Questions arise over loan controls

Skepticism emerges on real role of financial authoritiesTop financial regulators’ move to curb the growth of household lending in the banking sector doesn’t appear to have gained widespread support, even among ordinary regulatory officials.Financial Services Commission chairman Kim Seok-dong has rep

Aug. 30, 2011

Hyundai Motor to offer suppliers advance payments

Three major units of Hyundai Motor Group have decided to pay their subcontractors in advance ahead of the Chuseok holidays.There are about 2,800 Hyundai subcontractors, with the advance payments for their coming auto parts supply to total 1.15 trillion won ($1.06 billion), group officials said Monda

Aug. 29, 2011

Samsung’s insurance units top payment reserve lists

Samsung Life and Samsung Fire & Marine hold the largest payment reserves among local life and non-life insurance companies, according to the Financial Supervisory Service.FSS data showed that Samsung Life holds 99.1 trillion won ($91.7 billion) in provisions for insurance payments to customers, topp

Aug. 29, 2011

Moody’s Korean unit faces probe

FSS inspectors to investigate rating firm’s assessment of enterprisesKorea Investors Service, a local unit of U.S.-based Moody’s Investors Service, will be investigated by Korean regulators over its fairness in assessing enterprises, industry sources said.The Financial Supervisory Service, which has

Aug. 28, 2011

SC First Bank union plans six-month partial strike

The labor union at SC First Bank said it would continue its strike even after returning to work next week, in its ongoing battle with management over the bank’s push to introduce performance-based pay. About 3,000 unionized workers at the local unit of Standard Chartered Plc will resume work from ne

Aug. 26, 2011

Watchdog demands retailers...slash commission charges

The Fair Trade Commission has demanded major retailers cut commission they charge traders who use their floor space.The corporate watchdog plans to pressure business groups by disclosing the commission fees they charge merchants, who often have no other option but to comply to the rules set by depar

Aug. 26, 2011

Watchdog issues institutional caution on KEB

SEOUL, Aug. 26 (Yonhap) -- South Korea's financial regulator said Friday it has issued an institutional caution as well as a 54.5 million won (US$50,332) fine on Korea Exchange Bank (KEB) for breaching regulations on loan and personal information."An institutional caution and fine were imposed on th

Aug. 26, 2011

Shinhan Financial to set up group management board next month

SEOUL, Aug. 25 (Yonhap) -- Shinhan Financial Group Co. said Thursday that it will set up a special management board next month to improve openness and transparency at South Korea's No. 3 banking group.The financial group said the board will be made up of CEOs from its six major affiliates such as Sh

Aug. 25, 2011

Banks urge customers to change passwords

Amid the growing risks of private information being leaked online, financial companies are waging a security campaign to persuade customers to alter their online transaction passwords.The promoters include major commercial banks, insurance companies and credit card firms. Via their homepages, they r

Aug. 25, 2011

Shinhan Financial to nominate poolof potential CEOs

New plan aimed at ensuring transparency in management lineupShinhan Financial Group decided to nominate several candidates for chief executives of the group, starting next month, under its effort to raise transparency in management structure.Board members of the nation’s third-largest financial grou

Aug. 25, 2011

Trade chief slams calls for U.S. FTA renegotiation

Trade Minister Kim Jong-hoon dismissed opposition parties’ call for the renegotiation of Korea’s free trade agreement with the United States. “Calls for renegotiation are unrealistic at present as both sides are in earnest moving toward its ratification,” Kim said, speaking at a forum organized by t

Aug. 25, 2011

Government tightens gasoline price control

The government Thursday said it will clamp down on oil refiners overcharging for fuel by pushing their corporate clients to switch to gas stations with more competitive pricing.The fresh fuel price control plan is based on findings that some gas stations were able to maintain high prices because gov

Aug. 25, 2011

Shinhan Bank faces another sanction

The Financial Supervisory Service is to reprimand Shinhan Bank for irregular business activities at a meeting of the Sanction Review Committee on Thursday, officials said.The regulator is considering issuing a warning to the commercial bank, and will confirm or revise the sanction level during the m

Aug. 25, 2011

Economists see minimal impact from Japan cut

By Cynthia J. KimThe Korean economy faces minimal impact from Japan’s sovereign credit rating cut by Moody’s Investors Service as the deteriorating fiscal conditions had already been factored in the market, economists said Wednesday.Local experts pointed out that the rating is unlikely to weaken the

Aug. 24, 2011

FSS to warn Hyundai Capital, Nonghyup

By Kim Yon-seRegulatory sanctions against Hyundai Capital and the National Agricultural Cooperative Federation, or Nonghyup, are imminent, officials of the Financial Supervisory Service said Wednesday.The two financial companies have come under intensive regulatory investigations for incurring a cri

Aug. 24, 2011

‘Little chance of Korean rating cut’

By Cynthia J. Kim and news reports Korea’s Finance Minister Bahk Jae-wan on Wednesday dismissed concerns over a possible cut in South Korea’s sovereign credit rating.“There is little chance that our nation’s ratings will be lowered,” Yonhap news agency quoted Bahk as telling reporters after attendin

Aug. 24, 2011

Korea’s external debt hits fresh high of $398 billion

Korea’s external debt hit a fresh high of $398 billion as of the end of June on steady inflow of foreign capital on bonds, the Bank of Korea said Tuesday.The growth of short-term foreign debt, considered more volatile to external shocks, grew $1.3 billion to $149.7 billion in the three months. Overs

Aug. 23, 2011

Fiscal woes may hit key sectors

Ratings agency expects chip, construction, savings bank sectors to sufferKorea’s construction and semiconductor industries could be severely damaged by fiscal woes in Europe and the United States, a local credit rating company predicted.Industries vulnerable to external shocks picked by NICE Investo

Aug. 23, 2011

BOK to open Shanghai office later this year

South Korea’s central bank said Tuesday that it plans to open an office in Shanghai later this year in a bid to better monitor the Chinese markets and brace for the financial market opening there.The Bank of Korea said it plans to dispatch two employees on Wednesday to an envisioned office in Shangh

Aug. 23, 2011