[LOTTE CRISIS] Hotel Lotte withdraws IPO as embezzlement probe deepens

[THE INVESTOR] Hotel Lotte on Monday officially canceled its initial public offering scheduled for next month, as a large-scale embezzlement probe into the group and its affiliates deepened with emerging reports of confirmed wrongdoings.“We are pushing back our IPO to a later time and cancelling all remaining procedures in consideration of Lotte’s current circumstances and investor interests,” Hotel Lotte said in an emailed statement.“Listing the company is an integral part of reforming Lotte Gr

June 13, 2016

Corporate tax hike shapes up as divisive issue

[THE INVESTOR] Whether to increase corporate taxes is shaping up as a key issue of contention between major political parties in the new parliament that began its inaugural session Monday.The chief policymaker of the liberal main opposition Minjoo Party of Korea last week reaffirmed the party would soon submit a tax code revision bill to raise the maximum corporate tax rate, which would be applied to companies with annual profits exceeding 50 billion won ($42.6 million), to 25 percent from the c

June 13, 2016

Korea's foreign currency deposits shrink in May

Foreign currency deposits at banks in South Korea dropped sharply in May from a month earlier on a large decline in dollar-denominated deposits, central bank data showed Monday.Outstanding foreign currency deposits held by local residents came to $56.85 billion as of end-May, down $5.19 billion from a month earlier, according to the data from the Bank of Korea.The May tally also marks the lowest level in three months.The drop was largely attributed to a cut in U.S. dollar deposits."Dollar deposi

June 13, 2016

The Investor, a global hotline for corporate Korea and investors

English online business news service The Investor opened Monday, with the aim of providing investors with timely, accurate and influential information on Korea’s business scene. Founded by Korean media and lifestyle company Herald Corp., The Investor delivers expert analysis, breaking stories and in-depth market coverage in English for people who make decisions around the globe. 　Foreign investments currently make up around 50 percent of ownership in major conglomerates in Korea. Despite signifi

June 13, 2016

Deposits at non-bank institutes hit record high in April

Deposits at non-bank financial institutions, including savings banks, have reached a record high, central bank data showed Monday, as people sought to maximize their interest earnings while the key rate remains at a record low.As of end-April, deposits held at non-bank financial institutions came to some 2,022.15 trillion won ($1.725 trillion), according to the data compiled by the Bank of Korea.The April reading marks a great increase from 1,911.1 trillion won tallied at the end of 2015. It als

June 13, 2016

Foreigners shed Korean stocks in May for profit-taking

Foreign investors turned to net sellers of South Korean stocks last month to lock in recent gains, the country's financial watchdog said Monday. Foreigners sold a net 142 billion won ($120 million) worth of local stocks in May, the Financial Supervisory Service said in a statement. Foreign investors' accumulated holdings of domestic stocks reached 433.96 trillion won, or 29 percent of the total market capitalization, the statement said.But they bought a net 3.05 trillion won in stocks in the fir

June 13, 2016

Korean card firms to protest Visa over fee hike

South Korea's eight credit card companies are moving to protest a decision by U.S. industry giant Visa Inc. to increase fees local card users pay for their overseas use, industry sources said Monday.Last month, Visa informed the local card firms that it has decided to hike fees on six types of overseas services, including overseas settlements. The decision also calls for a rise in commissions the South Korean firms pay to Visa.The fee increase, however, doesn't apply to credit card holders in Ja

June 13, 2016

‘Fiscal stimulus needed to tackle low growth’

The market was caught by surprise from the central bank’s earlier-than expected rate cut last week, providing support to the government’s policy on corporate restructuring amid a gloomy economic outlook.With the Bank of Korea lowering its base rate to record low of 1.25 percent in addition to committing to offering 10 trillion won ($8.5 billion) for policy bank recapitalization, analysts say it is now the Finance Ministry’s move to further cushion the economy from the negative outlook with expan

June 12, 2016

POSCO most popular stock among foreign investors

Korean steelmaking giant POSCO was the most popular stock this year for foreign investors, market data showed Monday, amid improving sentiments helped by its better-than-expected earnings. According to financial data provider FnGuide, foreign investors bought a net 475.8 billion won ($407.3 million) worth of POSCO stocks on the Seoul bourse during the January-May period. This was the largest portion of foreign net buying, which came to about 3.39 trillion won in the period.Shares in the steelmak

June 11, 2016

High-yield bonds draw investor interest amid low rates

South Korean investors are piling into high-yield corporate bonds with relatively high risk in search of bigger returns as the country's interest rates are at rock bottom, sources said Friday.Trading of these so-called mezzanine bonds have recently been active as investors are drawn to debt that offers a higher rate of return, but is riskier because of its lower status in the capital structure.The trend comes as financially troubled companies, which find it difficult to float bonds through publi

