Financial authorities increase vigilance on Brexit vote

South Korea’s financial authorities are increasing their monitoring of the financial market in light of the vote opening on Thursday on whether Britain should leave the European Union. Global analysts have been cautioning that an exit vote would be devastating for the global economy, including Korea where British capital invested in local stocks accounts for over 8 percent of the total as of May this year. British Prime Minister David Cameron meets citizens in London on May 30, 2016. (Yonhap)“Th

June 23, 2016

[Photo News] Galaxy Studio

A visitor observes Galaxy S7 and Gear Fit 2 at Samsung Galaxy Studio set up at the Cannes Lions International Festival of Creativity in France. The studio runs through June 25. (Samsung Electronics)

June 23, 2016

Seoul stocks open lower ahead of Brexit vote

South Korean shares opened lower Thursday due to lingering worries over Britain's possible withdrawal from the European Union.The benchmark Korea Composite Stock Price Index fell 6.28 points, or 0.32 percent, to 1,986.20 in the first 15 minutes of trading.The outcome of the Brexit vote is scheduled to be officially announced at around 3 p.m. Friday (Korean time) after the referendum ends at 6 a.m. on the same day. Two separate polls, conducted after the murder of a pro-EU lawmaker Jo Cox last we

June 23, 2016

Hyundai Securities to sell stake in K Bank

[THE INVESTOR] Hyundai Securities plans to sell its stake in K Bank, one of Korea’s first Internet-only banks, the firm said on June 23. The brokerage firm is the third-largest shareholder of K Bank, to be launched by No. 2 telecom operator KT, with 10 percent shares.It will seek a board approval for the transaction at a meeting on June 28. “We gained the consent from K Bank’s other shareholders regarding the share sell-off,” a Hyundai Securities official said. “We will begin the disposal proced

June 23, 2016

Credit card spending jumps 22.3% in May

[THE INVESTOR] South Korea’s credit card spending rose more than 22 percent from a year earlier in May, data from the Credit Finance Association showed on June 23.Overall credit card purchases came to 63.2 trillion won (US$54.8 billion) last month, up 22.3 percent from the same month last year. The on-year rise marks a significant acceleration from a 7.1 percent on-year gain posted in May 2015.Such an increase was partly attributed to a surge in the amount of tax payments made with credit cards,

June 23, 2016

Life insurers pressured to pay suicide benefits

Korea’s life insurers are torn over how to deal with a mistake in their insurance contracts regarding suicide coverage, which would amount to 246.5 billion won ($213.8 million) in additional payouts to policyholders. While five small and medium-sized players have surrendered under increasing pressure from financial authorities and the public to pay according to the contracts, eight are refusing to do so, arguing the statutes of limitation have already expired in most cases. In this photo taken o

June 22, 2016

Korea eyes measures to counter rising unemployment in H2

South Korea’s Finance Minister Yoo Il-ho said Wednesday the government will devise a new set of economic policies to counter growing uncertainties and difficulties stemming from debt restructuring and decreasing number of jobs in the latter half of this year.In an economic-related ministerial meeting on Wednesday, Minister Yoo said the government needs to prepare for the worst through policy measures as the economy is expected to further deteriorate later this year.“The economy has recently show

June 22, 2016

KEXIM to issue up to W1tr CoCo bonds

[THE INVESTOR] The Export-Import Bank of Korea will issue contingent convertible bonds on June 29.The export credit agency hopes to raise between 700 billion won (US$605 million) to 1 trillion won with the tier 2, 10-year CoCos. The interest rate is expected to be between 2.1 percent and 2.2 percent. A number of organizations including the National Pension Fund are said to have expressed interest in the bonds.The Export-Import Bank of Korea.The move is aimed at securing capital to prepare for th

June 22, 2016

[Photo News] Gathering against money laundering

Financial Services Commission Yim Jong-yong speaks at the opening ceremony for the Financial Action Task Force’s plenary and working group meetings in Busan on Wednesday. (Yonhap)

June 22, 2016

BOK governor says uncertainties will grow in second half of year

[THE INVESTOR] Bank of Korea Gov. Lee Ju-yeol said Wednesday that the Korean economy is expected to see increasing external and internal uncertainties in the second half of the year. He pointed out that the U.K.’s referendum result on Britain’s exit from the European Union could further spur volatility in the global financial market, during a meeting with economic experts held at the central bank’s headquarters in Seoul. Lee also expressed concerns that the U.S. Federal Reserve is still likely t

