Seoul stocks open higher on hopes of US, China deal

Seoul stocks opened higher Monday as investor sentiment was boosted by signs that the United States and China may settle their protracted trade row in the near future.The benchmark Korea Composite Stock Price Index increased 13.11 points, or 0.63 percent, to reach 2,101.00 in the first 15 minutes of trading. The US stock market also gathered ground on Friday following reports that Washington and Beijing are getting closer to finding common ground in their trade talks.Market kingpin Samsung Elect

Oct. 28, 2019

ABS issuance dips 11.9% in Q3

The issuance of asset-backed securities in South Korea slipped 11.9 percent on-year in the third quarter because of a decline in sales of government-led mortgage funds, data showed Monday. The value of ABSs issues stood at 9.6 trillion won ($8.1 billion) during the July-September period, down 1.3 trillion won from a year ago, according to the data from the Financial Supervisory Service.  ABSs are structured with mortgages, auto loans, credit card receivables and students loans as underlying

Oct. 28, 2019

KEB Hana, Woori chiefs likely to face heavy penalties over derivatives misselling

With financial authorities set to finish their monthslong investigation of the sale of high-risk derivatives-linked securities and related funds, key sellers are likely to be handed down heavy penalties for failing to properly warn investors of the risks.At the heart of the commotion was KEB Hana Bank, which has recently been found to have discreetly deleted related internal documents, attempting to stifle evidence. The market watchdog Financial Supervisory Service is scheduled to wrap up its in

Oct. 27, 2019

Brokerages post weak Q3 net profit amid sluggish market

South Korean brokerages posted worse-than-expected third-quarter net profit, data from the Financial Supervisory Service showed Sunday, with the lackluster performance attributed to a sluggish stock market coupled with local investors’ soured sentiment toward derivative products. According to the FSS’ electronic disclosure board, five major brokerages that have disclosed their third-quarter earnings report all saw substantial drops in net profit on-quarter and fell short of market ex

Oct. 27, 2019

KRX launches platform for cross-border M&A deals

The nation’s sole stock bourse operator said Thursday that is has launched an online platform to support merger and acquisition deals of South Korean firms overseas. According to the Korea Exchange, the platform aims to connect local firms with materials and parts firms in ASEAN and other economies. The new system will provide smoother transactions in the M&A deal-making process. It will provide a list of overseas candidates reviewed by global M&A advisors, including New York-based

Oct. 24, 2019

KB Kookmin CEO likely to serve second term

KB Financial Group said Thursday that the current CEO of its commercial banking unit, Hur Yin, has been tapped as a contender for the lender’s chief executive position for a second term, strongly hinting that the incumbent chief will remain in his role. Hur’s current and first term is set to expire later this year. But he is widely expected to remain KB Kookmin Bank CEO for another year, having drawn praise for his leadership after the financial group separated the roles of group cha

Oct. 24, 2019

Court holds brokerage employees 50% liable for ‘fat finger’ scandal

South Korea’s local court has decided that the employees of Samsung Securities involved in the “fat finger” scandal in which nonexistent stocks were issued, should pay compensation for about half of the damage they caused the company.The Seoul Central District Court has recently ruled that the 13 employees of the local brokerage must compensate $4.7 billion won ($4 million) of the losses they caused the company by selling nonexistent stocks, officials said Wednesday.The company

Oct. 23, 2019

Korean Air, Asiana bagged W2b from airline miles deal with commercial banks

South Korea’s two major carriers Korean Air and Asiana Airlines have received a combined 2.1 billion won ($1.79 million) from selling airline miles to commercial lenders in the past four years, Financial Supervisory Service data showed Wednesday. The data comes amid criticisms of local airlines bagging profits from mileage deals with financial institutions, despite some clients’ complaints of strict conditions and terms surrounding the use of the miles. Calls for transparency in the

Oct. 23, 2019

S. Korea’s target date fund market grows with aging population

As South Korea’s rapidly aging population seeks simple solutions for retirement investments, the nation’s target-date fund market has been growing at a rapid pace in recent years, data compiled by The Korea Herald showed Tuesday. Target-date funds are usually long-term investments and classes of mutual funds that rebalance the ratio of different assets in the investor’s portfolio over time. High-risk assets such as stocks account for the larger portion of the investment when th

Oct. 22, 2019

Hyundai Card launches advertising team with Innocean

South Korea’s leading card issuer Hyundai Card said Tuesday it has teamed up with its global advertising affiliate Innocean Worldwide to launch a special project team that will handle all advertising specifically for the credit card affiliate of the group.The team dubbed Oneteam -- launched officially in May -- consists of 10 Innocean employees to handle advertising planning and production. The team is stationed at Hyundai Card for higher efficiency, the firm explained. By bringing th

Oct. 22, 2019

[Newsmaker] JP Morgan Chase, Societe General bagged W8b from controversial derivatives products: data

