Seoul stocks down 0.1%on possible U.S. rate hike

South Korean stocks closed lower on Monday as investors took to the sidelines over the growing possibility of a rate hike in the United States in the near future.The Korean won dropped against the U.S. dollar.The benchmark Korea Composite Stock Price Index shed 2.04 points, or 0.1 percent, to close at 1,967.13. Trade volume was moderate at 541 million shares worth 4.53 trillion won ($3.89 billion), with losers outpacing gainers 489 to 315. The local stock market got off to a weak start after U.S

May 30, 2016

Gov't to lift price ceiling on promotional giveaways

The South Korean antitrust watchdog on Monday said it will lift the price ceiling on promotional giveaways, offered by companies to attract more customers, as part of its deregulation drive.Under the current Fair Trade Commission guidelines, a business is not allowed to provide free gifts worth 20 million won ($16,780) or more to those who buy their goods. The price restriction was adopted in 1982 in order to keep customers from overspending.Leading tire maker Hankook Tire Co. was ordered to can

May 30, 2016

Korea Eximbank‘s financial health worsens

The Export-Import Bank of Korea saw its financial health worsen in the first quarter this year because of its heavy exposure to troubled shipbuilders, the financial watchdog said Monday. The capital adequacy ratio of the state-run export agency stood at 9.89 percent as of end-March, dropping below 10 percent-level again in six months.  Eximbank headquarters in Seoul (Yonhap)“As the debt restructuring of shipbuilding and shipping industries began in earnest, Korea Eximbank set aside capital and t

May 30, 2016

Korea to face volatility on MSCI inclusion of China shares

The second possible inclusion of U.S.-listed Chinese blue chips, including Alibaba and Baidu, into the Morgan Stanley Capital International’s Emerging Markets index on May 31 is expected to trigger capital outflows from Korea’s stock market, analysts warned.With increasing exposure to Chinese tech and consumer heavyweights on the $3.5 trillion global index, institutional investors such as pension funds are bound to realign their equity portfolios to growth stocks such as those from China, the wo

May 30, 2016

Big progress in HMM's charter fee talks: creditor

Heavily indebted shipper Hyundai Merchant Marine has made meaningful progress in its last-ditch negotiations with international ship owners to cut the leasing rates for its chartered ships, its leading creditor said Monday.“Hyundai Merchant Marine has made remarkable progress in its negotiations with overseas ship owners over charter fee readjustment negotiations,” its main creditor Korea Development Bank said in a statement.“They are expected to reach an agreement in the next few days,” it said

May 30, 2016

NH Bank offers customized financial consulting to farmers

Established in 2005, NongHyup Bank’s agriculture financial consulting service has provided assistance to farmers nationwide in analyzing their financial statements to help them effectively manage their income and cash flow.The consulting unit of NH Bank offers 3,226 comprehensive financial services, and has handled more than 3,650 cases involving asset management and consulting. NH Bank’s consultant provides financial consulting to a farmer. (NH Bank)This year, it has set a target of 3,500 compr

May 30, 2016

Bank lending rates on household loans decline in April

Bank lending rates on new household loans dropped from a month earlier in April, while interest paid on new deposits remained unchanged, central bank data showed Monday.The average interest rate on fresh household loans extended by local banks came to 3.17 percent last month, down 0.07 percentage points from the previous month, according to the Bank of Korea.The drop followed two consecutive months of increase and came ahead of what many believe to be an imminent U.S. rate hike in June that coul

May 30, 2016

Employment policy worsens job market polarization

President Park Geun-hye’s administration has put top priority on increasing employment. In June 2013, it unveiled a roadmap to boost the country’s employment rate gradually to 70 percent by 2017.Finance Minister Yoo Il-ho, who also serves as deputy prime minister for economic affairs, last week acknowledged the goal might be unachievable.“To be candid, (I) think it may be a little difficult to accomplish the employment rate of 70 percent,” said Yoo during a lecture to a group of regional busines

May 30, 2016

Negotiations still ongoing for Kim’s Club sales: spokesman

Korea’s mid-tier business group E-Land Group’s negotiations to sell retail chain Kim’s Club to U.S. private equity giant KKR are still ongoing, the company’s spokesman said Monday.Hwang Woo-il, spokesperson of E-Land Group, denied a Yonhap News Agency report that said the group’s chief Park Sung-soo at a boardroom meeting ordered company officials to thoroughly reconsider the sales of Kim’s Club and listing of its operator E-Land Retail.“The news report is completely groundless. The deal is stil

May 30, 2016

Mirae Asset’s ETFs more than double over five years

The exchange traded fund assets held by Mirae Asset Global Investments have doubled over the past five years thanks to its diversified product portfolio, the company said Monday. “ETFs are typically designed to track stock and bond indices, but Mirae Asset Global Investments has boosted the portion of actively managed products for investors seeking higher returns,” the company’s official said. As of end-April, the company’s global ETF assets under management came to $11.1 billion, up 148 percent