June 22, 2016

LG International’s Q2 operating profit to surge 48%: report

[THE INVESTOR] LG International, a trading arm of LG Group, will post improved second quarter earnings, local brokerage firm NH Investment & Securities said on June 22 while maintaining its “buy” rating. According to the securities firm, LG International’s Q2 operating profit is projected to jump 48 percent on year to 44.9 billion won (US$38.8 million). “The market condition for LG International’s resource development business is improving as copper and coal prices have remained at the previous

June 22, 2016

Lotte probe bodes ill for Korea’s M&A market

[THE INVESTOR] The ongoing investigation into Lotte Group could deal a significant blow to Korea’s M&A market, finance industry sources say. Lotte Group has come under scrutiny over alleged corruption that runs to the very top, effectively putting all major plans on hold. With Lotte being one of the biggest players in M&As, concerns are growing that the market will feel a major pinch.  123rf.According to finance industry data, Lotte Group spent more than 7.6 trillion won (US$6.57 billion) to tak

June 22, 2016

Green Cross Labcell, ST Pharm to go public

[THE INVESTOR] Korean pharma companies Green Cross Labcell and ST Pharm will list on the secondary bourse KOSDAQ on June 23, the Korea Exchange announced on June 22. Green Cross Labcell, a Green Cross affiliate that develops drugs for incurable diseases, posted 34.5 billion won (US $29.8 million) in sales and operating profit of 2.3 billion won last year. The initial public offering is priced at 18,500 won. ST Pharm, launched in 2008, recorded 138 billion won in sales and 25.2 billion won in ope

June 22, 2016

Korean M&A market sings the blues over Lotte probe

South Korea's mergers and acquisitions market is expected to take a hit from the ongoing prosecution probe into Lotte Group over alleged slush funds as it has been a big player over the past years under the stewardship of a hard-charging chairman, industry watchers said Wednesday.Since the prosecution opened an investigation into the group's alleged embezzlement and slush fund creation earlier this month, investigators have raided Lotte headquarters, affiliates and houses of senior executives tw

June 22, 2016

Seoul stocks open higher as Brexit fear ebbs

South Korean shares opened higher Wednesday on eased worries over Britain's possible withdrawal from the European Union in Thursday's vote. New polls showed the referendum remains too close to call early this week but the sentiment is now swinging toward 'remain' and the expectation is getting support, analysts said.The benchmark Korea Composite Stock Price Index rose 5.93 points, or 0.30 percent, to 1,988.37 in the first 15 minutes of trading.Supporting the broader index, top automaker Hyundai

June 22, 2016

Korea Exchange seeks cross-listing with Hong Kong Exchanges

[THE INVESTOR] The Korea Exchange has signed a letter of intent with Hong Kong bourse operator, the Hong Kong Exchanges and Clearing, to cross-list their stocks. Under the deal, futures on the Mini KOSPI 200 will be available in Hong Kong while futures on the H-shares index will become listed on the local bourse. If successful, the Korea Exchange will become the first foreign country to list futures on the H-share index. H-Shares, indicating shares of companies incorporated in mainland China tha

June 21, 2016

[ANALYST REPORT] Petrochemical Industry: Key factors that will transform market landscape

The Asian petrochemical market has been bearish due to a surge in oil prices (affect cost) and China’s heightened credit risk (affects demand), in the run-up to major macroeconomic events in June. We expect capacity expansion projects (affect supply) to be delayed until after 2017. That being said, upon the easing of the macroeconomic issues, chemical spreads should widen and petrochemical players’ valuation merit should increase on solid quarterly earnings.Polymer product (including PE, PP, and

June 21, 2016

Moody‘s maintains A1 rating for Kyobo Life

[THE INVESTOR] Moody’s Investors Service has assigned the insurance financial strength rating of Kyobo Life Insurance, Korea’s third-largest life insurer by assets, to A1 for the second year in a row, the firm said on June 21. The rating outlook is stable.Last year, the ratings agency upgraded Kyobo Life Insurance’s rating from A2 to A1 for the insurer’s improvement in profitability and financial stability. Kyobo is the first Korean insurance firm that received the A1 rating from Moody’s. Big na

June 21, 2016

[ANALYST REPORT] Lotte Shopping: Momentum lost for beleaguered Lotte

1) Investment highlights- We downgrade our rating on Lotte Shopping to Marketperform and cut our target price to KRW240,000.- Uncertainties are swelling over the Lotte Group, as prosecutors expanded their investigation into the conglomerate’s alleged activities that include the creation of a slush fund through cross-affiliate transactions, illegal lobbying to build Lotte World Tower, preferential orders to affiliates, exaggerating sales, intra-family real estate transactions, etc.- Contrary to e

June 21, 2016