Seoul shares almost flat in late-morning trade

South Korean stocks were almost flat late Wednesday morning, as large-caps traded mixed amid upbeat expectations on improved corporate earnings, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) added 1.63 points, or 0.09 percent, to 1,905.78 as of 11:20 a.m.Top-cap Samsung Electronics lost 0.3 percent, while second-largest Hyundai Motor went up 0.2 percent. Chemical companies and shipyards were bullish but financial blue chips lost ground. No. 4 lender Shinhan Financial Gro

July 24, 2013

Seoul shares turn higher after weak start

South Korean stocks reverted to a slight gain on Wednesday after a bearish start, following the 1.3 percent rally of the previous session, analysts said. After opening a tad lower, the benchmark Korea Composite Stock Price Index (KOSPI) inched up 0.34 points, or 0.02 percent, to 1,904.49 in the first 15 minutes of trading. Tech and auto blue-chips led the decline, with Samsung Electronics slipping 0.3 percent and Hyundai Motor falling 0.2 percent. But LG Chem, a leading chemical maker, and top g

July 24, 2013

Central, local officials lock horns over real estate tax cuts

Conflict is brewing between the central and regional governments over tax cuts on real estate transactions being pushed by President Park Geun-hye to revive the housing market.The central government announced that it would indefinitely cut the property acquisition tax rate in accordance with apartment prices, despite growing opposition by regional offices amid increasing welfare costs and revenue shortfalls.Given that the purchase tax accounts for a significant share of regional income at over 3

July 23, 2013

Financial consumer protection agency set to debut next year

Financial regulators have decided to spin off the consumer protection board from the Financial Supervisory Service, officials said Tuesday.The Financial Services Commission, whose executive arm is the FSS, announced that an independent consumer protection entity could be set up during the second quarter of next year.Concerning uncertainty over policy efficacy following a separation, FSC Chairman Shin Je-yoon told The Korea Herald that “the policy reflects the strong determination of President Pa

July 23, 2013

FSS seeks to curb banks’ dividend payouts

Financial authorities plan to put a brake on major banks’ dividends to their shareholders as a way to secure soundness.Despite a series of cautions from the Financial Supervisory Service, the first-tier banking sector has continued to pay out high dividends to their “largest shareholders, foreign investors, overseas headquarters and chief executives” over the past few years, the national financial regulator said.They included KB Financial Group, Shinhan Financial Group, Hana Financial Group, Woo

July 23, 2013

Trade terms improve to 26-month high in June

South Korea’s terms of trade improved to a 26-month high in June as import costs fell at a sharper pace than export prices amid the global economic slowdown, the central bank said Tuesday.The country’s net terms-of-trade index for goods ― a gauge of trade terms ― came in at 90.5 in June, up 5.4 percent from a year earlier, according to the Bank of Korea.The on-year growth in the trade terms in June slowed from a 6.1 percent on-year gain tallied in May, but the June reading marked the highest sin

July 23, 2013

Plastic card spending growth slows in June

South Korea’s plastic card spending maintained a stagnant growth in June as card holders continued to hold back their purchasing amid the economic slowdown, a trade association said Tuesday.Purchases made with plastic cards totaled 44.5 trillion won ($39.7 billion) last month, up 4.1 percent from 42.7 trillion won tallied a year earlier, according to the data by the Credit Finance Association.The country’s card spending growth sank to an all-time low in February, growing 3.4 percent on-year. It

July 23, 2013

Seoul shares hike 1.27 pct on earnings hopes

South Korean stocks closed 1.27 percent higher Tuesday as investor sentiment was boosted by upbeat expectations on second-quarter corporate earnings, analysts said.The local currency rose against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) soared 23.80 points to finish at 1,904.15. Trading volume was moderate at 347.8 million shares worth 4.24 trillion won ($3.79 billion) with advancers outpacing decliners 495 to 301. "Investors are getting their hopes high as compan

July 23, 2013

Seoul shares up 1.04 pct in late-morning trade

South Korean stocks traded 1.04 percent higher late Tuesday morning, fueled by gains in large-cap tech and financial firms, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) soared 19.57 points to 1,899.92 as of 11:20 a.m.Top-cap Samsung Electronics jumped 2.2 percent, with No. 4 lender Shinhan Financial Group surging 3.7 percent. LG Electronics shot up 4.3 percent. But auto shares lost ground. Hyundai Motor and its smaller affiliate Kia Motors fell more than 1 percent and 0

July 23, 2013

Seoul shares open higher on earnings hopes

South Korean stocks got off to a strong start Tuesday on hopes of second-quarter corporate earnings, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) shot up 14.44 points, or 0.77 percent, to 1,894.79 in the first 15 minutes of trading. Top-listed firms moved upward, with market bellwether Samsung Electronics gaining 0.7 percent and No. 1 steelmaker POSCO jumping more than 2 percent. South Korean companies have started posting their results for the second quarter from Monda

