Nine public financial firms pay better than Samsung

State-run financial companies under the management jurisdiction of the Financial Services Commission are reemerging as firms that offer the best-paying jobs of any industry.Employees at nine public financial companies of the regulatory body received an annual monthly salary of some 87 million won ($79,500) on average last year, more than the average 70 million won at Samsung Electronics, Korea’s biggest company listed on the stock market, according to a public disclosure filing.The nine are Kore

May 6, 2013

STX creditors likely to agree on rescue plan

Creditors of STX Group tentatively reached a consensus that they will give their “qualified” consent to bailing out ailing units of the shipbuilding giant, the state-run Korea Development Bank said Monday.The main creditor KDB and others held a meeting to discuss whether to accept the proposal from the business group over joint management of several units by creditor banks.Their qualified consent means that the creditors are seeking to inject emergency relief funds into the debt-saddled STX Grou

May 6, 2013

Seoul shares down 0.22 pct despite ECB rate cut

South Korean stocks closed 0.22 percent lower Monday despite the European Central Bank's (ECB) stimulus measure as investors were at odds over its impact on the global economy down the road, analysts said. The local currency gained against the U.S. dollar.   The benchmark Korea Composite Stock Price Index (KOSPI) shed 4.23 points to finish at 1,961.48. Trading volume was low at 291.7 million shares worth 3.9 trillion won (US$3.56 billion) with gainers outnumbering decliners 447 to 356.  "Seoul s

May 6, 2013

Seoul shares up 0.34 pct in late-morning trade

South Korean stocks traded 0.34 percent higher late Monday morning on gains in builders and logistics companies, analysts said.   The benchmark Korea Composite Stock Price Index (KOSPI) moved up 6.7 points to 1,972.41 as of 11:20 a.m.   Builders led the market gain, with Hyundai Engineering & Construction adding 3.34 percent and Daewoo Engineering & Construction climbing 1.74 percent. GS Engineering & Construction moved up 2.57 percent.  Logistics firms also gathered ground, with CJ Korea Expres

May 6, 2013

Authorities to probe price swings on stock markets

South Korea's financial authorities will increase surveillance on speculative movements in local shares this week, market sources said Monday. A team of officials from the Financial Services Commission (FSC), the Financial Supervisory Service (FSS), the Korea Exchange and prosecutors will launch a probe into price-rigging activities, according to sources.The local stock market has been suffering from price-rigging deals involving several so-called "celebrity shares," which are usually related to

May 6, 2013

Seoul shares open higher on U.S. gains

South Korean stocks opened higher on Monday, tracking gains on Wall Street in the previous trading session, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) moved up 14.28 points, or 0.73 percent, to 1,979.99 in the first 15 minutes of trading.Shares gathered ground across the board, with No. 1 carmaker Hyundai Motor rising 0.5 percent and top steelmaker POSCO adding 0.95 percent. Leading chipmaker SK hynix advanced 1.02 percent.U.S. stocks ended higher on Friday on the coun

May 6, 2013

Top 10 conglomerates' market cap declines in May

Affiliates of South Korea's top 10 business groups saw their presence on the main bourse decline in May from end-2012 amid the protracted economic slowdown, data showed Monday.The market capitalization of the top 10 conglomerates' listed firms came at 713.1 trillion won ($651 billion) on Thursday, down 2.27 percent from 729.7 trillion won tallied in end-2012, the Korea Exchange (KRX) data showed.The number accounts for 56.62 percent of the combined market cap of the companies listed on the main

May 6, 2013

Foreign investors increase net sales of Seoul stocks

Foreign investors expanded net sales of South Korean stocks this year on heightened geopolitical risks and concerns that a weaker yen would hurt Korean exporters, data showed Sunday.Foreign investors unloaded a net $5.16 billion worth of Seoul shares from January to April, according to data by the Korea Center for International Finance.Foreigners bought more shares than they sold in five Asian countries including Taiwan and India, purchasing a net $10.56 billion worth of stocks from seven Asian

May 5, 2013

BOK likely to freeze key interest rate

The market is eyeing whether the Bank of Korea will cut its key interest rate when it holds its monetary policy committee meeting Thursday, following Europe’s widely expected rate slash from 0.75 percent to a record low of 0.5 percent last week as the eurozone seeks to revive its economy through monetary easing.Despite the government’s growing calls for a lower rate to further spur the economy, Korea’s central bank has kept its key base rate unchanged over the last six months, citing recovery to

May 5, 2013

BOK likely to freeze rate this week

The market is eyeing whether the Bank of Korea will cut its key interest rate when it holds its monetary policy committee meeting Thursday, following Europe’s widely expected rate cut from 0.75 percent to a record low of 0.5 percent last week.Despite the government’s growing calls for a lower rate to further spur the economy, Korea’s central bank has kept its key base rate unchanged for the last six months, citing an expected recovery toward the latter half of this year.It seems BOK Governor Kim

