BOK voices woes over household debt amid deepening 'credit divide'

South Korea's central bank on Tuesday warned against risks of household debt problems, saying that local households' debt-serving capacity worsened amid risks from low-credit borrowers and low-income families.The Bank of Korea said in a semi-annual financial stability report that the growth of household debt slowed last year, but the capacity of households to repay debt deteriorated amid the protracted economic recovery.The ratio of household debt against disposable income stood at a record 136

April 30, 2013

Seoul shares up 1 pct in late-morning trade

South Korean stocks traded 1 percent higher late Tuesday morning, led by gains in large-cap exporters, analysts said.   The benchmark Korea Composite Stock Price Index (KOSPI) shot up 19.34 points to 1,960.04 as of 11:20 a.m.   Top-tiered blue chips drove up the main index, with market bellwether Samsung Electronics jumping 2.4 percent and Hyundai Motor climbing 0.5 percent.  In contrast, domestic-focused shares lost ground. State-run electricity provider Korea Electric Power Corp. fell 1.5 perc

April 30, 2013

Seoul shares open higher on U.S. data, Italy

South Korean stocks got off to a strong start Tuesday, as upbeat U.S. housing data and the new Italian government eased jitters over the global economy, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) soared 13.86 points, or 0.71 percent, to 1,954.56 in the first 15 minutes of trading. Most shares gathered ground, with LG Uplus, the country's smallest mobile carrier, and electronic parts maker LG Innotek rising more than 2 percent. U.S. markets finished up Monday on a fore

April 30, 2013

Shinhan Financial reports weak first-quarter earnings

Shinhan Financial Group announced a 483.3 billion won ($436.6 million) net profit during the first quarter of this year. It was a 41.8 percent drop from a year earlier and a 54.8 percent increase from a quarter earlier.The quarterly operating profit fell 10.1 percent from the previous quarter due to the increase in loan losses, Shinhan said. The overall weak quarterly performance occurred among Shinhan’s bank sectors, which almost halved to 341.5 billion won from a year ago, with the group holdi

April 29, 2013

Savings banks’ seized properties put up for auction

Expensive and rare goods once owned by South Korean savings banks were put up for a public auction on Monday as part of a liquidation process after they underwent a whirl of bankruptcies two years ago. The state-run Korea Deposit Insurance Corp. put up some 600 high-value items for auction that were seized from 26 savings banks that became insolvent between 2011-2012, according to the debt clearer.Such assets include real estate, expensive golf club memberships and foreign luxury cars whose appr

April 29, 2013

Current account surplus hits 4-month high in March

South Korea’s current account surplus widened to a four-month high in March as exports gained ground despite the yen’s weakness and the service account improved, the central bank said Monday.The current account surplus reached $4.98 billion in March, up from $2.71 billion the previous month, according to the Bank of Korea. The current account is the broadest measure of cross-border trade.The March reading was the largest since November last year, marking the 14th straight month of a surplus run.

April 29, 2013

Law firms, foreign financial firms may face external audits

The Financial Services Commission is considering widening the scope of its accounting oversight targets under the Park Geun-hye administration’s drive to raise tax revenue.The new targets may include law firms, accounting firms, religious groups, donation fund operators, some local units of foreign financial firms and luxury brands operating here, FSC officials said.The cited sectors have not been subject to external audits, while financial statements of a greater portion of businesses have been

April 29, 2013

Seoul shares inch down on foreign selloff

South Korean stocks slid 0.2 percent Monday on foreign selling spurred by worse-than-expected quarterly growth in the United States, analysts said. The local currency rose against the U.S. dollar.   The benchmark Korea Composite Stock Price Index (KOSPI) lost 3.86 points to close at 1,940.70. Trading volume was light at 260.8 million shares worth 3.59 trillion won (US$3.23 billion) with losers outstripping gainers 426 to 374.   "Investors stayed on the sidelines as there were no leads to drive u

April 29, 2013

Seoul shares down 0.36 pct late-morning trade

South Korean stocks traded 0.36 percent lower late Monday morning, led by losses in shippers an builders, analysts said.   The benchmark Korea Composite Stock Price Index (KOSPI) slipped 7.04 points to 1,937.52 as of 11:20 a.m.   Hanjin Shipping plunged nearly 8 percent, with logistics firm Hyundai Glovis falling 2.7 percent, as concerns over global economic recovery worsened on lower-than-expected first-quarter growth rate of the United States. No. 1 builder Hyundai Engineering & Construction l

