Eurozone woes to impact Korea: HSBC

Uncertainties stemming from the eurozone debt crisis are likely to impact the Korean economy, Asia‘s fourth-largest, by sapping overseas demand for local products, HSBC Bank Plc said Thursday.“The uncertainties may have dampening impacts on (Korea’s) export mechanism ... If consumers are cautious, they will buy less goods,” Steven Major, Global Head of HSBC‘s Fixed Income Research, told reporters in a media session.Major said Germany may be an exception that could help offset weakening demand in

Jan. 12, 2012

Korean fund market dips below 300 trillion won in 2011

Korea’s fund market suffered a setback last year, with its aggregate amount of money parked for stock and bond investment shrinking amid heightened global growth risks and wobbly financial markets, data showed Thursday. According to the data from the Korea Financial Investment Association, the total amount under management of local funds stood at 298.5 trillion won ($257.4 billion) as of the end of December, down 6.3 percent from 318.8 trillion won a year earlier. The latest figure marked the fi

Jan. 12, 2012

Shares rise 1.03% on eased eurozone fears

South Korean stocks closed 1.03 percent higher on Thursday as investors snapped up shares on eased eurozone debt woes and signs of moderate U.S. economic growth, analysts said. The local currency inched up against the U.S. dollar.The benchmark KOSPI gained 19.02 points to 1,864.57. Trading volume was heavy at 470.8 million shares worth 5.31 trillion won ($4.57 billion) with gainers outstripping decliners 477 to 338.“Despite lingering uncertainty, investors got a little relief from U.S. markets,”

Jan. 12, 2012

Shares end lower on tech losses, China woes

Korean stocks closed 0.41 percent lower Wednesday, as investors unloaded shares in large-cap tech issues amid worries over signs of a slowing economy in China, analysts said. The local currency fell against the U.S. dollar.After bobbing in and out of negative territory, the benchmark KOSPI lost 7.67 points to 1,845.55. Trading volume was light at 235.1 million shares worth 2.20 trillion won ($1.89 billion) with decliners outpacing gainers 428 to 358. “Tech blue-chips lost ground largely due to c

Jan. 11, 2012

Korea’s yearly aid to emerging countries tops $1 billion

Korea’s financial aid to underdeveloped and developing countries has surpassed $1 billion per annum.The Export-Import Bank of Korea said Wednesday that the yearly amount of “official development assistance” has reached $1.17 billion.This means each Korean offered an average of 27,730 won to underdeveloped and developing countries, according to the state-run bank.Asia was the main target of the ODA, accounting for 65.2 percent, followed by Africa with 15.5 percent, and South & Central America wit

Jan. 11, 2012

Tough rules on stocks linked to politicians

Korea’s financial authorities are moving to deal sternly with stocks that move drastically in tandem with politician-linked rumors and other artificial factors. The Korea Exchange, which runs the KOSPI and KOSDAQ, said Wednesday it is considering halting the trading of shares immediately when they receive official investment warnings.The plan comes as a series of local stocks climbed erratically mainly due to market rumors and speculation generating a wide range of “themes,” including the politi

Jan. 11, 2012

Regulator to step up inspection of big savings banks

South Korea’s financial regulator said Wednesday it plans to step up the inspection of the country’s major savings banks this year as part of its efforts to restructure the ailing sector.According to the Financial Services Commission, its executive body, the Financial Supervisory Service, is expected to sign an agreement with the state-run deposit insurer Korea Deposit Insurance Corp. to conduct annual inspections of savings banks with assets over 2 trillion won ($1.7 billion) or those who have

Jan. 11, 2012

Korean sovereign fund suffers loss

Losses blamed on KIC’s purchase of Merrill Lynch stakeKorea Investment Corporation, Korea’s sovereign wealth fund, suffered a net loss of 3.3 percent in terms of average yield last year, hurt by the turmoil in the global financial market and a massive loss linked to its investment in Merrill Lynch, industry sources said Wednesday. The main culprit for the deeper loss is KIC’s poor stock investment, particularly concerning its holdings in Merrill Lynch. In early 2008, KIC bought $2 billion worth

Jan. 11, 2012

Life insurance firms post poor stock investment return

Life insurance companies reported poor performances in their stock investments through equity-linked insurance products.Equity-linked insurance products, also known as variable insurance, invest part of customers’ premiums in the stock market.According to the Korea Life Insurance Association, life insurance firms posted -12.87 percent in combined rate of return in their stock investments through the variable insurance products last year.The figure is lower than the KOSPI’s year-on-year drop of 1

Jan. 11, 2012

Korean sovereign fund suffers loss

Losses blamed on KIC’s purchase of Merrill Lynch stakeKorea Investment Corporation, Korea’s sovereign wealth fund, suffered a net loss of 3.3 percent in terms of average yield last year, hurt by the turmoil in the global financial market and a massive loss linked to its investment in Merrill Lynch,

Jan. 11, 2012

Real estate fund market grows rapidly

Trend expected to continue as investors diversify portfoliosKorean investors, faced with a dearth of reliable assets, are shifting their eyes toward the real estate investment funds. Local real estate funds have drawn a total of 13.2 trillion won ($11.4 billion) as of Jan. 5, up from 7 trillion won recorded in September 2008, according to the data by the Korea Finance Investment Association. The tally covers money from both public and private sector, underscoring that the trend is a reflection o

Jan. 10, 2012

Korea’s ETF trade surges on short-term investors: data

Korea’s exchange-trade funds market has emerged as the biggest in Asia in terms of trading value, data showed Tuesday.The sharp rise of ETF trades in Korea demonstrates that investors put more of their short-term funds in the investments amid a positive outlook for the overall ETF market this year. ETF is an investment fund traded on stock exchanges with attractive features such as low cost, tax efficiency and stock-like characteristics. According to the Korea Exchange, the country’s average dai

Jan. 10, 2012

Shares rise 1.46% on institutional buying

South Korean stocks rebounded 1.46 percent Tuesday as institutions scooped up shares following the U.S. markets’ rally, analysts said. The local currency rose against the U.S. dollar.Snapping a four-session losing streak, the benchmark KOSPI gained 26.73 points to 1,853.22. Trading volume was moderate at 383.2 shares worth 4.86 trillion won ($4.18 billion), with gainers outpacing losers 591 to 238. “After undergoing losses for the last four days, investors increased their bets, boosted by a Wall

Jan. 10, 2012

Hanjin Shipping aims to return to black

Hanjin Shipping Co., South Korea’s top container line, said that it will strive to swing back to the black in 2012 after suffering huge losses last year.The shipper is estimated to have logged a loss of over 800 billion won in 2011, hit by higher fuel costs and falling freight rates.During the fourth quarter of last year alone, Hanjin Shipping is projected to have suffered a loss of some 250 billion won.The shipper’s accumulated net loss and operating loss in the first three quarters of last yea

Jan. 9, 2012