High-rise apartments account for 80% of ‘reverse mortgages’

More than 80 percent of applicants for reverse mortgages in recent years have been owners of high-rise apartments, data from the Korea Housing Finance Corp. showed Sunday, spurring concerns about inequitable access. Reverse mortgages were introduced in South Korea in 2007 and allow homeowners, mainly senior citizens, to receive payments on a monthly basis by borrowing against the value of their homes. From January to August, 6,636 people signed contracts with banks to borrow money by providi

Oct. 4, 2020

Kospi-listed firms expected to see operating profits gain 19% in Q3: report

The companies listed on Korea’s main bourse Kospi are likely to see their operating profits post a V-shaped recovery in the third quarter this year and jump 19 percent from a year earlier, a financial market tracker said Sunday. Local brokerages forecast that 147 listed firms will post a combined 35.44 trillion won ($30.39 billion) for the July-September period, up 19.4 percent from last year’s 29.68 trillion won, according to the poll by FN Guide. They also predicted that the agg

Oct. 4, 2020

Anxiety mounts over tax effect of new ‘large shareholder’ definition

While South Korea is set to expand its definition of a “large shareholder” starting next year, calls are escalating for the forthcoming rule to be alleviated for the sake of market stability and fair taxation. Some predicted that the stronger regulation might trigger a selling spree at year-end as retail investors seek to avoid a heavier tax burden, and others pointed to the possibility of double taxation. Under the Income Tax Act, revised in 2017 and due to take effect in 2021, t

Oct. 4, 2020

Employee crime cost banks W500b since 2016

South Korean banks and their customers lost nearly 500 billion won ($428 million) from employees’ financial crimes -- including embezzlement and fraud -- in the last five years, data compiled by the nation’s financial watchdog showed Sunday. Twenty local lenders saw losses worth a combined 488.4 billion won through 186 cases from 2016 to June this year, according to data submitted by the Financial Supervisory Service to Rep. Lee Young, a lawmaker of the main opposition People Power

Oct. 4, 2020

[Herald Interview] Why data centers matter to foreign investors

After recent success in the market for Seoul office space, London-based investment firm Actis is looking to further invest in Seoul area real estate, this time with a focus on industrial assets. The company is among those looking to invest in data centers in South Korea, as demand spikes. As server requirements expand beyond what companies can accommodate in their main offices, firms are looking to relocate their servers to the cloud or a third-party facility. Both options require data cente

Oct. 4, 2020

Nonmonetary institutions expand loan supplies, while banks tighten grip over lending

While Korea’s major lenders are gesturing to tighten their loan extensions in apparent response to financial authorities’ regulatory efforts, nonmonetary institutions are striving to expand their loan supplies, seeking to absorb market demand. Several savings banks, insurers and e-payment service operators ran special promotional events throughout the last two weeks of September, ahead of the Chuseok holiday, offering cash back or other benefits to potential credit loan borrowers.

Oct. 3, 2020

Trump diagnosis to strengthen dollar, but high market volatility not likely: experts

US President Donald Trump's infection with the new coronavirus is expected to strengthen the dollar due to investors' chasing after safe assets, but financial markets are not likely to undergo high volatility, market experts here said Saturday. Trump and first lady Melania Trump tested positive for COVID-19 on Friday, sending Wall Street's main stock indexes lower. The dollar index, a gauge of the greenback's value against a basket of six foreign currencies, rose 0.14 percent. Analysts said Tr

Oct. 3, 2020

S. Korea extends incentives for primary dealers to stabilize bond market

South Korea has extended incentive programs for primary dealers in state bond auctions until the end of this year, as part of its efforts to stabilize the bond market, according to the finance ministry Saturday. The ministry launched the incentive programs for primary dealers, who buy state bonds directly from the government and sell them to the market, in April this year as it sought to stabilize the bond market in the face of a hike in sales of state bonds to fight the coronavirus pandemic.

Oct. 3, 2020

Will Big Hit log record-breaking IPO subscription?

Like it did in the global entertainment scene, the agency behind K-pop sensation BTS is likely to wow South Korea’s stock market and its investors with what is widely expected to be the biggest initial public offering of the year. A total of 1,420 domestic and foreign institutional investors, including BlackRock and Singapore’s GIC, participated in the two-day book building, which wrapped up on Sept. 25. Competition for the 4.27 million shares, 60 percent of the new shares issued,

Oct. 2, 2020

Analysts divided over Big Hit's target prices

South Korean analysts offer a wide range of target prices for Big Hit Entertainment, an agency of K-pop superstar BTS, ahead of the company's market debut slated for this month. Big Hit Entertainment's listing, set for Oct. 15, is one of this year's mega IPO deals, thanks to the K-pop septet's global fame. The initial public offering (IPO) price was set at 135,000 won ($115), but analysts' target prices range from 160,000 won to 380,000 won. Brokerage houses' forecasts vary over how the comp

