[Market Now] Sajo Haepyo guarantees affiliate loans

Sajo Haepyo, a listed soybean company of Sajo Group, said Tuesday that it will guarantee loans worth 5.7 billion won ($5 million) to its affiliate Sajo Bio Feed borrowed from NH Bank.Sajo Haepyo has set aside some 6.9 billion won as guarantee fund in case Sajo Bio defaults on its loans, the company said in a regulatory filing. Sajo Haepyo has a 25 percent stake in Sajo Bio Feed, which produces livestock feeds. Sajo Industries, a seafood giant, is the biggest shareholder with a 20.9 percent in Sa

April 12, 2016

[Market Now] Homeplus, Kumho Petro Chemical added to debt watch list

Homeplus, Kumho Petro Chemical and Taeyoung have been newly included in a list of 39 Korean conglomerates with debt levels growing at a significant pace, according to the Financial Supervisory Service on Tuesday.Corporations that saw their debt increase more than 1.36 trillion won last year have been put on the financial regulator’s corporate debt watch list. The aggregate debt of the 39 groups stood at 300.7 trillion won last year, down 2.3 trillion won or 0.8 percent from 303 trillion won a ye

April 12, 2016

Foreign holdings of Korean bonds regionally diversified: analyst

Foreign investors’ holdings of Korean bonds have become more regionally diverse and long-term focused, an analyst said Tuesday.According to data by the Financial Supervisory Service, foreign investors held a total of 97.4 trillion won ($85.2 billion) worth Korean bonds as of March 31, a 600 billion won increase from a month ago.By region, Asia held 37.3 percent of Korean bonds, Europe, 35.5 percent, and the U.S., 14.6 percent.“Since foreign investment in Korean bonds has diversified in terms of

April 12, 2016

[Market Now] Korea’s tax revenue increases W11tr in first 2 months

The Ministry of Strategy and Finance said that the country’s tax revenue increased by 10.9 trillion won ($9.5 billion) in January-February from the same period last year.The ministry said in a report Tuesday that total tax revenue amounted to 42.7 trillion won in the first two months, despite growing economic uncertainties and slowdown.The report showed that its rate measuring actual tax collection in proportion to target revenue increased by more than 4 percentage points to 19.1 percent.It attr

April 12, 2016

Investors borrowing more to buy Korean shares

More investors borrowed money from brokers to bet on Korean shares, causing the country‘s stock purchases made on credit to rise to a seven-month high.As of April 8, outstanding margin loans reached 7.05 trillion won ($6.15 billion), according to data from the Korea Financial Investment Association on Tuesday.  Seoul share prices are displayed at the Korea Exchange. (Yonhap)The figure marks the first time since Aug. 24 last year that the amount surpassed the 7-trillion won mark. It was also up s

April 12, 2016

KEB Hana, Woori chosen as won clearing house in China

The Bank of Korea said Tuesday that it has appointed branches of KEB Hana Bank and Woori Bank in Shanghai, China, as clearing houses for won-yuan direct trading when the market opens. The envisioned currency market in Shanghai, scheduled to launch within the first half of this year, is Korea’s maiden step to allow offshore trading of its currency. China is Korea’s biggest trading partner, accounting for some 25 percent of its exports. Hana Financial Group (Yonhap)In Seoul, the won-yuan market op

April 12, 2016

[Market Now] Hong Kong’s Seven Star Works to issue new shares

Seven Star Works, a KOSDAQ-listed broadcasting equipment maker, said that it will issue new shares worth about 8 billion won ($7 million) to four individuals and an investment fund.The company, whose majority shareholder is Hong Kong-based Sun Seven Stars Hong Kong Cultural Development, plans to issue 606,057 new shares at 13,200 won per share. Acquirers of Seven Star Works’ new shares are required to hold onto the shares for at least a year.Seven Star Works said in its disclosure report that th

April 12, 2016

[Market Now] Lotte Capital extends loans to Lotte Chilsung’s BaekHak

BaekHak Beverage, a privately held bottle water company of Lotte Chilsung Beverage, said that it has borrowed 13 billion won ($11.3 million) from Lotte Capital.With an annual interest rate of 3 percent, the loan is due in April 2017. BaekHak said in a regulatory filing that the inter-affiliate loan is an extension of its previous loan from Lotte Capital.Lotte Chilsung Beverage, a soda giant of Lotte Group, has an 86.06 percent in BaekHak, while the Military Mutual Aid Association, a pension for

April 12, 2016

[Market Now] Dong-Ah Geological secures orders for Samsung C&T’s subway construction

Dong-Ah Geological Engineering, a listed tunnel construction company, has secured a contract to provide tunnel excavation services to Samsung C&T for the construction of the third phase of Seoul Subway Line No. 9.Dong-Ah will be using its shield tunnel boring machine method for the No. 9 subway tunnel construction under the contract worth about 10.7 billion won ($9.35 million), or about 4 percent of the company’s sales, according to a regulatory filing. The company is obligated to carry out the

April 12, 2016

Kakao to raise 250 bil. won in convertible bonds

Korea’s messaging app operator Kakao Corp. said it will raise 250 billion won ($219 million) in convertible bonds in a bid to pay back bridge loans taken earlier this year to fund an acquisition.In a public filing Monday, Kakao said the convertible bonds will come with a zero percent coupon rate maturing on April 14, 2021. The conversion price is set at 120,014 won per share and the conversion can be requested from April 14, 2017 to March 14, 2021, the company said.Earlier this month, Kakao borr