July 23, 2013

Gold Exchange to debut next year

Financial regulators said Monday they had mapped out a plan under which gold would be publicly traded on a dedicated exchange from the first half of 2014.As part of economic policymakers’ efforts to bring gold prices into the open, a state-controlled spot gold exchange will be set up next year as a sub-entity of the Korea Exchange, the nation’s main securities trading bourse.According to the Financial Services Commission, the policy has been finalized after a series of talks between the ruling S

July 22, 2013

Exporters face growing uncertainties

Korea’s exporters are likely to face growing uncertainties after the Prime Minister Shinzo Abe-led ruling coalition won a crushing victory in the Japanese parliamentary upper house elections.Market insiders predict that the Sunday election result in Japan will solidify or be used to vindicate the “Abenomics” program, which has weakened the Japanese yen versus major currencies to make its products more competitive overseas.The Institute for International Trade said in a statement on Monday that t

July 22, 2013

U.S. combined sales of Hyundai, Kia down 1.1%

Hyundai Motor Co., South Korea’s top carmaker, and its sister company Kia Motors Corp. saw their combined sales edge down 1.1 percent in the first six months of the year from a year earlier in the United States, a U.S. auto magazine said Monday.Hyundai Motor and Kia Motors sold a combined 638,361 units between January and June, compared with 645,376 units from a year earlier, according to Automotive News.The combined U.S. market share of Hyundai and Kia accounted for 8.2 percent during the cited

July 22, 2013

Summer vacation-related prices shoot up in June

South Korea’s prices related to spending on summer vacation shot up in June from a year earlier, bucking the trend of slowing growth of its consumer inflation, data showed Monday.The average hotel bill in the country rose 5.7 percent in June from the previous year, compared with a 1 percent on-year gain in consumer inflation last month, according to the data by Statistics Korea.Car rental costs jumped 21.4 percent on-year in June, and prices of sunscreens shot up 27.7 percent compared with the s

July 22, 2013

Inaugural event for KB Kookmin Bank chief protested

The inaugural ceremony for new KB Kookmin Bank president Lee Keon-ho was aborted due to a blockade by its labor union on Monday.Union members blocked him from attending the ceremony in protest over what they claimed was the government’s influence on his appointment. They called for Lee’s immediate withdrawal from the post. But Lee said he would seek to settle the dispute through dialogue with the labor union.Lee, a former professor, joined the bank in 2011 and had served as senior executive vice

July 22, 2013

Ministry to finalize stance on home acquisition tax by August

The government said Monday it will finalize its stance on when and how to lower the acquisition tax rates for home purchases by the end of August as part of efforts to stimulate the prolonged slump in the local property market.“Consultation is under way among ministries and agencies on the premise that the government will lower the acquisition tax rates in order to normalize the housing market,” the Finance Ministry said in a press release jointly unveiled by the land and Transportation Ministry

July 22, 2013

Lenders likely to see profit drop in Q2

The banking industry is expected to see a continued decrease in net profits in the second quarter, dashing hopes for a recovery in its earnings, a financial report said Monday.Researchers said that low interest rates would likely continue for the meantime, ultimately yielding less profit. Large firms’ underperformance, represented by STX Group and Ssangyong E&C, also accounted for the banks’ earning shock in the second quarter, they said.Financial companies, too, have admitted that the second qu

July 22, 2013

Seoul shares gain 0.84 pct despite Japan woes

South Korean stocks closed 0.84 percent higher Monday, dispelling concerns over potential negative impacts from the Japanese upper house election on the local economy, analysts said. The local currency rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) advanced 8.94 points to finish at 1,880.35. Trading volume was moderate at 353.2 million shares worth 3.60 trillion won ($3.22 billion) with gainers outnumbering decliners 432 to 361. "The Abe coalition's win in t

July 22, 2013

Seoul shares up 0.71 pct in late-morning trade

South Korean stocks traded 0.71 percent higher late Monday morning, as tech firms and shipbuilders widened gains, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) climbed 13.20 points to 1,884.61 as of 11:20 a.m. Market behemoth Samsung Electronics Co. rose 0.3 percent, with Hyundai Heavy Industries Co., the world's biggest shipyard, spiking nearly 5 percent. But NHN Corp., the country's top Internet portal operator, lost 0.7 percent. The local currency was changing hands a

July 22, 2013

Seoul shares open higher on G20 hopes

South Korean stocks opened higher Monday, buoyed by news that finance chiefs of the major 20 economies pledged to focus on growth, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) rose 5.34 points, or 0.29 percent, to 1,876.75 in the first 15 minutes of trading. Large-cap chemical and shipbuilding firms led the climb, with LG Chem advancing 0.5 percent and Hyundai Heavy Industries jumping 3 percent. Over the weekend, the Group of 20 (G20) nations agreed to prioritize growth

July 22, 2013