June 10, 2016

DSME suspected of raising W10tr illegally

[THE INVESTOR] Prosecutors have found evidence that embattled Daewoo Shipbuilding & Marine Engineering illegally raised money amounting to 10 trillion won ($8.6 billion) through accounting fraud, according to local news reports on Thursday. The prosecutors have placed travel bans on two former chief executives Nam Sang-tae and Koh Jae-ho of the world’s second-largest shipbuilder. The prosecution’s special force for anticorruption had secured evidence after raiding 10 organizations on Wednesday i

June 9, 2016

Seoul shares marginally down on profit-taking

South Korean stocks closed 0.14 percent lower Thursday as individual investors opted to lock in gains from the previous day's increase despite earlier gains led by the central bank's surprise interest rate hike. The local currency inched up against the U.S. dollar. The benchmark Korea Composite Stock Price Index shed 2.91 points to finish at 2,024.17. Trading volume was moderate at 591.4 million shares worth 7.58 trillion won ($6.57 billion) with decliners far outpacing advancers 525 to 300.The

June 9, 2016

BOK slashes base rate to new historic low

[THE INVESTOR] The Bank of Korea on Thursday slashed the key interest rate to a new historic low in a surprise move that came one day after the government finalized measures to support corporate restructuring. The seven-day repurchase rate has been cut by 0.25 percentage point to 1.25 percent, the lowest on record. The BOK last reduced the borrowing cost in June 2015 amid the outbreak of the deadly Middle East respiratory syndrome virus here. A reduction was seen coming, but not this month. Near

June 9, 2016

Antitrust body to ease regulation on conglomerates

[THE INVESTOR] The nation’s fair trade authorities said Thursday it would ease a key regulation to ban excessive expansion of conglomerates by raising the asset ceiling for its conglomerate watch list for the first time in seven years.In an economy-related ministers meeting held in Seoul, the Fair Trade Commission said it would boost the minimum asset criteria to 10 trillion won ($8.65 billion) from 5 trillion won. Fair Trade Commission in Sejong City (Yonhap)Mobile messaging giant Kakao and bio

June 9, 2016

KOSPI rises to yearly high on foreign buying, Samsung rally

South Korean shares closed at their highest level of this year on Wednesday on the back of foreign buying, helped by market kingpin Samsung Electronics' rally on its robust outlook. The local currency rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index gained 15.45 points, or 0.77 percent, to 2,027.08, the highest closing level this year. Trade volume was moderate at 490 million shares worth 5.7 trillion won ($4.92 billion), with gainers outnumbering losers 411 to 395.Fo

June 8, 2016

Samsung shares continue uptrend on rosy outlook

Shares of Samsung Electronics Co. rose for the sixth consecutive session Wednesday as local analysts unleashed optimism on the top-cap company's earnings for the second quarter.Samsung closed up 0.57 percent at 1,406,000 won ($1,216.40) on South Korea's main bourse on the back of strong foreign buying, ending above the 1,400,000 won level for the first time in 13 months. At one point in morning trade, Samsung's stock price hit a fresh 52-week high of 1,419,000 won.The company's market value came

June 8, 2016

Korea to inject W12tr into policy banks

The Ministry of Strategy and Finance and the Bank of Korea will inject 12 trillion won ($10 billion) both directly and indirectly via a fund into policy banks to finance the restructuring of debt-laden shipping and shipbuilding companies.Finance Minister Yoo Il-ho said Wednesday that the government and the central bank have agreed to pursue restructuring through a mix of fiscal and monetary measures, adding that BOK will provide 10 trillion won as a loan to the Industrial Bank of Korea.With the

June 8, 2016

Prosecutors raid DSME offices over accounting fraud

Prosecutors raided debt-ridden Daewoo Shipbuilding & Marine Engineering’s head offices on Wednesday in a search for evidence related to accounting fraud to conceal massive losses partly caused by poor management. Some 150 investigators had marched into the country’s leading shipbuilders’ headquarters in central Seoul and its Okpo Shipyard on Geoje Island off the southern coast, according to the Supreme Prosecutors’ Office. The raids come as DSME’s audit committee had voluntarily submitted petiti

June 8, 2016

Korean economy needs to be rebalanced

Korea faces an increasing need to ensure a balance between exports and domestic demand, which is crucial for the sustainable growth of its economy, economists say.They note changes in global economic conditions make the need more urgent but government policymakers are not yet fully up to the task.The country’s outbound shipments fell for the 17th consecutive month in May, though the pace of decline decelerated from the preceding months.The National Assembly Budget Office said in a report release

June 8, 2016

Creditors set to OK Daewoo Shipbuilding's self-restructuring program

Creditors of Daewoo Shipbuilding & Marine Engineering Co. may approve the embattled shipbuilder's self-restructuring plan worth 5.2 trillion won ($4.47 billion) Wednesday, industry sources said Tuesday.The shipbuilder has been under pressure from its creditors, led by state-run Korea Development Bank, to come up with a stronger rehabilitation scheme to tide over a protracted slump in the global shipbuilding segment and mounting losses.Under the plan presented to the creditors, Daewoo Shipbuildin

June 7, 2016