Tongyang, Hanwha, Kyobo vie for ING Life

Tongyang Life Insurance said Wednesday that it intended to bid for ING Life Korea, heralding close competition with powerful investors such as Hanwha Life and Kyobo Life.In its regulatory filing on the Korea Exchange, Tongyang Life clarified that it was “considering participating in the coming bidding to take over ING Life Korea, as part of our strategic viewpoint.”The firm’s business policy on the mergers and acquisition market came several weeks after the nation’s No. 2 (Hanwha) and No. 3 (Kyo

March 6, 2013

Seoul shares edge up on Wall Street rally

South Korean stocks rose 0.2 percent on Wednesday, tracking an overnight rally in U.S. markets spurred by heightening anticipation over an economic recovery, analysts said. The local currency gained against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) added4.13 points to finish at 2,020.74. Trading volume was moderate at391.4 million shares worth 4.03 trillion won (US$3.71 billion) with advancers outpacing decliners 414 to 381. "Despite the U.S. rally, the local bours

March 6, 2013

Seoul shares up 0.26 pct in late-morning trade

South Korean stocks traded 0.26 percent higher late Wednesday morning, led by gains in financial firms and shipbuilders, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) added 5.20 points to 2,021.81 as of 11:20 a.m.No. 2 lender KB Financial Group rose 1.8 percent, with Hyundai Heavy Industries, the world's largest shipyard, jumping more than 3 percent. In contrast, auto-related shares trended lower. Kia Motors, a Hyundai Motor affiliate, slid 2 percent, with Hyundai's auto

March 6, 2013

Seoul shares open sharply higher on Wall Street rally

South Korean stocks started off sharply higher Wednesday on an overnight Wall Street rally fueled by heightening anticipations of economic recovery, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) soared15.84 points, or 0.79 percent to 2,032.45 in the first 15 minutes of trading. Shares moved upward across the board, with tech blue-chips and brokerage houses fueling the main index. Top-cap tech giant Samsung Electronics rose 1.23 percent and leading brokerage firm KDB Daew

March 6, 2013

Asset managers face staff cuts on capital erosion

An increasing number of domestic asset management and investment advisory service companies are faced with capital erosion and inevitable restructuring due to weakening profitability, according to the Financial Supervisory Service and the Korea Financial Investment Association.Securities companies have been downsizing their units and staff levels as the global slowdown has weighed down their brokerage and investment banking businesses.Financial regulators are expected to clean up and shut down t

March 5, 2013

KEB sanctioned for irregular rate hikes

The Financial Supervisory Service said Tuesday that it has issued an “institutional warning” against Korea Exchange Bank for raising interest rates on loans to the corporate sector via “irregular practices.”Its irregular rate hikes were mostly conducted when U.S.-based Lone Star Funds was holding the majority stake in the commercial bank as the biggest shareholder.“Glossing over lending terms, KEB raised the rates on loans to small- and mid-sized enterprises. The hikes ranged between 0.2 percent

March 5, 2013

15% of listed firms fail to service debts

Korean listed companies’ ability to pay back their debt has deteriorated due to their worsening profitability amid slowing economic conditions.Based on a 2012 assessment of firms listed on the stock market, Woori Finance Research Institute said Tuesday that 15 percent, or 180 out of 1,200 firms, were found to earn less than the amount they have to pay in debt interest.The 180 firms posted an average interest coverage ratio ― a firm’s operating profit divided by its interest costs ― of less than

March 5, 2013

Seoul shares up 0.54 pct in late-morning trade

South Korean stocks traded 0.54 percent higher late Tuesday morning, led by gains in large-cap tech and utility firms, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) advanced 10.93 points to 2,024.08 as of 11:20 a.m.Chipmaker SK hynix surged 3.5 percent, with state-run electricity provider Korea Electric Power Corp. jumping 2.2 percent. In contrast, steelmakers and oil refiners lapsed into negative territory, with No. 1 player POSCO sliding 0.7 percent and leading oil ref

March 5, 2013

Seoul shares open higher on Fed's stimulus bet

South Korean stocks got off to a strong start Tuesday, cheered by remarks from a U.S. Federal Reserve official supporting the bond-buying program amid speculations the Fed may put an end to it, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) gained12.22 points, or 0.61 percent to 2,025.37 in the first 15 minutes of trading. Most shares trended upward, with large-cap exporters fueling the main index. Market behemoth Samsung Electronics rose 1.2 percent, with No. 1 carmaker

