Low investment, consumption, employment weigh on economy

Low investment and consumption are further weighing on the Korean economy, said the Korea Development Institute, a state-run think tank, in a report.Signs show that industrial production has been improving and exports maintaining resilience since last month.However, slow investment, especially in the construction sector, which is leading to a stagnant real estate market, is projecting a bleak outlook for the economy.Although the consumer sentiment index is above 100, showing more optimism than p

Feb. 7, 2013

NCsoft to unveil its latest games to Chinese users in H2

HONG KONG (Yonhap News) ― NCsoft Corp., a leading South Korean online game developer, will unveil its latest games to Chinese consumers in the second half of this year in a move to boost its sales in China, officials said Thursday. NCsoft plans to launch two online games ― “Blade & Soul” and “Guild Wars 2” ― in the world’s most populous country and has designated Tencent Holdings Ltd. as the sole local distributor, company officials said. Last year, the Seoul-based company signed an agreement wi

Feb. 7, 2013

Korea’s job growth expected to plummet this year

South Korea’s job growth is forecast to decrease sharply this year compared with a year earlier as the persistent economic slowdown will likely sap self-employed businesses and new hiring by smaller firms, data showed Thursday.A total of 300,000 new jobs is estimated to be created this year, compared with 437,000 the previous year, according to the data by the Bank of Korea and Statistics Korea. That puts the on-year growth rate of Korea’s fresh employment at 1.2 percent this year, down from 1.8

Feb. 7, 2013

POSCO begins work on auto steel plants in Mexico

POSCO, South Korea’s leading steelmaker, said Thursday that it has started building two auto steel sheet-processing centers in Mexico.The POSCO-Mexico Aguascalientes Processing Center, set to be completed by September this year, will provide processed steel sheets to local auto parts suppliers.POSCO will also complete the construction of a similar steel sheet-processing center, the POSCO-Mexico Puebla Processing Center, by October this year, the South Korean steelmaker said.POSCO did not elabora

Feb. 7, 2013

Feud over fees grows between card firms and retailers

Credit card firms threatened to suspend payment services for customers “based on interest-free installment” later this month yet again, in response to retailers’ refusal to share “marketing event expenses.”Samsung, Hyundai, Hana SK and Lotte will halt the interest-free payment services starting on Feb. 17 with the other two ― BC and KB Kookmin ― following suit at the end of this month.While the credit card industry called on retailers to account for at least 50 percent of interest costs offered

Feb. 7, 2013

NHN net up 49% in fourth quarter

NHN Corp., South Korea’s top Internet portal operator, said Thursday its fourth-quarter earnings jumped49.1 percent from a year earlier, buoyed by increased profit from search advertising and new services such as the mobile messenger LINE.Net profit reached 169 billion won ($155 million) in the October-December period, compared with a profit of 113.3 billion won the previous year, NHN said in a regulatory filing.Revenue rose 13.8 percent on-year to 652 billion won last year, and operating profit

Feb. 7, 2013

Seoul shares slip 0.23 pct on currency woes

South Korean stocks closed 0.23 percent lower on Thursday as the prolonged currency volatility continued to weigh down the market, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) edged down 4.42 points to 1,931.77. Trading volume was moderate at 407.2 million shares worth 3.5 trillion won (US$3.22 billion) with losers outpacing gainers 410 to 383."Due to the prolonged appreciation of the local currency against the Japanese ye

Feb. 7, 2013

Seoul shares remain almost flat in late-morning trade

South Korean stocks traded almost flat late Thursday morning as the currency's volatility continued to weigh down on investor sentiment, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) inched up 0.06 percent, or 1.2 points, to 1,937.39 as of 11:20 a.m.Blue-chip exporters edged up, with market bellwether Samsung Electronics increasing 0.14 percent and top chipmaker SK hynix adding 1.43 percent. No. 1 carmaker Hyundai Motor moved up 0.25 percent.Retailers lost ground, with Lo

Feb. 7, 2013

Seoul shares open higher on exporter gains

South Korean stocks began higher Thursday on the back of gains in blue chip exporters, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) rose 0.26 percent, or 5.07 points, to 1941.26 in the first 15 minutes of trading.Blue chip exporters led the overall gain, with market behemoth Samsung Electronicsclimbing 0.28 percent and No. 1 carmaker Hyundai Motor adding 0.75 percent. Top chipmaker SK hynix also advanced 1.02 percent.Logistics shares also gathered ground, with Hyundai Gl

