Vote unlikely to affect economy in short term

Both governing and opposition parties similarly push for more regulations against conglomeratesThe outcome of the general elections is expected to have a minimal impact on the South Korean economy in the short term as there is no substantial difference in key polices between the ruling and opposition parties, analysts said. If the main opposition Democratic United Party grabs a landslide victory, it will push for more welfare-oriented economic policies while introducing more restrictions on cong

April 10, 2012

Shares inch down on U.S. data, N.K. risk

South Korean stocks dropped 0.13 percent on Tuesday, weighed down by unfavorable U.S. economic indicators and geopolitical risks, analysts said. The local currency declined against the U.S. dollar.After regaining the 2,000-point level in early trading, the benchmark Korea Composite Stock Price Index shed 2.67 points to close at 1,994.41. Trading volume was heavy at 533 million shares worth 4.82 trillion won ($4.23 billion), with gainers outpacing losers 436 to 383.“The local bourse was unable to

April 10, 2012

Korea’s national debt grows 28.5 trillion won in 2011

South Korea’s national debt rose by 28.5 trillion won ($25 billion) last year from a year earlier as the government increased borrowing to fill its budget gap, the Finance Ministry said Tuesday.According to a ministry report, the national debt including central and local government borrowing amounted to 420.7 trillion won last year, up from 392.2 trillion won a year earlier.Central government debt grew by 29 trillion won to 402.8 trillion won in the 2011 fiscal year. Debt owed by local governmen

April 10, 2012

Air traffic grows by 5.8% in Q1

Passenger aircraft traffic over South Korea rose 5.8 percent in the first quarter from a year earlier on a growing number of people taking international and domestic flights, the government said Tuesday.The number of passenger planes taking off and landing at local airports and those overflying the country reached 132,000 aircraft in the three month period, from 123,000 a year earlier, the Ministry of Land, Transport and Maritime Affairs said.The tally represents all private jets that flew withi

April 10, 2012

Korea says no plan to curb record foreign bond buying

South Korea, which suffered a sudden outflow of capital in 2008, has no plans to curb record purchases of its debt by foreign funds and will sell 30-year bonds aimed at such investors, a Finance Ministry official said. The level of foreign investment is “manageable” and no curbs are planned, Shin Hyung-chul, director general of the treasury bureau at the Ministry of Strategy and Finance, said in an April 5 interview in Gwacheon, south of Seoul. The government will “gradually increase” issuance o

April 9, 2012

Shares fall below 2,000 points to close at one-month low

South Korean stocks sank 1.57 percent on Monday on disappointing U.S. economic indicators, analysts said Monday. The local currency declined against the U.S. dollar.The benchmark KOSPI lost 31.95 points, or 1.57 percent, to close at 1,997.08. Trading volume was moderate at 458 million shares worth 4.27 trillion won ($3.75 billion), with losers outpacing gainers 726 to 151.The bourse was battered by worse-than-expected U.S. employment numbers, with the number of jobs created in March falling to a

April 9, 2012

KDB seals deal to acquire HSBC Korea

KDB Financial Group said on Monday it has signed a memorandum of understanding with HSBC to acquire the U.K-based bank’s retail operations in Korea. KDB said the takeover of 11 retail branches of HSBC Korea would be implemented in the form of purchase and assumption. The lender said due diligence is scheduled for the assets to be acquired, and a sale and purchase agreement would be signed. The process, including regulatory approval, should be finished quickly. The P&A deal does not involve a tra

April 9, 2012

Listed firms’ debt-repaying ability worsens in 2011

South Korean listed companies’ ability to pay back their debt deteriorated last year as their earnings declined amid increased bond issues, data showed Monday.The average interest coverage ratio of 616 firms listed on the main bourse came to 4.67 in 2011, down from 5.51 a year earlier, according to the data by the Korea Exchange and the Korea Listed Companies Association.The ratio, a firm’s operating profit divided by its interest costs, measures the company’s ability to pay interest on outstand

April 9, 2012

Private banking needs overhaul to stay competitive, urges report

The Korea Institute of Finance, a state-run think tank, said in a report on Sunday that the country’s private banking market needs a revision to the related law to bolster growth and stay competitive in the long term. In a report titled “The potential and limitation of South Korean private banking,” the KIF said the PB industry appears to be growing at a steady pace but the quality of services is falling behind, with lenders struggling to turn out a profit from their supposedly premium banking s

