Hana Financial strives to avoid KEB strike

Speculation rampant that two sides near compromise over mergerHana Financial Group chairman Kim Seung-yu has been striving to prevent the union of Korea Exchange Bank, which has been acquired by the group, from going on strike.While KEB unionized workers have threatened to stage an all-out strike, Kim held a low-key negotiation with leaders of the union on Thursday.According to a speculation, raised by an online news provider, the two parties reached an agreement, which includes that KEB will be

Feb. 16, 2012

Credit rating agencies cut SK Telecom's rating following Hynix takeover

Moody's Investors Service downgraded the credit rating of SK Telecom Co. on Wednesday in the latest move by global credit appraisers to lower the rating of South Korea's biggest mobile carrier after its takeover of a chipmaker.   Moody's cut the credit rating of SK Telecom by one notch to

Feb. 15, 2012

Green Insurance chief accused of stock rigging

Financial regulators filed a complaint against Green Non-Life Insurance and its chairman Lee Young-doo with the prosecution for manipulating stocks.The Securities and Futures Commission said Wednesday that the insurance firm has been suspected of frequently rigging stocks between July 2010 and September 2011.During the period, the insurance firm engaged in more than 3,000 cases of fraudulent trading, according to the regulator.The SFC alleged that the practices were aimed at raising the “risk-ba

Feb. 15, 2012

Shares up 1.13 percent on tech gains

Korean stocks closed 1.13 percent higher on Wednesday as shares of blue-chip technology companies rose on the back of foreign buying and market rumors, analysts said. The local currency gathered ground against the U.S. dollar.The benchmark KOSPI climbed 22.68 points to 2,025.32. Trading volume was moderate at 675.6 million shares worth 7.6 trillion won ($6.8 billion), with gainers outnumbering decliners 445 to 374.“The market performed as usual, but steep rises in shares of Samsung Electronics a

Feb. 15, 2012

Eximbank, Chinese banks sign on project financing

The state-run policy lender Export-Import Bank of Korea said Wednesday it signed an agreement with five Chinese banks as part of efforts to help local companies win big overseas projects.Under the deal, Eximbank will hold quarterly meetings with the five lenders to discuss co-financing plans for South Korean companies’ major projects in areas such as shipbuilding, plant construction, and corporate mergers and acquisitions, the policy lender said.The five banks are the Bank of China, the Industri

Feb. 15, 2012

BOK chief under attack over choice of deputy

Labor union claims Kim’s plan compromises central bank’s independenceBank of Korea Gov. Kim Choong-soo has come under fire from the bank’s labor union on Wednesday, offering a painful glimpse into the internal division and distrust that could generate more public doubt about its policy decisions. The BOK labor union issued a statement in the afternoon, attacking its own governor over his alleged decision to recommend a non-BOK figure to the No. 2 position at the central bank.“According to a rece

Feb. 15, 2012

Foreign investors’ stock buying surges this year

Foreign investors’ buying of local stocks surged this year on the back of eased fear on the eurozone debt crisis that fueled a huge inflow of European money into the emerging markets like Korea, data showed Wednesday. Foreign investors have scooped up local stocks worth a net 8.8 trillion won ($7.82 billion) this year as of Monday, according to the data by the Financial Supervisory Service, the country’s financial regulator.Offshore investors have been on an extensive buying spree since late las

Feb. 15, 2012

Shares slip 0.15% on eurozone woes

Korean stocks fell 0.15 percent on Tuesday as investors offloaded shares following a credit cut on six eurozone countries, but losses were limited as the downgrade was largely expected, analysts said. The local currency fell against the U.S. dollar.After retreating as much as 0.51 percent at one point, the benchmark KOSPI ended 3.1 points lower at 2,002.64. Trading volume was heavy at 500.5 million shares worth 6.4 trillion won (US$5.7 billion), with decliners slightly outweighing gainers 411 to

Feb. 14, 2012

Joint loan liability for private...business owners to be scrapped

The ruling party and the government agreed to abolish the joint liability system for self-employed businessmen when they apply for loans from May in a bid to lessen the burden on new businesses and boost entrepreneurship, the party’s chief policymaker said Tuesday.Rep. Lee Joo-young of the Saenuri Party held a meeting with senior officials of the Financial Services Commission at the National Assembly and reached an agreement to adopt a package of measures aimed at helping self-sufficient busines

