Daily debit card spending in Korea up 15.2% in 2016

Daily debit card spending rose 15.2 percent in 2016 from a year earlier, central bank data showed Friday, in the latest sign of growing popularity of debit cards that offer tax benefits.Debit card spending on a daily basis came to 424 billion won ($379 million) in 2016, compared with 368 billion won a year earlier, according to the data compiled by the Bank of Korea. (Yonhap)Meanwhile, credit card holders in South Korea spent an average of 1.84 trillion won a day in 2016, up 9.7 percent from 1.6

March 31, 2017

Seoul shares almost flat in late-morning trade

South Korean stocks traded nearly unchanged late Friday morning, as bearish tech stocks capped gains in foodmakers and oil refiners, analysts said. The benchmark Korea Composite Stock Price Index inched down 1.14 points, or 0.05 percent, to move at 2,163.50 as of 11:20 a.m.Tech giant Samsung Electronics retreated 0.8 percent, with chipmaker SK hynix falling 1.6 percent. In contrast, shares of Shinsegae Food soared more than 3 percent, with oil refiner S-Oil rising 2 percent. The local currency w

March 31, 2017

Export-Import Bank of Korea suffers first loss in 2016

The Export-Import Bank of Korea, one of South Korea's state-run policy banks, suffered a net loss of 1.46 trillion won ($1.3 billion) last year, hit by higher provisions against its loans extended to the country's ailing shipbuilding industry. It was the first time that the bank reported an annual net loss since its foundation in 1976, according to the bank's audit report posted on its website Friday.(Yonhap)The bank reported a net profit of 41.1 billion won in 2015, the report showed. The bank

March 31, 2017

KRX exports stock IT system to 8 nations

The South Korean stock market operator said Friday it has exported its advanced IT system for stock trading to Malaysia and seven other countries over the past decade, earning more than 80 billion won ($71.6 million).Starting with the establishment of a bond trading system in Malaysia in 2007, the Korea Exchange has exported 14 IT systems related to the stock market to the eight countries, mostly in Southeast Asia.(Yonhap)In 2011, the KRX set up a joint stock exchange in Laos in partnership with

March 31, 2017

Seoul shares open tad higher on steelmaker, auto gains

South Korean stocks opened slightly higher Friday, buoyed by strong blue chip steelmakers and automobiles, analysts said. The benchmark Korea Composite Stock Price Indexticked up 0.78 point, or 0.04 percent, to trade at 2,165.42 in the first 15 minutes of trading. POSCO, the country's leading steelmaker, jumped nearly 2 percent, after it released a better-than-expected earnings guidance for the first quarter Thursday. No. 1 automaker Hyundai Motor was also up almost 1 percent, with its auto part

March 31, 2017

Seoul shares tad down on institutional selling

South Korean stocks closed slightly lower Thursday, as institutional investors opted to cash in profits from the recent rally amid a lack of fresh momentum in the market, analysts said. The local currency fell against the US dollar. After starting up some 0.3 percent at the opening bell, the benchmark Korea Composite Stock Price Index soon turned lower, closing down 2.34 points, or 0.11 percent at 2,164.64.Trading volume was moderate at 633.5 million shares worth 4.31 trillion won ($3.84 billion

March 30, 2017

Rates for household loans inch down in February

Bank lending rates on new household loans edged down in February and interest rates paid by banks on new deposits also fell, central bank data showed Thursday.The average interest rates on fresh household loans extended by local banks came to 3.38 percent in February, down 0.01 percentage point from the previous month, according to the Bank of Korea.(Yonhap)The BOK data came amid South Korea's efforts to tackle rising household debt. South Korea's outstanding household credit -- which is compose

March 30, 2017

Seoul shares down 0.26% in late-morning trade

South Korean stocks snapped earlier gains and turned bearish late Thursday morning, as widening losses in airlines and foodmakers pushed down the main index, analysts said. The benchmark Korea Composite Stock Price Index lost 5.74 points, or 0.26 percent, to move to 2,161.24 as of 11:20 a.m.Shares of Korean Air Lines, the country's top air carrier, tumbled nearly 3 percent, with those of Lotte Confectionery dipping 2.7 percent. LG Electronics, the smaller rival of tech giant Samsung Electronics,

March 30, 2017

Kakao's Internet bank to get final approval on April 5

The Internet bank of Kakao Corp., South Korea's dominant chat app, is expected to win a final regulatory approval early next month, an industry source said Thursday, clearing the final hurdle for Kakao to launch the nation's second Internet bank. The Financial Services Commission will hold a meeting on April 5 to grant the final approval for Kakao's Internet bank, the source said on the condition of anonymity. (Yonhap)An Internet bank offers banking and financial services without any branch netw

March 30, 2017

KDB informs creditors of outcome of due diligence on Daewoo Shipbuilding

The main creditor of Daewoo Shipbuilding & Marine Engineering Co. on Thursday informed private creditors and bondholders of the outcome of due diligence on the troubled shipbuilder, as part of its efforts to persuade them to agree on a debt-for-equity swap.The state-run Korea Development Bank, the main creditor, was holding a meeting with stakeholders of Daewoo Shipbuilding, including the National Pension Service and the Korea Post, to discuss the financial arrangements that have to be undertake