March 5, 2013

NongHyup Financial seeks over W1tr in profits for 2013

NongHyup Financial Group Inc. aims to post more than 1 trillion won ($916.5 million) in profits this year, but a potential rise in loan-loss reserves and bad debt may squeeze the group’s bottom line, its chief said Monday.“The group plans to spend this year beefing up its competitiveness in a bid to prepare for a ‘take-off’ in 2014,” Shin Dong-kyu, the president of the group, told a press conference marking the one-year anniversary of the group’s establishment.NongHyup Financial Group was launch

March 4, 2013

Creditors OK debt rescheduling for Ssangyong E&C

Creditors of Ssangyong Engineering & Construction Co. agreed Monday to initiate a debt-restructuring program for the troubled builder to rescue the company from a cash crunch, bank officials said. Creditor banks of Ssangyong E&C, including Woori Bank and Shinhan Bank, put the matter to a vote at a meeting, with those holding credit worth 95 percent of the total debt agreeing to the plan, according to the officials. According to local law, a corporate workout program must be approved by creditor

March 4, 2013

Seoul shares slip 0.66 pct on institutional profit-taking

South Korean stocks closed 0.66 percent lower Monday, led by institutional profit-taking, while investors remained relatively calm toward the U.S. spending cuts, analysts said. The local currency fell sharply against the U.S.dollar. The benchmark Korea Composite Stock Price Index (KOSPI) retreated 13.34 points to finish at 2,028.55. Trading volume was moderate at 352.4 million shares worth 4.28 trillion won (US$3.95 billion) with losers outstripping gainers 482 to 310. "Investors shrugged off th

March 4, 2013

AIA Life faces sanction for overcharging consumers

Financial regulators have decided to slap fines of up to 260 million won ($240,000) on the Korean unit of American International Assurance for business irregularities, industry sources said Monday.The sources said the firm’s irregular business practices included the “overcharge of insurance premiums” worth about 2.8 billion won for more than 1 million cases.AIA Life, or AIA Group Limited Korea and formerly AIG Life, had stipulated that it would offer a 2 percent discount for payment of premiums

March 4, 2013

Seoul shares down 0.24 pct in late-morning trade

South Korean stocks traded 0.24 percent lower late Monday morning, led by losses in steelmakers and chemical companies, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) fell 4.92 points to 2,021.57 as of 11:20 a.m. Leading steelmaker POSCO sank nearly 3 percent, with smaller player Hyundai Steel also dropping 2.4 percent. Chemical issues trended downward, with LG Chem dipping more than 2 percent. In contrast, autos gathered ground. Hyundai Motor was up 1.2 percent and Ssang

March 4, 2013

Seoul shares turn lower after strong start

South Korean stocks turned lower after a strong start, as investors remained concerned over the automatic spending cuts in the United States, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) slipped1.47 points, or 0.07 percent to trade at 2,025.02 in the first 15 minutes of trading. Steelmakers and shipping lines lost ground, with No. 1 player POSCO falling 1.7 percent and logistics company Hyundai Glovis retreating 1.6 percent. Top-cap Samsung Electronics, however, gained

March 4, 2013

Kyobo, Dongbu least charitable insurance firms

Kyobo Life Insurance and Dongbu Insurance were found to be least charitable firms in the insurance industry, despite reaping high profits in the recent fiscal quarter, according to regulatory filings and media reports.Kyobo Life, which is among the top three domestic life insurers, donated or engaged in social contribution worth 3.8 billion won ($3.5 million), or 0.86 percent of its third-quarter net profit of 438 billion won last year.Dongbu, which posted a net profit of some 330 billion won in

March 3, 2013

3 insurance firms probed for dubious accounting

Three life insurance firms are suspected of engaging in irregular accounting practices involving promotion expenses for their “bancassurance” business, industry sources said Sunday.The three firms are Hanwha Life (formerly Korea Life), Tongyang Life and Mirae Asset Life, according to sources and the Financial Supervisory Service.An FSS official said that the regulator recently issued sanctions, such as “reprimands” and “cautions,” against 12 executives and employees of the three insurance firms

March 3, 2013

Banks' home loans with fixed rates rise

   The portion of South Korean banks' household loans with fixed rates surpassed the 20 percent level in January on the regulator's push for a soft landing of household debt problems, data showed Sunday.   Local banks' household loans with fixed rates accounted for 21.8 percent out of outstanding home lending in January, up from 9.5 percent a year earlier, according to data by the central bank.   It marked the first time that the weight of such lending surpassed the 20 percent level, it showed. 

March 3, 2013