Defense stocks surge after N. Korea’s ‘very important test’

Shares of South Korean defense-related firms jumped Monday in the wake of North Korea’s announcement about a “very important test” at its western satellite launching site over the weekend.Shares of asphalt plants manufacturer Speco closed nearly 12.9 percent higher from the previous session, at 4,115 won ($3.46). Victek, a provider of military systems and power supply systems, extended gains for the second day and closed nearly 2 percent up at 3,275 won. Both firms are listed o

Dec. 9, 2019

Korean investors turn to real estate, less interested in stock market

Korean investors have been turning their attention toward the real estate market, reflected in an increase in mortgage lending, while cash flows in the equity market have been overall stagnant, recent data showed. According to data released by the Bank of Korea last month, the outstanding balance of mortgage loans held by banks and other financial institutions here came to a combined 830.3 trillion won ($700.5 billion) as of September. The latest data is a noteworthy jump from the corresponding

Dec. 8, 2019

Foreign investors’ bond holdings hit 6-month low

Foreign investors in South Korea continued to recoup investments from the local bond market for three consecutive months, dragging the amount of locally listed bonds they held to the lowest level in six months, according to the financial regulator on Sunday. The latest data of the Financial Supervisory Service showed foreign holdings of locally listed bonds amounted to 122.3 trillion won ($103 billion) as of Wednesday, dropping from 124.77 trillion won at end-November. It also marked the lowest

Dec. 8, 2019

FSS directs banks to pay up to 80% compensation to DLF customers

The financial watchdog on Thursday directed local banks to compensate up to 80 percent of the losses suffered by customers due to their controversial sale of derivative-linked funds earlier this year. The Financial Supervisory Service held its dispute settlement committee meeting to review six representative cases of investor damages due to miselling -- three from Woori Bank and three from KEB Hana Bank.“In the past cases of misselling (of financial products), the compensation rate was usu

Dec. 5, 2019

Restructuring involves inevitable financial consequences: KDB chief

Social disturbances and financial costs during restructuring are the inevitable price one has to pay in order to reform the economy and prevent further damages, according to the chief of South Korea’s largest state-run bank.“During my past 2 1/2 years in office, I have felt the high level of distrust in our society,” said Lee Dong-gull, chairman of the Korea Development Bank, in a press conference.“Many blame us for persecuting workers along the way but our unchanging goa

Dec. 4, 2019

4 industry doyens join race to be next KOFIA leader

Four industry experts have joined the race to head the leading nonprofit, self-regulatory financial organization in South Korea.According to the Korea Financial Investment Association on Wednesday, Daishin Securities CEO Na Jae-chul, Hana Financial Investment Executive Managing Director Seo Jae-ik, former IBK Securities CEO Shin Seong-ho and KTB Asset Management Vice Chairman Jung Ki-seung have thrown their hats into the ring.  Other strong potential candidates, including Korea Investm

Dec. 4, 2019

[News Focus] Unlisted stock market gains momentum with attention to startups

With stocks on major bourses failing to satisfy the appetite of South Korean investors and brokerages, the unlisted securities market has been gaining high popularity, buoyed by growing interest in startups.Unlisted stocks largely remained a foreign concept for domestic investors until 2014, when the Korea Financial Investment Association upgraded and rebranded its over-the-counter trading platform Freeboard -- which was launched in 2005 -- to K-OTC. OTC markets around the globe serve as a platf

Dec. 4, 2019

HSBC Securities names new co-CEOs

HSBC Securities has appointed Lee Jong-jin and Rhee Sang-ho as co-chief executive officers, the firm announced Wednesday.Lee joined HSBC in Hong Kong in 2009 from Dresdner Bank and transferred to HSBC Korea in 2010. He has since led fixed income sales, and in 2019 he expanded sales coverage to cash equity products. Lee is also said to specialize in risk management.Rhee joined HSBC in 2010 from JPMorgan and has been leading the Korea debt capital markets team.HSBC Securities provides market resea

Dec. 4, 2019

Naver takes top place in stock conversion price ranking

Naver, South Korea’s No. 1 internet portal, ranked first among all stocks listed on the main bourse in terms of conversion prices, according to the Korea Exchange on Tuesday.The conversion price of Naver was 8.57 million won ($7,220) based on Monday’s closing price of 171,500 won per share. That was followed by SK Holdings, the holding firm of Korean conglomerate SK Group, with 6.4 million won and Samsung C&T, the construction and fashion unit of Samsung Group, at 5.02 million wo

Dec. 3, 2019

Loans by insurance firms up 4.6 % in Sept.

Loans by insurance companies in South Korea rose 4.6 percent in September this year from a year earlier, data showed Tuesday.Outstanding lending by insurance firms totaled 229.3 trillion won ($193 billion) as of Sept. 30, compared with 219.1 trillion won during the same period of last year, according to the data released by the Financial Supervisory Service.Loans extended to households edged up 0.5 percent on-year to 120.4 trillion won, while their corporate lending increased 9.6 percent to 108.

