IBs lower Korea’s private consumption outlook below 2%

Foreign investment banks lowered their 2012 outlooks on South Korea’s consumption growth in the private sector to the 1 percent range, the Korea Center for International Finance said on Wednesday. HSBC scaled down Korea’s forecast for private consumption growth from 2.1 percent to 1.8 percent year-on-year, lower than the Bank of Korea’s revised outlook of 2.2 percent in July. The global investment bank said that negative outlooks on the nation’s sluggish real estate market prevail, and the secto

Aug. 27, 2012

Magazine awards Hana Bank, KEB as best banks in Korea

Hana Financial Group announced Friday that Hana Bank and Korea Exchange Bank received awards from Hong-Kong-based magazine Finance Asia.The magazine named Hana Bank on Friday the Best Bank in Korea and KEB the Best Foreign Bank in Korea. Finance Asia announces the best banks in different Asian countries every year through Country Awards. The magazine commented that Hana Bank has shown stable financial growth and growing market share despite the unstable financial environment in and out of the co

Aug. 26, 2012

Credit delinquency rises 23 percent

Experts cite real estate market, worsening employmentThe number of credit delinquents has increased by more than 23 percent over the past year. A local credit appraiser NICE Information Service said on Sunday that the index showing the increase of credit delinquents every month scaled up from 16.83 in April last year to 20.80 in March this year, which is a jump by 23.6 percent. A higher index, developed by NICE, means more credit delinquents. The index has been on the increase since the latter h

Aug. 26, 2012

Shares sink 1.17 percent on economic woes

South Korea stocks dropped 1.17 percent on Friday on renewed concerns over a global economic slowdown and dashed hopes for imminent stimulus measures from European and U.S. central banks, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index lost 22.73 points to close at 1,919.81. Trading volume was moderate at 615.9 million shares worth 4.3 trillion won ($3.8 billion), with losers outstripping gainers 542 to 278.“There still remains wides

Aug. 24, 2012

Seoul shares open lower on growth concerns

South Korean stocks got off to a weak start Friday following fresh concerns over the global economic slowdown, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) lost 20.91 points, or 1.08 percent, to 1,921.63 in the first 15 minutes of trading.Large-cap exporters led the decline, with market bellwether Samsung Electronics slumping 1.17 percent and leading automaker Hyundai Moto

Aug. 24, 2012

Shares inch up 0.38% on bargain hunting

South Korean stocks edged up 0.38 percent Thursday as investors scooped up local shares for bargain hunting following a recent fall, analysts said. The local currency rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index gained 7.35 points to close at 1,942.54, snapping a four-session bearish run. Trading volume was heavy at 594.7 million shares worth 4.15 trillion won ($3.67 billion), with gainers outpacing losers 460 to 335.“Foreign investors picked up large-cap shares t

Aug. 23, 2012

Iran’s Bank Mellat loses lawsuit in Korea over financial sanctions

An Iranian bank has lost a legal battle with Korea’s Finance Ministry to cancel a 2010 decision that suspended the bank’s local branch, a measure following international sanctions over Tehran’s suspected nuclear weapons program, court officials said Thursday. The Seoul Administrative Court in a Thursday ruling rejected a request from Bank Mellat to nullify the decision, officials said. Korea put 102 Iranian entities, including the Bank Mellat branch, and 24 individuals under government supervisi

Aug. 23, 2012

Seoul shares open lower on tech losses

South Korean stocks got off to a weak start Thursday led by losses in techs and shipbuilders, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) lost 5.83 points, or 0.3 percent, to 1,929.36 in the first 15 minutes of trading.Tech heavyweight Samsung Electronics retreated 1.03 percent and leading shipyard Hyundai Heavy Industries fell 0.82 percent.The local currency was trading

Aug. 23, 2012

Seoul shares slip 0.41% on lack of momentum

South Korean stocks edged down 0.41 percent Wednesday ahead of major events in Europe and the United States in the coming weeks, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index lost 8.03 point to close at 1,935.19. Trading volume was moderate at 418.4 million shares worth 4.04 trillion won ($3.56 billion), with losers outpacing winners 475 to 332.“There will be no big liquidity supply, corporate earnings or political events in the ne