May 30, 2016

Korea, France to bolster cooperation on Fintech

Aiming to become a hub of Asia's financial technology (Fintech) sector, South Korea agreed Monday to join hands with France.The two sides signed a memorandum of understanding on sharing related information and supporting their Fintech firms on each other's soil.The deal between South Korea's Fintech Center and the French Tech Hub Seoul was reached on the sidelines of a joint Fintech seminar to commemorate the 130th anniversary of the two nations forging formal diplomatic relations."When South Ko

May 30, 2016

Accounting firms in hot seat over ethics, incompetence

Korea’s major accounting firms are in the hot seat over their tainted code of ethics and auditing incompetency.Public distrust toward local accounting firms increased when the news broke Friday that the head of the nation’s top accounting firm is to face prosecutors’ investigation on charges he leaked insider information to help ex-chief of Hanjin Shipping Choi Eun-yeong engage in illegal stock trading.Ahn Kyung-tae, chairman and CEO of Samil PricewaterhouseCoopers, will be probed for allegedly

May 29, 2016

[Graphic News] Banks lose share of household loans

Banks share of Korea’s household loan market has fallen to the lowest-ever level as stricter screening regulations have prompted more people to turn to nonbanking lenders, Bank of Korea data showed Saturday. The central bank said that private sector debt, excluding credit card spending, tallied at 569.3 trillion won ($482.5 billion) at end-March, and loans by local banks accounted for 49.1 percent of the total. It is the lowest since the fourth quarter of 2002, when the central bank first releas

May 29, 2016

Woori Bank to take over Philippine bank

 Woori Bank, South Korea's second-biggest bank by assets, said Sunday it has won final approval to take over a Philippine-based bank, in line with its efforts to tap deeper into overseas markets.   The South Korean bank said it has won a nod from the Central Bank of the Philippines to purchase a 51 percent stake in the Wealth Development Bank. Woori Bank said it plans to complete the procedures in the first half of 2016.   Established in 2002, the Wealth Development Bank boasts US$170 million in

May 29, 2016

Top nine shipyards sit on over 100 trillion won of debt

The combined debt owed by Korea’s top nine shipbuilders exceeded 100 trillion won ($84.7 billion) in 2015, data showed Sunday, adding to concerns about the industry. The companies, many of which face government-led restructuring programs, owed lenders a combined 102.6 trillion won, up 15 percent from 89.1 trillion won in 2012, according to data compiled by market researcher Chaebul.com. “The shipbuilding industry’s crisis has been deepened as the government, the industry and the creditors have m

May 29, 2016

Korea’s OECD growth ranking drops to 12th

South Korea’s annual economic growth fell out of the Organization for Economic Cooperation and Development top 10 for the first time in nine years in 2015.Asia’s fourth-largest economy grew 2.6 percent last year, ranking 12th, behind Eastern European economies including the Czech Republic, Hungary and Poland, according to the OECD. The Czech Republic grew 4.2 percent last year, while Hungary 2.9 percent and Poland 3.6 percent. The country’s growth was also lower than that of small economies such

May 29, 2016

More S. Korean firms opt for stock splits

A growing number of listed South Korean firms have split their stocks in a bid to boost turnover and attract individual investors, the main bourse operator said Saturday. A total of 27 companies listed on the KOSPI and KOSDAQ markets have reduced the face value of their stocks this year, with seven more expected to follow suit in the third quarter, the Korea Exchange (KRX) said. Among them are Lotte Confectionery Co., the food unit of retail giant Lotte; Crown Confectionery Co.; and Doosan Heavy

May 28, 2016

Household debt ratio by local banks hits bottom

The ratio of South Korea’s household debt borrowed by local banks dipped to the lowest-ever level as stricter screening regulations prompted more people to take out loans from nonbanking lenders, data showed Saturday. The private sector debt, excluding credit card spending, tallied at 569.3 trillion won ($482.5 billion) at end-March, and loans by local banks accounted for 49.1 percent of the total, the Bank of Korea (BOK) said. It is the lowest since the fourth quarter of 2002 when the central b

May 28, 2016

Shares expected to move in tight range next week

South Korean stocks will likely remain in a tight range next week on lingering uncertainties over the U.S. Federal Reserve’s rate decision and Britain’s possible exit from the eurozone, analysts said Saturday. The benchmark Korea Composite Stock Price Index (KOSPI) closed at 1,967.17 on Friday, up 1 percent from a week earlier. The index dipped to a three-month low on Tuesday, but bounced back the next day as securities firms rallied on expectations of extending stock trading hours by 30 minutes

May 28, 2016

Steel firms seek preemptive restructuring

In light of shipping and shipbuilding companies that are being swept up by debt after years of oversupply, Korea’s steel firms are seeking preemptive steps not to succumb to the same fate. Industry watchers say the steel makers will likely hasten restructuring moves after summer when a new law that eases regulations on small mergers, splits and asset sales takes effect. The act, dubbed the “one shot law,” would clear regulatory hurdles associated with tax codes, commercial code and fair trade la

May 27, 2016