Seoul shares drop on institutional selling

Korean stocks finished 0.56 percent lower on Monday as uncertainties about Europe overshadowed upbeat U.S. data, prompting institutional sell-offs, analysts said.The local currency fell against the U.S. dollar. After opening briefly higher, the benchmark KOSPI dropped 10.52 points to 1,856.70. Trading volume was moderate at 424 million shares worth 2.97 trillion won ($2.58 billion) with losers outpacing gainers 448 to 357. “Investors are not paying much attention to past economic data as they ar

Dec. 26, 2011

Seoul shares end 0.56% down on institutional selling

South Korean stocks finished 0.56 percent lower on Monday as uncertainties about Europe overshadowed upbeat U.S. data, prompting institutional sell-offs, analysts said.The local currency fell against the U.S. dollar.After opening briefly higher, the benchmark KOSPI dropped 10.52 points to 1,856.70. Trading volume was moderate at 424 million shares worth 2.97 trillion won ($2.58 billion) with losers outpacing gainers 448 to 357.“Investors are not paying much attention to past economic data as the

Dec. 26, 2011

Kumho Petrochemical pressed to sell stake in Kumho Asiana

Creditors of Korea Kumho Petrochemical Co. are pressing the company to sell its stake in Asiana Airlines Inc., a major affiliate of Kumho Asiana Group, in order to separate the petrochemical firm from the group, industry sources said Monday.Park Chan-koo, chairman of Kumho Petrochemical, has been se

Dec. 26, 2011

Regulators plan to fuel growth to ETF market

Retirement and pension funds may be allowed to engage in ETF to nurture long-term investmentKorea’s financial regulators plan to nurture the fledgling ETF market by allowing pension and retirement funds to engage in the investment vehicle in question as part of efforts to encourage long-term investment practices. The country’s financial regulators led by the Financial Services Commission are reviewing options aimed at giving an impetus to the ETF market starting from early next year. ETF, or exc

Dec. 25, 2011

Self-employed biz lending accounts for 33.9 percent of SME loans

The amount of money borrowed by self-employed entrepreneurs accounted for 33.9 percent of all loans taken out by small and medium enterprises, data showed Sunday, raising worries it may weigh on government efforts to curb private sector debt.Korean lenders extended loans worth 157.9 trillion won ($137.4 billion) to self-employed business-people as of the end of November, from a total of all SME loans that reached 465.2 trillion won, according to the data from the Financial Supervisory Service.Th

Dec. 25, 2011

Shares likely to gain ground on improving U.S. data

South Korean stocks will likely continue to gain ground this week as improving U.S. economic indicators are expected to bolster investor sentiment, analysts said Saturday.The benchmark KOSPI rose about 1.5 percent last week to close at 1,867.22 on Friday. The rise came despite a plunge on Monday caused by news of the death of North Korean leader Kim Jong-il.Investors were spooked by heightened geopolitical risks, but soon turned their focus more to economic news coming from the U.S. and Europe.S

Dec. 25, 2011

Dividends to foreigners to top W9tr

Investors may demand bigger payments next year for losses from eurozone debt crisisForeign investors are expected to reap more than 9 trillion won ($8 billion) in dividends on the South Korean bourse this year, data showed Sunday. In contrast, Korean investors are likely to see their dividend income from foreign firms standing at less than 4 trillion won, illustrating the widening gap that raises the issue of lopsided dividend payout involving foreign investors. According to the Bank of Korea, o

Dec. 25, 2011

Foreign exchange reserves hit new high

 

Dec. 25, 2011

Ministry, BOK share need to reduce market volatility

South Korea should reduce currency market volatility and expand trade-related financing in order to help local exporters better cope with toughening overseas business conditions, the Finance Ministry and the central bank said Friday.The view was shared at a monthly meeting between the ministry and the Bank of Korea on the nation’s macroeconomic policy direction. They have held the monthly meetings since July.“We shared the view that policy authorities need to work to improve export conditions fo

