Korean banks face risk of losing credibility on irregularities

After a year muddied by irregularities, exposed corruption and profit losses, the South Korean banking sector faces strong supervision by the regulator as well as demand for internal controls. Scandals have damaged the reputations of top lenders, who have been implicated on suspicion of private data leaks, shady art work purchases and the possession of slush funds.The Tokyo office of No. 2 lender Kookmin Bank is under investigation by the Seoul financial watchdog and the prosecution for alleged

Dec. 23, 2013

Seoul shares open higher on tech, telecom gains

South Korean stocks got off to a strong start Monday buoyed by gains in tech and auto companies, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) shot up 9.38 points, or 0.47 percent, to 1,992.73 in the first 15 minutes of trading. Top market cap Samsung Electronics gained 0.63 percent, and industry leader Hyundai Motor climbed 1.56 percent.The local currency was trading at 1,061.61 won against the U.S. dollar as of 9:15 a.m., up 0.4 won from Friday's close. (Yonhap News)

Dec. 23, 2013

Nine public firms’ debt surges W17tr in 6 months

The combined debt held by state-controlled companies is snowballing as some were found to have maintained conventional management practices, such as reckless borrowing, irresponsible overseas projects and excessive incentives for executives.According to the public agencies’ management information provider Alio, nine major state-run firms saw their collective debt surge 5.2 percent or 17.8 trillion won in six months.Their outstanding debt came to 358.5 trillion won ($325 billion) at the end of Ju

Dec. 22, 2013

FSS opens probe on SC Bank, Citibank

The nation’s financial watchdog said Sunday that it would launch a special probe into Standard Chartered Bank Korea and Citibank Korea early next year over their “lax internal controls.” The Financial Supervisory Service plans to look into the recent customer data leaks at the two foreign first-tier banks here, as well as restructuring and dividend payouts to shareholders abroad. The move came after the FSS found the two banks responsible for the country’s largest-ever bank customer data leak of

Dec. 22, 2013

Personal debt rescheduling likely to hit new high

More South Koreans in severe financial duress are likely to apply for a personal debt rescheduling program this year, data showed Sunday, with the number of such cases expected to surpass 100,000 for the first time. According to the data by the Supreme Court, the number of applications for the program launched in 2004 reached 96,412 at the end of November, outpacing 90,368 of last year, an indication that more South Koreans are suffering from financial distress. Reflecting their economic trouble

Dec. 22, 2013

Shares likely to move up this week

South Korean stocks are likely to move upwards this week on the back of eased uncertainties after the U.S. Federal Reserve’s announcement to trim its stimulus early next year, but gains will be capped by renewed fears of a falling yen, analysts said. The benchmark Korea Composite Stock Price Index closed at 1,983.35 on Friday, up 0.78 percent from a week earlier. The main index had been haunted by jitters surrounding U.S. monetary policy ahead of the Federal Open Market Committee meeting that en

Dec. 22, 2013

Insurers’ delinquency ratio remains unchanged in Oct.

The delinquency ratio of South Korean insurance companies held steady in October from a month earlier, as the firms managed to curb growth in most of their bad loans, the financial regulator said Sunday. The bad-loan ratio of life and nonlife insurers stood at 0.69 percent in October, unchanged from the previous month, according to the Financial Supervisory Service.A delinquent insurance loan refers to a debt that has been overdue in both the principal and interest for more than a month. The reg

Dec. 22, 2013

No. of firms in Korea up 10.4% over past 5 years

The number of companies operating in South Korea increased 10.4 percent in 2012 compared with five years earlier, a report showed Friday.According to the report by Statistics Korea, the number of companies doing business here stood at 3.6 million as of the end of 2012, up from 3.26 million tallied in 2007.The facility maintenance and business support sector led the increase by posting a 47.2 percent gain during the cited period. The publication, broadcasting and information service sector follow

Dec. 22, 2013

Hyundai Group to sell financial units to raise W3.3tr

Hyundai Group said Sunday it would secure around 3.3 trillion won ($3.1 billion) in emergency funds by selling its three financial units, including Hyundai Securities Co. This is part of its efforts to address the recent liquidity concerns in the market. “Though we have enough cash for the first half of next year, we have taken strong measures to ease the concerns of the market,” a Hyundai spokesman said. “We have repeatedly pondered the sale of financial organizations, which are among Hyundai G

Dec. 22, 2013

KB seeks Chinese approval for executive appointments

KB Kookmin Bank is currently seeking the China Banking Regulatory Commission’s approval for the Korean bank’s appointments of its executives at its Beijing unit.A KB spokesperson said that KB Kookmin Bank has taken “normal steps” with Chinese financial regulators for its executive appointments in Beijing.The Korean bank in Seoul said it filed a request for the CBRC’s approval in mid-November this year, and expected it would take about two to three months.“The process normally takes about that ti

