Japan’s weak yen drive ignites currency war, deals blow to Korea

When Japan set its inflation target and declared a change in its monetary regime for a weak yen, global investors and economists took this as a sign that currency wars would soon be launched to aid the economy, especially the export sector.Japan’s weak yen policy, aimed at pulling its economy out of deflation and recession, became one of the hottest topics at the recently concluded World Economic Forum in Davos, Switzerland.Japan’s Finance Minister Taro Aso told reporters that its central bank w

Jan. 28, 2013

Samsung Card posts massive loss in Q4

Samsung Card Co. said Monday it posted a net loss of 2.6 billion won ($2.4 million) in the fourth quarter of 2012 due to a decrease in commission income.From October through December, the nation’s No. 2 credit card firm made sales of about 7.95 billion won, down about 7.4 percent from the same period in 2011.The firm’s operating loss amounts to about 3.1 billion won, a sharp contrast to the 73 billion won operating profit posted a year earlier. A decrease in commission rates caused the loss, Sam

Jan. 28, 2013

Hyundai, Kia rank 4th in British car market

South Korea’s leading carmakers Hyundai Motor Co. and Kia Motors Corp. ranked fourth in the British automobile market last year on the back of brisk sales, industry data showed Monday.According to the data, their combined sales soared 20.9 percent on-year to 140,914 vehicles in 2011 from 116,515 units sold a year earlier.The market share of Hyundai and Kia, the flagship companies of Hyundai Motor Group, climbed one notch to fourth place with 6.89 percent, beating Germany’s BMW AG with 127,530 un

Jan. 28, 2013

New government to revitalize sale of Woori Financial

The next chief financial regulator is expected to push forward privatization of Woori Financial Group amid lawmakers’ movement to retrieve taxpayers’ money, which was injected into the group.As Kim Seok-dong, chairman of the Financial Services Commission, recently expressed his intention to resign, the incoming Park Geun-hye administration is poised to appoint his successor as the chief regulator.Kim had maintained his position that Woori Financial should be sold through a “block deal,” under wh

Jan. 28, 2013

Seoul shares fall 0.36 pct on exporter losses

South Korean stocks closed 0.36 percent lower on Monday as key exporters lost ground amid concerns over a strengthening won and a lack of strong upward momentum, analysts said. The local currency tumbled against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) slipped 6.98 points to 1,939.71. Trading volume was light at 336.2 million shares worth 4.33 trillion won (US$3.96 billion), with decliners outnumbering gainers 433 to 378."Unfavorable foreign exchange conditions, we

Jan. 28, 2013

Seoul shares down 0.46 pct in late-morning trade

South Korean stocks traded 0.46 percent lower late Monday morning due to losses in blue-chip exporters, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) fell 9.03 points to 1937.66 as of 11:20 a.m.Big-cap tech names led the decline, with market bellwether Samsung Electronics plunging 2.75 percent and the leading electronic components maker Samsung Electro-Mechanics falling 3.11 percent. Top steelmaker POSCO also shed 3.41 percent.Carmakers also traded in negative territory,

Jan. 28, 2013

Seoul shares open lower on earnings woes

South Korean stocks got off to a weak start on Monday as investors shed holdings amid lingering concerns over fourth-quarter corporate earnings, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) fell 10.71 points, or 0.55 percent, to 1,935.98 in the first 15 minutes of trading.Key exporters lost ground. Market bellwether Samsung Electronics, which announced its quarterly results on Friday, slumped 2.19 percent and top steelmaker POSCO fell 1.09 percent.The local currency was

Jan. 28, 2013

Financial holding firms’ profits slide

Korea’s four major financial holding companies are about to post their worst annual earnings for 2012, with their stock prices likely to take a hit going forward.Four holding companies ― Shinhan, KB, Woori and Hana ― are expected to post a combined net profit of 7.87 trillion won in 2012, down almost 1 trillion won, from a year earlier, according to FNGuide, an online securities information provider.This fall could reach 2 trillion won in total should Hana Financial leave out negative goodwill w

Jan. 27, 2013

Korean banks begin yuan lending for trade settlements

The Bank of Korea said Sunday that it has allowed 12 local commercial banks, beginning with Korea Exchange Bank, to extend renminbi-denominated loans to Korean traders for the first time.This comes as Korea’s central bank and the People’s Bank of China agreed to let their companies settle trade bills with their respective currencies using part of the two sides’ currency swap deal worth 64 trillion won or 360 billion yuan.Korean importers would be able to borrow from their local lenders that will

Jan. 27, 2013

Financial groups’ profit likely to fall

Four major financial groups are estimated to see their collective earnings in 2012 drop by 25 percent, or about 2.6 trillion won ($2.4 billion), from a year earlier, according to researchers’ forecast data.FnGuide, an online financial data provider, predicted Friday that the four groups ― Woori, KB, Hana and Shinhan ― will post 7.8 trillion won in their combined net profit, down from 10.4 trillion won in 2011.All four groups are scheduled to make public their 2012 earnings on Feb. 7.Shinhan Fina

