S. Korea's daily FX turnover sinks in Q2 on eased market rout

The daily foreign exchange (FX) turnover by banks in South Korea dropped sharply from three months earlier in the second quarter, central bank data showed Tuesday, amid an eased market rout stemming from the new coronavirus pandemic. The daily FX turnover came to an average $52.02 billion in the April-June period, down 12.4 percent from a daily average of $59.37 billion in the first quarter, according to the data from the Bank of Korea (BOK). Such a drop is "largely attributed to a cut i

July 28, 2020

Seoul stocks open sharply higher on hopes for economic rebound

South Korean shares opened sharply higher Tuesday on hopes for an economic rebound, as well as slowing new coronavirus infections in the United States. The benchmark Korea Composite Stock Price Index (KOSPI) rose 28.17 points, or 1.27 percent, to 2,246.03 in the first 15 minutes of trading. Investor sentiment ran high on large-scale stimulus plans in the US and Europe. The Dow Jones Industrial Average rose 0.43 percent on Monday (New York time), with the tech-heavy NASDAQ Composite up 1.67

July 28, 2020

Woori, IBK suffer earnings slump in Q2 on coronavirus, fund misselling

Woori Bank and Industrial Bank of Korea reported on Monday that their second-quarter net profit plummeted by 45 percent and 25 percent, respectively, weighed down by risks stemming from the coronavirus and hedge fund misselling. Woori Bank’s net profit for the April-June period slipped 45.28 percent on-year to 682.1 billion won ($570.2 million), while its operating profit fell 35.04 percent to 1.3 trillion won. But revenue increased 21.34 percent to 13.8 trillion won. The commercial ban

July 27, 2020

[Herald Interview] Digital forensics to play bigger role in Korean companies’ foreign litigation

The dominance of digital devices in the work environment has led to significant changes in global litigation involving corporate disputes. The massive amounts of intangible data have increasingly emerged as key evidence of business misconduct that is becoming more and more sophisticated. A high-profile case in the US this year was a true testament to the trend. Electronic discovery conducted by the US International Trade Commission led to a preliminary ruling -- by default -- in favor of plai

July 27, 2020

S. Korea’s ample liquidity mostly remains in bank savings

South Korea’s lenders saw savings by customers climb rapidly during the first six months of the year, along with household and corporate loans, central bank data showed Monday. Such a visible rise was seen as a signal that the ample liquidity triggered by expansionary fiscal and monetary policies did not spill out into the market, despite policy intentions. According to data from the Bank of Korea, the credit balance of domestic banks came to 1.86 quadrillion won ($1.55 trillion) as

July 27, 2020

Seoul stocks snap 3-day losing streak on stimulus hopes

South Korean shares closed higher Monday, snapping a three-day losing streak, as stimulus steps in major economies boosted investors' appetite for risk. The Korean won rose against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) rose 17.42 points, or 0.79 percent, to close at 2,217.86. Trading volume was high at about 918 million shares worth some 9.3 trillion won ($11.7 billion), with gainers outnumbering losers 561 to 284. Foreigners bought a net 156 billion won, with

July 27, 2020

Koramco’s REIT to invest in 187 gas stations

South Korean firm Koramco REITs Management & Trust said Monday it plans to raise 106.6 billion won ($89.04 million) from retail investors for its market debut on the nation’s main bourse Kospi next month.　 Koramco Energy Plus REIT is designed to directly invest in the 187 gas station sites, including the land, buildings, tanks and pipelines. Spanning an area 316,621 square meters, the land and buildings were valued at nearly 1.13 trillion won as of May 31 this year, Koramco REITs Man

July 27, 2020

K bank to launch ‘untact’ loan transfer service

South Korea’s online-only lender K bank said Monday it plans to launch a new untact -- non face-to-face -- loan balance transfer service in the second half of this year, the first of its kind in the industry.  Customers will have digital signatures registered to its own electronic system, so it can lend money instead of having to go through paper work needed to verify the authenticity of one’s seal certificate. A loan balance transfer is a service that allows borrowers to

July 27, 2020

Seoul stocks open higher on stimulus hopes

South Korean shares opened higher on Monday on hopes for stimulus measures in major economies, bucking concerns over escalating tensions between the United States and China. The benchmark Korea Composite Stock Price Index (KOSPI) rose 15.37 points, or 0.70 percent, to 2,215.81 in the first 15 minutes of trading. Investor sentiment improved in Seoul, following reports that US Republicans were set to roll out a $1 trillion COVID-19 aid package early this week, with support from the White House.

July 27, 2020

S. Korea’s housing prices soar ahead of real economy

South Korea’s housing prices were 2.64 times that of the gross domestic product in 2019, as the property market spiked, central bank data showed Sunday. Last year, the aggregate market price of houses here came to 5.67 quadrillion won ($4.62 trillion), up 7.4 percent from a year earlier, according to the Bank of Korea. The corresponding figure exceeded the 1 quadrillion won mark for the first time in 2000 and doubled up during the next six years to surpass 2 quadrillion won in 2006. Du

July 26, 2020

[Future of Plastic Cards] With digital payments rising, will plastic cards become things of past?

