Nearly 12 years’ salary needed to buy house in Seoul: data

A middle-income household can buy a house in the Seoul area by saving the entire income without spending a dime for nearly 12 years, data showed Tuesday. The house price to income ratio, or PIR, reach ed 11.7 in the capital city during the first quarter of this year, marking the highest since records began in 2008, according to KB Kookmin Bank Liiv On, a real estate data tracker.   PIR is a widely used measurement of house affordability in a given city or country. The ratio is calcu

May 26, 2020

Despite US-China conflict fears, Kospi rises back past 2,000-mark

Amid fears of an escalation in conflict between the US and China, South Korean shares extended gains for two consecutive sessions, with the main bourse Kospi reaching 2,029.78 points at Tuesday’s close, the highest in 12 weeks. With expectations rising for an economic recovery, the Kospi index got off to a solid start at 2,001 -- up 6.40 points, or 0.32 percent -- from the previous session’s close. The main bourse continued to move upward and reached 2,022.95 in late morning tradi

May 26, 2020

Overseas card spending dips by most in over decade in Q1 amid pandemic

Overseas card spending by South Koreans dropped at the fastest rate in over a decade in the first three months of this year on a sharp decline in the number of outbound travelers caused by the COVID-19 pandemic, central bank data showed Tuesday. The overall amount of money spent overseas by South Koreans using cards came to about $3.6 billion in the January-March period, down 23 percent from $4.68 billion in the same period last year, according to the data from the Bank of Korea (BOK). It mar

May 26, 2020

Toss joins hands with Crosscert to expand e-sign biz

Viva Republica, a leading financial technology startup in South Korea that operates the money transfer app Toss, said Tuesday that it had joined hands with the Korea Electronic Certification Authority (Crosscert) to accelerate the expansion of its electronic signature business. The partnership will make it possible to use Toss e-signatures for civil affairs, bidding procedures, contracts and online tax payments, with Crosscert serving as the certificating authority, Viva Republica said. The n

May 26, 2020

Seoul stocks open higher on economic recovery hopes

South Korean shares opened higher Tuesday on expectations for an economic recovery amid eased worries over the new coronavirus. The benchmark Korea Composite Stock Price Index (KOSPI) rose 10.7 points, or 0.54 percent, to 2,005.30 in the first 15 minutes of trading. The KOSPI extended gains from the previous day largely on investors' optimism for an economic recovery fueled by South Korean President Moon Jae-in's push for a third and possibly largest-ever supplementary budget. US stock marke

May 26, 2020

KB named best financial company in 2019: survey

KB Kookmin Bank was named the best financial company last year in the overall corporate assessment, a survey showed Monday.  According to local corporate tracker CEO Score, the South Korea lender topped the list of the country’s top 108 financial companies with assets over 2 trillion won in six categories -- financial group, commercial bank, insurer, brokerage house, credit card company and savings bank. The survey measured each company’s commitment to corporate growth, job c

May 25, 2020

Middle-aged consumers emerge as major digital content subscribers

Subscription-based streaming services and e-books are no longer the preserve of the tech-savvy younger generation. People in their 50s and 60s are fast becoming a major consumer base in the digital content market, at least among the better off, a survey showed Monday. From 2016 to 2019, the amount that people in this age group spent on digital content increased 160 percent while the number of online payments soared ninefold. The survey, conducted by local card issuer Hyundai Card and financ

May 25, 2020

Acleda Bank lists on KRX-invested Cambodian stock exchange

Acleda Bank, the biggest commercial bank in Cambodia, said Monday it was listed on the Cambodia Securities Exchange in which the Korea Exchange (KRX) has invested. The Cambodian bank had assets of $6.18 billion as of the end of last year. Its market capitalization marked $1.75 billion -- nearly three times that of five listed firms in the country. Since the large-cap stock went public, the lackluster Cambodian stock market is expected to be revitalized by attracting new local and foreign inve

May 25, 2020

IBK fined $86m in US over mishandling anti-money laundering program

State-run lender Industrial Bank of Korea and its New York branch have been fined $86 million by the Attorney General’s Office for allegedly failing to manage their anti-money laundering program, documents and local reports showed Monday. The bank’s apparent decision to delay the upgrade of the program for nearly a decade, eventually led to its failure to detect transactions that violated US sanctions against Iran, settlement documents between IBK and the Attorney General’s O

May 25, 2020

Seoul stocks close higher on hopes of economic stimulus

South Korean shares closed sharply higher Monday on hopes of massive economic stimulus steps sought by the local government. The Korean won fell against the US dollar amid the growing tension between the United States and China. The benchmark Korea Composite Stock Price Index (KOSPI) gained 24.47 points, or 1.24 percent, to close at 1,994.60. Trading volume was moderate at about 630 million shares worth some 7.84 trillion won ($6.3 billion), with winners outnumbering losers 517 to 303. The in

