Deutsche Seoul becomes preliminary primary dealer of gov’t bonds

[THE INVESTOR] German lender Deutsche Bank’s Seoul branch has been selected to join the list of preliminary primary dealers, giving the branch authority to underwrite government bonds starting July 1, said the Ministry of Strategy and Finance on June 27. The new addition will increase the number of second-tier bond dealers in South Korea to four. The other three include the Seoul branches of BNP Paribas and Yuanta Securities and Korean insurance company Meritz. There will continue to be 19 first

June 28, 2016

[ANALYST REPORT] Amid age of uncertainty, value of government bonds to rise

With the UK voting to leave the EU, uncertainties are predicted to extend for the time being. As such, we believe that the global monetary easing trend will strengthen. Under the worst-case scenario, the Fed may even consider cutting the FF rate. Considering that the possibility of an additional domestic rate cut has heightened further, we suggest expanding duration of KTBs upon yield rises.▶Global bond market outlookDeveloped markets: As the UK has voted to leave the EU, we believe that it will

June 28, 2016

Coway seen on stable growth track: analyst

[THE INVESTOR] Samsung Securities maintained its buy rating and price target of 135,000 won (US$114.31) for Coway, a Korean water purifier maker, recommending the stock as an investment alternative with stable returns amid growing uncertainty in the market. “Coway has been enjoying stable growth based on its overwhelming market dominance and unique business model,” said Park Eun-kyung, an analyst at Samsung Securities. She expects Coway’s second-quarter sales to rise 15 percent on-year to 637.8

June 28, 2016

Korea needs up to 26.6 trillion won supplementary budget: think-tank

[THE INVESTOR] Korea will need as much as 26.6 trillion won (US$22.5 billion) in supplementary budget to weather negative elements from external and internal economic conditions, a think-tank said on June 26. In a report published on June 26, Hyundai Research Institute said that Korea needs between 11.5 trillion won and 26.6 trillion won in supplementary budget in order to offset negative factors from home and abroad. According to the report, Korea has about 113 trillion won remaining in this ye

June 28, 2016