Feb. 14, 2012

Online stock trading surges on smartphones

Korea’s online stock trading hit a record high last year, helped by the widespread use of smartphones and other Internet-enabled digital devices. The value of stocks traded online reached 2,468 trillion won ($2.19 trillion) last year, up 18.3 percent from 2,086 trillion won a year earlier, according to the Korea Exchange.Of the total, the main bourse KOSPI accounted for 1,524 trillion won, while the tech-packed KOSDAQ generated 944 trillion won worth of online trades last year. Online stock trad

Feb. 14, 2012

Foreign investors selling Hana shares

Government may intervene in management through pension serviceForeign investors are leaving Hana Financial Group by disposing of their stake amid uncertainties from the group’s takeover of Korea Exchange Bank.Following the departure of Temasek Holdings in October, Goldman Sachs sold off its entire stake in Hana Financial on Tuesday.At the end of June 2011, Temasek, an equity fund controlled by the Singapore government, and Goldman, a global investment bank, were the largest and second-largest sh

Feb. 14, 2012

KB Kookmin named best bank: magazine

KB Kookmin Bank has been selected as Korea’s best onshore custodian for a consecutive year by Asian Investor, a magazine for the Asia-Pacific financial markets.The award, dubbed Asian Investor 2011 Korea, was set up in March 2011 by the magazine.The nation’s largest retail lender Kookmin Bank has emerged as one of Asia’s leading banks.Its parent KB Financial posted 2.37 trillion won ($2.07 billion) in net profit last year. Its total assets came to 361.6 trillion won, up 28.1 trillion won from a

Feb. 14, 2012

Homeowners’ debt grows faster than income in 2011

Debts held by homeowners in Korea grew faster than their income in 2011, data showed Tuesday, indicating that the slowing economy and heavy financial burden from housing loans are causing many to become the so-called “house poor.”According to the data offered by the Bank of Korea and Statistics Korea, household debt among homeowners came to 63.53 million won ($56,570) last year, up 12.9 percent from 56.29 million won a year earlier.Over the same period, their disposable income rose 9.3 percent f

Feb. 14, 2012

BOK to set up 1 trillion won credit line for SMEs

South Korea’s central bank said Monday that it will establish a 1 trillion won ($890 million) special credit line for small and medium enterprises in a bid to spur local lenders to increase loans to them.The move by the Bank of Korea, slated to take effect on April 2, comes as local banks remain reluctant to provide unsecured loans to SMEs with insufficient collateral.“The new credit line is designed to help high-risk smaller firms take out bank credit loans more easily,” a BOK official said.As

Feb. 13, 2012

Shares up following Greek bill approval

Korean stocks closed 0.6 percent higher on Monday as the Greece parliament’s approval of an austerity bill helped quell investor jitters over a possible Greek default, analysts said. The local currency rose against the U.S. dollar.The benchmark KOSPI rose 12.03 points to 2,005.74. Trading volume was moderate at 447.1 million shares worth 5.69 trillion won ($5.07 billion), with gainers outnumbering decliners 484 to 324.“The course of a bailout package for Greece is yet to be determined, but the p

Feb. 13, 2012

Credit card firms vow to block revision of bill on commission rate

Financial regulator and card firms say move undermines market principlesThe Korean government and credit card companies on Monday expressed strong opposition to a revision of the Credit Finance Business Act that, if passed at the plenary session of the National Assembly, would authorize the Financial Services Commission to set the commission rates credit card firms collect from small merchants. Credit card companies said they would take steps to block a revision of the bill that they claim goes

Feb. 13, 2012

Korean financial markets still shy of pre-crisis levels

South Korea’s financial markets are showing signs of recovery from a global crisis caused by a faltering U.S. economy and eurozone debt problems, but remains shy of pre-crisis levels seen in July last year, data showed Monday. South Korea’s credit default swap premium, or the cost of insurance against sovereign default, fell to 1.41 percent on Friday from 2.29 percent on Oct. 4., according to the data by the Korea Center for International Finance. However, the latest CDS premium is still higher

Feb. 13, 2012

Hana Financial inks deal to buy stakes in U.S. lender

Hana Financial Group Inc. said Sunday that it has signed a deal to buy majority stakes in a U.S.-based lender in a bid to expand its presence in the United States.Under the memorandum of understanding with Saehan Bancorp, the South Korean banking group will purchase newly issued shares to secure a 5

Feb. 12, 2012