[Market Close-up] Political links to South Korean hedge funds spark controversy

This is the final installment in a two-part series exploring Korea’s troubled hedge funds. -- Ed. Alleged fraud cases involving homegrown hedge fund asset managers in recent months have something in common: their unusual ties to political bigwigs. From Lime Asset Management Asset that suspended 1.66 trillion won ($1.38 billion) in assets to Optimus Asset Management that froze 550 billion won of investors’ money, hedge fund managers with a short proven track record appear to

July 20, 2020

Local PEF’s purchase of Gangnam apartments grabs market attention

A private equity fund operated by a local real estate asset management firm has purchased an entire apartment building consisting of 46 units in Gangnam -- one of Seoul’s most expensive districts -- raising eyebrows in the realty sector that is facing tougher regulations. IGIS Asset Management bought Samseong World Tower, an 11-story building from an individual for nearly 42 billion won ($34.90 million). It is rare for a local asset management company to buy apartment complexes as an in

July 20, 2020

Seoul stocks end tad lower on profit-taking, stimulus uncertainties

South Korean shares closed a tad lower Monday as investors locked in part of gains built on hopes for economic relief packages in major economies. The Korean won rose against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) lost 2.99 points, or 0.14 percent, to close at 2,198.20. Trading volume was high at about 675 million shares worth some 11.8 trillion won ($9.8 billion), with losers outnumbering gainers 476 to 369. The index climbed 2.4 percent last week on the back

July 20, 2020

Seoul stocks open flat on profit-taking

South Korean shares opened flat Monday, as investors went for profit-taking after the market surged by more than 2 percent last week on the back of hopes for stimulus measures in major economies amid the new coronavirus outbreaks. The benchmark Korea Composite Stock Price Index (KOSPI) rose 0.08 point, or near zero percent, to 2,201.11 in the first 15 minutes of trading. Investors took to the sidelines to keep a watchful eye on additional stimulus measures under review. European leaders cam

July 20, 2020

[Market Close-up] Snowballing fiasco shows Korea's failure to create healthy hedge fund environment

This is the first in a two-part series exploring South Korea’s troubled hedge funds market. -- Ed. Yoo Hye-kyung, 76, discharged herself from a hospital a day early to participate in a rally on Wednesday in Seoul to demand full compensation for her 500 million won ($450,000) investment in Optimus Asset Management. Claiming that she hadn’t even heard of the hedge fund manager when she signed a contract with NH Investment & Securities, a leading brokerage here, Yoo was furious th

July 19, 2020

FSC, financial giants to mull loan maturity extension to cushion pandemic impact

Financial Services Commission Eun Sung-soo will attend a closed-door meeting of the heads of South Korea’s five biggest banking groups Friday to discuss whether to further ease loan repayment schedules for coronavirus-battered companies, industry sources said Sunday. It is unusual for the FSC chief to attend the meeting convened by the five chiefs, according to insiders. Through the meeting, the authorities are slated to seek a consensus on the details of a further extension of loan re

July 19, 2020

Seoul stocks tipped to face correction this week

South Korean stocks are expected to come under selling pressure and hover below the 2,200-point level this week on mixed economic signals and a surge in new coronavirus outbreaks. The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,201.19 points on Friday, up 2.4 percent from a week ago. The index on Wednesday surpassed the psychologically important 2,200-point threshold for the first time since Feb. 19 on hopes of COVID-19 vaccine development and additional economic stimulus

July 19, 2020

Macquarie Korea hosts virtual seminar on industrial safety awareness

The South Korean unit of Macquarie Infrastructure and Real Assets hosted a virtual seminar on industrial safety awareness Thursday for companies receiving investments from its funds, it said Friday. The seminar was part of Safety Day, which the company holds annually in an effort to prevent industrial disasters and help companies understand related risks. It was carried out virtually this year due to the coronavirus pandemic, with the participation of officials from Macquarie Group and project

July 17, 2020

KB Financial relocates startup accelerator to WeWork Korea

KB Financial Group said Friday that it has relocated its startup accelerator program to a WeWork branch here and plans to recruit its first tenants. The venue for the KB Starters program, dubbed the KB Innovation Hub, was relocated earlier this month to an approximately 1,000-square-meter space within WeWork Korea’s Sinnonhyeon branch in southern Seoul. Its previous venue was a 600-square-meter coworking space nearby. Cooperation with WeWork Korea will also allow program participants

July 17, 2020

Seoul stocks close higher on stimulus hopes

South Korean stocks closed higher Friday on growing expectations for large-scale stimulus measures in major economies. The Korean won rose against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) gained 17.43 points, or 0.80 percent, to close at 2,201.19. Trading volume was moderate at about 561 million shares worth some 10.1 trillion won ($8.4 billion), with gainers outnumbering losers 483 to 362. The stock index advanced on hopes for stimulus efforts in Europe and the