Oct. 2, 2020

Financial firms run contactless Chuseok promotions amid coronavirus pandemic

With the Chuseok holiday just around the corner, financial firms and rising fintech firms are making efforts to offer new services to attract customers amid the ongoing coronavirus pandemic. Kakao Pay, a payment solutions firm under mobile messenger giant Kakao, has launched a marketing campaign for its money transfer service. During the promotional event from Sept. 16 to Oct. 5, the company will pick eight users who send Chuseok gifts via the payment platform, and will reward them with the sam

Sept. 29, 2020

Seoul stocks extend winning streak to 3rd session on US stimulus hopes

South Korean shares extended their winning streak to a third session Tuesday, as progress in negotiations for a new US fiscal stimulus plan boosted investor appetite for risky assets. The Korean won rose against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) rose 19.81 points, or 0.86 percent, to close at 2,327.89. Trading volume was moderate at about 626 million shares worth some 8.9 trillion won ($7.6 billion), with gainers outnumbering losers 667 to 192. Foreigners

Sept. 29, 2020

KG Group to acquire Hollys Coffee for W145b

Chemical-to-financial conglomerate KG Group said Tuesday that it would take over a 93.8 percent stake in Hollys F&B from investment firm IMM Private Equity. Hollys F&B owns Hollys Coffee, one of the largest coffee franchises in South Korea. With the acquisition deal, KG Group will own slightly more than 1.65 million shares, worth 145 billion won ($124 million), of the coffee chain operator. Founded in 1998, Hollys Coffee currently runs 560 stores across the nation with its sales last

Sept. 29, 2020

Yanolja preps to go public in 2022

Yanolja, the largest accommodation and leisure activity booking platform operator in South Korea, is taking steps toward an initial public offering, according to news reports Tuesday. The accommodation booking services firm is a local startup unicorn with a market value exceeding 1 trillion won ($855 million). The Seoul-based firm is widely expected to go public, along with game producer and unicorn Krafton, among many others. In light of the momentum created in the local market by recent IPOs,

Sept. 29, 2020

KDB chief stresses SsangYong Motor’s sustainability as terms of financial aid

Policy lender Korea Development Bank Chairman Lee Dong-gull said Monday that he is closely reviewing SsangYong Motor‘s fate as a sustainable automaker while refraining from mentioning its plan to provide financial assistance to the cash-strapped company. The focal point of SsangYong Motor must be “sustainability of business operations,” along with the shareholder‘s responsible actions and burden-sharing of all parties concerned, such as shareholders, the company and the

Sept. 28, 2020

Seoul stocks gain over 1% on Wall Street rally, bargain hunting

South Korean stocks advanced more than 1 percent Monday, buoyed by stock rallies in the United States and a bargain hunting rush here. The Korean won fell against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) rose 29.29 points, or 1.29 percent, to close at 2,308.08. Trading volume was moderate at about 598 million shares worth some 8.8 trillion won ($7.5 billion), with gainers outnumbering losers 750 to 123. Foreigners sold a net 64 billion won, with retail investors

Sept. 28, 2020

Big Hit’s IPO price set at 135,000 won

The offering price of shares of Big Hit Entertainement, the local agency behind K-pop sensation BTS, was fixed at 135,000 won ($115) per share, the top end of its indicative price range, the company said in a regulatory filing Monday. At the two-day book building that wrapped up on Friday, a total of 1,420 domestic and foreign institutional investors participated in the tranche and bidding for some 4.27 million shares, 60 percent of the total. Competition among institutional investors for stoc

Sept. 28, 2020

Kakao Pay eyes IPO next year

After the successful market debut of its online games unit earlier this month, Korean mobile messenger giant Kakao is gearing up for another initial public offering next year, this time with its payment services unit, industry sources said Monday. Kakao Pay is set for an IPO during the first half of next year, the company said, adding that it had recently chosen local brokerage firm KB Securities as its leading underwriter. The company plans to apply for approval from the Financial Supervisory

Sept. 28, 2020

Celltrion trio gains on merger scheme

Stocks of biotechnology firm Celltrion and its subsidiaries -- Celltrion Healthcare and Celltrion Pharm -- often called the “Celltrion trio,” were mixed Monday over a merger plan announced late last week. Celltrion Pharm, which runs sales operations for chemical and biosimilar drugs produced by Celltrion, saw its stock soar 19.55 percent to 123,500 won ($105.20) in the morning trading session, while Celltrion Healthcare’s stock jumped 8.32 percent to 95,000 won in intraday t

Sept. 28, 2020

SC Bank Korea partners Toss to launch short-term personal loan

Standard Chartered Bank Korea said Monday it has partnered with Toss -- a financial services app operated by Viva Republica -- to launch a short-term lending program on Wednesday.  Under the partnership, SC Bank Korea outsources credit evaluation process to Toss. SC Bank Korea is the first lender operating here to outsource credit evaluation of customers to a fintech company. SC Bank Korea receives application for the program via Toss’ mobile app and requests the fintech company t

Sept. 28, 2020