Seoul shares gain 0.75 pct on China‘s trade data

South Korean stocks closed 0.75 percent higher Thursday as upbeat Chinese trade data offset uncertainties over bleak quarterly corporate earnings, analysts said. The local currency strengthened against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) advanced 14.99 points to finish at 2,006.80. Trading volume was moderate at 494.5 million shares worth 4.47 trillion won (US$4.21billion) with gainers outnumbering decliners 470 to 307. “China‘s trade data gave investors a se

Jan. 10, 2013

FSS, BOK left out of transition team briefing

The Financial Supervisory Service and the Bank of Korea have not been included on the transition team’s list of government agencies that are due to brief President-elect Park Geun-hye on social and economic administrative issues between Jan. 11 and 17.Officials on Park’s team said that it omitted them as they are “not official state ministries.” The Financial Services Commission, the financial policymaking body, however, is scheduled to report to the transition team on Jan 15. FSS is the regulat

Jan. 9, 2013

Woori Card to spin off in first quarter

Financial regulators are set to approve Woori Financial Group’s plan to spin off its credit card unit from Woori Bank later this month, sources said Wednesday.The Financial Services Commission and the Financial Supervisory Service held a senior-level meeting on Wednesday to fine-tune details in a preliminary step to endorse Woori Financial’s proposal to launch a stand-alone credit card operation. An FSC official said regulators will reach a final decision in the coming panel discussion, slated f

Jan. 9, 2013

Shares down on weak Q4 earnings outlook

South Korean stocks finished 0.66 percent lower Tuesday as rising concerns over a weak corporate earnings outlook dented investor sentiment, analysts said. The local currency gathered ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index dropped 13.30 points to 1,997.94. Trading volume was moderate at 489.3 million shares worth 3.91 trillion won ($3.67 billion), with decliners outnumbering gainers 427 to 369.“Although Samsung Electronics boasted all-time high quarterly e

Jan. 8, 2013

Park not to raise taxes on wealthy bracket

President-elect Park Geun-hye’s transition team is poised to rule out tax hikes in the coming administration’s policy to secure funds for social welfare, committee members said Tuesday.Under Park’s full-fledged welfare project, which will cost the nation more than 90 trillion won ($83.3 billion) over five years, some economists had expected that the high-income bracket and major business groups would ultimately be the main target of tax authorities.But in contrast to market prediction, a member

Jan. 8, 2013

Religious tax to be introduced this month

The Ministry of Strategy and Finance is reportedly pushing for a revised income taxation law that allows the government to collect taxes from religious groups.It plans to reintroduce the ordinance this month that has been controversial since 2006 when the National Tax Service suggested the religious tax to the Finance Ministry.Clergy and monks had been granted tax exemptions, and the ministry had been seriously contemplating whether to introduce the tax system faced with opposition and resistanc

Jan. 8, 2013

Shares end flat on Q4 earnings woes

South Korean stocks finished nearly flat Monday as investors sat on the sidelines on worries over weak fourth-quarter corporate earnings due starting this week, analysts said. The local currency lost ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index fell 0.03 percent, or 0.69 points, to 2,011.25. Trading volume was moderate at 532 million shares worth 3.94 trillion won ($3.71 billion) with losers outnumbering gainers 395 to 392.“The KOSPI closed lower as investors to

Jan. 7, 2013

BAT cuts Dunhill Finecut Superslim by 200 won

British American Tobacco Korea said Monday that it would reposition the price of its Dunhill Finecut Superslim product to 2,500 won ($2.30) from the current 2,700 won. The company said the reduction would take effect on Jan. 17. “The decision to reposition the price reflects current market trends. Superslim segment accounts for about 30 percent of the total tobacco market,” it said.BAT Korea CEO Guy Meldrum said, “We believe the price change will provide wider choice for consumers who are seekin

Jan. 7, 2013

Korea targets closer financial tie-ups with Middle East

South Korea’s financial authorities will dispatch a delegation to the Middle East this week, aiming at vitalizing mutual investment in banking businesses, stocks and bonds.“The project reflects the idea of diversifying foreign direct investment sources, while the nation has mainly resorted to funds from Europe and the United States,” the delegation said in a statement.The planned cooperation with Muslim countries was initiated by the National Policy Committee of the National Assembly and the Fin

