The Korea Herald

Currencies weaken to dollar after Trump's victory

The currencies of 15 emerging markets have all weakened against the U.S. dollar as the election of Donald Trump to the U.S. presidency sparked concerns about capital outflow, data showed Saturday.The foreign exchange rate of 15 emerging countries, including South Korea, rose against the greenback as of Thursday, meaning a weakening of currency value, compared with Tuesday when Trump won the presidential election, according to Daishin Securities Co. Currency trader in S. Korea (Yonhap)The FX rate

Nov. 19, 2016

Currencies weaken to dollar after Trump's victory

Korean financial sector gears up for risks from US

The South Korean financial sector is gearing up for turbulence in the global market in light of the high possibility of a US interest rate hike and the impact of the US presidential election.Lee Ju-yeol, governor of the Bank of Korea, said Friday that the central bank would take timely measures to ease growing market anxiety if the uncertainties spread across the sectors, posing a threat to the financial system. “It is still hard to judge how significant the impact of the surprising US election

Nov. 18, 2016

Korean financial sector gears up for risks from US

S. Korean households' real income, spending backtrack in Q3

South Korean households' real income and spending retreated in the third quarter from a year earlier amid a protracted economic slowdown, a government report showed Friday.An average household earned 4.44 million won ($3,700) per month in the July-September period, up 0.7 percent from the same period last year, according to the report by Statistics Korea.But their inflation-adjusted real income fell 0.1 percent on-year over the cited period, while the country's consumer prices index has hovered

Nov. 18, 2016

S. Korean households' real income, spending backtrack in Q3

Finance minister meets with experts over 2017 policy plan

South Korea's finance minister said Thursday that the government will map out detailed plans to deal with possible changes in the economic policies of the United States under President-elect Donald Trump. "Drastic changes in the world trade environment such as strengthening protectionism will weigh heavily on the world economy and the South Korean economy, which highly depends on exports,"Finance Minister Yoo Il-ho said in a meeting in Seoul with heads of state-run think tanks and economic exp

Nov. 17, 2016

Growing mortgage interests add household burden

The burden of mortgages on households is rapidly increasing as interest rates continue to rise amid growing uncertainties in the global financial market after the US presidential election win by Donald Trump. According to the banking industry Thursday, interest rates of both fixed and floating mortgages at major commercial banks have risen by more than 0.1 percentage point compared to late October. KEB Hana Bank’s fixed rate for five-year mortgages rose from between 3.20 and 4.4 percent to betwe

Nov. 17, 2016

Growing mortgage interests add household burden

Choi scandal delays appointments of new financial leaders　

In yet another spillover effect of the Choi Soon-sil scandal, the financial sector is paying close attention to who will replace some of the outgoing heads of major financial institutions, many of which have often been criticized for being a hotbed for revolving-door practices.Starting with Woori Bank and Industrial Bank of Korea in December, a handful of public and private financial institutions have outgoing chief executive officers. But they have not yet embarked on the appointment process as

Nov. 17, 2016

Doosan Infracore hits yearly high on Trump win, affiliate market debut

Stocks of Doosan Infracore Co. traded at a yearly high on Thursday as the country's leading construction equipment maker is set to benefit from USPresident-elect Donald Trump's proposed plan to spend massive amounts of money on infrastructure, its cost-cutting efforts and the market debut of an affiliate, industry sources said Thursday.Doosan Infracore changed hands at 10,000 won ($8.50) on the Seoul bourse as of 10:31 a.m., up 3.63 percent from the previous session's close, hitting a 52-week hi

Nov. 17, 2016

$Doosan Infracore hits yearly high on Trump win, affiliate market debut$

Card firms fare well despite lower commission income

South Korean credit card companies posted a small increase in their net profits in the first nine months of 2016, undeterred by commission cuts, data showed Wednesday.They lowered the fee rates early this year for merchants with the annual sales of between 200 million won ($170,000) and 300 million won to 1.3 percent from 2 percent.The rates for smaller ones were halved to 0.8 percent amid the government's push for revitalizing the economy.There had been worries that card firms' profits could be

Nov. 16, 2016

Korea hosts financial 'supervisory college' session with 8 nations

South Korea's state financial watchdog said Wednesday it opened a "supervisory college" session here with its foreign counterparts from eight countries as part of efforts to strengthen partnerships.The Financial Supervisory Service has invited a dozen representatives from nine similar organizations in eight nations where Shinhan Bank, a major lender based in Seoul, is operating.The countries are Japan, China, Germany, India, Cambodia, Kazakhstan, Indonesia and the Philippines.The gathering, offi

Nov. 16, 2016

Korea starts 'stress test' of insurers over new accounting rule

South Korea's financial authorities have launched full-fledged preparations for the adoption of a new global accounting regulation on the insurance industry, officials said Wednesday.The International Accounting Standards Board is expected to set a schedule for the introduction of the International Financial Reporting Standards (IFRS) 4 Phase II during a meeting under way in London.Under the rule, insurers' liabilities will be assessed on the basis of their market value, instead of book value. I

