Seoul stocks snap 6-day winning streak on profit-taking

Korean stocks fell 0.21 percent Tuesday, snapping a rise for six straight sessions, as investors attempted to cash in on recent gains. The Korean won fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index fell 4.22 points to close at 2,016.89. Trade volume was moderate at 377 million shares worth 3.69 trillion won ($3.25 billion), with losers outnumbering gainers 482 to 296.The local stock market opened lower on profit-taking. Last week, the KOSPI surged 2.76 percent on the

July 19, 2016

Finance ministry to hold global financial stability conference

The finance ministry on Tuesday said it will hold an international conference on global financial stability next week amid rising uncertainties stemming from the British vote to leave the European Union, or Brexit.The Global Financial Stability Conference will take place on July 26 in Seoul, with the attendance of some 180 economic and financial experts from governments and international and regional organizations, including Shin Hyun-song, an economic adviser at the Bank for International Settl

July 19, 2016

Financial guidebooks issued for Filipino, Cambodian residents

Korea's financial watchdog on Tuesday published special guidebooks on daily financial services for Filipino and Cambodian residents here, in a bid to help foreign workers and spouses suffering language barriers and cultural differences.There were around 1.74 million foreigners living in Korea as of last year, 54.7 percent of whom were from China, 11.5 percent Vietnam, 4.2 percent the United States, 4.1 percent the Philippines, 2.7 percent Cambodia and 2.3 percent Indonesia, according to the Fina

July 19, 2016

Pokemon Go success helps fuel OTC market boom

[THE INVESTOR] The popularity of Pokemon Go -- a mobile, augmented reality game -- is convincing more investors to see the money-making potential of unlisted firms trading in South Korea's over-the-counter stock market. According to Korea Financial Investment Association, an average daily trading value at the OTC has nearly doubled during the past seven months to 674 million won (US$ 591,400) in July from 390 million won in January. Monthly trading volume also has surged to 11.46 million shares

July 19, 2016

E-Land plans to add rental costs to Kim’s Club takeover deal

[THE INVESTOR] E-Land Group is in the final stages of negotiations with US private equity giant KKR to include the rental costs of its local retail chain Kim’s Club branches to a deal to sell over 70 percent stake in the hypermarket, according to sources on July 19. E-Land is pushing KKR, which was picked as the preferred bidder to acquire Kim’s Club in late March, to pay some 100 billion won (US$87.60 million) for five years of rental costs of the hypermarket franchise’ 37 branches in advance,

July 19, 2016

Seoul stocks open weak on profit-taking

Korean shares started lower Tuesday as investors opted to cash in part of recent gains.The benchmark Korea Composite Stock Price Index slipped 6.11 points, or 0.3 percent, to 2,015.00 in the first 15 minutes of trading.Most large caps traded mixed with market kingpin Samsung Electronics falling 0.33 percent.Top automaker Hyundai Motor shed 0.38 percent, and top steelmaker POSCO also fell 1.32 percent.In contrast, Naver, the operator of the country's top Internet portal, rose 0.56 percent.The loc

July 19, 2016

FSC to toughen rules on stock trades by its officials

Korea's top financial regulator will tighten internal rules on stock trades by its officials, an informed source said Monday, a day after a top prosecutor was arrested on charges of taking bribes in stocks.The Financial Services Commission plans to revise the ethics code to ban new share trading by officials with a rank of 4 or higher. There are nine ranks for Korean civil servants with grade 1 being the highest and 9 the lowest.Under the nation's current equity market law, its public servants a

July 18, 2016

Korean banks rush to issue foreign currency bonds

[THE INVESTOR] Commercial and state-run banks of South Korea are planning massive foreign currency-denominated bond issuances in the second half of the year. According to industry sources, KB Kookmin Bank is planning to raise US$1 billion by issuing foreign currency denominated bonds. The bank is reported to be planning two issuances of equal amount. The first is set for between late July and early August, and the second is planned for sometime between October and November.  Headquarters of KB K

July 18, 2016

[EQUITIES] Korea Investment & Securities sees improved Q2 earnings for Naver

[THE INVESTOR] Korea Investment & Securities on July said it expects Naver to show improved performance in the second quarter of this year.The brokerage said the nation’s top search engine would post a 58 percent increase in operating profit, at 264.1 billion won (US$231.74 million), while sales will climb 26.3 percent to 986.5 billion won.Korea Investment said the seasonal factors, along with the sale of LINE Corp.’s new ad, Timeline, is expected to help bolster Naver’s earnings.Line’s second-q