This is the first installment in a series of articles and interviews assessing the future of credit cards as a major payment platform and challenges ahead. -- Ed. The rapid growth of mobile payment services is offering wider options for customers, but for the South Korean credit card industry it is both an opportunity and threat. Some naysayers even predict the demise of plastic credit cards that replaced cash payments for years. Fears linger over the possible emergence of a Korean-version of

July 26, 2020

Shinhan Financial hands over leading bank title to rival KB in Q2

Taking a hit from the private equity debacle, Shinhan Financial Group failed to prolong its solid earnings streak in the second quarter and handed over the industry’s top position to rival KB Financial Group, data showed. For the three months that ended June 30, Shinhan posted a net profit of 873.1 billion won ($725.9 million), down 6.4 percent from a quarter earlier and 12.3 percent from a year earlier, the company said in a statement Friday. The latest result came in line with outlo

July 26, 2020

REIT IPOs elicit lukewarm response from retail investors

The initial public offerings of South Korean real estate investment trusts are drawing lackluster response from retail investors before their listing on the local stock market, estimates showed Sunday. The latest was the undersubscription of the stock offering to individual investors, when JR Asset Management’s REIT was going public on the main bourse Kospi to invest in Finance Tower Complex in Brussels, Belgium. REITs are companies designed to generate returns for investors in the for

July 26, 2020

Samsung Asset delays merger with hedge fund arm

Samsung Asset Management disclosed Sunday it has put a merger plan with its wholly owned hedge fund subsidiary on hold. The Seoul-based asset manager that oversees 26.9 trillion won ($22.3 billion) assets -- largest in South Korea -- added it would make an announcement once the date of merger is rescheduled. The deal was initially set to be closed by Aug. 1, following regulatory approval. The news comes amid intensifying scrutiny by authorities of Korean privately pooled funds -- private equ

July 26, 2020

Seoul stocks set for mild gain next week: analysts

South Korean stocks are expected to log mild gains next week on hopes for a US stimulus package in the pipeline, analysts said Saturday. The benchmark Korea Composite Stock Price Index closed at 2,200.44 points on Friday, nearly unchanged from 2201.19 points a week ago. The index managed to stay above the psychologically important 2,200-point mark despite disappointing economic indices and Sino-American tensions. Local analysts said the KOSPI is likely to post a gradual hike next week, large

July 25, 2020

Cigna’s Korean subsidiary denies sell-off rumors

Lina Life Insurance, an affiliate of Cigna, on Friday denied market rumors that it is up for sale. According to recent market rumors, the US-based health service company plans to sell its stake in the wholly owned South Korean insurance firm. The company has reportedly selected Goldman Sachs as a lead manager for the sale. As per reports, Cigna could have fetched over 3 trillion won ($2.5 billion) from the sale. Founded in 1987, Lina Life, the 13th largest insurer here, has made most of its

July 24, 2020

Seoul stocks dip for 3rd day on virus fears, economic woes

South Korean stocks closed lower for a third consecutive session on Friday, as investor sentiment worsened over the economic fallout from the new coronavirus pandemic. The Korean won fell against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) lost 15.75 points, or 0.71 percent, to close at 2,200.44. Trading volume was high at about 979 million shares worth some 16.1 trillion won ($14 billion), with losers outnumbering gainers 583 to 279. Foreigners bought a net 87 bill

July 24, 2020

JB’s asset management arm buys Milan office building

An asset management arm of South Korea’s JB Financial Group said Friday it has purchased the headquarters of Italian energy firm ENI for 200 million euros ($232 million) as part of its efforts to expand global investments. JB Asset Management has been expanding its infrastructure investment fund overseas since last year, making 300 billion won ($250 million) investment in gas–fired combined cycle power plants in New England and Ohio in the US. Earlier this month, JB forged a partn

July 24, 2020

Seoul stocks open lower on virus woes

South Korean shares opened lower Friday on concerns over the virus pandemic's impact on the export-driven economy. The benchmark Korea Composite Stock Price Index (KOSPI) fell 9.73 points, or 0.44 percent, to 2,206.46 in the first 15 minutes of trading. The index got off to a weak start, with signals that the economic recovery from the COVID-19 pandemic may be slower than the authorities earlier expected. South Korean vice finance minister warned that the country's export slump is likely t

July 24, 2020

IGIS drops Gangnam apartment renovation plan amid backlash

IGIS Asset Management said Thursday it has canceled a plan to renovate an apartment building in Gangnam, an affluent southern district of Seoul, it acquired in April. The nation’s largest commercial property investor added it would liquidate the privately pooled fund that was created to invest in the redevelopment project, immediately after it sells the residential building. The asset management company purchased Samsung World Tower from an individual for 42 billion won ($35 mil

July 23, 2020