Six credit card firms face FSS sanctions

The nation’s biggest credit card firms are expected to receive regulatory punishment for unauthorized sales activities.The Financial Supervisory Service has uncovered about 20,000 irregular cases including reckless issuance of credit cards.Since May, the regulatory agency has been probing six major credit card issuers ― Shinhan, Hyundai, KB Kookmin, Samsung, Lotte and Hana-SK ― in a bid to curb ex

July 25, 2011

Mirae Asset denies takeover bid for Italian luxury brand

Mirae Asset Financial Group, Korea’s major mutual fund manager, on Monday formally denied a local report that it is seeking to take over an Italian luxury brand maker. “There is no truth in the news report,” a spokesman at the company’s fund management division told The Korea Herald. “Although our policy is not to comment on such deals, what I can say is that we are not considering such a takeover

July 25, 2011

Foreign capital liquidity...tops regulatory agenda

Policymakers worried about EU debt crisisThe nation’s chief financial regulator has picked stabilization of the foreign exchange market as the most urgent task in the financial market.Over the weekend, Financial Services Commission Chairman Kim Seok-dong pledged to put priority on securing liquidity in banks’ foreign currency trading, saying that the issue was “the No. 1 regulatory target for this

July 24, 2011

SC First Bank’s striking workers to fly to London for protest

The striking labor union at SC First Bank said that it would fly to Britain on Saturday to visit the bank’s headquarters in London as part of its fight against management in Korea.Speaking at a news conference in Seoul on Friday, the union members said they plan to hold a joint news conference with Britain’s labor organizations and to request a meeting with Standard Chartered PLC CEO Peter Sands.T

July 22, 2011

Big companies hire more ex-officials as directors

Affiliates of South Korea’s top 30 conglomerates employed more former government officials as outside directors this year, data showed Friday, amid escalating criticism of the practice.A total of 308 former government officials were working as outside directors at the 1,140 affiliates of the leading conglomerates as of end-June, up from 256 a year earlier, according to the data compiled by local r

July 22, 2011

Seoul shares slip 0.46% on foreign selling

South Korean stocks ended 0.46 percent lower on Thursday, as foreign investors continued to sell amid persistent concerns related to the U.S. debt ceiling issue and the eurozone debt crisis, analysts said. The local currency climbed against the U.S. dollar.The benchmark Korea Composite Stock Price Index retreated 9.91 points to 2,145.04. Trading volume was moderate at 358.6 million shares worth 7.

July 21, 2011

Manufacturers post net cash outflow in 2010

South Korean manufacturing companies chalked up a net cash outflow in 2010 as they revved up capital spending and securities investments, the central bank said Thursday.According to a survey of 6,778 manufacturers by the Bank of Korea, their average net cash outflow came to 248 million won ($235,000) last year, a turnaround from a net inflow of 1.01 billion won the previous year.“Last year, local

July 21, 2011

Busan Savings Bank draws fresh suspicion for shady land deals

A ruling party lawmaker on Wednesday disclosed fresh allegations of embezzlement involving Busan Savings Bank, insisting that the corruption-ridden lender bought real estate along the southwest coast for inflated prices that were up to 10 times more expensive than the market value.Rep. Ko Sung-doug of the Grand National Party (GNP) said the Busan-based institution, which was suspended in February

July 20, 2011

SC First Bank sues labor union leader

SC First Bank sues labor union leaderSC First Bank filed a complaint against its labor union leader on Wednesday with the police on charges of defamation, according to bank sources.The bank claimed that labor union leader Kim Jae-yool damaged the bank’s image by distributing leaflets making accusations about management to the public, the sources said.In its statement, the union criticized the bank

July 20, 2011

False public disclosures up on KOSDAQ: KRX

False public disclosures surged on the tech-heavy KOSDAQ stock market this year, the Korea Exchange said on Wednesday. As unfair and misleading disclosures by the listed firms tend to increase volatility and distort stock prices, the KRX had toughened its crackdown on such irregularities last year, resulting in a decrease of incidences. But the practice seems to be returning. In the first half of

July 20, 2011

FSC strives to boost savings banking

Financial regulators plan to allow savings banks which meet requirements for financial soundness to operate an installment financing business unit.The regulatory decision comes under the Financial Services Commission’s strong commitment to reviving the distressed savings banking industry.Savings banks are required to satisfy two requirements to open an installment financing unit: They should see t

July 20, 2011

Busan Savings Bank draws fresh suspicion for shady land deals

A ruling party lawmaker on Wednesday disclosed fresh allegations of embezzlement involving Busan Savings Bank, insisting that the corruption-ridden lender bought real estate along the southwest coast for inflated prices that were up to 10 times more expensive than the market value.Rep. Ko Sung-doug of the Grand National Party (GNP) said the Busan-based institution, which was suspended in February

July 20, 2011

Banks face restriction in bond buying

The Bank of Korea said Tuesday it would narrow the scope of foreign exchange banks’ bond purchasing as part of its efforts to minimize side effects.As many local and foreign banks have actively invested in foreign currency-denominated bonds, the nation has undergone steep growth in foreign currency debts and the Korean won’s appreciation.Banks will be banned from investing in foreign currency-deno

July 19, 2011

Top regulator criticizes banks for high dividends

The nation’s chief financial regulator has expressed his skepticism toward major financial groups’ plan to offer its shareholders generous dividends.“Though it is important to maximize shareholder rights, it is also important for financial companies to protect customer rights,” Financial Supervisory Service Gov. Kwon Hyouk-se told reporters on Tuesday.It would be desirable for major financial grou

July 19, 2011

Spanish bank to tap Korean market

European banks expected to expand presence in Korea under Korea-EU FTAEuropean banks are expected to expand their presence in the local market following the implementation of the Korea-EU Free Trade Agreement.Those aiming to making inroads into Korea include Banco Bilbao Vizcaya Argentaria S.A., a lender headquartered in Spain and the third-largest lender in the EU.Korea’s regulatory officials are

July 19, 2011

S. Korea to restrict banks' handling of kimchi bonds

South Korea plans to restrict domestic and foreign banks from investing in foreign currency bonds sold within the country for the purpose of won conversion, in a bid to curb short-term foreign debt, the central bank said Tuesday.Since May, the Bank of Korea (BOK) and the financial watchdog have been inspecting banks' handling of so-called "kimchi bonds,"foreign-currency debt sold by local and fore

July 19, 2011

Foreign investors likely to get half of dividends at financial holdings

Foreign investors are expected to scoop more than half of the coming dividends at Korea’s four major financial holdings companies this year, spurring concerns about capital flight in the industry increasingly tapped by foreign investors.A study by Daishin Securities Co. said Monday that 53 percent, or 1.24 trillion won ($1.17 billion), of the total net profit set aside as dividends at the four maj

July 18, 2011

CEOs control outside directors at financial firms

Flawed recruitment methods render system virtually meaninglessOutside directors at South Korea’s banks and financial firms have been mostly nominated by their largest shareholders and chief executives, undercutting their roles as corporate watchdogs, financial regulators’ data showed on Sunday. Officially, a neutral committee is supposed to name eligible outside directors, whose primary function i

July 17, 2011

Korea’s financial markets grow at record pace

Total investment transactions per year surpass $18.9 trillionThe amount of investment circulating in the South Korean stock, bond and derivatives markets topped 20,000 trillion won ($18.9 trillion) per year, government data showed on Sunday.The Financial Supervisory Service said investment transactions between April 2010 and March 2011 totaled 22,378 trillion won, marking an increase of 500 percen

July 17, 2011