Seoul moves to avert sovereign rating cut

A government-led task force plans to seek close coordination with global rating agencies in a bid to prevent Korea’s credit status from being downgraded in the wake of North Korea’s nuclear test.The task force is drawing up contingency plans to effectively weather the North’s provocation and held an emergency meeting early on Wednesday.The task force is composed of senior officials from the Finance Ministry, the Financial Services Commission, the Financial Supervisory Service and the Bank of Kor

Feb. 13, 2013

Currency, monetary easing to top G20 meeting’s agenda

Currency devaluation and exit strategies for monetary easing are expected to top the agenda among financial policymakers at the upcoming G20 meeting of finance ministers and central bankers, Korean officials said Wednesday. The meeting is scheduled for Feb. 15-16 in Moscow.Korea’s Finance Minister Bahk Jae-wan and Bank of Korea Governor Kim Choong-soo will be attending the two-day meeting to share their views, especially on the global foreign exchange market, which has been prone to increased vo

Feb. 13, 2013

Seoul shares jump 1.56 pct on eased currency woes

South Korean stocks closed 1.56 percent higher on Wednesday as concern over a global currency row eased following a warning from major advanced economies against Japan's aggressive monetary easing, analysts said. The Korean won gathered ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) soared 30.28 points to finish at a three-week high of 1,976.07. Trading volume was moderate at 324.9 million shares worth 3.62 trillion won (US$3.33 billion) with gainers far o

Feb. 13, 2013

Seoul shares up 1.14 pct in late-morning trade

South Korean stocks traded 1.14 percent higher late Wednesday morning, fueled by gains in brokerage firms and steelmakers, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) climbed 22.11 points to 1,967.90 as of 11:20 a.m.Major local brokerage firm Mirae Asset Securities spiked 4.5 percent and steelmaker Hyundai Steel soared nearly 3 percent. In contrast, telecom shares trended downward, with top mobile carrier SK Telecom falling 0.6 percent. The local currency was changing h

Feb. 13, 2013

Seoul shares open higher on Wall Street rally

South Korean stocks began higher Wednesday, tracking overnight gains on Wall Street, as investors were buoyed by encouraging remarks by U.S. President Barack Obama before his State of the Union address, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) gained 5.58 points, or 0.29 percent, to 1,951.37 in the first 15 minutes of trading. Most shares trended upwards, with brokerage houses and insurance companies driving up the index. No. 2 brokerage firm KDB Daewoo Securities r

Feb. 13, 2013

Ex-Shinhan chief under prosecution probe again

Prosecutors have again placed former Shinhan Financial Group chairman Ra Eung-chan under investigation for his alleged embezzlement into a slush fund.The prosecution recently launched an investigation into the allegation that a slush fund totaling 300 million won ($278,000) ― fostered by Ra ― was offered to then-lawmaker Lee Sang-deuk, brother of President Lee Myung-bak, in 2008.The allegation was made by civic group Solidarity for Economic Reform that Ra had ordered Shinhan Bank’s then-CEO Lee

Feb. 12, 2013

Seoul shares slip 0.26 pct on program selloff

South Korean stocks closed 0.26 percent lower Tuesday, driven by foreign-led program selling, with North Korea's nuclear test having little effect on the market, analysts said. The local currency rose against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) inched down 5.11 points to finish at 1,945.79. Trading volume was light at303.5 million shares worth 2.81 trillion won (US$2.56 billion) with losers outstripping gainers 465 to 311. “Foreigners went on a net selloff in

Feb. 12, 2013

Seoul shares edge down in late-morning trade

South Korean stocks traded marginally lower late Tuesday morning, led by losses in utilities and insurance companies, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) inched down 0.11 points, or 0.01 percent to 1,950.79 as of 11:20 a.m.State-run electricity provider Korea Electric Power Corp. slid nearly 2 percent, with No. 1 life insurer Samsung Life Insurance falling 1.2 percent. In contrast, tech and construction firms gathered ground, with flat panel giant LG Display ga

