FSS wants savings banks to offer more micro-loans

Financial regulators plan to activate micro-loan issuances to individuals from the savings banking industry by curbing excessive competition among credit card companies.The plan comes as credit card issuers have been vying to issue loans despite customers’ low credit standings.“Though the savings banking industry has been severely damaged due to construction-related toxic loans, there are still ma

July 7, 2011

SC First Bank punished for illegal metal loan service

Korea's financial watchdog said it has decided to penalize SC First Bank for its violations of local banking laws such as the illegal handling of metal loan services to corporate customers. The Financial Supervisory Service (FSS) said it will impose fines worth 4.5 million won ($4,225) and punish 41 officials of the Korean unit of Standard Chartered Plc after the bank violated regulations on metal

July 6, 2011

Goldman Sachs faces probe over fraud charges

Prosecutors are investigating Goldman Sachs Group on allegations that the investment bank defrauded local insurers Heungkuk Life Insurance and Heungkuk Fire & Marine Insurance.The Seoul Central District Prosecutor’s Office said Wednesday it was taking on complaints by the two insurers that the U.S. investment bank sold a high risk, high yielding investment product known as collateralized debt obli

July 6, 2011

Four banks under probe over unfair lending

The nation’s financial regulator is investigating four major commercial banks on suspicion of unauthorized lending, banking sources said Wednesday.The four facing a probe are Kookmin, Woori, Shinhan and Hana, and the Financial Supervisory Service has recently completed its preliminary examination of the banks, the sources said.The unauthorized lending practice refers to banks’ demand that borrower

July 6, 2011

NPS fund managers accused of selling favors to ex-colleagues

The National Pension Service, the world’s largest public pension, is under fire for its alleged lack of supervision of its staff operating a huge fund after the nation’s top auditor found irregularities. The Board of Audit and Inspection said some NPS officials were found to have given business favors to brokerages with school background ties in exchange for entertainment and money.The public agen

July 6, 2011

Watchdog OKs Gmarket-Auction merger

The Fair Trade Commission on Tuesday gave the green light to the merger of the nation’s two biggest online retailers operating under EBay Inc., ruling that the combination would not hinder the industry’s level of competition.The watchdog’s approval of the Gmarket-Auction merger came after their parent EBay had applied for the deal in March. After studying the deal for three months, the FTC said th

July 5, 2011

Sales forecast for KOSPI-listed firms drops

Revised estimate comes after reduction in government’s growth projectionThe average level of revenue KOSPI-listed firms are expected to generate in the second half of the year dropped, stock analysis said Tuesday, raising concerns over a slower economic growth on weaker consumption and waning exports.The estimation of operating profits for 115 listed companies on KOSPI for the July-December period

July 5, 2011

Foreigners sell local stocks for 2nd month

Foreign investors continued to offload South Korean shares for a second consecutive month in June amid jitters over the eurozone debt crisis and other economic uncertainties, the financial regulator said Tuesday.Overseas investors sold a net 918.6 billion won ($863.8 million) of local equities in June, after selling a net 2.8 trillion won in the previous month, according to the Financial Superviso

July 5, 2011

Imported auto sales jump 17.5% in June

Sales of imported vehicles in Korea surged 17.5 percent last month from a year earlier, helped by aggressive marketing strategies by local car dealers, a trade association said Tuesday.A total of 8,964 imported vehicles were sold here in June, compared with 7,629 units sold a year earlier, according to the Korea Automobile Importers and Distributors Association.Sales in June also represented a 2.1

July 5, 2011

Sonata hybrid No. 2 best seller in U.S.

The hybrid version of the Sonata sedan, made by Korea’s leading carmaker Hyundai Motor Co., ranked as the second best seller in the U.S. hybrid car market in June, industry sources said Tuesday.Sales data from Hyundai and U.S.-based automotive media showed the Sonata’s sales reached 1,422 last month compared to 4,340 for the Prius, which has effectively dominated the global hybrid car market since

July 5, 2011

Banks forecast to tighten mortgage lending in Q3

Korean banks are expected to tighten their grip on home-backed lending in the third quarter as the regulator’s move to curb rising household debt will lead them to be wary of extending mortgage loans, the central bank said Tuesday.An index gauging lender attitudes on mortgage loans came in at zero for the July-September period, compared with 6 tallied in the second quarter, according to a survey o

July 5, 2011

FSC to examine 85 savings banks in sector cleanup

Regulator to force nonviable institutions out of marketStarting Tuesday, the government will conduct another round of regulatory examinations on the overall savings banking industry tarnished by involvement of some banks in a corruption scandal.The Financial Services Commission said Monday that it would make inquiries into 85 out of 98 savings banks for two months to normalize the debt-saddled sec

July 4, 2011

Controversy brews over dividends for Lone Star

The move by Korea Exchange Bank to offer a record interim dividend to its biggest shareholder Lone Star Funds is sparking concerns about long-term growth for Korea’s No. 5 lender, market watchers said.KEB’s board decided on Friday to pay out a quarterly dividend worth of 1,510 won ($1.42) per share, causing U.S. private equity fund Lone Star to rake in dividends worth 496.9 billion won.Lone Star h

July 4, 2011

Seoul shares gain 0.92 pct on eased Greek woes

Korean stocks ended 0.92 percent higher on Monday as investor sentiment was underpinned by eased woes over Greece’s debt crisis and better-than-expected U.S. data, analysts said. The local currency hit a near three-year high against the U.S. dollar.The benchmark KOSPI advanced 19.56 points to 2,145.30. Trading volume was moderate at 288.5 million shares worth 6.68 trillion won ($6.3 billion) with

July 4, 2011

Mirae Asset eyes Canada’s BetaPro

Mirae Asset Global Investment, the largest mutual fund manager in the country, said it is in talks to take over Canada’s BetaPro Management Inc., an exchanged traded funds manager, the local brokerage said Monday.The mutual fund arm of the financial group said price or timing of the acquisition is yet to be finalized. The deal is widely expected to be valued at well over $100 million.“We’re consid

July 4, 2011