BOK gets China nod for yuan securities investment

Korea’s central bank said Wednesday that it has won approval from China to invest in yuan-denominated stocks and bonds, joining a string of local financial institutions seeking direct investment in the world’s No. 2 economy. The Bank of Korea received the qualified foreign institutional investor license from the China Securities Regulatory Commission, which allows the central bank to invest in stocks and bonds traded in Shanghai and Shenzen stock markets, it said in a statement. The license allo

Jan. 18, 2012

Regulators refer CNK to prosecution

Financial regulators filed a complaint against the chief of CNK International and three other persons with the prosecution in connection with a growing financial scandal. The Securities & Futures Commission said it took the measure as they are suspected of having engaged in unfair stock trading practices.The SFC said it also informed the prosecution of the alleged wrongdoings of a former diplomat and minister for the Prime Minister’s Office Cho Joong-pyo and five other persons. After he retired

Jan. 18, 2012

Shares slip following rally

Korean stocks closed 0.02 percent lower on Wednesday as investors turned gun-shy following the previous session’s rally, analysts said. The local currency gathered ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index fell 0.35 points to 1,892.39, after jumping 1.8 percent on Tuesday.Trading volume was moderate at 421.6 million shares worth 5.95 trillion won ($5.21 billion), with losers outnumbering gainers 461 to 362.“It seems the KOSPI is testing technical resistance a

Jan. 18, 2012

Korea has OECD’s cheapest electricity

Koreans are enjoying the second-lowest electricity rates among Organization for Economic Cooperation and Development member countries, a report said Wednesday. Prices of electricity for industrial and residential use in Korea stood at 5.8 cents per kilowatt-hour and 7.7 cent kilowatt-hour in 2009, making them lower than in all OECD nations except for Canada, according to the Korean Social Trends report by Statistics Korea. “The cost of electricity for residential purposes here is about 1.5 times

Jan. 18, 2012

Household loan growth slowed in Nov.

Growth of household loans offered by South Korean depository institutions slowed in November, the central bank said Tuesday, amid the government’s efforts to rein in private sector debt. Household lending handled by local banks and non-bank institutions totaled 638 trillion won ($554.4 billion) as of the end of November, up by more than 3.6 trillion won from the previous month, according to the Bank of Korea. The monthly increase in November was moderate compared with the growth in the previous

Jan. 17, 2012

IMF likely to lower Korea’s GDP outlook soon: official

The International Monetary Fund may lower Korea’s growth outlook from current 4.4 percent in its next economic report due April, a government official in knowledge of the fund’s visit to Seoul this week said Tuesday.“A delegation from the IMF was at the Finance Ministry on Monday. I think they might change their growth outlook on Korea as things have changed from last September,” the official said on condition of anonymity. “GDP projection is likely to be dimmed,” he added.A cut in growth outloo

Jan. 17, 2012

Women flex muscles as fund managers, analysts

More women take up key research positions at major securities companiesWomen are making inroads into the financial sector at a rapid pace, taking up more specialist positions such as fund managers and analysts. According to brokerages and the Korea Financial Investment Association, the proportion of female analysts and fund managers is rising, following the broader trend of the gender gap narrowing in the workplace. The most significant change is taking place in the research divisions of major s

Jan. 17, 2012

Shares up on eased EU worries

South Korean stocks ended 1.8 percent higher Tuesday as investors shrugged off recent eurozone sovereign downgrades and snapped up shares of blue-chip banks and exporters, analysts said. The local currency gathered ground against the U.S. dollar.The benchmark KOSPI soared 33.47 points to 1,892.74. Trading volume was heavy at 426.6 million shares worth 5.91 trillion won ($5.16 billion), with gainers outnumbering losers 553 to 269.Foreigners scooped a net 393.3 billion won worth of shares, extendi