Nov. 16, 2016

Finance minister urges stern measures against market uncertainties

South Korea's finance minister reaffirmed on Wednesday that the Seoul government will take swift and firm action to ease rising market uncertainties stemming from the surprise victory of US President-elect Donald Trump."The South Korean economy will experience a negative impact from heightened uncertainties since the US presidential election as trade protectionism is widening and a possible US rate hike is imminent," Finance Minister Yoo Il-ho said in a ministerial meeting in Seoul. "The governm

Nov. 16, 2016

Insurance holders are lower credit risks, data shows

Insurance holders are less likely to default on their financial borrowings, showed the nation’s first big data analysis by a government institution on Tuesday. According to the results of an analysis of credit information of around 760 million consumers by Korea Credit Information Services, there is some correlation between insurance subscription and repayment of loans.Among 18 million borrowers (aged over 20) who took loans from the period between June 2015 and June 2016, those who were holding

Nov. 15, 2016

Insurance holders are lower credit risks, data shows

Seoul stocks fall on foreign sell-offs

South Korean stocks fell on Tuesday, derailed by sell-offs by foreign investors over concerns of a strong US dollar. The Korean won rose against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) declined 6.87 points, or 0.35 percent, to close at 1,967.53. Trade volume was moderate at 371 million shares worth 5.01 trillion won ($4.28 billion), with losers outnumbering gainers 446 to 369.With the US dollar expected to gain strength under Donald Trump's presidency, foreign inve

Nov. 15, 2016

KIC to lower barriers for smaller local funds

Korea’s sovereign wealth fund Korea Investment Corp. will lower barriers for smaller local funds to be eligible for entrustment to seek economies of scale in its overseas investments, the government said Tuesday.The Ministry of Strategy and Finance said the government agreed at a Cabinet meeting on the revision of the KIC-related act to induce more entrustment of the local institutions into the KIC and expand the scope of KIC’s investment targets.According to the government’s plan, the KIC will

Nov. 15, 2016

KIC to lower barriers for smaller local funds

AXA Group to expand investment in Korea

AXA Group, a Paris-based multinational insurance group, will expand its presence into the general insurance market in South Korea next year, the group’s Seoul subsidiary confirmed on Tuesday. According to AXA Direct Korea, the group will invest 25 billion won ($21.4 million) in the Seoul-based subsidiary in a bid to increase the general insurance business of the company, moving beyond the originally-focused direct car insurance market. CEO Francois Lecomte, who visited the group headquarters las

Nov. 15, 2016

[Photo News] Startup Market

Participants celebrate the launch of KRX Startup Market at a conference hall at the Seoul office of KRX in Yeouido, western Seoul, Monday. From left: Lee Young, head of Korea Venture Business Women’s Association; Hwang Rok, CEO of Korea Credit Guarantee Fund; Hwang Young-key, chairman of Korea Financial Investment Association; Lee Byung-rhae, standing commissioner at Securities and Futures Commission; Jeong Chan-woo, CEO of Korea Exchange;Kwon Seon-joo, CEO of Industrial Bank of Korea; and Choi

Nov. 14, 2016

[Kosdaq Star] i-Sens eyes US, China markets for blood glucose monitoring

Growth prospects look bright for i-Sens, a biosensor developer based in Seoul, as it aims to make inroads into the health care market in the US and China next year.With Donald Trump’s win in the US presidential election, pharmaceutical and biomedicine shares, including that of Kosdaq-listed i-Sens, rose globally last week over expectations of free competition in the drug market that is forecast to have fewer price regulations under the incoming Trump administration. CareSens N and CareSens N Pre

Nov. 14, 2016

[Kosdaq Star] i-Sens eyes US, China markets for blood glucose monitoring

Seoul stocks open lower amid uncertainties

South Korean shares opened slightly lower Monday amid uncertainties triggered by Donald Trump's unexpected win in the US presidential election.The benchmark Korea Composite Stock Price Index lost 2.47 points, or 0.13 percent, to 1,986.95 in the first 15 minutes of trading.Most large-cap stocks were mixed across the board.Market bellwether Samsung Electronics fell 1.44 percent while No. 2 chipmaker SK hynix was up 0.50 percent. Top automaker Hyundai Motor advanced 0.38 percent and its auto parts

Nov. 14, 2016

Report shows minors of conglomerate families holding big chunk of company stocks

Minors of conglomerates' owner families hold over 100 billion won (US$85.88 million) worth of stocks in affiliate companies, a report provided Monday by the Fair Trade Commission showed, a business practice that is legal but denounced nonetheless as a means of dodging taxes and retaining management control.According to the report submitted to the parliamentary committee on finance, 43 underage family members at 16 large business groups held stocks in 37 affiliates as of April 1 this year. The va

Nov. 14, 2016

Seven bidders win Woori Bank stake

The Financial Services Commission announced on Sunday it would sell a total of 29.7 percent government stake in Woori bank to seven bidders, ending sixteen-years of efforts to privatize the state-funded lender. The seven chosen buyers are: Tong Yang Life Insurance, Mirae Asset Global Investments, Eugene Asset Management, Kiwoom Securities, Korea Investment & Securities, Hanwha Life Insurance and IMM Private Equity. IMM PE has won the largest share of 6 percent among the buyers. Tong Yang took 4

Nov. 13, 2016