April 8, 2012

Q1 earnings, election to impact Seoul shares

South Korean stocks are likely to be influenced by first quarter earnings reports to be released this week, and the outcome of the parliamentary elections, local analysts said Saturday.The country’s key stock index, the KOSPI, closed at 2,029.03 on Friday, up 0.7 percent from a week earlier, and a 0.01 percent gain from the previous session. The bourse’s modest gains were fueled by improvements in U.S. consumer sentiment figures and Moody’s Investors Service decision to upgrade its outlook on So

April 8, 2012

Korea to tighten grip on public firms’ debts

The government will tighten its financial management of nearly 40 public corporations with large amounts of debt in a bid to keep them from placing a burden on the nation in the future, the Finance Ministry said Sunday.A total of 39 public companies with assets of 2 trillion won ($1.8 billion) or more, including Korea National Oil Corp. and Korea Asset Management Corp., will be required to submit plans to improve their balance sheets by the end of June, the ministry said.The ministry will then r

April 8, 2012

Korea calls for global efforts to prevent oil speculation

Korea will seek to gather international efforts to tighten rules on derivatives trading, the Finance Ministry said on Sunday, pledging to fight speculative investments in crude oil.“Korea, as a major importer of crude oil, will urge the international community to cooperate in stabilizing oil prices,” its report said. It assessed volatile crude prices as a major threat to global growth and called for concrete regulatory measures to tame the speculative forces in the next two Group of 20 meetings

April 8, 2012

Private think tank warns against optimism on inflation

The government should not loosen its anti-inflation efforts though consumer price growth declined to the 2-percent range in March, a private think tank warned Sunday.South Korea’s consumer price index rose 2.6 percent in March from a year earlier, slowing down from a 3.1 percent gain in February and marking the first time since August 2010 that inflation has fallen to the 2 percent range.“Last month’s slowdown was mainly helped by a low base of comparison and government efforts to clamp down on

April 8, 2012

Audit regulators to seek new standards

Forum in Busan to discuss how to supervise accounting firmsGlobal audit regulators are likely to map out new standards in oversight of accounting firms during their scheduled gathering in Korea this month.The 11th plenary meeting of the International Forum of Independent Audit Regulators is slated for April 16-18 in the nation’s second-largest city of Busan.For the local industry, the Financial Supervisory Service of Korea stressed the significance of the meeting in terms of advanced countries’

April 8, 2012

KDB due diligence starts to take over HSBC Korea unit

KDB Financial Group said Friday that it will conduct due diligence on HSBC Korea for about a month, starting next week, to take over their 11 retail branches.Under an agreement between the two sides, any either have the right to nullify the provisional deal according to the inspection results, state-run KDB officials said.“The two sides will make public the provisional agreement possibly early next week. But either side is entitled to scrap the deal as the agreement will be nonbinding,” a KDB sp

April 6, 2012

Shares rise despite EU woes

South Korean stocks closed 0.5 percent higher Thursday in the face of dashed hopes for additional credit easing in the U.S. and fresh woes over the eurozone debt problem, analysts said. The local currency rose against the U.S. dollar.Reversing earlier losses, the benchmark KOSPI gained 10.16 points to close at 2,028.77.Trading volume was moderate at 541 million shares worth 5.64 trillion won ($5 billion), with losers outpacing gainers 442 to 358.The KOSPI opened weak as investor sentiment was sp

April 5, 2012

Korea’s economic slowdown moderating: think tank

South Korea’s economic slowdown is moderating somewhat, helped by an easing of external uncertainties and improvements in domestic demand, a state-run think tank said Thursday.“The slowdown in overall industrial production has eased on improving manufacturing and service output,” the Korea Development Institute said in its monthly report. “Private consumption and business investment are maintaining upward momentum.”Output in the manufacturing and service industries grew 14.4 percent and 5.5 perc

April 5, 2012

Korea now world’s 17th biggest donor: OECD

Korea’s development aid to poor countries grew to make the country the 17th largest donor in the world, the Organization for Economic Cooperation and Development said Thursday.Korea is one of only seven among the 23 members of the OECD to up its aid for poorer nations in the past year. The crisis in Europe and sluggish business sentiment across the globe has seen foreign aid take a hit in many countries. The Korean government in 2011 spent $1.32 billion on official development aid, up 5.8 percen

April 5, 2012