Feb. 12, 2013

Seoul shares open tad higher on large-cap gains

South Korean stocks opened a tad higher on Tuesday, driven by gains in large-cap firms, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) added 2.36 points, or 0.12 percent, to 1,953.26 in the first 15 minutes of trading. Top-cap Samsung Electronics climbed nearly 1 percent, with second-largest listed company Hyundai Motor advancing 0.8 percent and chipmaker SK hynix rising 1.2 percent.  The local currency was trading at 1,096.20 won against the U.S. dollar as of 9:15 a.m.,

Feb. 12, 2013

Korea braces for fast yen depreciation

Korean exporters may need to brace for rough sailing in overseas markets earlier than expected as Japan prepares to accelerate the depreciation of its currency to jumpstart its economy, analysts said.Foreign investment banks and domestic securities companies have drawn their outlooks for the Japanese yen to further weaken faster than their initial estimation, forecasting its value to drop over 100 yen to the dollar as early as the second half of this year.The general consensus among investment b

Feb. 11, 2013

Korean shares may rise if yen rebounds

South Korean stocks may rebound this week if the Japanese yen’s weakening abates, analysts said.The benchmark Korea Composite Stock Price Index closed at 1,950.9 on Friday, down 0.35 percent from a week earlier.Despite positive economic data from the United States, the KOSPI got off to a weak start last week as the local currency continued to rise against the U.S. dollar amid a weakening yen.Eurozone concerns as well as North Korea’s nuclear threats also dented investor sentiment, further weighi

Feb. 11, 2013

Massive hacking scheme to steal accredited certificates uncovered

South Korea’s financial authority said Monday it has uncovered a large-scale hacking scheme that resulted in the theft of personal financial transaction information of hundreds of bank clients.According to the Korea Financial Telecommunications and Clearings Institute, a group of hackers allegedly stole a total of 461 authenticated certificates, in an apparent bid to withdraw cash from victims’ bank accounts.The KFTC, which settles financial transactions among individuals, said it reported the c

Feb. 11, 2013

Citibank Korea faces sanction

The nation’s financial regulator is poised to reprimand Citibank Korea for having been negligent in consumer protection.Officials at the Financial Services Commission are fine-tuning the draft on a sanction against the local unit of U.S.-based Citigroup, which was created by the Financial Supervisory Service.The FSS, an executive arm of the FSC, has already decided to issue a “cautionary warning” on Citibank Korea CEO Ha Yung-ku and an “institutional warning” on the commercial lender.Consumers s

Feb. 11, 2013

Goldman Sachs cuts growth outlook for Korea

The South Korean economy is likely to expand at a slower pace than expected this year due to the negative impact of the Japanese currency's depreciation on its overseas shipments, Goldman Sachs said Friday.In its latest forecast, the global investment bank said Asia's fourth-largest economy will likely grow 3.1 percent this year, down from its earlier estimate of 3.4 percent made in December.Kwon Goo-hoon, the managing director and co-head of research at Goldman Sachs Asia, attributed the lower

Feb. 8, 2013

BOK offers net 4.35 tln won in liquidity ahead of holiday

South Korea's central bank said Friday it provided a net 4.35 trillion won (US$3.98 billion) in liquidity into the financial system to help money smoothly flow ahead of the Lunar New Year holiday.The Bank of Korea (BOK) said that its money injection for the 10 business days leading up to the holiday was slightly down from a net 4.39 trillion won provided the previous year.The BOK said the reduced supply mainly came as this year's Lunar New Year holiday is one day shorter than last year.The Lunar

Feb. 8, 2013

Korea tourism revenue hits record high

Korea posted record tourism revenue last year, thanks to the popularity of hallyu, or the Korean Wave, and aggressive marketing, according to the Bank of Korea.The country’s inbound tourism brought in more than $14.2 billion in 2012, up 13.6 percent from $12.5 billion a year earlier.This means that the tourism sector was earning more than $1 billion monthly for the first time.The record high earning has contributed to decreasing the travel account deficit to some $5.9 billion last year, from $7.

Feb. 7, 2013