

Feb. 20, 2014

Data-leak card firms may lose some W100b in revenue

The three credit card firms hit by recent massive data leaks may lose some 100 billion won ($93.6 million) in revenues due to a three-month business suspension ordered by the country’s financial regulator, data showed on Thursday.Last month, the Financial Services Commission revealed that some 20 million clients’ personal data had been leaked from the three credit card firms ― KB Kookmin, NH NongHyup and Lotte ― as well as Kookmin Bank, which shared customer data with its affiliated card firm.As

Feb. 20, 2014

Customs agency seeks to expand revenue base

Korea’s customs agency said Thursday it aims to secure 5.65 trillion won ($5.29 billion) more in revenue than previously planned over the next four years.The move is intended to help the government secure enough revenue to match the growing fiscal demand from expanded welfare programs and other projects promised by President Park Geun-hye.In its 2014 policy plan submitted to the president, the Korea Customs Service said it aims to collect an additional 1.34 trillion won ($1.2 billion) in taxes i

Feb. 20, 2014

S. Korean biz failures rise in Jan.

The number of corporate bankruptcies increased in January from a month earlier due to the rise in business failures in the service and construction sectors, the central bank said Thursday.Eighty-eight companies went bankrupt in January, up from the 68 tallied in December, which was the lowest level in six months, according to the Bank of Korea.The number of bankruptcies in the service sector rose by 22 on-month to 40 in January, and that of construction companies increased by five to reach 16.Th

Feb. 20, 2014

Seoul shares end lower on weak economic indicators

South Korea’s main stock market ended its lukewarm three-day winning streak Wednesday as disappointing economic indicators from the U.S. sapped investor sentiment. The South Korean won gained marginally against the U.S. dollar.The benchmark Korea Composite Stock Price Index, which started the day in negative territory, failed to gain any buoyancy and ended at 1,942.93, a 0.20 percent, or 3.98 points, loss from Tuesday’s close.Trading volume on the main bourse was light at 205.87 million shares,

Feb. 19, 2014

Brokerages trim Q1 corporate earnings outlook

South Korea’s brokerage houses continued to slash their first-quarter earnings outlook for listed firms this month as weaker-than-expected growth momentum in the U.S. is feared to undercut their performance, the latest data showed Wednesday.The operating profit outlook for 156 listed companies was cut by 9.9 percent for the January-March period as of Thursday from an estimate made at the end of November, according to the data compiled by market researcher FnGuide.The outlook covers listed compan

Feb. 19, 2014

Gov't to announce Park's economic growth plan

The government will unveil a three-year economic growth plan next week that President Geun-hye outlined in her New Year's news conference with a pledge to nearly double South Korea's per capita national income.The announcement will be made in an economic ministers' meeting that Park plans to preside over on Feb. 25, the first anniversary of her inauguration, presidential spokesman Min Kyung-wook told reporters.The plan was put together jointly by the state-run think tank Korea Development Instit

Feb. 18, 2014

S. Korea's finance minister calls on European firms to expand investment

South Korea's finance minister Tuesday called on European companies to expand investment here, promising that the government will continue to provide support and help them do business "with security."Finance Minister Hyun Oh-seok made the remarks during a meeting with envoys of EU member countries in central Seoul. The meeting comes a week after Hyun met with foreign business leaders and urged them to increase local investment and employment."The Korean government has continued to push forward i

Feb. 18, 2014

KB Financial chief may face punishment over data leak: regulator

The chief of KB Financial Group Co., South Korea's No. 3 banking group, may be punished for a recent massive data theft at its credit card unit depending on the results of an ongoing probe, the country's financial regulator said Tuesday.Last month, the Financial Services Commission revealed that some 20 million clients' personal data had been leaked from three credit card firms -- KB Kookmin, NH Nonghyup and Lotte – as well as Kookmin Bank, which shared customer data with its affiliated card fir

Feb. 18, 2014

S. Korea's producer prices dip for 16th month in Jan.

An injured student is treated outside South Korea's producer prices declined for the 16th straight month in January as prices of raw materials including oil fell, the central bank said Tuesday.The producer price index, a barometer of future consumer inflation, slid 0.3 percent in January from a year earlier, compared with a 0.4 percent on-year fall in December, according to the Bank of Korea.On an on-year growth basis, producer prices have fallen every month since October 2012, when they fell 0.

Feb. 18, 2014

Shinhan Bank under fire over illegal access to accounts

Shinhan Bank is likely to face fines and penalties for illegally accessing its customer accounts, reports said Monday.The Financial Supervisory Service will soon convene a meeting to decide possible disciplinary action against the bank after concluding a nearly four-month investigation into the bank, a source close to the matter told media. Obtaining or accessing personal data without authorization is a criminal offence. The nation’s second-largest lender is believed to have checked the account

Feb. 17, 2014

G20 to discuss policy coordination on emerging market unrest

Policy coordination in response to the recent turmoil in some emerging markets will likely be among the main topics for discussion at this week’s meetings of G20 policymakers, South Korea’s Ministry of Strategy and Finance said on Monday.Finance ministers and central bank chiefs from the Group of 20 major economies will meet in Sydney, Australia, on Feb. 22-23. Bond, currency and stock markets in developing countries have swung wildly in recent months as the U.S. Federal Reserve’s tapering of it

Feb. 17, 2014

NTS imposes W1t in taxes through probe into offshore tax evasion

South Korea's tax agency said Monday that it imposed more than 1 trillion won ($944.3 million) in taxes last year through an investigation into offshore tax evasion.A total of 1.08 trillion won was imposed as a result of its offshore tax evasion probe last year, which is a 30.6 percent rise from 2012, according to the National Tax Service. This also marked the first time that the amount surpassed the 1 trillion mark.The NTS said that it probed 211 people suspected of evading taxes through divers

Feb. 17, 2014

Citibank involved in loan scandal

Citibank Korea has become the latest victim in a string of fraudulent loans involving large corporate customers.Digitech Systems, a main supplier of Samsung Electronics’ assembly lines in China, is currently under investigation for taking money worth 18 billion won ($17 million) in loans from the bank with forged documents, according to the Financial Supervisory Service. According to the financial watchdog, the local touch-panel producer borrowed the money from Citibank with false account receiv

Feb. 16, 2014

Hyundai Capital fined ...for irregular lending

Hyundai Capital Services, Inc. was found to have issued irregular loans worth 800 billion won ($720 million) to two Hyundai Motor Group subsidiaries, the Financial Supervisory Service said Sunday.According to the financial regulator, Hyundai Capital has breached the state supervisory rules that oblige a lender to immediately notify the FSS governor of a credit-based lending worth 1 billion won or more.“While Hyundai Capital signed the loan contract with its two sister firms (in the automotive gr

Feb. 16, 2014