S. Korea’s growth rate to drop further in 2016, 2017: think tank

[THE INVESTOR] South Korea’s economic growth rate will come in at 2.5 percent this year, at drop further in 2017, a think tank projected on July 12. In its second half outlook report, the LG Economic Research Institute projected a growth of 2.1 percent for the final stretch of the year, bringing the annual average to 2.5 percent. For 2017, LGERI projected a growth rate of 2.3 percent. The government’s economic growth rate projection for 2016 is 2.8 percent. The report forecast that dropping expo

July 12, 2016

FM says S. Korea’s growth rate will drop more without supplementary budget

[THE INVESTOR] South Korea’s economic growth rate will drop to about 2.5 percent without supplementary budget, Finance Minister Yoo Il-ho said on July 12.Speaking to the parliamentary Special Committee on Budget and Accounts, Yoo, who doubles as deputy prime minister for economic affairs, said that if the government is not granted the supplementary budget, the country’s growth rate will hover around 2.5 percent.Finance Minister Yoo Il-hoHe said that the ministry will submit the supplementary bud

July 12, 2016

Korean gov’t tax revenue rises W19tr in first 5 months

[THE INVESTOR] South Korean government’s tax revenues for the first five months of the year has increased by 19 trillion won (US$ 16.50 billion) from a year ago, boosted by improvements in consumer spending and the property market. According to data released by the Minister of Strategy and Finance, the government collected 112.7 trillion won in taxes during the first five months of the year. In comparison, the figure for the same period last year was 93.7 trillion won. The Finance Ministry said

July 12, 2016

Bond specialists expect no change in Korea's base rate

[THE INVESTOR] South Korean bond market experts expect the Bank of Korea to keep the benchmark rate unchanged this month, a survey showed on July 12. A survey conducted by the Korea Financial Investment Association showed that 91.2 percent of bond market specialists expect the 1.25 percent rate to be unchanged at the upcoming Monetary Policy Committee meeting.The committee is set to convene on July 14. BOK governor Lee Ju-yeolThe association said that the central bank is likely to keep the rate

July 12, 2016

[EQUITIES] Shinhan Investment forecasts LG Life Sciences’ Q2 earnings to nearly double

[THE INVESTOR] Shinhan Investment on July 12 said it expects LG Life Sciences to post a 99.4 percent increase on-year in its second-quarter operating profit to reach 6.9 billion won (US$ 5.99 million).The projections are higher than the market consensus of 5.9 billion won.Shinhan said robust sales of both existing and new products will be the driving factors. Quarterly sales are consequently expected to rise 15.4 percent to reach 119.6 billion won in line with analysts’ forecasts. By Kim Ji-hyun

July 12, 2016

[EQUITIES] Yuanta Securities forecasts Kolon Industries’ earnings to double in 2016

[THE INVESTOR] Yuanta Securities forecast that industrial materials maker Kolon Industries’ earnings would double this year on eased legal woes. The brokerage said this year’s operating profit would reach 336 billion won (US$ 291.81 million), up from the 168.8 billion posted in 2014. “Kolon Industries had seen its corporate value deteriorate from 2012 to 2015 due to a lengthy legal battle with US-based Dupon, but the situation is now over,” the report said. Kolon settled the case in May 2015. Ko

July 12, 2016

[EQUITIES] HI Investment & Securities forecasts 17.1% rise in Hyundai Glovis’ Q2 earnings

[THE INVESTOR] HI Investment & Securities forecast on July 12 that Hyundai Glovis will post a 17.1 percent on-year increase in its second-quarter operating profit to reach 185.8 billion won (US$ 161.36 million). “Most divisions, with the exception of the pure car carrier business, are expected to achieve external growth, especially on the back of stabilizing raw material prices,” the brokerage said in a report. It added that Hyundai Glovis shares are undervalued considering its 10.3 price-earnin

July 12, 2016