S. Korean banks ramping up efforts to go overseas

South Korean banks are further turning their focus to the Asian market as squeezed profit margins and the economic slowdown at home are prompting them to find new sources of income, market watchers said Monday.Local banks' move to tap the overseas market is not a new trend, but top lender Kookmin Bank and its three major rivals are ramping up efforts to make inroads into the Asian market where economic growth remains relatively solid, they added.Top lender Kookmin Bank is aiming to provide tailo

May 27, 2013

Seoul shares up 0.3 percent in late-morning trade

South Korean stocks traded 0.3 percent higher late Monday morning, buoyed by blue-chip exporters, analysts said.   The benchmark Korea Composite Stock Price Index (KOSPI) rose 5.93 points to 1,979.38 as of 11:20 a.m.  LG Electronics, the country's leading home appliance maker, jumped 3.25 percent and No. 1 automaker Hyundai Motor gained nearly 1.5 percent.  In contrast, steelmakers lost ground. POSCO dropped 0.8 percent. Large-cap zinc smelter Korea Zinc also shed 1.8 percent.   The local curren

May 27, 2013

Seoul shares open higher on eased yen woes

South Korean stocks opened slightly higher Monday, as a hike in Japanese government bond yields last week lifted lingering concerns over yen weakness, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) added 2.98 points, or 0.15 percent to 1,976.43 in the first 15 minutes of trading. Blue-chip exporters drove up the main index, with tech heavyweight Samsung Electronics gaining 0.61 percent and Kia Motors, smaller affiliate of No. 1 carmaker Hyundai Motor, rising more than 1 p

May 27, 2013

Seven Koreans with paper firms in tax havens to be disclosed

A list of seven conglomerate owners and corporate executives who set up bogus companies in the British Virgin Islands, a tax haven in a bid to evade taxes and create slush funds is expected to be disclosed on Monday. The Korea Center for Investigative Journalism, a non-profit, independent news agency said on Sunday that seven Koreans who currently own paper companies, including four owners of family-run conglomerates, will be exposed through a press release at noon.“The data will be uploaded on

May 26, 2013

BNP Paribas investigated for unauthorized activities here

Financial regulators launched an investigation into the Korean unit of French-based BNP Paribas for engaging in allegedly unauthorized business practices, sources said Sunday.The largest bank in France has operated an investment banking business in Seoul without regulators’ permission, multiple sources told The Korea Herald.The banking regulations stipulate that there should be a strict firewall between the (commercial or corporate) banking and the investment banking units unless there is regula

May 26, 2013

FSS investigating CJ Group for stock manipulation

The Financial Supervisory Service is making inquiries into CJ Group over the allegations the business group engaged in fraudulent stock trading, regulatory officials said Sunday.According to the officials, the regulatory investigation is focused on whether CJ had conducted business practices that include stock manipulation or illicit use of insider information.The probe was initiated on suspicion that CJ Chairman Lee Jay-hyun might have used slush funds secretly in borrowed-named, offshore bank

May 26, 2013

1 million people to benefit from state-led debt workout programs

The number of individuals benefiting from the government-led debt-restructuring programs will reach up to 1 million this year, data showed Sunday.The Park Geun-hye government has been pushing to rescue people saddled with debt for a long time as part of efforts to help them resume their ordinary economic lives. This is also part of a drive to ease rising household debts, which are feared to weigh on the overall economy.In a related move, the government recently launched the debt relief program d

May 26, 2013

Exporters hit by weak yen in first quarter: report

South Korean exporters saw their first-quarter sales shrink as the impact of the weak yen continued to put them at a disadvantage against Japanese rivals, a report showed Sunday.The yen has weakened against the U.S. dollar significantly since the fourth quarter of last year, apparently driven by the so-called Abenomics ― a mixture of aggressive monetary and fiscal policies preached by its Prime Minister Shinzo Abe.A weak yen makes Japanese products less expensive, making them a challenge for Sou

May 26, 2013

KRX chairman offers to step down

The head of South Korea’s stock bourse operator has offered to resign, signaling what could be the beginning of a replacement at the top of brokerage-related agencies, industry sources said Sunday.Kim Bong-soo, the chairman of the Korea Exchange recently expressed his intent to step down to Financial Services Commission Chairman Shin Je-yoon, according to the sources.Kim, 59, offered to resign, saying that he has done his part and now is the time to leave, a source said on condition of anonymity