Dec. 20, 2013

Seoul shares gain 0.39 pct on eased market uncertainties

South Korean stocks closed 0.39 percent higher Friday, extending the rally for a second day as the U.S. Federal Reserve's plan to reduce stimulus subdued prolonged market uncertainties, analysts said. The local currency edged down against the U.S. dollar.  The benchmark Korea Composite Stock Price Index (KOSPI) advanced 7.70 points to finish at 1,973.12. Trading volume was light at 237.4 million shares worth 3.11 trillion won ($2.92 billion) with gainers outpacing decliners 430 to 357. Analysts

Dec. 20, 2013

Seoul shares up 0.15 pct in late-morning trade

South Korean stocks traded 0.15 percent higher late Friday morning, led by gains in machineries and financial firms, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) rose 2.97 points to 1,978.62 as of 11:20 a.m.Doosan Infracore, a leading construction equipment maker, shot up 3 percent and No. 3 lender Hana Financial Group advanced more than 2 percent. But shares of textile and IT service companies lost ground. Major apparel firm LG Fashion dipped 2.5 percent, with NC Soft,

Dec. 20, 2013

Seoul shares turn higher after weak start

South Korean stocks turned higher Friday after a weak start as investors stayed on the sidelines amid growing concerns about the yen's descent, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) added 1.62 points, or 0.08 percent, to 1,977.27 in the first 15 minutes of trading. The KOSPI began 0.13 percent lower at the opening bell. Market behemoth Samsung Electronics lost 0.35 percent, while Hyundai Motor gained 0.5 percent following a steep fall in the previous session, wei

Dec. 20, 2013

Korea boosts market vigilance

Korea’s financial policymakers and regulators have tightened their vigilance over the financial market following the U.S. Federal Open Market Committee’s decision to cut back its monthly bond purchases.Although the U.S. tapering of its quantitative easing would have minimum impact on Korea given its sound fundamentals and macroeconomic policies, financial authorities have called for increased monitoring and contingency measures against capital-flow volatility.“There is a potential for the financ

Dec. 19, 2013

Seoul shares almost flat on renewed yen fear

South Korean stocks closed marginally higher Thursday, paring earlier gains as renewed fear over a weaker yen overshadowed the momentum spurred by the U.S.Federal Reserve's plan to cut stimulus, analysts said. The local currency fell sharply against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) added 1.02 points, or 0.05 percent, to finish at 1,975.65. Trading volume was light at 251.6 million shares worth 3.77 trillion won ($3.56 billion) with decliners outnumbering g

Dec. 19, 2013

Seoul shares hike 1.12 pct on Fed tapering

South Korean stocks rallied early Thursday as market uncertainties subsided after the U.S. Federal Reserve announced the plan to trim its monetary stimulus.The benchmark Korea Composite Stock Price Index (KOSPI) climbed 15.04 points, or 0.76 percent, to 1,989.67 as of 10 a.m., after starting off the session more than 1 percent higher at the opening bell. Analysts in Seoul said investors increased bets as the prolonged anxiety about the reduction of the quantitative easing (QE) was lifted, giving

Dec. 19, 2013

G20 delegates to visit Gaeseong Thursday

Foreign delegates from the Group of 20 plan to visit the inter-Korean Gaeseong industrial complex on Thursday.While the officials are visiting South Korea to participate in the G20 Seoul Conference, the North recently allowed their visit, which was arranged by the Ministry of Unification, officials said.According to the Finance Ministry of South Korea, 31 figures will visit, including 15 senior finance ministry officials from 14 countries such as France, Luxembourg, Switzerland and the U.K.The d

Dec. 18, 2013

LG Chem to invest W320b in factory expansion

LG Chem Ltd., one of South Korea’s leading chemical companies, said Wednesday that it plans to invest 320 billion won ($304 million) to expand its plants for crude acrylic acid and superabsorbent polymers by September 2015. The expansion will increase LG Chem’s annual production capacity of CAA by 80,000 tons to 510,000 tons and that of SAP by 160,000 tons to 360,000 tons, LG Chem said in a statement. SAP is used as raw materials for diapers and CAA is used in paint, adhesives and addition agent

Dec. 18, 2013

Seoul shares gain 0.45 pct ahead of FOMC results

South Korean stocks closed 0.45 percent higher Wednesday, as investors chose to embrace the uncertainties on a U.S. stimulus cut and increased bets on local shares, analysts said. The local currency fell marginally against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) rose 8.89 points to finish at 1,974.63. Trading volume was light at 253.9 million shares worth 3.76 trillion won ($3.57 billion) with decliners outpacing gainers 402 to 389.   Analysts in Seoul said Wedne

Dec. 18, 2013