Household loan growth hits record low in August

Household loans extended by South Korean financial firms grew at the lowest pace ever in August as the property market remained in the doldrums amid the economic slowdown, data showed Thursday.Household lending extended by local banks and non-bank institutions totaled 649.8 trillion won ($597.2 billion) as of the end of August, up 4.1 percent from the previous year, according to the Bank of Korea.The August growth rate marked the slowest gain since October 2003 when the central bank began to com

Nov. 15, 2012

S. Korea needs to enhance financial stability: BOK head

South Korea should make efforts to enhance its financial stability by tackling volatile cross-border capital flows in a bid to beef up its economic fundamentals, the country's top central banker said Wednesday.Bank of Korea (BOK) Gov. Kim Choong-soo said at a forum in Seoul that Korea should continue its efforts to dispel potential risks lurking in the financial system and draw up measures to smooth out cross-border capital movements.Since 2010, Korea has taken a set of macro-prudential steps as

Nov. 14, 2012

Shares slip on uncertainties

South Korean stocks closed 0.59 percent lower Tuesday as growing uncertainties about the looming U.S. fiscal cliff and the persistent eurozone debt woes weighed heavily on the local market, analysts said. The local currency declined against the U.S. dollar.The benchmark Korea Composite Stock Price Index lost 11.17 points to close at 1,889.7. Trading volume was moderate at 486.9 million shares worth 3.86 trillion won ($3.64 billion) with decliners outnumbering advancers 609 to 214.“What investors

Nov. 13, 2012

S. Korea's central bank likely to freeze key rate till next year: IBs

Global investment banks (IBs) have forecast South Korea's central bank will likely keep its key policy rate steady through the first six months of next year as the economy regains steam at a gradual pace in the second half, a report showed Tuesday. Major IBs including Goldman Sachs expect the Bank of Korea (BOK) to freeze its key rate at 2.75 percent till the first half of 2013, citing their overall outlook that protracted global jitters are less likely to further aggravate, according to the rep

Nov. 13, 2012

FSS to have banks compensate for phishing crimes

South Korea’s financial watchdog is seeking ways to have banks compensate voice phishing victims. The Financial Supervisory Service said on Monday that it is reviewing related laws to reduce exemption grounds made for banks in terms of making compensation. Over 12,800 voice phishing cases were reported between January 2011 and September 2012, for damages worth over 151.6 billion won ($139.4 million). Banks, however, do not have to provide compensation as the current law simply blames the victim’

Nov. 12, 2012

S. Korea may tighten macro-prudential measures if needed: BOK head

South Korea's top central banker said Monday that the country may strengthen measures to smooth out cross-border capital movements if needed, but potential steps would not take on features of capital control.South Korea has undergone excessive capital outflows whenever a financial crisis has cropped up. Since 2010, Korea has implemented a set of the so-called macro-prudential measures to ease volatile cross-border capital flows including bank levies and tighter regulations on banks' FX derivativ

Nov. 12, 2012

Shares set to remain tepid on U.S. ‘fiscal cliff’

The South Korean stock market is likely to remain downbeat this week as uncertainties over the U.S. “fiscal cliff” continue to dent investor sentiment, analysts said.The benchmark Korea Composite Stock Price Index finished at 1,904.41 last week, down 0.74 percent from the previous week, as steep losses in key automakers weighed on the main index.The KOSPI plunged to the low 1,900-level as shares of Hyundai Motor and Kia Motors tumbled following their fuel efficiency scandal in the United States.

Nov. 11, 2012

Financial firms to eliminate up to 3,400 workers this year

Financial companies in South Korea will likely cut their workforces by up to 3,400 this year, industry data showed Sunday, pointing to harsh times that they are experiencing in the face of the prolonged economic slump.Korean banks and foreign banks operating in the country will cut a combined 1,800 workers by the end of this year, while insurers will reduce their workforce by 600. Card and capital companies will also eliminate about 1,000 workers, according to the data.The number of jobs to be e

Nov. 11, 2012

BOK freezes key rate at 2.75 percent

The country’s central bank left the key rate untouched on Friday, reflecting a hopeful outlook on the nation’s economy based on the brisk export growth in October. As widely expected, the Bank of Korea’s Monetary Policy Committee announced that it would keep the rate frozen at 2.75 percent for November to keep tabs on the impact of the quarter-point rate cut in the previous month. The economic downturn slowed in Korea as exports, consumption and investment improved, said BOK Governor Kim Choong-

Nov. 9, 2012

Shares sink 1.19% on profit taking

South Korean stocks fell 1.19 percent Thursday as investors opted to lock in part of recent gains following the outcome of the U.S. presidential poll, analysts said.The local currency lost ground against the U.S. dollar. The Korea Composite Stock Price Index retreated 23.14 points to finish at 1,914.41. Trading volume was heavy at 6.53 million shares worth 5.31 trillion won ($4.87 billion), with losers outnumbering gainers 532 to 268. “The ‘Romney shares’ such as energy and oil issues tumbled in

