Banks' earnings estimated to have fallen 31 pct in 2013: data

South Korean banks' earnings are estimated to have declined 31 percent last year amid a long streak of low rates and higher loan-loss reserves, data showed Tuesday.KB Financial Group and three other rivals are projected to have logged a combined net profit of 4.98 trillion won ($4.49 billion) in 2013, compared with 7.21 trillion won the previous year, according to estimates provided by FnGuide.The 2013 data would mark the steepest fall since an 11 percent on-year decline in 2009 at the heel of a

Feb. 4, 2014

Number of firms on watchdog's list down in Feb.

The number of business group affiliates subject to restrictions on mutual investments and loan guarantees declined in February from a month earlier, the antitrust watchdog said Tuesday.The Fair Trade Commission said the number of corporate affiliates on the watch list stood at 1,694 as of Saturday, down 6 from the previous month.Over the past month, 24 affiliates were excluded following mergers and acquisitions and other reasons, such as stake sales. Meanwhile, 18 companies were newly added, the

Feb. 4, 2014

Data-leaking card firms face massive payouts

The three credit card companies involved in the latest data-leak scandal may have to pay over 170 billion won ($157 million) to customers involved in compensation suits, putting aside the additional expenses of reissuing cards and reinforcing their security systems.According to a regulatory report submitted to the Financial Supervisory Service, KB Kookmin Card estimated that the total compensation amount may be as high as 86 billion won, assuming that 1 percent of the 43 million victims will par

Feb. 3, 2014

Stock fund inflows surge in January

Investors pumped their money into stock funds last month on expectations that the local stock market would rebound down the road after getting off to a weak start in 2014, data showed Monday.Stock funds took in 625 billion won ($583 million) last month, reversing from an outflow of 38.2 billion won the previous month, according to the data compiled by fund-tracking firm ZEROIN.“Investors seem to have poured their money into stock funds on hopes the local stock market will recover after a brief s

Feb. 3, 2014

Public organizations seek to sell 7 tln won worth of properties

South Korea's public organizations are seeking to sell a combined 7 trillion won ($6.5 billion) worth of land and properties as part of efforts to reduce their ballooning debt and relocate their headquarters to regional areas, a parliamentary report said Monday.According to the report submitted by the Ministry of Land, Infrastructure and Transport to the National Assembly, 51 public organizations currently plan to sell a combined 2.46 million square meters of land on a total of 54 different lots

Feb. 3, 2014

Korean won sharply weakens on emerging market woes

The South Korean currency sharply weakened against the U.S. dollar on Monday as the Federal Reserve's quantitative easing sparked concerns about capital outflows from emerging markets, dealers said.The local currency was trading at 1,081.55 won per the greenback as of 10:52 a.m., down 11.15 won from the previous session.The won fell as low as 1,082.30 per the dollar at one point after the market opened.The Fed said last week it will stay on course by reducing monthly asset purchases to $65 billi

Feb. 3, 2014

Foreign direct investment in Seoul hits post-crisis high

Foreign direct investment in Seoul reached a record high since the 2008 global financial crisis to surpass $6 billion in 2013 on the back of a huge inflow of funds from the United States and Europe, data showed Monday.According to the data compiled by the Seoul Metropolitan Government, the amount of new FDI pledged to the South Korean capital city in 2013 totaled $6.14 billion, up 5.7 percent from the previous year.The investment from 987 companies from 74 countries marked the largest amount sin

Feb. 3, 2014

Class action suits over data leak may cost 3 card firms 170 bln won

The three credit card firms hit by recent massive data leaks may have to pay up to 170 billion won ($158 million) in compensation to their clients to settle class action lawsuits, data showed on Monday.Last month, the Financial Supervisory Service, the country's financial watchdog, revealed that some 20 million clients' personal data, including bank account numbers, addresses and credit ratings, have been leaked from the three card issuers -- KB Kookmin Card Co., NH Nonghyup Card Co. and Lotte C

Feb. 3, 2014

Gov't to enforce 'indefinite crackdown' on illegal circulation of client data

The government on Sunday announced a plan to launch an intensive crackdown on the illegal distributors of personal data to prevent further damage from the latest massive leak of customer data from three leading credit card firms.Law enforcement authorities will begin an indefinite crackdown on those who illegally circulate or use the leaked data, the prime minister's office said after a meeting of related Cabinet ministers.It was the first regular weekend meeting presided over by Prime Minister

