Bond funds favored over stock funds for stable returns

Investors have pumped in more cash in bond funds than stock funds so far this year as they seek more stable returns, a fund rating and consulting company said Friday. Domestic bond-focused funds have seen a cash inflow of 1.37 trillion won ($1.2 billion) this year through April 12, KG Zeroin said in a statement. In contrast, investors withdrew a total of 465 billion won from their stock funds. Cash outflows from the exchange traded funds were not included in the tally, it said. Investors are inc

April 15, 2016

[Market Now] Bond yields rise as QE expectations ebb

Yields on Korea’s government bonds went up in Seoul on Thursday, as the ruling camp’s election defeat sapped market expectations for the Bank of Korea’s bond purchase program. The yield for the three-year government bond rose 3.7 basis points to 1.52 percent, the highest this month, while the five-year note’s yield closed 4.2 basis points higher at 1.607 percent. The yield on 10-year debt rose 4.5 basis points to 1.844 percent. President Park Geun-hye’s Saenuri Party lost its majority status in

April 14, 2016

Korean shares jump 1.7% to close above 2,000-point level

Korean shares rallied 1.74 percent Thursday amid growing expectations of a recovery in the Chinese economy. The local currency sharply fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) jumped 34.53 points to 2,015.85. Trade volume stood at 456 million shares worth 6.3 trillion won ($5.4 billion), with gainers outnumbering losers 472 to 337.The KOSPI's upswing came a day after China released strong trade data. Its exports soared 11.5 percent on-year in March.The

April 14, 2016

Changed political landscape to have limited effect on stock market: analysts

The changed political landscape in the wake of Wednesday’s general election will have a limited impact on the Korean stock market, analysts here said Thursday.The benchmark Korea Composite Stock Price Index rose 1.34 percent to trade at 2007.77 as of 2 p.m. Thursday on China’s better-than-expected March trade data and gains on global stocks the previous day. The tech-heavy KOSDAQ inched down 0.24 percent to mark 691.78 at the time. KOSPI jumps 1.75 percent to close at 2015.93 Thursday. Yonhap Ne

April 14, 2016

[Market Now] Webzen shares up on board chairman’s election win

Shares in Webzen, a local online game developer, were trading higher on Thursday morning on the victory of its former CEO and current board chairman in Wednesday’s parliamentary election. Kim Byung-kwan, a veteran game entrepreneur who ran Webzen as CEO until June 2012, won a parliamentary seat on the ticket of the main opposition party, becoming the first game-industry figure ever to enter the 300-member National Assembly. During his campaign, Kim said, if elected, he would push to ease regulat

April 14, 2016

[Market Now] AhnLab shares up on founder’s election victory

Shares in AhnLab, a security software provider, rallied on the Seoul bourse on Thursday morning, buoyed by a boost in political fortunes of its founder Ahn Cheol-soo in Wednesday’s elections. As of 10:35 a.m., the shares were trading at 74,100 won, 5.41 percent higher than the previous close.  Ahn Cheol-soo (Yonhap)Ahn, a doctor, venture entrepreneur-turned politician, is the largest shareholder in the firm, with an 18.57 percent stake. His People’s Party has emerged as the third-largest negotia

April 14, 2016

[Market Now] Pulmuone denies sale of treasury stocks

Korea’s top tofu maker Pulmuone on Thursday denied a local report that it was preparing to unload its treasury stocks in order to secure cash. “We’re not preparing any sale of treasury stocks. The report is groundless,” the Seoul-based firm said in a filing. Pulmuone holds 2.23 percent of its total outstanding shares on Korea’s main stock exchange KOSPI. They were worth about 15 billion won as of the previous trading day’s close. In 2015, the company reported a 40.6 percent drop in its consolida

April 14, 2016

KOSPI opens higher on strong Chinese data

South Korean share prices started higher Thursday on the back of China’s strong trade data and gains on Wall Street.The benchmark Korea Composite Stock Price Index rose 23.76 points, or 1.20 percent, to 2,005.08 in the first 15 minutes of trading.  Traders monitor Seoul share prices at a local bank. (Yonhap)Market heavyweights such as Samsung Electronics, Hyundai Motor and POSCO were all higher in early morning trading. Analysts said investor sentiment rose after China said on Wednesday that its

April 14, 2016

Hyundai Securities’ hefty price tag reflects KB’s hunger for growth

When the price tag of a controlling stake in Hyundai Securities was unveiled late Tuesday, it surprised many in local financial circles. The 1.25 trillion won ($1.09 billion) KB Financial Group has agreed to pay is nearly four times the current market value of the stake -- 22.56 percent of the country’s fourth-largest brokerage house -- and almost twice what it initially expected to fetch.  KB Financial Group chairman Yoon Jong-kyoo“That sounds pretty expensive for less than a quarter of the com

April 13, 2016

Corporate tax increase sparks debate

Korea’s corporate tax revenue is projected to surpass the government-set target of 46 trillion won ($40.2 billion) this year, breaking a previous record of 45.9 trillion won reached in 2012, according to tax authorities here. Taxes collected from companies decreased to 43.9 trillion won in 2013 and 42.7 trillion won in 2014 before rising back to 45 trillion won last year.This projected increase in corporate tax revenue comes as local companies have seen their operating profits improving due to s