March 30, 2017

BOK vows to keep monetary easing policy

South Korea's central bank vowed Thursday to maintain the current monetary easing policy to support growth.The Bank of Korea has left its key rate unchanged at an all-time low of 1.25 percent since June when it made a surprise rate cut to bolster Asia's fourth-biggest economy.(Yonhap)The BOK will "maintain its stance of monetary policy accommodation as the inflationary pressures are not expected to be high given the moderate pace of domestic economic growth," the BOK said in a report submitted t

March 30, 2017

Seoul shares edge up despite foreign sell-off

South Korean stocks closed slightly higher on Wednesday, aided by gains in key blue-chips, although foreigners turned to net sellers. The local currency fell slightly against the US dollar. The benchmark Korea Composite Stock Price Index gained 3.69 points, or 0.17 percent to finish at 2,166.98. Trading volume was moderate at 621.4 million shares worth 5.02 trillion won ($4.5 billion), putting gainers and decliners nearly in a tie 400 to 394."Foreign investors are on selling mode after they drov

March 29, 2017

'Korea still has room for monetary policy to support growth'

Cho Dong-chul, one of the seven members of the Bank of Korea’s key rate-setting committee, said Wednesday that Korea should still seek a monetary policy to sustain the nation’s weak growth.His comment is in contrast with the view of BOK Gov. Lee Ju-yeol, who has repeatedly emphasized that the era of monetary policy has nearly ended and the government should use more aggressive expansionary fiscal policy to support growth. Cho Dong-chul, one of the seven members of the Bank of Korea’s monetary po

March 29, 2017

[News Focus] Multinational firms using royalties to avoid tax: expert

Multinational firms in South Korea tend to transfer much higher proportions of their revenues to their headquarters overseas in dividends and royalties than their Korean counterparts, an expert said Monday.Payments in royalties and dividends are categorized as expenses, which in turn lowers their reported earnings to the Korean authorities.Some companies may take advantage of such system to avoid paying corporate taxes, which needs extra monitoring by the National Tax Office, said Kim Kab-lae, a

March 29, 2017

Korean households' surplus funds fall in 2016

Surplus funds held by South Korean households and nonprofit institutions fell in 2016 from a year earlier as they reduced their investments in stocks and bonds, central bank data showed Wednesday.The excess funds held by households and nonprofit institutions came to 70.5 trillion won ($63 billion) at the end of last year, down from 94.2 trillion won from the previous year, according to preliminary data from the Bank of Korea." (Yonhap)The surplus funds held by households and nonprofit institutio

March 29, 2017

Seoul shares nearly flat in late-morning trade

South Korean stocks traded nearly flat late Wednesday morning, as a fall in shares of domestic-focused firms offset gains in tech issues, analysts said. The benchmark Korea Composite Stock Price Index was up 0.33 points, or 0.02 percent, to 2,163.64 as of 11:20 a.m.Shares of Samsung Electronics and SK hynix jumped more than 1 percent, with those of LG Display, a leading flat panel maker, soaring nearly 3 percent. In contrast, SK Telecom, the country's top mobile carrier, shed nearly 2 percent. B

March 29, 2017

Woori Bank offers W85b credit facility in China

South Korea's Woori Bank said Wednesday it has offered a won-denominated usance letter of credit worth 85 billion won ($76.2 million) to some Chinese banks, including the Bank of China and the Bank of Communications. The facility allows South Korean firms doing businesses in China to help ease their risks related to foreign currency fluctuations, Woori Bank said in a statement.  (Yonhap)Using the credit facility, a South Korean firm can swiftly receive a payment with the Korean currency when it

March 29, 2017

Cosmetics export to China soars in Jan-Feb despite THAAD row

South Korea's export of cosmetics products to China jumped in the first two months of this year from a year earlier, industry data showed Wednesday, underscoring solid gains in trade despite the trade row between Beijing and Seoul over a US anti-missile system. The outbound shipments of cosmetics goods to the world's second-largest economy surged 51.6 percent on-year to $270 million in the January-February period, according to data by the Korea Cosmetics Association.  (Yonhap)They posted a 10 pe

March 29, 2017

Households log first 'interest deficit' in 2016

South Korean households posted the first deficit in the so-called interest balance in 2016 as their interest payments grew at a much faster pace than interest income, central bank data showed Wednesday.Local households' income from interest on deposits at local banks and other financial institutions reached an estimated 36.1 trillion won ($32.4 billion) last year, up 5.4 percent from the previous year and the smallest amount in 20 years, according to the data by the Bank of Korea. (Yonhap)In con

March 29, 2017

Seoul shares open tad higher on US rally

South Korean stocks opened slightly higher Wednesday, tracking overnight gains on Wall Street that were spurred by positive consumer data, analysts said. The benchmark Korea Composite Stock Price Index rose 5.08 points, or 0.23 percent, to 2,168.39 in the first 15 minutes of trading.  US markets rallied after the data showed that its consumer confidence for March surged to an over 16-year high, underlining that its economy remains sound with a narrowing trade deficit and anticipation for a bette

March 29, 2017