Feb. 7, 2013

Banks’ earnings drop on low interest rates

Commercial banks’ profitability and earnings fell to their lowest since the 2009 global financial crisis due mainly to low interest rates.According to the Financial Supervisory Service, Korean banks saw their three major indices for profitability mark a three-year low in 2012.“The banking industry reported a worse performance in three indices ― return on assets (0.49 percent), return on equity (6.41 percent) and net interest margin (2.1 percent),” the FSS said in a statement.The weak profitabili

Feb. 6, 2013

Seoul shares close almost flat on currency woes

South Korean stocks ended almost flat on Wednesday as the prolonged currency volatility and North Korea’s threat of a nuclear test continued to weigh down the market, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index shed 0.1 percent, or 1.99 points, to 1,936.19. Trading volume was moderate at 342.9 million shares worth 3.5 trillion won ($3.3 billion) with gainers outpacing losers 461 to 338.“Despite the gains on Wall Street overnight,

Feb. 6, 2013

Seoul shares close almost flat on currency woes

South Korean stocks ended almost flat on Wednesday as the prolonged currency volatility and North Korea's threat for a nuclear test continued to weigh down the market, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) shed 0.1 percent, or 1.99 points, to 1,936.19. Trading volume was moderate at 342.9 million shares worth 3.5 trillion won (US$3.3 billion) with gainers outpacing losers 461 to 338."Despite the gains on Wall Street

Feb. 6, 2013

Seoul shares edge up 0.1 pct in late-morning trade

South Korean stocks traded 0.1 percent higher late Wednesday morning, buoyed by gains in mobile carriers and technology firms, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) inched up 1.94 points to 1,940.12 as of 11:20 a.m.Mobile carriers led the market gain, with leading SK Telecom increasing 3.44 percent and No. 2 player KT moving up 2.11 percent.No. 3 player LG Uplus climbed 2.87 percent.Tech blue chips also continued to trade higher, with market behemoth Samsung Elect

Feb. 6, 2013

Seoul shares open higher on U.S. gains

South Korean stocks began higher Wednesday as investor sentiment got a boost from overnight gains on Wall Street, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) rose 0.22 percent, or 4.28 points, to 1942.46 in the first 15 minutes of trading.Tech blue chips drove up the shares, with top chipmaker SK hynix increasing 0.84 percent and handset maker LG Electronics climbing 0.58 percent. Flat panel giant LG Display moved up 1.63 percent.Construction firms also traded higher, w

Feb. 6, 2013

FSS looks into big firms-suppliers trading

The nation’s financial regulator has bolstered its monitoring on conglomerates’ transactions with subcontractors amid the Korean won’s strong position against the Japanese yen.The policy of the Financial Supervisory Service reflects worries over the possibility that big firms could hand over their losses from declining exports amid weaker price competitiveness to subcontractors.In the past, conglomerates changed their settlement currency from the won to the dollar in paying for subcontractors’ p

Feb. 5, 2013

Shares fall on nuke test woes

South Korean stocks ended 0.77 percent lower on Tuesday as investor sentiment was dented by rising concern over North Korea’s nuclear test, analysts said Tuesday. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index shed 15.03 points to 1,938.18. Trading volume was moderate at 361.3 million shares worth 3.7 trillion won ($3.4 billion), with decliners far outpacing gainers 602 to 215. )“Rising geopolitical risks stemming from North Korea’s pledge to carr

Feb. 5, 2013

Seoul shares fall 0.77 pct on nuke test woes

South Korean stocks ended 0.77 percent lower on Tuesday as investor sentiment was dented by rising concern over North Korea's nuclear test, analysts said Tuesday. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) shed 15.03 points to 1,938.18. Trading volume was moderate at 361.3 million shares worth 3.7 trillion won (US$3.4 billion), with decliners far outpacing gainers 602 to 215."Rising geopolitical risks stemming from North Korea's pledge

Feb. 5, 2013

Seoul shares down 0.81 pct in late-morning trade

South Korean stocks traded 0.81 percent lower late Tuesday morning amid heightened political tension with North Korea, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) shed 15.73 points to 1,937.48 as of 11:20 a.m.Tech blue chips led the decline, with market behemoth Samsung Electronics falling 0.63 percent, and top chipmaker SK hynix losing 2.67 percent.Brokerage houses were also trading in negative territory, with Samsung Securities decreasing 2.66 percent and KDB Daewoo S

Feb. 5, 2013