Deposits at brokerages soar amid low rates

[THE INVESTOR] Customer deposits at Korean securities companies have surged to a new high, data showed on June 21, as investors seek high-yielding vehicles amid record-low interest rates. On June 9, the Bank of Korea slashed its key interest rate by a quarter-percentage point to 1.25 percent in an apparent bid to cushion any fallout from the ongoing corporate restructuring drive and bolster the sputtering economy.It was the first rate cut in 12 months.According to data by the Korea Exchange and

June 21, 2016

BOK collects 260 million dormant coins

[THE INVESTOR] The Bank of Korea said on June 21 it has collected more than 260 million dormant coins to turn them back into circulation. The central bank started the recollection campaign in May and people turned in some 267 million coins, worth 36.7 billion won (US$31.64 million), to convert them into banknotes. The result marks a 1.9 percent increase in the number of reclaimed coins from last year’s campaign, and a 1.4 percent rise in their combined value. BOK is making a big push to turn the

June 21, 2016

Neowiz employee fined for insider trading in Japan

[THE INVESTOR] Japanese financial authorities have uncovered insider trading concerning Korean games maker Neowiz Games’ Japanese subsidiary, local news reported on June 21. According to reports, an employee became aware that the company was planning to buy up shares of its Japanese unit Game On. Having gained the information, the employee then traded Game On shares after the plans were made public in 2011.At the time, Neowiz Games acquired Game On shares worth 2 billion yen (US$19 million) to r

June 21, 2016

Korea scraps southeast airport project

[THE INVESTOR] The existing Gimhae Airport near Busan will be expanded instead of building a new airport. The government had reviewed plans to build a new airport in the region, with Miryang and Busan’s Gadeokdo Island thought to be the most likely sites. With the project estimated to cost as much as 10 trillion won (US$ 8.6 billion), the project has been at the center of heated debate and controversy, with critics saying the new airport could fail. By Choi He-suk (cheesuk@heraldcorp.com)

June 21, 2016

Korean dealers kick off direct sale of KOSPI 200 futures to US investors

[THE INVESTOR] Korean securities firms started to trade Korea Exchange’s flagship KOSPI 200 futures directly with US customers, KRX said on June 21.KRX, the country’s bourse operator, said it has cleared hurdles that had undermined the sales of Korean derivative products in the US by receiving approvals from two US financial regulators. “The sales activity related to derivative products is expected to gain momentum in the US,” said Yoo Hee-wook, director of Derivative Product Marketing division.

June 21, 2016