Seoul to step in if markets become more unstable: regulator

The South Korean government will take market stabilization measures if interest rates in the local financial markets continue to soar amid rising possibilities of inflation and a US rate hike, the nation’s top financial regulator said Monday.Yim Jong-yong, Chairman of the Financial Services Commission, said the global financial market could turn more volatile if US President-elect Donald Trump’s campaign pledges start to materialize.“There are concerns that market interest rates may continue to

Nov. 28, 2016

[Kosdaq Star] BHflex shares rally on new global contracts

Clinching contracts with new customers abroad has raised market watchers’ expectations on the growth of BHflex, a flexible printed circuit board provider based in South Korea. According to the financial industry on Monday, the company’s sales and operating profit for next year are estimated to surge compared to this year as it received new overseas orders. The FPCB manufacturer is forecast to post 376.1 billion won ($321.8 million) in sales by the end of the year, and 13.4 billion won in operati

Nov. 28, 2016

Korea to toughen rules on anti-money laundering

South Korea said Monday it will step up efforts to close systemic loopholes in efforts to combat money laundering.The government plans to revise related legislation to cover lawyers, accountants, realtors and other professionals in non-finance sectors, according to the initiative by the authorities.Currently, only financial firms and casinos are subject to the law calling for the identification of customers, storage of relevant records and reporting of suspicious transactions.Yim Jong-yong, chai

Nov. 28, 2016

Korean banks' net profits widen in Q3 on cost cut

South Korea's banks sharply increased their net profits in the third quarter of this year mainly on reduced costs, official data showed Monday.The combined net income of the banks here came to 3.2 trillion won ($2.7 billion) during the July-September period, up 151.2 percent from a year earlier, according to the Financial Supervisory Service (FSS). It marks the highest level since they posted 3.3 trillion won in combined net income in the first quarter of 2012. A scene of banking services at a S

Nov. 28, 2016

Bill submitted for heavier fines, prison sentence for illegal stock trading

A bill was proposed stiffening monetary penalties and prison sentences for illegal stock trading made with inside information and price manipulation, people in the financial community said Monday.The bill submitted by Rep. Kim Young-joo of main opposition Democratic Party would allow monetary fines in the amount two to five times the sum of profit or evaded losses from such illegal trading, they said. The current law caps the fines at up to three times the amount involved.The proposed law also l

Nov. 28, 2016

Savings banks' household loans soar amid economic slump

The ratio of South Korean savings banks' loans extended to households hit a record amid shrinking corporate investment, data showed Sunday.Their outstanding loans totaled 41.1 trillion won ($34.9 billion) as of end-September, up 15.77 percent from the end of last year, according to the Bank of Korea's economic statistics system. A composite image provided by Yonhap News TV shows savings banks in operation. (Yonhap)Corporate loans rose 9.84 percent to 23.4 trillion won, while household loans jump

Nov. 27, 2016

Woori Bank sells Hanjin’s four tankers

Woori Bank said it had sold four tankers owned by Hanjin Shipping for $58.6 million to recover 36.8 billion won of uncollected ship financing debt.When the financially troubled shipper went into court receivership in early September, it handed over its 44 ships bought on borrowed money to the creditors.The four tankers, 8-9 years old, were the first to be sold among the 44 vessels, the bank said.The bank put the vessels on sale in September on public bidding and selected a Hong Kong-based shippi

Nov. 25, 2016

[Eye Interview] Matching company’s growth history with investors’ imaginative power

Ever since Levi’s first introduced denim jeans in the late 1800s, the denim industry has continued to grow regardless of the economic situation, according to Jung Jang-geun, a veteran financial investor based in Seoul. “As long as the population grows, it is impossible to see the denim industry slowing,” Jung said in an interview with The Korea Herald. “Denim jeans may be a fashion item in developed countries now, but they are still work wear for laborers in emerging countries.” Jung Jang-geun,

Nov. 25, 2016

[NEWS FOCUS] Food firms move to split up for higher stock value

Corporate split-ups as a means to raise stock value and make corporate governance more transparent have emerged as a recent trend in the South Korean securities market, with food companies the latest to join in. Orion Group, a leading confectionary manufacturer, decided late Tuesday to split the group into two entities -- Orion Holdings and Orion Corp. -- starting from June 1 next year.Orion Holdings will be in charge of controlling 17 non-confectionary subsidiaries and making new investments, w

