Dark clouds loom over credit ratings of Korean firms

South Korean companies are bracing for a massive credit rating downgrade as the novel coronavirus spillover threatens their business outlook, according to industry sources Wednesday. The weakening prospect of retailers, petrochemical firms and manufacturers in the wake of the coronavirus spread appears to be putting pressure on their liquidity. On Tuesday, the credit outlook of three companies for straight bonds was revised to “negative,” according to three credit rating agencies -

April 15, 2020

Corporate bond market shivers despite steps to calm down

Despite the government‘s bond-buying initiative aimed at shoring up liquidity, South Korea’s corporate bond market is rattled by changes in credit outlooks that reflect lingering uncertainties on falling oil prices and the COVID-19 pandemic. On Monday, Hanwha Solutions’ corporate bonds meant to raise 210 billion won were undersubscribed by institutional investors. Absent in the bidding was the vehicle dubbed the “bond market stabilization fund,” a state commitment

April 14, 2020

Conglomerates’ R&D spending grows 7.8%

South Korean conglomerates increased spending on research and development despite falling sales last year, according to a report Tuesday. The combined R&D spending of 208 conglomerates last year came in at 53.5 trillion won ($44 billion), up 7.8 percent from a year earlier, according to a report on the nation’s large businesses released by corporate tracker CEOScore. The companies’ combined annual revenue, on the other hand, dropped 0.8 percent to 1,709.7 trillion won durin

April 14, 2020

S. Korean stocks rebound 1.72% amid hopes of virus outbreak

South Korean stocks rebounded 1.72 percent higher Tuesday as investor sentiment was buoyed by hopes the global coronavirus outbreak is peaking and better-than-expected Chinese data. The Korean won gained ground against the greenback. The benchmark Korea Composite Stock Price Index (KOSPI) shot up 31.32 points to close at 1,857.08. Trading volume was heavy at 872 million shares worth 9.8 trillion won ($8.1 billion), with gainers far outpacing losers 757 to 106. The country reported 27 new case

April 14, 2020

Property transfers among family members jump

A growing number of homeowners, including those with multiple houses, in some of South Korea’s major cities have given houses to family members instead of selling them to avoid hefty holding taxes, data showed Monday. The number of houses traded among family members in Daegu has more than doubled on-month from 254 in January to 632 in February, according to data compiled by the Korea Appraisal Board, a government agency that evaluates property values. The figure for Gwangju also increas

April 14, 2020

Seoul stocks open higher amid eased virus woes

South Korean shares opened higher Tuesday as the country witnessed a daily number of new coronavirus cases below 30. The benchmark Korea Composite Stock Price Index (KOSPI) rose 15.28 points, or 0.84 percent, to 1,841.04 in the first 15 minutes of trading. The country repoted 25 new cases of COVID-19 on Monday, bringing the nation's total infections to 10,537. Most large-cap stocks rose across the board. Market bellwether Samsung Electronics added 0.31 percent, No. 2 chipmaker SK hynix was

April 14, 2020

Lime investors to lose over half of principal

Investors in two funds of Lime Asset Management, a South Korean hedge fund that fell from grace on a deluge of scandals, are expected to lose over half of their money, according to redemption plans issued Monday. Investments in two master funds -- Pluto FI D-1, dedicated to privately placed bonds, and Tethys II, which targeted mezzanine instruments – were frozen due to illiquidity last year. Their total value will fall to a combined 534.7 billion won ($439.18 million) according to the pl

April 13, 2020

Foreigners’ monthly stock sell-off far exceeds previous record high

Foreigners sold a net 13.45 trillion won ($11.04 billion) worth of local shares last month, far outpacing the previous record high, data showed Monday. The March tally beats the previous largest number in August 2007 of 9 trillion won, and is about four times higher than the January figure of 3.23 trillion won, according to the Financial Supervisory Service. By country, investors from the United States dumped the most at a net 5.5 trillion won, followed by British investors who offloaded a n

April 13, 2020

WeWork names new chief for Korea

Coworking space giant WeWork said Monday that it has appointed Chun Chung-joo (Patricia) as the new general manager of its South Korean office. Chun has 20 years of experience at global and Korean companies under her belt. Most recently, she served as chief strategy officer of food delivery firm Delivery Hero Korea, leading development of business strategies and proceeding with investments and merger and acquisition deals. She was also responsible for managing government relations, corpora

April 13, 2020

Seoul down 1.9% on virus woes, weak data

South Korean stocks closed 1.88 percent lower Monday as investors were concerned about the spiraling number of COVID-19 infections in major economies despite signs of a slowdown locally, analysts said. The Korean won sharply fell against the greenback. The benchmark Korea Composite Stock Price Index (KOSPI) decreased 34.94 points to close at 1,825.76. Trading volume was high at 1 billion shares worth 9.4 trillion won ($7.73 billion), with losers outpacing gainers 694 to 180. South Korea detec