Jan. 17, 2012

U.S. hedge fund may tap into local market

Millennium Partners, a fund managed by the U.S.-based Millennium Management LLC, is considering tapping the Korean hedge fund market, sources said Monday, in what would mark the first local entry of an overseas fund.Millennium Partners, which manages funds valued at around $13 billion, reportedly plans to set up a local affiliate and seek regulatory approval as early as this month in a bid to operate its hedge fund here.“The regulator has been in talks with the company, although an official docu

Jan. 16, 2012

Seoul shares dip on eurozone woes

South Korean stocks ended 0.87 percent lower on Monday as a massive eurozone credit ratings cut battered investor sentiment, raising fears the region is far off from solving its debt crisis, analysts said. The local currency fell against the U.S. dollar. After tumbling as much as 1.7 percent at one point, the benchmark KOSPI closed down 16.41 points at 1,859.27. Trading volume was moderate at 382.9 million shares worth 3.88 trillion won ($3.36 billion), with decliners outnumbering gainers 586 to

Jan. 16, 2012

Foreign IBs see firm export growth for Korea this year

Foreign investment banks predict South Korea’s export growth will likely top those of its Asian peers mainly due to increased demand from China and a free trade pact with the U.S. set to take effect early this year, data showed Monday.Global investment bank HSBC expected Korea’s export to grow 9.7 percent on-year in the first quarter of 2012, with the figure to stay above the 9 percent through most of the remainder of the year, according to the data by the Korea Center for International Finance.

Jan. 16, 2012

Banks’ short-term foreign borrowing up in December

Korean banks’ short-term overseas borrowing climbed in December as lenders rushed to secure foreign currency liquidity amid concerns over a deterioration in external conditions, the financial watchdog said Monday.A total of 16 local banks refinanced 120.3 percent of their maturing short-term foreign debts through fresh borrowing last month, compared with 95.9 percent in November, according to the Financial Supervisory Service.The rollover rate gauges the percentage of fresh overseas borrowing ag

Jan. 16, 2012

Foreign investors boost holdings of Korean Treasuries

Foreign investors scooped up Korean Treasuries last year as Korean debts emerged as relatively safer assets compared to those in slumping Europe and the U.S., data showed Monday.The outstanding amount of South Korean Treasuries held by foreigners reached 61 trillion won ($53.1 billion) at the end of last year, up 27.8 percent from a year ago, according to the data by the Korea Exchange. The proportion of foreign investors in the Korean bond market stood at 15.6 percent. Foreign investors’ won-de

Jan. 16, 2012

Individual investors make more risky trades

Despite the sluggish stock market, Korea’s individual investors showed a stronger appetite for risky investment vehicles, raising worries over the side effects. According to data by the Korea Exchange, individual investors accounted for 37.2 percent of KOSPI 200 stock futures trades in terms of value in the fourth quarter of last year. The figure marks a 10-percentage point increase from 27.2 percent a year earlier. The proportion of individual investors in the highly risky futures trade began t

Jan. 16, 2012

Eurozone rating shock seen having limited impact on Seoul market

Renewed fears about the fiscal crisis in Europe following credit rating downgrades by Standard and Poor’s are likely to have a limited impact on the Korean market, brokerages said Monday.France, Austria and seven other European countries saw their ratings go down a notch or two on Friday, raising concerns about the trouble-laden eurozone and its effect on financial markets worldwide. “The downgrade has been already factored into market prices since Standard and Poor’s put 15 European nations on

Jan. 16, 2012

Gloomy outlook for Korean industries

Eurozone ratings downgrades add to exporters’ worriesExporters and investors are bracing for a fresh wave of turbulence reignited by Standard & Poor’s downgrade of half of the eurozone nations on Friday.The automotive, shipbuilding and electronics industries expressed renewed concern for a recession in Europe and elsewhere from the mass credit rating cuts. Government officials downplayed the effect at home, but analysts agree that stocks and the won will slide in the coming weeks. “Demand is rel

Jan. 15, 2012