FSC to approve Bank of China’s participation in yuan-based derivatives market

[THE INVESTOR] The Bank of China, one of China’s four major state-owned banks, has decided to participate in yuan futures market launched by the Korea Exchange last year, sources said June 20. Financial Services Commission, Korea’s top financial regulator, is expected to give a preliminary approval to the Seoul branch of BOC soon as the bank applied for operation license to trade yuan-based derivatives products here in March. Once the Chinese bank receives the green light, the Korean authority w

June 20, 2016

Antigraft act will cause US$10b loss per year: think tank

[THE INVESTOR] The new anticorruption act set to take effect in September will cost local businesses 11.6 trillion won (US$9.96 billion) on an annual basis, a think tank claimed.Commonly known as the Kim Young-ran act, it will place a ceiling on the value of gifts -- cash and goods -- and meals individuals in selected professions can have in their professional capacities. The government announced its enforcement in May. According to a report compiled by the Korea Economic Research Institute, if

June 20, 2016

Seoul shares open higher on eased Brexit fears

[THE INVESTOR] South Korean shares opened higher on June 20 due to eased Brexit concerns following the murder of a British politician who was in favor of remaining in the European Union.Polls conducted after her murder last week show that more citizens now favor staying in the EU rather than leaving, a contrast from earlier. The benchmark Korea Composite Stock Price Index soared 18.15 points, or 0.87 percent, to 1,970.38 during the first 15 minutes of trading. Most large cap stocks traded higher

June 20, 2016

Tax-to-GDP ratio rises on increased taxpayers

[THE INVESTOR] The nation’s ratio of income tax revenue to gross domestic product has been rising at a fast pace in recent years largely due to the increasing number of taxpayers, data showed on June 20. The country’s revenue from earned income and global income tax came to 36.8 trillion won (US$31.4 billion) in 2014, accounting for 2.48 percent of the overall tax revenue of 1,485.1 trillion won, according to the report based on data from the Finance Ministry and the National Tax Service.Earned

June 20, 2016

Expectations for extra budget grow

[THE INVESTOR] With the government seen leaning toward compiling a supplementary budget, attention is now being drawn to the size of the possible fiscal boost. Experts said the government has room for a “sizable” extra budget of more than 10 trillion won, given that this year’s tax collection was running 23 percent higher than the year before.  “The government will actively reinforce fiscal measures in the second half of the year,” Finance Minister Yoo Il-ho said Friday, predicting a tougher tim

June 19, 2016

Korean banks’ short-term foreign liabilities exceed W40tr

[THE INVESTOR] The net short-term foreign liabilities of major South Korean lenders have exceeded 40 trillion won (US$34.09 billion), raising concerns about the banks’ foreign currency soundness. According to analyst estimates, the combined foreign liabilities of the country’s six major banks that will mature in less than two years stood at 37.11 trillion won as of last week. The total owed by all local lenders currently stands well above 40 trillion won, considering the additional 2.9 trillion

June 19, 2016