May 26, 2013

Local governments, public firms likely to see debt top W100tr

The total debt of local governments and the public companies under their roofs is likely to exceed 100 trillion won ($890 billion) in 2012, according to officials of the Ministry of Security and Public Administration. Local autonomous governments include provinces, metropolitan cities, cities, counties and districts.The ministry sources said the debt of local governments is forecast to reach 40 trillion won ($36 billion) last year, while that of local public companies is likely to near at 70 tri

May 26, 2013

Korean shares likely to rise next week: analysts

South Korean stocks are likely to rise next week by shaking off concerns of a possible end to the U.S. quantitative easing and the plunge in Japan's stock market, analysts said Saturday.The benchmark Korea Composite Stock Price Index closed at 1,973.45 this week, down 0.67 percent from 1,986.81 a week earlier.The analysts said the KOSPI is expected to advance as the U.S. was unable to terminate its quantitative easing due to weaker-than-expected economic data and the more than 7 percent drop in

May 25, 2013

FSC aims to increase financial sector’s share of economy

Financial Services Commission chairman Shin Je-yoon on Friday told the country’s financial group heads on Friday that the government would try to develop the financial industry by boosting sales of value-added products.Outlining a 10-year project, Shin said the country aimed to increase the relative weight of the financial industry to 10 percent of the country’s overall economic output.The participants in the meeting included Financial Supervisory Service head Choi Soo-hyun, KB Financial Group c

May 24, 2013

‘Foreign stimulus exit could shock Korea’

Korea should brace for increased capital-flow volatility in the stock and bond markets stemming from the possibility of the U.S. and other advanced economies exiting monetary stimulus in the near future.There would be tumbles on global benchmark equities as seen with Japan’s Nikkei 225 index that fell more than 7 percent, Bank of Korea Gov. Kim Choong-soo warned investment bankers in a meeting on Friday.Japan’s benchmark stock index suffered its highest drop in 13 years on Thursday due to a vari

May 24, 2013

Seoul shares up 0.22 pct on eased currency woes

South Korean stocks edged up 0.22 percent Friday as exporters gathered ground on eased concerns over the weak Japanese yen, analysts said. The local currency rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) moved up 4.26 points to finish at 1,973.45. Trading volume was low at 278.3 million shares worth 3.67 trillion won ($3.25 billion) with gainers outstripping losers 420 to 383.Market watchers said the overall gain came as blue chip exporters gathered ground

May 24, 2013

Seoul shares up 0.15 pct in late-morning trade

South Korean stocks traded 0.15 percent higher late Friday morning on gains in autos and constructions, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) moved up 3.05 points to 1,972.24 as of 11:20 a.m.Carmakers continued to trade higher on eased concerns over the weak yen, with Hyundai Motor rising 0.99 percent and Kia Motors adding 1.22 percent. Top auto parts maker Hyundai Mobis gained 1.61 percent.Builders also gathered ground, with Hyundai Engineering & Construction add

May 24, 2013

Seoul shares open higher on techs, autos

South Korean stocks opened higher Friday due mainly to gains in technology firms and carmakers, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) gained 9.37 points, or 0.48 percent, to 1,978.56 in the first 15 minutes of trading.Tech blue chips drove up the market, with Samsung Electronics advancing 0.4 percent and top chipmaker SK hynix moving up 0.64 percent. Flat panel maker LG Display added 0.34 percent.Carmakers also gathered ground, with No. 1 Hyundai Motor rising 2.22

May 24, 2013

Won falls 1.3% against dollar on Fed exit woes

The South Korean currency fell 1.3 percent against the U.S. dollar on Thursday as remarks by the head of the Federal Reserve on possible reductions in bond purchases spurred demand for the greenback, dealers said.The local currency closed at 1,128.70 won per the greenback, down 14.70 won from Wednesday’s close.It marked the weakest level since April 12 when the Korean won hit 1,129.10 against the dollar. It also was the sharpest daily fall since May 10.Market watchers said that the dollar gained

May 23, 2013

4 plant suppliers fined $1m for cartel

Korea’s antitrust regulator announced Thursday that it imposed $1 million (1.15 billion won) in fines on foreign plant engineering firms and their bid brokers over price-fixing to win bids.According to the Fair Trade Commission, two foreign plant engineering firms and two bidding brokers breached competition laws to win overseas deals from a large Korean construction company.The four players are Pall Korea Ltd of U.S.-based Pall Corporation, Germany-based Dahlman Industrial Group, IPEG ENG Ltd.

May 23, 2013