May 25, 2020

NH-Amundi names new CMO

Seoul-based NH-Amundi Asset Management on Monday named Kim Seung-ho as its new chief marketing officer. Kim was formerly headed the fund management unit at NongHyup Bank. He will serve a one-year term. He will replace Moon Young-sik, whose term ended in April. NH-Amundi Asset Management is a 70:30 joint venture of NongHyup Financial Group and France-based Amundi Asset Management. NongHyup Bank is a wholly owned banking arm of NongHyup Financial Group. Kim started his career in 1985 at Nat

May 25, 2020

KB Asset launches fund to invest in US blue chips

Seoul-based KB Asset Management said Monday it has launched a fund that targets blue chips listed in the US stock exchanges. The open-ended fund is raising funds from South Korean retail investors and is expected to invest in US firms that generate stable income supported by their new growth engine, such as Amazon, Apple and Alphabet. At least 70 percent of the funds will go to large-cap stocks, KB Asset said. “The US is taking the lead in new growth engine industries, and is expected

May 25, 2020

Seoul stocks open higher on vaccine hopes

South Korean shares opened higher Monday on hopes of a new coronavirus vaccine. The benchmark Korea Composite Stock Price Index (KOSPI) rose 6.16 points, or 0.31 percent, to 1,976.29 in the first 15 minutes of trading. Optimism grew after a US bio firm, Moderna, again reported positive test results from its candidate vaccine. Such reports from the US firm sparked a global stock market rally last week. Large caps traded mixed. Market kingpin Samsung Electronics lost 0.21 percent, and No. 2

May 25, 2020

FSC allows online account switching between 1st, 2nd-tier banks

South Korea’s financial regulator said Sunday it will allow customers to swap their online bank accounts among first- and second-tier financial institutions for handling monthly payments. Starting Tuesday, those who wish to switch payment accounts can apply at the bank they wish to deal with or at the Pay Info website, run by the Korea Financial Telecommunications & Clearings Institute, Financial Services Commission officials said. The service, launched in October 2015, simplified t

May 24, 2020

[Market Close-up] COVID-19 accelerates shift in South Korea’s stock market landscape

The ongoing coronavirus crisis appears to have accelerated changes in South Korea’s stock market landscape with contactless services and biotechnology firms breaking the dominance of manufacturing companies. Twenty years ago, companies focusing on manufacturing or infrastructure businesses were among the 10 largest market cap companies on the main bourse Kospi. The list included auto giants Hyundai Motor and Kia Motors, steelmaker Posco and SK Telecom. The emergence of online services p

May 24, 2020

FSS warns of puffed-up promotion of offshore life insurance plans

South Korea’s financial watchdog vowed Sunday to stamp out ill-advised sales promotion of offshore retirement plans through unauthorized online channels such as social media. The Financial Supervisory Service also pledged to monitor such sales activities online and issued the mildest level of alert to consumers to protect them. This comes as the online sales promotion of offshore life insurance schemes including retirement plans from outside Korea, such as Hong Kong, became widespread w

May 24, 2020

Hana Financial, Hahn & Co. agree to buy H-Line Shipping for W1.8tr

South Korea’s private equity house Hahn & Co. and Hana Financial Group have agreed to buy a 100 percent stake in H-Line Shipping, former dry bulk cargo arm of bankrupt carrier Hanjin Shipping, for 1.8 trillion won ($1.45 billion), according to sources on Sunday. The two firms will create a project fund for the leveraged buyout of H-Line Shipping, which is now fully owned by another fund of Hahn & Co. Under the plan, nearly 45 percent of the acquisition cost will be leveraged. T

May 24, 2020

KEB Hana, Woori appeal regulator's penalty decision

KEB Hana Bank and Woori Bank said Friday they have appealed the levying of penalties by state financial authorities on the lenders' improper sale of derivatives-linked products.     The two lenders have raised an objection to the Financial Services Commission (FSC), which imposed fines of 19.71 billion won ($16 million) on Woori Bank and 16.78 billion won on KEB Hana Bank on Jan. 30. "We filed the objection to the financial authorities as we want the court to review

May 22, 2020

Seoul stocks snap 5-day winning streak on US-Sino dispute

South Korean stocks closed lower Friday, ending a winning streak of five consecutive sessions on an escalating dispute between the United States and China that may further undermine the country's exports. The Korean won fell against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) lost 28.18 points, or 1.41 percent, to close at 1,970.13. Trading volume was moderate at about 832 million shares worth some 9.3 trillion won ($7.5 billion), with losers outnumbering gainers 719

May 22, 2020

Financial circles should secure loss-absorbency capacity amid COVID-19: FSS chief

The chief of South Korea’s financial watchdog urged financial circles to be wary of business expansion and to secure capital reserves, assuming that the COVID-19 pandemic will drag on. “The financial circles should maximize their total loss absorbency capacity, bracing for a prolonged fallout of COVID-19,” Yoon Suk-heun, governor of the Financial Supervisory Service, said in a financial supervision advisory committee meeting held Friday at the Korea Federation of Banks headqu

May 22, 2020