Hyundai Motor’s Q3 net profit jumps 21%

Hyundai Motor Co., the world’s fifth-largest carmaker by sales, posted a 21 percent jump in net profit in the third quarter Thursday.The figure was in line with the market consensus on continued popularity of its sedans and SUVs in China, the U.S. and Europe. The company reported 1.92 trillion won ($1.7 billion) of net income for the June-September period, up from 1.59 trillion won a year earlier.The result is expected to cap the company’s most profitable year and beat sales of its rival firm To

Oct. 27, 2011

Korea growth may slow, pressing BOK to hold key rate longer

South Korea’s growth probably moderated in the third quarter as a faltering global economy damped demand for Asian exports, putting pressure on the central bank to extend a pause in raising rates.Gross domestic product expanded 0.6 percent from the second quarter, when it gained 0.9 percent, according to the median of 12 estimates in a Bloomberg News survey. The report will be released at 8 a.m. tomorrow in Seoul. From a year earlier, the economy grew 3.4 percent, according to the survey.Europe’

Oct. 26, 2011

Higher commodity costs feared to fuel inflation

International prices of key raw materials have been rebounding recently, data showed Wednesday, raising concerns South Korea could face growing inflationary pressure due to its heavy dependence on their imports.According to the data by the Korea Center for International Finance, the CRB index, a major gauge of raw material prices, came to 318.57 as of Monday, up 8.6 percent from Oct. 4 when it fell to 293.28, the lowest this year.The increase is driven mostly by price hikes of key raw materials

Oct. 26, 2011

Finance minister urges swift approval of FTA with U.S.

South Korea’s top economic policymaker called for the swift ratification of the long-pending free trade agreement with the United States on Wednesday, saying that a further delay could eventually do more harm than good to the nation’s interests.The trade deal, known as the KORUS FTA, was signed in 2007 and supplemented in December of last year with minor modifications that mostly dealt with the auto industry. Recently, the U.S. Congress passed the deal and it has been awaiting approval from Sout

Oct. 26, 2011

Expectations for KOSPI rebound

Improving outlook for eurozone and U.S. instills optimismKorea’s major brokerages forecast on Wednesday the KOSPI index might reach 2,100 by year-end, citing improving outlook on the eurozone debt crisis and a faster-than-expected recovery of the U.S. economy.The main index recouped its losses this month, rising quickly from 1,650 to around 1,900, on the expectations that the protracted sovereign debt crisis in the eurozone might find a breakthrough sooner than earlier predicted. The rapid rise

Oct. 26, 2011

Seoul shares up 0.3% on eurozone policy hopes

South Korean stocks ended 0.3 percent higher on Wednesday as continued optimism over the eurozone’s policy efforts to salvage the region from a debt crisis kept investor sentiment afloat, analysts said. The local currency fell against the U.S. dollar.After opening lower, the benchmark Korea Composite Stock Price Index climbed 5.66 points to 1,894.31. Trading volume was moderate at 379 million shares worth 5.49 trillion won ($4.85 billion), with gainers outnumbering decliners 428 to 374.“The shif

Oct. 26, 2011

Regulator set to order Lone Star to sell KEB stake

South Korea's financial regulator is expected to order Lone Star Funds to sell the bulk of its stake in Korea Exchange Bank after the U.S. buyout firm said it cannot meet the requirements as the major shareholder of the fifth-largest lender, watchers said Tuesday.Lone Star reported to the Financial

Oct. 25, 2011

Korea to closely monitor impact of China slowdown

South Korea will keep tabs on the potential fallout from a slowdown in the Chinese economy, although the world’s No. 2 economy is likely to make a soft landing despite some downside risks, officials here said Tuesday.The consensus was reached during a monthly policy consultation meeting between the finance ministry and the Bank of Korea earlier in the day in Seoul. The meeting was attended by Vice Finance Minister Shin Je-yoon and BOK’s senior deputy governor Lee Ju-yeol.“We shared the view that

