Korean firms’ solid earnings help local bourse retain foreign capitalForeign investors increased their holdings of Korean shares despite the continued turbulence in financial markets around the world, data showed Wednesday.According to Korea Exchange and Korea Financial Investment Association, foreign holdings reached 32.86 percent as of Nov. 28, slightly up from 32.14 percent at the end of July when the global financial turmoil was yet to have an impact on the local bourse. In August, concerns

Nov. 30, 2011

Hana Financial Group has reportedly been striving to ask Lone Star Funds to agree on lowering the takeover price of Korea Exchange Bank.The alleged price negotiation between Hana Financial and the U.S.-based equity fund comes after the Financial Services Commission instructed the financial group to submit a revised application for the deal.Though Hana Financial applied for the FSC’s regulatory approval in acquiring a 51.02 percent stake in KEB from Lone Star one year ago, the regulator has yet t

Nov. 30, 2011

South Korean stocks finished 0.49 percent lower on Wednesday as investor sentiment was dented by outlook cuts on U.S. banks and concerns about Chinese manufacturing data, analysts said. The local currency climbed against the U.S. dollar. Snapping a two-day gaining streak, the benchmark Korea Composite Stock Price Index fell 9.01 points to 1,847.51.Trading volume was moderate at 329 million shares worth 6.41 trillion won ($5.61 billion) with loser leading gainers 456 to 375.“It is not a big decli

Nov. 30, 2011

South Korean stocks finished 2.27 percent higher on Tuesday as foreign investors picked up tech exporters and shipyards on eurozone optimism, analysts said. The local currency climbed against the U.S. dollar. The benchmark Korea Composite Stock Price Index advanced 41.24 points to 1,856.52. Trading volume was moderate at 323 million shares worth 6.21 trillion won ($5.41 billion) with 606 gainers leading 229 losers. “Reports that the International Monetary Fund would rescue Italy and the U.S. wou

Nov. 29, 2011

The amount of land here owned by foreigners grew 1.2 percent in the third quarter, continuing its steady growth since the country opened its real estate market to foreign investors in 1998, the government said Tuesday.As of the end of September, foreigners owned a combined 229.29 square kilometers of land in South Korea, up from the 226.52 square kilometers owned by foreigners at the end of the second quarter, according to the Ministry of Land, Transport and Maritime Affairs.Foreigners’ land own

Nov. 29, 2011

Financial Services Commission chief Kim Seok-dong pushed ahead with the decision to impose a “mild sanction” on Lone Star Funds despite some working-level officials’ resistance, financial sources said.The sources said Kim finalized the heated issue on how to sanction the U.S. buyout fund, convicted of stock manipulation, despite reluctance among a group of investigators in the FSC.“I have found that the staff were unwilling to (issue a light sanction),” a former high-ranking official of the FSC

Nov. 29, 2011

South Korean stocks closed 2.19 percent higher on Monday as investor sentiment was underpinned by prospects that the International Monetary Fund may consider a bailout for Italy, analysts said. The local currency rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index jumped 38.88 points to 1,815.28. Trading volume was moderate at 272.2 million shares worth 4.2 trillion won ($3.63 billion) with gainers outpacing losers 555 to 267.“Speculation about the IMF’s help for Italy l

Nov. 28, 2011

The Financial Supervisory Service has launched a probe into the local brokerage industry to weed out irregularities and prevent financial accidents.The regulator is targeting 62 securities firms and eight futures trading firms, chiefly their internal controlling.The companies have been ordered to submit reports on their operations for internal monitoring by Dec. 10.The irregular practices also include unauthorized insider trading with major shareholders and unfair sales of retirement pension fun

Nov. 28, 2011

South Korean shares are expected to move in a tight range this week as fiscal debt problems in Europe and the U.S. will continue to weigh on investor sentiment, analysts said.The benchmark KOSPI closed at 1,776.40, down 3.3 percent last week, marking the fourth consecutive week the index has declined.The index earlier gained ground despite the U.S. Congressional committee’s failure to identify ways to cut the budget deficit as Moody’s Investors Service said it will not downgrade the U.S. soverei

Nov. 27, 2011

South Korea’s financial watchdog said Saturday that it has clinched a preliminary deal with its counterpart in Turkey to promote partnership between them.The Financial Services Commission said its chairman, Kim Seok-dong, has agreed with Vedat Akgiray, chairman of Capital Markets Board of Turkey, during his two-day visit to Turkey.The FSC added that the two agencies also agreed to set up branch offices in Seoul and Istanbul. The FSC said that the office will help local financial firms make inroa

Nov. 27, 2011

Interest payments on household debt exceeded the 50 trillion won ($43 billion) mark for the first time this year as people took out more loans and coped with higher borrowing rates, financial sources said Sunday.Sources said that interest payments on debt reached around 5 percent of the gross national income that will inevitably exert negative influence on consumer spending, production and economic growth.Data from local financial institutions and the Bank of Korea showed household interest paym

Nov. 27, 2011

South Korean futures companies saw their earnings rise 14 percent in the first half from a year earlier, helped by increased commission income and returns from derivatives investments, the financial watchdog said Sunday.The combined net profit of seven local futures firms came to 27.7 billion won ($23.8 billion) in the April-September period, compared with 24.3 billion won in the previous year, according to the Financial Supervisory Service (FSS). The companies closed their books on March 31.The

Nov. 27, 2011

Ministries are in talks on putting new sanctions on Iran for its nuclear development program, likely to include a ban on petrochemicals trade. The ministries of foreign affairs, finance, and commerce, and the Financial Supervisory Commission are reviewing the level of additional sanctions on Tehran, an official said Friday. South Korean Foreign Minister Kim Sung-hwan and U.S. Secretary of State Hillary Clinton are expected to discuss the sanctions when they meet in Busan on Wednesday. “Several g

Nov. 25, 2011

South Korean stocks closed 1.04 percent lower on Friday as persistent concerns over the eurozone debt crisis and fears over credit downgrades spooked investors, analysts said. The local currency dropped against the U.S. dollar.The benchmark Korea Composite Stock Price Index slumped 18.66 points to 1,776,4. Trading volume was moderate at 301.2 million shares worth 4.16 trillion won ($3.58 billion), with decliners outnumbering gainers 592 to 238.“The lackluster results of a summit between Germany,

Nov. 25, 2011

South Korea has already spent about 27 percent of its budget assigned to help farmers whose business might suffer due to the influx of cheaper produce from the U.S. under the recently approved free trade agreement (FTA) between the two nations, the Finance Ministry said Friday.The ruling Grand National Party here rammed the long-pending FTA through parliament on Tuesday against fierce objection by opposition lawmakers, who claim that it favors the U.S. The accord was signed in 2007 and was modif

Nov. 25, 2011