Dec. 3, 2019

Kakao Bank further cements status as No. 1 internet bank

Kakao Bank, South Korea's second internet-only bank, said Monday that it swung to a net profit in the first nine months of 2019 from a year earlier, further distancing itself from its only rival, K-Bank, in terms of profitability.The bank posted a net profit of 15.4 billion won ($13 million) in the January-September period, shifting from a net loss of 15.9 billion won a year earlier, according to data posted on the website of the Korea Federation of Banks.The bank posted a net profit of 6.6 bill

Dec. 2, 2019

FSS chief warns foreign financial firms against high-risk, short-term gains

South Korea’s financial market watchdog on Monday expressed concerns over financial firms’ tendency of seeking short-term gains, referring to the recent disputes on the mis-selling of high-risk derivatives.“The conventional business practices, which led to the derivative-linked fund controversies, inflict heavy losses on both investors and financial firms,” said Yoon Suk-heun, governor of the Financial Supervisory Service.The FSS chief was speaking during a luncheon at Co

Dec. 2, 2019

With brokerage CEOs’ terms to end, are reshuffles on the cards?

The chief executives of around 10 major brokerages in South Korea are set to end their terms in the first quarter of 2020, data from the Financial Supervisory Service showed Monday, signaling an industrywide leadership reshuffle. But market watchers also expect many of them to extend their average two-year terms based on their performance. CEOs who led strong earnings this year are likely to retain their positions due to the lack of major issues that usually prompt a reshuffle, according to Hwan

Dec. 2, 2019

Mirae Asset Global sells prime building in Germany

South Korea’s Mirae Asset Global Investments said Monday it has sold a premium authority building in Germany for 500 million euros ($551 million), earning a hefty profit.The asset management unit of Mirae Asset Financial Group has signed a deal to sell Cologne City Hall building -- the third-biggest building in the city, the company said in a press release.Mirae had acquired the building in February 2016 for 365 million euros through an overseas real estate blind fund. The firm’s div

Dec. 2, 2019

Hanwha Life CEO resigns before end of 4th term

Hanwha Life Vice President and CEO Cha Nam-gyu has tendered his resignation, citing the need for a generational shift. The local insurer announced Monday via DART -- the Financial Supervisory Service’s electronic disclosure board -- that he has stepped down after nearly nine years of overseeing the management.“Cha Nam-gyu decided to step down from his position on Saturday and his resignation has been accepted,” the company said.“He hopes (Hanwha Life) will promote a new m

Dec. 2, 2019

S. Korea to formally launch open banking service this month

Commercial banks in South Korea plan to formally launch an open banking service later this month, in a move to boost convenience and lower transaction costs for their customers, the country's financial watchdog said Sunday. The service, which enables bank customers to use virtually all banking services of any bank here with just one smartphone application, will be formally launched on Dec. 18, the Financial Services Commission said in a statement. Since launching a trial operation of the se

Dec. 1, 2019

S. Korean shares open lower on US-China trade woes

South Korean stocks opened slightly lower Friday on fears of a delay in a US-China trade deal.The benchmark Korea Composite Stock Price Index lost 2.82 points, or 0.13 percent, to 2,115.78 in the first 15 minutes of trading.The local shares closed slightly lower Thursday, one day after US President Donald Trump signed the law on support for protesters in Hong Kong, possibly creating a last-minute hurdle in US-China trade negotiations aimed at ending their prolonged trade dispute. Hit by the leng

Nov. 29, 2019

[Global Finance Awards] KB Insurance launches time unit insurance for delivery service

GENERAL INSURANCEKB INSURANCEKB Insurance has launched an on-demand insurance product that offers a time unit insurance coverage for those working in delivery services, the first such product to be introduced in South Korea, according to the company.The subsidiary of KB Financial Group signed a memorandum of understanding with two firms -- Woowa Brothers, operator of the country’s largest mobile food ordering and delivery service app, and Smallticket, a community-based insurance marketing

Nov. 28, 2019

[Global Finance Award] NH Capital leads NongHyup’s foray into global markets

FINANCIER OF THE YEAR/ NH CAPITAL　Under the leadership of CEO Lee Koo-chan, NH Capital, a subsidiary of South Korea’s leading banking group NH NongHyup Financial Group, is making a foray into the fast-growing financing markets in Asia, as part of its efforts to diversify its business portfolio and raise its profile as a global financial firm. With the corporate vision of becoming a global credit-specialized financial company, NH Capital plans to sign partnership agreements with agricultura

Nov. 28, 2019

[Global Finance Awards] KEB Hana acquires major stake in Vietnam’s BIDV for W1.15tr

INVESTMENT BANKING/ BANKKEB HANA BANKSouth Korea’s KEB Hana Bank said Thursday it is aggressively pursuing foreign strategic investments for expansion and has become the second-largest shareholder of Bank for Investment and Development of Vietnam. The nation’s third-largest commercial bank has agreed to buy 15 percent stake, or 603,302,706 new shares, of BIDV from the State Bank of Vietnam. The deal marks the biggest acquisition in a foreign bank by a Korean lender, according to offi

Nov. 28, 2019