Bank household loan growth quickens

South Korean banks’ household loans rose for the seventh straight month in August on gains in home-backed lending, the central bank said Wednesday, fueling concerns over growing household debt.Local banks’ household loans, including mortgage and credit loans, totaled 448 trillion won ($417.8 billion

Sept. 7, 2011

Households’ ability to service debt falling

South Korean households held an average of 50 million won ($46,620) in debt as of the end of June, data showed Wednesday, fanning concerns that rising household indebtedness may undercut economic growth.Debt per household reached 50.4 million won as of end-June, given that South Korea’s household cr

Sept. 7, 2011

FSS, Korea Exchange to probe ‘celebrity stocks’

The Financial Supervisory Service and Korea Exchange have embarked on a joint investigation into alleged manipulation of stocks connected to politicians and well-known figures.A group of retail investors has been chasing so-called “celebrity stocks” related to politicians and famous figures without

Sept. 7, 2011

Kookmin Bank secures $100m FX credit line

South Korea’s top lender Kookmin Bank has recently inked a $100 million foreign currency committed line with an overseas financial firm, sources said Tuesday, joining other banks seeking to diversify their foreign funding.Kookmin is also in talks with other foreign financial companies to expand its

Sept. 6, 2011

Korea faces high inflation, growing uncertainties

South Korea is faced with growing inflationary pressure and expanded economic uncertainties stemming from worries over a global slowdown, the Finance Ministry said Tuesday.“Our economy is confronted with fast accelerating inflation that stands in the 5 percent range with some latest indicators falte

Sept. 6, 2011

Banks told to slash...rates on overdue loans

The Financial Supervisory Service said Tuesday that it would ease the burden on consumers by instructing banks to slash additional interest rates on overdue loans.The measure comes as part of the regulator’s policy to enhance consumer rights while low- and middle-income households suffer from high a

Sept. 6, 2011

12 savings banks on close watch list

FSS warns that the banks may be subject to business suspensionAt least 10 savings banks have been on the close watch list of financial regulators for their poor financial statements, officials said Monday.As a “prior warning” to the industry, the Financial Supervisory Service has reportedly informed

Sept. 5, 2011

Foreign investors dump W6tr of shares in Aug.

Foreign investors dumped nearly 6 trillion won ($5.6 billion) worth of South Korean stocks in August amid the first-ever U.S. credit cut rating and continued fears of Europe’s debt crisis, the financial regulator said Monday.Overseas investors sold a net 5.9 trillion won of local equities in August,

Sept. 5, 2011

FSS seeks insurance globalization

500 officials in 70 nations to attend global regulatory meetingAbout 500 regulatory officials and CEOs in the insurance industry from 70 nations are set to attend one of the world’s three major financial supervisory meetings, slated for later this month in Korea.The 18th annual conference of the Int

Sept. 5, 2011

Korea’s growth on rocky road

Foreign investment banks revise down country’s economic growth projectionsForeign investment banks have revised down their economic growth predictions for South Korea, reflecting worsening external factors such as continuing U.S. and European debt woes that could damage the country’s export-driven e

Sept. 4, 2011

Regulator seeks to slash banking fees

The Financial Supervisory Service plans to unveil a series of measures to protect consumer rights and ease the burden of low- and middle-income households, starting next week.Among other things, the financial regulator is considering putting pressure on commercial banks to slash a variety of service

Sept. 2, 2011

Trouble signs for economy

By Yang Sung-jinSouth Korea’s consumer prices surged at the fastest pace in three years in August and trade surplus shrank sharply as its soaring imports outpaced export gains, data showed Thursday. The double whammy has set alarm bells ringing over the Korean economy amid lingering worries about t

Sept. 1, 2011

Loan delinquency rate reaches 11-month high

Price hikes weaken households’ ability to pay debts in JulyCommercial banks saw the ratio of overdue household loans reach the highest level in 11 months in July, despite financial regulators’ countermeasures to curb lending growth.The delinquency rate in banks’ household loans posted 0.77 percent i

Sept. 1, 2011

Lending controls invite resistance from banks

Credit card firms also voice discontent with regulatory policiesUneasiness and skepticism over the financial regulators’ policy to curb household loans are growing in the banking sector and among think tanks.While the Financial Services Commission plans to unveil additional measures to curb househol

Aug. 31, 2011

SC First Bank to keep 42 branches shuttered until strike ends: CEO

The head of SC First Bank said Wednesday that the lender will not re-open 42 temporarily shuttered branches until the ongoing labor strike comes to an end.More than 2,500 unionized workers at the South Korean unit of Standard Chartered Plc. has been on strike since late June, the longest walkout in

Aug. 31, 2011

Companies’ H1 profits slip on global slowdown

The first half net profit of some of the country’s largest companies dropped more than 7 percent from a year ago, while one in 10 companies posted net losses, damped by global economic slowdown, data showed Tuesday.According to the Korea Exchange and the Korea Listed Companies Association, the combi

Aug. 30, 2011