Dec. 23, 2011

Forex market faces bumpy road ahead

Korea’s foreign exchange market is expected to undergo a tough first quarter in 2012 as the Korean won is likely to weaken amid lingering eurozone woes and a current account deficit, market watchers said Friday.Global uncertainties stemming from Europe’s debt crisis and a U.S. economic slowdown weighed on the local currency this year.After strengthening to a yearly high of 1,050 won to the U.S. dollar on July 27, the won depreciated 12.2 percent to a yearly low of 1,196 won on Sept. 26.Experts s

Dec. 23, 2011

Regulator approves 12 homegrown hedge funds

Korea’s financial regulator said Friday it has given the green light to the establishment of the country’s first 12 homegrown hedge funds, a move designed to nurture the sector.A total of nine local asset managers, including Mirae Asset Global Investments Co. and Shinhan BNP Paribas Asset Management Co., will manage funds worth around 150 billion won ($130 million), according to the Financial Services Commission.Five securities firms, including top-tier players Daewoo Securities Co. and Samsung

Dec. 23, 2011

Moody’s: Korea’s credit rating outlook remains stable

HONG KONG (Yonhap News) ― Global credit appraiser Moody’s Investors Service said Thursday that the outlook for South Korea’s credit rating remains stable despite the death of North Korean leader Kim Jong-il. Kim ruled the communist nation for 17 years after inheriting power from his father and died of a heart attack on Saturday. He ruled with an iron fist and pursued nuclear weapons programs during his regime.Moody’s released a report on South Korea saying geopolitical risks will not constrain t

Dec. 23, 2011

IBK Securities likely to acquire Kumho Industrial

A private equity fund of IBK Securities is expected to take over a large portion of Kumho Industrial worth 1 trillion won ($877 million), according to creditors of the Kumho Asiana Group’s unit.On Friday, creditor banks selected IBK Securities, a brokerage unit of the state-run Industrial Bank of Korea, as the preferred bidder for a package of Kumho Asiana’s transportation units.The M&A targets included Kumho Industrial’s 100 percent stake in Kumho Buslines, 38.74 percent in Seoul Express Bus Te

Dec. 23, 2011

Shares rise 1.07% on U.S. optimism

Korean stocks closed 1.07 percent higher on Friday as upbeat U.S. economic data eclipsed concerns over the eurozone debt crisis, analysts said. The local currency gathered ground against the U.S. dollar.The benchmark KOSPI jumped 19.73 points to 1,867.22. Trading volume was moderate at 459.1 million shares worth 4.25 trillion won ($3.7 billion), with gainers outnumbering decliners 584 to 248.“Positive U.S. job data and consumer sentiment index bolstered hopes on a strengthening U.S. economy and

Dec. 23, 2011

Hana Financial to take over two savings banks

Hana Financial Group is expected to take over Jeil 2 Savings Bank and Ace Mutual Savings Bank, beating another bidder Kiwoom Securities, according to government officials.An official of the Korea Deposit Insurance Corp. said Thursday that the state-run agency will unveil the preferred bidder as early as Friday. He added that “there is a high possibility that Hana Financial will be picked.”Jeil 2 Savings Bank, which is headquartered in Seoul, has assets of 503.7 billion won ($441.8 million). Ace

Dec. 22, 2011

Rich economies greater risk than N.K.

Experts note risk factors related to North Korea are short-livedMonetary policy in the U.S. and the debt woes in the eurozone have caused greater volatility in Korea’s financial market than the death of North Korean leader Kim Jong-il, data showed Thursday.Research by the Korea Center for International Finance found that investors this year were more concerned about how the economy fared in advanced countries for the trade-dependent market here than the North Korea problem. The cost of insuring

Dec. 22, 2011

Shares slip as eurozone hope fades

South Korean stocks inched down 0.05 percent on Thursday as lingering jitters over the eurozone debt crisis outweighed recent positive U.S. economic data and prompted investors to take a breather following the previous session’s rally, analysts said. The local currency fell against the U.S. dollar.After surging around 3 percent on Wednesday, the benchmark KOSPI dipped 0.92 points to 1,847.49. Trading volume was moderate at 400.2 million shares worth 3.08 trillion won ($2.67 billion), with declin

Dec. 22, 2011