Oct. 25, 2011

Regulator poised to order Lone Star to sell KEB stake

South Korea’s financial regulator is expected to order Lone Star Funds to sell the bulk of its stake in Korea Exchange Bank after the U.S. buyout firm said it cannot meet the requirements as the major shareholder of the fifth-largest lender, watchers said Tuesday.Lone Star reported to the Financial Services Commission on Monday, the last day of a one-week deadline, that it cannot find a way to recover its status as KEB’s major shareholder, according to sources. Lone Star is currently the biggest

Oct. 25, 2011

SC First Bank reopens more branches after labor strike

SC First Bank, the South Korea unit of Standard Chartered Plc, said Tuesday that it has reopened a total of 27 branches that had been temporarily closed due to a labor strike over the introduction of a merit pay system.SC First Bank has resumed operations at 27 of the 42 shuttered branches, a bank spokeswoman said.But there is no timetable for reopening the other branches and developments will depend on how the ongoing labor dispute unfolds.SC First Bank is the first lender operating in South Ko

Oct. 25, 2011

Banks promise to lower service charges

Lenders respond to public criticism over high commission feesCommercial banks bowed to pressure from the public and financial authorities, and disclosed their plan to lower or scrap over 100 services charges they impose on trivial electronic services.A joint letter from 18 local banks was sent to the Financial Supervisory Service where they agreed to cut major service charges, including discounts of up to 50 percent for using cash machines. The banks agreed to decrease the number of service fees

Oct. 25, 2011

Profit-taking pushes shares down 0.51%

South Korean stocks closed 0.51 percent lower on Tuesday as institutions and retail investors opted to lock in profits from the recent rallies as the main stock index neared the 1,900 mark for the first time in nearly two months, analysts said. The local currency climbed against the U.S. dollar.After surpassing the 1,900-level at one point, the benchmark Korea Composite Stock Price Index slipped 9.67 points to 1,888.65. Trading volume was moderate at 348.6 million shares worth 5.97 trillion ($5.

Oct. 25, 2011

Korea will be better-off than Japan in 2030: ADB

The Asian Development Bank said Tuesday that Koreans will enjoy a higher standard of living than the Japanese by 2030, projecting the country’s gross domestic product per capita and purchasing power to exceed that of Japan.In a Seoul seminar co-hosted by the Finance Ministry, the regional lender said the GDP per capita of Korea will stand at $56,000 by 2030, above Japan’s $53,000. It said Korea’s GDP per capita will be similar to that of the U.S. by 2050, at around $98,000.In its “Asia 2050” pub

Oct. 25, 2011

Regulator set to order Lone Star to sell KEB stake

SEOUL, Oct. 25 (Yonhap) -- South Korea's financial regulator is expected to order Lone Star Funds to sell the bulk of its stake in Korea Exchange Bank (KEB) after the U.S. buyout firm said it cannot meet the requirements as the major shareholder of the fifth-largest lender, watchers said Tuesday.Lon

Oct. 25, 2011

Finance chief calls for fiscal soundness

South Korea should strengthen its fiscal health to brace for growing welfare demand from the nation’s fast-aging population and protracted low birth rates, the top economic policymaker said Monday.“Low birth rates and aging population could result in decreasing the number of economically active people and hiking welfare spending, all of which could undercut the nation’s growth potential and worsen its fiscal status,” Finance Minister Bahk Jae-wan told a gathering in Seoul.“We should prepare ours

Oct. 24, 2011

Seoul shares jump 3.26% on hopes for eurozone

South Korean stocks closed 3.26 percent higher Monday as investor sentiment was underpinned by growing prospects for solutions to curb the eurozone debt woes, analysts said. The local currency rose against the U.S. dollar.The benchmark KOSPI rose 59.94 points to close at 1,898.32. Trading volume was moderate at 369.3 million shares worth 6.66 trillion won ($5.88 billion) with gainers outpacing losers 691 to 165. “Growing hopes for resolving the eurozone debt crisis gave solace to investors,” sai

Oct. 24, 2011