[COVID-19 Market Impact] IPOs, business meetings delayed, commercial banks on high alert

Local brokerages and banks in Yeouido, the country’s main investment and financial district, have allowed employees to work from home as part of efforts to contain the new coronavirus. Over 73 percent of the nation’s financial companies are reviewing telecommuting plans, according to a poll conducted by job portal Saramin. “Except IT and other core departments, many employees are working from home through the company’s intranet,” said a 35-year-old office worker a

March 12, 2020

[COVID-19 Market Impact] Stocks in steep decline, fear spreads to real estate, M&As

The coronavirus outbreak, now declared to be a pandemic by the World Health Organization this week, has started to send shockwaves across the global economy and markets that have prospered for years on the back of ultra-low interest rates, relatively stable energy prices and the increased productivity of the corporate sector. The economic shock of COVID-19 could be a lot like the 2008 financial meltdown, economists have warned, reminding investors of South Korea’s painful past 12 years ag

March 12, 2020

Seoul stocks plummet to end at lowest since Aug. 2015

The Kospi plummeted more than 5 percent during Thursday trading, which triggered the stock exchange to temporarily halt trading on Korea’s main bourse, as investor sentiments weighed on the coronavirus pandemic. The Korea Exchange activated a “sidecar,” meaning it temporarily halted the trading of shares, for five minutes around 1:04 p.m. after Kospi 200 index futures slipped over 5 percent. It was the first time the sidecar had been activated for the Kospi since Oct. 4, 201

March 12, 2020

Seoul stocks open lower on US losses, WHO declaration

Seoul stocks opened lower Thursday, tracking renewed market turmoil on Wall Street, sparked by the UN health body's declaration that the new coronavirus is a pandemic. The benchmark Korea Composite Stock Price Index fell 19.70 points, or 1.03 percent, to 1,8888.57 in the first 15 minutes of trading. On Wednesday, the KOSPI plunged nearly 3 percent to 1,908.27 points, the lowest level since Feb. 17, 2016. The plunge was driven by lack of clarity from the planned US measures to cushion the econ

March 12, 2020

South Korea’s financial groups still lagging in board diversity

[EMPOWERING WOMEN FINANCIERS]  The Korea Herald is publishing a series of articles to shed light on efforts to transform South Korea’s financial market by having more women financiers both at working and leadership levels and the challenges they face. This is the first installment. -- Ed.  The industry-wide campaign to “break the glass ceiling” has been going on for years, with little progress so far, particularly in South Korea’s financial market which is

March 11, 2020

Assetplus ex-CEO returns to top post

Assetplus Investment Management said Wednesday it has named Edward Yang as its new CEO following a shareholders meeting. This marks Yang’s return to the top post in four years -- he served in the top post from June 2012 to May 2016. After his term, he has since led Assetplus’s strategic business division. Yang said he would focus on the firm’s digital marketing scheme that would allow the asset manager to draw retail investments into its funds through mobile trading platfor

March 11, 2020

Citibank, JP Morgan and two others fined W1.3b for fixing prices of forex derivatives

South Korea’s antitrust watchdog said Wednesday that it had fined four foreign banks a total of 1.3 billion won ($1.1 million) for fixing the prices of foreign exchange derivatives and manipulating the bidding process when dealing with local firms. According to the Fair Trade Commission, Citibank’s Korean subsidiary and local units of JP Morgan Chase, HSBC and Credit Agricole have colluded in price bids to win three forex derivatives contracts from four public and private companies

March 11, 2020

Banking groups to hold shareholders meetings despite coronavirus scare

Even though the novel coronavirus outbreak is increasing “social distancing,” local banking groups are set to hold shareholders meetings as scheduled, but are also considering complementary measures to prevent infection. KB, Hana, Woori and Shinhan have all asked participating shareholders to bring face masks and warned that they will prohibit attendees from entering the venues if thermal scanners detect high temperature. KB’s shareholders meeting is scheduled to take place

March 11, 2020

System errors blamed for investment losses

A series of system errors on online transaction platforms run by local brokerages and an internet bank were reported this week, disrupting services. SK Securities suffered a technical glitch at its home trading system and mobile trading system for nearly three hours from about 10 a.m. to 1 p.m., a source told The Korea Herald, saying it caused investment losses. “I wasn’t able to connect to the MTS, so I tried trading through the HTS. I was able to trade my securities in real time,

March 11, 2020

No. of stock-trading accounts surpasses 30m

Despite the novel coronavirus outbreak continuing to roil financial markets, the number of active security accounts in South Korea has exceeded 30 million for the first time, according to data from the Korea Financial Investment Association and Statistics Korea on Wednesday. As of Friday, the number of active equity accounts marked some 30 million -- up 26,245 from a day earlier and 661,612 ‬from the beginning of this year, the self-regulatory financial organization and nation’s statisti

