The Korea Herald

Seoul shares open lower on Q1 earnings woes

South Korean stocks opened lower Friday, as investors' sentiment was dented by the rising concerns over the listed firms' first-quarter earnings, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) fell 3.61 points, or 0.18 percent, to 1,947.99 in the first 15 minutes of trading.Carmakers traded bearish, with No. 1 industry player Hyundai Motor falling 0.77 percent and its smaller affiliate Kia Motors losing 0.76 percent. Top auto parts maker Hyundai Mobis shed 1.12 percent.Tec

April 26, 2013

Authorities at odds over growth

The Bank of Korea and the Ministry of Strategy and Finance seem to be at odds over the country’s growth prospects, raising the possibility of another round of debate over the key base rate.The central bank announced Thursday better-than-expected gross domestic product growth of 0.9 percent in the first quarter owing to improved exports and revived facility investment. But the government still says it is time for monetary policy to kick in and work alongside fiscal policy so the economy can break

April 25, 2013

[Graphic News] Seoul posts poor growth in equities

South Korea lagged far behind major countries in growth of stock prices this year due mainly to lackluster private consumption and a slowdown in export performance upon Japan’s weakening yen. According to an adjusted index unveiled by the U.S.-based Morgan Stanley Capital International, the country recorded minus 0.5 percent growth on-quarter of composite equity prices during the first quarter.The MSCI Index for the shares on the Korean bourse dropped from 575.311 at the end of 2012 to 572.151 a

April 25, 2013

[Graphic News] Seoul posts poor growth in equities

Samsung Electro-Mechanics Q1 net soars 39 percent

Samsung Electro-Mechanics Co., a South Korean industrial parts maker, said Thursday its first-quarter net profit jumped 39 percent from a year earlier on the back of growing demand for mobile components.Net profit reached 97.8 billion won ($87.5 million) in the January-March period, compared with a profit of 70.4 billion won in the previous year, the company said in a regulatory filing.Revenue climbed 17 percent on-year to 2.04 trillion won in the past quarter, and operating profit surged 20 per

April 25, 2013

NTS tries to allay probe concerns of entrepreneurs

The nation’s top tax official has sought to ease concerns among businesspeople about the government’s move to strengthen its tax monitoring of firms and vowed to support them with proper tax management.Speaking at a meeting with a group of enterprises organized by the Korea Chamber of Commerce and Industry on Thursday, National Tax Service Commissioner Kim Duk-joong also urged business circles to join its push for “clean taxation” polices. The meeting was organized to appease businesspeople who

April 25, 2013

NTS tries to allay probe concerns of entrepreneurs

FSC to scrap joint guarantee on loans

Regulators are poised to impose a ban later this year on joint guarantees on loans extended by secondary financial firms, following the earlier abolishment of the lending practice among commercial banks.Over the past several decades, lenders have demanded that some individuals or smaller businesses submit third-party debt guarantees when applying for loans. Such guarantees have frequently triggered a chain reaction of bankruptcy for guarantors, such as families, relatives and friends, when borro

April 25, 2013

Seoul shares up 0.84 pct on U.S. market hope

South Korean stocks closed 0.84 percent higher Thursday on the back of a brighter outlook over Wall Street as U.S. firms' first-quarter earnings met market expectations, analysts said. The local currency gained against theU.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) added 16.29 points to finish at 1951.60. Trading volume was moderate at 329.4 million shares worth 4.5 trillion won (US$4 billion) with gainers outnumbering decliners 438 to 373. "Investors scooped up und

April 25, 2013

Seoul shares up 0.39 pct in late-morning trade

South Korean stocks traded 0.39 percent higher late Thursday morning, led by gains in autos and builders, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) movedup 7.63 points to 1,942.94 as of 11:20 a.m. Carmakers led the market gain, with leading player Hyundai Motor rising 1.89 percent and its smaller affiliate Kia Motors adding 1.79 percent. Top auto parts maker Hyundai Mobis gained 1.74 percent. Construction firms traded higher, with Hyundai Engineering & Construc

April 25, 2013

Seoul shares open higher on techs, retailers

South Korean stocks opened higher on Thursday, on the back of gains in techs and retailers, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) gained 3.77 points, or 0.19 percent, to 1,939.08 in the first 15 minutes of trading.Tech shares gathered ground, with top chipmaker SK hynix rising 2.23 percent and a local handset maker LG Electronics adding 1.33 percent. Top flat panel manufacturer LG Display gained 0.5 percent.Retailers also traded higher, with discount store chain E

April 25, 2013

Daehan Real Estate Trust sanctioned for accounting fraud

The Securities and Futures Commission said Wednesday that it reported Daehan Real Estate Trust Co. to the prosecution on charges of fabricating its financial statements.Daehan Real Estate Trust -- a financial company fully invested by a quasi-governmental agency under the wing of the Ministry of National Defense -- engaged in irregular accounting practice from 2008 to 2010, according to the SFC.As the main malfeasance, the company allegedly rigged its statements from transactions for a land proj

