Banks pay generous bonus to workers

Major banks are poised to pay large-scale performance bonuses to employees, despite the difficult situation in the wider economy.The banking sector posted record-high earnings in 2011, while many households and small- and mid-sized enterprises are saddled with snowballing debts.As a year-end compensation for the performance, four major commercial banks ― KB, Woori, Shinhan and Hana ― have offered or plan to offer workers extra payments.Kookmin Bank provided employees with a bonus, which is equiv

Jan. 5, 2012

Korea’s equity market has fewer foreign firms than Asian peers

The proportion of foreign firms on the South Korean stock market is relatively small compared with other Asian equity markets, which is largely due to the local stock market’s low global reputation and strict listing rules, data showed Thursday. Only 17 firms out of 1,822 companies listed on the main bourse and the secondary market, or 0.93 percent, were foreign-based as of end-November last year, according to the data by the Korea Exchange and the Korea Capital Market Institute.The Korean marke

Jan. 5, 2012

Foreign investors turn to net sellers of Korean stocks in 2011: watchdog

Foreign investors shifted to net sellers of listed South Korean equities last year as heightened global market uncertainties prompted a flight for safer assets, the financial watchdog said Thursday.Overseas investors sold a net 9.6 trillion won ($8.4 billion) of local stocks in 2011, compared with a net purchase of 22.9 trillion won the previous year, according to the Financial Supervisory Service.The sharp fall came as foreign investors offloaded 9.3 trillion won worth of shares between August

Jan. 5, 2012

BOK to beef up communication channels through reorganization

Central bank under fire for inflation growth moves to set up new PR organKorea’s central bank has named reining in consumer prices as its top priority this year, but its reorganization plan sends a mixed message about whether it is indeed determined to fight inflation.“Price stability has emerged more than ever before as an important matter of national concern,” said BOK Gov. Kim Choong-soo in his New Year’s message last week. The first noticeable step, however, is to set up a new division offic

Jan. 5, 2012

Shares down 0.13% ahead of big events

Korean stocks edged down 0.13 percent on Thursday as investors cut their holdings of techs and banks ahead of significant political events in Europe and economic data reports in the U.S. next week, analysts said. The local currency fell against the U.S. currency.The benchmark KOSPI inched down 2.48 points to 1,863.74. Trading volume was heavy at 528.5 million shares worth 4.8 trillion won ($4.2 billion) with gainers leading losers 463 to 369.“Investors were reluctant to buy stocks as they are wa

Jan. 5, 2012

Shares edge down on profit-taking

South Korean stocks edged down 0.49 percent Wednesday as investors took profits following a bullish run on the previous session, analysts said. The local currency rose against the U.S. dollar.The benchmark KOSPI lost 9.19 points to 1,866.22. Trading volume was heavy at 488 million shares worth 4.7 trillion won ($4.1 billion), with losers leading gainers 430 to 395.“Some investors offloaded their shares to take profits as the KOSPI jumped nearly 50 points on the previous day on the back of better

Jan. 4, 2012

Small foreign firms to be exempted from tax audit

The National Tax Service said Wednesday it would exempt smaller foreign firms operating in Korea from tax audits as part of efforts to encourage foreign direct investment. Foreign companies whose yearly income is less than 10 billion won ($8.7 million) would qualify for the tax audit exemption. “As with Korean conglomerates, big foreign companies in Korea are subject to regular audits, but smaller foreign units would be excluded from the required audits,” said an official at the NTS.The move cam

Jan. 4, 2012

Korea to sustain growth by frontloading budget: minister

South Korea will help sustain its economic growth this year by frontloading its budget spending during the first half in the face of tough economic conditions at home and abroad, the finance minister said Wednesday.“We will introduce a plan next week to frontload (this year‘s) fiscal budget in order to systematically support expenditures being pursued by each ministry and agency,” Bahk Jae-wan told a crisis management meeting with other policymakers. “I want you to make sure that the assigned bu