Nov. 23, 2016

Shinhan Bank awarded for expat service

Shinhan Bank said it has been given a presidential award from the Trade Ministry for its role in helping attract foreign direct investment at the 2016 Foreign Company Day event Wednesday.The bank’s task force consisting of FDI experts has helped foreign investors make inroads into the local market and offered foreign-language investment consultations with expat employees from the UK, Japan and China, the bank said. Shinhan Bank‘s Vice President Choi Byung-hwa (center) poses for a photo with Vice

Nov. 23, 2016

Credit outlook for Korean banks, businesses stable for 2017: Moody’s

The credit outlook for Korean financial and non-financial corporations are stable for 2017 on the back of support by steady economic growth and low commodity prices, Moody’s announced on Tuesday. At a media briefing session prior to the 14th annual conference on Korean firm’s credit outlook in Seoul, Michael Taylor, managing director and chief credit officer at Moody’s Investors Service based in Hong Kong, highlighted Korea’s strong fiscal position that will help to smooth the ongoing economic r

Nov. 22, 2016

Suhyup to become mid-tier lender: CEO

Suhyup Bank will broaden its capital base to 2 trillion won ($1.7 billion) and become a mid-tier bank when it separates from the National Federation of Fisheries Cooperatives on Dec. 1, its CEO said Tuesday.The semi-policy bank, mainly providing financing and support for the fisheries and maritime industries, has been preparing to launch as a separate subsidiary of the NFFC to meet Basel III capitalization standards.When the Financial Services Commission announced in 2013 that the regulator woul

Nov. 22, 2016

Korea to diversify financial derivative products

South Korea's financial authorities announced a package of measures Tuesday aimed at enhancing the global competitiveness of the local derivative market.Since introducing derivative products two decades ago, South Korea has been a leading player in the field among Asian economies. A computer-generated imagery of a exchange-traded note (ETN). (Yonhap)But its market remains heavily dependent on stock index-linked instruments.The volume of such products traded here last year accounted for 68.9 perc

Nov. 22, 2016

[Kosdaq Star] Amotech’s technical expertise in materials brightens growth prospects

Market watchers have their eye on Amotech, a leading firm in the integrated part materials field, as its long-term growth prospects look bright with the backing of outstanding capabilities to develop new materials. Founded in 1994, the company’s technical expertise has been strengthened in light of the development of the country’s telecommunication products, information technology-based home appliances and energy-related products. It owns a total of 549 domestic and overseas patents, as of Janua

Nov. 21, 2016

[MONITOR] Usage of credit cards surpass cash

A Bank of Korea survey of 2,500 adults nationwide showed that 39.7 percent of purchases by South Koreans were with plastic. Credit card usage surged from 31.4 percent last year, surpassing cash.

Nov. 21, 2016

Entertainment, cosmetics stocks fall amid China’s Hallyu ban

China-sensitive stocks of entertainment and cosmetics firms nosedived Monday, after China reportedly banned Korean dramas and commercials featuring K-pop stars on China’s state-run TV stations in retaliation against Korea’s decision to deploy a US advanced missile defense system here. On the Kosdaq market, stocks of S.M. Entertainment -- the nation’s largest entertainment agency which manages many K-pop acts -- plunged 8.2 percent to 25,900 won on Monday. YG Entertainment fell 6.9 percent to 26,

Nov. 21, 2016

‘NPS suffers 28% loss in Samsung C&T stocks since merger’

The National Pension Service’s stock investment in Samsung C&T has suffered a loss of 590 billion won ($500 million) since it voted to approve the merger of Samsung C&T and Cheil Industries in July last year, industry data showed Sunday.According to Chaebul.com, which traces the finances of Korean conglomerates, the NPS’ holdings of Samsung C&T’s stocks were valued at 1.51 trillion won as of Thursday, a 28 percent decline from a combined 2.1 trillion won of the former Samsung C&T and Cheil Indus

Nov. 20, 2016