Aug. 22, 2012

Korea’s external debt hits record high in Q2

Korea’s external debt hit a fresh record high in the second quarter as its short-term foreign debt spiked due to increased overseas borrowing by local branches of foreign banks, the central bank said Tuesday.The country’s external debt totaled $418.6 billion as of the end of June, up $6.1 billion from three months earlier, according to the Bank of Korea.Korea’s foreign debt rose for the third straight quarter in the second quarter. The country’s foreign debt surpassed the $400 billion mark for t

Aug. 21, 2012

Korea focus: House rich, cash poor

Korea’s real estate market has been weak for some time. Since the 2008 global financial crisis, property prices have grown at only half their long-term rate. Momentum remains skewed toward the downside, with national prices recording their sharpest monthly decline in more than three years. Lower property prices decrease homeowners’ assets. Through the wealth effect, these households will respond by reducing their consumption. This is important because consumption in Korea has the highest sensiti

Aug. 20, 2012

Company that Google Execs should really fear?

Google’s biggest rivals seem to be Facebook and Apple but Google executives should worry more about one company actively taking money out of their pockets, a news report said. Google’s real rival to watch over the next few years is Amazon, according to the report by Business Insider. Google makes money from the searches people do before buying something online because those searches are where the ads are placed. These searches make up 20 percent of Google’s total searches.The Google executives f

Aug. 20, 2012

Korean firms up stake in global TV market

South Korean TV makers raised their stakes in the global market in the second quarter on the back of their strong brand awareness and product lineups, a report said Sunday.According to the report compiled by market research firm DisplaySearch, South Korean TV makers such as Samsung Electronics Co. and LG Electronics Inc. sold a combined 19.82 million units in the second quarter of the year, up 2.3 percent from a year earlier.Their combined market share stood at 38.4 percent in the April-June per

Aug. 19, 2012

Shares down 0.58% on tech loss

Korean stocks slipped 0.58 percent on Friday, led by a sharp fall in tech shares, analysts said. The local currency edged down against the U.S. dollar.The benchmark Korea Composite Stock Price Index fell 11.37 points to 1,946.54. Trading volume was moderate at 368.3 million shares worth 4.7 trillion won ($4.1 billion), with decliners outnumbering gainers 406 to 390.“A slump in Samsung Electronics shares weighed down the KOSPI amid rumors asset firms are cutting back their stakes for profit-takin

Aug. 17, 2012

Breakup of FX swap deal with Japan unlikely to affect financial market

(Yonhap) -- A possible end to the currency swap line with Japan would not have a significant impact on the financial market here as Seoul has made headway in strengthening its safety net designed to absorb shocks from unexpected global turmoil, analysts said Friday.   South Korea expanded its currency swap line with Japan from US$13 billion to $70 billion last year in a bid to secure foreign excha

Aug. 17, 2012

Iranian central bank to stop using accounts at Woori, IBK

The Iranian central bank has decided to stop using its trade settlement accounts at two Korean banks amid disputes over the interest rate.The Central Bank of Iran said it informed Woori Bank and the Industrial Bank of Korea of its decision and asked the Seoul government to find other banks where it can open new Korean won-denominated accounts. The CBI is eyeing NH Nonghyup and the Export-Import Bank of Korea, according to financial sources here.Minoo Kiani Rad, vice governor of the CBI, told Kor

Aug. 16, 2012

Seoul shrugs off impact of spat on Japan currency swap

Eyes are on whether political tension will affect bilateral economyEyes are drawn to whether the heightened diplomatic tension between Korea and Japan will affect their currency swap deal aimed at preventing a foreign currency liquidity crunch.When asked by reporters at a press conference on Wednesday if the Korea-Japan currency swap deal might be reexamined, Japan’s Chief Cabinet Secretary Fujimura Osamu said his government would consider various options in regard to the swap deal, not ruling o

Aug. 16, 2012