Officials pressed brokerages to alter economic reports

The government pressured brokerage houses to change their outlook on the Korean economy in their reports from “gloomy” to “positive,” financial industry sources said.The move has sparked fury from some economists and analysts who said the “nonsensical” intervention encroached on the independent rese

Aug. 23, 2011

Big investment banks unlikely to come soon

Global economic woes may delay bills on large financial groupsGrowing U.S. fiscal woes are stirring concern in Korea over a possible stall in the parliamentary passage of revised bills on capital market and financial investment businesses, calling for fostering American-style big investment banks.Th

Aug. 22, 2011

SC First Bank’s striking workers likely to return to work next week: union

Striking workers at SC First Bank are likely to return to workplaces as early as next week, ending their all-out work stoppage that started in June in opposition to the bank’s move to adopt a merit pay scheme, the lender’s labor union said Monday.Unionized workers at the Korean unit of Standard Char

Aug. 22, 2011

10 savings banks may face sanctions

FSS winds up inspection of 85 secondary banking institutionsFinancial regulators are expected to issue another round of sanctions against a group of savings banks after completing an intensive inquiry into the secondary banking industry.Under its policy of revamping the industry tarnished by the cor

Aug. 22, 2011

Korea sovereign risk rises, credit default swap shows

Investors see South Korea’s bond and stock markets still highly vulnerable to external shocks despite improved economic fundamentals, data showed on Sunday. The Korean financial markets recently flucuated far more than other markets in the wake of the global shock sparked by the downgrade of the U.S

Aug. 21, 2011

Hana’s KEB takeover set to shape up soon

Hana Financial Group Inc., South Korea’s No. 4 banking group, will be able to know whether it can buy Korea Exchange Bank as early as next month, when a Seoul court rules on a pending court case that has stalled the acquisition, sources said Sunday.Under a 4.41 trillion won ($4.07 billion) deal with

Aug. 21, 2011

4 at Deutsche Bank indicted over stock manipulation

Four employees of Deutsche Bank AG and Deutsche Securities Korea have been indicted on charges of gaining unlawful profits by manipulating stock prices, the Seoul Central District Prosecutors’ Office said Sunday. Of the four, three work at Deutsche Bank’s Hong Kong branch including one executive.The

Aug. 21, 2011

Gloomy outlook clouds Korea’s markets

With jittery investors struggling to glean any hint of reprieve from the deepening global financial woes, the outlook remains gloomy on international fronts, particularly Europe and the U.S., analysts said Sunday. “By now it is clear that a recession is imminent in the U.S. and Europe. A lot of inve

Aug. 21, 2011

Gold prices in S. Korea continue to break record

Domestic gold prices set a fresh record high again on Saturday on increased demand for safer assets amid concerns over a slowdown in the U.S. economy and lingering debt problems in Europe, industry sources said.The retail price of 1 don (3.75 grams) of pure gold in the country stood at an all-time h

Aug. 21, 2011

Household food spending grows fastest in 2nd quarter

South Korean household food expenditures grew at the fastest clip ever in the second quarter amid record-high spending on car fuel, stoked by runaway food and energy costs, data showed Sunday.Household spending on food and non-alcoholic beverages jumped 8.9 percent on-year to a monthly average of 32

Aug. 21, 2011

Shares plunge on global recession woes

KOSPI posts year’s worst drop of 115.7 points; U.S., European, Asian stocks extend slumpKorean stocks took a pounding again on Friday following steep losses in the United States and Europe amid renewed fears of a global recession.The Korea Composite Stock Price Index posted the sharpest drop among m

Aug. 19, 2011

Seoul shares open sharply lower on U.S. losses

South Korean stocks opened sharply lower on Friday as overnight panic selling on Wall Street froze investor sentiment here, analysts said.After opening 3.81 percent down, the benchmark Korea Composite Stock Price Index (KOSPI) sank below the 1,800-point mark. In the first 15 minutes of trading, KOSP

Aug. 19, 2011

Korean, Australian regulators sign MOU on resource sharing

Korea’s financial regulators will sign a memorandum of understanding with its counterpart in Australia, the Australian Prudential Regulation Authority, to collaborate in inspecting illegal financial activities, a senior financial official in Seoul said on Thursday.Financial Supervisory Service Gov.

Aug. 18, 2011

NPS reshuffles key investment posts

Chairman shows determination to cut collusive links with brokeragesNational Pension Service chairman Jun Kwang-woo replaced staff in four key posts responsible for the fund’s investment decisions Thursday, revamping the organization under fire for its staff’s involvement in corruption scandals.The w

Aug. 18, 2011

Seoul shares dive 1.7%

South Korean stocks sank 1.7 percent on Thursday as investors sold off tech and shipbuilder stocks following the recent rally, analysts said. The local currency lost ground against the U.S. dollar.The benchmark KOSPI slumped 32.09 points to 1,860.58, ending a two-session gaining run. Trading volume

Aug. 18, 2011

Foreign IBs see rate freeze for rest of year

Major foreign investment banks are betting that South Korea’s central bank may freeze its key interest rate for the rest of the year, citing an increase in external economic uncertainties, data showed Thursday.The Bank of Korea froze the benchmark rate at 3.25 percent last week for the second straig

Aug. 18, 2011