Investor exodus continues in bond market

The Korean bond market continues to see an outflow of funds for a third month as investors flee to capture rising yields elsewhere and tab on bullish equities. The investor exodus is led by foreigners who were fast to exit the market to avoid a revived tax of as much as 14 percent on interest income which Seoul imposed in January to limit capital inflows. Analysts attributed the continued price de

Feb. 8, 2011

Seoul shares up on economic optimism

Korean stocks finished 0.47 percent higher on Monday, led by financial companies, as upbeat U.S. data boosted investor sentiment amid subdued trading after a national holiday, analysts said. The local currency climbed against the U.S. dollar. After rising more than 1.7 percent at one point, the benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,081.74, up 9.71 points from the previous

Feb. 7, 2011

Forensic experts to fight tax evasion

The National Tax Service will launch a forensic investigation center Tuesday to fight increasingly sophisticated tax evasion.The Forensic & Anti Tax Evasion Center will be headquartered in Seoul with regional teams working in the agency’s Daejeon, Gwangju, Daegu and Busan offices. Each team will have about 30 officials. “There are limits to the probe with our traditional enforcement tools as tax o

Feb. 7, 2011

Korea pressured on currency

Seoul officials expected to turn more cautious in wake of U.S. criticismKorean officials are expected to take a more cautious approach in dealing with the foreign exchange market following the U.S. criticism of their active intervention to keep the won low, analysts said Monday.The Bank of Korea declined to make any official comment on the U.S. Treasury Department’s recent report to Congress on th

Feb. 7, 2011

3 bidders launch due diligence on ailing savings bank

Korea's three financial services companies, including industry leader Woori Finance Holdings Co., have launched a due diligence on an ailing savings bank, industry sources said Friday. Mid-sized Samhwa Mutual Savings Bank has been suspended by thefinancial regulator as it failed to meet regulatory capital requirements. The government is seeking to sell the embattled savings bank unless it normaliz

Feb. 4, 2011

Korean won exchange rate to hover at 1,093 won to the dollar: KDI

The average exchange rate of the Korean won is expected to hover at 1,093 won to the dollar this year, a report by a state-run think tank showed Wednesday.The Korea Development Institute (KDI) report said that the local currency should gain in value vis-a-vis the greenback on the strength of such developments as steady economic growth and favorable trade balance.In 2010, the Korean legal tender tr

Feb. 2, 2011

Banks‘ 2010 earnings jump 35.6%

Korean banks saw their earnings surge 35.6 percent last year from a year earlier thanks to increased interest income and profits from sales of stock holdings, the financial regulator said Tuesday.Net income by 18 local banks, including top lender Kookmin Bank and Woori Bank, came to 9.4 trillion won ($8.4 billion) in 2010, compared with 6.9 trillion won in 2009, according to a report by the Financ

Feb. 1, 2011

Brokerages’ foreign units turn to loss

Korean brokerages saw their foreign operations turn to net losses in the fiscal first half of 2010 from a year earlier due to increased sales and maintenance costs, the financial regulator said Tuesday.The 47 foreign units of 19 local securities companies posted a combined net loss of $16.6 million in the April-September period, compared with a profit of $23.1 million a year earlier, according to

Feb. 1, 2011

Banks’ profit jumps 41% as bad-loan ratio drops

Kookmin Bank, Korea’s largest lender, and local rivals posted a 41 percent jump in combined profit last quarter as widening lending margins increased interest income and provisions for bad loans fell.The 18 lenders net income climbed to 2.1 trillion won ($1.9 billion) for the three months ended Dec. 31, from 1.5 trillion won a year earlier, the Financial Supervisory Service said Tuesday in an e-ma

Feb. 1, 2011

S. Korea's consumer prices surge 4.1 pct in Jan.

  South Korea's consumer prices spiked in January mainly due to a rise in agricultural and energy-related product costs, adding to concerns that mounting inflationary pressure could undercut the nation's economic recovery, a government report showed Tuesday.   According to the report by Statistics Korea, the country's consumer price index surged 4.1 percent last month from a year earlier. The figu

Feb. 1, 2011

Korean Air faces price-fixing probe

The antitrust regulator is investigating Korean Air and Mongolian Airlines for possible price fixing for their services between Incheon and Ulaanbaatar, sources said Wednesday.Since October, the Fair Trade Commission has been looking into their ticket prices which are about 30 percent higher than those on routes of a similar distance, they said.Only the two airliners have been running the service

Jan. 31, 2011

20 conglomerates face fines for abuse of suppliers, contractors

About 20 large businesses will face hefty fines for mistreating their suppliers over the next six months, Fair Trade Commission Chairman Kim Dong-soo said.The antitrust regulator has been conducting an extensive inquiry into 40 large companies since last year. In a media interview, he said about half of them were found to have been involved in wrongdoings including unfair pricing and arbitrary can

Jan. 31, 2011

Wrap accounts may double

Individually tailored equity portfolios may double in Korea this year as investors shift cash from index-tracking mutual funds, advisory firm Korea Creative Investment said. Brokerages sold $1.2 billion of products to individual investors based on Korea Creative’s stock picks within a month of the company starting business Dec. 13, Seo Jae-hyeong, chief executive officer of the Seoul-based firm, s

Jan. 31, 2011

Seoul shares plunge on Egyptian unrest

  South Korean stocks ended 1.81 percent lower on Monday as foreigners dumped shares amid growing concerns over political protests in Cairo, analysts said. The local currency lost ground against the U.S. dollar.   The benchmark Korea Composite Stock Price Index (KOSPI) plunged 38.14 points to 2,069.73. Trading volume was moderate at 316.9 million shares worth 7.29 trillion won ($6.5 billion), with

Jan. 31, 2011

Financial firms to feel limited impact from Egyptian riots: watchdog

 Anti-government protests in Egypt will likely have a limited impact on South Korean financial companies in light of their minimal exposure to the North African country, the financial regulator said Monday.   As of the end of September, domestic financial companies owned no securities of or loans to Egypt and their borrowing from the country reached only US$6 million, the Financial Supervisory Ser

Jan. 31, 2011

Prices soar, defying government’s recent anti-inflation measures

Consumer price hikes are showing no signs of let-up, two weeks after the government embarked on a sweeping campaign to fight inflation. Crop damage from extreme weather conditions combined with the country’s worst animal disease outbreak sent food prices to record high levels, hurting low-and middle-income households preparing for the Lunar New Year holiday this week.Pork prices jumped more than 2

Jan. 30, 2011