Ruling may change KEB’s fate

U.S. buyout fund could lose status as biggest shareholder of KEBThe Seoul High Court is likely to find the former CEO of Lone Star Funds’ Korean unit guilty on Oct. 6, according to industry sources.In March, the Supreme Court overturned the High Court’s earlier ruling that acquitted former Lone

Oct. 4, 2011

33 savings banks suffer from capital erosion: data

More than one-third of South Korea’s savings banks have eroded capital due to large bad debts, data showed Tuesday, raising concerns over their financial health and possible bankruptcies.The data comes after the Financial Services Commission, the country’s financial watchdog, suspended operations of

Oct. 4, 2011

Household loans log first fall in 8 months

South Korean banks’ household loans fell for the first time in eight months in September as lenders joined the regulator’s move to curb growing household debt, industry data showed Monday.Household loans extended by top lender Kookmin Bank and three other major banks amounted to 276.9 trillion won (

Oct. 4, 2011

Korea to boost foreign exchange stabilization bond issuance limit

South Korea is set to issue more foreign exchange stabilization bonds next year, the Finance Ministry said Monday, a move that comes amid worries the ongoing financial market turmoil will likely be sustained for the time being.The government plans to set the limit for foreign currency-denominated fo

Oct. 3, 2011

BMW to recall 380 cars for faulty wiring

BMW is recalling over 380 of its X5 and X6 sport utility vehicles sold in South Korea for faulty wiring that could cause a fire, the Transportation Ministry said Thursday.The wiring to the fuel-filter heater, when damp, could electrically overload the heater even when the engine is turned off, causi

Oct. 3, 2011

Korea recoups 60.6% of bailout funds

South Korea has recouped 60.6 percent of the public funds it injected to bail out troubled financial firms during the 1997-98 Asian financial crisis, the financial watchdog said Friday.The country had retrieved 102.2 trillion won ($87.2 billion) of a total of 168.6 trillion won in public funds as of

Oct. 3, 2011

Asset managers’ Q1 net falls 8.3%

Total earnings by asset management firms in South Korea declined 8.3 percent in the first quarter of 2011 from a year earlier on money flight from mutual funds, the financial watchdog said Thursday.The combined net profits of 81 local and foreign asset managers came to 99.5 billion won ($84.3 millio

Oct. 3, 2011

199 Koreans hold more than W5b in overseas accounts

A total of 199 private and corporate deposit holders in South Korea each have more than 5 billion won ($4 million) in their overseas financial accounts, data showed Monday.There were 199 cases reported for overseas financial accounts worth more than 5 billion won in June, with the reported amount to

Oct. 3, 2011

BOK won’t change key rate: investment banks

Foreign investment banks see that the Bank of Korea is unlikely to change the benchmark interest rate by the second quarter of next year. According to the new projection data, Barclays Capital, Citibank and Morgan Stanley projected that the central bank will keep steady the interest rate at 3.25 per

Oct. 3, 2011

Korean banks set for record Q3 profits

Bigger margins, troubles at savings banks a boon for major banksKorean banks are expected to post a record profit in the third quarter of this year, helped by wider margins as lenders hiked loan rates but lowered deposit rates. Margin in the banking sector refers to the percentage added to a market

Oct. 3, 2011

Korea’s CDS premium jumps in Sept.

The cost of insuring South Korea’s sovereign debt against default spiked more than 90 basis points in September from a month earlier amid the European debt crisis, data showed Sunday.According to the data by the Korea Center for International Finance, the credit default swap (CDS) premium on South K

Oct. 3, 2011

HSBC may soon clarify banking closure rumors

HSBC Holdings’ Korean branch is likely to clarify rumors that it is planning to shut down retail banking operations here soon.According to reports that first came out late September, HSBC has drawn up plans to pull out of Korea’s retail banking market and began the process of selling related assets,

Oct. 2, 2011

Irregular trading in derivatives on the rise

Unfair practices in the local derivatives market have become more frequent, according to a report from an opposition party lawmaker. In his report for the National Assembly’s audit of Korea Exchange, Rep. Yu Won-il of Creative Korea Party said that irregular trading of derivative products has surged

Oct. 2, 2011

Korean stocks to lose ground on U.S. woes next week

South Korean shares will likely lose ground next week despite growing hopes of a solution for the European debt crisis as concerns over a U.S. economic slowdown will cause downward pressure, analysts said Saturday.The benchmark Korea Composite Stock Price Index (KOSPI) closed at 1,769.65 on Friday,

Oct. 1, 2011

Industrial output shrinks for second month in Aug.

South Korea’s industrial output shrank for the second straight month in August amid growing uncertainties surrounding global market situations, a government report showed Friday.According to the report by Statistics Korea, production in the mining and manufacturing industries fell 1.9 percent last m

Sept. 30, 2011

Korea to monitor prices of products influenced by forex

South Korea will closely monitor products whose prices could be influenced by currency exchange rates as part of its efforts to bring the nation’s runaway inflation under control, the top economic policymaker said Friday.The remarks by Finance Minister Bahk Jae-wan came amid worries that the won’s r

Sept. 30, 2011

LG Display stresses localization in China

HONG KONG (Yonhap News) -- South Korea's LG Display Co. said Friday localization is a priority in its China business in order to further expand its presence in the world's No. 2 economy."For LG Display, China is not a mere market" said Lee Bang-soo, LG Display's vice-president of public affairs and

Sept. 30, 2011