[FEATURE] Money doesn’t come easy

[THE INVESTOR] There is a saying, “Money does not grow on trees.” One has to work really hard to earn it.But making an honest buck in this age of low interest rates and low growth has become harder than ever.It is not as if Koreans do not work hard. In fact, Koreans work the longest hours after Mexicans among member countries of the Organization for Economic Cooperation and Development. Koreans worked 2,124 hours in 2014, according to the latest data. Working long hours does not necessarily mean

June 18, 2016

South Korean share prices rebound on eased Brexit woes

[THE INVESTOR] South Korean stocks snapped a six-day fall to close higher on June 17 on eased concerns over a British exit from the European Union. However, the rebound was still shaky amid lingering uncertainties in the global economy. The Korean won fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index edged up 1.41 points, or 0.07 percent, to close at 1,953.4. Trade volume was at 478.81 million shares worth 4.42 trillion won (US$3.78 billion), with winners outnumbering

June 17, 2016

Stocks, bonds offer investment options amid low interest rates

[THE INVESTOR] With the central bank slashing its benchmark interest rate to a historic low of 1.25 percent, putting money in bank accounts will not increase people’s income, as bank deposit rates will drop in line with the key base rate.Experts recommend reallocating funds in bank deposits to other assets that offer higher yields. Real estate may be an option, but not a lot of people can afford to invest in an apartment unless they borrow money from banks with low interest rates. Investing fund

June 17, 2016

Bank deposits offer poor returns

[THE INVESTOR] Following the Bank of Korea’s surprise cut in base interest rate last week, local banks have each been slashing their own rates for deposit and saving accounts. Citibank Korea’s easy-access deposit account for corporate clients has fallen into negative return territory after the bank slashed its annual interest rate to 0.001 percent from 0.1 percent on Tuesday. This means that a deposit of 10 million won ($8527) earns 1,000 won a year in interest, or 846 won after tax. Given that

June 17, 2016

[INTERVIEW] 'Mom, buy me stock'

[THE INVESTOR] Whenever John Lee has the chance to meet new people he emphasizes the same piece of advice: “Buy your children stocks, instead of paying high fees for private education.”During our interview at his office in Bukchon, northern Seoul, the CEO of Meritz Asset Management asked me directly if I was investing in stocks. For ordinary Korean workers, it is not easy to check the stock market frequently and pick good shares that will yield high returns. When news reports tell us the local s

June 17, 2016

[ANALYST REPORT] LG Electronics: MC division to again disappoint

Rather than a demand rebound, LG Electronics (LGE) earnings are to continue being buoyed by its competitiveness in the home entertainment and home appliances markets (absence of rivals strong enough to supplant its positions in these markets). However, we expect earnings at its MC division to remain weak.2Q16 preview: MC division to book disappointing earnings We expect LGE to register 2Q16 sales of W14.4tn (up 3% y-y, up 8% q-q) and operating profit of W608.0bn (up 149% y-y, up 20% q-q) on weak

June 17, 2016

[ANALYST REPORT] The global robot revolution is here, and growing

The past month has seen a spate of robotics M&A activity around the world. China tipped its hand to its RIoT ambitions with a USD5bn offer for Germany’s Kuka, one of the world’s leading robotics companies. Kuka has traditionally been a strong player in the industrial robot space but recently has been aggressively moving into the service robotics domain due to the expected massive growth of the segment.Toyota is also reported to be in talks with Google to acquire Boston Dynamics and Schaft—the wo

June 17, 2016

Korean builders seek new owner after court receivership

[THE INVESTOR] A handful of Korean companies, which have put under court-led restructuring programs, are seeking out new buyers, sources said on June 17. Financially troubled firms, mainly builders, are putting themselves on the mergers and acquisitions market after the Seoul Central District Court helps them to clean up their balance sheet during the debt workout scheme. “The local M&A market is expected to be packed by firms that underwent court-led revamp as more companies rely on the court a

June 17, 2016

Woori Bank to be put up for sale again

[THE INVESTOR] The government plans to make its fifth attempt to sell Woori Bank in August at the earliest, a key official overseeing the sale process said on June 17. “The success of Woori Bank sale can’t be guaranteed as market sentiment can shrink due to variables like Brexit but we are considering giving a public notice of the disposal between August and September,” said Yoon Chang-hyun, chairman of Public Fund Management Committee of Financial Services Commission. Woori Bank, the country’s

June 17, 2016