Jan. 4, 2012

Foreign IBs bullish on Korean stock market

Foreign investment banks have painted a rosy picture of the local stock market’s performance this year, citing the country’s strong economic fundamentals, a report showed Wednesday. Citigroup and other IBs also based their optimistic outlook on the undervaluation of the local stock market compared to their counterparts in emerging economies, according to the report by the Korea Center for International Finance. In addition, the foreign IBs said the Korean government has ample room to take measur

Jan. 4, 2012

Household debt, savings bank woes threaten finance sector

Rising household debt and trouble-laden savings banks pose a threat to Korea’s financial sector, which has long been protected and pampered by government-led bailouts and injections of public funds, analysts said Tuesday. The country’s banks and other financial companies confront a toxic mix of slower global growth and the protracted sovereign debt crisis in Europe, a precarious situation that could potentially increase the chance of bankruptcies here. “Banks handle a lot of loan-related busines

Jan. 4, 2012

Foreign reserves fall for 2nd month in December

South Korea’s foreign exchange reserves declined for a second consecutive month in December as a weaker euro and a softer pound reduced the conversion value of non-dollar assets, the central bank said Tuesday.The country’s foreign reserves reached $306.4 billion last month, down $2.23 billion from the previous month, according to the Bank of Korea. The December reading marked the second straight monthly decline since the foreign reserves hit $310.98 billion in October. “The biggest reason was th

Jan. 4, 2012

Shares end up 2.69 percent on Europe optimism

South Korean stocks jumped 2.69 percent Tuesday as investor sentiment was boosted by better-than-expected European economic data that showed signs of recovery, analysts said. The local currency rose against the U.S. dollar.The benchmark KOSPI jumped 49.04 points to 1,875.41. Trading volume was heavy at 437.9 million shares worth 4.8 trillion won ($4.2 billion), with gainers outnumbering losers 572 to 261.“Positive economic data in Europe provided a boost to a new-year rally,” said Um Tae-woon, a

Jan. 3, 2012

Foreign IBs forecast Korea to cut key rate this year

Foreign investment banks predict South Korea’s central bank will slash its key rate this year as exports and domestic demand are likely to cool on the persistent eurozone jitters, data showed Tuesday.Deutsche Bank and other major IBs have projected that the Bank of Korea will likely lower the benchmark 7-day repo rate to 3.15 percent by the third quarter of 2012, or 0.1 percentage point lower than the current figure, according to the data by the Korea Center for International Finance. The BOK fr

Jan. 3, 2012

Korean banks to expand presence in Asia

Major lenders look beyond China, Southeast Asia for growth in 2012Korea’s four major commercial banks plan to expand their business networks in Asia’s emerging markets this year.In particular, their 2012 targets include countries in central and Southern Asia as well as those in Southeast Asia, China and Japan.“Aside from markets like China, Vietnam and Singapore, the banking industry began actively tapping Kazakhstan, India and Bangladesh,” a local banker said.But he stressed that banks will sti

Jan. 3, 2012

Hyundai Heavy targets $30.6b orders this year

Hyundai Heavy Industries Co., South Korea’s leading shipbuilder, said Monday that it is aiming to win $30.6 billion worth of orders this year, up nearly 20 percent from last year.The shipyard said it is also targeting sales of 27.54 trillion won this year, compared with last year’s 25.2 trillion won.Hyundai Heavy said its shipbuilding orders jumped 48 percent on-year to $25.5 billion in 2011, helped by growths of its shipbuilding and offshore plants businesses.The recent rise in vessel orders an

Jan. 2, 2012

Seoul shares inch up 0.03% on tech gains

Korean stocks edged up 0.03 percent Monday, boosted by gains in tech firms on more positive signs of the U.S. economy, but the gain was limited due to lingering European debt woes, analysts said. On the first trading session of the year, the benchmark KOSPI rose 0.63 points to 1,826.37.Trading volume was moderate at 317.3 million shares worth 3.3 trillion won ($2.85 billion), with losers outnumbering gainers 334 to 487.The local currency ended at 1,155.8 won to the greenback, down 4 won from Thu

Jan. 2, 2012