April 12, 2016

Seoul markets to close on election day

Korea’s stock, bonds and foreign currency markets will be closed on Wednesday, as the nation goes to polls to elect members of the parliament. Korea Exchange said the one-day closure affects all the exchanges it operates in Seoul, including those for stocks, bonds, exchange-traded funds, foreign exchanges-linked derivatives and commodities like petroleum, gold and emissions. Clearing of over-the-counter derivatives will also halt for the day. The markets will resume Thursday. By Lee Sun-young (m

April 12, 2016

[Market Now] Dongbu Securities acquires Hyundai Card bonds

Hyundai Card said Tuesday that Dongbu Securities acquired all of its bonds worth 40 billion won ($34.9 million).The credit card joint venture of Hyundai Motor, Korea’s largest automaker, and GE Capital will use the proceeds to finance its operations, according to a regulatory filing. Dongbu Securities (Yonhap)Hyundai and Kia Motors have a combined 48 percent stake in Hyundai Card, while IGE USA Investments, an affiliate of GE Capital, has a 43 percent stake.With an annual interest rate of 2 perc

April 12, 2016

[Market Now] Hyundai Wia raises W130b in bond issues

Hyundai Wia, a listed auto parts-maker of Hyundai Motor, said Tuesday that it has issued bonds worth 130 billion won ($114 million) in total to refinance its debt and pay for materials supplied from its partners.Korea Investment & Securities, KTB Investment, HMC Investment, Shinhan Investment and Hana Financial Investment acquired Hyundai Wia’s AA-graded bonds worth 100 billion won with a maturity period of April, 2021. Hyundai Wia said in its regulatory filing that it will use the proceeds of 1

April 12, 2016

[Market Now] NH Investment issues bonds to finance operations

NH Investment & Securities has issued bonds worth 350 billion won ($306 million) to finance its operations, according to a regulatory filing.Hana Financial Investment, Shinyoung Securities and HI Investment & Securities were among institutional investors that acquired NH bonds graded AA-plus. The maturity period of the bonds is in April 2019, with annual interest rate of 1.84 percent.NongHyup Financial Group has a 49 percent stake in NH Investment, which is the country’s second biggest brokerage

April 12, 2016

Seoul shares open higher despite losses in New York

South Korean share prices opened higher Tuesday despite some overnight losses in New York.The benchmark KOSPI rose 5.71 points, or 0.29 percent, to 1,976.08 in the first 15 minutes of trading. Traders monitor South Korea share prices at a local bank. (Yonhap)Market blue chips such as Samsung Electronics, Hyundai Motor and POSCO were trading higher in the early morning session. Overnight on Wall Street, the Dow Jones industrial average fell 20.55 points, or 0.12 percent, to 17,556.41 after U.S. c

April 12, 2016

Analysts upbeat on CGV’s China business

Outlook for CJ CGV, South Korea’s multiplex giant, remains upbeat with a larger contribution from overseas units to offset a local slump, securities firms said Monday.The cinema chain’s consolidated first-quarter operating profit will come to 17.5 billion won ($15.3 million), up 21 percent from a year earlier while its sales will increase 14 percent year-on-year to 292.7 billion won, Hyundai Investment & Securities analyst Lim Min-kyu projected.He attributed the growth to its Chinese subsidiary

April 11, 2016

[KOSDAQ Star] Momentum builds for ViroMed

This is the sixth in a series of articles analyzing the top 10 companies by market capitalization traded on the tech-heavy KOSDAQ market. --Ed.ViroMed, a biotech venture founded two decades ago on the Seoul National University campus, has only one drug selling on local shelves, but its presence on the KOSDAQ is nothing to sniff at.With a market capitalization of 2.15 trillion won ($1.9 billion), the company ranks sixth on the country’s tech-loaded secondary stock exchange, closely chasing CJ E&M

April 11, 2016

Korean stocks edge down on cautious sentiment

Korean stocks fell 0.1 percent Monday as investors stuck to a cautious stance amid lingering global uncertainties. The local currency rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) shed 1.68 points to finish at 1,970.37. Trade volume stood at 370 million shares worth 3.8 trillion won ($3.3 billion), with losers outnumbering gainers 434 to 360.Market watchers attributed the decline to a lack of fresh momentum and mixed market signals.Many expect the KOSPI to

April 11, 2016

Brokerage analysts urge independence of reports

Analysts at Korean brokerages called for independence of their research reports, following controversy over Hana Tour’s alleged abuse of power against an analyst at Kyobo Securities who wrote a negative report about the company.Similar controversies have arisen in the past, but it is the first time that analysts have taken direct public action.“Listed companies can express their criticism of research reports, given that every market participant has different opinions about the growth outlooks an

April 11, 2016

Regulators probe into Hyosung’s bond warrants

The Financial Supervisory Service, Korea’s financial regulatory agency, is currently probing into the financial records of derivatives issued by Hyosung Group in the late 1990s following calls for an investigation by a lawmaker during a National Assembly audit last year.“We are looking into the matter on Hyosung’s warrant-linked bonds, including past records of its public disclosures, which reported that it was going to cancel the derivatives,” said an FSS official.The probe came after Chung Woo

April 11, 2016