S. Korea's gross revenue falls 10.9 tln won short of forecast: ministry

South Korea's gross revenue fell about 11 trillion won ($10.2 billion) short of the government's expectations last year, the finance ministry said Monday, indicating that the prolonged economic slump and tough business conditions led to less tax collection.According to the ministry, which closed its books on gross revenue and expenditures for the fiscal year 2013 on Monday, the gross revenue that the government brought in last year came to 292.9 trillion won. This is 10.9 trillion won shy of wha

Feb. 10, 2014

S. Korea's derivative turnover falls in 2013

The daily trading volume on the South Korean derivatives market dropped nearly 80 percent in 2013 from two years ago, data showed Monday, apparently as global financial woes induced investors to seek safer destinations.The turnover of derivatives, including futures and options, fell 55.3 percent on-year in 2013 to 821 million contracts, the data compiled by main bourse operator Korea Exchange showed.Last year's figure marked a near 80 percent drop from 3.9 billion contracts tallied in 2011, the

Feb. 10, 2014

Bond deals down in January amid global recovery signs

The amount of bond transactions in South Korea dropped in January from a month earlier as investors put more money into riskier assets amid signs that the global economy is recovering, data showed Sunday.According to data provided by the Korea Financial Investment Association and the Korea Exchange, the amount of bond transactions taking place last month came to 470 trillion won ($437.5 billion), down 11 percent from the previous month.This marked the first time in two years since January 2012 t

Feb. 9, 2014

Korea on alert over financial scams

Financial authorities are widening the scope of their investigation into possible fraudulent financial transactions in the wake of loan scams involving a unit of KT Corp. and some major commercial banks. The Financial Supervisory Service said Friday it would investigate all commercial and saving banks as well as other capital services companies to crack down on irregularities or violations.The announcement came while police are questioning an employee of KT ENS, affiliated with KT Corp., the nat

Feb. 7, 2014

KB Financial, IBK see earnings fall more than 20%

KB Financial Group, the country’s third-largest banking group by assets, announced Friday that its earnings last year fell 25.9 percent on-year due partly to a low interest rate and increasing bad debt allowances.Net income in 2013 totaled 1.28 trillion won ($1.19 billion), compared with 1.73 trillion won in 2012, the group said in a regulatory filing.It also said that its net interest income fell by 7.3 percent to 6.52 trillion won last year, compared with 7 trillion won the previous year, as i

Feb. 7, 2014

Watchdog probing banks over massive loan fraud

Korea’s financial watchdog said Thursday it is investigating several banks for any irregularities or rule violations in a large-scale loan fraud implicating an employee of a KT Corp. affiliate.The Financial Supervisory Service said the employee, surnamed Kim, at KT ENS Co. affiliated with KT Corp., the country’s No. 2 mobile operator, has taken out some 280 billion won ($260 million) in loans from Hana, Kookmin and several other banks.According to the watchdog, the banks had extended the loans t

Feb. 6, 2014

Improved earnings drive up KOSPI

South Korean stocks rose 0.88 percent on Thursday as concerns over emerging markets and corporate earnings receded, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index advanced 16.57 points to 1,907.89. Trading volume was moderate at 255 million shares worth 3.94 trillion won ($3.65 billion), with gainers outpacing losers 520 to 281.“Investor sentiment was boosted by a stabilizing currency market and better-than-expected corporate earnin

Feb. 6, 2014

Hana Financial Group earnings fall 37.1 percent

South Korea’s No. 3 banking group Hana Financial Group Inc. said Thursday its earnings for 2013 fell 37.1 percent from the previous year on a squeezed interest margin.Net income amounted to 1.02 trillion won ($1.1 billion) last year, compared with 1.62 trillion won the previous year, the group said in a regulatory filing.Its fourth-quarter earnings totaled 143.3 billion won, a turnaround from a net loss of 114.7 billion won from the previous year.The group said that the weaker earnings for last