Jan. 25, 2013

Shares fall on foreign selling

South Korean stocks fell 0.91 percent Friday as foreign investors dumped large caps amid poorer corporate earnings and a gloomy outlook for this year, analysts said. The local currency fell sharply against the U.S. dollar.The benchmark Korea Composite Stock Price Index lost 17.79 points to finish at 1,946.69. Trading volume was light at 395.9 million shares worth 4.97 trillion won ($4.63 billion) with losers outnumbering winners 497 to 308.“The poorer-than-expected fourth-quarter earnings of aut

Jan. 25, 2013

FSS levies fines on 3 foreign brokerages

The Financial Supervisory Service imposed on three foreign-owned brokerage firms ― Deutsche Securities Korea, Credit Suisse’s Korean operation and CLSA Korea ― fines worth 37.5 million won ($35,000) each for breaching real-name account rules. They were also issued a caution.A foreign securities firm has expressed unease about the nation’s financial regulator’s recent sanction on them for leaking customers’ information abroad.An executive from one of the three firms, who declined to be named, sai

Jan. 25, 2013

Seoul shares fall 0.91 pct on foreign selling

South Korean stocks fell 0.91 percent Friday as foreign investors dumped large caps amid poorer corporate earnings and a gloomy outlook for this year, analysts said. The local currency fell sharply against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) lost 17.79 points to finish at 1,946.69. Trading volume was light at 395.9 million shares worth 4.97 trillion won (US$4.63 billion) with losers outnumbering winners 497 to 308."The poorer-than-expected fourth-quarter earni

Jan. 25, 2013

Seoul shares down 1.26 pct in late-morning trade

South Korean stocks traded 1.26 percent lower late Friday morning due to losses in large-cap exporters, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) fell 24.77 points to 1,939.71 as of 11:20 a.m.Big-cap tech names led the decline, with market bellwether Samsung Electronics plunging 1.86 percent and its smaller rival LG Electronic moving down 1.63 percent. Flat panel giant LG Display lost 2.98 percent.Carmakers also traded in negative territory, with No. 1 industry player

Jan. 25, 2013

Seoul shares open lower on exporters' losses

South Korean stocks started lower Friday due to exporters' losses caused by the Japanese yen's sharp drop against the U.S. dollar, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) fell 4.56 points, or 0.23 percent, to 1,959.92 in the first 15 minutes of trading.Hyundai Motor tumbled 3.61 percent after its announcement of last year's stellar performances on Thursday. Samsung Electronics also dipped 0.07 percent despite its record-high fourth-quarter earnings.The local currenc

Jan. 25, 2013

Brokerages’ overseas losses narrow sharply

South Korean securities firms saw their losses at their foreign operations narrow sharply in the first half of fiscal 2012 from a year earlier as they ramped up cost-cutting efforts to weather the persisting global downturn, the financial regulator said Thursday. The combined net loss of 92 foreign units owned by 19 local brokerage houses reached $2.8 million in the March-September period, compared with a $40.9 million net loss the previous year, according to the Financial Supervisory Service. T

Jan. 24, 2013

Shares dip on currency woes

South Korean stocks inched down 0.8 percent Thursday as the currency volatility in the foreign exchange market continued to weigh down on investor sentiment, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index lost 15.93 points to finish at 1,964.48. Trading volume was high at 551.2 million shares worth 4.46 trillion won ($4.18 billion) with losers far outnumbering winners 518 to 289.“Shares of local carmakers and technology firms traded

Jan. 24, 2013

Shinhan among top global sustainable firms

Shinhan Financial Group ranked among this year’s top 100 global sustainable firms by Corporate Knights, a Toronto-based media agency, at the 2013 World Economic Forum in Davos, Switzerland.Shinhan ranked the 86th among the 100 sustainable firms as the only Korean firm, the Korean financial group said. The Canadian media and investment research firm compiles and announces the annual list of “The Global 100,” or top 100 sustainable global companies, to recognize environment-friendly and energy-sav

Jan. 24, 2013

Global currency tension likely to flare up this year: report

The global economy is likely to face intensified currency tension this year as major advanced countries’drive for powerful credit easing would hit emerging nations, a private think tank said Thursday.The Samsung Economic Research Institute said in a report that major advanced economies are pushing for economic policies at the expense of other countries, saying that their push for massive credit easing is putting upward pressure on the currencies of emerging countries.The report said that some de

Jan. 24, 2013

Seoul shares dip 0.8 pct on currency woes

South Korean stocks inched down 0.8 percent Thursday as the currency volatility in the foreign exchange market continued to weigh down on investor sentiment, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) lost 15.93 points to finish at 1,964.48. Trading volume was high at 551.2 million shares worth 4.46 trillion won (US$4.18 billion) with losers far outnumbering winners 518 to 289."Shares of local carmakers and technology fi

Jan. 24, 2013