April 24, 2013

KOSDAQ hits near 5-year high

South Korea’s secondary stock market on Wednesday rallied to an almost five-year high, with its total market capitalization surging to an all-time high, fueled by expectations for upward momentum following the government’s policy pledge to support smaller companies. The tech-laden KOSDAQ soared 10 points, or 1.7 percent, to end at 563.81, the highest since July 1, 2008, according to the data by the Korea Exchange. The Wednesday rally pushed up its total market cap to a record 126.4 trillion won

April 24, 2013

Fair Trade Commission to take class action suits against cartels

The Fair Trade Commission vowed to take stern disciplinary measures against conglomerates for irregular business practices during its report to President Park Geun-hye on Wednesday.The antitrust regulator, which has already pledged to crack down on unfair intragroup trading among conglomerate-based affiliates, said it would also introduce the system of class action lawsuits by pushing for a Competition Law revision in June.“Enterprises including financial firms engaging in cartel practices will

April 24, 2013

Seoul to take class-action suits against cartels

The Fair Trade Commission unveiled its policy to take stern disciplinary measures against conglomerates for their irregular business practices during its report to President Park Geun-hye on Wednesday.The antitrust regulator, which has already pledged to crack down on unfair intragroup trading among conglomerate-based affiliates, said it would also introduce the system of class action lawsuits by pushing for a law revision in June.“Enterprises including financial firms engaging in cartel practic

April 24, 2013

Seoul shares up 0.87 pct on global recovery hope

South Korean stocks closed 0.87 percent higher Wednesday due to the improved economic outlook for the United States and the eurozone, analysts said. The local currency gained against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) added 16.68 points to finish at 1,935.31. Trading volume was moderate at 334.7 million shares worth 4.3 trillion won (US$3.9 billion) with gainers outnumbering decliners 626 to 195. "The local stock market gathered ground due to the overnigh

April 24, 2013

Apple’s profit drops for first time in nearly a decade

Tech titan Apple suffered its first fall in profit in the second quarter in nearly a decade despite an increase in revenue.According to Apple’s financial report, the company’s net profit dropped to $9.5 billion in the second quarter of 2013 ending on March 30, an 18 percent decline from $11.6 billion in the same quarter last year. The company’s revenue recorded $43.6 billion, an 11 percent rise from $39.19 billion in the quarter in 2012.The sales for iPhone grew from 35.1 million units to 37.4

April 24, 2013

Apple’s profit drops for first time in nearly a decade

Seoul shares up 0.49 pct in late-morning trade

South Korean stocks traded 0.49 percent higher late Wednesday morning, led by gains in builders and logistics firms, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) moved up 9.38 points to 1,928.01 as of 11:20 a.m. Construction firms traded higher, with Hyundai Engineering & Construction rising 1.21 percent and Daewoo Engineering & Construction advancing 1.03 percent. GS Engineering & Construction added 2.39 percent. Logistics firms also gathered ground, with Hyundai

April 24, 2013

Seoul shares open higher on U.S. gains

South Korean stocks opened higher on Wednesday, tracking overnight gains on Wall Street following expectations that U.S. firms fared well in the first quarter, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) gained 10.2 points, or 0.53 percent, to 1928.83 in the first 15 minutes of trading.Shares gathered ground across the board, with market behemoth Samsung Electronics rising 0.27 percent and top chipmaker SK hynix adding 2.08 percent. No. 1 carmaker Hyundai Motor moved up

April 24, 2013

Seoul denies G20’s backing of cheap yen

The Finance Ministry on Tuesday dismissed some local market analysts’ view that the Group of 20 countries recently reached a consensus not to tackle the Japanese yen’s weak position.“The G20 communique (drawn up by finance ministers in Washington, D.C., over the weekend) does not involve any common consent that the members would tolerate the cheap yen,” Finance Ministry’s international finance policy director Choi Hee-nam told a news briefing.Concerning arguments that the G20 members did not cri

April 23, 2013

KEB denies claim of hacker’s attack

Korea Exchange Bank, the nation’s fifth-largest lender, on Tuesday denied allegations that international hackers broke into its online security system to expose the personal details of bank customers. KEB made the statement after the list of what hackers claimed to be KEB customers’ confidential data was disclosed on their website, pastebin.com. “Our investigation results point to the fact that not a single piece of personal information or email address that was exposed by the hackers matches ou

April 23, 2013

Shares fall on weak yen

South Korean stocks closed 0.4 percent lower Tuesday as foreigners became net sellers of local shares amid the weak yen, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index shed 7.68 points to finish at 1,918.63. Trading volume was low at 253 million shares worth 3.4 trillion won ($3.08 billion) with gainers outnumbering decliners 478 to 316.“The local stock market lost steam as the Japanese currency is anticipated to trade lower against

April 23, 2013