April 29, 2013

Seoul shares turn lower after strong start

South Korean stocks turned lower after opening higher, dented by widening losses in large-cap exporters and major banking groups, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) fell 2.12 points, or 0.11 percent to 1,942.44 in the first 15 minutes of trading. Tech heavyweight Samsung Electronics shed 0.4 percent, with blue-chip auto-parts maker Hyundai Mobis slipping nearly 1.6 percent. Shares of major banking firms lost ground as they began to release quarterly earnings f

April 29, 2013

Firms’ spending at room salons tops W900b

Korean firms’ annual usage of company credit cards at entertainment establishments including room salons totaled at least 1.4 trillion won ($1.25 billion) on average, the Korea Institute of Public Finance said Sunday.According to the institute’s research report, the nation’s corporate sector paid 1.41 trillion won with their company cards at entertainment spots in 2011.Room salons (or hostess bars) topped the list in company card settlement records of 923.7 billion won, followed by karaoke rooms

April 28, 2013

Ergo Daum warned for manipulating figures

The Financial Supervisory Service said Sunday that it issued a “warning” against Ergo Daum Direct, an online auto insurance company, for rigging insurance premium-related figures in an alleged bid to attract more policyholders.Ergo Daum Direct, which is now under the wing of the France-based Axa General Insurance, was also levied fines of 50 million won ($44,600) from the financial regulator.In 2012, the insurer sought to increase its market share by manipulating the loss ratio ― or the ratio of

April 28, 2013

Korea’s food exports to Japan dive in 2012

Amid chilly South Korea-Japan relations, the South’s food exports to Japan took a dive last year, the national agricultural product agency said Sunday. South Korea exported $32 million worth of makgeolli, Korea’s traditional fermented rice wine, to Japan last year, 33.9 percent less than the amount shipped to the country in 2011, according to the Korea Agro-Fisheries & Food Trade Corporation.Exports of South Korea ramyeon, or instant noodles, reached $43 million last year, down 18.6 percent from

April 28, 2013

‘Intervention in FX market will do more harm than good’

South Korea’s finance minister said Saturday that it would “do more harm than good” for the government to intervene in the foreign currency market.Hyun Oh-seok, who concurrently serves as deputy prime minister in charge of the economy, made the remarks during a parliamentary committee meeting. “I think that it would do more harm than good for the government directly to intervene in (the movement of) foreign exchange rates in terms of market stability and trust,” he said.His remarks were in respo

April 28, 2013

Shares likely to move on ECB this week

South Korean stocks are forecast to set their directions according to results of the European Central Bank’s rate-setting meeting next week, analysts said Saturday. The benchmark Korea Composite Stock Price Index closed on Friday at 1,944.56, up 1.98 percent, or 37.81 points, from a week ago. Analysts said the local stock market is expected to move on results of the ECB’s rate-setting meeting slated to be held this week amid growing voices for an interest rate cut in the eurozone. However, it wi

April 28, 2013

Woori Investment reprimanded for W1.3 billion embezzlement

　The Financial Supervisory Service ordered Woori Investment & Securities to dismiss two stockbrokers, including a branch manager, engaged in embezzlement, regulatory officials said Sunday.　The regulator said it has uncovered incidences of embezzlement of 1.39 billion won ($1.24 million) committed at two branches in Seoul and Busan of Woori Investment.　The manager of Woori Investment’s Suyeong branch in Busan pocketed 665 million won from five customers’ accounts two years ago, FSS officials said

April 27, 2013

KB, Hana post weak Q1 earnings

KB Financial Group reported weak quarterly earnings beset by weak lending amid the economic slowdown.The financial holdings giant posted a net profit of about 413 billion won in the first quarter of this year, down more than 32 percent from 608.4 billion won a year earlier, the company disclosed Friday.It performed below the market consensus of a 30 percent decrease in profit at around 420 billion won.Its sales reached 6.2 trillion won, down about 10 percent from 6.9 trillion won in the same per

April 26, 2013