Nov. 8, 2012

Manufacturing sector growth falters in Q3

South Korea’s manufacturing sector growth lagged behind the service sector for the first time in 39 months in the third quarter amid the global economic slowdown, data showed Thursday. The country’s manufacturing industry grew 1.3 percent in the July-September period from a year earlier, compared with a 2.4 percent on-year advance logged by the service sector, according to data by the Bank of Korea. In the third quarter, Korea’s economy grew 1.6 percent from a year earlier and 0.2 percent from t

Nov. 8, 2012

NHN net profit jumps 25 percent in Q3

NHN Corp., South Korea’s top Internet portal operator, said Thursday its third-quarter earnings soared 25 percent from a year earlier on robust advertising revenue.Net profit totaled 127 billion won ($117 million) in the July-September period, compared with a profit of 102 billion won a year earlier, the company said in a regulatory filing.Sales climbed 12.5 percent on-year to 596 billion won in the cited period, and operating profit rose 4.3 percent to 156 billion won.The surge in the third-qua

Nov. 8, 2012

Officials oppose supervisory revamp

Senior financial regulatory officials expressed opposition to the presidential candidates’ election campaign pledges to overhaul the financial supervisory structure.The opponents include the top two officials ― Financial Services Commission chairman Kim Seok-dong and Financial Supervisory Service governor Kwon Hyouk-se.Aside from the political sector, many college professors and economists have continued to express skeptical views over the nation’s regulatory structure and system.“Korea ranked 5

Nov. 8, 2012

Korea holds IR session in H.K.

HONG KONG (Yonhap News) ― South Korea urged investors in Hong Kong Thursday to invest in Asia’s fourth-largest economy by offering a variety of incentives.South Korea’s Ministry of Knowledge Economy opened a national investor relations session in Hong Kong earlier in the day, designed to woo Hong Kong-based large-scale funds and other foreign capital.South Korean officials, led by Knowledge Economy Deputy Minister Moon Jae-do, promised various incentives, and private business meetings will be he

Nov. 8, 2012

Banks’ bad loan ratio gains in Q3

The ratio of bad loans extended by South Korean banks rose in the third quarter from three months earlier, largely due to a decrease in bad debt clearance, the financial regulator said Wednesday.The ratio of non-performing loans held by 18 local banks came to 1.56 percent as of the end of September, up 0.07 percentage point from 1.49 percent tallied as of end-June, according to the Financial Supervisory Service.The bad loan ratio had dropped to as much as 1.36 percent at the end of last year, be

Nov. 7, 2012

FSC’s future hangs in the balance

The top financial regulatory entity is at stake as voices are rising to abolish or disassemble it in the upcoming administration. Presidential candidates and financial experts argued that the over-empowered Financial Services Commission should be repealed or split into two different organizations. A financial regulator should primarily be independent from the government and politically neutral, said Kim In-cheol, economics professor at Sungkyunkwan University and new president of the Korean Econ

Nov. 7, 2012

Shares up 1.05% as autos recover

South Korean stocks climbed 1.05 percent on Tuesday as key automakers rebounded from sharp falls spurred by a fuel efficiency scandal in the U.S., analysts said.The local currency gained against the U.S. dollar.The benchmark Korea Composite Stock Price Index soared19.95 points to 1,928.17. Trading volume was moderate at 539.6 million shares worth 4.5 trillion won ($4.1 billion), with gainers outnumbering decliners 493 to 334.“We saw excessive sell-offs of Hyundai and Kia shares in the previous s

Nov. 6, 2012

FSS probes financial firms over sales of retirement pensions

The Financial Supervisory Service has launched a full-fledged investigation into 58 financial firms for their allegedly irregular sales of retirement pension products.“The 58 firms which sell retirement pensions are composed of commercial banks, insurance companies and brokerage houses,” the FSS said in a statement. “Their overheated competition and irregularities will closely be examined.”As the retirement pension market has swiftly expanded over the past few years, many financial firms are sus

Nov. 6, 2012

S. Korea to gradually recover growth next year: IBs

Foreign investment banks (IBs) expect the South Korean economy to see its growth improve at a gradual pace next year, helped by global stimuli and the recovery of domestic demand, a report showed Tuesday.Morgan Stanley projected the monetary easing by the United States and China will improve global economic conditions, benefiting South Korea's exports, a main driver of the country's growth, according to a report by the Korea Center for International Finance.South Korea grew 0.2 percent on-quarte

Nov. 6, 2012