April 13, 2020

KDB in talks with local PEF to sell life insurer

State-run policy lender Korea Development Bank is in talks with South Korea’s private equity firm JC Partners to sell a life insurer unit as part of its restructuring process, an industry source said Monday. JC Partners is the only bidder participating in the preliminary stage that is undergoing a due diligence for the acquisition, the source added. KDB said further details cannot be disclosed because the talks are ongoing with the potential buyer before signing a deal. “Regardi

April 13, 2020

SparkLabs partners with Shinhan Capital for startup fund

Seoul-based global startup accelerator SparkLabs said Monday it has joined hands with nonbanking lender Shinhan Capital to create a 10.1 billion won ($8.28 million) fund to support early-stage startups. The vehicle is aimed at investing in SparkLabs alumni and other early-stage startups with growth potential, as well as secondary investing in fast-growing companies in the fields of health care, biotechnology and manufacturing. The fund is co-managed by SparkLabs and Shinhan Capital, and

April 13, 2020

Seoul stocks open lower despite US gains

South Korea's exports fell sharply from a year earlier in the first 10 days of April amid the economic fallout from the new coronavirus, customs data showed Monday. The country's outbound shipments came to $12.2 billion in the April 1-10 period, down 18.6 percent from the same period a year earlier, according to the data from the Korea Customs Service. The daily average exports during the cited period also slipped 18.6 percent on-year. The data came amid growing concerns that the coronavir

April 13, 2020

How does coronavirus affect individuals’ financial management?

Individual subscribers are rapidly losing faith in savings deposits amid ultralow rates and volatile markets, with withdrawals topping 7.7 trillion won ($6.36 billion) in March, nearly a 35 percent increase from each of the previous two months.  According to data compiled by five commercial banks -- KB Kookmin Bank, Shinhan Bank, Woori Bank, Hana Bank and NH Bank -- the combined withdrawals from individuals’ savings and deposit accounts last month reached some 7.7 trillion won from

April 13, 2020

‘S. Korea’s stock market to foster recovery from 2H’

Despite lingering volatility, South Korea’s main bourse Kospi is expected to recover starting from the second half of this year if the novel coronavirus comes under control globally and that sense of stability boosts consumption demand on the back of policy efforts, research heads of brokerages in Seoul said Sunday. “As pent-up demand sparks and corporate earnings increase with the government’s liquidity support, stock markets will gradually rise from the second half,”

April 12, 2020

Acquisition of Prudential Life gives green light for KB Financial

For KB Financial Group, the latest acquisition of Prudential Inc.’s local unit was not just an expensive price to expand its nonbanking sector, but also a positive signal for its management stability. While taking a step closer to regain its title of “winning banking group,” the group has also raised the possibility of prolonging the term of its incumbent chief later this year. KB Financial on Friday signed a 2.34 trillion-won ($1.86 billion) deal to purchase the local ope

April 12, 2020

Amount of unemployment benefits hits record in Feb.

The amount of unemployment benefits handed out in February surpassed the 800 billion won ($660 million) mark for the first time in February, according to data compiled by the Korea Employment Information Service on Saturday. The amount of subsidies given to the unemployed in February reached 808.3 billion won, up 28 percent on-year. The sharp increase came even before the novel coronavirus hit the nation in earnest in March, reflecting the sluggish domestic job market in recent months. Of 1

April 11, 2020

Nexon founder expands investment in non-gaming sector

Kim Jung-ju, founder of South Korea’s largest game company Nexon, has invested in Canadian high-end outwear brand Moose Knuckles, seeking new opportunities in the non-gaming sector. Kim, who now serves as chief of Nexon’s holding company NXC, took over 23.9 percent stake of the Canadian garment manufacturer for 64.2 billion won ($53 million). Moose Knuckles is one of the top three high-end winter jacket brands, along with Nobis and Canada Goose. Their winter luxury parkas cost

April 11, 2020

Korean banks flock to Myanmar for ‘next big market’

Major South Korean lenders are gearing to start business in Myanmar, hoping to sustain their momentum in the Southeast Asian region. Korea Development Bank, Industrial Bank of Korea and KB Kookmin Bank obtained preliminary approval from the central bank in Myanmar earlier in the week, industry sources said Friday. KDB was granted preliminary approval from the Central Bank of Myanmar a day prior to open a new branch in Yangon, the country’s largest city. It marks the first time in 22 yea

April 10, 2020

Seoul stocks up for 2nd day on US stimulus measure

South Korean shares ended higher for the second straight session Friday on improved investor sentiment over the United States' latest stimulus effort meant to minimize the economic fallout from the new coronavirus. The Korean won sharply rose against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) rose 24.46 points, or 1.33 percent, to 1,860.67. Huh Jae-hwan, a strategist at Eugene Investment Co., said the US Federal Reserve's provision of liquidity programs that also i

April 10, 2020