Mando bond issuance projected to earn W510b.

[THE INVESTOR] The demand projection for corporate bonds to be issued by Halla Group’s Mando Corp. reached 510 billion won ($433.2 million). The amount was five times more than the estimated issuance target, according to financial sources on June 15. The projection was made to review the demand for 100 billion won worth of 3-year corporate bonds.The Korean parts-maker Mando made headlines after it was reported it would partner with Tesla Motors to jointly develop key technologies for the automak

June 15, 2016

Pyongyang’s overseas trade drops for first time in 6 years

[THE INVESTOR] North Korea’s trade volume came in at $6.25 billion in 2015, dropping 18 percent compared to the previous year, South Korean data showed on June 15. According to the data released by the Korea Trade-Investment Promotion Agency, both exports and imports recorded a year-on-year drop to bring down Pyongyang’s overall trade volume.The data showed that exports dropped 15 percent to come in at $2.7 billion, imports fell 20 percent to come in at $3.55 billion. With the changes, Pyongyang

June 15, 2016

Tax agency to crack down on 36 tax evaders

[THE INVESTOR] South Korea will start an intensive investigation targeting dozens of individual and corporate offshore tax evaders who did not voluntarily pay taxes, the National Tax Services said on June 15. The NTS, the country’s tax authority, said that some 36 people are subject to the probe, including three or four suspects who hid assets in tax havens and were listed in the leaked files known as the Panama Papers. The crackdown comes as a six-month grace period offered by the tax agency en

June 15, 2016

State auditor uncovers gross malpractice of KDB officials

[THE INVESTOR] State-run Korea Development Bank officials used debtor companies’ funds for housing, vehicles and entertainment, audit results showed on June 15.According to the Board of Audit and Inspection, KBD officials dispatched to oversee management of companies undergoing restructuring used the companies’ funds for unnecessary conveniences and entertainment.The audit showed that 16 KDB staff received housing from seven companies they were sent to oversee, while 36 bank officials used vehic

June 15, 2016

Seoul stocks decline on 5th straight day

[THE INVESTOR] South Korean stocks fell for five straight sessions on June 15 as sentiment was down on the possibility over Britain leaving the European Union. Investors were also sitting on the sidelines ahead of the Federal Reserve‘s rate decision. The Korean won fell slightly against the U.S. dollar.The benchmark Korea Composite Stock Price Index lost 3.2 points, or 0.16 percent, to close at 1,968.83. Trade volume was at 371.5 million shares worth 4.49 trillion won ($3.82 billion), with loser

June 15, 2016

EXIM Bank poured 1.8 trillion won into ailing ship maker

[THE INVESTOR] The Export-Import Bank of Korea poured 1.8 trillion won ($1.5 billion) into an ailing shipbuilder for six years without keeping proper tabs on it, the Board of Audit and Inspection said on June 15. According to the BAI, the EXIM Bank neglected its duty in monitoring Sungdong Shipbuilding and Marine Engineering Co., 70.71 percent of whose shares are held by the bank. The shipbuilder has been under creditor-led restructuring since 2011. In laying out the recovery plans, the shipbuil

June 15, 2016

Doubt over listing of KEPCO’s power generation units rising

[THE INVESTOR] The stock-listing of six power generation affiliates of state-run Korea Electric Power Co. that the government proposed Tuesday may face difficulties mainly due to insufficient investor interest, market watchers said. “Despite the government’s expected strong push in the latter part of this year, partial public stock offering of a state-run company is likely to face little interest from investors,” said Yoon Hee-do, a stock market analyst from Korea Investment & Securities. The ta

June 15, 2016

Korean stocks not likely to gain developed status in long run

[THE INVESTOR] South Korea is not likely to get its stock market included in the Morgan Stanley Capital International’s Developed Markets in the long run, as the financial authority remains unchanged over its currency exchange regulations, financial regulators and analysts said.The MSCI announced Tuesday in New York that the global index provider will not include Korea on its “review list” for potential reclassification of its stock market to advanced status at least until after 2017.“The recent

June 15, 2016

KDB’s neglect fueled Daewoo Shipbuilding crisis

[THE INVESTOR] Daewoo Shipbuilding and Marine Engineering’s current difficulties were fueled by neglect by its biggest shareholder Korea Development Bank, the Board of Audit and Inspection announced on June 15. According to the BAI, the state-run bank neglected its duty in monitoring the shipbuilder’s accounts and financial stability. The KDB holds 49.7 percent of DSME, making it the biggest shareholder as well as the shipbuilder’s main creditor.  Daewoo Shipbuilding and Marine Engineering.Accor

June 15, 2016