Feb. 2, 2014

Seoul sweats over U.S. tapering

The nation’s chief financial supervisor on Sunday raised the possibility of Korea becoming susceptible to aftershocks from U.S. tapering policies that has served a heavy blow to the world’s emerging economies. “Korea could be infected by a second round of woes in the wake of the (latest) financial crisis seen to be rising in some of the world’s more vulnerable emerging countries,” said Financial Services Commission Chairman Shin Je-yoon during a meeting of senior policymakers.Shin presided over

Feb. 2, 2014

Three card firms to be suspended as of Feb. 14

KB Kookmin Card, NH NongHyup Card, and Lotte Card are to be banned from recruiting new customers or issuing loans for the next three months, starting Feb. 14, according to the Financial Services Commission.The three-month suspension, which is the maximum sanction possible under the current law, is expected to take effect following a 10-day preparatory period starting Monday. This will be the first nationwide business suspension in the credit card sector since 2003.During the three months, the cr

Feb. 2, 2014

Regulator offers assurances with note of caution on market stability

The top financial regulator on Sunday reaffirmed that the impact on Korea from the U.S. Fed's tapering would be limited, but with a note of caution from past lessons that global investors can change their course on a whim.The U.S. Federal Reserve announced last week another $10 billion reduction in monthly bond purchases as it steps back from quantitative easing as announced in December. The South Korean market has been closed since Thursday for the Lunar New Year holidays and reopens on Monday.

Feb. 2, 2014

Gov't to cut 40 tln won in public firms' debts by 2017

South Korea's Finance Ministry said Sunday it will make efforts to reduce liabilities in 18 debt-ridden public firms by 2017 in a bid to tighten what has been lax management.Under the plan, the Ministry of Strategy and Finance said the 18 public firms will be required to tighten their belts to curb the debt increase amount to 45.9 trillion won ($42.8 billion) from the initial plan for a 85.4 trillion won increase.South Korea's 38 public firms will also reduce the budget for employees' benefits b

Feb. 2, 2014

SM Entertainment chief ranks top on value of owned buildings

Lee Soo-man, the head of the most successful talent agency and top-ranking stock-rich celebrity, ranks No. 1 on the value of real estate holdings among entertainment businesspeople, market research showed Sunday.A building owned by Lee, a former singer who heads SM Entertainment, in southern Seoul was estimated to be worth 19.08 billion won ($17.8 million), according to Chaebul.com, a website that tracks the wealth of the rich. The appraisal is based on the construction cost, the building's age

Feb. 2, 2014

Leading credit card firms to be suspended for data leak

South Korea's three leading credit card companies whose customer data were stolen by the millions will be suspended for three months as punishment for lax supervision, inside sources said Sunday.According to the sources, South Korea's Financial Services Commission and Financial Supervisory Service are planning to officially notify KB Kookmin Card Co., NH Nonghyup Card Co. and Lotte Card Co. of the business suspension on Monday. The suspension will be effective from Feb. 17, they said.The latest

Feb. 2, 2014

Asian shares dive as Fed cut sparks emerging market fears

HONG KONG (AFP) - Asian markets slumped Thursday, extending a global rout on renewed fears about emerging economies after the U.S. Federal Reserve pressed ahead with its stimulus reduction and central banks in Turkey and South Africa jacked up interest rates.The dollar and euro sank against the yen as dealers scurried into safer investments after the Fed decision, while Asian sentiment took a further blow from data showing Chinese manufacturing contracted in January.Tokyo dived 3.33 percent by t

Jan. 30, 2014

S. Korea ready to take contingency actions in case of market instability: finance minister

South Korea will take "swift" and "proactive" action against any financial market instability in accordance with its contingency plans, the country's top economic and financial policymaker said Wednesday, addressing growing worries over the fallout from U.S. Fed tapering on emerging market countries."We are closely watching the market on worries that the market instability could prolong in emerging markets, and that it could spill over into other emerging and even advanced countries at a time wh

Jan. 29, 2014

S. Korea's current account surplus hits record high in 2013

South Korea's current account surplus widened in December from the previous month on an increasing exports, with the combined yearly surplus topping the estimate, the Bank of Korea (BOK) said Wednesday.The current account surplus reached $6.43 billion in December, up from $6.03 billion in November, according to the central bank. The current account is the broadest measure of cross-border trade.Korea posted a surplus for the 23rd straight month in December, with the combined surplus hitting a rec

Jan. 29, 2014