July 17, 2020

Seoul stocks open higher on improved US retail sales

South Korean stocks opened higher Friday, as estimate-beating US retail sales data boosted economic rebound hopes in the world's largest economy. The benchmark Korea Composite Stock Price Index rose 11.32 points, or 0.52 percent, to 2,195.08 in the first 15 minutes of trading. The gains came after US retail sales in June jumped 7.5 percent from a month ago, after an 18.2 percent hike in May. The data fueled expectations of a recovery in the United States, one of South Korea's largest trade p

July 17, 2020

Seoul stocks close lower on profit-taking, mixed economic signals

South Korean stocks closed lower Thursday on investors' profit-taking amid mixed economic signals. The Korean won fell against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) lost 18.12 points, or 0.82 percent, to close at 2,183.76. Trading volume was high at about 775 million shares worth some 1.5 trillion won ($1.2 billion), with losers outnumbering gainers 435 to 403. Foreigners sold a net 13 billion won, ending a three-day buying streak, with institutions offloadin

July 16, 2020

[Weekender] ‘Revenge shopping’ on rise as alternative to summer vacay

For Kim Su-yeon, a 40-year-old office worker, standing in line for a Louis Vuitton bag has become a way to beat the heat -- instead of traveling overseas for some relaxation and summer fun.  “All my travel plans came to naught due to the coronavirus spread, so I decided to pour my savings into Louis Vuitton bags,” said Kim, who joined the lines stretched along the street leading to the main branch of Shinsegae Department Store in Sogong-dong, central Seoul, Tuesday. Her ques

July 16, 2020

KOFIA vows to restore trust amid snowballing hedge fund fiasco

The chief of an association representing 440 brokerages and asset management firms in South Korea apologized Thursday for a series of hedge fund fiascos and vowed to strengthen voluntary monitoring of the market. “We will concentrate on our capability to rebuild trust and carry out sustainable innovative tasks,” said Korea Financial Investment Association Chairman Na Jae-chul. “We think now is the time for the market players to open their eyes. To help them make a new leap f

July 16, 2020

FSC convenes working group to nurture AI-based finance

South Korea’s financial regulator on Thursday held a joint working group meeting to discuss measures to nurture financial services based on artificial intelligence technologies, in preparation for new waves of digital transformation in the sector.  Hosted by the Financial Services Commission, the meeting was attended by traditional local lenders, fintech firms and leading AI programming companies.  Its main agenda was to seek ways to improve the current regulations that hampe

July 16, 2020

Kakao Pay vows to expand e-bills service

Electronic payment service provider Kakao Pay said Thursday it aims to expand its service to enable bills to be created, delivered and paid online to spearhead Korea’s aim to transform into a paperless society. Capitalizing on the group’s popular mobile messenger platform KakaoTalk, Kakao Pay is likely to dominate the e-bills market by inviting more e-bill distributors to its platform, Lee Seung-hyo, chief product officer of Kakao Pay, said in a seminar held in Seoul. “At th

July 16, 2020

Seoul stocks open flat on recovery hopes, Sino-American risks

South Korean stocks opened nearly flat Thursday amid rising Sino-American tensions and recovery hopes of the pandemic-hit global economy. The benchmark Korea Composite Stock Price Index (KOSPI) fell 2.13 points, or 0.1 percent, to 2,199.75 in the first 15 minutes of trading. Investors walked a tight rope between signs of a global economic recovery and the rising political friction between the world's two largest economies. US industrial production in June jumped 5.4 percent from a month a

July 16, 2020

Seoul stocks exceed 2,200-level for first time in five months on COVID-19 vaccine hopes

The South Korean benchmark stock index finished above the 2,200-level for the first time in nearly five months on Wednesday, largely on hopes for a coronavirus vaccine and economic recovery. The Korean won rose against the US dollar. The Korea Composite Stock Price Index (KOSPI) rose 18.27 points, or 0.84 percent, to close at 2,201.88. The index surpassed 2,200 for the first time since 2,210.34 on Feb. 19. Trading volume was high at about 811 million shares worth some 13.4 trillion won ($11.

July 15, 2020

Eximbank signs $100m sublease contract with African bank to boost bilateral trade, investment

Responding to growing trade and investment volume between South Korea and Africa, the state-run Export-Import Bank of Korea has signed a sublease contract worth $100 million with the Eastern and Southern African Trade and Development Bank via a videoconference, officials said Wednesday.  Launched in 1985, the TDB, a multilateral, treaty-based development financial institution, is aimed at financing local businesses as well as trade activities in the African regions. It has 22 member coun

July 15, 2020

IBK to launch new online ‘untact’ mortgage product

The state-run Industrial Bank of Korea said Wednesday it plans to launch a new mobile untact -- non face-to-face contact -- mortgage product for customers. The product, designed to support self-employed or small business owners, will be extended through IBK’s mobile banking app I-One Bank. Users will be required to submit only basic personal information, instead of actual paper documents. The time tied to the process of receiving the mortgage will be shortened, as borrowers will b

July 15, 2020