Jan. 7, 2013

Transition team to study new tax on foreign exchange transactions

The transition committee of South Korean President-elect Park Geun-hye is expected to study introducing a new tax on foreign currency exchanges in an effort to keep speculative foreign funds from disturbing the local foreign exchange market, an official said Monday.Park’s campaign team had considered an introduction of what is known as the “Tobin Tax” as an election pledge, though the proposal was not adopted ultimately over concern it could be discriminatory.Named after Nobel Laureate economist

Jan. 7, 2013

AllianceBernstein faces FSS probe for late filing

The Financial Supervisory Service is fine-tuning details to launch an investigation into the Korean operation of U.S.-based asset management firm AllianceBernstein Ltd., which made public its stock trading four years after the required timing, regulatory officials said Monday. While the financial regulator said it has yet to launch an official investigation, officials said the case has been under close watch. Its probe generally involves a paper-based review as a preliminary step. “At the presen

Jan. 7, 2013

Over 500,000 foreigners pay tax here

The National Tax Service estimated Monday that the number of non-Korean taxpayers would surpass 500,000 in 2012, up from 465,000 in 2011 and 403,000 in 2010.The NTS released the figure as it is preparing for the year-end tax settlement. Responding to the growing population of foreign workers here, the NTS unveiled a set of guidelines for foreigners who are to file for the year-end tax settlement.Foreign residents are to submit their tax forms on the same schedule as Korean nationals, but their t

Jan. 7, 2013

Insurance firms face sanctions for accounting violations

The Financial Supervisory Service is considering reprimanding major life insurance companies for breaches of accounting standards or irregular trading with their parent groups, officials said Sunday.The regulator conducted its investigation into eight major players last year and its possible sanction targets involve conglomerate-based players such as Samsung Life Insurance and Hanwha Life Insurance (then Korea Life).Some of the eight firms, including Kyobo Life, Tong Yang Life, Mirae Asset Life,

Jan. 6, 2013

Bond turnover hits record high in 2012

The turnover of the South Korean bond market reached an all-time high in 2012 due to investors’ flight to safety, with the value of stock transactions dropping to a four-year low, industry data showed Sunday.The amount of bonds traded on the local market came to 7,320 trillion won ($6.88 trillion) last year, topping the 7,000 trillion won mark for the first time, according to the data by the Korea Exchange and the Korea Financial Investment Association.The turnover of government bonds traded rea

Jan. 6, 2013

Shares to stay flat on gloomy Q4 earnings outlook

South Korean stocks are expected to move in a tight range this week with investors sitting on the sidelines amid the announcement of fourth-quarter performances of local firms, analysts said.The benchmark Korea Composite Stock Price Index finished at 2,011.94 in the first week of 2013, up 0.75 percent from the previous week.The KOSPI soared in the first trading session of this year on rising optimism following the settlement of the U.S. fiscal cliff issue.The U.S. Congress passed a budget bill t

Jan. 6, 2013

Korea to provide 191 billion won to ADB

South Korea will provide the Asian Development Bank with an all-time high 191.2 billion won ($179.4 million) this year to assist developing countries, the government said Saturday.“South Korea decided to provide the assistance to the Asian Development Fund after reaching an agreement on the country’s share of expenses last year,” an official from the Ministry of Strategy and Finance said.Introduced by the regional lender ADB in 1968, the fund aims to provide loans to developing countries at a lo

Jan. 6, 2013

Korea to impose fines on buildings with open doors

Starting Monday, buildings and commercial shops in South Korea that keep their doors open while running heaters will face as much as 3 million won ($2,800) in fines, officials said Saturday. The measure is part of the government’s mandatory campaign to save electricity as the nation is bracing for an unusually cold winter amid risks of a possible power shortage. Big commercial buildings such as hotels and department stores will be required to keep their thermostats at 20 degrees Celsius or lower

Jan. 6, 2013

S. Korea's foreign reserves reaches new high in Dec.

South Korea's foreign exchange reserves reached a new record high in December on the back of an increase in investment profits and higher conversion value of non-dollar assets, the central bank said Friday.The country's foreign reserves reached $326.97 billion in December, up $880 million from the previous month, according to the Bank of Korea (BOK).Foreign reserves consist of securities and deposits denominated in overseas currencies, along with International Monetary Fund reserve positions, sp

Jan. 4, 2013