Overseas investment banks JP Morgan Chase and Societe General earned a combined commission income of nearly 8 billion won ($6.8 million) from designing derivatives products sold mostly via South Korean commercial lenders that put investors at huge risk, data from the Financial Supervisory Service showed Monday.The data was acquired and released by a ruling Democratic Party lawmaker here after the nation’s financial watchdog said earlier this month that it has found 750 suspected cases of &

Oct. 21, 2019

President Moon makes 8% return from W50m investment

A local equity fund, which gained recognition for President Moon Jae-in’s investment, has achieved an earnings rate three times higher than the industry average.NH-Amundi Asset Management said through a release Sunday that its NH-Amundi Victorious Korea Equity Fund logged a 3.88 percent return rate over the past month, Friday.The average return of equity funds here stood at 1.28 percent as of this month, according to financial information vender FN Guide. The given research was conducted o

Oct. 20, 2019

Woori Financial signs MOU with SAP for digitalization of financial services

Woori Financial Group said Friday it has signed a memorandum of understanding with Germany-based business-software giant SAP to boost the digital transformation of its corporate financial services. The deal was signed by Woori Financial Group Chairman Sohn Tae-seung and SAP CEO Jennifer Morgan at the SAP Executive Briefing Center in New York on Thursday, local time. The value of the deal was not released.  Though the newly formed partnership, both sides will cooperate in establishing an int

Oct. 18, 2019

Seoul stocks open higher on Brexit breakthrough

South Korean shares opened higher Friday as investors cheered a breakthrough in negotiations on Britain's exit from the European Union. The benchmark Korea Composite Stock Price Index rose 7.88 points, or 0.38 percent, to 2,085.82 in the first 15 minutes of trading. Investors welcomed a severance deal between Britain and the EU that could wrap up more than three years of uncertainty after Britain decided to leave the EU. In Seoul, large caps were mixed.Market kingpin Samsung Electronics added 0.

Oct. 18, 2019

Daily money transfers via mobile payment apps exceed W200b in H1

The value of daily money transfers via mobile payment apps in South Korea surpassed 200 billion won ($168.6 million) in the first half of the year, central bank data showed Thursday, as more people used smartphones for financial services. The value of daily money transfers via smartphone apps, such as Toss, Naver Pay and KakaoPay, stood at 200.5 billion won in the January-June period, up 60.7 percent from six months ago, according to the data by the Bank of Korea. Toss, Naver Pay and KakaoPay ac

Oct. 17, 2019

Kakao Bank to raise W500b in capital by issuing new shares

South Korea’s internet-only lender Kakao Bank has decided to raise 500 billion won ($422.4 million) in capital by issuing new shares, the firm said Wednesday. The decision was approved by its board, as the firm seeks to improve its fiscal soundness.  According to Kakao Bank, it will issue 100 million new common stocks priced at 5,000 won per share. The record date for the shares is scheduled Nov. 5 and the stocks will be listed on Nov. 22. Once the capital increase process is complete

Oct. 16, 2019

Three consortia apply for internet-only bank: regulator

South Korea‘s financial regulator said Tuesday it received applications from three consortia, including one led by a fintech firm, for a license to set up a new internet-only bank. 　Fintech firm Viva Republica led one consortium, which included KEB Hana Bank, Hanwha Investment & Securities and the Korean unit of Standard Chartered bank.　The second consortium is led by an industry organization of owners of small businesses in Seoul, the Financial Services Commission (FSC) said in a stat

Oct. 15, 2019

Viva Republica-led consortium reapplies for internet-only bank

Viva Republica, operator of mobile money transfer service Toss, said Tuesday that its consortium has applied for a business license to establish a new internet-only bank, making its second attempt this year.Its shot at winning is seen as more plausible this time, especially as the previous main rival -- a consortium led by brokerage Kiwoom Securities -- renounced its own bid. “We pioneered Korea’s fintech industry through Toss. Now, through Toss Bank, we plan to build a new internet-

Oct. 15, 2019

Kakao Bank to discuss capital raise at board meeting

South Korea’s internet-only lender Kakao Bank will discuss an upcoming capital increase at its board meeting, the firm’s spokesperson said Tuesday, as it seeks to improve its fiscal soundness, while resolving issues surrounding its shareholder structure. “We will discuss an upcoming capital increase at the board meeting scheduled Wednesday,” Kakao Bank spokesperson Hwang Eun-jae told The Korea Herald. “We believe the issue of raising capital is important now conside

Oct. 15, 2019

LVMH set to lose W8b from drop in YG’s stock value

Despite YG Entertainment’s scheduled return of a 67 billion won ($56.6 million) investment to LVMH this week, the French luxury giant is still projected to lose around 8 billion won due to the decline in the K-pop agency’s stock value, local reports said Monday. According to reports citing financial industry sources, LVMH also purchased 503,588 common shares of YG worth 20.3 billion won when it bought 1,359,688 redeemable convertible preferred shares in the entertainment agency via i

Oct. 14, 2019