May 5, 2013

Seoul shares may rebound next week on ECB's rate cut

South Korea's stock market may rebound next week as the key rate cut by the European Central Bank (ECB) could prompt foreign investors to buy local shares, analysts said Saturday.The ECB cut its benchmark rate by a quarter percentage point to 0.5 percent earlier this week, adding to hopes for an economic stimulus in Europe.European investors have gone on buying sprees on the Seoul bourse for two to three months in the past when the European Central Bank has lowered its benchmark rate.The benchma

May 4, 2013

Credit appraisers downgrade ratings on builders, shippers

South Korea’s credit appraisers slashed ratings on corporate bonds floated by local builders and shipping firms last year, data showed Friday, apparently due to the protracted slump in the industries.Among 22 firms which suffered credit downgrades in 2012 by the Korea Investors Service Inc., construction companies and shippers accounted for eight, or 36 percent of the total, industry data showed.The KIS slashed ratings on local builders including Samwhan Corp., Doosan Engineering & Construction

May 3, 2013

BOK warns against expansion of yen carry trade

South Korea’s central bank warned on Friday that the so-called yen carry trade might expand, citing prospects for the yen’s weakness and investors’ reduced bets on safer assets.The yen-funded carry trade refers to the borrowing of yen at low interest rates to invest in higher-yielding and riskier assets.Usually, the yen carry trade tends to increase when the yen goes through a period of prolonged weakness and the interest-rate gap among countries rises or global market jitters ease.The Bank of K

May 3, 2013

Financial firms set W700b in Gaeseong relief fund

Financial companies will offer bailout funds worth 700 billion won ($636 million) to the 123 financially troubled South Korean companies operating in the suspended Gaeseong industrial complex in North Korea, financial regulators said Friday.Their emergency relief loans, aimed at preventing the firms from experiencing a liquidity crisis, were fostered after the North suspended operations of the complex by pulling out most of its 53,000 workers about a month ago in protest against a joint military

May 3, 2013

4 STX units apply for creditors’ management

STX Group has applied for joint management of its four financially distressed subsidiaries by creditor banks, the state-run Korea Development Bank said Friday.The main creditor KDB also said STX Group is considering selling two units of STX Europe ― STX France and STX Finland ― as part of efforts to improve the group’s overall financial soundness.The shipbuilding conglomerate’s application for creditors’ comanagement is seen as a desperate effort to overcome the financial crisis facing STX Heavy

May 3, 2013

Seoul shares gain 0.44 pct on U.S. jobs data

South Korean stocks closed 0.44 percent higher Friday, as five-year low jobless data in the United States cheered investor sentiment over an improving economy, analysts said. The local currency rose against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) advanced 8.57 points to 1,965.78. Trading volume was light at 306.8 million shares worth 4.13 trillion won (US$3.75 billion) with gainers outnumbering decliners 499 to 299. "U.S. labor data give us a sense of where we ar

May 3, 2013

Seoul shares down 0.04 pct in late-morning trade

South Korean stocks traded 0.04 percent lower late Friday morning after opening higher, dented by losses in blue-chip tech firms, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) shed 0.8 points to 1,956.41 as of 11:20 a.m. Top-cap tech giant Samsung Electronics lost 0.13 percent, with chipmaker SK hynix falling 1.36 percent. In contrast, autos gained ground, with Hyundai Motor rising 1.8 percent and its smaller affiliate Kia Motors soaring 2.5 percent. The local currency w

May 3, 2013

Seoul shares open higher on U.S. data, ECB rate cut

South Korean stocks got off to a strong start Friday, buoyed by upbeat economic data in the United States and the policy rate cut by the European Central Bank (ECB), analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) gained 4.77 points, or 0.24 percent, to 1,961.98 in the first 15 minutes of trading. Telecom companies and metal manufacturers drove up shares, with No. 1 mobile carrier SK Telecom jumping 2.5 percent and zinc smelter Korea Zinc hiking nearly 5 percent. The U.S.

May 3, 2013

ECB cuts benchmark interest rate to 0.5 percent

FRANKFURT, Germany (AP)- The European Central Bank has cut its benchmark interest rate to a new record low to stimulate the lagging economy in the 17 countries that use the euro. The bank's rate-setting council lowered the refinancing rate a quarter-point to 0.5 percent at a meeting in Bratislava, Slovakia.  The move comes amid fears the eurozone economy may not recover later in the year from its recession.   In theory, a cut helps companies by lowering borrowing costs for banks that have borrow

May 2, 2013

Regulators warn insurers against overpricing

Financial regulators warned insurance companies to not purposefully over-charge customers on insurance fees.The Financial Supervisory Service said Thursday that it will hold chief executives accountable for such practices and impose tougher disciplinary measures against them and their companies, such as business suspension or higher fines.The financial regulatory enforcement agency also plans to deeply scrutinize whether insurers are fairly pricing their products for their policyholders in the s

May 2, 2013