July 18, 2016

Seoul stocks inch up on tech gains

Korean stocks rose slightly Monday as Samsung Electronics and other tech stocks continued to advance, offsetting a decline in automakers and other market heavyweights. The Korean won fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index rose 3.85 points, or 0.19 percent, to close at 2,021.11. Trade volume was moderate at 376 million shares worth 3.49 trillion won ($3.07 billion), with gainers outnumbering losers 443 to 355.The local stock market opened lower on profit-taki

July 18, 2016

Moody’s to be sole owner of Korea Investors Service

[THE INVESTOR] Moody’s Investors Service will become sole owner of Korea Investors Service, local media reported on July 18. According to reports, NICE Holdings agreed to sell all Korea Investors Service shares held by its subsidiary NICE Infra to Moody’s. NICE Infra currently holds one share less than half of Korea Investors Service. Once the deal is complete, Korea Investors Service will wholly owned by Moody’s. The global ratings agency first acquired a stake in Korea Investors Service in 199

July 18, 2016

[EQUITIES] Top drug makers to miss analysts Q2 expectations on growing R&D costs

[THE INVESTOR] South Korea’s major pharmaceutical companies are likely to post weaker-than-expected earnings for the second quarter of 2016, a local securities firm Shinhan Investment said on July 18.“Combined earnings of 10 major drug manufactures will stay around last year’s level at 115.8 billion won (US$119 million), missing the market expectation of 128 billion won,” Bae Ki-dal, an analyst at Shinhan Investment. 123rfThe analyst attributed the slow growth to declining technology exports and

July 18, 2016

Casamia plans to list on KOSPI

[THE INVESTOR] Upscale home furnishing store chain Casamia plans to list its shares on Seoul’s main bourse KOSPI in August, the brand’s spokesperson said on July 18.The retail firm is expected to offer 3 million shares to the public with the IPO price ranging between 20,000 won (US$17.60) to 24,000 won per share. The size of the total offering will be in the range of 60 billion won to 72 billion won. A Casamia store at COEX, SeoulHanwha Investment & Securities will be the lead underwriter for th

July 18, 2016

[EQUITIES] Solid footing in China to bolster AmorePacific’s Q2 earnings

[THE INVESTOR] AmorePacific, South Korea’s largest cosmetics maker, is expected to log strong second-quarter earnings thanks to its solid performance in China, a local securities firm BNK Securities said on July 18. On a consolidated basis, sales for the April-June quarter were estimated at 1.43 trillion won (US$1.26 billion), up 20 percent on-year while its operating profit will expand by 18.9 percent to 247.5 billion won, according to Lee Seung-eun, an analyst at BNK Securities. Three brands u

July 18, 2016

Short-term Idle capital hits record high

The volume of short-term "floating" capital in South Korea hit an all-time high of more than 950 trillion won ($835 billion) amid record-low interest rates and increased uncertainties, data showed Monday.According to the Bank of Korea and the Korea Financial Investment Association, cash and other short-term capital totaled 958.9 trillion won as of end-May, up 15.1 trillion won from a month earlier. It stood at 866.3 trillion won in May last year. It marks the first time that such floating capita

July 18, 2016

Household debt rises despite gov’t projections

[THE INVESTOR] South Korea’s household debt jumped more than 36 trillion won (US$ 31.70 billion) during the first five months of the year, Bank of Korea data showed. The rate of increase is higher than that recorded in the same period last year, in stark contrast to the government’s projections that the rate of increase will drop. According to the data, loans taken out by Korean households taken out from all depository institutions increased by 36.21 trillion won during the first five months of

July 18, 2016

[EQUITIES] Hyundai Glovis 2016 earnings estimates lowered by analyst

[THE INVESTOR] HMC Investment Securities lowered its annual sales forecast for Hyundai Glovis and cut its target price on the stock from 280,000 won (US$246.31) to 260,000 won on July 18. “We cut the company’s revenue estimate due to sluggish exports of cars manufactured here,” said Kang Dong-jin, an analyst at HMC Investment Securities. Automobiles are lined up to be loaded abroad a transport ship operated by Hyundai Glovis in Pyongtaek./ Hyundai GlovisThe securities company lowered its sales e

July 18, 2016

[EQUITIES]Low real estate transactions dent Hanssem’s Q2 earnings

[THE INVESTOR] Hanssem, South Korea’ s No. 1 furniture maker, failed to meet profit and revenue expectations in the second quarter, a local brokerage firm Mirae Asset Securities said on July 18. “Hanssem posted 435.1 billion won (US$382.81 million) in sales and 30.2 billion won in operation profit which lagged far behind market expectations,” said Lee Gwang-soo, an analyst at Mirae Asset Securities. The biggest reason for the lackluster performance is dropped sales in kitchen interior items whic

July 18, 2016