April 13, 2016

[Market Now] Dasan Networks acquires Zhone Technologies

Dasan NetworksDasan Networks said that it will acquire Zhone Technologies through share swaps by June this year.Dasan is a KOSDAQ-listed telecommunications equipment maker, while Zhone is a NASDAQ-listed telecommunications equipment maker. Under the deal, Dasan Networks will acquire new shares of Zhone, or a 58 percent stake, for 89 billion won ($78 million). Zhone will merge with Dasan Networks’ U.S. subsidiary Dasan Network Solutions, and own a 42 percent stake in Dasan’s U.S. company, accordi

April 13, 2016

SC Bank Korea's high-interest savings products draw interest

Standard Chartered Bank Korea’s savings products are getting renewed interest from savers seeking higher return on their money in this era of abysmal interest rates. The U.K. banking group’s Korean unit offers up to 3.1 percent of interest on holders of its My Wallet Account, whereas similar savings account products offered by local peers carry interest of around 2 percent. SC Bank Korea CEO Park Jong-bokThe applicable rate varies, depending on deposit balance and whether predefined conditions a

April 13, 2016

Korea’s fundamentals remain strong: finance minister

Finance Minister Yoo Il-ho said that South Korea’s national debt in proportion to its gross domestic product is relatively low compared with other major economies.  Finance Minister Yoo Il-ho (Yonhap)Its largest trading partner China, which is undergoing structural changes to focus on spurring domestic consumption rather than exports, will have a positive effect on Asia’s fourth-largest economy. Korea’s benchmark interest rate of 1.5 percent is also higher than most other economies, he noted.“Ko

April 13, 2016

KB to buy Hyundai Securities stake for W1.25tr

KB Financial Group is buying 22.6 percent of Hyundai Securities for 1.25 trillion won ($1.09 billion), nearly four times the stake’s current market value.In a regulatory filing in Seoul on late Tuesday afternoon, KB said it will buy a 22.56 percent stake, or some 53 million shares, in Hyundai Group’s securities arm from Hyundai Merchant Marine and other shareholders. The stock transfer is due to take place May 31.KB is to start due diligence on the brokerage, which ranks fourth in the industry w

April 13, 2016

IMF slashes Korea’s growth outlook to 2.7%

 The International Monetary Fund said Tuesday that Korea’s economic growth in 2016 would be 0.2 percentage point lower than it had previously forecast, as waning global trade continues to drag down the export-driven economy. It now expects Korea’s economy to expand 2.7 percent this year, down from 2.9 percent projected in January and 3.2 percent in October last year. The revised outlook is lower than the Korean government’s prediction of 3.1 percent and Bank of Korea’s forecast of 3 percent, but

April 13, 2016

Tax revenue grows on rising income, consumption

Korea’s tax revenue grew significantly from a year earlier in the first two months of the year, partly due to an increase in income and consumer spending, a government report showed Tuesday.National tax revenue came to some 42.7 trillion won ($37.2 billion) in the January-February period, up 10.9 trillion won from the same period last year, according to the monthly financial report published by the Ministry of Strategy and Finance.The two-month tally represents 19.1 percent of the government’s a

April 12, 2016

Korean shares up 0.6% bucking Wall Street losses

Korean shares climbed 0.56 percent Tuesday, boosted by gains in major industries, despite the overnight slide on Wall Street. The local currency also rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) gained 10.95 points to 1,981.32. Trade volume stood at 372 million shares worth 3.8 trillion won ($3.3 billion), with gainers outnumbering losers 445 to 367. KOSPI (Bloomberg)Tech firms traded mixed, with top market player Samsung Electronics adding 0.71 percent to

April 12, 2016

[Market Now] National Pension Service increases stake in POSCO

POSCO said Tuesday that its biggest shareholder -- the National Pension Service -- has increased its ownership in the steel giant, from 10.04 percent to 10.22 percent.In 2015, the NPS, the country’s pension manager, owned a 9.04 percent stake in POSCO, according to an audit filing.By Park Hyong-ki (hkp@heraldcorp.com)

April 12, 2016

Korean firms' sales growth fall sharply in recent years

Sixteen Korean companies made it on the list of the world’s top 1,000 companies by market capitalization as of the end of March this year, led by Samsung Electronics in No. 28 spot, data showed Tuesday. Samsung, which is by far Korea’s largest public company with a market value of 214.2 trillion won ($187 billion), climbed 17 notches in the global ranking from its 2010 standing, while cosmetics-maker Amore Pacific made an impressive debut at No. 571. The list is compiled by Seoul-based Korea Eco

April 12, 2016

[Market Now] Korea to see biggest IPOs this year: KRX

The Korean stock market will see its biggest initial public offerings this year, with net stock floatations to exceed the previous record of 8.7 trillion won ($7.6 billion) in 2010.In a meeting with corporate executives in Seoul on Tuesday, Choi Kyung-soo, chairman and CEO of the Korea Exchange, said that about 20 companies are expected to launch IPOs in the Korean stock market.Local companies planning stock offerings include Hotel Lotte and Doosan Bobcat, he noted.Last year, 16 companies listed

April 12, 2016