March 11, 2020

Heung-A Shipping to undergo KDB-led debt restructuring

South Korea’s No. 5 shipping firm Heung-A Shipping is planning a corporate workout program as its maritime cargo operations have faltered, with snowballing debt, a regulatory filing showed Wednesday. The company’s board has approved a debt restructuring scheme by the policy lender Korea Development Bank, one of its key creditors, to “improve its finances and normalize business operations.” Under the KDB-led financial rescue package, creditors will take control of the t

March 11, 2020

Fitch sees limited impact of coronavirus on memory chip market

Global rating agency Fitch Ratings Inc. said Tuesday the global memory chip market will suffer a limited risk of supply disruptions in the short term from the spreading coronavirus outbreak. The memory semiconductor market is likely to continue to recover as weakening demand for memory chips used in smartphones and PCs will be offset by stronger demand for those used in servers, Fitch said in a statement.  "This is because the industry's manufacturing facilities are highly automated

March 10, 2020

NPS to be no barrier for Hyosung chairman to extend term

Despite the National Pension Service’s efforts to actively interfere in the management decisions of scores of domestic companies as a major shareholder, it is likely to leave Hyosung Group untouched. The NPS has yet to change the shareholding purpose of Hyosung Corp., holding firm of the family-controlled conglomerate, to “general investing” from “nonengagement investing,” which would otherwise have allowed it to have a say in issues related to executive salaries

March 10, 2020

Shinhan Card to buy Hyundai Capital’s W500b assets for rental car biz

Shinhan Card said Tuesday it is poised to buy parts of Hyundai Capital’s assets related to its long-term car rental services for around 500 billion won ($417.3 million). The assets will be composed of vehicles under the South Korean carmaker -- Hyundai, Kia and Genesis -- which Hyundai Capital rents to consumers, as well as rental consumers. The final acquisition price will differ depending on shareholder approval. The two companies signed the deal Monday for the transaction scheduled

March 10, 2020

S. Korea to tighten rules on stock short selling amid market rout

  South Korea's financial authorities said Tuesday they will tighten regulations on stock short selling as part of market stabilization measures amid increased fluctuations sparked by the outbreak of the new coronavirus and a slide in global oil prices. Finance Minister Hong Nam-ki said the government will temporarily ease its requirements for the designation of certain shares subject to a possible ban on short selling. The decision came in a meeting of economy-related ministers and offi

March 10, 2020

Woori Financial chief files for court injunction against reprimand

The head of South Korea's Woori Financial Group has sought a court injunction against the financial watchdog's recent reprimand over improper selling of derivatives-linked products, people familiar with the issue said Monday. Woori Financial Group Chairman Sohn Tae-sung filed for the injunction with the Seoul Administrative Court. He also filed a separate lawsuit calling for the nullification of the disciplinary action by the Financial Supervisory Service, they said. Woori Financial Group said

March 9, 2020

Renewed coronavirus fear wobbles Korea’s financial markets, volatility increases

Hit by renewed coronavirus fears and investors’ fatigue, South Korea’s financial market took a big hit Monday, with stock and bond prices plunging, and the local currency also getting weaker as foreign investors exited in droves. The main bourse Kospi dipped 4.2 percent from the previous session’s close, the largest drop in 17 months. The index drifted to the lowest since August 2019, when the volatility-prone market was rattled by a trade war between the US and China. Loser

March 9, 2020

Kolon Industries, SKC finalize stake sale of PI film company

Korean chemical materials manufacturers Kolon Industries and SKC have sold their stakes in SKC Kolon PI, a polyimide film maker, for some 300 billion won ($250 million) in a bid to acquire seed funding to nurture new businesses, according to the two companies on Monday. Kosdaq-listed SKC Kolon PI is a joint venture established by Kolon Industries and SKC in 2008. It is the world’s largest polyimide film company, with 30 percent market share in the sector. PI film is utilized in variou

March 9, 2020

Daelim Industrial completes acquisition of US-based Cariflex

South Korean construction company Daelim Industrial has completed the takeover of Carliflex, a chemical business unit of Kraton, a US firm that produces specialty polymers and chemical products derived from pine wood pulping byproducts. Through the acquisition, worth $530 million, Daelim has gained Carliflex’s operations and workforce overseas, in the US, Germany, Belgium, Japan and Singapore. “The production technology for high-performance butadiene-based rubber that the compa

March 9, 2020

Corporate bond sales soar amid low rates in Feb.

Corporate bond sales in South Korea surged in February as firms rushed to secure funds amid low rates and greater uncertainty, data showed Monday. South Korean companies floated 12.3 trillion won ($10.2 billion) worth of bonds last month, up 5.5 trillion won from the previous month, according to the data from the Korea Financial Investment Association. The amount was far larger than a forecast of 6.5 trillion won for the month's estimated demand for corporate debt sales. The association said

March 9, 2020