Feb. 6, 2014

UBS probed for alleged tax evasion

Tax authorities are investigating Seoul branch of UBS over alleged tax evasion, sources said Wednesday.According to industry insiders, the Seoul Regional Tax Office has been investigating the Swiss-based financial organization since late 2013 for allegedly doctoring derivative securities transaction records and conducting illegal transfers that generated 51 billion won of unreported profits. UBS Seoul is also suspected of faking a loss through earlier settlements on derivatives with offshore com

Feb. 5, 2014

Dash to cash sparks concerns of black market growth

The country’s underground economy involving seems to be expanding, despite the government’s efforts to keep it in check, according to data released by the central bank on Wednesday. The collection rate for the 50,000 won bill hit a record low last year at 48.6 percent, down more than 10 percent from 2012, the figures showed.Collection rates indicate the volume of bills the BOK has gotten back in comparison to the amount of currency it issued during a set period. The rate for the 50,000 won bill

Feb. 5, 2014

Minister Hyun upbeat on financial markets

Despite persistent concerns over the United States’ tapering policies and the resulting stall in emerging economies, Vice Minister Hyun Oh-seok displayed optimism, saying Korea will not be much affected in the long-term perspective.He nevertheless demanded that financial monitoring systems be reinforced so that the country may respond rapidly to fluctuating global situations.“Instead of reacting to every up and down of the global financial market, we will focus more on improving the fundamentals

Feb. 5, 2014

Investors flocking to bonds amid uncertainties

Investors are putting money in bonds, defying expectations that better economic situations and the U.S. Fed's reduced assets purchases will trigger a capital move into stocks and other risky assets, data showed Wednesday.The yield on benchmark 3-year Treasurys stood at 2.85 percent on Tuesday, hitting a yearly low, with that on 5-year and 10-year Treasurys each reaching yearly lows of 3.17 percent and 3.54 percent, respectively. The yield moves opposite to the price.  Market analysts have been e

Feb. 5, 2014

Hyundai Group to sell financial firms through special-purpose company

Hyundai Group, which announced in December it was selling off its financial units to raise cash, is expected to seek sales through a special purpose company, sources watching the arrangements said Wednesday.Sources said the business group, a family-run conglomerate that specializes in elevator and container services, wants to hand over Hyundai Securities Co., one of South Korea's largest brokerage houses, Hyundai Asset Management Co. and Hyundai Savings Bank Co. to an SPC operated by Korea Devel

Feb. 5, 2014

S. Korea to step up market monitoring following U.S. tapering: minister

South Korea will step up market monitoring and remain ready to take necessary action to minimize the impact of the recent U.S. move to ease its economic stimulus efforts, the country's top economic policymaker said Wednesday."Since the Fed's decision to reduce its quantitative easing was announced, financial markets not just in emerging countries but also in advanced nations are showing signs of instability," Finance Minister Hyun Oh-seok said at a meeting with other economy-related ministries i

Feb. 5, 2014

Korea's FX reserves hit fresh record high in January

South Korea's foreign-exchange reserves rose to a record high in January, aided by an increase in investment profit, the central bank said Wednesday.The country's foreign reserves totaled a record $348.39 billion as of the end of January, up $1.93 billion from the previous month, according to the Bank of Korea.Foreign reserves had increased for the seventh straight month in December after declining by the most in 13 months in June.Foreign reserves consist of securities and deposits denominated i

Feb. 5, 2014

S. Korea set to introduce insurance plans on social ills

South Korea's financial regulator is planning to allow insurers to sell policies covering social ills such as domestic and school violence starting this year, industry sources said Tuesday.According to the sources, the Financial Services Commission is pushing to introduce the insurance products as part of broader efforts to cover damages related to such social problems.President Park Geun-hye has been focusing on eradicating what she called the four major social ills threatening public safety --

Feb. 4, 2014

Gov't mulls overhaul of ID system following data leak

The government began a review of how to change a decades-old resident registration system to better protect personal information in the wake of last month's massive data leak, officials said Tuesday.In January, some 20 million citizens' personal and financial data were found to have leaked from the country's major credit card companies, sparking a public outcry demanding a reform in the old and loose identification system."As part of efforts to better protect personal information, we've been rev

Feb. 4, 2014